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CanadaIndustry

New Brunswick wants to privatize its cannabis stores

Harrison JordanPublished on November 18, 2019 · Last updated July 28, 2020
cannabis new brunswick
madsci/iStock

CannabisNB, the provincial Crown agency tasked with selling recreational cannabis to consumers in New Brunswick, has said they are considering the privatization of all 20 stores in their province.

The organization has put out a request for proposals, otherwise known as a tender, on its website for private companies to bid.

The deadline is set for Jan. 10, 2020, and applicants will need to demonstrate experience in the sale of recreational cannabis, financial capacity to develop and sustain operations, and a viable program to combat the illegal market.

The tender will also require the winning applicants to demonstrate they can facilitate “high-quality service” through “price competitiveness” and “product diversity.”

The move comes following reports that CannabisNB lost as much as $12 million in its first twelve months. The company has yet to turn a profit.

However, members of the private sector may want to calm their excitement. The government is seeking just one private company to run all of its stores.

So while the government is looking to privatize cannabis sales in the province, it would not open up a free market system, seen flourishing in provinces like Alberta and British Columbia.

Even still, the CannabisNB brand will likely remain, and end-consumers may not notice too many differences when purchasing cannabis.

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CanadaIndustryNew Brunswick
Harrison Jordan
Harrison Jordan
Harrison Jordan is a graduate of Osgoode Hall Law School in Toronto and enjoys reading and writing about the regulatory affairs of cannabis in Canada and around the world.
View Harrison Jordan's articles

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