CANNABIS TO BE SOLD THROUGH PRIVATE RETAIL UPON LEGALIZATION
It’s a wild and surprisingly unpredictable time in the budding cannabis industry…
In the following, we will bring some light to the topic of the status of private vs public retail cannabis sales in Ontario, as well as briefly touching on shortage of supply, lack of experts, and an eventual abundance.
Finally, we will take a look forward at the cannabis industry events coming up this summer!
TABLE OF CONTENTS
i. Private retail in Ontario
ii. Grey Market
iii. New Ford Government Plan
iv. Supply & Demand and Expert Concerns
v. Upcoming Events
What You Need To Know: Retail
There is no question that our legal framework and retail infrastructure will be in place on October 17th.
However, there is significant uncertainty surrounding whether these cannabis producers will be able to supply the market upon legalization.
Regardless of the changes to the retail system, Lift & Co., one of Canada’s premier cannabis news and informational platforms supports the fact that there could be a shortage.
We are seeing massive projections being put out by these LPs to highlight their incredible capacities and unrivaled potential, but the fact of the matter is we will see an abundance of cannabis following soon-after the shortage(s).
Now we have come to an incredible change with the Ford government flipping to plan on the OCS and instead following a (primarily) private retail system for cannabis.
This move is in stark contrast to the LCBO and how Ontario has typically handled ‘illicit’ and regulated substances. All we can do now is wait and see the expanded and detailed plan that will be released by Ontario Conservatives.
EXPERTS CONCERNED: SHORTAGE & ABUNDANCE
Hamilton, Ontario or otherwise known as The Steel City has recently also been given a new nickname:
The Wild West of Illegal Cannabis Dispensaries
The name albeit not all that catchy, is definitely true. At this point, there are more than 50 cannabis dispensaries operating outside of the ACMPR and legal boundaries of medicinal cannabis.
The owner of the longest operating grey market dispensary has stated that he’s seen Cannabis Culture Hamilton serve “anywhere from 1,100 to 1,500 people a day.”
Many critics claim that the black market will continue to thrive post-legalization, however, the recent major change in Ontario has brought out debates from both sides.
Some claim that the privatization of retail cannabis will support the black market although a convincing case can be made that the previous Liberal party’s Ontario Cannabis Store (OCS) plan would lead to significant issues.
The City of Hamilton and it’s police force have become diligent in the recent weeks in raiding and eliminating these illegal dispensaries, however some have remained resilient and re-opened after raids.
“He would not say what form the stores would take or whether existing marijuana dispensaries — which are illegal — would be allowed to apply for cannabis sales licences.”
-Rob Ferguson, Toronto Star
July 30th, 2018 Article
The New Ford Government
The new Ford government has definitely been shaking things up across the board, however, when it comes to cannabis — many have been very pleased.
Conservatives have opened the private retail floodgates and announced that the LCBO-style system by which cannabis was to be sold will not come to fruition. However, we have seen an interesting turn of events as a result of agreements made with the OPSEU (Ontario Public Service Employees Union) to train OCS staff.
Randstad has begun and is continuing to hire staff for the OCS regardless of the new Provincial governments recent decision. This mix of Private & Public sales would mimic that of British Columbia.
Warren Thomas, President of OPSEU, said: “What on earth are they smoking at Queen’s Park?” as they believe that organized crime will take over the retail side of cannabis sales. Thomas also stated that this new system would potentially lead to an increase of cannabis access to youth.
Which would you rather?
An LCBO-style system of government operated cannabis retail outlets, a completely private and open retail market, or a combination of public & private?
Aphria’s cultivation facility in Leamington, Ontario.
Pictured left
Aphria’s cultivation facility growing approximately 17,000 cannabis plants.
Aphria has been a notable name in the budding cannabis industry, being grouped in to the ‘Big Three’ alongside Canopy Growth Corp., and Aurora Cannabis.
Experts feel that there may be other problems that arise which could be the future cause(s) of shortages, like roadblocks and delays in the new diverse licensing process.
Many capacities, estimates, and projected yields are accounted for at final stages of build-out which, in the case of some Licensed Producers, is 2-3 years out.
In fact, Lift & Co., believe that there could be a cannabis shortage as we step in to legalization.
Most companies, even some of the most well-known LPs, are still generally under 50,000SQ FT of canopy space.
After working alongside producers and applicants, we’ve come to see these massive capacities and build-outs on the horizon continually grow in size and spectacle.
LOOKING FORWARD
Interested in the cannabis industry, legalization news, and upcoming Canadian business opportunities?
Then be sure to check out these exciting events coming up soon!
With a focus on the grow side of the industry, GrowUp brings together the best cultivators, technicians, propagators, and all-things-cannabis experts.
One of Canada’s largest cannabis events, bringing together professionals from all aspects of the CannaBiz, from all corners of the world.
With the goal of spreading education, knowledge, collaboration, and growth in the cannabis industry, Grow Up Conferences is sure to please those involved with cannabis in any regard.
The Main Conference & Expo pass is $349CAD, however, the 2-Day Exhibit Hall pass is only $30CAD. The Exhibit Hall pass doesn’t include Keynotes, conference sessions, or panels.
In just under two weeks we will see a culmination of experts, leaders, and icons in the cannabis industry come together in Toronto for MjBizCon International 2018!
Bringing together over 2,000 attendees and nearly 150 exhibitors focus on the world of cannabis business.
Exhibits & Expo Hall access passes cost a hefty $399USD or you can include the Main Conference Sessions for an extra $200USD until August 10th.
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