5 best practices for US cannabis brands entering Canada
Since my MJBizCon panel on the above, I received many requests to recap my thoughts. With its defined regulatory framework and 38M people, there is money to be made in the Great White North for adroit and ambitious US cannabis brands. But, there is also risk.
Below are 5 pointers to help your planning and execution:
1. Measure twice, cut once
American cannabis leaders should understand that Canada is different from the US in many ways. Consumers and markets are not homogenous. A large federally-legal jurisdiction is actually 11 different markets that vary by product availability, legal consumption age and market structure. Moreover, prices and edible THC limits are often lower than what is found in the US.
2. Fit with your corporate strategy
Canada is on sale thanks to favorable exchange rates and labour costs. And who is not looking for new growth when your core markets are stalled. However, these factors alone shouldn’t be the key decision drivers. International expansion must make strategic sense for American brands from a corporate positioning, capabilities and capital allocation perspective.
3. The devil is in the details
Small things like tax treatments, licensing, distributor product registrations and employment standards can have a big financial, timing and operational impact. Do your homework and don’t cheap out when it comes to engaging with local experts.
4. Tell me who your partners are
Most US companies will initially choose to link up with a licensed partner. Your choice of a partner not to mention their (and your) collaborative mindset will play a major role in the success or failure of your initiative.
5. Expectations setting
Strong American brands don’t easily and quickly spill over into the Canadian market without clear and meaningful product differentiation and lots of hustle. Furthermore, many companies will make bold strategic moves with little honest discussion about what success looks like and when they can reasonably expect to see it. Like everything in cannabis, the journey is often more arduous and expensive than leaders want to believe.
#growth #canada #strategy #expansion #execution #US