Hey there! We’re chatting about BC’s Direct Delivery program today. It’s a cool initiative started last August for the little guys in the cannabis industry. The aim? To give small-scale growers a leg up in the legal market. The program’s been going since August 2022, and it’s picking up some speed. But let’s be real, it’s still got some kinks to work out for craft cannabis-loving folks.
So, what’s the deal?
Instead of sending their goods to the BC Liquor Distribution Branch’s (LDB) main warehouse, growers can list their products for direct sale to retailers. It’s like a dating app for cannabis! Retailers check out the list, find a match, and arrange delivery directly with the producer. The upside? Cash up front and stronger relationships with the retailers. Plus, one less middleman means fresher cannabis flower and related products for consumers.
There’s a catch, though.
BC’s Direct Delivery System in action. Image source: Stratcann
This is only for BC growers who make less than 3,000 kg of dried cannabis flower a year. It started off a bit rocky (thanks to a strike at the LDB’s warehouse), but they’ve managed to sell nearly one metric ton of cannabis worth $5.7 million in the first eight months. Okay, that’s a tiny piece of the pie compared to the hundreds of millions in wholesale sales, but hey, it’s all about helping the small-batch growers here.
Janeen Davis from Joint Venture Craft Cannabis Inc (JVCC) has been using the program and seeing some decent sales. One of the big perks? Fresher products and a return to a simpler, pre-legalization supply chain. She loves that they know exactly who’s bringing in their product and can offer top-notch customer service. Plus, they can deliver an order in under 48 hours. Compare that to the two or three weeks it takes with the LDB, and it’s a no-brainer.
But it’s not all sunshine and rainbows. There’s a hefty 15% fee slapped on by the BC government for any direct delivery sales. Imagine having to deliver products personally or through a delivery service, handle payments, track shipments, and keep records, all with that fee hanging over your head. But if that fee were reduced? It could be a game changer for small businesses that are just trying to keep the lights on. The good news is that the province is planning to review the program and the fee. But who knows when that’s going to happen.
William Marshall from Aaron’s BC Bud is another fan of the program. He’s been using it since it started and loves that it not only means fresher products but faster payment too. If they could just get rid of that 15% fee, he reckons it could be a real win for the retailers and the growers.
But let’s be fair.
BC Blueberry Shizzle organic artisan strain from Papa Joe’s Organics.
Ryan Brown from Just Kush Enterprises shared similar sentiments. He jumped on the direct delivery bandwagon when it first started but noticed sales slowing down this year. While he still uses the program with a few retailers, the sales just aren’t enough to keep things rolling. Sure, those who buy his products directly are supportive, but he’s got to handle the extra logistics for each of those orders compared to one single shipment through the LDB.
In response to the logistical complexities of BC’s Direct Delivery program JointConnections.ca steps in with a streamlined and user-friendly platform designed to facilitate direct delivery connections across the cannabis industry. This initiative significantly lowers logistical hurdles and broadens market access, empowering craft cannabis producers and retailers to excel in a competitive market. It complements the Direct Delivery initiative by providing the essential infrastructure and support to navigate industry challenges, promising a brighter future for the craft cannabis movement.
So, while the direct delivery program has potential, it looks like we need some tweaks to make it really work for our craft cannabis growers. Stay tuned for updates on the review by the province and here’s hoping that 15% fee takes a hike.
The Budhub Perspective
This whole scene is pretty important when we look at it from a craft cannabis perspective. BC is known for its craft cannabis growers who are passionate about producing unique, high-quality strains. This direct delivery program could be a lifeline for these artisans, allowing them to compete with the big players in the market and get their products into the hands of consumers who value quality and variety.
The program’s approach also brings back the old-school, farm-to-table style of doing things. This is not just about business – it’s about preserving a culture, a craft, and a way of life that existed long before cannabis was legalized. By reducing the barriers for these small-scale growers, we’re ensuring that this culture continues to thrive.
For Canadians, this is a win-win situation. The diversity of products that craft cannabis producers offer means a wider choice for consumers and the chance to support local businesses. Plus, who wouldn’t love fresh, carefully crafted cannabis products?
In the end, it’s clear that the craft cannabis movement in BC, supported by initiatives like the direct delivery program, is more than just a trend – it’s a testament to the resilience and innovation of the cannabis community in Canada. Here’s to hoping for more positive changes in the future that will allow this sector to flourish even more!
Cheers,
Anna Gray
This story was inspired by STRATCANN’s original article, published on March 29, 2023.
