New Brunswick to pivot to private-sector cannabis retail model

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New Brunswick’s government is acquiring out of the cannabis retail organization, presenting an chance for the private sector.

The province issued a request for proposals to open privately-owned cannabis retail areas for a single operator in the new year.

New Brunswick is seeking for a speedy sale, indicating that applicants have till Jan. 10, 2020, to submit proposals.

Applicants will have to have:

  • Demonstrated expertise in the sale of adult-use cannabis.
  • The monetary capacity to create and sustain operations.
  • A viable strategy to combat the illicit industry
  • The potential to provide higher-high quality service via cost competitiveness and item diversity.
  • An strategy to developing partnerships with nearby entrepreneurs and 1st Nations.

New Brunswick’s 20 retailers, plus the on the internet channel, recorded adult-use cannabis sales of five.three million Canadian dollars ($four million) in August, double April’s receipts of CA$two.eight million.

The province stated that the thriving applicant will have to submit “an desirable monetary offer” for the sales rights.

“This is element of our efforts to energize the private sector, get our monetary home in order and maximize the positive aspects for taxpayers and the government,” Finance Minister Ernie Steeves stated in a statement.

The government hopes to announce the thriving winner of the tender in the spring of 2020.

A transition to the new private-sector model would take place later the identical year, if a winning bid is chosen.

Legislative alterations are needed, which includes amending the New Brunswick Liquor Corporation Act, which is anticipated to get started in the coming weeks.

“We think that the government’s function really should be to regulate and guard the wellness and properly-getting of our residents,” Steeves stated. “That is why our government has identified the single private operator model as the most effective strategy to balance each the public protection and monetary interest objectives for the province.”

CEO Patrick Parent stated Cannabis NB has negotiated reduce rates with producers, hence enhancing the organization prospects of the chain.

“Products competitive with the illegal industry have been offered in our retailers for a handful of weeks now, and I can assure our shoppers that the group will continue to compete,” Parent stated in a statement.

Separately, Cannabis NB is at present accepting proposals for cannabis-associated accessories intended for sale in up to 20 retail retailers and on the internet.

The tender documents are available right here.

Matt Lamers can be reached at [email protected]

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