Quebec: 6 companies announce agreement to supply the province with cannabis

Six cannabis companies have announced that they have signed an agreement with the Société des Alcools du Québec to supply the province with cannabis and cannabis-derived products, once the Cannabis will become legal in Canada next July.

The province's largest supplier will be a Quebec-based company, Hydropothecary, which will supply 20 metric tons of cannabis in the first year.

Next is Aphria, which will supply 12 metric tons of product annually, including cannabis oils and several varieties of dried cannabis flowers grown in Ontario and British Columbia.

Canopy Growth announced that it had signed a deal for 12 metric tons.

MedReleaf Corp. will ship 8 metric tons of cannabis from Ontario each year, while Aurora Cannabis—based in British Columbia but set to produce cannabis in Quebec—will supply at least 5 metric tons of cannabis to the province annually.

The latest producer to announce its partnership, British Columbia-based Tilray, will supply the SAQ with 5 metric tons of cannabis per year.

These six companies account for a total of at least 57 metric tons of cannabis per year, which, relative to the overall population, is equivalent to cannabis consumption in France. Canada’s most “French” province, however, had estimated its needs 144 metric tons of cannabis per year, nearly three times the current deal. Oil production and extraction processes consume large quantities of dried flowers. These 144 metric tons would not otherwise end up on the market as is.

Quebec is the Canadian province that has chosen the most restrictive regulation, with a government monopoly on cannabis distribution and a ban on personal cultivation. Quebec is set to open 15 cannabis dispensaries in July and will also distribute cannabis online.