Toronto's first legal dispensary, The Hunny Pot, opened on April 1. THE CANADIAN PRESS/Chris Young
Fast-forward two years and, though the weed rollout is not perfect in Alberta (nor anywhere in the country), the province has gotten a lot of things right. With 75 privately-run cannabis retailers, it has the most legal stores in the country. The only reason there aren’t more is the Alberta Gaming and Liquor Commission has temporarily halted issuing new licences due to the country-wide weed supply issues. According to Statistics Canada, Albertans spent $7.3 million on legal weed in the first two weeks after legalization, behind Ontario ($11.7 million) and Quebec ($9.4 million). But more recent Stats Can figures show sales in Alberta have steadily increased, and outperformed the rest of the country in November, December and January, while sales in Ontario and BC have tapered. Of the $205.6 million in legal weed sales in Canada from October to January 2019, Alberta—population 4.3 million—made up $47.7 million, while Ontario and BC had $38.3 million and $6.6 million respectively.Sales in Alberta have steadily increased, and outperformed the rest of the country in November, December and January.
A fledgling retail scene
A growing run at Aurora Sky in Edmonton. Photo via Aurora Cannabis
Queen of Bud. Photo by author
Queen of Bud features bougie decor. Photo by author
Newman uses medical cannabis to treat her pain that stems from endometriosis, a condition that causes uterine tissue to grow outside of the uterus. She referred to Queen of Bud as a sanctuary, “a place where a woman can go and feel comfortable and feel safe.” Newman opened her store a week after legalization. The single mother of two little girls described herself as a “serial entrepreneur”—she previously ran an asbestos removal company, but said after her divorce four years ago it was difficult to make ends meet.“I remember going to a grocery store praying that the $2 macaroni [payment] would approve,” Newman said. While she said normally it takes years to pay off the debt incurred by starting a new business, she was able to pay off $460,000 within the first two months of opening Queen of Bud. She won’t share sales numbers, but said the company is doing three times what she forecasted in her business plan.“Once everyone saw the brand, all the big guys offered to buy me,” she said of the licensed producers.“I could sell and probably retire and live off the interest and I still feel in my heart that there was more that I wanted to do."Her plan is to run a cannabis empire. She already owns locations for three more dispensaries, plus an eatery, and a spa.Newman said opening day was “so exciting.” There were businessmen coming from the nearby LRT station, and wealthy housewives from the affluent Aspen Woods community. There were complaints about the long lines. Mondays are the busiest days because that’s when new shipments come in, she said.“I remember going to a grocery store praying that the $2 macaroni [payment] would approve.”
The Alberta Gaming and Liquor Commission sends out a list of inventory every week and stores request how many shipments of each product they want. But business operators told me they order more than what’s available in the hopes that another shop won’t place an order and they’ll get an extra batch or two. The week of our interview, Newman got $43,000 of product, the previous week it was $70,000.“We barely have enough to get through the week," she said. In November she had to reduce hours to three days a week.Experts say there are a number of factors contributing to the shortage including Health Canada not issuing enough licences in advance of legalization, producers under-delivering on supply agreements with provinces, and challenges mass producing cannabis—which can be a fickle plant—for the first time. Newman, who sits on a board with the major players in Alberta, said LPs are also selling to Saskatchewan over Alberta, because they can make a higher premium. To turn a profit, Newman said she sells weed for $12-$15 a gram.“You’re either going to base it off quantity or margin. Quantity we can’t really do.”"We barely have enough to get through the week."
Oil and gas transition
Jason Marshall, owner of Green Earth Cannabis, worked in oil and gas for 20 years. Photo by author
That sentiment was echoed by Kim Shalagan, western health and safety manager for licensed producer giant Aurora, who is based in Edmonton.The 34-year-old worked in oil and gas from the age of 20 until she was laid off in January 2017. She recalled swaths of people at her former company being let go in one sitting.“Within oil and gas you learn very quickly that there’s a strong ebb and flow. You would go through periods where you work very hard, long hours, long days… There’s lots of parties, there’s swag and people are happy,” she told VICE. “Then the oil turns and… the mentality across the company changes quite drastically.”"There’s lots of parties, there’s swag and people are happy. Then the oil turns."
Kim Shalagan says she's thrived by moving into cannabis from oil and gas. Photo submitted
A grow room at Aurora Sky in Edmonton. Photo via Aurora
BC and Ontario “shat the bed”
BC's first legal weed store opened in Kamloops on Oct. 17. THE CANADIAN PRESS/Jonathan Hayward
Sales have been dismal. In October 2018, the province did $2.3 million in legal sales, but in January it only pulled in $1.9 million. BC’s illegal weed industry is estimated to be worth billions of dollars, which is why legalization was expected to succeed, but also why it may have failed considering how much bud is available.In a year-end interview with the Victoria-based Times Colonist, Horgan admitted the province botched the rollout.“We could have very much anticipated the demand,” he said. “I think we had an expectation it would be a seamless transition, but that hasn’t been the case, so I’m as concerned about that as the consuming public and we’re going to do what we can in the new year to start accelerating that.” Meanwhile in Vancouver, there seems to be constant quibbling between the city and cannabis advocates over where to host 4/20, the illicit dispensary closures, and even the smell of weed."We had an expectation it would be a seamless transition, but that hasn’t been the case."
Annual 4/20 celebration at Vancouver's Sunset Beach. THE CANADIAN PRESS/Darryl Dyck
All of the Albertan retailers I interviewed praised the Alberta Gaming and Liquor Commission for being organized and collaborative in handling the province’s rollout.Ryan Kaye, vice-president of operations for Four20 Premium Market, which operates four stores in Alberta told VICE he’s not surprised Alberta came out ahead.“Alberta has a very strong history of entrepreneurialism,” he said.Four20 may consider expanding into Ontario in the future he said. A couple of Alberta chains, including Canna Cabana and Nova Cannabis, are already doing so.“We have experience many Ontario retailers do not. We’ve learned a lot,” said Kaye.“We have experience many Ontario retailers do not."
Getting over the stigma
Ryan Kaye, vice-president of operations for Four20 Premium Market. Photo by author
