Review of the first week of operation 

Montréal, October 24, 2018 – La Société québécoise du cannabis (SQDC) wishes to review the first 7 days after the legalization of cannabis in Canada. The opening of 12 stores and the launch of the transactional website were the first steps for the SQDC to make cannabis available through a secure sales network with the aim to attract customers from the illicit market and to protect public health.

In-store and online sales

As anticipated, the enthusiasm of the first days put pressure on our sales network, and the SQDC’s level of preparation made it possible to get through the first days smoothly. 53,300 online transactions and 84,850 in store transactions were recorded, for a total of 138,150 in the the first week of operation. With the exception of the first day, the product demand is in line with the forecasts made by the SQDC. However, the issue of the delivery of products from the suppliers to the SQDC stores has complicated the first days of operation and will remain problematic in the short term. The orders that the SQDC had planned to receive would have been sufficient for the demand in stores and online. Producers therefore have a huge amount of work to do to structure the supply of SQDC points of sale.

Supply of the SQDC 

As in all Canadian jurisdictions, the SQDC is currently experiencing significant supply issues. The limited supply from suppliers combined to the inherent limitations of the production cycle causes, as expected, a scarcity of products offered in-store and online. We expect this situation to continue at different levels for the first quarters of operation. The SQDC works with its suppliers to minimize the impact on customers, but under the current conditions, maintaining the branch network in full operation will be a challenge. It is important to note that, as mentioned since the opening of the SQDC, we can continue to expect a significant lack of products throughout our offer. 

Interim management

As planned originally, Jean-François Bergeron, Vice President of Supply Chain at the Société des alcools du Québec, will lead the SQDC. Alain Brunet, who had been mandated by the government to set up the SQDC, will finish his term in the coming days. It should be noted that Mr. Bergeron was co-pilot with Mr. Brunet since the beginning of the project.

Integrity of quantities for products purchased at the SQDC 

The SQDC has been informed that some customers may have received products with a unit weight lower than the one indicated on the packaging. Although our suppliers monitor units twice during the production process with high precision tools, we have strong expectations in this regard and our suppliers have already been informed of this situation. The SQDC is committed to ensuring that products purchased by its customers are in all respects in line with their expectations. The SQDC does not manipulate the products inside the packaging since the integrity of the goods is guaranteed by the producers. That is the reason why the containers are sealed and stamped. 

For responsible consumption

The SQDC intends to rigorously and diligently fulfill its mandate entrusted by the Gouvernment du Québec to distribute and sell cannabis at the retail level in a way that protects public health. The goal being to attract consumers into the legal cannabis market and keep them in it without actually encouraging cannabis use.