10 new cannabis retail licences issued in Alberta

Alberta has issued 10 new licences for retail cannabis shops, upsetting the owners of some existing ones.

Retail stores have complained about shortages in supply since legalization last October. The provincial government says supply has made "a modest improvement" in recent weeks, promptingAlberta Gaming, Liquor and Cannabis (AGLC) to add the new licenses.

• Cannabis seeds can now be purchased online in Alberta
• Cannabis shortages lead to new distribution rules for Alberta pot shops

"Who figures inventory levels are improving? Quite frankly, they've been dropping for the last couple of weeks," said Peter Boyne, managing director of Beltline Cannabis in Calgary.

"My order next week and the order this week are the smallest yet."

Only a month after legalization, AGLC announced it had received only 20 per cent of the cannabis ordered to supply 250 stores for six months. There has been a shortage across Canada ever since, and in response, Alberta capped retail stores at 65 until Friday's announcement, which brings the total licences to 75.

Boynesays he barely has enough product to keep his store open six hours a day, so he was stunned to hear the announcement.

"We have regulars that come in all the time asking for certain products and that's unfortunately the answer, it has been very often, 'sorry, we can't get it yet,'" he said.

Andrew Freedman knows a fair bit about cannabis shortages. He's the former director of marijuana coordination in Colorado, which legalized cannabis before Canada. He said it can take years before demand strikes a balance with legal supply.

"I think regardless of how you roll it out it's going to take about ayear to 18 monthsfor supply to really be able to be in competition with black market," Freedman said.

"That's simply because there's a huge amount of capital outlay for cultivation to be able to produce a brand new, billion-dollar market."

AGLC says it's "in discussions" with another 12 licensed cannabis producers in order to secure more product.

"We are confident the inventory can accommodate an additional 10 retail locations," AGLCpresident and CEO Alain Maisonneuve said in a statement Friday.

"AGLCcontinues to work with our licensed producers and current retailers towards solutions that will support a sustainable marketplace.

The 10 new licenses will be offered to those who met all conditions before the moratorium on licensesin November.

• MORE ALBERTA NEWS|Albertans warned of hepatitis A exposure at hotel, school in Nanton
• MORE ALBERTA NEWS|Convoy headed from Innisfail to Olds calls for oil and gas industry support
• Read more articles byCBC Calgary, like us onFacebookfor updates and subscribe to ourCBC Calgary newsletterfor the day's news at a glance