(This is the 10th installment in a collection wanting on the marijuana markets in every of Canada’s provinces. Other installments: Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland, Nova Scotia, Ontario, Quebec and Saskatchewan.)
Prince Edward Island (PEI) could also be Canada’s smallest province, however it has already attracted some necessary investments within the cannabis industry.
Canada’s Island Garden discovered itself on the receiving finish of a serious cope with Alliance One International (NYSE: AOI) earlier this yr. It was the primary foray by a big tobacco firm into the cannabis industry.
Executives within the province are capitalizing on enterprise alternatives in areas akin to cannabis tourism, extraction and – to a lesser extent – cultivation.
Edwin Jewell, president of Canada’s Island Garden, advised Marijuana Business Daily he expects native consumption charges to be on par with different provinces. And that bodes properly for his firm, PEI’s solely licensed producer (LP).
Tourism is projected to be an enormous a part of the accessible industry for entrepreneurs, and lodge proprietors could have the chance to designate visitor rooms for cannabis consumption.
“Given the fact that we are Canada’s ‘food island,’ the opportunity for cannabis tourism and the cannabis consumer experience are just phenomenal,” stated Shaman Ferraro, CEO and founding father of Gocanna, a Charlottetown-based, MJ tourism information.
PEI handed its key cannabis-related laws June 12.
Prince Edward Island’s leisure market is predicted to be the smallest in Canada.
Data from the Parliamentary Budget Office (PBO), when adjusted for the province’s working-age inhabitants, factors to annual demand of about three,300 kilograms (7,275 kilos) of cannabis.
That might rise to three,700 annual kilograms by 2021, relying on how profitable the provincial authorities is in corralling black-market gross sales.
Estimates place the variety of shoppers within the neighborhood of 20,000 of the province’s 120,000 adults.
According to Statistics Canada’s current National Cannabis Survey, 14% of PEI adults have consumed some type of marijuana up to now three months.
PEI’s 800-plus registered medical cannabis sufferers per 100,000 individuals signifies that MMJ has an above-average uptake in comparison with the remainder of Canada.
However, the market is small general; as of December 2017, there have been almost 1,200 registered sufferers.
For comparability, neighboring New Brunswick has 6,500 registered MMJ sufferers.
Thirty-six individuals within the province had a license to domesticate their very own MMJ as of December, based on publicly obtainable knowledge from Health Canada.
While small, PEI wasn’t lifeless final place with regards to cultivation as of June. (That title goes to Newfoundland and its zero licensed producers.)
In addition to the one present LP, just one different license within the province is pending with Health Canada.
In the meantime, Canada’s Island Garden is executing an aggressive progress technique, with plans to develop its workforce from 20 individuals to roughly 200 within the coming yr.
When absolutely constructed out in 2019, the corporate may have roughly 250,000 sq. ft of cultivation area underneath cover, making it one of many largest amenities in Atlantic Canada.
“In terms of the population we have and a company our size, it’s a great place for us to be,” Jewell stated.
In January PEI selected three licensed producers for its home provide of adult-use cannabis – Ontario-based Canopy Growth, New Brunswick-based Organigram and Canada’s Island Garden.
Organigram (TSE: OGI) and Canopy (TSE: WEED) will every provide 1,000 kilograms of marijuana, and Canada’s Island Garden will reply the decision for the rest.
PEI is a magnet for vacationers, and entrepreneurs hope to parlay that into cannabis gold.
Ferraro of Gocanna famous that PEI’s laws will permit cannabis consumption to happen in private residences, on personal property and in lodge rooms if the visitor has consent from the proprietor.
“Tourism is so big here,” he stated. “There are tons of opportunities for operators to be able to offer the feature of designating an area on your property where people can legally and safely consume cannabis.”
Ray Gracewood, chief business officer of Organigram, stated cannabis tourism can be one of many shiny spots in PEI’s cannabis industry, and licensed producers like his are planning to focus on scorching vacationer markets to construct model consciousness.
“When people are on vacation and having great experiences in PEI, our product can be part of that,” he stated, noting his provide cope with the province. “Then, when people go back to their homes, whether that’s Ontario or New Brunswick, they’ll (leave with) a favorable impression of our brand.”
Businesses are additionally shifting to fill the void in different areas similar to extraction.
Dosecann, a licensed supplier applicant, plans to capitalize on extraction, formulation, filling and packaging.
The Charlottetown-based firm says it’s creating a set of cannabis merchandise for each the medical and adult-use markets.
Canada’s proposed licensing construction for leisure marijuana will create vital alternatives for extra gamers in each province.
Retail gross sales
Like most different Eastern Canadian provinces, Prince Edward Island plans to nook the market on leisure marijuana by limiting gross sales to government-owned retail places, making it one in every of 5 provinces to bar entrepreneurs from investing in storefront alternatives.
Those retail shops can be situated in Charlottetown, Summerside, Montague and West Prince.
Industry sources expressed concern with the province’s plan to arrange only one cannabis retail retailer for the capital, however the provincial authorities stated it is going to gauge gross sales and weigh any future enlargement plans.
Matt Lamers might be reached at [email protected]
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