Alberta online cannabis sales for the private market only

On March 8, 2022, Alberta Gaming, Liquor, and Cannabis (AGLC) closed Alberta’s online cannabis sales section of its website. When you visit their website, this is the message that appears:

“Thank you for stopping by. Alberta Cannabis no longer offers online sales. Alberta has over 700 licensed cannabis retailers, some offering online ordering, which will continue to offer consumers a choice of legal products.”

All online cannabis sales in Alberta are now required to have personal retail suppliers. Companies wishing to sell online are responsible for obtaining confirmation from AGLC’s inspection department. This includes ensuring that age checks are in place on their website before making any sales. In addition, licensed stores are responsible for arranging delivery. They can offer shipping options through Canada Post, an approved courier service, or arrange their own delivery. If they choose to use their own delivery drivers, drivers will need SellSafe certification to verify the recipient’s age.

Challenges for rural communities

At the time of writing, 101 out of 756 licensed cannabis dealers in Alberta are currently authorized to sell online. That’s just 13 percent of the retail industry, which handles all online sales for Alberta. And there’s no guarantee these 101 retail stores will offer shipping options like AGLC did. It is up to the shops whether they offer local delivery, postal delivery or both.

This market crisis has presented challenges to rural communities. It’s not a problem for people in Edmonton or Calgary. But in the remote northern parts of the province, running to a store or arranging local delivery is not an option. With many businesses currently only offering local delivery, this has kept many rural Albertans dry. Only time will tell if this decision leaves an opening for the illicit market.

Retailers wanted a private market but weren’t ready

Many retailers have been pushing the government to be able to sell online and have a full share of the market. Selling online allows stores to reach a wider audience. It also allows customers to order a full line of products online instead of just being able to buy cannabis through AGLC. The province’s online sales accounted for only a small part of the market at 1.5 percent. However, there are tremendous opportunities with local delivery and more products online. It will be interesting to see what percentage of the market will be online sales in a few years.

Although Alberta retailers wanted to privatize online sales, many were not yet ready for the March 8, 2022 launch. The small number of participating stores is mainly due to the restrictions in place. Retailers are calling for the ban on third-party supplies to be lifted; and further explanation of the strict age verification rules. Over time, as others test the waters, we’re sure to see more players in Alberta’s online cannabis market.

Cannabis at your door

Despite the current challenges, this move to private online selling in Alberta is exciting. Already a leader in privatized spirits sales, Alberta is once again leading the way with cannabis sales. This move to open up the market will offer Albertans greater choice and a potential cost reduction. The other great benefit is delivery straight to your home.