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Cannabis retailers would like to offer specials

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Cannabis sales in Canada have stagnated in 2023. (File photo)

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A group of more than 750 cannabis retailers in Canada is urging provinces to lift restrictions preventing its members from collaborating with producers to offer promotions to customers.

Marijuana sales have stagnated in 2023 in the country, following five years of market growth following the legalization of cannabis.

However, all provinces, except Saskatchewan, prohibit retailers from collaborating with producers on promotional and discount campaigns, unless the producer owns the point of sale.

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According to Independent Retail Cannabis Collective CEO Shakir Tayabali, these restrictions undermine customer loyalty to product brands.

Consumers don't necessarily know [cannabis] brands and what they want to try.

A quote from Shakir Tayabali, CEO , Independent Retail Cannabis Collective

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According to him, the more people know about the products offered, the less likely they will turn to the black market.

Brad Poulos, lecturer at the Ted Rogers School of Management in Toronto, admits that it is very, very difficult currently for a producer to make himself known to consumers. Purchases are based primarily on price and quantity of THC rather than brand, observers say.

[Consumers] are searching for the product containing the most THC at the lowest price, says Tayabali. He said retailers should have the right to promote other aspects, such as the taste and feel of a product.

The Ontario Chamber of Commerce is also urging Doug Ford's government to “modernize” its regulatory framework and allow financial partnerships between producers and retailers, saying current restrictions are undermining the growth of market.

The province responds that it continues to monitor the cannabis market and evaluate business opportunities for retailers, while protecting communities.

In Alberta, the organization that regulates the market, Alberta Gaming, Liquor and Cannabis, recently conducted consultations on possible regulatory reform. There may be policy changes in the coming months, the organization told CBC by email.

D x27;based on information provided by CBCNews

's Mike Crawley

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