Province Decides Not To Sell Cannabis NB

Cannabis NB will not be sold to a single private operator after all.

The province announced Friday that it had discontinued the request for proposal (RFP) process.

“Discussions with the top-ranked proponent have concluded and our government has decided that the best approach for New Brunswickers is to continue with the Cannabis NB model that is now in place,” Premier Blaine Higgs said in a statement.

The announcement comes amid growing calls for the provincial government to halt the sale process.

A First Nations leader and 10 New Brunswick-based cannabis businesses recently sent a letter to the premier. They feared Cannabis NB would end up in the hands of a single outside company that will stifle growth of the local industry.

The Cities of New Brunswick Association also sent a letter to the premier, arguing that the main reasons for the government’s initial decision to explore privatization are no longer relevant due to the rise in product selection, resolved supply shortages, and higher profits with financial sustainability anticipated.

After being plagued by multimillion-dollar quarterly losses since its opening in October 2018, Cannabis NB has recorded four straight profitable quarters.

“While we were pleased with the level of interest and engagement from the private sector, Cannabis NB’s performance over the past few months, as well as careful consideration of the social and economic implications of the retail model, has given us confidence that New Brunswick taxpayers and consumers can be well served through continued improvements within the current model,” Finance Minister Ernie Steeves said in the statement.

The RFP for a single private operator received eight responses by the Jan. 10, 2020, deadline.

Provincial officials said no other details of the short-listed proponents or their proposals will be released to protect the confidentiality of the process.

In a statement, Cannabis NB said they are pleased to see the government chose not to privatize the distribution of cannabis in the province.

“Cannabis NB has seen strong growth quarter over quarter and as the legal industry continues to mature, we are confident that will continue and excited about the opportunities it presents,” said the statement.

The statement goes on to say that they can look to the future and continue to improve the customer experience, grow the business and explore opportunities that continue to benefit the province.

With files from Liam Floyd of Huddle, an Acadia Broadcasting content partner.