Get the latest updates on new products and upcoming sales
Health Canada’s Cannabis Act, 2018, and Cannabis Regulations, 2018, regulates the control and production of cannabis. This framework enforces regulatory compliance for Canada’s medical and recreational cannabis industries.
Processing focuses on the manufacturing, packaging, and labelling of cannabis products. An Online Sales Licence can be combined with a Processing Class Licence to sell to other Licenced Holders and other intra-industry operations.
The Cannabis Act, 2018, requires that Health Canada’s Minister of Health receives and considers any application filed for Commercial Cannabis Licence, including the Cultivation Class. There are two Classes of Cannabis Cultivation Licences.
This Licence Class applies to individuals looking to become large-scale manufacturers of cannabis products in Canada. It allows them to process a variety of cannabis products, legally package and label cannabis products for direct-to-consumer sales and sell to authorized distributors and other intra-industry operations.
This Licence Class authorizes the same with a restriction of processing no more than 600 kilograms of dried cannabis (or equivalent) per year.
This Licence Class is subject to additional requirements proposed by Health Canada.
Beverages
Oils
Cannabis Resin
Oral Sprays
Capsules
Other Intermediary Products
Edibles
Synthesizing Phytocannabinoids
Extracts
Topicals
Hash
Other Authorized Products
Possession
Storage
Transportation
Destruction
Sales to other Licenced Holders
The manufacturing of these cannabis product types is a different activity from the typical Processor who manufactures extracts.
There are additional requirements and restrictions for the manufacturing of edibles and topicals. For example, you may process cannabis and food products on the same site (property). However, the production, packaging, labelling, and storage of cannabis and the production, packaging, and labelling of food products must be conducted in separate buildings. This requirement also applies to other cannabis product types.
The Cannabis Regulations, 2018, require any cannabis production (cultivation or extraction) to occur in a separate building from any food or ingredient production. This requirement is a crucial strategy to mitigate against the food safety and public health concerns associated with multi-product manufacturing facilities and mitigate against the risks of cross-contamination between ingredients and products and the increased risk of mislabelling and product mix-ups.
The regulations intend to assure Canadians, Canada’s international trade partners, and importers of Canadian food products that Licenced Holder took all possible measures to reduce the risk of cross-contamination of Canadian food products with cannabis. Licenced Holders are permitted to sell to other intra-industry operations, authorized distributors, and other Licenced Holders.
Separate authorizations will be required to sell recreational cannabis products directly to the general public.
All applications for Processing Licences are reviewed and approved by the Ministry of Health. The Ministry of Health is also responsible for overseeing licence suspensions, revocations, renewals, restrictions, amendments, and the right to deny applications.
The Cannabis Act, 2018, allows applicants to submit a single application for various Licence Classes and Subclasses, such as Cultivation.
GrowLegally will work with your company from Seed to Success, help you choose the licence that is right for your company while developing a strategic growth strategy!
Apply Now! Get licenced and Join our Global Cannabis Inter-Industry Ecosystem!
Under Health Canada's Cannabis Act (2018) and Cannabis Regulations (2018), the control and production of cannabis are strictly regulated to ensure compliance across Canada's medical and recreational cannabis industries. Cannabis processing focuses on the manufacturing, packaging, and labelling of cannabis products.
A Processing Licence is essential for businesses looking to enter the cannabis industry. It enables them to produce a wide range of cannabis products, from oils and edibles to topicals and concentrates. Additionally, combining an Online Sales Licence with a Processing Licence allows direct sales to Patients and other intra-industry Licensed Holders.
There are two main classes of Cannabis Processing Licences:
Scope: This Licence is designed for large-scale cannabis product manufacturers. It allows for the processing of various cannabis products, including legal packaging and labelling for direct-to-consumer sales through authorized distributors and intra-industry operations. Market Opportunity: This opportunity is ideal for businesses that aim to produce and distribute large volumes of cannabis products to the broader market.
Scope: This Licence limits processing to a maximum of 600 kilograms of dried cannabis (or equivalent) per year. However, if the Licence Holder also has a micro-cultivation Licence for the same site and the cannabis comes exclusively from that site, this maximum quantity does not apply. Market Opportunity: Suited for smaller operations focusing on niche markets or specialized products with lower volume production.
Processing Limits: Micro-processors are restricted to processing a maximum of 600 kg of dried cannabis (or equivalent) annually unless combined with a micro-cultivation Licence on the same site.
Indoor Production: Cannabis must be produced, packaged, labeled, stored, sampled, and tested indoors, adhering to Good Production Practices (GPP).
No Cannabinoid Synthesis: Cannabis obtained under this Licence cannot be recovered by synthesising cannabinoids.
Analytical Testing: All cannabis must undergo analytical testing before sale to ensure compliance with quality standards.
Site Security: The processing site must be designed to prevent unauthorized access, with physical barriers surrounding the site and storage areas. Access to storage areas must be restricted to authorized personnel only.
Security Clearances: Security clearances are required for key investors, directors, officers, and key personnel involved in the operation, including the Licence Holder, Responsible Person, Head of Security, and Quality Assurance Person (QAP).
Quality Assurance Person (QAP): The QAP ensures the quality of cannabis before it is sold and addresses any complaints or risks associated with the product. The QAP must have the necessary training, experience, and technical knowledge. If processing edibles, an alternate QAP with the required expertise must be appointed.
Security Clearances: Key personnel, including the Licence Holder, Responsible Person, and Head of Security, must obtain security clearance.
Processing Limits: Micro-processors are restricted to processing a maximum of 600 kg of dried cannabis (or equivalent) annually unless combined with a micro-cultivation Licence on the same site. Indoor Production: Cannabis must be produced, packaged, labeled, stored, sampled, and tested indoors, adhering to Good Production Practices (GPP).
If the entity does not have publicly traded shares, applicants for a processing Licence must file a key investor report.
A Cannabis Processing Licence opens up multiple revenue streams, including the production of various cannabis products such as:
Packaging and labelling are critical components of cannabis processing, offering significant business opportunities, particularly for cultivators looking to outsource these services. Due to the stringent regulatory requirements around packaging and labelling, many cultivators prefer to focus on growing cannabis and partner with Licensed processors to handle the aspects.
Outsourcing: Cultivators can benefit from outsourcing packaging and labelling to Licensed processors, ensuring compliance with Health Canada's strict guidelines while focusing on cultivation. Value-Added Services: Licensed processors can offer value-added services, such as child-resistant packaging, clear and compliant labelling, and the ability to package products for different markets, including domestic and international sales.
The global cannabis market is projected to reach USD 97.3 billion by 2026 (Fortune Business Insights, 2023). In Canada, the legal cannabis market contributed $17.27 billion to the GDP as of 2023, with the processing sector playing a crucial role in this growth.
Manufacturing edibles and topicals involves additional requirements beyond those for other cannabis products.
These include: Separate Production Areas: Cannabis and food products must be produced, packaged, labeled, and stored in separate buildings.
Cross-Contamination Prevention: Strict protocols are required to prevent cross-contamination between cannabis and food products, ensuring that all products meet the highest safety standards.
Health Canada is responsible for reviewing and approving all Processing Licence applications and overseeing Licence suspensions, revocations, renewals, and amendments. The Cannabis Act allows applicants to submit a single application for multiple Licence classes and subclasses, such as Cultivation and Processing, streamlining the process for businesses looking to expand their operations.
At GrowLegally, we partner with your company from Seed to Success. We help you navigate the complexities of the licensing process, choose the Licence(s) that best fits your business model, and develop a strategic growth plan tailored to your needs. Our expertise also extends to assisting cultivators with packaging and labelling services, offering an efficient and compliant solution for bringing products to market.
Get Licensed and join our Global Cannabis Inter-Industry Ecosystem!
Get the latest updates on new products and upcoming sales