Leafythings, a cannabis directory platform and mobile application recently proposed a supplementary independent cannabis supply chain in Ontario. Leafythings' platform is a digital aggregation of independent and regulated brands and retailers across the cannabis retail market.
Leafythings builds all of its retailers and brands using Google (NASDAQ:GOOGL) and open source solutions. In Canada, independent cannabis supply chains represent an approximately $3 billion market - equal to the size of the regulated supply chain.
Due to the size of the cannabis market and feedback received from Leafythings and other industry leaders, the company has a deep understanding of the Canadian cannabis consumer, as well as existing operational gaps that can potentially translate into widespread industry issues.
"Local Canadian cannabis growers and farmers have made up the independent supply chain for 40+ years. They have worked to prove the medical and recreational benefits of cannabis through evidence-based research and development methods,” said Nima Derak of Leafythings. "These individuals have worked tirelessly with legislators to advocate for cannabis businesses and consumers, and to facilitate the legalization of consumption and possession of marijuana. They are members of the public, they are Canadians, and they have been neglected and removed from the current process."
"Over-regulation and financial barriers coupled with monopolization of the cannabis supply chain in Ontario are causing major distress to independent Canadian growers and retailers and are locking them out from operating successfully," Derak continued.
Cannabis’ Delivery Issues
“The role of Government should be held to regulating cannabis, not creating an unnecessary role as the distribution middle man. Delivery is a basic function of today's society. Could you imagine if the liquor store stopped delivering to its retail partners? This doesn't happen,” Derak said.
“It never happens within the logistics of our independent distributed food supply chain. It doesn't happen to tobacco products at the thousands of convenience stores and it doesn't happen in any other industry in Canada."
Last week, the Ontario Cannabis Store was unable to process or deliver cannabis to dispensaries and customers due to a cyberattack on one of its logistic partners.
Leafythings stated that they wish to work with partners in cannabis at the OCS, to create a better and improved model after more than three years of cannabis legalization.
"It is not in the benefit of the Canadian taxpayer to take an industry that already existed, ignore it, and put a new system in place that ignores the other 50% of consumers. Let's call it as it is: the OCS as the sole monopoly distributor and online store has acted only as another broken and redundant arm of the government," Derak added.
"Access to cannabis is very important to millions of people across Canada. With the recent service disruption experienced by the OCS here in Ontario, so many will have that access interrupted," stated a local cannabis consumer Kunal Vora.
"The $3 billion independent cannabis industry and the $3 billion regulated industry have to reconcile. It is absolutely insane to continue on the path we are on. We are making a clear and logical proposal to the Ontario Cannabis Store," the company stated.
"The regulation and cannabis supply chains within Ontario can be managed exactly like food is. There are no mandated organic food certification companies within the food supply chain, but there are third parties who follow the principles of the Canadian Organic Standards, to certify organic food. We can create transparent Independent Cannabis Standards that support Health Canada's objectives."
In addition, Derak said that the company proposes “the creation of an agency similar to the Canadian Food Inspection Agency. This agency's role would be to maintain samples and certificates of analysis from anyone who selling into the independent supply chain for the purposes of product recalls."
Leafythings added that they propose an approach for an economic engine such as Ontario to help alleviate the burdens of supply chain management and support the legalization's objectives.
Finally, the company's mission is to help bridge the gap between consumers and businesses while supporting public health initiatives.
Photo: Courtesy of Leafythings Canada