StratCann’s Growing Relationships Ontario 2024 event in Ottawa was full of networking, thought-provoking roundtable conversations, and insightful panels. It was great to see a cannabis event in the nation’s capital, a city with one of the most cannabis retailers in the country. Here’s our recap of the event.
Regulatory Roundtable Discussions
Retailers
Retailers in Ontario are facing several challenges. They are concerned that the requirement to block visibility into cannabis stores increases vulnerability to robberies and break-ins. Additionally, they are frustrated by the rise of unregulated stores operating nearby and the lack of enforcement. Both retailers and consumers are unhappy with the restriction that prevents customers from bringing their children into stores, complicating shopping trips. Retailers also report issues with the OCS web portal, as they are unable to see some newly available products. They are asking producers for more consumer-friendly product information, focusing on sensory attributes like smell and taste, rather than complex details like terpenes.
General Industry
In the Canadian cannabis industry, several key concerns persist. Excise taxes are contentious, with suggestions that any changes to the rate would likely benefit larger producers more than smaller ones. THC inflation and the accuracy of lab results remain ongoing issues. Producers are also frustrated by inconsistent enforcement of marketing restrictions and federal regulations, leading to confusion, particularly among smaller companies. Many in the industry are calling for more proactive, balanced enforcement to level the playing field. Additionally, there is a push for more sustainable and recyclable packaging, though federal packaging requirements make this challenging to achieve economically.
Cannabis Retailer and Producer Panel
Consumer Preferences
The cannabis industry is seeing a surge in disposable vape products, driven by younger consumers who prefer vaping over smoking and are drawn to products similar to nicotine vapes. There is growing interest in craft 7g flower options, with consumers opting for larger amounts (7g) to try strains before purchasing even larger quantities. Minor cannabinoids like CBG and CBN, especially in edibles, are gaining popularity as consumers appreciate their addition to the 10mg THC limit. Efforts are being made to shift consumer preferences away from distillates toward live resins and rosins. Most consumers (95%) need education on the fact that THC content is not the most important factor, though price and package size also heavily influence purchasing decisions. Consumers generally fall into two groups: those who research the latest drops on OCS Reddit and those who are simply looking to spend a set amount.
How Producers Can Better Support Retailers
Retailers prefer minimal print materials—samples and a sell sheet are sufficient. They want to experience the product firsthand (look, touch, smell, smoke) before stocking it. It’s crucial to craft accurate OCS descriptions and upload appealing photos, as store menus rely on these. Retailers are interested in how the product tastes and how it will make consumers feel, and budtenders need talking points to sell the product effectively. When engaging with retailers, recommend products that complement or replace what they currently stock. Email is the preferred method for follow-up after an initial visit to gather feedback on samples and provide additional details. It’s also important to share the brand’s story and emphasize unique genetics that other licensed producers don’t offer.
We appreciate the invitation to attend StratCann’s Growing Relationships event in Ottawa and we look forward to the next one!
Last Updated on September 12, 2024 by ADCANN
