Farmgate Stores enable Licensed Producers to test product innovation and build direct relationships with consumers, as well as offer the flexibility to introduce seasonal or other time-limited products throughout the year.
Under Ontario’s legal cannabis framework, federally Licensed Producers are eligible to apply to the Alcohol and Gaming Commission of Ontario (“AGCO”) to operate a single authorized retail store at a production facility located in Ontario. Farmgate Stores are licensed and regulated by the AGCO and are subject to the same requirements as all other Authorized Retailers, including purchasing cannabis products wholesale through the Ontario Cannabis Store (“OCS”).
To support the unique needs of these stores, the OCS developed an operating framework to enable Licensed Producers to sell cannabis products to the OCS that are intended for sale at a Farmgate Store, without first having to ship that product to the OCS Distribution Centre (“Farmgate Transaction”). As a result, Farmgate Stores located at production facilities across Ontario can make their products available directly to adult consumers, either in person or online for delivery or customer pickup, subject to AGCO regulatory rules.
Who Can Participate in Farmgate?
Before a Licensed Producer can commence retail sales at a Farmgate Store, they must hold:
- The appropriate licence issued by Health Canada that enables the sale of cannabis products to a provincially authorized distributor, such as the OCS.
- The appropriate licence and authorization issued by the AGCO that provide the purchase of cannabis from the OCS and the operation of a cannabis retail store.
Farmgate Store operators must also enter into contractual arrangements with the OCS that enable the sale of cannabis to the OCS and the purchase of cannabis from the OCS.
In addition to leveraging the Farmgate Transaction, Farmgate Store operators enjoy the same rights as all other Authorized Retail stores in Ontario, including the ability to purchase other cannabis products through OCS Wholesale (e.g., products listed by the OCS that are produced by other Licensed Producers).
Farmgate Handbook
The Farmgate Handbook contains the processes, procedures and conditions through which a Licensed Producer (“Supplier”) may sell cannabis products to the OCS without having first shipped such product to the OCS Distribution Centre if they have received the authorization necessary to operate a Farmgate Store. The Farmgate Handbook is included in Notice to Purchase as part of the Farmgate Product Listing process.
About the Farmgate Listing Process
The Farmgate Product Listing process refers to the end-to-end process through which a Licensed Producer can submit products to the OCS that it intends to purchase and list for sale, exclusively in its Farmgate Store.
The Farmgate Product Listing process is designed to support Farmgate as a retail channel that enables Suppliers to test product innovation and develop brand awareness. Offering Farmgate Exclusive SKUs provides the Supplier with the flexibility to introduce products throughout the year. Eligible Suppliers can proceed into the Farmgate Product Listing process. To be eligible at the time of submission, a Supplier must hold the appropriate Health Canada licence that authorizes the sale of cannabis products to the OCS and a Retail Store Authorization issued by the AGCO that provides for the purchase of cannabis from the OCS.
DEFINITIONS
Farmgate Exclusive SKUs are defined as SKUs produced by Suppliers intended for sale only within their own Farmgate Store. These SKUs will only be available for purchase through their Farmgate Order Portal and not available for sale on the OCS B2B Portal or OCS.ca. Farmgate Exclusive SKUs must be submitted through the Farmgate Product Listing process.
Farmgate General List SKUs are defined as SKUs produced by Suppliers intended for sale within their own Farmgate Store that will also be available for purchase by all Authorized Retailers on the OCS B2B Portal and on OCS.ca. Farmgate General List SKUs must be submitted through the normal Product Call process.
If you’re familiar with this process, please follow the link below to proceed to the submission forms:
How the Farmgate Product Listing Process Works
This process is for Farmgate Exclusive SKUs ONLY. Any Farmgate General List SKUs must go through the regular Product Call process.
The listing process involves three (3) stages:
- Submission: Eligible Suppliers can submit products by completing the Farmgate Product Listing submission form. The OCS will issue a Notice to Purchase (“NTP”) as confirmation of these submissions.
- Product/Vendor Onboarding: Suppliers work with the OCS to complete the listing process, build forecasts to satisfy the demand in the Farmgate Store and arrange for product to be sold into the Farmgate location. For new Suppliers, onboarding will commence during this process.
- Product Launch: The OCS purchases cannabis product from the Supplier for resale at an authorized Farmgate Store, to then allow the Farmgate Store to purchase products from the OCS.
These three (3) stages are broken down into more detailed steps below.
SUBMISSION
Opening of the Farmgate Exclusive SKU submission window
- Suppliers review the schedule and submission forms to determine which cycle they wish to submit for to make products available for sale.
- The Farmgate Listing Process will be offered on a rolling seven-month schedule to assist Suppliers in planning their production cycles and submitting items for launch.
Suppliers submit forms to Farmgate Product Listing process
- Suppliers complete the submission form, where the OCS collects critical information to onboard and make items available for sale to the Farmgate Store.
- Please ensure all product information provided during this stage is accurate. The product attributes submitted (e.g., brand name and item name) will be used to onboard the items in accordance with Farmgate Product Listing timelines.
- Please save a copy of the completed PDF form for your records.
- No late submissions will be accepted after the deadline date, and but they may be resubmitted in the next open cycle.
The OCS collects product submissions and issues NTPs
- The OCS provides Suppliers with an NTP and submission packages for all SKUs within five to 10 business days of the submission deadline.
PRODUCT/VENDOR ONBOARDING
Suppliers sign and return NTPs along with completed submission packages
- Suppliers sign and return NTPs and submission packages.
- New Suppliers onboard with the OCS as a vendor. All Suppliers are required to enter into a commercial agreement that enables product sales to the OCS.
- Suppliers must complete and submit all the documentation provided to them in the NTP package, including:
- Barcodes
- Packaging and label artwork
- Child Resistance Certificate
- Cannabis Product Specification Form
- Category Expansion Form (if applicable)
PRODUCT LAUNCH
The OCS purchases cannabis products from Suppliers for resale to the Farmgate Store and facilitates the Farmgate Transaction
- The Supplier completes the purchase order submission form for each of the item(s) required for their Farmgate Store.
- Information submitted in this form will be used by the OCS Supply Chain team to issue a PO to the Supplier.
- The Supplier will be required to upload a Certificate of Analysis (COA) form before the PO can be confirmed.
- Once the PO is confirmed, inventory can be moved to the virtual warehouse, and a Sales Order must be issued promptly by the Supplier.
Purchasing products
There are two (2) ways Farmgate Store operators can purchase cannabis products from the OCS:
- Farmgate Order Portal: Submit a wholesale order for products held in the designated space using the Farmgate Order Portal. Once an order is received and confirmed by the OCS, the Licensed Producer may move the product to the Farmgate Store on behalf of the OCS.
- OCS B2B Portal: Purchase products from the OCS Product Catalogue using the OCS B2B Portal. Products purchased from the portal will be shipped from the OCS Distribution Centre.
Product listed
- The Farmgate Exclusive SKU is listed for sale on the Farmgate Order Portal.
If you’re ready to submit, proceed to the submission forms below.
For general inquiries, please reach out to the OCS Merchandising Team at cannabis.submissions@ocs.ca.