The only cannabis store in the NWT offering online ordering says it’ll shut down the service on Sunday if a dispute over supply isn’t resolved.
Releaf NT, based in Yellowknife, says it can’t get enough of the right products from the NWT Liquor and Cannabis Commission, or NTLCC, which is the only legal supplier in the territory.
“We have no choice but to close our online delivery service to better focus on supplying our customers in Yellowknife and surrounding area until this issue is resolved,” Releaf’s Luke Wood told Cabin Radio by email.
The commission, through an NWT government spokesperson, disputed Wood’s characterization of the problem and said it would “work with existing cannabis store operators to open an online presence as soon as possible” if Releaf’s online store shuts down.
There are six physical cannabis stores across the NWT. Only Releaf offers online delivery. If you’re in the NWT, your only legal option is an NTLCC-approved store.
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Given the territory has more than 30 communities, closing the only online presence would complicate matters for anyone trying to follow the law in a smaller community without a store.
“Releaf’s online store is the only safe, legal supply of cannabis available to residents in communities throughout the North who are not living in one of the five communities where there is a physical store,” Wood wrote. (Yellowknife has two of the six stores.)
“When we cease delivery Sunday, consumers throughout the NWT will be forced to go back to the black market.”
What’s the problem?
Wood says the NTLCC is distributing cannabis in a way that doesn’t make sense and harms Releaf’s online store.
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The commission signs deals with cannabis producers and then sends each NWT store a list of what’s available.
If the stores collectively want more of a certain product than the commission has on hand, according to Wood, the available product is split among the six physical stores.
“This distribution formula doesn’t consider market demand, or even consider the online store a store,” he wrote.
He says Releaf has to buy cannabis that “has been sitting collecting dust from the other stores” to keep its doors open, and is “perpetually in a struggle to get a consistent supply.”
Wood says he has asked the NTLCC to consider the online store a seventh store for the purposes of handing out available product, “for residents where there is no physical store.”
The commission hasn’t agreed to that option, Wood suggested, adding he had raised the issue with the minister responsible – finance minister Caroline Wawzonek – at the same time as giving notice that the online store will close on Sunday if there’s no progress.
“They feel there is no issue and everything is working well,” he wrote, describing the commission’s outlook. Wood added he thinks any change is “highly unlikely.”
What happens now?
The commission “does not agree with this characterization,” GNWT spokesperson Toyeke Adedipe said by email when Wood’s description of the situation was put to the territory.
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Adedipe said the NTLCC currently buys cannabis from 38 different producers who, together, have a 98-percent fill rate. A fill rate is the percentage of orders you can meet without running out of stock.
“Since January 2024, NTLCC has been able to offer NWT stores approximately $58 million-worth of cannabis products. From these offerings over the same period, NWT stores have purchased $1.9 million in cannabis products. Simply put, there is no shortage of cannabis offerings, options, or availability to NWT stores,” Adedipe wrote.
“Inventory management is the responsibility for each store, and vendors make their buying decisions based on customer demand.”
Adedipe said the commission sends each store a list of what’s available twice a week, and the larger stores normally get larger portions when they make requests.
“If demand for a particular product exceeds what is being offered, NTLCC works with cannabis vendors to find alternatives with other LPs,” she wrote, using an initialism for licensed producers.
As of Friday evening, Releaf had a message on its website that suggested the closure would go ahead on Sunday.
“We sincerely hope these supply issues with the NTLCC will be resolved and we can continue to provide a safe source of quality cannabis throughout the NWT,” the message stated.
The commission said all NWT cannabis stores “have mail order abilities should Releaf close their online store.”
“NTLCC will work with existing cannabis store operators to open an online presence as soon as possible,” Adedipe wrote. “Customers seeking cannabis through mail order can visit www.ntlcc.ca for updates on this matter in the coming days.”
