After years of unanswered distress calls from a “drowning” cannabis industry being pulled down by an outdated excise tax formula, the feds have begun to acknowledge the sector is sinking, says Cannabis Council of Canada president Paul McCarthy. But while the newfound receptiveness is encouraging, stakeholders say if the industry isn’t thrown a buoy soon, the only licensed producers who will remain are those “willing to do what it takes to survive” amid competition from the illicit market.
Operating for the past five years, Crystal Cure was the first licensed producer in Atlantic Canada to receive a farm gate licence. This allowed the company to sell its product directly from its facilities, similar to an on-site store at a winery or brewery. The company had also been selling its products in stores across Canada, and had been looking to expand its operations to meet growing demand, but with such slim profit margins, Wilson said it just didn’t make sense.