Whitehorse Daily Star

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Wade Istchenko

Cannabis store has taken in $200,000-plus

Exactly a week after the opening of the Yukon government-run retail and online cannabis store, the government was subject to criticism for offering online sales with what the Yukon Party calls too-high shipping prices.

By Whitehorse Star on October 26, 2018

Exactly a week after the opening of the Yukon government-run retail and online cannabis store, the government was subject to criticism for offering online sales with what the Yukon Party calls too-high shipping prices.

That’s after the Yukon Party’s Wade Istchenko took aim at the government’s strategy, once again expressing dissent with the Yukon Liberals’ decision to regulate the store. He also suggested the $12 that will be charged for online orders was too high.

The opposition’s criticisms stem from a CKRW item that saw a reporter place an order for the cheapest pre-rolled joint of cannabis, listed at $15.94 (also the cheapest the Star could find as of press time today, provided by Canna Farms).

According to Yukon Liquor Corp. (YLC) stats, the pre-rolled products have been the most popular, with Yukoners more likely to buy products in person rather than online.

For example: between Oct. 17 to Oct. 25, the retail store saw sales of just over $200,000, while the online store sold more than $16,000.

Also as of Oct. 25, the retail site saw more than 4,000 visitors and the YLC turned away about 50 people. Total online visitors amounted to 3,404.

As CKRW’s Tim Kucharuk noted in his Oct. 24 report, the shipping for his order amounted to about $12, just shy of the price of the joint itself by about $4.

That was to have it shipped from the Cannabis Yukon retail store at Industrial and Quartz roads to the radio station’s Fourth Avenue at Main Street office.

Noting that both sites are in the city’s downtown area, Istchenko said it was too high for consumers but also took too long (five days).

“Imagine how long it will take to have it shipped to Beaver Creek, Dawson City or Mayo,” he said in the legislature Wednesday, noting that may also have implications for illegal activity.

“Who is going to switch away from the black market if you have to wait so long and pay so much in shopping?”

Meanwhile, YLC spokesperson Scott Westerlaken confirmed Thursday afternoon that the $12 shipping fee was a flat rate that will be applied to all online orders.

That means that even if you order the cheapest product online (which YLC president Matt King explained last week could eventually go as low as $6.17 per gram), there will still be that standard fee even if you were to order a premium more expensive product.

It also means that the fee would be the same regardless of whether you were 20 kilometres away from the site or 200 kilometres – so every community would get the same fee for shipping.

Istchenko and his colleagues in the party continued to press Premier Sandy Silver in committee discussions Thursday, asking if 100 per cent of the $12 went directly to Canada Post.

Suspecting that the question was implying whether that means the government was keeping any revenue from the postage cost, the premier assured that was not the case.

“A private sector is still going to have to figure out shipping as well,” Silver added.

The minister responsible for the YLC, John Streicker, noted earlier that within the first week of about $160,000 in sales, Yukoners tended to lean toward the more premium products.

While that figure was for the store itself and tracked from Oct. 17 to Oct. 21 (a Wednesday to a Sunday), the total sales for both retail and online as of yesterday was about $234,000.

“The price range for a gram of cannabis at the new store range from $8 to just shy of $20,” Streicker said, pointing out to Istchenko that the $16 joint was in fact not the cheapest product.

“There is a product that is closer to the street price across the country, but they are providing a range of products because we do want to displace the illicit market,” he continued.

While the minister has heard of deliveries that lasted five days, others have taken only two. “I will work with our partners to try to make sure that the delivery system is as fast as possible.”

The real shipping of packages to communities is about $14 to $15, while in Whitehorse it sits between $10 and $11. But the $12 flat rate is “to not create a barrier between rural and urban,” Silver explained.

The YLC echoed these statements, explaining that the standard fee covered a portion of the Canada Post expedited parcel fee – which includes costs for the proof of age requirement.

The YLC also noted that all packaging must be child- and tamper-resistant, while still preventing moisture and contamination.

“We are currently looking into smaller shipping package options to improve our services to our customers, and would adjust shipping rates accordingly where possible.”

It pointed out that it’s unusual for somebody to order one-gram package size online as the typical amount spent per e-transaction is about seven grams or $130 (minus the $12 fee).

Wondering if the prices were set the way they were to pay for government wages and renovations costs, Istchenko added the packaging the reporter received was emblematic of a “wasteful strategy.”

As recently as mid-October, Streicker said the government has pegged the renovation and improvements to the store at about $400,000.

Addressing the packaging concerns, the minister suggested that his hands were tied, as it is “as per regulations from the federal government.

“I will have to work with the regulations that are set there by the federal government, and so would the private sector, by the way.”

That joint came in a six-inch by four-inch by four-inch box, Istchenko later explained in committee, to which Silver responded his government is also concerned about the shipping.

In particular, the “extra amounts of plastics that are being used.

“It is a big issue.”

The premier continued that as it was part of Ottawa’s regulations, he hoped to speak directly to finance ministers and at the premiers’ meeting about packaging.

The next confirmed Council of the Federation meeting is scheduled for July 2019 in Saskatchewan.

Comments (16)

Up 1 Down 0

Juniper Jackson on Nov 2, 2018 at 3:33 am

200K.. that's a lot of money.. is welfare paying for weed now as well as cigarettes and booze? So many people in the line ups, also at the food bank..It's not that people don't have money I guess.. and lots of it apparently.. it's where their priority spending is..200K on dope.. I would not have ever guessed there would be so many stoners in the Territory.

Up 5 Down 1

zelmo on Oct 31, 2018 at 4:39 pm

Glad I am over drugs LOL.

Up 8 Down 7

Woodcutter on Oct 31, 2018 at 1:07 pm

Poor Harvey - no lead in the pencil and no new come backs. Not even a passing grade on the attempted insult, you probably clog the drain on your tub with the long locks you have so much of your identity attached to. Do you look in the mirror lots? Your arguing with someone that's doesn't own a comb, I bet you have one in your man purse?

Up 3 Down 8

Harvey on Oct 31, 2018 at 6:45 am

Reply to woodcutter: No problem here and I'll have to take you at your word but as far as wood cutting goes I could probably beat you there too as you don't seem to cut much wood. Your always bawling about something on here. Get a toupee so you look better cutting wood when you do it.

Up 9 Down 5

Woodcutter on Oct 30, 2018 at 12:35 pm

@Harvey

us bald guys are bald because we produce excess testosterone, meaning we don't need Viagra, however if your old guy with good hair, I laugh at you, because with out medical intervention, your pretty much just for decoration.

Up 2 Down 15

Harvey on Oct 30, 2018 at 9:06 am

Are the male opposition members having some kind of shiny head competition? I can't read these articles when they put these members pictures up without getting on my cheap sun glasses.

Up 12 Down 4

Woodcutter on Oct 29, 2018 at 5:16 pm

@ Grouch
you can bet the black market dealer makes way more then the YG wage slave even with all the union perks as you call it. Their in it for the money, not because they can't get a job. It's like the scammers advertise "work part time from home, and earn $1000's a week.

Trust the gov to screw this up royally.

Up 13 Down 2

Groucho d'North on Oct 29, 2018 at 4:00 pm

Bring on the pot price war. Like when supermarkets jostle for market position, the consumer benefits the most. I doubt very much that government outlets can reduce their retail prices without having to pull money from the tax-payer coffers to support their overhead. How low can they go?
Government has an additional burden the illicit dealers do not- how to deal with litigation for product-induced problems or bad things happening to children. That’s why gov-pot is sold in a childproof plastic container, which is probably single-use, It's so they can avoid any litigation that might come their way. The street dealer sells theirs in a Zip-Lock bag like has been done for decades. Big cost difference in the packaging and also in the wages the street dealer makes vs the benefits-rich government employee with a union scale pay cheque.
Location, location, location comes with security, security, security, and you can bet that’s not cheap either. I wonder how long government will take to share what their P&L is on their cannabis enterprise say for the first quarter? They are not going to get rich or even displace the illegal sale of cannabis. I read in some parts of the nation, the street dealers are seeing a surge in business due to governments' inability to meet marketplace demands.

Up 21 Down 10

Woodcutter on Oct 29, 2018 at 11:36 am

lol.. How quick the world has shifted and so the Yukon Party as well. From fear mongering about the destruction of our society to the corrupting of our children with the nasty liberal government legalization of Pot, too demanding lower prices and faster shipping.

This should be an object lesson for all, that the opposition's job is to complain, nothing else. Don't expect opposition parties to contribute anything except drama.

Up 1 Down 1

ProScience Greenie on Oct 28, 2018 at 1:00 pm

My apologies, I meant Wade, not Vic.

Up 10 Down 2

Atom on Oct 28, 2018 at 10:49 am

Wade....politics has sunk to a level never before contemplated

Up 14 Down 7

My Opinion on Oct 28, 2018 at 12:04 am

Is everyone aware of the CBC show "THIS IS THAT" I keep hoping I will wake up and that is all this is. Can you imagine, they have become the drug dealers. How long before the First Nations are getting paid out again, this time for their addiction to White Man's Wacky Tabacky.

Up 9 Down 10

Doug Ryder on Oct 27, 2018 at 10:32 pm

Yes. The packaging is ridiculous. It kind of reminds me of the toy section at Walmart. Do not attempt to open your marijuana package or kids toy after you have had a few beers. Unless of course you have anger management skills or want to see if your spouse is right, you need anger management skills.

If the price is too high what impact will this have on expected tax revenue generation?
Why do I care if my joint is handrolled by Dave? That reminds me of Cheech and Chong - Knock, Knock - Who is it? It’s me Dave... Dave’s not here man... No, it’s me Dave...

The great Canadian Marijuana roll out sounds very much like a Cheech and Chong movie to date... Marijuana shortages - Stoners questing for the high but the stores are all closed...
But then there is also a sense of Idiocracy - The government comes together to see how it can lower its prices, reduce the packaging, and open up greater markets?
It will be a while...
Guess it’s off to see Fast Eddy - He’s always got the skunky green, never underweight, nice tight buds, not wet, no shake, minimal stalk, smooth, and with a nice mellow buzz...

Yes. Interesting times indeed. Re-elect Fentie - He has the knowledge and skills to sort this out in a hurry!
Perhaps the government can contact Fast Eddy and he can legitimate his holdings through contract work with the government. Instead of 25 an 1/8 Fast Eddy could make 35-40 an 1/8 and the government could still cut its prices. Win-win!

Up 34 Down 3

Tor on Oct 27, 2018 at 11:59 am

What a world we live in. Bunch of politics arguing about dope prices.

Up 34 Down 6

Twilight Zone on Oct 27, 2018 at 5:05 am

I never thought the day would arrive when the drug dealer government would be arguing about their price of shipping Marijuana in the territorial legislature. Stop the world, I want to get off as this is like a bad joke that won't stop.

Up 21 Down 7

ProScience Greenie on Oct 26, 2018 at 5:00 pm

Great product and great staff but Vic is right, the price is stupid expensive. Sin taxes punish the poor and lower middle class but not those with above average wages. That Streicker doesn't get this is the real sin. And yes, the packaging is beyond ridiculous.

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