No cannabis vaping products, bigger cut of sales for retailers: N.L. government

The proposed changes apply only to Tier 1 licensed cannabis retailers awarded through the Newfoundland and Labrador Liquor Corporation’s request for proposals.

The changes will see:

• 12 per cent commission on the first $1 million of sales per calendar year.
• 10 per cent commission on sales between $1 million and $1.5 million per calendar year.
• Eight per cent commission on all sales above $1.5 million.

Right now, businesses get eight per cent commission on all sales. 

The higher commission rates come after government spoke with retailers about “the challenges facing the industry and future growth opportunities,” said the release. 

The NLC also announced new deals with marijuana producers, based in Canada. 

Those are:

• 7 Acres.
• Auxly/Doescann.
• Figr.
• Hexo.
• Truss Beverages.
• TerrAscend.
• The Green Organic Dutchman.

No cannabis vape products in N.L.

The provincial government says it will not allow cannabis vape products in Newfoundland and Labrador to be introduced for now. 

“There have been reports of severe lung diseases associated with vaping in both Canada and the United States,” said the government in a media release.  

“An analysis by experts in both countries has not been able to pinpoint the specific cause of this lung disease; however, the majority of cases involve vaping cannabis.”

The government said it wants more information and the results of any clinical evidence before it will consider allowing the products in the province. 

“The aim of these measures is to protect public health while also supporting local retailers,” states the media release. 

Health Minister John Haggie and Finance Minister Tom Osborne are holding a new conference Wednesday afternoon to speak about the new developments for the industry.

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