A Coast-to-Coast Tour of Cannabis Distribution Differences

Canada is a massive country with a complex tapestry of laws and regulations. These regulations shift dramatically as you cross provincial borders, and this holds true for the distribution of cannabis products as well.

Each province brings its own subtleties to the table, and understanding these nuances is crucial. From free-market models to strict government-only transactions, understanding the complexities of cannabis distribution across the country is key to expanding your brand’s reach. 

This article provides an overview of the different distribution models of each province and territory at a high level. Keep an eye out for part 2 of this series, where we’ll hear from different licensed producers across the country. They'll be sharing their insights and perspectives on the current distribution frameworks that are in play.

Alberta

Cannabis Regulator: Alberta Gaming, Liquor, and Cannabis Commission (AGLC)

Provincial Distributor: Alberta Gaming, Liquor, and Cannabis Commission (AGLC)

Retail Stores Types: Only private, licensed retail stores and the AGLC online.

Farmgate: Although there is no formal farmgate program in Alberta, cannabis retail stores are allowed to operate adjacent to a licensed production facility, but must operate as a separate entity. (source linked here)

Notable details: The AGLC requires their own costly version of security clearance and there are significant financial barriers when it comes to distributing through the AGLC. There are a fair amount of Alberta-based companies that only distribute outside of their home province because of the costs of working with the AGLC. 

British Columbia

Cannabis Regulator: British Columbia Liquor and Cannabis Regulation Branch (LCRB)

Provincial Distributor: The British Columbia Liquor Distribution Branch (BCLDB) 

Retail Stores Types: Both government-operated stores and private, licensed retail stores.

Farmgate: Yes, there is Farmgate. (operated by the LCRB)

Notable details: There is a Direct Delivery program, but it is generally financially inaccessible to most small producers.

Manitoba

Cannabis Regulator: Liquor, Gaming, and Cannabis Authority of Manitoba (LGCA) 

Provincial Distributor: Manitoba Liquor & Lotteries Corporation (MBLL)

Retail Stores Types: Private, licensed retail stores only.

Farmgate: No.

Notable details: LPs provide direct delivery to retail stores. However, the MBLL still manages the transaction by officially buying the product from LPs and invoicing the retail stores for their order. 

New Brunswick 

Cannabis Regulator: New Brunswick Liquor Corporation, operating as Alcool NB Liquor (ANBL) 

Provincial Distributor: Cannabis NB

Retail Stores Types: Both government-operated stores and private, licensed retail stores.

Farmgate: Yes, there is Farmgate.

Notable details: Private retailers have only been operating in NB since June 2023. (source linked here)

Newfoundland and Labrador

Cannabis Regulator: Cannabis NL, a division of the Newfoundland Labrador Liquor Corporation (NLC)

Provincial Distributor: Newfoundland Labrador Liquor Corporation (NLC)

Retail Stores Types: Both government-operated stores and private, licensed retail stores.

Farmgate:  Newfoundland and Labrador do allow some producers to operate their own retail outlets, although it’s not specifically called “farmgate”. (source linked here)

Nova Scotia

Cannabis Regulator: Nova Scotia Liquor Corporation (NSLC)

Provincial Distributor: Nova Scotia Liquor Corporation (NSLC)

Retail Stores Types: Both government-operated and private, licensed retail stores.

Farmgate: No.

Nunavut

Cannabis Regulator: Nunavut Liquor and Cannabis Commission (NULC)

Provincial Distributor: Nunavut Liquor and Cannabis Commission (NULC)

Retail Stores Types: Only government-operated retail stores.

Farmgate: No.

Ontario

Cannabis Regulator: Alcohol and Gaming Commission of Ontario (AGCO)

Provincial Distributor: The Ontario Cannabis Store (OCS)

Retail Stores Types: Private, licensed retail stores only.

Farmgate: There is a Farmgate program in Ontario, but while the product may be sold directly to the customer from the production facility, a producer must order all products from the OCS first. (source linked here)

Notable details: In addition to its conventional ordering system, Ontario also uses a Flow-Through model. It is described as: “... an expanded catalogue of items that are not stored in the OCS Distribution Centre. These items will ship from the Licensed Producer to the OCS warehouse, where they will be packaged and shipped to the Retailer. Flow-Through enables both Retailers and Licensed Producers to differentiate themselves by offering unique, seasonal, or niche products.” (source linked here)

Quebec

Cannabis Regulator: Société québécoise du cannabis (SQDC)

Provincial Distributor: Société québécoise du cannabis (SQDC)

Retail Stores Types: Only government-operated retail stores.

Farmgate: No. 

Notable details: Quebec prioritizes the distribution of Quebec-made products over out-of-province companies. Breaking into the market can be challenging for that reason. Quebec has arguably more stigma against cannabis than other provinces, at least according to Quebecois folks in the cannabis industry.  

Prince Edward Island

Cannabis Regulator: Prince Edward Island Cannabis Management Corporation (PEICMC)

Provincial Distributor: Prince Edward Island Cannabis Management Corporation (PEICMC)

Retail Stores Types: Both government-operated and private, licensed retail stores.

Farmgate: No.

Saskatchewan

Cannabis Regulator: Saskatchewan Liquor and Gaming Authority (SLGA) 

Provincial Distributor: None; private wholesale only.

Retail Stores Types: Private, licensed retail stores only.

Farmgate: Because Saskatchewan does not distinguish between different types of cannabis retail outlets, farmgate also exists as a retail option although it’s not formally labeled as that (source linked here)

Notable details: Saskatchewan has a free-market approach to cannabis distribution. Producers, retailers, and wholesalers directly communicate with each other without the government acting as a middleman. There is no government monopoly on distribution.

• This means there is no main distributor to order from. Individual relationships need to be established in order to secure a transfer of product.
• Wholesalers have emerged in SK to provide a distributor service so that you don’t have to develop relationships with every single store in the province.

Yukon

Cannabis Regulator: Yukon Liquor Corporation (YLC)

Provincial Distributor: Yukon Liquor Corporation (YLC)

Retail Stores Types: Both government-operated and private, licensed retail stores.

Farmgate: No.

Whether it's navigating financial barriers in BC and Alberta or grappling with a stigma-driven market in Quebec, understanding these distribution dynamics is key to thriving in the Canadian cannabis landscape. Don't forget to stay tuned for the upcoming second part of this series, where we'll dive even deeper by chatting with licensed producers from across the nation and getting their insights on the current distribution models that shape the industry. Until then, keep exploring the diverse ways cannabis finds its way into the hands of consumers from the West Coast to the East.

This article was written in tandem with Jessica B.