What Does Legal Marijuana in Canada Mean for Your US-Based Cannabis Business?
This entry was posted on November, 19 2018.
U.S. cannabis legalization has thus far been a decidedly local affair, with states allowing first medical then recreational use on a gradual, one-by-one basis. By comparison, Canada's choice to allow sales nationwide represented a sweeping change in the status quo.
Since even transporting products across state lines is a difficult proposition, it's unlikely that direct commerce between your U.S. cannabis business and Canadian customers is in the cards any time soon. But this doesn't mean you shouldn't pay attention to events north of the border. Canadian legalization is an experiment on a massive scale, and there will be lessons for American entrepreneurs who pay attention.
Looking North from the US
Learning from the unprecedented breadth of the Canadian cannabis business roll-out will take several forms. The supply chain complications of selling recreational cannabis will be on display as never before, alongside best practices for custom marijuana labels and sales tactics. Furthermore, observers will be able to differentiate between the pros and cons of several retail models - various provinces each have their own approaches to legal sales.
Bloomberg pointed out just how different the provinces' sales provisions are. Some, such as Quebec, are controlling all marijuana sales through the provincial government. Others, such as Alberta, are using privately owned shops for in-person sales and government websites for online commerce. Then there's Ontario, which suspended its brick-and-mortar retail sales due to an eleventh-hour change in strategy. States considering legalization initiatives will have ample new examples to study.
Supply and demand is potentially the most interesting and instructive part of Canadian legalization. CNBC indicated that there is uncertainty among Canadian companies regarding the volume of product they'll need to meet consumer demand. If your company operates in a state that has just legalized recreational sales, or if you're planning to expand, you can use the trial-and-error phase in Canada as a source of valuable data on customers' appetite for adult-use marijuana.
Creating a Distinctive Brand for your Cannabis Business
As with any fresh, new industry, the cannabis business sector is looking for a class of leading companies. Your organization's performance in the early going may determine whether it takes its place among these financial winners. Physical branding of your products is a major part of winning customers' attention and loyalty, which means you should focus on specialized packaging, such as customized edibles labels.
There are strict regulations regarding what you can print on custom cannabis labels, but that doesn't mean you should abandon attempts to create distinctive packages. Working with a knowledgeable and experienced partner such as Lightning Labels is a good way to deliver custom edible labels, cannabis oil bottles and other critical packaging while complying with all applicable laws.
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