Everyone seems to have questions about what marijuana legalization this fall (it was just pushed back to October 17) will actually mean in Canada. How much can people buy? Where can they use it? Where and how will it be sold?
According to a Deloitte report, about 22% of Canadians use marijuana some of the time and 17% said they might once it’s legalized. But why am I, a food writer, talking about it? Because it’s a huge new market in the food and health industries – so huge, in fact, that a whole session was devoted to legalization at SIAL, a massive food industry event in Montreal last month, which is where I heard those Deloitte stats.
A Burgeoning Market
Personally, I hate the smell of pot and don’t want the high. But artisanal brownie, cookie and chocolate makers know what I’m talking about. 17-39% of Canadians is a massive new potential revenue stream for everyone from artisanal brownie makers to Lindt. That’s a little under 14 million people interested in exploring the whole new world of pop-up pot dinners, weed granola bars and marijuana milkshakes.
But the biggest reason people use pot, according to that same study, is relaxation, sleep and stress reduction. And that’s why I think CBD Oil is a huge untapped market for the healthy lifestyle industry. I tried CBD oil for the first time in Arizona where it’s legal (CBD oil from hemp is legal in all 50 states, while CBD from cannabis is only legal in medical or recreational states). It isn’t supposed to get you high because the oil is supposed to contain only a tiny amount of the psychological effect-causing THC, but I think some products still will. The “full spectrum” oil I bought from the Fermented Tea Company in Tucson had a much stronger – and undesired – effect than whatever it was I tried from a sketchy dispensary with a sticky-sweet vegetable glycerin base. While the cheaper version did nothing noticeable, I found the full spectrum version too strong, with the heaviness in the top of my head that I didn’t like. My friend, however, loved it. She felt an increase in creativity and mood.
It’s not as though CBD oil is some new hippie product, though. It’s already big money in the US – big enough that a large company, Phivida, bought an advertorial in the Financial Times about all the money it’s raising and why it’s a great investment, in advance of its planned expansion into Canada. While I know nothing about the quality or effectiveness of that company’s products, what that article tells me is that the company has enough money for marketing and is expecting to make that money back and then some come Canadian legalization.
From Kombucha to Chamomile
Add to that the fact that CBD oil comes from a plant and is supposed to be all-natural, and all the health food/healthy lifestyle converts will be interested. Everything from CBD smoothies to Kombucha to organic chamomile tea could be in health food shops come Christmas. The risk, though, is that CBD oil could turn into an unregulated product, and quality and content varies dramatically from company to company. Right now, there are no standards in Canada. In Arizona, it was also sold out of sketchy dispensaries, supposedly for its anti-anxiety and anti-inflammatory properties (though there aren’t enough tests or quality control to guarantee this – a legislative policy and packaging nightmare). The oil, unlike medical marijuana, doesn’t require a prescription there. That won’t be the same issue in Canada, but it’ll be just as hard for consumers to compare brands and understand what they’re actually ingesting without mandatory testing and packaging. Like you see nutritional info on food products, I’d like to see strains, potencies and percentages on CBD oils as well as edibles and other marijuana products. That takes time, I know.
All those questions are why I attended the legalization and food info session at SIAL. This is what I learned:
Pot Edibles
You need to know your strains. It’s not just about indica and sativa. For example, the Reduralis strain is the lowest in THC. To learn more about strains, you can download the Leafly app, which explains what your options are and what the supposed effects of each are.
How much money is involved for the economy (and how much money can people make)?
The main market for actual sales value of marijuana is 8.7$ billion. But there’s an added $23.6 billion for producers and manufacturers and an estimated $22.6 billion for tourism and other industries related to marijuana sales.
When will legalization actually happen in Canada?
Sales were supposed to start in July, then insiders thought it’d probably be August, and now it’s officially Oct. 17, 2018 because provinces need extra time for labeling and packaging
What’s the possession limit?
The possession limit is 30g. 1 g of dried cannabis = 70 g liquid. But that’s for cannabis oil, not CBD oil. So at approximately $10/g, you’re not allowed to have more than about $300 worth of marijuana at a time. That’s tricky for companies working with marijuana. Theoretically, they’re allowed to buy more than that, but what about the small brownie producer that’s selling to a number of cafés in Montreal? Will they be allowed to buy more quantity? Or will they be arrested or fined if they’re found possessing more than the legal limit for individuals?
Is there forthcoming legislation on CBD oils?
There’s nothing in the works at the moment. At least, the session’s presenter hadn’t heard anything.
Can companies start testing food products before legalization?
Not legally, but you know there’s going to be a questionably fast influx of products onto the market anyway…
Do you need a license to sell edibles?
No. “When certain conditions are met, a person may import, export, sell (at wholesale or retail), provide, possess, transport, send and deliver derivatives of industrial hemp seed, viable grain or non-viable Cannabis seed, or products made from such derivatives, without the need for a licence or authorization under the IHR. The conditions to be met include that the derivative or product:
- Must contain no more than 10 µg/g THC;
- Must not have been made from whole industrial hemp plants, including sprouts, or the leaves, flowers, or bracts of those plants;
- In the case of the wholesale sale of a derivative, the package containing the derivative must be labelled “Contains 10 µg/g THC or less – Contient au plus 10 µg/g de THC”.”
-from Canada.ca
What else do you need to know if you want to sell edibles?
You have to use approved cultivars. I think it’s best to contact someone directly with specific questions. Here’s some more info.
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