Canadian Food Producers Seek Opportunities in Cannabis Legalization

Despite the final version of Canada’s federal cannabis legalization law including a strict ban on the production and distribution of food products containing psychoactive cannabis extracts, many companies are planning to capitalize on legalization by releasing special versions of snacks aimed at satisfying the appetites of cannabis consumers.

On October 17 of this year, Canada will fully legalize the consumption, cultivation, and sale of cannabis nationwide. However, the legal production and sale of cannabis-infused foods will remain prohibited for at least a year after the reform begins. In the meantime, many producers and importers of snacks like chips and cookies are looking to take advantage of full legalization to boost sales by offering products designed to satisfy the munchies often associated with cannabis use.

Hershey Canada’s Oh Henry! 4:25 Bar

The first step was taken by Hershey Canada, which released a chocolate bar called Oh Henry! 4:25 in early July (ahead of the originally planned start date for federal reform). The name is a clear nod to the “4:20” phenomenon, significant in American and global cannabis culture. The product’s slogan makes its purpose obvious: “Oh Henry! – The bar that satisfies your hunger five minutes after 4:20!”

Canada is now the second country in the world (after Uruguay) to fully legalize personal cannabis use, marking a major cultural milestone. Jackson Hitchon, director at Hershey Canada, believes the new bar is the perfect brand for the era of cannabis reform. “This way, Hershey can participate in such a significant event as national legalization without directly producing psychoactive cannabis products,” Hitchon said in an interview.

To promote the new brand, Hershey used mobile kiosks to distribute free samples. The Oh Henry! bar is one of the company’s oldest brands, which had faded in popularity by the early 21st century, making it an ideal candidate for a “revival” as a signature snack for cannabis users. The mobile kiosks were styled like cannabis dispensaries: staff in lab coats handed out bars stored in large glass jars, similar to those used for curing cannabis buds.

“You could say the product only lightly references cannabis use, not making a direct or explicit connection. I’m confident this kind of advertising won’t raise concerns with officials, while still resonating with recreational cannabis users,” Hitchon added.

Advertising Rules and Loopholes

The bar can be freely advertised in Canadian media, unlike actual cannabis products or brands, which face strict restrictions in public spaces and mainstream media. Cannabis companies are banned from advertising in print, on TV, or through outdoor ads like billboards. However, recent amendments to federal Bill C-45 allow cannabis firms to advertise online, on radio, and by distributing branded merchandise with logos and slogans.

Companies not directly involved in cannabis production can freely advertise their products and services, as long as they don’t use cannabis imagery or promote consumption in a positive light. Advertising expert Brad Poulos, a graduate of the Ted Rogers School of Management, notes: “The government strictly regulates cannabis advertising, so by avoiding references and images of the plant, companies can work around the restrictions.”

Snack Brands Targeting Cannabis Consumers

The potential for new revenue streams has attracted some companies with direct ties to the legal cannabis industry to create snack brands for cannabis users. For example, 4:20 Grasshopper’s Gourmet, founded in Vancouver by cannabis chef Kenny Vanucci, launched a line of gourmet travel snacks for tourists who enjoy cannabis while exploring nature. The line is called Sticks and Stoners.

“Basically, it’s a healthy and delicious alternative to the greasy, unhealthy food many stoners crave during a sudden case of the munchies,” Vanucci said in an interview.

Another Vancouver company, MedReleaf, a well-known medical cannabis brand, began producing cannabis-flavored snacks (without cannabinoids) in early July. In partnership with AltaVie, they launched Cannabis Crunch—crunchy chocolate candies with chewy nougat and coffee and cannabis flavors.

American and Canadian Fast Food Promotions

American companies have also jumped on the trend. At the start of the year, coinciding with California’s full legalization, fast-food chain Jack in the Box released the “Merry Munchie Meal” in major cities, featuring two tacos, five churros, and three chicken strips for $4.20. The campaign was promoted in partnership with rapper and cannabis industry investor Snoop Dogg, who advertised the offer on his media platform Merry Jane.

Canadian fast-food company Foodora launched a similar “Hot Box” promotion for April 20, delivering baked chicken meal kits to customers in Toronto, Montreal, and Vancouver. The kit included a free “stoner’s gift” with a disposable lighter, a pack of mints, and cheap sunglasses. According to Foodora head Matt Rice, a similar promotion with special food kits and gifts may be repeated on October 17, legalization day.

Market Potential and Industry Outlook

Many companies hope to enter the cannabis food production and marketing space as soon as possible. Recent polls show that over 60% of Canadians are interested in consuming cannabis in snack or beverage form. Deloitte analysts estimate that the Canadian market for cannabis-infused foods could generate at least $7 billion in profit in its first year.

For example, last year, Californians purchased $180 million worth of food and beverages with psychoactive cannabis extracts, accounting for about 10% of all legal cannabis sales in the state.

Food industry analyst Sylvain Charlebois of Halifax University believes the introduction of cannabinoid-infused foods will radically change Canada’s $200 billion annual food market. “It will be interesting to see how different brands adapt to the legality of cannabis products,” Charlebois said in an interview.

He also noted that some companies, especially “family” brands, are not only slow to join the market but are openly opposed to it. “These companies simply don’t want to risk associating their established brands with a substance that was, until recently, considered a drug. Of course, their attitudes may change as society gradually gets used to cannabis’s new legal status,” the analyst concluded.