Cronos Cannabis Producer Criticizes on Ottawa’s Heavy Restrictions on Ads and Packaging Rules

Cronos Group Inc. is a cannabis producer based in Toronto Canada. The company has recently criticized Ottawa’s strict rules and restrictions on cannabis advertising and packaging, and that such restrictions are reducing opportunities in the industry.

Cronos Chief Executive Officer mike Gorenstein shared with BNN Bloomberg,

“I think that you need to build your base first and it’s really difficult with these advertising restrictions and plain packaging to build a global brand . . . If Canadians aren’t sure which brand is what, why would the rest of the world recognize them?”

The restrictions require that cannabis companies package their products in black or white packaging, and that the packaging include a large warning label. This leads to minimal room for a company logo. The purpose of the packaging is to make the products less attractive to children.

Gorenstein added,

“There was this idea that out of the gate, Canada was going to turn into Colorado – but that takes time to build.”

States in the United States do not have the same restrictions on products, which make may it more difficult for Canadian companies to compete in the market. Canadian companies that are unable to grow and to establish a foothold may be unable to do so in light of the restrictions.

Aside form the packaging restrictions, there are also restrictions on edibles in Canada. Gorenstein does not seem optimistic about these restrictions.

He added,

“We really think there needs to be some changes to the regulations or we’re not going to be happy with single-serve packaging.”

Unlike the U.S. market, where companies can sell 10mg of THC per serving and include a total of 10 servings per package, Canada allows only a max of 10mg of THC for the entire product package.