Quebec to start with 20 cannabis stores, up from 15

But count could reach 300 within next three years

The future Société québécoise du cannabis (SQC) will open with 20 outlets, not 15, to launch the legal sale of cannabis, but its management recognizes it is heading into unknown territory.

The President and CEO of the Société des alcools du Québec, Alain Brunet, made the announcement Friday before the members of the Board of Trade of Metropolitan Montreal.

Although Quebec originally announced 15 branches when it introduced its bill on the legalization of cannabis, Brunet explained that the Crown corporation has decided otherwise.

“Twenty, that’s what’s realistic. It’s our plan. We are the ones who execute the plan,” he said on Friday.

Brunet argues that everybody involved in the launch, including the SAQ, are pioneers, since the usual tools — market studies, profitability analysis, scientific studies and consumer profiles — are rare or non-existent.

“That’s true for producers, from one end of the chain to the distribution; we will be working a bit in the dark,” he said, adding that “we should not be afraid of some ambiguity.”

The plan is to have 100 stores after three years, but Brunet said the SAQ will be agile and he doesn’t rule out increasing the number if necessary.

“The number is 100, that’s what we evaluated. Or 150. This is not an issue: if it takes 300, it will take 300,” he said.

One of the unknown variables is online sales. The percentage of sales made online will ultimately be a major factor in determining the number of outlets needed to meet demand.

SAQ’s boss believes he will have a much better picture of the cannabis landscape after a year of operations.

Some elements have already been determined. The outlets will be approximately 2,000 square feet, there will be no self-service, and products will be kept behind a counter.

Since the law prohibits minors in the store, all people who appear to be under 18 will be carded by staff before entering the store.

Brunet added that such provisions as advertising or a logo remain to be determined because the regulatory framework is not yet known and Quebec has already warned that the framework will be very limited.

The SAQ has also not yet determined whether it will sell accessories for cannabis consumption, but Brunet says he does not think the Crown corporation will aggressively compete for that market.

The number is 100, that’s what we evaluated. Or 150. This is not an issue: if it takes 300, it will take 300. ALAIN BRUNET, CEO, president of Société des alcools du Québec