One year into the legalization of marijuana, the SQDC plans to reduce prices, eliminate lineups, bring in cannabis drinks and continue to take business away from the black market.

The head of the Société québécoise du cannabis gave a sit-down interview to the Gazette to mark the first anniversary of legalized cannabis in Canada on Thursday. SQDC president and director Jean-François Bergeron said ending the lineups at its busiest store, in downtown Montreal, is a top priority.

“Queues are not good. Good stores run without queues. We have worked a lot to get rid of these queues; they’re not good for our image.”

The biggest impediment to another downtown location is finding a prime piece of real estate that is the right size and meets all the legal requirements (not too close to schools, etc.).

“We are really aggressive on that file, but so far we haven’t found any good stores,” he said. “We need something close to Ste-Catherine and Peel to have an effect (on that outlet). If we find a location, we’ll do it.”

The SQDC plans to add 21 additional outlets by the end of March — bringing the total number of stores in the province to 43. That includes four current Montreal locations, with no others confirmed for the time being.

The company sold 27 tons of legal cannabis in its first 12 months of business, accounting for 18 per cent of the estimated 150 tons of cannabis that Quebecers consume annually. In the past month, the government-run entity sold the equivalent of 30 per cent of the total cannabis consumed in the province, leading Bergeron to anticipate that his organization could maintain or even increase that ratio over the next year, particularly with sales from the new stores.

Bergeron anticipates the SQDC being able to attain a 70 per cent share of the overall market during the next five years, leaving only 30 per cent for illegal dealers.

Quebec is among the top three provinces in sales of legal marijuana, along with Ontario and Alberta, despite the fact that SQDC prices are 20 per cent below the national average. Correcting for the difference, we could well be No. 1, Bergeron argued.

Not that it’s a competition. The former SAQ director is simply happy that his business is competitive and, after a loss of $4.9 million in its first quarter, that it is now in the black. The SQDC posted profits of $1.4 million in its second quarter, and Bergeron forecasts $20 million in profit for the current financial year, ending March 30.

“It’s all about migrating the black market in a secure and safe manner,” he said. “We did that well. We managed to get the right cost structure, and we are profitable today.”

Despite initial supply problems, Bergeron foresees an abundance of supply coming in the new year, which he thinks could drive down prices. Current SQDC rates for dried cannabis start at just over $5 per gram.

Low prices help compete with the black market, he said, while noting that prices can’t be too low since the SQDC is not allowed to promote consumption. Somewhere between those two options is where you can find a new product, available Thursday: a 28-gram format by Quebec supplier Hexo, which Bergeron says is in response to consumer demand, for $125.70 or $4.49 per gram,

The SQDC has about 120 products available, but anticipation is high for edibles and extracts. Those become legal Thursday and begin rollout in stores as of December.

The SQDC will start with cannabis-laced drinks and hash. Treats including gummy bears and chocolate will not be sold, in accordance with Quebec law, as they could appeal to minors.

To those complaining about the excessive packaging for many SQDC products, Bergeron is sympathetic.

“They’re right,” he said. “It’s unbelievable and we fully appreciate these comments.”

He pointed to the need to comply with labelling and child protection regulations, while affirming that the SQDC plans to petition its suppliers for more eco-friendly options. In the meantime, he is working on a recycling solution for empty containers.

One area where the SQDC can’t compete with the black market is the 30-minute delivery service provided by many dealers. And Bergeron is ok with that, for now.

“Competing against the black market is a challenge, period,” he said. “And we do it on every single thing except (delivery) logistics. But we will get there.”

Harold Simkins is impressed by the SQDC’s overall performance, while docking points for its early supply shortages and the lineups, which he says hurt credibility,

“With the start of any new business, you can expect hiccups,” said the professor of marketing at Concordia’s John Molson School of Business. “But getting 18 per cent market share in the first year of business — that’s an impressive number.”