Canada’s Cannabis Supply Chain Coming Together For Recreational Sales

Even though Canada recently delayed the start of recreational marijuana sales this summer, cannabis companies have submitted contracts to create the cannabis supply chain for Quebec. The french Canadian province is approaching legal recreational marijuana in a bit of a controversial way by having the government control the cannabis industry.

All of the major players up in Canada have been preparing for recreational marijuana sales for some time. Canopy, Aphria and Aurora all want to dominate the cannabis market, however that will not get done through Quebec considering the province is not intending on permitting an open market.

The companies individually announced the deals with the Crown corporation, which is overseeing marijuana sales in the province through a subsidiary when it becomes legal later this year.

The Hydropothecary Corp., which is based in Quebec, will provide 20,000 kilograms of cannabis products in the first year of legalized recreational cannabis use through a full range of products.

Meanwhile, Aphria Inc. will provide up to 12,000 kilograms of products in the first year, including cannabis oils, other derivatives and several strains of high-quality dried cannabis flowers grown in Ontario and British Columbia.

Canopy Growth Corp. also announced a deal to provide 12,000 cannabis plants a year.

MedReleaf Corp. will supply the Quebec market with a minimum of 8,000 kilograms of cannabis products per year.

Aurora Cannabis Inc. will provide 5,000 kilograms of cannabis per year, but no maximum limit has been set. The products will mainly come from its production sites in Quebec.

Tilray will provide the province with 5,000 kilograms of cannabis per year across a variety of brands.

Many of these companies have cannabis exporting contracts with Europe and Australia, but obviously an easier and more affordable source of revenue is right at home. Everyone is anticipating that recreational sales will begin in Canada on July 1. Any thoughts on who the king of the cannabis supply chain will end up being?


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