As an untapped market, cannabis legalization brought forward a new industry across the province of New Brunswick and across Canada.
Recreational use, approved nearly four years ago, had each province looking at a different way to approach the sale and use of cannabis.
In its first year, Cannabis NB lost over $12 million before losing $4 million the next. Talks of privatization became a familiar conversation regarding the crown corporation.
“I think the conversation around privatization was because it was losing money,” said Shelley Rinehart, professor in the faculty of business at the University of New Brunswick.
“I think it was too early to call that.”
Rinehart has been following dealings with Cannabis NB for an extended period of time, but like many, she says it’s important to recognize some of the challenges that not only New Brunswick faced but a stigma across Canada.
“I think we can’t lose sight of the fact that cannabis was illegal, and we were taught that we shouldn’t use it, we shouldn’t talk about it, and we shouldn’t be seen with it,” Rinehart said. “There are a lot of barriers to overcome when you have that kind of mindset than going to a government-owned store to purchase it.”
“It was a new business, a new industry,” said Lara Wood, vice president of operations for Cannabis NB.
“Legalization was happening across the country. Unlike opening a new store or a new chain, you’re also dealing with an entire industry that’s new.”
Premier Blaine Higgs went to reporters in 2019, promising “We’re not going to keep losing money on this,” and kept to his word. The industry rebounded, and experts believe that the crown corporation is now doing better than most provinces in the country.
One group that has benefited from cannabis legalization has been independent producers and cultivators. The Craft Cannabis Association of New Brunswick legalization dubbed the first year “The best of times, and the worst of times.”
According to Rod Wilson, executive director of the association, the province has been working closely with those cultivators to grow the industry.
Wilson said the expanded distribution that New Brunswick is allowing through the expansion of Cannabis New Brunswick, is allowing entrepreneurs “to open private stores and also for cultivators and producers to open farm-based stores.”
“Those three things have happened in New Brunswick, which has really helped the industry move forward into the future.”
Meanwhile, Rinehart said she believes that while the province is on the right track, for now, it’s still not over the hump.
“I think the win is that they have established a market, and they’re moving to establish a clientele. But they’re still facing barriers from an illegal substance and that transition.”
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