The cannabis beverages segment has been receiving plenty of attention since 2020 when the first cannabis-infused drinks hit the market. Thanks to nano-emulsification technology, cannabis companies can now develop smoothly infused products consistently, a feat that gave them trouble in the segment’s early days. But, although cannabis technology has reached a level where customers can expect high-quality cannabis beverages, companies now have to deal with legislations that are inadvertently harming the young industry.
In Canada, restrictive cannabis regulations are preventing industry players from selling cannabis drinks in a familiar way and attracting new customers who would not have purchased cannabis products otherwise. With the world struggling to recover from the coronavirus pandemic and the resultant economic crisis, these restrictions are hurting cannabis companies that were already struggling. George Smitherman, president and chief executive of the Cannabis Council of Canada, says that alcohol drinkers are often surprised to hear that they can’t purchase cannabis drinks in a six-pack as they could with beer.
That’s just one of the restrictions only the cannabis industry is facing. Customers are also restricted to buying no more than 30 grams of dried cannabis or 2.1 liters of cannabis beverage per transaction. Furthermore, single marijuana-infused beverages sold in the country cannot contain more than 10 mg of THC (delta-9 tetrahydrocannabinol). Consequently, customers are limited to only five 355ml cans of cannabis beverage with 2 or 2.5 mg of THC or according to Webster, nine cans of Canopy Growth’s Deep Space 222 ml beverages, which contain 10mg of THC each.
The restrictions are frustrating for consumers and cause challenges for retailers because they are usually the ones who have to explain these rules to their customers, says Webster. Strangely, the restrictions create no problems for customers purchasing 17 cannabis vape cartridges with 5,950 mg of THC combined or 100 bottles of cannabis oil bottles with a combined 50,000 mg of THC in one transaction. Webster and other industry experts fear that this policy poses a legitimate health concern as it may encourage cannabis companies to focus their efforts on products that have high THC levels and less volume.
Health Canada has even acknowledged limiting public possession of cannabis beverages may inconvenience customers and inadvertently push them towards other products. The agency’s spokesperson Andre Gagnon says it is currently considering the input it received after recent consultations.
There is no doubt that any correction of the regulatory bottleneck around the volume of cannabis drinks one can buy will boost leading segment actors such as BevCanna Enterprises Inc. (CSE: BEV) (OTCQB: BVNNF) (FSE: 7BC) since they are already making a mark under the existing conditions.
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