Canadian Manufacturing

Cannabis producers flying high as federal task force recommends legalization

Reaction to recreational marijuana report mixed, but budding industry's would-be producers continue to boom


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If the federal Liberal government follows through with the recommendation, Canada will become first western country to fully-legalize marijuana

OTTAWA—Eighteen-year-olds should be allowed to buy recreational cannabis when the Liberal government launches a globe-leading social experiment in legalizing marijuana next year, a federally appointed task force said Dec. 13.

The age limit—and the hazy science of pot-impaired driving—were among the most contentious aspects during five months of hearings and research, task force vice-chair Dr. Mark Ware told a news conference in the parliamentary precinct.

The framework report is recommending storefront and mail-order sales to people 18 and older, with personal growing limits of four plants per person and a 30-gram limit on personal possession.

No other major western country—with the exception of Uruguay, population 3.5 million—has fully legalized and the world will be watching.

The green light for teenagers helped boost stock prices for marijuana producers on the Toronto Stock Exchange and produced a sharp exchange in the House of Commons, where Prime Minister Justin Trudeau defended his government’s policy direction without committing to following all the task force’s 80-plus recommendations when legislation is introduced next spring.

“Right now kids have easy access to cannabis across this country. We need to change that,” Trudeau said of his government’s two cannabis-related policy priorities.

“Secondly, to remove the source of significant revenue to criminal organizations and street gangs who benefit for the illicit trade of cannabis.”

The 106-page framework covers everything from advertising and branding—effectively banned, similar to tobacco—to penalties for illicit production and trafficking, all legislated under a proposed new Cannabis Control Act.

And it says the current medical marijuana regime should remain in place, at least until the legal recreational market dynamics play out.

Reaction to the report was as varied as the public input the task force received, but for the would-be producers, the news was well-received.

Jeffrey Lizotte, CEO of Next Wave brands, which advises the budding industry, said almost every cannabis-related stock listed on the TSX rose Tuesday.

“Most expected the age of majority to be between 21 and 25, where people had recommended,” Lizotte said in an interview.

“Luckily they took a more evidence-based approach. They understand that most consumers are aged 18-25, so if you exclude them from this market they’ll go to the black market.”

The Canadian Medical Association also issued a statement lauding the overall approach to “non-medical” marijuana regulation.

But the CMA said the task force missed the mark in recommending a distinct medical regime, given what it says is the limited clinical evidence for medicinal cannabis.

Ian Culbert of the Canadian Public Health Association called the report “an important first step towards establishing a retail framework that strikes a balance between freedom of choice and health protection.”

Current producers of medical marijuana said the task force’s hard line on marketing, packaging and branding still needs some work.

Bruce Linton, CEO of the industry’s largest player, Canopy Growth Corp., said the consumer demand for information should trump the recommendation to list levels of only THC and CBD on recreational pot.

Linton says limiting package information won’t tell consumers “whether this will make you euphoric or contemplative or sleepy.”

“My competitors over the years have largely used innocuous packaging as well—called zip-lock baggies,” he said. “Is that really what we’re trying to do?”

Linton says the world will be watching Canada’s efforts as a leader in managing what is a global black market problem and medical research opportunity.

“I still think Canada being Canada—and doing this—has not been fully appreciated,” he said.


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