Preparing for the coming of Edibles
The publication of the Regulations Amending the Cannabis Regulations (New Classes of Cannabis) in the Canada Gazette II on June 26th, 2019 finalizes the framework for edible cannabis products in Canada, but there are still many questions producers are asking themselves.
Based on the regulations, commercial manufacturing of edible cannabis products falls under the Micro Processing and Standard Processing Licences. Those holding Processing Licences for cannabis oil from Health Canada can start manufacturing edible cannabis products now, and these products can be commercialized after the new regulations come into force on October 17th, 2019. This is only possible if the manufacturer applies for and obtains an amendment adding the edible cannabis class to their licence, submits the necessary product notification, and can demonstrate the products were produced in accordance with the Regulations Amending the Cannabis Regulations (New Classes of Cannabis).
To prepare for the introduction of edible cannabis products to market, many companies that don’t hold a Processing Licence are applying for a Research and Development (R&D) Licence under the Cannabis Act. This allows a company to experiment with cannabis – creating recipes and product formats without a Micro Processing or Standard Processing Licence.
Given the high demand anticipated for edibles, getting an early start is highly recommended.
Whether you’re opting to outsource part of process, or control everything from research and development through final approvals and distribution, there are many things to consider for your edibles market entry.
It is important to look at how your business will be structured and who will be involved (including partnerships and suppliers), as well as where your facility will be and what type(s) of edible cannabis products you’ll create. As mentioned above, not everyone will perform all functions of their enterprise in-house: we’re seeing different strategies when it comes to product development and ingredient sourcing, as well as manufacturing, quality oversight, and testing. Some businesses are well-positioned to leverage their own existing knowledge and infrastructure, while others are looking beyond their own organization to outsource or recruit the capabilities they need.
Once the high-level plan is set, edibles producers need to focus on the details of equipment, packaging, personnel, processes, financing, security, training, branding, distribution, timing, and more.
It’s a lot to think about. Answering these questions now will help you develop a viable go-to-market strategy and get underway faster.
Brenna Boonstra is Director of Quality and Regulatory at CCI. CCI’s experts have helped hundreds of companies start, scale, and expand their businesses.
We can help guide your new venture from an edibles strategic plan through to a viable, operating business. Get in Touch with us.