Canada’s Cannabis “Strategy Table” Charts a Quiet Path Forward

Canadian Cannabis Strategy Table Finally Holds First Meeting

The Need for a Unified Government Champion

A long-awaited cannabis “strategy table” in Canada, designed to facilitate communication between the federal government and the struggling cannabis industry, has finally had its preliminary meeting over the summer and selected a chair, according to industry sources. The strategy table, which brings together government and industry officials, represents a critical opportunity for the marijuana sector to have an aligned government champion, says George Smitherman, CEO of the Cannabis Council of Canada. This development is significant, considering that the industry has often felt neglected by the government since legalization.

In April 2022, a plan to launch the strategy table was announced in the federal budget. However, since then, the initiative has been mired in bureaucratic and political gridlock, causing concern within the cannabis industry. Business failures have accumulated losses exceeding 20 billion Canadian dollars ($14.6 billion), while government-owned enterprises have reaped the majority of the profits. Insolvency filings reveal that the Canadian government is often among the biggest unpaid creditors of insolvent producers, an anomaly in comparison to other industries.

Signs of Progress in the Strategy Table’s Formation

Despite the delays, there have been significant advancements in the establishment of the strategy table. Over the summer, the staff team at Innovation, Science and Economic Development Canada (ISED), the federal body responsible for organizing the table, underwent transition, and meetings were held between industry representatives and ISED officials. George Smitherman notes that there was an initial meeting of the forum in August, during which cannabis industry CEOs convened with government officials.

However, turnover at both the government-level and within cannabis companies has hindered the official launch of the strategy table. The high turnover rate in the cannabis industry, particularly due to insolvency filings, has resulted in attrition and made it more challenging to launch the initiative.

In August, the strategy-table group reportedly met with the chair of Canada‘s Cannabis Act review, Morris Rosenberg, and the deputy minister of ISED, Simon Kennedy, among others. Nevertheless, it remains uncertain if there is enough time for the secretariat of Rosenberg’s legislative review to be adequately informed of the strategy table outcomes, as his review is nearing completion. Hugo Alves, CEO of Auxly Cannabis Group, was allegedly selected as chair of the strategy table, but he has yet to confirm the appointment.

Ensuring Representation and Addressing Challenges

Questions have arisen regarding the selection process of the strategy table’s members and whether the interests of large cannabis producers will overshadow those of small and medium-sized enterprises. Additionally, concerns have been raised about ensuring representation of entrepreneurs who are Black, Indigenous, or people of color within the table. ISED has not provided specific details on these matters but assures that the development and finalization of the table, including its membership, are underway and expects to make announcements soon.

ISED emphasizes that its objective is to provide a platform for dialogue on the challenges and opportunities facing Canada‘s legal cannabis value chain. The department acknowledges the financial difficulties confronting the cannabis industry and commits to monitoring the sector. ISED is actively engaging with industry stakeholders and associations, gathering intelligence about the sector, and conducting analysis to ensure that the strategy table represents the breadth of challenges and opportunities in the industry.

Editorial: A Sign of Progress, but More Work Ahead

The convening of the cannabis strategy table and the selection of a chair marks an essential step towards addressing the longstanding issues faced by the Canadian cannabis industry. It shows that the government is finally acknowledging the need for collaboration and communication with the industry. This development should be applauded, as a unified government champion can play a crucial role in addressing the sector’s challenges and advocating for its growth and success.

However, the delays in forming the strategy table are concerning, given the magnitude of the problems faced by the industry. The increasing number of business failures and insolvencies demand urgent attention. The strategy table must prioritize creating a supportive environment for small and medium-sized enterprises, ensuring fair representation, and addressing the specific needs of entrepreneurs who are Black, Indigenous, or people of color within the industry.

Moving forward, it is imperative for the strategy table to actively engage with all stakeholders and work towards finding practical solutions. Collaboration between government officials and industry leaders is necessary to inform policy decisions and create a conducive regulatory framework. By leveraging the expertise and experience within the industry, the strategy table can help unlock the true potential of the Canadian cannabis industry and ensure its long-term sustainability.

Advice: Seize the Opportunity for Collaboration

To cannabis industry stakeholders, the formation of the strategy table presents a unique opportunity to engage with the government and shape the future of the industry. It is crucial for industry representatives to actively participate and provide thoughtful input to ensure that the strategy table serves its intended purpose. Sharing insights, voicing concerns, and suggesting solutions will be instrumental in driving positive change.

Furthermore, the strategy table can serve as a platform for fostering collaboration among industry players. The sharing of best practices, strategies, and innovative ideas can help overcome the challenges faced by the industry and create a stronger and more resilient cannabis sector. By working together and supporting one another, industry leaders can forge a path forward that benefits all stakeholders involved.

In conclusion, the preliminary meeting of the cannabis strategy table in Canada represents a step in the right direction for the struggling cannabis industry. While there have been delays and challenges in its formation, the table’s establishment provides hope for improved communication between the government and industry. However, it is crucial for the strategy table to prioritize the needs of all stakeholders, ensure fair representation, and address the urgent problems faced by the industry. By seizing the opportunity for collaboration and working towards practical solutions, the strategy table can play a pivotal role in shaping the future of the Canadian cannabis industry.