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David Raymond Amos @DavidRayAmos
Replying to @DavidRayAmos @alllibertynews and 49 others
Methinks a lot of folks would agree that Ernie Steeves just made our day but for many different reasons N'esy Pas?
https://davidraymondamos3.blogspot.com/2019/11/new-brunswick-wants-to-ditch-provinces.html
#cdnpoli#nbpoli
https://www.cbc.ca/news/canada/new-brunswick/cannabis-nb-government-of-new-brunswick-retail-private-sector-1.5359106
· CBC News· Posted: Nov 14, 2019 1:00 PM AT
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New Brunswick Finance Minister Ernie Steeves announced Thursday the province has issued a request for proposals for a single, private entity to take over recreational cannabis sales in the province. (Elizabeth Fraser/CBC)
The New Brunswick government plans to hand over recreational cannabis sales to the private sector, according to the province's finance minister.
Finance Minister Ernie Steeves announced Thursday the provincial government has issued a request for proposals for a single, private operator to "undertake the operation, distribution and sales of recreational cannabis in New Brunswick."
"This is part of our efforts to energize the private sector, get our financial house in order and maximize the benefits for taxpayers and the government," Steeves said.
Cannabis NB, the provincially owned and operated cannabis distributor, has been a money-loser since the outset of legalization in October 2018. New Brunswick is among several provinces dissatisfied with their retail cannabis model and proposing to overhaul the system.
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The provincial government signalled earlier this year that it wanted to change course with how cannabis is sold in the province. (Elizabeth Fraser/CBC)
The Progressive Conservative minister said he never liked the Liberal-implemented business model, which sees the government monopoly run 20 stores across the province.
During a news conference in Fredericton, Steeves said the provincial government should not be in "the business of business."
"Our government strongly believes our role should be to regulate and enforce the regulations to protect the health and well-being of our citizens," he said.
He did not estimate what the transition could cost the province, saying the details will be ironed out through the proposal process.
Steeves blamed high prices unable to undercut the illegal market, supply issues, restrictive Health Canada regulations and expensive store leases as factors for why Cannabis NB is failing.
Patrick Parent, the newly installed CEO of Cannabis NB, said the future of the corporation rests with the government but pledged to improve the operation and continue its plan to roll out edibles in the coming months.
"We have clearly stated on numerous occasions that we must offer more competitive products. We couldn't agree more on this point," Parent said, in a statement Thursday afternoon.
He said Cannabis NB has negotiated lower prices with producers that will challenge the illegal market.
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Patrick Parent, who took over as Cannabis NB CEO in September, said the company has negotiated lower prices with producers that will challenge the illegal market. (CBC)
"We will continue to make consumers aware of our offers, albeit within the very restrictive regulatory framework around advertising," Parent said.
"We will continue to offer an exceptional educational in-store and online experience fully respecting the federal and provincial laws governing the cannabis industry."
What happens to the roughly 250 Cannabis NB employees if a private operator takes over remains unclear.
Steeves said it would be up to the business, adding it's likely a successful proponent would want a trained workforce.
But employment and other issues, such as which stores might be closed or opened, would be up to the company, he said.
The minister emphasized that Cannabis NB will continue operating as usual, and the transition would occur only if a "compelling" proposal was presented.
Proponents interested in taking over cannabis sales will need to demonstrate experience in recreational sales, financial capacity to develop and sustain operations and "a viable plan" to combat the illegal market, the provincial government said. They have until Jan. 10, 2020, to submit their proposals.
The proposals will be evaluated by a third-party fairness monitor. A new private operator could be announced as early as spring 2020, with a new delivery model later next year.
The provincial government would bring amendments to the New Brunswick Liquor Corporation Act in the fall.
Although legal cannabis sales in New Brunswick showed some improvement over the summer, Cannabis NB, which has 20 stores across the province and also sells cannabis products online, continues to lose money.
At the end of October, Cannabis NB reported that sales in its second quarter, which covered 13 weeks ending Sept. 29, were $10.7 million.
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The Cannabis NB store in Campbellton, N.B., was low on stock and had to temporarily close in the first days after legalization in order to re-up its supply. Steeves listed supply issues among the reasons why the corporation is failing. (Serge Bouchard/Radio Canada)
That was a 17.6 per cent increase over first-quarter sales.
The provincial Crown corporation has been in financial difficulty since it launched October 2018, when recreational marijuana became legal in Canada.
Cannabis NB sales have been less than half the original projections, forcing layoffs and causing significant financial problems. It was expected to break even but lost $12.5 million over its first six months and a further $2.2 million during the first quarter of this year.
The latest results increase losses to $16.2 million over its first 50 weeks.
Initially, Cannabis NB blamed a lack of supply for sales problems but, more recently, has pointed to illegal dispensaries it said are poaching customers.
450 Comments
Commenting is now closed for this story.
Rob Franklin
Let me go get a soda and a bucket of popcorn....this is going to be good.
David Amos
David Amos
Methinks a lot of folks would agree that Ernie Steeves just made our day but for many different reasons N'esy Pas?
David Raymond Amos @DavidRayAmos
Replying to @DavidRayAmos @alllibertynews and 49 others
Methinks a lot of folks would agree that Ernie Steeves just made our day but for many different reasons N'esy Pas?
https://davidraymondamos3.blogspot.com/2019/11/new-brunswick-wants-to-ditch-provinces.html
https://www.cbc.ca/news/canada/new-brunswick/cannabis-nb-government-of-new-brunswick-retail-private-sector-1.5359106
New Brunswick wants to ditch province's Cannabis NB for private pot retailer
Recreational cannabis sales haven't lived up to projections from a year ago
· CBC News· Posted: Nov 14, 2019 1:00 PM AT
New Brunswick Finance Minister Ernie Steeves announced Thursday the province has issued a request for proposals for a single, private entity to take over recreational cannabis sales in the province. (Elizabeth Fraser/CBC)
The New Brunswick government plans to hand over recreational cannabis sales to the private sector, according to the province's finance minister.
Finance Minister Ernie Steeves announced Thursday the provincial government has issued a request for proposals for a single, private operator to "undertake the operation, distribution and sales of recreational cannabis in New Brunswick."
"This is part of our efforts to energize the private sector, get our financial house in order and maximize the benefits for taxpayers and the government," Steeves said.
Cannabis NB, the provincially owned and operated cannabis distributor, has been a money-loser since the outset of legalization in October 2018. New Brunswick is among several provinces dissatisfied with their retail cannabis model and proposing to overhaul the system.
The provincial government signalled earlier this year that it wanted to change course with how cannabis is sold in the province. (Elizabeth Fraser/CBC)
The Progressive Conservative minister said he never liked the Liberal-implemented business model, which sees the government monopoly run 20 stores across the province.
During a news conference in Fredericton, Steeves said the provincial government should not be in "the business of business."
"Our government strongly believes our role should be to regulate and enforce the regulations to protect the health and well-being of our citizens," he said.
Steeves blamed high prices unable to undercut the illegal market, supply issues, restrictive Health Canada regulations and expensive store leases as factors for why Cannabis NB is failing.
Cannabis NB promises improvement
Patrick Parent, the newly installed CEO of Cannabis NB, said the future of the corporation rests with the government but pledged to improve the operation and continue its plan to roll out edibles in the coming months.
"We have clearly stated on numerous occasions that we must offer more competitive products. We couldn't agree more on this point," Parent said, in a statement Thursday afternoon.
He said Cannabis NB has negotiated lower prices with producers that will challenge the illegal market.
Patrick Parent, who took over as Cannabis NB CEO in September, said the company has negotiated lower prices with producers that will challenge the illegal market. (CBC)
"We will continue to make consumers aware of our offers, albeit within the very restrictive regulatory framework around advertising," Parent said.
"We will continue to offer an exceptional educational in-store and online experience fully respecting the federal and provincial laws governing the cannabis industry."
Workers' fate unclear
What happens to the roughly 250 Cannabis NB employees if a private operator takes over remains unclear.
Steeves said it would be up to the business, adding it's likely a successful proponent would want a trained workforce.
But employment and other issues, such as which stores might be closed or opened, would be up to the company, he said.
The minister emphasized that Cannabis NB will continue operating as usual, and the transition would occur only if a "compelling" proposal was presented.
RFP conditions
Proponents interested in taking over cannabis sales will need to demonstrate experience in recreational sales, financial capacity to develop and sustain operations and "a viable plan" to combat the illegal market, the provincial government said. They have until Jan. 10, 2020, to submit their proposals.
The proposals will be evaluated by a third-party fairness monitor. A new private operator could be announced as early as spring 2020, with a new delivery model later next year.
The provincial government would bring amendments to the New Brunswick Liquor Corporation Act in the fall.
Sustained losses
Although legal cannabis sales in New Brunswick showed some improvement over the summer, Cannabis NB, which has 20 stores across the province and also sells cannabis products online, continues to lose money.
At the end of October, Cannabis NB reported that sales in its second quarter, which covered 13 weeks ending Sept. 29, were $10.7 million.
The Cannabis NB store in Campbellton, N.B., was low on stock and had to temporarily close in the first days after legalization in order to re-up its supply. Steeves listed supply issues among the reasons why the corporation is failing. (Serge Bouchard/Radio Canada)
That was a 17.6 per cent increase over first-quarter sales.
The provincial Crown corporation has been in financial difficulty since it launched October 2018, when recreational marijuana became legal in Canada.
Cannabis NB sales have been less than half the original projections, forcing layoffs and causing significant financial problems. It was expected to break even but lost $12.5 million over its first six months and a further $2.2 million during the first quarter of this year.
Initially, Cannabis NB blamed a lack of supply for sales problems but, more recently, has pointed to illegal dispensaries it said are poaching customers.
450 Comments
Commenting is now closed for this story.
Rob Franklin
Let me go get a soda and a bucket of popcorn....this is going to be good.
David Amos
Reply to @Rob Franklin: Welcome to the Circus
David Amos
Methinks a lot of folks would agree that Ernie Steeves just made our day but for many different reasons N'esy Pas?
In some rural areas corn is still sold roadside, with nobody there other than a sign that says "$1/dozen, honour system", and a small lock-box on a chain.
One can only dream....
The buyer will need to show a viable plan to combat the illegal market? Isn't that the job of the police?
That approach wasn't effective before legalization, what makes you think it will be different now? The best approach to combat the illegal market is to effectively compete with it - on price, quality, availability.
Yeah they were so lax in the 1970s and 1980s when weed was under the narcotics control act. Putting thousands of kids in jail didn't work either.
You should know