Cannabis

Government appoints the LDB as wholesale distributor of cannabis


The provincial government has announced the LDB will be the sole wholesale distributor of non-medical cannabis in British Columbia. The government is still considering its options related to the retail of cannabis, but has indicated they anticipate establishing a retail model that includes both public and private stores.

At this point, it is not confirmed whether the retail model would involve liquor and cannabis sales from the same retail outlets – we will have more details in the early 2018.

Having LDB-run wholesale distribution will help support the government’s key priorities of protecting children and youth, prioritizing health and safety, and keeping the criminal element out of cannabis.

Q+As

  1. Why has government appointed the LDB to be the wholesale distributor of cannabis?
    The LDB has a proven track record in managing a safe, regulated supply chain for liquor. Having LDB-run wholesale distribution will help to support government’s key priorities of protecting children and youth, ensuring health and safety standards, and keeping the criminal element out of cannabis.


  2. What is the difference between wholesale distribution and retail?
    Wholesale distribution is the process by which goods, such as liquor, are supplied to retailers that sell to consumers. Retail is the process whereby those goods are then sold directly to consumers. Government has not yet confirmed whether the retail model will involve liquor and cannabis sales from the same retail outlets.


  3. Will the distribution of cannabis be a separate area of business from liquor?
    Yes. In becoming the sole distributor and wholesaler of non-medical cannabis in the province of British Columbia, the LDB will be creating a separate business operation for cannabis.


  4. Will the LDB acquire a new facility for cannabis distribution?
    The LDB intends to set up a separate warehouse for cannabis distribution. Further information will be shared as it becomes available.


  5. What will the mark-up/tax on cannabis be?
    The mark-up/taxation for cannabis will be determined by the provincial government, in alignment with the federal government’s requirements. We will provide more information as it becomes available.


  6. Other provinces are building brick-and-mortar cannabis stores. Will the LDB be doing the same in BC? Or will cannabis be sold in BC Liquor Stores?
    At this point, we don’t have information beyond government’s indication of a private/public hybrid retail model. We will have more details in the new year.


For information from the federal government, please visit Health Canada’s website.
If you are an LDB supplier or wholesale customer, please visit our wholesale website.
If you have additional questions, please e-mail cannabis@bcldb.com.