All three of Westlock’s cannabis retail outlets have now received their licences from Alberta Liquor Gaming and Cannabis and at least one expects to be distributing product this week.
Harvest Country Cannabis, Choom Cannabis Company and Fire & Flower Cannabis all received their final approvals this month. It’s just a matter of waiting for shipping, said Harvest Country owner Joe Renaud.
“I think we’re going to be first, that’s our goal and objective. We’re really shooting for Monday or Tuesday and I think we’re going to make it,” said Renaud, who said he’s genuinely looking forward to competing in the local market with the larger chain stores.
“They better be worried, because Joe’s not worried. We’re local operators, we know the people, we’re passionate about the product and I’ve been doing business on this street for close to 60 years. Those are the things that make for success. When you’re passionate about something it’s easy to sell it.”
Renaud expects to employ up to two full time staff and three or more part-time staff for the store which will be open seven days a week, for 12 hours per day.
Choom’s chief operating officer Michael Forbes expects to employ about the same number. Clarity Cannabis was acquired by Choom in February and the Westlock store is scheduled to open under the Choom brand in about “three weeks,” he said.
“I’m a pharmacist by trade, so I’ve had drugstores in small towns and I’ve always liked the vibe in the smaller towns,” said Forbes.
He also pointed out the availability of affordable real estate and good employees in smaller centres, as well as the need for less marketing.
“I think Westlock will be a good spot for it. I’m excited to get open there, with the construction delays and supply issues we’ve had,” he said.
While not as overtly confident as Renaud, Forbes expects Choom to be able to compete with the other retailers in town by focusing heavily on staff training and product knowledge.
It has been a turbulent period for prospective cannabis retailers around the province and around the country since the plant and its derivatives were made legal for recreational use in Canada Oct. 17, 2018.
Since then, an inability to produce enough product to supply the growing number of cannabis retailers, led to an AGLC moratorium on distributing licenses for six months. That moratorium was just lifted May 30.
Both entrepreneurs said they have had their issues jumping through all the hoops set out before them in entering the cannabis industry and conforming to the laundry list of regulations retailers must abide by.
“Nobody is going to survive with this type of reporting, or the price of the product will go through the roof,” said Renaud.
“I’ve been a retailer all my life and I’ve never encountered this type of situation in retail,” he said, calling the regulations “onerous.”
That said, he also noted that dealing with AGLC has been “exemplary.”
Forbes also commented that the government made a mistake of taking a stance of not welcoming people who had been involved in the black market, into the new legal market.
“Where do you get the knowledge then? And if you’re trying to get rid of the black market why sideline those people?” Forbes asked.
“There’s not enough common sense I feel in some of the ways regulators are going about things and there needs to be time and consultation to find a middle ground that works,” he said.
Aside from that, competing with the black market will likely become increasingly difficult as the price gap between what is legal and what is not expands.
Both recognized that with wholesale pricing set by AGLC and having several competitors in town, profit margins may be slim.
A Statistics Canada report released last week shows that since legalization the price of cannabis on the black market has decreased to $6.18 per gram, while the price of legal cannabis, sold in stores has increased to $10.65 on average.
Forbes pointed out that in states where cannabis is legal, revenues are higher than those of alcohol and he expects the same trend to hold true in the new Canadian recreational market.
“We’re a convenience store and I know people are willing to pay for convenience. I know people are willing to pay for options in what they’re purchasing,” said Renaud.
Healius Naturals
Aside from the three retail stores, Westlock is also home to Healius Naturals, a cannabis cultivation company currently awaiting its production license from Health Canada to start constructing an indoor grow operation in the Westlock County Industrial Park.
The company has purchased property in the industrial area along with an adjacent existing building that is being upgraded to suit their needs.
“We’re going to start renovations on that facility right away here and we actually just got an update on our application to Health Canada and they’re just reviewing it. It’s basically the last stage before we get the go-ahead to start construction. We want to start growing as soon as possible, probably right at the end of 2019,” said CEO Stephanie Bauman.
Healius hopes to carve out its own niche in the market by providing a “diverse selection of high-end, exotically large cannabis strains.”
“We have a master grower on our team, who has been practicing her art for a long time now out in B.C. ... They have a growing technique and some ways of manicuring and taking care of the plants that provides some premium bud. We know that’s something the industry has been looking for so that’s kind of what we want to specialize in,” Bauman said.
Although originally conceived as a medical cannabis company, Bauman said she sees the company entering the recreational market as well and is glad to see the retail side of the industry moving forward in Westlock.
“We think that there’s value in both sides, we’re open to that,” she said.
“We’re excited they’ve got their licences and hopefully everyone in the town welcomes it and moves forward with it.”
