David Raymond Amos @DavidRayAmos
Replying to @DavidRayAmos @alllibertynews and 49 others
Methinks a lot of folks would agree that Ernie Steeves just made our day but for many different reasons N'esy Pas?
https://davidraymondamos3.blogspot.com/2019/11/new-brunswick-wants-to-ditch-provinces.html
https://www.cbc.ca/news/canada/new-brunswick/cannabis-nb-government-of-new-brunswick-retail-private-sector-1.5359106
New Brunswick wants to ditch province's Cannabis NB for private pot retailer
Recreational cannabis sales haven't lived up to projections from a year ago
· CBC News · Posted: Nov 14, 2019 1:00 PM AT
New Brunswick Finance Minister Ernie Steeves announced Thursday the province has issued a request for proposals for a single, private entity to take over recreational cannabis sales in the province. (Elizabeth Fraser/CBC)
The New Brunswick government plans to hand over recreational cannabis sales to the private sector, according to the province's finance minister.
Finance Minister Ernie Steeves announced Thursday the provincial government has issued a request for proposals for a single, private operator to "undertake the operation, distribution and sales of recreational cannabis in New Brunswick."
"This is part of our efforts to energize the private sector, get our financial house in order and maximize the benefits for taxpayers and the government," Steeves said.
Cannabis NB, the provincially owned and operated cannabis distributor, has been a money-loser since the outset of legalization in October 2018. New Brunswick is among several provinces dissatisfied with their retail cannabis model and proposing to overhaul the system.
The provincial government signalled earlier this year that it wanted to change course with how cannabis is sold in the province. (Elizabeth Fraser/CBC)
The Progressive Conservative minister said he never liked the Liberal-implemented business model, which sees the government monopoly run 20 stores across the province.
During a news conference in Fredericton, Steeves said the provincial government should not be in "the business of business."
"Our government strongly believes our role should be to regulate and enforce the regulations to protect the health and well-being of our citizens," he said.
Steeves blamed high prices unable to undercut the illegal market, supply issues, restrictive Health Canada regulations and expensive store leases as factors for why Cannabis NB is failing.
Cannabis NB promises improvement
Patrick Parent, the newly installed CEO of Cannabis NB, said the future of the corporation rests with the government but pledged to improve the operation and continue its plan to roll out edibles in the coming months.
"We have clearly stated on numerous occasions that we must offer more competitive products. We couldn't agree more on this point," Parent said, in a statement Thursday afternoon.
He said Cannabis NB has negotiated lower prices with producers that will challenge the illegal market.
Patrick Parent, who took over as Cannabis NB CEO in September, said the company has negotiated lower prices with producers that will challenge the illegal market. (CBC)
"We will continue to make consumers aware of our offers, albeit within the very restrictive regulatory framework around advertising," Parent said.
"We will continue to offer an exceptional educational in-store and online experience fully respecting the federal and provincial laws governing the cannabis industry."
Workers' fate unclear
What happens to the roughly 250 Cannabis NB employees if a private operator takes over remains unclear.
Steeves said it would be up to the business, adding it's likely a successful proponent would want a trained workforce.
But employment and other issues, such as which stores might be closed or opened, would be up to the company, he said.
The minister emphasized that Cannabis NB will continue operating as usual, and the transition would occur only if a "compelling" proposal was presented.
RFP conditions
Proponents interested in taking over cannabis sales will need to demonstrate experience in recreational sales, financial capacity to develop and sustain operations and "a viable plan" to combat the illegal market, the provincial government said. They have until Jan. 10, 2020, to submit their proposals.
The proposals will be evaluated by a third-party fairness monitor. A new private operator could be announced as early as spring 2020, with a new delivery model later next year.
The provincial government would bring amendments to the New Brunswick Liquor Corporation Act in the fall.
Sustained losses
Although legal cannabis sales in New Brunswick showed some improvement over the summer, Cannabis NB, which has 20 stores across the province and also sells cannabis products online, continues to lose money.
At the end of October, Cannabis NB reported that sales in its second quarter, which covered 13 weeks ending Sept. 29, were $10.7 million.
The Cannabis NB store in Campbellton, N.B., was low on stock and had to temporarily close in the first days after legalization in order to re-up its supply. Steeves listed supply issues among the reasons why the corporation is failing. (Serge Bouchard/Radio Canada)
That was a 17.6 per cent increase over first-quarter sales.
The provincial Crown corporation has been in financial difficulty since it launched October 2018, when recreational marijuana became legal in Canada.
Cannabis NB sales have been less than half the original projections, forcing layoffs and causing significant financial problems. It was expected to break even but lost $12.5 million over its first six months and a further $2.2 million during the first quarter of this year.
Initially, Cannabis NB blamed a lack of supply for sales problems but, more recently, has pointed to illegal dispensaries it said are poaching customers.
450 Comments
Commenting is now closed for this story.
Rob Franklin
Let me go get a soda and a bucket of popcorn....this is going to be good.
David Amos
Reply to @Rob Franklin: Welcome to the Circus
David Amos
Methinks a lot of folks would agree that Ernie Steeves just made our day but for many different reasons N'esy Pas?
David Taylor
Reply to @David Amos: N'esy Pas? is that the only pigin french phrase you know ?
David Amos
Reply to @david taylor: Trust that the pigs at the trough you support don't care what you think of me
Paul Bourgoin
NB,
the Province whose Leadership and money making efforts are sleeping as
the the Brinks Trucks are hauling our NEW BRUNSWICK Pot Profits
anywhere that does not benefit New Brunswick and its Residents!! We can
compare this lack of financial skills to that of the mis-management of
our Crown-lands and fish and wildlife management! New Brunswick the
Province that gives its Natural resources away!
Stephen Robertson
Reply to @Paul Bourgoin: what profits?
David Amos
Reply to @Stephen Robertson: Exactly
Paul Bourgoin
Reply to @Stephen Robertson: Ever wonder why NB business men bank their Profit money in off shore Banks Accounts??
John Montgomery
Has
any private (read: taxed) weed market been able to keep up with the
street? They may have to be willing to abandon the taxes until the
black market is snuffed out; if that is really what the goal is.
Buford Wilson
(Alberta has done it John.)
David Amos
Reply to @Buford Wilson: YUP
John Brown
Only government could lose money selling weed.
David Amos
Reply to @John Brown: Sad but oh so true
Michael Hewak
They call it "weed" because it IS a weed. A previous poster was right, tomatoes are harder.
In some rural areas corn is still sold roadside, with nobody there other than a sign that says "$1/dozen, honour system", and a small lock-box on a chain.
One can only dream....
In some rural areas corn is still sold roadside, with nobody there other than a sign that says "$1/dozen, honour system", and a small lock-box on a chain.
One can only dream....
David Amos
Reply to @Michael Hewak: Dream on
Charles Brody
Just
another demonstration Conservatives cannot run a business. Hell, look
at the darling of Conservatives, Donald Trump. He couldn't even turn a
profit running a casino!
Stephen Robertson
Reply to @Charles Brody: Charles, have another puff and try again
David Amos
Reply to @Stephen Robertson: Why? He is correct about Trump
Al Clark
Jan
2020. So, after the election. Good. All will stay the same. Maybe we
can get the police chiefs who were crying about the sky falling a year
ago to do SOME enforcement.
David Amos
Reply to @Al Clark: Methinks they should begin by having their cops investigate YOU N'esy Pas?
Alan Smithee
"Proponents
interested in taking over cannabis sales will need to demonstrate
experience in recreational sales, financial capacity to develop and
sustain operations and "a viable plan" to combat the illegal market."
The buyer will need to show a viable plan to combat the illegal market? Isn't that the job of the police?
The buyer will need to show a viable plan to combat the illegal market? Isn't that the job of the police?
Jeremy
Kerr
Reply to @Alan Smithee:
That approach wasn't effective before legalization, what makes you think it will be different now? The best approach to combat the illegal market is to effectively compete with it - on price, quality, availability.
That approach wasn't effective before legalization, what makes you think it will be different now? The best approach to combat the illegal market is to effectively compete with it - on price, quality, availability.
Al Clark
Reply to @Jeremy
Kerr: Enforcement was lax before because even the cops and judicial
system knew how ridiculous it was. NOW they need to step up like they do
with tobacco and alcohol. Cops are a little slow to catch on.
Jeremy
Kerr
Reply to @Al Clark:
Yeah they were so lax in the 1970s and 1980s when weed was under the narcotics control act. Putting thousands of kids in jail didn't work either.
Yeah they were so lax in the 1970s and 1980s when weed was under the narcotics control act. Putting thousands of kids in jail didn't work either.
David Amos
Reply to @Al Clark: "Cops are a little slow to catch on."
You should know
You should know
No comments:
Post a Comment