AGLC ready to issue more cannabis store licenses
Posted May 30, 2019 12:32 pm.
Last Updated May 31, 2019 6:12 am.
This article is more than 5 years old.
CALGARY (660 NEWS) — There will soon be more cannabis stores opening up around Alberta.
After issuing a moratorium on new businesses in November, the Alberta Gaming, Liquor and Cannabis Commission (AGLC) will be awarding some more licenses again.
“We’re really pleased now to be able to say we feel that our supply situation has approved and the licensed producers that we’re working with — now 26 licensed producers from across Canada — are giving us assurance that the supply will be stable enough that we can lift the moratorium and go back to licensing as we go,” said AGLC President and CEO Alain Maisonneuve.
A major shortage in supply immediately following legalization in October of 2018 led the AGLC to put in the moratorium, though they did also issue some licenses in February and March of this year as that supply started to grow.
There are currently 101 licensed providers in Alberta, including 28 in Calgary — although some of those are not open yet.
At this time, the AGLC will be issuing five licenses per week, as they still don’t want to over-promise.
“Start low and go slow, which is always a good idea with cannabis,” said Maisonneuve. “We’ll see how it goes, we’ll evaluate that on an ongoing basis based on our supply situation.”
Originally, it was estimated this shortage could last between six and 18 months, which means the AGLC has come out well ahead.
“We are really pleased about the fact that we’re on the low end of that estimate, and that’s why we think it’s important for us to act as quickly as possible to make sure that we’re issuing more licenses because our intent is the marketplace will decide how many licenses will be across Alberta,” Maisonneuve continued.
The AGLC also had to wait for those producers to get approved by Health Canada and build up their own stock, as Maisonneuve noted this is still a very new industry — at least in the legal sense — and nobody really knew how long it would take to reach this point.
Those licenses will be given out on a first come, first serve basis, as there already have been many requests sent into the AGLC.
“When we stopped licensing back in November, we had some that were very close to being ready, and as they got all their requirements done we just put them in a pile, and now we’re taking off the top of that pile with the one that had been ready first,” said Maisonneuve.
This is good news for the budding business owners around Alberta, which has emerged as Canada’s hot spot for cannabis.
FOUR20 Premium Market is one of the companies staking a claim in the industry, with four stores in Calgary already, and plans for more around the province.
Chief Operating Officer Kato Tomiyama said this provides some confidence for owners.
“As a business, forecasting is everything,” he said. “And I think what’s good is now that they’ve lifted this and they’re saying five licenses a week, the groups that have an idea of where they lie in that queue of stores ready to open, at least they can start to plan.”
Tomiyama also gives credit to the AGLC for being so helpful during this new and exciting time.
“They’ve been very good, very honest and very open. And I think we respect and appreciate their professionalism in getting this roll out done,” Tomiyama said. “They’ve done a great job as far as getting everybody who is looking to get into cannabis retail, in with the best chance of success.”
The next task for businesses like FOUR20 Premium Market is to continue receiving new supply, hopefully reducing cost, and then providing a more affordable product to customers.
“Alberta’s definitely the best retail market in Canada. Its got the least amount of limitations and I think the government was far ahead of the other provinces as far as foresight in knowing how they were going to roll things out,” said Tomiyama. “This will move us right into this coming October where we believe edibles and vape pens and other things are going to come into the market, and that’s just a whole new ballgame.”
