Year after pot legalized, B.C.-based pot shop chain says red tape was worth it

VANCOUVER (NEWS 1130) – A cannabis retailer with two stores in Vancouver says the frustrating approval process is finally paying off one year after recreational pot became legal in Canada.

Harrison Stoker with Hobo Cannabis says all the red tape and delays were difficult to navigate at first, but sales continue to grow.

“Already, it’s worth it. I mean, the learning alone has been really fun, frankly. All the businesses are cash-positive right now which is great, so it’s happening. It’s working,” he says.

“Especially excited for next year, we’re getting increasingly more confident as we get into more provinces, as we understand regulations a little bit better. We’re getting more creative with how to design our store layout, how to improve our customer experience.”

A year after recreational pot became legal, a key private retailer in #BC tells @NEWS1130 it was all worth it. @Donnelly_Group's Harrison Stoker says progress has been slow, but #HoboCannabis stores in #Vancouver, #Kelowna and #Ottawa are all "cash-positive" now. #cannabis

— Marcella Bernardo (@MBernardoNews) October 17, 2019

Hobo Cannabis currently has two stores in Vancouver, one in Kelowna, one in Ottawa, and more set to open elsewhere in the country by the end of this year.

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Stoker is expecting next year to be even better, now that government distribution problems have mostly been resolved.

“It was definitely a hot topic earlier in the year. It’s quite a bit less of a hot topic now because supply levels are starting to increase. Health Canada is starting to onboard more licensed producers, which is really healthy, and then, licensed producers themselves are figuring out their own supply chains.”

Stoker adds supply levels are improving now, “Health Canada is starting to on-board more licensed producers which is really healthy and then, licensed producers themselves are kind of figuring out their own supply chains.” Plans to open 2 more stores in #Vancouver this year.

— Marcella Bernardo (@Bernardo1130) October 17, 2019

Producers are federally-licensed, but the B.C. Liquor Distribution Branch oversees seven government-run stores and 85 private retailers.

Stoker says wading through the regulatory process hasn’t been as difficult for Hobo Cannabis as it has been for other retailers, because their parent company,The Donnelly Group, already owns several pubs and restaurants.

“We know what we’re doing now,” he says, laughing. “We didn’t last October. We didn’t open our first store until April.”

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Since opening that first store in Ottawa, he admits the regulatory process there was easier.

“It felt really fast in Ontario and it feels really slow in B.C., but it’s for totally different reasons.”

As for supply shortages, Stoker is pleased Health Canada has approved more licensed producers.

“There’s some really good variety out there and plenty more on the way – new products, new brands. The shopping experience is going to change dramatically because you’re going to have things like infused beverages, edibles and all kinds of really interesting stuff coming to the market.”

Hobo Cannabis’s most recent store opened in Kelowna, with Stoker saying two more should be coming to Vancouver by the end of this year.