Cannabis lawyer Whitney Abrams discusses the six licensed producers who have signed letters of intent to supply the SAQ with cannabis for the recreational market.
Six Licensed Producers will Supply Cannabis to Quebec’s SAQ
Originally published on Canada Cannabis Legal by Whitney Abrams on February 14, 2018.
As we learned in November, Quebec’s Societe des Alcools du Quebec (“SAQ”) will be responsible for the distribution of cannabis to its subsidiary, the Societe Quebecoise du Cannabis, which will conduct retail sales in the province.
This morning, six of Canada’s federally licensed producers – Hydropothecary, Canopy Growth, Aphria, MedReleaf, Aurora, and Tilray – announced that they have signed letters of intent to supply the SAQ with cannabis for the recreational market.
As expected, Hydropothecary, which is based in Quebec, announced that its letter of intent mandated that the company will provide 20,000 kilograms of cannabis in the first year of recreational cannabis. The LOI “covers the full range of the company’s products and brands, from flower to oil spray to powder.” This marks the largest supply deal made to date.
Canopy Growth announced that it will provide 12,000 kilograms of high-quality cannabis per year. Canopy’s announcement cites its ties to Quebec with its acquisition of Vert Cannabis and recently, Vert Mirabel. The release also states: “this announcement marks Canopy Growth’s fourth and largest supply agreement to-date, following previous agreements with the Provinces of New Brunswick, Newfoundland and Labrador, and Prince Edward Island. Three provinces have now announced supply arrangements with Licensed Producers, all of which include Canopy Growth. The Company now has more supply commitments than any other Licensed Producer in the country.”
Aphria announced that it too will provide up to 12,000 kilograms of branded cannabis products in the first year of the agreement. The products to be distributed to the SAQ will include cannabis oils, other derivatives, and dried flower grown in both Ontario and British Columbia.
MedReleaf’s announcement indicated that under its LOI, it will supply a minimum of 8,000 kilograms per year.
Aurora’s announcement states that it will provide a minimum of 5,000 kilograms of cannabis for the first year of Quebec’s recreational market. Supply quantities are to be assessed on a monthly basis and no maximum has been set at this time. Aurora’s product will be supplied on a monthly basis, and most will be sourced from its facilities in Quebec. Similarly, Tilray, a producer based in British Columbia, will also provide 5,000 kilograms of cannabis per year under an LOI.