Canada made recreational cannabis legal in 2018 with the Cannabis Act. While that led to a lot of initial excitement, the number of regulations and taxes imposed on legal cannabis threw a wet blanket on the fire of interest.
If you want to dive in and start a cannabis edibles business in Canada, you better be prepared to meet the legal requirements. It’s not like starting a cannabis business in the United States.
Rather than get overwhelmed and walk away from the idea, get a little inspiration and support. Guess what? You’re in the perfect place.
Read this guide to learn how to start an edibles business in Canada.
Table of Contents
1. Learn the Law
If you’re thinking about an edibles business, you might think that it’s easier to start an edibles business with CBD products than with THC products.
It’s true in the U.S., but definitely not in Canada. Canadian laws treat CBD and THC the same.
There are pre-licensing requirements that you have to go through. You also need to apply for the right class of licenses.
For instance, you can apply for a microprocessor’s license, which allows you to process 600kg of cannabis per year.
2. Write a Business Plan
The business plan tells you everything about why your edibles business will succeed. You’ll research the marketplace, competition, demand, and pricing.
Estimate your startup costs and operations costs. In the financial reports, you’ll determine how to price and position your products. You’ll learn how many products you need to sell each month to make a profit.
3. Find Vendors to Work With
What does it take to succeed in the Canadian cannabis market? It takes a lot of work, but also great partnerships.
Unless you’re cultivating and processing the edibles yourself, you’re going to rely on vendors. Those vendors have to comply with Canadian laws and be reliable.
4. Create the Brand
Your brand is what differentiates your edibles business from all of the other ones in Canada. Your brand isn’t a logo, but it’s an association.
It’s what people think of when they think of your business. Some brands are about happiness, safety, or security. A well-known cannabis online brand like grasslife canada follows all the legal requirements, safety, and security before selling the products.
What is the one word you want people to think of when they think of your edibles business? That’s your brand.
Your logo, website, marketing collateral, and product labels will reflect that.
5. Market and Distribute the Products
The last step is to find retailers to sell your edibles. You could sell the products yourself, but having a broad network of retailers is beneficial, too.
Market your products and promote your brand. Use a variety of marketing methods, such as SEO and social media.
Keep in mind that cannabis advertising is heavily regulated. You may want to work with a marketing firm to assist with promotions.
Starting a Cannabis Edibles Business in Canada
There’s a lot to know about starting a cannabis edibles business in Canada. Learn the laws, surround yourself with industry experts, and have a solid business plan.
If you enjoyed learning about starting an edibles business, take a look at the Business section of this site for more business tips.