New Cannabis Regulations Might Be Too Little Too Late
Health Canada unveiled new regulations regarding edibles this week. Products like edibles, extracts and topicals, including creams, ointments and makeup, will be available by mid-December of this year–but inventory selection will be very limited.
The new regulations are to come in to effect October 17th, with the products expected to hit the shelves no earlier than two months after. Rules for labeling will remain strict, to prevent products from attracting children–and must not include any health claims. The regulations set a strict limit of 10 mg of THC per serving, and a limit of 1,000 mg per package.
Canada is losing its first mover advantage, and is falling behind due to a lack of policy innovation. Our strict regulations and province-by-province roll out, is affecting Canadian cannabis companies–who are now falling behind their American counterparts.
With strict regulations on branding and delivery, Canadian companies are being held back from becoming global leaders in the industry. A prominent example of this is CBD products, where big-box stores in the States like Walgreens and CVS are already selling CBD infused products. By comparison, in Canada legal CBD products can only be sold in dispensaries, and even then, supply can be inconsistent.
A CDN Icon is Hurtin’
It’s no secret that the retail industry has experienced huge upheaval in the last two decades, and the historic Hudson’s Bay Company (HBC), also known as the place where you buy socks, is especially hurting.
Back in 2012, HBC had a fairly successful IPO (check our insta description of an IPO here), starting at $17 per share and rising to around $29 per share by 2015, in part due to HBC’s acquisition of luxury retailer Saks Inc., and a similar German department store chain. However, things aren’t looking so hot now… an HBC share was worth $6.37 last Monday.
It’s safe to say a major turnaround is needed to keep the iconic chain afloat. Last week, CEO Richard Baker announced HBC would be going private once again, and major branches of the HBC family, like Home Outfitters and Lord & Taylor are shuttering to salvage cash flow.
It’s going to be a tough pitch though – the company has some major debt and large investors like the Ontario Teacher’s Pension Plan have been steadily divesting from HBC for some time now.
Despite the Hype, We’re Falling Behind on Sustainable Growth
A report published Friday, 14th June from the federal government’s Expert Panel on Sustainable Finance indicates that Canada has a lot of catching up to do when it comes to moving towards a greener economy and encouraging future sustainable growth.
Tiff Macklem, chair of the panel and former Senior Deputy Governor of the Bank of Canada, said: “Our environmental and economic aspirations need to become one and the same, because ultimately they are indivisible.”
At a time when mounting pressure is being placed on politicians to take action (and with evidence indicating that Canada is warming at twice the rate of the rest of the globe), this news is a bit worrisome. To top it off, the Economist Intelligence Unit has said that a 2°C global warming scenario will trigger global financial losses of roughly US $4.2 trillion.
To sum it up, climate change is very bad for the economy, and according to the panel, Canada needs to get the message.
However, the panel indicates that if certain specific measures are undertaken by federal government, the financial sector, regulators and investors, Canada stands a chance at eventually becoming a global green leader.
In a list provided by CBC news, a few of the main recommendations include:
- Standards for how companies disclose the risk climate change poses to them and their bottom line
- Incentives to boost the clean energy sector
- Help for the oil and natural gas sector to make it as low-emissions as possible (R&D, talent recruitment, etc)
- Having the federal government publish its plan for lower emissions past 2030, up to 2050, so that industry knows what to expect
- Establishing a Canadian Centre for Climate Information and Analytics to obtain better data on the economic and financial impacts of climate change
- Accelerating development of a vibrant private building retrofit market.