Exploring Progressive Solutions: Innovating Within the Regional Cannabis Sector A 3-YEAR REGIONAL ECONOMIC DEVELOPMENT PROJECT PRIORITIZED PILOT PROJECTS, GOVERNANCE OPTIONS & ACTION PLAN CO-DEVELOPMENT Prepared for licensed producers & processors Breakfast Meeting, June 25, 2025 Dr. Tracey Harvey, Selkirk Innovates Agenda • • • • Meeting Overview & Introductions May 30th reflections Prioritized Pilots & Feedback Governance Options Report Highlights 9:30 – 9:40 am 10 min break • • • Exercise: Co-develop Action Plans Report Back (key themes) Wrap-up & Next Steps May 30th Breakfast meeting survey results What you told us (8 people responded): Best part? • Getting people together in the same room united on a project is incredible • Round table discussion, hearing everyone's point of view • Getting everyone together in a room to build community, align on core issues and discuss our region’s strategy as business owners Anything missing? • I'd like more time for the growers to have deeper discussions but overall, the time is managed well • This was a very clearly presented meeting with rich informational sharing. Well organized and easy to participate in the discussion, thank you • I think the Kootenay Quality Standard / Appellation / Formal Governance pilots are really all aspects of the same conversation and would require a meeting just on that single topic. It is something everyone wants but consensus might be tricky. Prioritized Pilots #1. “Voices of the Kootenays” – Regional Cannabis Storytelling Campaign Tied for #1. Kootenay Quality Badge Certification #3. Team Kootenay International Trade Delegation #4. “Kootenay Grown” Digital Content Hub #5. Formalize Team Kooteany - Governance and Funding Model Exploration “Voices of the Kootenays” Regional Cannabis Storytelling Campaign Image: Tyeson Carmody; Photo from Hightide Mfg website Purpose: Establish a regional identity for Kootenay cannabis through compelling storytelling. Includes video and written content celebrating the region’s legacy, resilience, culture, community & values Deliverables: •5-part docuseries + 2 introductory videos + written pieces (blog?) •Dissemination plan: roll-out via YouTube, Digital Hub, Instagram, LinkedIn and email campaigns. •Partner with influencers? •Host one live storytelling event (or film fest?) Timeline: 12 – 18 months Shoestring Budget: $30,000–40,000 (simpler production, in-house/webbased) vs Ideal Budget: $50,000–60,000 (higher-quality video production, editing, and outreach) Opportunities: •Lots of existing content •Solid narrative inquiry component for research •Potential partners: Nelson Museum, Kootenay Coop Radio •Inclusive; educational; builds authentic connection & helps normalize cannabis tradition; complements many other pilots Challenges: •Working within federal promotional restrictions (keep educational tone) Kootenay Quality Badge (KQB) Certification Concept image by Cactus Genetics Purpose: Create a regional quality assurance badge for Kootenay-grown cannabis, verifying artisanal production methods and unique regional qualities; Signals a commitment to high standards, consistency and trust to retailers and consumers. Deliverables: •A grower defined standards document (input types, practices, growing space) •Official KQB label/logo for compliant producers; badge design + usage guidelines •Pilot activation with 5 to 7 producers Timeline: 12 months (Sept 2025 – Sept 2026) Shoestring Budget: $20,000–25,000 (DIY design + fewer producers in pilot) vs Ideal Budget: $40,000–60,000 (legal input, formal audits + more producers) Opportunities: •Big advantage in the international market; enhances consumer trust + differentiates products; promotes storytelling and one day, a trail •Helps support government engagement efforts & can serve as a precursor to a regional appellation Challenges: •Voluntary & lacks legal authority: difficult to enforce if not tied to legal designation •Requires industry-wide buy-in to have impact Team Kootenay – International Trade Delegation Purpose: Represent Kootenay producers at international trade shows, promoting unity, export opportunities, and networking Deliverables: •Design + buy or rent a regionally branded trade booth •Shared regional booth at 2 major events (e.g., Spannabis, ICBC, Mary Jane) •Export-focused media kit •Co-branded swag? •Follow-up networking webinar Timeline: 9 months (September 2025 – June 2026) Shoestring Budget: $25,000–35,000 vs Ideal Budget: $50,000– 60,000 (professional branding, more shows +/or more growers) Opportunities: •Uses content from Storytelling Campaign in presentations •Aligns with Quality Badge & (one day) Export Readiness initiatives; •Global visibility, promotes future B2B partnerships; regional recognition •Low barrier entry into global markets, momentum builder for regional export strategy Challenges: •High travel costs for participants •Trade restrictions on international advertising •THC focused exports may disqualify potential funding Image: 2025 Spannabis poster Purpose: Create shared communication, website and digital infrastructure that supports all pilots — storytelling, badge, trade delegation, governance, and future initiatives Deliverables: •Discord or WhatsApp group •Robust website with built-in audience + interactive features + mobile responsiveness •Shared resource hub with export, retail, governance + regional identity materials Timeline: Discord: now; Web hub: 3-12 months (starting Summer 2025) Shoestring Budget: $10,000 - $12,000 (design, content, admin + maintenance) vs Ideal Budget: $20,000–35,000 (expanded scope to support many overlapping projects) Opportunities: •Central to all pilots; one-stop resource, enables collaboration •Long-term legacy platform for region Challenges: •Requires active moderation and funding past pilot phase; maintenance + new materials “Kootenay Grown” Digital Hub Concept image by Cactus Genetics Formalize Team Kootenay - Governance & Funding Model Exploration Image: Craft Cannabis Association of BC (CCABC) – a province wide non-profit industry association Purpose: Explore and pilot a formal structure to carry regional efforts forward (e.g., nonprofit, co-op, alliance) Deliverables: •Options report (+ funding opportunities) •Stakeholder session •Draft bylaws and structure; Incorporation (optional) Timeline: Research summer 2025 (2 months); Incorporation summer 2025 – Winter 2026 (9 months) Shoestring Budget: $8,000 vs Ideal Budget: $12,000 Opportunities: •This is where it starts •Secures long-term capacity and funding •Provides backbone for Pilots 1–10; owns IP •Supports grant eligibility for wish-list initiatives •Potential local Partners: KAST (business incubator), Community Futures Challenges: •Need buy-in, ongoing admin costs & time – need a champion! # Option Purpose in 5 Words Governance Options for a Shared Future 1 Co-op Shared costs, democratic control How should you organize yourselves to move forward together? 2 Nonprofit Society Grants, mission first + inclusive 3 Benefit Company Business mission + social good 4 Industry Association Policy voice + peer support 5 Marketing Board Promotion + consumer awareness 6 Umbrella Model Flexible, lightweight collaboration Who Holds “Team Kootenay”? We’re not choosing today — we’re exploring what fits your values, capacity, and goals Today is about exploring What makes sense? What feels possible? What could grow with the industry over time? Governance Option 1: Co-operative Association A democratic business model owned and governed by its members to meet shared economic, social, or cultural needs Key Features: Member-owned (1 member = 1 vote) Types: Consumer, Producer, Worker, Community Service Funding is typically through membership fees, services, and reinvested revenue Suitable for collective marketing, retail, and services Benefits: • Democratic governance model • Shared ownership, infrastructure & resources Challenges: • Less access to grants than non-profits • Public and member misunderstanding of co-op roles • Requires high commitment and legal setup Estimated Start-up Cost: ~$3,300 Annual Maintenance: ~$150–200 (plus volunteer/board labor) Examples: BC Craft Farmers Co-op – Advocacy, networking, shared services Gabriola Ag Co-op – Markets, events, community food programming BC Eco Seed Co-op – Seed production, pooled resources, education Option 2: BC Registered Society (Non-profit) A non-profit entity governed by the BC Societies Act. Cannot operate for profit but can pay staff and reinvest in its mission. Enables regional coordination and access to funding Key Features: Must have a defined non-profit purpose; cannot distribute profits to members Requires at least 3 directors (1 must reside in BC) Requires constitution, bylaws, and annual reporting No owners; governed by a member elected board Benefits: • Broad access to public + private grant funding • Encourages inclusive stakeholder-driven collaboration • Flexible in scope and project design Challenges: • Requires significant unpaid start-up and leadership time • Funding may be competitive + cannabis stigma could limit eligibility • Ongoing administration and strategic planning required Estimated Start-up Cost: $630–$3,330 Examples: Craft Cannabis Association of BC → a nonprofit supporting small producers and rural economic diversification Capital Region Food and Agriculture Initiatives Roundtable (CRFAIR) → Sector-building + incubation + collaboration Cowichan Wineries Society → Place-branding + tourism + events Option 3: BC Benefit Company A for-profit business in BC that commits to operating in a responsible, sustainable way with a legally declared public benefit Key Features Must identify one or more public benefits; operates with a social purpose embedded in its business model Must report annually on community contributions Requires a minimum of 3 directors Benefits • Attracts investment more easily than a nonprofit • Eligible for small business support programs • Aligns profit with purpose, appealing to values-driven consumers Challenges • Higher administrative burden (reports, governance requirements) • Limited access to nonprofit grants + funding • Less collaborative than co-ops; no built-in stakeholder democracy Key Costs Name registration: $30 Incorporation fee: $350 Examples Buy Social – Pop-up marketplace for social enterprise products. Budgie Box – Gift boxes that reinvest profits into Vancouver’s small businesses; highlights producer stories. Option 4: Industry Alliance/Association/Council An Industry Alliance (also called a sector council or trade association) is an organization representing sector-wide interests like advocacy, education, promotion, and coordination Key Features Often formed under the BC Societies Act (as a nonprofit) Focuses on advocacy + collaboration; provides unified sector voice and collective identity Often dues-funded; may not quality for all grants Benefits • Strong platform for industry-wide collaboration and innovation • Supports sector-specific advocacy and policy influence • Flexible structure - can handle certifications or trade missions Challenges • Limited grant access; relies on dues, sponsorships + volunteerism • Requires unpaid leadership commitment from within the industry • Often: advocacy + market standards; less public storytelling Key Costs: Similar to NPS ($630 - $3,300) Examples BC Cannabis Alliance (informal structure) – amplifying the voice of craft growers in policy + regulatory discussions Wine Growers of BC – Marketing, tourism, and export promotion for 100% BC VQA grape wine BC Fruit Growers Association – Advocating for orchardist economic sustainability, agricultural supports, and fair crop prices Option 5: Regional Marketing Board A promotional (and often) nonprofit typically focused on a geographic area’s products or tourism assets Key Features A nonprofit structure dedicated to regional marketing May facilitate tourism and product awareness May manage certification marks (e.g., a Kootenay Quality Badge + logos, etc) Challenges Benefits • Requires unpaid leadership + administration • Coordinates regional brand and identity • Can be eligible for tourism or economic development grants • Lacks formal authority (unlike statutory boards like dairy marketing) • Encourages cross-sector collaboration (e.g., tourism, small biz) • Typically don’t provide governance solutions for entire sectors — their focus is narrower Examples Bay of Quinte – Public-private DMO promoting tourism and local industries across several small towns (craft beer, golf, etc.) Dairy Farmers of Canada – (Legislated) Uses branding (e.g., “blue label”) to market and certify Canadian dairy BC Apple Industry Marketing Plan – Engagement-based approach to revitalize a regional agri-brand Option 6: Partnership/Umbrella Organization Involves collaborating with an existing nonprofit or agency whose goals align with those of the regional cannabis industry, allowing shared delivery of specific projects under their governance structure. Key Features Relies on formal agreement with host Avoids forming new legal entity Benefits • Low start-up cost and faster project timelines • Access to established governance, admin + networks • Increases collaborative capacity and innovative opportunities Challenges • Reduced autonomy over decisions and implementation • Relies on trust in partner organization • Dependent on partner organization’s priorities + staffing Key Costs Minimal (mostly related to networking, planning, or shared project costs) Examples Craft Cannabis Association of BC & Cowichan Business Industry – Co-developing a cannabis trail Citizen-led Economic Development Study – Community groups lead rural initiatives with support from nonprofit sponsors How to Decide? Consider what matters most to you; dimensions to ponder: Dimension Why it Matters Control & Governance Do producers want direct say (e.g., co-op) or are they okay delegating to a membership elected board (e.g., non-profit)? Access to Funding Do producers want to pursue grants, generate revenue, or rely on member dues? Risk Tolerance & Legal Complexity How much time, admin, and legal complexity are producers willing to take on? Revenue Generation & Distribution Do producers want the ability to pay dividends/share profits (e.g., co-op, benefit corp)? Branding & Market Coordination Are producers primarily aiming for regional storytelling, quality assurance, export, tourism? Stakeholder Inclusion Should the model include just producers/processors, or also retailers, consumers, or institutions? Use-Case Scenarios Some scenarios to help you imagine which model fits best: Scenario A: We need grants and community legitimacy to build sector support →Best fit: Nonprofit Society Scenario B: We want shared branding + collective bargaining power → Best fit: Marketing Board, Co-op, or NPS with the right bylaws Scenario C: We want flexibility and minimal overhead while we build trust → Best fit: Umbrella or Hybrid Scenario D: We want to run a business-like operation and share profits → Best fit: Co-op or Benefit Company Scenario E: Our industry has no free time and volunteerism is difficult → Best fit: Umbrella Organization or Benefit Company (with paid staff) Scenario F: We want to include all stakeholders—not just producers and processors, but also retailers and ancillary businesses → Best fit: Industry Association or Nonprofit Society (with broad membership design) 9:30 to 9:40 10 Minute Break Workshop: Action Plan Development • 5 tables, one for each pilot. Visit all tables, if possible. Rotate as you wish. • Each station includes: • A poster or worksheet with pre-filled scaffolding • A facilitator asking: o o o o o o • What seems useful/promising or off track? What could you contribute — or what would you need to see for this to work for you? Who should lead / be involved? + Do you want to be involved? What should happen first? What’s the biggest risk? How can we tell if it’s working? What does success look like? Feedback: participants have colored markers for quick visual prioritization or agreement points (e.g., green = I support, orange = maybe/I need more info, red/pink = I have a concern) Debrief • Facilitator from each table group reports key feedback (1-2 themes) • Summary of cross-cutting insights or tensions • What are your top 1-2 priorities? • What working groups are you willing to participate on? Next Steps 1. Finalize Action Plans Incorporate today’s feedback into the 5 pilot project plans 2. Develop Workplans Define tasks, timelines, and people needed to move each pilot forward 3. Engage Government Partners Share our plans that may align on funding, policy, and support 4. Support Sector Participation – Request you review the Governance Options Report • Take a short survey – Request you join pilot working groups 5. Prioritize and Launch Key Pilots Begin execution of 2–3 highest-impact projects with strong support