Whitehorse Daily Star

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Photo by Vince Fedoroff

COMMON OPTION – William Huebschwerlen, who runs Northern Hempisphere in Whitehorse, says he will also likely opt for the store-within-store model.

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Photo by Vince Fedoroff

FITTING START – Jordi Jones hopes to have Triple J’s Canna Space open just over three months from now.

Retailer eyes 420 opening date

Though the territory is not sure of when exactly it could see private retailers hit the Yukon and bow out of the retail cannabis game, at least one is itching to get started in hopes to open shop by April 20.

By Palak Mangat on January 15, 2019

Though the territory is not sure of when exactly it could see private retailers hit the Yukon and bow out of the retail cannabis game, at least one is itching to get started in hopes to open shop by April 20.

That’s according to Jordi Jones, who hopes to open Triple J’s Canna Space once YG begins welcoming retailers into the cannabis environment.

Jones already has her sights set on a downtown location, with the purchase of a building expected to be finalized by the end of this month.

“We’re ready, we’ve been working on this for the last 3 1⁄2 years,” she told the Star Monday afternoon.

“It’s been a very arduous journey, to say the least,” she added, hoping that the estimated more than dozen meetings with city and YG officials to lobby them for a timeline will end positively.

“Our goal is to remove barriers, not create them,” she added.

Being able to sell products by April 20 (also known as 420, an international day celebrating cannabis)would be ideal, she added.

“For us to not be open on that day is very detrimental.”

Jones’ comments come on the heels of the territorial government unveiling some of the regulations that private retailers will be faced with once they are welcomed onto the scene – a move that it is only able to say will come after the spring.

Community Services Minister John Streicker, one of those on hand at the Yukon Liquor Corp.’s site Monday afternoon, confirmed that there was no definitive date set. Joining Streicker was YLC president Matt King.

“Conceivably, the store within store model is fairly broad that a store can offer general goods in its non-cannabis area,” King explained when asked if a grocery store for example could eventually come to host cannabis products.

“As long as it has a separate cannabis designated area and it makes its case to the licensing board, the board could choose to issue a licence.”

The other option for retailers will be a stand-alone store model, much like the sole government-run retail store that currently sits at 120B Industrial Rd.

That site is to eventually close once retailers are up and running, Streicker said – a move that can’t come soon enough for Jones.

“There is a sense of urgency,” she agreed, noting that in the last couple of meetings, she was told applications may begin to be accepted around early April.

“That was difficult for me to hear, I nearly fell off my seat,” she sighed.

With YG estimating that processing apps can take from eight to 12 weeks depending on the complexity of it, that could push the date for Jones’ opening well into May.

She did acknowledge that the board of course needs to wrap up its recruitment and develop its game plan before it can begin handing out licenses to those interested.

For his part, Streicker said the goal is to have board members trained in February and get application packages in the hands of retailers shortly.

King had told reporters in October 2018 that recruitment for board members was to begin in November – with Streicker saying Monday that it was “coming to cabinet shortly,” Jones said she hoped it would be happening sooner.

“We did not feel that should take three months to happen, but we remain hopeful that they have an understanding of our concerns,” she said.

Acknowledging that both YG, city and other officials are “working very hard behind the scenes,” she explained the group had already begun recruiting for some positions ahead of what she hopes is an April 20 opening at the least.

“Whether or not that happens remains to be seen, but I will give them a round of applause if they can make that happen,” she said.

About the dozen or so positions available, among them receptionists, cannabis sales specialists (dubbed bud tenders) and dispensing technicians, about three have been filled.

“We want to guide people through their cannabis purchase whether they’re first-timer or a connoisseur.”

She hopes to allow for checkouts as well as pre-orders online and pickup in store.

As for long-term goals, Jones hopes to grow as demand picks up and edibles begin to be phased in (pending fed regulations, that is expected to be late-2019 in October).

“We have plans to expand once that comes to fruition,” she said, listing a basement, and second floor that could host cannabis literature (a library of sorts) as possibilities. Whether that means she will have to apply for another class of licence will be looked at at that point, Jones said.

Assessing the existing store, Jones explained, “I think with what they had available to them, the shop they opened - they did the best they could.

“We are at the mercy of a packaging problem, that’s definitely a concern,” she said, citing people who have come to express concern about pricing of products, among other things.

“We’ve heard a lot of negativity from clientele that they’re not happy operationally how things are being offered with the lack of supply,” Jones said, before adding “but that’s a nationwide supply.

“We certainly want to continue to work with government” to address some of those issues, she said.

That will likely be the reality, as all cannabis products must be purchased from the YLC – meaning they must sell products in its original and sealed package, not allowing for bulk bin or self-serve.

Ultimately, Jones said it will be the consumers who benefit too.

“We want to demonstrate to Yukoners our very unique Yukon approach,” she said, noting that the sooner they can get licensed, the sooner products can make their way to the hands of consumers.

Jones sided with the decision for the online site still being active after the Marwell store shuts down.

“I think it’s beneficial. Would we like to be doing online? Maybe we might see a transition to that in the coming years,” she said.

“But I think there are needs in the communities” like Watson Lake, Dawson City and the like.

Meanwhile, William Huebschwerlen, the owner and operator of Northern Hempisphere, and told the Star Monday he’d likely opt for the store-within-store model as well.

“I already have a store, so obviously I would want to have it coincide with my product.”

Those products may include papers and pipes, he said, explaining he envisions associates offering clients personal time to best get to know their needs.

“They can give them a one-on-one on how to roll their joint or bud their pipe,” Huebschwerlen said, explaining it would look “more or less” similar to what the Marwell site looks like: “a few cabinets in the back with our products on display.”

He agreed that there does need to be a level of security, pointing out his site already hosts things like security cameras: “but I don’t think it has to be armed guards or anything.”

For many, he suspected the draw to the business would be motivated by money.

“I imagine there’s plenty of people thinking about it and wondering if it’s viable for them,” he said.

But Huebschwerlen cautioned that as an owner, it’s important to take into consideration the overall picture of supply and sources.

“If I’ve got to buy it at a government price and sell it for that price, I can’t see it (being too lucrative),” he said.

That was in reference to one of the product provisions as laid out by YG Monday, which requires that all products for resale by licensees must be purchased from the YLC as laid out in legislation.

“No other cannabis products can be sold by any retailers,” King said.

Huebschwerlen hopes to eventually “cut the slack for the consumers.”

Meanwhile: if the last three months are any indication (which saw Yukoners purchase more than $1 million of cannabis products), Jones guessed that the Marwell site will close later this year.

“Being on the ground level, I would surmise by the fall they will be shut down,” she said.

“That would be enough time to demonstrate that the private sector is up and function and doing exceptionally well to manage the load.”

Streicker maintained that was exactly the goal of the government, though it does not necessarily have a physical criteria or benchmark at this stage to measure the success against.

“We’ve been upfront when we talk to those retailers – once private retailers get established, we will back away.”

She remained grateful nonetheless that YG will eventually bow out of the game in a smaller market like the territory.

“It’s a very unique issue, to have your government as both a distributor and as competition.

“We deserve the right to not have competition,” she said, echoing concerns of growing government and getting into the business of doing business.

“We hope and believe they will honour their commitment,” she added, it’s just a matter of when.

“Despite some very large ups and down over the last years, we’re happy with it moving forward,” she added.

As for immediate next steps, Jones explained she will be running recruitment until about the end of next month.

“The part I’ve been waiting for so long is to pick out the paint, start renovating in the coming weeks,” she laughed. “It really boils down to YG giving us a licence by hopefully April.”

Comments (12)

Up 9 Down 0

What about the past? on Jan 20, 2019 at 12:15 pm

Jordi Jones, founder of Kona's Coalition, had no problem creating competition for the local vets with her free veterinary services NGO. For many years, she was giving thousands of dollars in free veterinary services, steep discounts, funding her friends and board members vet bills with public donations. When Kona's Coalition was asked for a Tax receipts for donations given generously by the vet clinics, worth thousands of dollars, receipts were not available. Jordi and her board simply refused to set up a charity. Small population base and unfair competition, didn't matter then...

Up 14 Down 0

wrong on Jan 19, 2019 at 2:11 pm

She openly said she wants a monopoly on cannabis. I can't believe you all are supporting she and her husband, you think YG is robbing you? Wait until she can.

Up 13 Down 1

Obi Juana on Jan 18, 2019 at 12:05 am

PSA:

Friendly reminder for those who don't know or forgot...

Health Canada responsibilities:
-Packaging requirements (including child resistant component)
-Advertising and Promotion (including how it is displayed on YG site)
-Licensing authority (including cultivating, processing, testing labs, nurseries, and research facilities)

YG responsibilities:
-Distribution decisions within Territory (including decision to go public or private retail)
-Exceeding rules set out in Cannabis Act and Regs (including home grow and age limit)

City responsibilities:
-Not much, and the old team managed to screw it up anyway (Marwell?). To be fair, I should see what this new team does before I rip too hard.

A little note on processors (formerly LPs):
Processors set the price of their own product! Despite the nonsense that Bill Blair spouted out of his mouthpiece the other day, there is nowhere near enough supply. Ask Alberta who just shut down their retail licensing program (because of low supply), or Quebec who cut back hours of retail stores to part time (because of low supply). Big processors are in it for profit to show return to investors. They are sharks in the sea and they sense blood. Prices will likely climb higher before they stabilize. All distribution authorities (provinces and territories) are in a seller's market and take what they can get at whatever price they can get it.

Is YG retail model perfect? Maybe not just yet. Is it better than the face plant endo that BC did? You bet. One government store open since onset, Vancouver just had two (legal) stores open up two weeks ago with a population of almost 5 million. Meanwhile, half of Ontario just fought in a lottery for 25 retail licenses for a province of over 14 million people. (Think: videos we've all seen of the enraged people at Wal Mart on black friday trying to nab a $133 X-Box One before the next guy.) Madness might be reaching. Perplexing for sure.

You think that's bad? Has anyone checked the other two territories (both larger in population than the Yukon, btw) and what they are doing? NU has exclusive two year online deal with Tweed. Yup. That's it. Zero store in Territory. All online sales. NWT has a similar exclusive supply deal with Canaca and Grail, brands both owned by High Park, which is owned by Tilray. They have access to five whole cultivars online!

Again, is YG perfect. Maybe not. I say it's a pretty solid first attempt and better than those that I mentioned. I would even say they did pretty damn good in the amount of time they had to execute. I'll be the first to offer you a lingering quiet golf clap.

It will get better. Private retail will be nice to see for those that can get through the Cannabis Licensing Board approval process. Competition is desperately needed in this town. If you are worried about quality of legal products; just wait until the micro level licensees come online...they will sort the quality problem out in a hurry.

Up 19 Down 1

CBD on Jan 17, 2019 at 7:52 pm

Wow! That woman is pretty entitled with her ridiculous demands.

Up 25 Down 2

Who's in charge? on Jan 17, 2019 at 2:31 pm

“For us to not be open on that day is very detrimental.”
Right, because the government should operate around your timeline.

“We deserve the right to not have competition,”
What fantasy world do you live in? Sounds like you've enjoyed a subsidized Yukon monopoly for too long.

Up 40 Down 5

interesting on Jan 16, 2019 at 11:49 am

"“We deserve the right to not have competition,” she said, echoing concerns of growing government and getting into the business of doing business. "

Jordi and Jeremy 'deserve the right' to 'not have competition'?
Here is reality. Nobody 'deserves' any 'right' not to have competition, especially in a business where even the government can gross $335,000 a month.

The next reality, which I am very surprised these cannabis retailer hopefuls does not grasp is that cannabis is a controlled substance and as such, there will be extensive government involvement. Look at the alcohol industry for guidance on understanding that. The government is going to be involved, and may even be the primary retailer on an ongoing basis in the interests of the general public both in terms of harnessing the revenue for the public at large, and in terms of controlling sales and marketing to keep it professional.

There is room in the controlled substance industry for private retailers, and there is a good argument to suggest that the government does not need to have a storefront because private retailers can provide a more enjoyable and more knowledgeable environment for customers. But to suggest that six months after legalization, the government needs to get out of the way because Jordi and Jeremy Jones have wanted this for so long and deserve it, is a joke. The foot stomping and sense of entitlement is entertaining, but not attractive.

My hope is that a wide variety of private retailers step forward and that no single private entity is given anything resembling a monopoly on this opportunity. As the government has made apparent on Quartz Road, it is a very lucrative and easy way to make an enormous amount of money. Greed and elbowing people out of the way (even if it's the government), is no way to approach this. Have a little respect.

Up 23 Down 5

Erin on Jan 15, 2019 at 11:01 pm

The more regulations that YTG puts on marijuana, packaging, selling, pricing, supply etc, the more people will continue to shop online and have it shipped to them from out of territory. Not having places to purchase marijuana in rural communities either by mail or in store, is just cementing the black market for marijuana.
If you want people to buy weed from the government you better be priced competitively with quality product and in depth variety. YTG is missing an amazing tax collection opportunity by being unprepared. Not to mention the absolutely ridiculous packaging that the bud is coming in. Many people are boycotting just on the principle of packaging. Get someone that actually smokes weed in your corner YTG, because it seems like you guys are clueless.

Up 29 Down 3

Lloyd on Jan 15, 2019 at 7:47 pm

If I recall correctly, COW implemented a rule where criminal background checks had to be done for owners of pawnshops. Wonder if this will be the case for pot shops.

Up 19 Down 13

Jim on Jan 15, 2019 at 6:32 pm

Should have been done this way at the start. Now YTG has wasted $500,000 on a renovation to a leased space with custom displays and expensive security systems. Unknown amount of money on staff training, plus the cost of leasing the space for a year. Spent months studying by both the City and YTG to determine that Marwell is the best place to zone cannibas sales. Now they will have to study and re-examine where to zone the new retailers as none will want to have space in the Marwell area. Just stupid on top of stupid. Thankfully Jordi and Jeremy seem to have the expertise to make it happen the right way.

Up 27 Down 8

A Stone Groove on Jan 15, 2019 at 3:38 pm

Holy Cheech and Chong, these articles are rather long! I am exhausted after reading that. Need a quick hit. So hungry .....

Up 33 Down 31

Thomas Brewer on Jan 15, 2019 at 3:37 pm

Jordi and Jeremy definitely have the business chops to make a success of this venture. I look forward to shopping there!

Up 29 Down 23

Dan Huntsman on Jan 15, 2019 at 3:27 pm

Let's get this going as soon as possible.

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