Thrive Cannabis’s on-location storefront prepares to be Ontario’s first farm-gate store, set to open this month in Simcoe, Ontario Tuesday, April 13, 2021. THE CANADIAN PRESS/Tara Walton

Thrive Cannabis’s on-location storefront prepares to be Ontario’s first farm-gate store, set to open this month in Simcoe, Ontario Tuesday, April 13, 2021. THE CANADIAN PRESS/Tara Walton

Farm-gate cannabis sales allow customers to buy pot straight from the farm

B.C. is on track for a 2022 launch for farm-gate cannabis

When customers roll up to Thrive Cannabis’ 184-acre farm in Simcoe. Ont, they’ll find three shipping containers fashioned into a pot shop and a colourful crew making history.

That crew is led by Thrive’s vice president of business development and ethos Bubba Nicholson, who jokes he has the facial hair to match his company’s Greybeard brand, and founder Art Bluhm, who is as spirited about pot as he is about the brisket sandwiches he sometimes surprises farm visitors with.

“We’re not just some boardroom brand that’s out there,” said Nicholson, over a video call made from his parked car during a business trip to Vancouver. “We call it a team of misfits.”

But until recently few knew the misfits behind the brand or how their products were made. That all changed on April 21, when Thrive became Ontario’s first licensed producer to sell cannabis products at the site where they’re made.

The arrangement, which is being piloted or considered by several provinces, is called farm-gate cannabis because it involves taking pot from “seed-to-sale” all at one site and uniting customers with people like Nicholson and Bluhm, who were deeply involved in the journey.

According to the Saskatchewan Liquor and Gaming Authority, farm-gate sales are allowed in the province, but there are currently no retail stores located at production sites.

B.C. is on track for a 2022 launch and several companies are hoping to join Thrive by offering farm-gate in Ontario later this year.

In order to begin farm-gate sales in Ontario, companies must have a retail operator license, a retail store authorization for a proposed location and pass several inspections.

The Alcohol and Gaming Commission of Ontario said in mid-April that it had received 14 retail operator license applications for farm-gate sales and approved six from Thrive, Tweed Inc., Dykstra Greenhouses, Medz Cannabis Inc., Muskoka Grown Ltd. and Level Up Infusions.

It had received nine retail store applications for farm-gate and has so far issued approvals to Thrive and Medz.

Canopy Growth Corp., whose Tweed Inc. brand wanted to start farm-gate at its Smiths Falls, Ont. factory, said it has put its plan on hold until later this year.

However, many are still forging ahead because they believe farm-gate programs help consumers get their hands on fresher cannabis faster, especially in rural areas where the closest pot shop can be a considerable distance away.

With farm-gate, shoppers will learn how their favourite products are grown and processed directly from the people who made them, building relationships, trust, transparency and brand recognition.

The opportunity to build brand loyalty and educate customers confused about products is a huge opportunity for pot businesses, said Denis Gertler, senior regulatory adviser at consulting firm CannDelta.

These businesses have been hindered by laws that heavily restrict their marketing opportunities and the COVID-19 pandemic, which has forced many stores to operate through curbside pickup with few chances for brands to meet shoppers.

A June 2020 survey of 3,000 Canadian cannabis consumers from the Brightfield Group research firm suggested these factors have weighed on brand recognition. The survey found most pot brands were only recognized by between one and 15 per cent of those questioned and no brand had a recognition rate above 41 per cent.

Farm-gate can tackle this problem because “it’s an opportunity for a savvy company to build a brand” like craft brewers and distillers have, but the model is not without challenges, Gertler said.

“Distilleries are often in these kinds of areas too and many of them have factory stores, which are essentially farm-gate, but there isn’t the same kind of stigma around alcohol, as there is around cannabis,” he said.

However, Robyn Rabinovich, Thrive’s vice-president of strategic initiatives, is confident the company can build a following with farm-gate similar to what wineries experience.

“They come home with a case and they are the biggest champions of those brands because of that experience that they got through learning the process,” she said.

“We’re really excited to have people wear that Greybeard badge of honour.”

Customers who visit will get access to 12 Thrive products and about 10 from other brands, though they’ll have to settle for buying them through curbside pickup until the pandemic subsides.

Williams Lake First Nation (WFLN) is watching the situation closely.

The community located six hours outside Vancouver started building a growing facility and farm-gate store under the Sugar Cane Cannabis name earlier this year, after it signed an agreement with the B.C. government to allow farm-gate sales of its craft pot products.

Getting to that point involved negotiations between the solicitor general, who was resistant because of the industry’s nascence, and WFLN, which wanted Indigenous rights to be respected, recalled Kirk Dressler, the community’s director of legal and corporate services.

Eventually, the province softened when it saw how serious WFLN was about farm-gate.

“I think that they saw it as a real opportunity, a way for people who are operating smaller operations, who want to transition into the white marketto make it viable,” Dressler said.

WFLN recently submitted its Health Canada applications for its growing facility and hopes to open it by July, but the retail store may not ready until several months after, Dressler said.

Chief Willie Sellers is already anticipating it will create jobs, boost tourism and share a secret: Sugar Cane is experimenting with music to enhance the growing process.

He hopes visitors will delight in tidbits like that and feel a deeper connection between the community, its cannabis and the process it took to get farm-gate going.

“Everybody that comes into our store is going to be able to hear about this journey that we went on and how we are growing our cannabis,” he said.

“It’s exciting and it’s fun to think about this cutting edge stuff.”

Tara Deschamps, The Canadian Press

cannabis

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Statue of Lady Justice at B.C. Supreme Court in New Westminster. (File photo: Tom Zytaruk)
Delta Patriots Cricket Club takes Surrey, other clubs to court over Cricket BC voting

‘At issue is the propriety or legality of the voting procedures within Cricket BC,’ Justice John Harvey noted

Surrey Eagles forward Rocco La Cara battles with Coquitlam Express forward Dante Berrettoni during a game earlier this season. (Damon James photo)
Surrey Eagles wrap up BCHL ‘pod’ season with win over Coquitlam

South Surrey-based junior ‘A’ hockey team finishes with 17-2-1 record

A grave marker at the old pet cemetery in Newton, from video posted to the Youtube channel Exit Thru the Gift Shop.
SURREY NOW & THEN: Newton’s abandoned pet cemetery now surrounded by houses

VIDEO: Former B.C. Pet Cemetery might also be a burial site for human remains

Surrey RCMP detachment in Newton. (File photo)
Surrey RCMP say cryptocurrency fraud on the rise

They’ve received 59 reports of cryptocurrency fraud totaling $612,748 since January

A bullet hole is seen in the windshield of an RCMP vehicle approximately 4 km from Vancouver International Airport after a one person was killed during a shooting outside the international departures terminal at the airport, in Richmond, B.C., Sunday, May 9, 2021. THE CANADIAN PRESS/Darryl Dyck
Homicide team IDs man in fatal YVR shooting as police grapple with spate of gang violence

Man, 20, charged in separate fatal shooting Burnaby over the weekend

The Canadian Forces Snowbirds are in the Comox Valley for their annual spring training. Photo by Erin Haluschak
Suspected bird strike on Snowbirds plane during training in B.C.

Pilot followed protocols and landed the aircraft on the ground without any problems

BCIT. (Wikimedia Commons)
BCIT apologizes after employee’s ‘offensive and hurtful’ email leaked to Métis Nation

BCIT says employee’s conduct has been investigated and addressed

An adult male yellow-breasted chat is shown in this undatd photograph on lands protected in collaboration between the En’owkin Centre and Penticton Indian Band with support through ECCC. The rescue from near extinction for a little yellow bird hinges on the wild rose in British Columbia’s Okanagan Valley, a researcher says. THE CANADIAN PRESS/HO, A. Michael Bezener/ En’owkin Centre 2020 *MANDATORY CREDIT*
Rare yellow birds need wild roses to survive in British Columbia: researcher

The importance of local wild roses emerged over a nearly 20-year experiment

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

RCMP officers search around rows of luggage carts as screens block off an area of the sidewalk after a shooting outside the international departures terminal at Vancouver International Airport, in Richmond, B.C., Sunday, May 9, 2021. THE CANADIAN PRESS/Darryl Dyck
Police say gang conflict in Metro Vancouver may be behind shooting death at airport

Police said this generation of gangsters is taking things to new level and have no regard for community safety

RCMP are looking for information on an alleged shooting attempt near an elementary school in Smithers March 10. (Phil McLachlan/Capital News/Stock)
UPDATE: Man killed in brazen daylight shooting at Vancouver airport

Details about the police incident are still unknown

Pieces of nephrite jade are shown at a mine site in northwestern B.C. in July 2019. THE CANADIAN PRESS/HO-Tahltan Central Government MANDATORY CREDIT
Indigenous nation opposes jade mining in northwestern B.C.

B.C.’s Mines Act requires operators to prepare a plan to protect cultural heritage resources

Vancouver Giants celebrated a Justin Sourdif goal Saturday night in Kamloops. Giants dropped a 3-1 decision to Kamloops, a game that clinched the 2020-21 B.C. Division banner for the Blazers. (Allen Douglas/special to Langley Advance Times)
VIDEO: Vancouver Giants drop 3-1 decision to Kamloops

Third-period rally should have come sooner, said coach of Langley-based team

Most Read