Craft Weed Canada Becomes a Product Classification

When it comes to the Canadian marijuana industry, the term craft is often used as a marketing buzzword, but it’s increasingly becoming an actual product classification. The Ontario Cannabis Store, the government-owned online retailer for the province, has added a new designation for products that meet certain criteria — including smaller batch sizes and more varied cultivars. The move could help small producers in the critical province stand out amid a sea of competition, and potentially draw business from consumers with high expectations who want to support small-batch growers. Click here

The designation is being welcomed by some micro-cultivators, who are seeing a growing interest in their products among consumers. “There’s a lot of demand for craft,” says George Scorsis, interim CEO of Entourage Health Corp., which is working with a number of small-batch producers as it looks to build its brand in the legal market. “We’ve found there’s a strong desire among the consumer for more variety and quality in the products they consume.”

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Other legal growers are also looking to capitalize on this trend, with some even working together to help each other navigate Canada’s complicated marijuana laws, navigate financial institutions that remain hostile to the industry, obtain licenses and organize themselves into groups. One example is the BC Craft Farmers Co-Op, which has started to help newer growers navigate the process and connect with larger LPs.

The growing emphasis on craft, however, may not be enough to offset the ongoing challenges that face Canada’s marijuana industry. Regulatory hurdles, supply shortages and the sluggish pace of retail licensing have all contributed to the continuing turmoil in the sector, where numerous companies have gone bankrupt and accumulated unpaid taxes.

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