Product Hub March 23, 2018
Health Canada Proposes Restrictive Cannabis Packaging
In the months leading up to Canada’s nationwide legalization of cannabis, Health Canada has proposed that product packaging be plain and uniform in an effort to avoid appealing to youth while educating consumers about the package’s contents. The suggestion comes after 60 days of consultation with over 3,000 Canadians, 450 stakeholders, existing licensed producers and prospective producers, representatives from several provinces and territories, and Indigenous organizations. The Cannabis Act, which would legalize marijuana throughout the country, is set to go into effect later this year.
Health Canada has proposed that labeling must be one uniform color (not fluorescent or metallic) and include mandatory health warnings, information about the THC and CBD content, and a symbol denoting that the package contains pot; for Canadian product, Health Canada suggested a bright red stop sign emblazoned with a cannabis leaf. However, Denise Batters, a conservative senator from Saskatchewan, has already raised concerns that the symbol is overly similar to two logos used by Hockey Canada, the nation’s governing body of ice hockey and ice sledge hockey.
Coatings and inserts would also be prohibited. However, the packaging will be able to include just one brand element, such as a logo or tagline, in addition to the brand name, but it will not include other graphics.
Health Canada calls the consultation and subsequent proposals “an evidence-informed, public health approach … complemented by the ongoing public education campaign to educate Canadians, particularly youth and young adults, about the health and safety facts of cannabis,” said Dr. Theresa Tam, Canada’s chief public health officer, who added that basic packaging and labeling will ensure that “Canadians have the best information to make informed choices regarding the use of cannabis.”
Finalized packaging and labelling restrictions would go into effect upon legalization. “There are many ways for us to connect with consumers and communicate our brand story and vision beyond the packaging of our product,” Lorilynn McCorrister, co-founder of Weedbox, a cannabis accessories retailer, told Leafly, a cannabis news outlet. “We aim to safely supply the best cannabis products to consumers and feel these regulations would not be an obstacle.” She added that she hopes the market will “allow for more creativity” after legalization.
But some promotional product distributors aren’t optimistic that marketing regulations will gradually become more lax after legalization. “I really don’t think the rules will change,” Pete Thuss, marketing partner at Talbot Marketing (asi/341500), told ASI Canada. “Those who will be purchasing and using will know where to buy, and I think with the limited legal outlets, the competition won’t be like that of cigarettes, for example.”
Amanda Dudek, owner of A Dudek Promotions (asi/101207), agrees that established guidelines will not become more lax over time after legalization, similar to the tobacco industry. “If anything, tobacco guidelines have become more stringent over the past two decades,” she told ASI Canada. “There will be quite a bit of trial and error at the onset for the cannabis companies, but like any company running a business, they will want to promote themselves and will find ways to do so.”
And that’s where distributors have a shot of tapping into this burgeoning industry, which Dudek says will inevitably come with opportunities for promo companies. “Cannabis providers will want to establish their client base since they’re all starting on a fairly even playing field,” she says. “The more these companies can do to attract potential clients, the higher potential sales revenues and the larger the ROI for promotional products.”
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