Many large cannabis companies in Canada shut down their facilities, divested assets, and auctioned off unused equipment. The enthusiasm surrounding a new market opening up led to rapid saturation—however, the products available weren't always of good quality. Losses piled up, sometimes even leading to outright scandals like the CannTrust debacle, pushing some of the big players to focus on different areas of their business or shut down completely. While this was certainly a catastrophe for the workers who suddenly found themselves without a job, it represented an opportunity for small growers to showcase what high-quality legal cannabis was truly about. For some micro-producers looking to enter the market, those massive facilities with unused equipment also presented an opportunity to acquire components at lower prices, effectively lowering the entry barrier into the cannabis space. This is exactly what Windsor-based TaNo Cannabis did.
"We don't have any investors," says Luke Riddell, co-founder of TaNo. "We put our own money into this, meaning we can pivot on a dime without going through a chain of command, always ensuring we remain cost-efficient."
The Frankenstein monster of larger LPs
TaNo Cannabis grows its plants in an indoor facility, which was completely set up from scratch. "I would say that 95% of our equipment was bought from other failing LPs," Luke explains. "Some from Canopy, some from Hexo—even. We're kind of the Frankenstein monster of larger LPs," he adds with a chuckle.
A variety of systems are used at TaNo. Most notably, Luke explains, they propagate and veg in stone wool, while flowering is done in soil. "We find soil gives a better flavor and results at the end of the cycle." Being in an indoor setting, keeping the cannabis clean and safe from pests and pathogens is relatively easier than if they were growing in a greenhouse. "We use biologicals from Koppert—you can see a sachet hanging on every other plant." However, the main concern is water. "Because it's river water," Luke explains, "it's ever-changing, and there are also runoffs from other farms." That means TaNo needs to constantly monitor water quality, ensuring their filtration system is always performing perfectly.
A passion rooted in pheno-hunting
However, the biggest threat to TaNo's plants isn't pests or contaminated water—it's humans. Last year, Luke recounts, they experienced a major break-in, during which most of their genetic material was stolen. This was a significant blow for a company that had originally started as a producer of starting materials for other LPs. "We are very passionate about developing our own genetics. A big part of our business was providing starting material to larger producers. Now, the market is full of nurseries, but we're really good at pheno hunting, and we grow our own genetics."
Relying on prime starting material is crucial in an overly competitive market. "For the first time in the last five years, flower prices have gone up—which is beautiful," says Luke. "Pre-rolls are currently dominating the market, and for that, you need high-quality flowers. That's a great market share for us." At the same time, signs of market maturity are emerging. "The market is now more and more based on quality and entourage effects—it's not all about THC anymore." In other words, things are looking promising in Canada, but challenges remain, and Luke believes the key to overcoming them lies in regulatory changes. "They should address banking issues—it's incredibly difficult to open a cannabis business account. On top of that, overall fees are just too high, which drives up product prices on store shelves, pushing some customers to stick with the legacy market. In other words, regulations should support the industry rather than force people back into the illicit market."
Expanding
Starting as a producer of starting materials and evolving into a fully licensed indoor grower, Luke and TaNo are now looking to expand their operations—and not just in terms of capacity. "We are currently in the process of looking for properties in Windsor to expand our operations," he says. "However, this expansion will be based on a processing license, which we are also in the process of obtaining. Obviously, stage one is securing the appropriate building, and then the processor license will follow."
This will ensure that Luke and TaNo can continue building on their expertise and contributions to the market, driven by the understanding that cannabis is not perceived the same way by all customers. "Quality cannabis is something very personal. For some, it's the best type of medicine. For others, it's about THC or other cannabinoid content. For me, quality cannabis is all about bringing out the optimal traits of a plant's true genetics, growing it under the best conditions, and allowing it to express its full genetic potential."
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