DELTA 9 CANNABIS INC. DLTNF DN intends to expand its distribution and cross-docking business in Manitoba as a result of Manitoba Liquor & Lotteries Corporation changes to wholesale distribution regulations.
Effective July 31, 2023, MBLL implemented a set of new regulatory enhancements intended to improve lead times for the delivery of cannabis shipments from suppliers and distributors to Manitoba based retailers.
The enhancements will allow the company to bring additional cannabis inventory from third-party suppliers into the province, closer to the operating retail network, and significantly improve the lead time and fulfilment cycles experienced by retailers. This inventory no longer needs to be subject to a purchase order to enter the province. MBLL also announced it will remove the previous 8-day holding period for retailer orders, allowing purchase orders to be shipped immediately.
“We view these announcements from MBLL as material in improving the supply chain cycle efficiency for Manitoba based retailers and improving logistics cost efficiencies for out of province suppliers,” stated John Arbuthnot, CEO of Delta 9. “We believe that these changes will allow us to significantly expand our list of cross-docking and distribution customers and increase overall revenues from this new growth segment. We applaud MBLL and the Manitoba government who have taken several proactive steps in the past number of months to support the cannabis industry including the repeal of the 6% retail social responsibility fee.”
The company anticipates that the move to warehouse inventory in Manitoba at its Winnipeg based facilities will allow it to shorten lead times for deliveries to 3 – 5 business days, from 3 – 5 weeks previously. The company currently operates an 11,000 sq ft cannabis warehousing and distribution operation licensed by MBLL and the Liquor Gaming and Cannabis Authority. The company intends to begin executing expanded distribution agreements with suppliers immediately and anticipates that distribution shipments of locally stored products will begin in Q3, 2023.
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