u/grndrpr

November 15, 2019

– pg.1

FINAL REPORT
RESEARCH QUESTIONS AND METHOD OF INQUIRY:
How do regular cannabis consumers think about the legal market? And what are the notable kinds of variation in how regular
cannabis consumers think about Canada’s legal cannabis market?

To answer this question, I recruited 69 regular cannabis consumers, as in those who consume cannabis on a steady and
somewhat frequent basis, living in Canada and asked them about their ideals and concerns about Canada’s legal cannabis
markets. This data was collected (primarily through Reddit) in the summer of 2019.

The dataset is limited in that most respondents reside in Ontario (69%) and there is an overrepresentation of male and female
respondents who identify as white/Caucasian. There were no respondents who identified as Black/Black African decent, and
few respondents who identified as people of colour.

Note about Quotations: Quotation marks (“…”) are only used to indicate words of respondents, square brackets ([…])
sometimes appear to improve clarity or indicate what a pronoun refers to, all ellipses (…) are added to indicate that parts of a
response have been omitted because it included identifying information or to improve the flow of the quotation. I have ensured
anonymity of my respondents throughout, I have not used pseudonyms but have omitted any identifying information aside from
self-identified gender and race (if provided). I have also corrected typos.

SUMMARY AND OUTLINE

Many regular cannabis consumers are interested in purchasing their cannabis from the legal market. However, bad experiences
with the legal market and a lack of trust in the government and licensed producers (LPs) among the regular cannabis consumers
fuels their skepticism and drives them back to local sellers and black market mail-order services (if they ever made a purchase
themselves from a legal seller).

In my mind, the following respondent really illustrates the frustration among regular cannabis when they say: “Canada is not a
leader in the cannabis industry, but it should be.”

There is no perfect way to organize all the thoughts and stories that were shared by my generous respondents. I have decided
to start by exploring A. the core topics of discussion and concern among regular cannabis consumers, followed by B. their
accounts of the positive and negative impacts of cannabis legalization, and C. solutions envisioned by the regular cannabis
consumers who participated in this research project. The final subsection D. takes a step back to consider more abstract themes
that I have been struck by throughout the research process including some of the predominant narratives and lines of reasoning
that seem to underlie discourse about the legal market among regular cannabis consumers in Canada (but especially in Ontario).

A. Core Topics and Points of Concern

1. Price
All respondents think that the cost of legal cannabis is often remarkably higher than the cost of the black market, and they state
that this influences their behavior. Many are deeply skeptical that the legal market will ever be able to push out the black market
while others are more open to the possibility of a thriving legal market in the future.

Problem 1: Feeling priced out

“I like that cannabis is now always available. Gone are the days of running out and scrambling for a dealer. It’s okay for
people who smoke very casually but for an everyday user it’s way too expensive”

“The pricing is absolutely outrageous. I once saw a post on reddit that the government was selling 3.5/g for $83! I only
pay $100 for an ounce (28/g).”
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November 15, 2019
– pg.2

“Even the thought of safe vs unsafe weed is disregarded when you gotta budget.”

2. Quality
Respondents were less united related to the quality of legal cannabis, though they were generally negative. Many respondents
had issues with the quality and blamed those who control the production process, especially the government but also licensed
producers who are seen as capitalists interested in profit over serving seasoned cannabis consumers. Many respondents brought
up stories of moldy or buggy flower. One respondent described the poor quality as a result of “low grade supply management”
which was reinforced throughout production, distribution and retailing.

Problem 2: Bad experiences with the quality of legal cannabis

“I tried probably about 35+ strains in the first 3 months of legalization and only 3-4 were up to par especially for the
price.”

“Quality control testers who've never seen or smoked weed in their life. New regulations surrounding edibles are
equally retarded… 50%+ of products are stuff I would actually just throw away. It's that bad quality.”

“I bought some then later discovered it was irradiated, which is something I definitly want to avoid, so now I probably
will throw it out which means I just wasted a bunch of money.”

3. Business Practice
Regular cannabis consumers often described “corporate greed” to be the guiding principle of licensed cannabis producers in
Canada. In general, respondents tended to consider the owners and executives of licensed producers and retailers to be out of
touch with the typical cannabis consumer. A good number of respondents expressed that they are happy about the fact that it is
possible to know the grower, that the cannabis produced for the legal market undergoes testing, and that cannabis growers are
accountable for the products they sell. Yet, a few respondents were further deterred from legal markets because they believe
that criminal behavior regularly occurs in “legal” cannabis companies (a small number of respondents specifically mention or
alluded to the CannTrust scandal). Further, some regular cannabis consumers think of illegal producers and sellers along the
lines of “lovely kind hearted individuals…” who are better known and more reliable to them personally compared to
government-approved sellers.

Problem 3: Lack of trust in the ability of licensed producers

“…I don’t trust the growing process of corporate cannabis”

“I worked at a legal cannabis store for a time... [until] I quit. Working in the store was horrible. The staff were all
awesome. The pay was terrible, the shifts were all over the place, and the corporate suits had terrible, senseless ideas
about what consumers wanted.”

[Is there anything that makes you want to avoid the legal system?] “…How it’s only big companies taking over and all of
the people that actually use and love the plant can’t sell it.”

4. Government Regulation
Respondents are unhappy with the government regulation regarding the locations of shops as well as the Health Canada rules
related to radiation and packaging. Respondents consistently mentioned how far away retail locations were. For example, the
only respondent who identified as Indigenous said that the closest legal dispensary is approximately 300 kilometers away.
Respondents mainly described the legally mandated packaging as “excessive”, but also as “environmentally insensitive”,
“insane”, “wasteful”, and “not tamper proof” (for oils). The respondents who mentioned radiation as a governmentally-mandated
drying method exhibited a thorough skepticism of irradiated cannabis. As a final note, respondents from BC were generally
happy with the legal market, and a small number of respondents outside of BC mentioned that they would prefer a legal market
like BC’s in their province/territory.

Problem 4: The (Ontario) government has done a poor job rolling out and regulating legal cannabis across Canada
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November 15, 2019
– pg.3

“I feel the government has done a truly poor job at executing a legal system. I wish they would have looked towards states
such as California or Colorado.”

[Is there anything that makes you want to avoid the legal market?] “Corrupt OCS contract given by PC government…. I don't
want to support an industry that is ripping the entire country off.”

[What could the government do to improve the legal market?] “Open a free market where more than 25 stores can operate.
Increase access to seeds and nursery plants so people can grow plants of their own. Go the Netherlands route.”

[What’s the ideal legal framework for you?] “Open the entire market up. Allow for anyone to sell it. Stop license lotteries. I
want to buy my beer in a corner store next to craft cannabis at 25% THC.”

B. Perceived Positive and Negative Impacts of Legal Market and Government Regulation
Positives
Positive 1: “It’s legal weed!”
I think this quote really encapsulates the basic positive most regular cannabis users can agree on. Cannabis used to be illegal,
and now it’s legal. That’s not nothing. It’s at least “a step in the right direction”. Respondents have a newfound “peace of mind”
now that cannabis is regulated. The legal market is more convenient: “I can always grab a G from the NSLC.” And transactions
to are more comfortable: “Love not having to deal with a sketchy supplier.” Respondents like that they can buy, possess, and
smoke in public spaces. One respondent writes: “I’m a legal kind of person and like to follow the rules so I’m generally drawn to
buying legal weed even if the black market is cheaper.”

Positive 2: “I like that I am not criminalized for my past time - that the stigma is being addressed…”
Few respondents explicitly make this point, yet I find this overarching sentiment pervades the discourse around legal cannabis.

Negatives
Negative 1: Market and regulation
Most respondents described the legal market as an infrastructural reinforcement of already-dominant capitalists and
corporations of whom and which they are already uncomfortable. Respondents often mentioned the need to better balance an
open market and market regulation. There is a tension here: consumers understand that there ought to be a rigorous process to
get people into the business, but they feel that the people who have been growing “for years and years and decades” are not
getting let in on significant opportunities. Respondents also feel that the regulations by Health Canada do a poor job ensuring
quality and safe product.

Negative 2: Privacy
Many respondents expressed concern about privacy regarding the purchase of legal cannabis. One Ontario-based respondent
said that one reason he wants to avoid the legal market is because “the Premier [Doug Ford] claimed ‘we need to know who’s
using it’ when questions arose regarding ID swiping at physical retail locations”. One respondent expressed concern about “What
purpose the information collected by ocs.ca is serving.” And a few respondents mentioned concerns about being unable to travel
outside of Canada after purchasing legal cannabis. One respondent specifically said that he only pays cash when purchasing legal
cannabis.

Noisy Issues
Noisy issues are ones that have no clear leaning in my sample.

Disputed issue 1: Shipping & Delivery

Respondents seem to have had equally good and bad experiences with shipping and delivery. When there are issues with
shipping and delivery unfortunately medical patients expressed the highest levels of inconvenience. When recreational users
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November 15, 2019
– pg.4

have considerable issues with delivery it seems to be because they are ordering products that are out of stock due to legal retail
websites being not up-to-date. Respondents who mention shipping find it reasonably affordable.

Disputed issue 2: Selection

A fair number of respondents who mention the amount of options are happy with the level of selection in the legal market.
However, the respondents who were the most unengaged with the legal market were those who used concentrates or edibles
that are not available in the legal market. These unengaged respondents do always explicitly say that selection is an issue for
them. Thus, there may be an overly positive view about selection in public discourse about the legal market because those who
are not served or underserved by the industry are not actively participating in these discussions to the same extent as others.

C. Proposed Solutions
A few respondents were generally happy with the legal market though many saw outstanding issues and proposed solutions.

i. Price match black market

“Mandate reduced prices. Reduce them by at least 50% ($10 should be $5). … prices need to come back down to this
solar system before I would even consider buying legal weed again. Make it $5/g +tax. Not $15/g +tax.”

“There should more larger sizes available (example 15 Grams or even 30 gram package) with the popular brands and
they should also reflect more of a price discount than the smaller sizes rather than just $5 when you buy 1/2 or whole
ounce of one kind. For instance, I like SR71 Pink Kush and would like to just to grab an ounce and go.”

ii. Privacy: signed delivery, anonymous payment methods

“…implement pre-screened accounts with ocs so your order can be delivered anonymously (Carriers know they are
delivering cannabis because of the id check). allow for anonymous payment methods (bitcoin, paypal interact transfer)
on prescreened accounts.”

iii. Expand edible options: i.e., vegan edibles, soft gel capsules.

iv. Revise regulations: The respondents who bring up regulations suggest that the barriers to entry for LPs and retailers to the
legal market are not fair. One respondent expressed a desire for locally owned/based business and production and says, “If local
pot greenhouses could become an alternative way of buying that would be extremely interesting.” Another suggests that the
OCS should not be an intermediary between producers and retailers in Ontario. Solutions for issues around packaging include
instituting a “bring your own container program” at local shops and dispensaries, switching to air suctioned bags, and getting
cannabis from production to sale quicker.

v. Better supply management: Respondents complain of dry flower that was either never suitable for consumption or packaged
months before purchase. One respondent specifically suggested higher “grade supply management.”

vi. Worldwide legalization: While one respondent suggested that there was too much “multinational corporate involvement” in
Canada’s legal cannabis market, another respondent suggested that one solution to the issues facing Canada’s cannabis market
is “worldwide legalization.”

D. General Findings
There are some more general themes throughout the dataset. I am, in many senses, speaking for my respondents in this section.
So, I recognize that it is possible that some of respondents would not agree with my analysis here. Nonetheless there are some
assumptions about and patterned forms of engagement with the legal cannabis that became striking throughout my analyses.
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November 15, 2019
– pg.5

Two Generic Lines of Reasoning (Assumptions, Myths, etc.) Underlying Discourse Among Regular
Cannabis Consumers

Underlying Assumption 1: The government and most LPs are not knowledgeable enough to produce high-quality
cannabis reliably
Respondents perceive the government as unqualified to regulate the production and distribution of cannabis products. One line
of reasoning among respondents here is that the legal market is designed (purposefully or not) to keep out people who are
experienced and have been growing, harvesting, drying, and packaging cannabis for much of their working lives. Another line of
reasoning is that the government is applying new quality standards that regular cannabis users do not appreciate. Many
respondents described the products they have tried as overly dry and consider irradiation drying to produce an inferior product.

One respondent provided a lengthy account explaining how she evaluates cannabis:

The 3 main factors for me when thinking about LPs (or any weed) critically are: trim job, terpenes, and developed
trichomes.
“A good example is Redecan Wappa. This is a product that has consistently delivered on all 3 points with
multiple batches. Because of this it's safe to assume that this company actually cares about their crops. The
trichomes are developed which means they waited until their flower peaked at harvest. The trim job is pretty
tight, I've heard they use machines to trim which I don't mind as I've never had a problem with too many leafy
bits on this product. And the terpenes are strong, and easy to detect in a session, which means they cured their
buds properly and didn't rush their product out.
On the opposite end of things I'll use Tweed Houndstooth as an example. The product was half shake, and the
buds themselves were quite leafy and long which is lazy and rushed for a trim job. The buds had minimal
trichomes (harvested too early). It also had a hay/basement kind of taste- usually when it's got undertones of
hay it's an indicator of a rushed cure.”

Underlying Assumption 2: The government and some LPs participate in questionable or criminal activities and
are no better than illegal dispensaries or local sellers in this sense
When respondents mentioned that that they did not trust the government or licensed producers to have their best interests in
mind when regulating or producing cannabis, some brought up how that governmentally-authorized agents can engage in
criminal activity. A small number of respondents mentioned the CannTrust scandal in particular. Many respondents used the
words “corporate greed” in describing their perceptions of LPs in Canada.

Love and Cold-Heartedness in the Canada’s Legal Cannabis Market

Love is a valuable resource in the cannabis industry. Regular cannabis consumers conceive of the legal cannabis industry as “cold
hearted” and “greedy”. According my respondents, “love” is lacking throughout the production and distribution of legal cannabis.
According to one respondent I asked to elaborate on what he meant when he used this word, he said putting “love” into the
production process includes giving high level of attention to and fine tuning conditions for each individual plant. A follow-up
question about “love” in the production process provoked the participant to write the lengthy reply about trim job, terpenes,
and developed trichomes above. Another respondent when asked about perceived issues with LPs wrote: “The thing that's
missing is love. Cannabis is a very tricky plant. I have never grown myself, but just from what I hear they are. Each strain is
different and there are so many of them. I think it's just pushing out product. People that don't know what they are doing are
doing the jobs.”
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November 15, 2019
– pg.6

In my mind, there are appearent parallels with concerns about “love” in the cannabis industry and concerns about “authenticity”
in other culture industries. For those interested in strategizing in this regard I would suggest checking out Michael Beverland’s
insightful 2005 study “Crafting Brand Authenticity: The Case of Luxury Wines” published in the Journal of Management Studies.

Cognitive Labour & Cannabis Legalization

Adapting to cultural change requires cognitive labour. As much as it takes time and effort to learn a new language or to immerse
yourself into a foreign culture, regular cannabis consumers in Canada have been faced with the option of updating their thoughts
and actions to a new set of legal regulations and cultural affordances. Therefore, it is possible that the declared and implicit
unwillingness to transition to the legal market among regular cannabis consumers in Canada could be framed as resistance that
takes its form in the inability and/or unwillingness to invest the time and money to engage with the new legal system and
(potentially) to find an appreciable niche in the emergent legal market. In other words, it is possible that an unwillingness to do
the cognitive labor necessary to transition to the legal market a driver of resistance to it.

I’m not in any way saying that some of the regular cannabis consumers I spoke to are smarter than others. What I have noticed
is that there are some regular consumers who are engaging more with the legal market and thinking harder about it, even if they
are not entirely pleased with it. Some of the regular cannabis consumers I spoke with simply do not think about the legal market
while others actively engage with and support a market they do not necessarily accept. One respondent exemplified this latter
perspective by saying: “…I actively support it [the legal market] even though it sucks right now.” Another respondent who
currently remains deterred from the legal market but open to the possibility of change says: “…there’s no way the black market
is going to survive 20, 30 years from now. If you look back at the legalization of alcohol there was definitely a black market that
thrived for 5, maybe even 10, years after legalization of alcohol. But now you walk in to the Beer store and the LCBO and you can
touch it, you can grab your own beer, grab your own bottle… I think cannabis is bound to go that way. We’re just not there right
now and everybody hates it.”

Suggestions for Future Research

As this dataset is limited by the fact that it is overly representative of the opinions of Ontarians as well as males and females who
self-identify as white/Caucasian. It is very important to note that this research project does not capture adequate variation in
regard to the ideals and concerns Canadians (especially people of colour in Ontario, let alone Canada). Thus, further explorative
social research is definitely called for among a more varied sample of Canadians.

A purposive and comparative study on the differing perspective of full-time and casual employees of the legal cannabis industry
could provide insights about the ways individuals develop, maintain, and reinforce their confidence in the legal market and, in
some cases, become disillusioned with it. The few respondents who claimed to be currently or formerly working in the legal
cannabis industry expressed widely varying perceptions of the legal system and the perceived risks of participating in the illegal
market.