Alberta has taken another swipe at reducing red tape by giving rural breweries and cannabis growers the freedom to sell their wares directly to customers.
The province announced “red tape reduction changes” to the gaming, liquor and cannabis regulations in a July 2 news release. The changes are intended to “directly open more opportunities for small manufacturers to grow their businesses.”
“This was actually a classic example of the need for red tape reduction,” said Service Alberta Minister Dale Nally, who added that the changes were developed as the result of multiple red tape reduction roundtables between the province and liquor and cannabis producers.
The changes will permit small liquor producers to operate party bike tours while serving their brand’s products. Additionally, businesses that own or lease large buildings can dedicate a segment of their space to create a separate liquor store as long as they meet certain conditions.
The new regulations also give Alberta’s cannabis cultivators and growers the freedom to provide “farm gate” sales, allowing customers to buy cannabis right from the grower instead of at a retail store.
We made it easier
Nally said the issue of party bike licensing was brought to his attention by a small-town brewery owner who offered party bike tours, but was not allowed to sell their own brewery’s beer on the tours.
“They could operate the bike and sell their competitors’ beer, but not their own,” Nally said, “So we just cut the red tape and we made it easier.”
In practical terms, breweries are now allowed to attain a public conveyance license, which permits the sale and consumption of liquor in public vehicles licensed to operate in Alberta, according to the AGLC.
Urban Pedal Tours co-owner Michael Moice says the changes likely won’t impact breweries in Edmonton and Calgary, where his company’s tours operate, but will be more important in rural areas like Red Deer and Medicine Hat, where some breweries do operate party bikes.
Moice feels the changes are “good for competition in general,” but that the new policy may still be too restrictive for smaller breweries.
“I do think it’s a little restrictive if they’re only allowed to sell their products. It may not hinder medium-sized breweries, but for the smaller ones, it may hurt their bottom line.“
Nally said the change to cannabis sales regulations was the result of multiple roundtable discussions with industry leaders.
“We’ve heard loud and clear that the cannabis industry wants the same freedoms offered to businesses that sell other regulated products, like liquor.”
That equal treatment includes allowing growers and cultivators to sell their products directly to their customers, called “farm gate sales.” As the name implies, customers can drive right up to the gates of a cannabis farm and purchase products directly from the grower. This is already legal in other provinces.
“This has never been something that recreational cannabis customers and producers ever had the opportunity to do in Alberta,” said Dave Auger, commissioner of Big League Genetics and Cultivation. “That’s going to allow producers to control the message and story that they’re telling their customers.”
At the same time, Auger questions whether the change may be too little, too late, because Alberta already has roughly 750 cannabis retail stores, and Auger says many growers and cultivators operate in industrial areas that likely won’t get visitors.
“You’re not going to drive into an industrial park to come and find me. It’s just not like a high retail location, and this would be a lousy location for a retail shop.”
“I think it will be beneficial to people that are successful with it. If I were to spend the money to build a little retail storefront, I don’t think that it would yield the return.”
