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One pot shop owner in the Greater Toronto Area, who asked not to be named for fear of damaging his relationship with Canopy, told the Financial Post that Tweed’s gel capsules were amongst the “worst-selling” cannabis products in his store, but also noted the store itself was partly to blame for the inventory backlog.

… we ordered too much of it initially because we knew it was available and we just wanted to stock our shelves Toronto area pot shop owner

“The problem is, we ordered too much of it initially because we knew it was available and we just wanted to stock our shelves,” the owner said. “Our margins are going to take a hit because I have boxes of Tweed product — oils and gelcaps — sitting in my back office.”

He added that they had “no problem” selling dried cannabis flower from all of Canopy’s recreational brands.

While Goliger said that Canopy’s oils and gel capsules would eventually sell at the right price, the backlog is raising the issue of how retailers deals with returns and excess stock.

Cannabis retailers in all provinces except Saskatchewan order product through a provincial wholesaler. It is unclear — even to retailers — if unsold product can be returned to the provinces.

Canopy, for its part, deals directly with provincial wholesalers (except in Saskatchewan) and the mechanics of returns differ from province to province and are based on terms in individual supply agreements between a licensed producer and the province.

“This is such a nascent industry that the control boards are still trying to figure out returns. So we don’t know yet if we’re going to take a hit from unsold Tweed product,” Goliger said.