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Adam Chammorry displays some of the edibles available at Queen of Bud in Calgary on Monday, January 13, 2020.
Darren Makowichuk / Postmedia
Cannabis retailers say the appetite for pot-infused edibles is exceeding supply – and the provincial distributor cannot say when that will change.
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It’s a repetition of what happened a year ago, when logistical and regulatory hurdles created a shortage of cannabis plants in stores, a bottleneck that led to a six-month halt in new pot shops, approved by regulator-wholesaler Alberta Gaming , Liquor and Cannabis.
“This would eventually be expected in a whole new industry,” said AGLC spokesman Heather Holmen.
She noted that 406 cannabis stores have now been approved by the AGLC – to most of each province – sharing that limited supply.
“I cannot confirm that this will further strain supply, as Alberta is one of the major jurisdictions with more LPs providing our market,” Holmen said.
“We are confident that variety and quantity will increase as LPs get their licenses to produce 2.0 products.”
The provincial regulator has now signed 45 manufacturers licensed to supply the Alberta market, with more than half expected to add edible supply sometime this year, Holmen said.
She said AGLC has not yet received cannabis-infused drinks and coffee / tea packages from licensed manufacturers.
“Thingdo anything we can get our hands on, we’ll get into the inventory system,” Holmen said, adding that it depends on how fast the licensed manufacturers make them available.
Retailers say some of the food products they receive from AGLC are far less than they order, saying it is just over 50 percent.
The most popular items – chewing cakes – sell fast, store operators say.
“Edibles are selling very well, but there have definitely been some challenges with the regulatory system,” said Nathan Mison, chairman of the Alberta Cannabis Council, which represents retailers and manufacturers.
“The challenges we have seen in authentication 1.0 are the same as 2.0.”
He said Canadian Health approvals for edibles processors have been slow while large numbers of stores in Alberta have limited what is available.
“Everyone is fighting for the good products that everyone wants and AGLC is struggling to fill our orders because of all the competition in the market,” Mison said.
The looser regulatory regime in Saskatchewan, he said, had retailers selling nuts and vaping products there Dec. 18, four weeks before most of those products appeared on Alberta shelves.
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That supply crunch is due to a smaller number of edible producers than there were bud growers at the start of legalization in late 2018, said Ryan Hellard, chief marketing and product for Olds-based Sundial Growers .
But he said the relaxation of Canada’s Health rules governing edibles producers should ease it.
“They no longer need to do any cultivation … there are a lot of people either getting their processing licenses in or near it, so supply has to increase over the next few months,” Hellard said.
Right now, Sundial is focused on producing cannabis vape pellets it supplies to several other provinces.
The provincial government has delayed the arrival of cannabis vape pellets in the Alberta market pending a review of their safety, a retail move and manufacturers have decreed.
AGLC’s Holmen said he expects a decision on those products to come within weeks.
There are a number of Alberta businesses hoping to fill any supply gap with their offer once they have received a processing license from Health Canada or their product line comes.
Canopy Growth unveiled the company’s food offerings including these steam products at the Arts Hotel in Calgary on Monday, December 9, 2019.
Darren Makowichuk /
Postmedia
Edmonton-based Aurora Cannabis said the response to their new products “has been positive.”
“We are working closely with the provinces and retailers as these new categories develop,” company spokesman Michelle Lefler said in a statement.
Calgary firm Choklat expects to add its bars of chocolate, beverages and cannabis-infused sugar packs to the Alberta March market and is hiring up to 25 new staff to provide it.
Edmonton-area craft grower Freedom Cannabis is also positioning itself to nourish the province’s appetite for pot treats.
“We are encouraged by the demand for them and are in the process of acquiring land and building a laboratory,” said owner Troy Dezwart.
“We plan to expand and hire new people.”
on Twitter: @BillKaufmannjrn
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