canopy growth canada farm gate, Cultivator to sell cannabis at production facility – a first in Canada

The lobby of Canopy Growth's Tweed facility in Smiths Falls, Ontario. (Photo by Justin Tang)

(This story has been updated from an earlier version.)

A licensed producer in Newfoundland has received permission to sell marijuana to consumers at its cultivation facility, an industry-first in Canada that executives hope will catch on nationwide.

Canopy Growth announced this week that consumers will be able to buy cannabis products at a Tweed store on its production site.

So far no other province has indicated it will allow farm-gate sales.

“Buying farm-gate is certainly an exciting opportunity for cultivators, especially in light of branding restrictions,” said Aaron Salz, founder of the Toronto-based Stoic Advisory consulting firm.

“It’s a great way for them to educate consumers on the product, while building brand at the same time.”

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Canopy Growth spokesman Jordan Sinclair said the outlet will offer dried flower, a variety of oils and softgel capsules, along with merchandise like hats and T-shirts.

“We’re creating a tourism draw to the town,” he said. “We want people to come and learn about the product, about the business and have a tour of the facility.

“The old saying, ‘You exit through the gift shop,’ is not lost on us.”

Canopy has lobbied the Ontario government to allow sales at its Smiths Falls headquarters but, so far, to no avail.

The trade organization representing most of Canada’s licensed producers says it’s only a matter of time before more provinces follow Newfoundland’s lead.

“We think this would be a great economic and social enabler and can even be turned into a tourism experience,” said Allan Rewak, executive director of Cannabis Canada Council.

“Many people would love to invest in this in Southern Ontario, British Columbia and Alberta to create a wine country-type of experience linked to cannabis that would include point-of-sale at production facilities.

“This becomes an anchor for an experience rather than just a store.”

Matt Lamers can be reached at mattl@mjbizdaily.com

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