(Bloomberg) -- Edibles and other new pot products will hit Canadian shelves a few days before Christmas but will be governed by strict rules that don’t make them too intoxicating or appeal to children, according to new federal regulations.
Canada will add a host of new formats including edibles, beverages, vape pens and topicals to its list of legal cannabis products beginning Oct. 17, the government said Friday. Companies will then have to provide 60 days’ notice of their intent to sell the new products, meaning the earliest they’ll be available on shelves is Dec. 16.
Both edibles and beverages will be limited to a maximum of 10 milligrams of THC, the intoxicating cannabis compound, per package. A maximum of 1,000 milligrams of THC will be allowed per package of extracts like vape cartridges and topicals.
Pot producers are also prohibited from selling “any cannabis product that can reasonably be considered appealing to a young person.” An official at Health Canada said products will be evaluated on a case-by-case basis but that would probably include gummy bears, depending on their color, shape, flavor and branding.
Canada legalized recreational cannabis use last fall, but only in the form of dried flower and oils. The new formats are expected to generate more demand and higher margins than dried flower.
But that’s assuming companies are able to produce the new products quickly enough. The country has been plagued by chronic supply shortages since legalization took effect and that may get worse as new items are added, according to industry players. Telsey Advisory Group estimates that Ontario, Canada’s most populous province, is currently meeting just 15% to 20% of total market demand.
Canada’s market for edibles and other alternative pot produces will eventually be worth C$2.7 billion ($2 billion) annually, but consumers should expect “missteps, delays and frustration” in the early days, Deloitte said in a report published earlier this month. Jennifer Lee, Deloitte Canada’s cannabis national leader, estimated it will be a minimum of 24 months before the industry normalizes.
In the meantime, many pot companies are stockpiling to ensure they have enough supply for the new products. However, some have complained that the regulations should have been available sooner, as the uncertainty made it difficult to prepare.
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