The soon-to-be-legal cannabis market won’t exactly be the wild west, seeing as the list of requirements for the budding industry is quite demanding for those looking to enter it.
Ask Joe Renaud.
The last few months of his life has been spent filling out an inordinate amount of paperwork and trying to follow Alberta Gaming and Liquor Commission (AGLC) requirements to a tee, in order to open his new business this fall.
The long-time Westlock businessman is behind the application for the area’s first legal cannabis store, Harvest Country Cannabis Store at 3 - 9935 106 St. in downtown Westlock. As he prepares for the Oct. 17 legalization date, there have been some surprises along the way.
“I think the biggest thing was the demand for high security. That’s really expensive,” said Renaud.
“By the time we’re done here, in this little space, we’ll probably have $15,000-$20,000 worth of this security. And I’m not really sure why,” he noted, referring to the ultra-secure room where the product will be placed during non-business hours.
The AGLC requires a secure storage area, video and alarm systems, a point of sale area, a shipping and receiving area separate from other businesses and a secure product display.
Those are some of the last steps though.
First, Renaud underwent a “thorough personal and financial background check.” Then he was subject to several fees, including a $3,000 deposit to perform the background checks on himself and potential employees. There is also a $400 application fee and a $700 annual licensing fee.
“The purpose of background checks is to prevent criminal interests from operating, associating or having a financial interest in retail cannabis sales in Alberta,” states the AGLC website.
Next, he must be granted municipal approval, before he receives a license from AGLC. The town is currently in the midst of amending its land use bylaw to include cannabis sales and a public hearing is scheduled for Aug. 20.
He must also be incorporated, separated from any other businesses and have a signed lease or certificate of title. Stores must also be further than 100 metres from schools, hospitals and land designated as school reserve.
Renaud doubts he will see any competition in town, at least in the near future, as much as he would love it.
“It keeps us all on our toes,” he said. “If I didn’t have some cash (from operating Home Hardware for several decades) and I had to find the money to do this, I couldn’t find an investor to do this. You definitely won’t find a bank that will help you, so it’s just lucky that I own this building,”
Renaud said he was refused an account because the company name had the word cannabis in it.
“I probably can’t get insurance on that stuff. We’re still dealing with trying to get insurance on this type of business. I can’t get a bank account,” he said. “We’re through that and as soon as I have a license I’m sure they’ll be happy to take our money over there.”
AGLC also dictates store hours. A store may not open earlier than 10 a.m. or later than 2 a.m., and only approved cannabis accessories are allowed for sale.
Minors may not even enter a store with an adult and only government issued identification will be accepted. Anyone who appears to be under 25 can expect to be asked for ID, much like a liquor store.
Retailers are also barred from selling to intoxicated persons.
Renaud, who plans to be facing customers on the sales floor when the store opens, will not be allowed to talk about the medicinal benefits of the plant.
“The only thing I can say is, ‘You’ve got to go see your physician.’”
Overall, the process has made Renaud uncertain and he admits he has considered whether or not he would do it all over again.
“The other big stumbling block I’m having as a retailer is I don’t know how the product is arriving. I don’t know what it looks like. How do I lay out a store if I don’t know if the product is this big, or this big?” he queried.
Retailers are bound to purchase their cannabis products directly from AGLC and then it will be sold to the individual customers. AGLC is the only agency allowed to sell to retailers.
Renaud says he looks forward to being among the public again. After retirement it was one of the things he missed the most. That and running a business.
He doesn’t expect to make a lot of money in cannabis as it is a low profit margin, high volume business, but looks forward to the evolving market and seeing what comes of legalization in three to five years. Colorado and Washington have been good examples to follow.
“I’m a big believer in data. Business is all about data, sales figures, volumes, but we have no data now,” said Renaud.
