Health Canada has delivered its regulatory framework on cannabis edibles which will likely receive parliamentary approval and royal assent within weeks.
That’s not exactly what most had in mind a few years ago when we thought the federal government was inviting all Canadians to an enormous festival, at an exciting venue playing great music, with lots of dancing and fun.
What Canadians are getting instead is an invitation to some dingy bingo hall playing lousy music. Essentially, that is what it feels like, which may explain why Canadians are much less enthusiastic about the whole deal.
In 2015, it was the Liberals who were trying to convince Canadians that legalising cannabis will make our country a leader in the field. Given how strict the rules on edibles will be, it seems the Liberals are the ones that need convincing.
To the chagrin of the industry which really wanted more leeway, this outcome was very predictable.
Barely anything has changed from the proposed amendment first introduced in December 2018, before the 60-day consulting process. More than 7,000 reports were submitted, but Health Canada opted to overlook most recommendations made by different parties.
The federal agency is clearly in a risk-off mood with cannabis and edibles.
Interesting how Health Canada chooses to release dates when Canadians are busy doing other things, as if it was by design. They released initial guidelines on Dec. 22, days before the holidays. This time, the news was released the day after the Raptors historic win. But some gaps in the proposal remain.
In the eyes of the law, edibles are a drug, not a food. This is essentially the rationale used to isolate edibles from everything: in manufacturing, in retail, throughout the entire supply chain.
Rules are set by Health Canada, and will be implemented and supported by the Public Health Agency of Canada. Despite having more than 3,200 inspectors in the field, it appears as though the Canadian Food Inspection Agency won’t be actively involved in making sure industry remains in compliance.
Oversight will be looked after by the Public Health Agency. The agency has 70 inspectors nation-wide with limited knowledge about food processing. This could create some challenges and confusion for both regulators and industry alike. It will be interesting to see how these contact points between industry and regulators will be co-ordinated.
Also, some provisions in the amendment to the act are unequivocally absurd. Asking companies to process cannabis-infused products in a separate facility, and build it before applying for their licence is completely unreasonable.
The edible market in Colorado represents well over 40 per cent of all cannabis sales, and that percentage is only increasing.
This measure, which literally has nothing to do with protecting the public, will become a significant barrier for companies wanting to explore the cannabis space and commercialize edibles. None of this changed from the December draft.
On the positive, the law will include much-needed guidelines around the safety of children and labelling.
Potentially hazardous gummy bears won’t be manufactured in Canada. However, given how strict the rules are going to be, this approach could possibly entice the black market to explode.
A recent Dalhousie University study suggested that 71 per cent of Canadians who are supportive of legal cannabis would be willing to try an edible product at some point. Deloitte also predicts that the edible market will grow over time, as we have seen in many parts of the U.S.
The market for edibles is clearly there and many consumers will be tempted to go online to purchase unregulated edibles coming from abroad. In other words, you may see gummy bears, but they won’t be Canadian, or they may be homemade.
The black market’s size in Colorado, for example, where cannabis has been legal for six years, is still at around 20 per cent but it is difficult to see how Canada could match this threshold over the next few years.
The edible market in Colorado represents well over 40 per cent of all cannabis sales, and that percentage is only increasing.
Health Canada is targeting industry, as it should. However, by being too overbearing it could generate more risks for consumers, not less.
Health Canada has been predictable throughout this process and has shown little interest in listening to industry. It’s good politics, but with barely any reliable science, industry could have been helpful in making sense of Canada’s greatest social experiment.
We still don’t know much about cannabis, and most standards set by Health Canada are based on blurred science. Industry has some data that Health Canada could benefit from. Yet for Health Canada and the government, on the eve of a federal electoral campaign, it is all about mitigating risk, and that’s fine by Health Canada.
Discipline, ruling over possible disorder, is the chosen path.
Most Canadians won’t have an issue with this, but the work of an over-zealous regulator can be costly. It can only delay our path to a society in which cannabis is no longer stigmatized. This stigma will entice consumers to either continue to cook at home or buy illegally imported products.
The recent study from Dalhousie also suggested that nine per cent of all Canadians cook with cannabis at home at least once a month. With these new regulations, we will likely see more homemade and illegally imported edibles, both of which have no oversight.
Socially normalizing cannabis is also key in order to safely benefit from the natural plant which has been around for centuries. Cannabinoids, especially CDB, the non-psychoactive agent of the plant, can enhance the quality and the value of many food products. Yet there is no new mention of CBD in the new proposed amendment.
Health Canada is targeting industry, as it should. However, by being too overbearing it could generate more risks for consumers, not less.
Over the next little while don’t be surprised to see companies test our regulators’ tolerance for delinquent companies by not complying with the rules. We are already seeing it, particularly around the marketing of products and sponsorship of events.
To cope with the unforgiving nature of how facilities should be managed under new guidelines on edibles, companies will collaborate which will lead to partnerships, allowing companies to co-share R&D agendas and distribution strategies.
The C3 facility in Montreal, the Global Cannabis Innovation Center, which also involves McGill University, is a good example of that. Industry have also spent a great deal of time abroad to position their products as some countries are contemplating replicating what Canada has done.
New Zealand, Mexico, Argentina and other countries are in an advanced stage of decriminalizing or legalizing cannabis. While Health Canada wants to keep our collective fun at bay, industry is moving.
Funny how things work sometimes. A few years ago, the Liberals were the ones telling an unconvinced group of Canadians that cannabis should be legalized and will make Canada a leader in this field.
With rules around edibles and everything else, it is now the Liberals who appear to be less convinced, and one could say that they’re playing with fire.
Sylvain Charlebois is a professor in food distribution and policy, and the senior director of the Agri-Food Analytics Lab at Dalhousie University.
RELATED: Health Canada sets guidelines, release date for marijuana edibles
