What You Need To Know About Canada's Cannabis 2.0
Canada's second wave of cannabis legalization means you can legally buy edibles, beverages, extracts and vapeables.
First, it was dried cannabis, oil, and under-the-tongue sprays. Now, popular cannabis edibles, infused beverages, topicals, concentrates, and vape pens will be legally sold here in Canada. But, vapes and edibles won’t be available to the public until Dec. 16th.
With Canada’s Marijuana Legalization 2.0 coming into effect today (Oct 17th) comes some kinks and delays but it also signals enormous potential for growth in the cannabis industry. And that market growth means more jobs industry-wide, including right here in Barrie.
CANADA’S DERIVATIVE CANNABIS PRODUCT ROLL-OUT
As of today (October 17th, 2019) edibles, beverages (without alcohol, nicotine or caffeine), topicals (lotions, creams and balms) and cannabis extracts will all be legal. But, that doesn’t mean they will be available right away.
The earliest new goods can be sold legally will be mid-December (due to the required 60-day notification period for new products that a licence holder is required to provide to Health Canada). And don’t expect those gummies to come in those kid-friendly colours and flavours you are used to seeing at the corner store. When Health Canada laid out the new regulations, they said that these new products can’t be seen as “appealing to young persons” but Health Canada has yet to provide further details on what exactly crosses that line.
GUMMIES LEAD THE WAY
Cannabis edibles, drinks and other derivatives could become a $2.7 billion dollar-a-year industry in Canada, according to Deloitte’s Nurturing new growth report. And, edibles make up $1.6 billion of that estimate. The most popular edible among current users Deloitte surveyed is the gummie.
TIGHT SUPPLY UNTIL MID-DECEMBER
It’s no secret there’s been a shortage of cannabis since legalization came into effect last October. The demand on cannabis producers will likely extend even further through this second round of legalization. But just as legalization impacted those producers, it has also benefited extraction companies.
Enter MediPharm Labs in Barrie, the first publicly traded company TSX: LABS OTCQX: MEDIF to be headquartered here, has been prepping for Cannabis 2.0’s advent. MediPharm Labs will supply purified cannabis concentrates such as cannabis resin and distillates that could go into those edibles, vape pens, beverages and other derivatives.
Keith Strachan, Co-founder and President, says they have purchased a significant amount of Canadian-grown cannabis for their white and private label platforms. Their experts then make cannabis extracts from dried cannabis to process, formulate, package and distribute advanced derivative products, like bottled cannabis oil.
Now that Health Canada has allowed edibles, beverages, vapeables, topicals and concentrates to be sold, Keith Strachan says MediPharm Labs is ready to supply the active cannabis ingredients the industry needs for these new concentrate-based product types. MediPharm Labs is also poised to be a significant producer of vape cartridges with its already-signed sales agreements, and Keith says the company is getting ready to begin full-scale commercial production of their new softgel capsule line once they have received the appropriate regulatory approvals before installing the new production line in their facility. MediPharm Labs is excited for the future as they enter the second phase of cannabis legalization.
Author: Jon Meyer