Private retailers can apply this spring to sell pot in Yukon

The Yukon government says pot sales in the territory have been good, and it's ready for "the next step" in legalization — allowing private retailers to get a piece of the action.

On Monday, the territory unveiled rules for private retailers to get into what has so far been a government monopoly. Since legalization in October, the territory has operated the only legal retail store, and online sales.

"Our goal is to be ready for this spring, to see private retail come into the territory. And once private retail is established, we will be working to get out of private retail — out of retail, as a government," said John Streicker, Yukon's minister responsible for the Yukon Liquor Corporation.

"We're trying to move as quickly as we can, to get to private retail, without rushing it."

However, the government's online sales will continue — at least until there are rules in place to allow private retailers to sell online.

The territorial government will also remain the sole distributor of cannabis products in the Yukon. Private retailers will only be able to sell products purchased from the government. 

Streicker said Monday that in the three months since legalization, a little more than $1.1 million worth of pot has been sold in Yukon. 

The new rules will allow two kinds of retail sales — from a stand-alone store that sells only pot and related products, or from a "store-within-a-store," essentially, a separate, enclosed area within an existing store (except where liquor or tobacco are sold). 

"If I owned a general store, and I sold general goods, maybe groceries ... I could make application for the store-within-a store model, as long as I built, essentailly, a separate space to sell cannabis from within that store," said Matt King, president of the Yukon Liquor Corporation.

Private retailers will also be subject to the same rules already in place for the government store. So, nobody under the age of 19 will be allowed entry, and people outside the store won't be able to see in. 

Applicants will also need to meet certain criteria to get a retail licence. For example, they must be a Canadian citizen at least 19 years of age, and be able to "prove financial responsibility." They'll also be subject to a criminal record check.

Licences to sell legal pot will be issued by the Yukon Cannabis Board, a five-person regulatory body that's still being established, King said. Board members should be named in the coming weeks, and undergo training next month.

City to review zoning

Government officials say they already know of some prospective retailers in Whitehorse, and they've been keeping them informed about what's happening. 

Whitehorse mayor Dan Curtis said the city is also working closely with the Yukon government to ensure that they're working on a similar timeline. Curtis says council will review its zoning bylaw for cannabis sales next month and will seek public input.

Right now, only the Marwell industrial area (where the government's Cannabis Yukon store is) is zoned for cannabis retail sales in Whitehorse.   

"I believe that there is definitely a desire to have public retail in the downtown, and I think that's one of the things the council of Whitehorse will be considering for the citizens of Whitehorse to weigh in to," Curtis said.

Jordi Mikeli-Jones, owner of Triple J's Canna Space in Whitehorse, has already hired three employees and is advertising for nine more. She's also developing a second downtown property.

I don't know who's buying that. Gotta be doctors and lawyers and such.- Bill Huebschwerlen, Northern Hempisphere

But Mikeli-Jones acknowledges there's a risk, as the government will remain the territory's only legal supplier while also operating a retail store, at least initially. 

"For the first at least probably six months that we are open, we are in the unique position that the Yukon government will be both our distribution and our competition," she said.

The cheapest product available at Cannabis Yukon, the government-run seller, is $10.63 a gram, including taxes. The cost per gram drops depending on the quantity purchased, but the price is still higher than the $8 per gram the government first proposed.

Streicker said the cheaper strains of pot simply haven't been available from the government's supplier.

Statistics Canada's latest numbers show the average national price is about $7.48 a gram. Yukon street prices are said to be a little lower, depending on the quantity. 

That discrepancy scares off potential legal vendors like Bill Huebschwerlen of Northern Hempisphere, a retail store for cannabis paraphernalia, in downtown Whitehorse.

"How can you make any money if it's that highly priced?" he asked.

"I don't know who is buying the weed over at the store if they are making 10 grand a day. I don't know who's buying that. Gotta be doctors and lawyers and such," he said.