Alberta stores prepare to sell cannabis online to go private in March

Alberta is changing the way cannabis can be sold online starting March 8 – and some stores are scrambling to prepare.

A legal change, passed by the legislature last year, will see Alberta Gaming, Liquor and Cannabis (AGLC) shut down the online ordering section of its website. This will open the online marketplace to private sellers.

High Tide, which operates 58 Canna Cabana stores in Alberta and already sells cannabis online in Ontario, Manitoba and Saskatchewan, wants to expand its online reach in the province.

“We’ve done a pretty good job of being able to handle online sales and home delivery in a safe and secure way,” said Andy Palalas, chief revenue officer. “It’s a big part of our strategy to fight the illicit market.”

The company is trying to work out details with the AGLC to be ready to sell online and deliver from March 8.

AGLC will still provide cannabis products for sale. Anyone who wants to sell online in the province must already have a physical retail store. There are currently 744 authorized stores in Alberta.

Andy Palalas is Chief Revenue Officer for High Tide, which operates Canna Cabana and META cannabis stores across Canada. (Sent by High Tide)

Businesses must use their own couriers, or they can use Canada Post or a courier service.

Prospective online sellers will need to remove some bureaucratic hurdles and adhere to AGLC standards. A store must apply to extend its license to online sales, and AGLC inspectors must approve any website before it goes live, according to spokeswoman Karin Campbell.

Websites will also need a “robust” way to verify a buyer’s age, to make sure children aren’t buying cannabis online, she said. Buyers who appear to be under the age of 25 will also be required to show identification when their delivery arrives.

The AGLC has not yet approved any of the new private websites selling in Alberta, Campbell said.

It’s too early to say how many businesses will be ready to sell online from March 8, she said, but “many” said they would be.

Regulatory hurdles could delay some sales

Fire & Flower, which operates 42 cannabis stores in Alberta, likely won’t be ready by that date.

“We’re on the wire in terms of timing, and based on the responses I’ve received so far, I’m not optimistic that March 8 will be the day we first deliver to Alberta,” said Matthew Anderson, vice president of legal, business and compliance at Fire & Flower.

Anderson is struggling to get clarification from the AGLC on some regulatory issues, he added.

Alberta’s proof-of-identity requirements for online sales are stricter than in other Canadian jurisdictions, Anderson said.

This, he said, is a problem for Fire & Flower because it wants to use software that can be adapted to the rules of other provinces or countries.

The other snag is delivery. Fire & Flower acquired a cannabis delivery company called Pineapple Express, and it’s unclear whether their current business deal would meet delivery requirements, he said.

Matt Anderson is Vice President, Legal, Business Affairs and Compliance at Fire and Flower in Edmonton. (Submitted by Fire and Flower)

Meanwhile, Albertans who live in more remote communities may also have difficulty finding products online at first.

Palalas of High Tide says it will be too expensive for the company to deliver far from its stores.

High Tide’s goal is to deliver orders faster, within hours in major cities.

In High Level, 740 kilometers north of Edmonton, a cannabis store owner says she is not interested in selling online in Alberta.

“Everyone is going to,” said Catherine Hill, who owns two stores called It’s 420 Somewhere — one in High Level, another in Hay River, Northwest Territories.

It’s easy to enter the market online, but the market will quickly become saturated in Alberta, even in the most remote locations, she said.

For now, Hill’s is focused on creating a pleasant in-store experience for shoppers.

“A lot of people also love to come in and talk to their local manager.”