On October 17, 2018, Canada became the world’s biggest nation to completely legalize adult-use cannabis, paving the way for massive possibilities for merchants. Monthly sales will exceed $270 million through October 2020. Despite the epidemic, Canadian cannabis sales are expected to exceed $3.25 billion by 2020.
Cova is aware of the requirements of cannabis merchants. Our dispensary POS, touchscreen menu, and Express Checkout solutions are used by hundreds of dispensaries throughout North America. Our Canadian company is excited to assist other Canadian businesses in establishing a strong presence in the growing cannabis retail industry.
Our parent company, iQmetrix, provides retail management and point-of-sale software to over 20,000 retail outlets throughout North America. Our expertise in growing big, multi-store retail businesses uniquely equips us to engage with both provincial government agencies and private entrepreneurs interested in operating cannabis shops.This website is mainly designed for educational reasons regarding Canada cannabis dispensary regulations and licensing info, and should not be construed as legal advice.
Reporting On Compliance
Compliance with record-keeping and reporting regulations is a top priority for all cannabis businesses. All legal cannabis activities, including sales, delivery, and losses, must be documented in the national Cannabis Tracking System, according to Health Canada (CTS).
As a retailer, you must submit monthly reports to your provincial government, which are subsequently sent to Health Canada for inclusion in the CTS. Depending on your jurisdiction, these reports must be submitted online or through e-mail.
Cova has created a point-of-sale system especially for Canadian cannabis businesses. Cova POS can produce 1-click compliance reports that include all necessary data in the format specified by each province. This automated procedure saves you numerous hours reconciling inventory and sales and assists you in avoiding human mistakes that may result in license revocation.
Cova’s POS is used by more than half of all private businesses in Canada to remain in compliance.
Restrictions On Cannabis Marketing And Advertising In Canada
The legalization of adult-use cannabis in Canada became official in October, and now all eyes are on the country as its newly legal business dominates headlines across the globe. However, for cannabis retail company owners in Canada, navigating a larger consumer market while simultaneously complying to stringent laws may be difficult.
As outlined in the Cannabis Act, marijuana marketing in Canada is prohibited, including price or distribution promotion that is appealing to children or teenagers, use of testimonials or endorsement deals, portrayal of an actual or imagined person, character, or living creature, or attempting to associate brand elements with “a way of life that contains glamour, recreation, excitement, vitality, risk, or bravery,” among other things.
What Promotions Are Not Allowed?
It is illegal to advertise cannabis, a cannabis accessory, or any cannabis-related service unless approved by the Cannabis Act, which includes:
- Via disseminating pricing or distribution information;
- By acting in a way that there are reasonable reasons to think will appeal to young people;
- Using a testimonial or endorsement, whether presented or conveyed;
- By depicting a person, character, or animal, whether real or imaginary; or
- By displaying it or any of its brand components in a way that connects it or the brand element with, or conjures a good or negative feeling or picture of, a way of life that involves glamour, recreation, excitement, energy, danger, or daring.
What Types Of Promotions Are Allowed?
According to the Canada cannabis dispensary laws & licensing Info, limited marketing of cannabis, cannabis accessories, and cannabis-related services is allowed in certain situations, subject to the relevant restrictions mentioned above and any other applicable prohibitions.
- Creating a strong online presence
- Creating your brand
- Use social media to engage customers.
- Organic search will be aided by content marketing.
- Certain kinds of cannabis festivals, which are usually restricted to intra-industry events
- Marketing through email
- Promotional Information (must be given to those above the age of 18 and must be recognized by name)
Advertisements for cannabis shops are anticipated to be placed in areas where children are not permitted. In addition, if a merchant uses telecom to advertise, they must demonstrate that they have taken reasonable measures to guarantee the audience is 18 or older.
How To Make It Happen
The limitations encourage clear, informative communication with adult customers aged 18 and older regarding cannabis. While this may seem to be a limitation, it merely means that cannabis shop operators’ greatest chance for capturing the hearts of consumers is to be smart and creative about what they can do lawfully.
Maintain It As Informative
The legislation permits for the “informational marketing” of cannabis, associated accessories, and services to adults via direct contact. Such promotion is only possible in places where young people are not allowed, and via methods that are unavailable to anybody under the age of 18. While the communication must be done in a “specified way” and is restricted to product price and availability, merchants may engage consumers at the point of sale as an exemption to the regulation. How can a store effectively take advantage of this?
Even with such strict restrictions, company owners interested in promoting cannabis in Canada should begin with a cannabis retail marketing plan. When creating a marketing strategy, it is critical to consider variables such as target audience and competition. For example, your store’s marketing plan might aim to quadruple accessory sales income the next quarter. In this instance, having budtenders upsell at least one accessory per customer at cash wrap assists the store in developing a legal marketing strategy.
Increase Brand Awareness
It’s also critical for store owners to recognize the impact of their branding. The legislation provides an exemption for the use of a “brand element” on goods that are not cannabis or associated accessories, allowing you to sell branded items like caps or t-shirts in your store. Again, these products cannot appeal to young people or communicate a certain lifestyle, but they can provide merchants with a chance to boost brand recognition by including their logo.
Create A One-Of-A-Kind Shopping Experience
Because your physical retail store is your most visible brand presence, it must be designed to provide a seamless and enjoyable shopping experience. Retail cannabis companies must develop an atmosphere that captivates customers and encourages them to purchase, from beautiful décor to the use of technology to increase foot traffic. Consider the tourist market as well, since people from all over the globe will want to visit Canada to sample the unique cuisine. Providing an outstanding dispensary experience to that group may result in worldwide word-of-mouth.
While there are many things you cannot do when it comes to marketing your cannabis dispensary in Canada, you can be smart and utilize your brand to attract consumers within such a limited framework. Subscribe to our email now for additional regulatory updates and ideas to help you manage your cannabis retail company!
Canada Cannabis Dispensary Laws & Licensing Info promotion regulations may be difficult, particularly given the murky areas of advertising and businesses that seem to get away with violating the restrictions. As a result, we recommend being acquainted with the laws and erring on the side of caution while promoting your goods or services.
Finally, always consult with your legal team about the finest marketing strategies to guarantee your business is operating legally.