Quebec’s liquor board, the SAQ, has made it official with six Canadian cannabis suppliers, signing contracts to provide the province’s legal recreational market with thousands of kilograms of marijuana products.
The companies will supply the Société québécoise du cannabis outlets, SAQ subsidiaries that will eventually sell marijuana, with 58,000 kilograms in the first year.
Hydropothecary, the only Quebec-based company of the six, inked the biggest contract. Over five years, the company estimates it could supply more than 203,000 kilograms of cannabis products.
It will provide 20,000 kilograms in the first year of the agreement, 35,000 in the second and 45,000 in the third. The volumes for the final two years will be based on the sales generated in the first three years.
“By doing business with Hydropothecary, the SAQ is engaging with a company that complies with the law and adheres to best practices in both corporate governance and the development and manufacturing of high quality and safe products,” CEO Sébastien St-Louis said in a news release.
The value of the contracts was not disclosed.
Prioritizing companies with Quebec presence
The SAQ says the finalized agreements are expected to fulfil the demand for the first wave of retail store openings, and that other calls for tender may occur at a later date.
The hope is to prioritize doing business with producers that have a presence