After several weeks of industry chatter, Ontario provincial leaders on Aug. 13 announced their intent to regulate private retail operations in the impending Canadian adult-use cannabis market.
Nationwide, sales will begin Oct. 17. In Ontario, the private stores are expected to open April 1, 2019. In between those dates, the province will operate an online sales portal and a home-delivery system through the Ontario Cannabis Store.
The OCS will also act as the wholesaler for private dispensaries—although companies will be permitted to vertically integrate their own cultivation and manufacturing operations.
“Ontario will be ready,” Attorney General Caroline Mulroney said, with a nod to both the October and April benchmark dates. “We will be ready to put in place a safe, legal system for cannabis retail that will protect consumers.”
The move comes just two months after Progressive Conservative Leader Doug Ford swept his party into provincial rule and brought with him a political appreciation for the private sector. Previously, under the former Liberal party rule, Ontario had planned to open 40 government-run cannabis retail dispensaries under the Liquor Control Board of Ontario (LCBO).
As the OCS prepares for its online sales and deliveries, the province will set up a “consultation process” with private businesses in anticipation of the April 1 retail date, according to the CBC.
Cities will be able to opt out of cannabis retail. Still, retailers have been scouting locations across the province for some time now. It’s unclear for now how many retail businesses will be licensed in Ontario or whether the province will institute a cap on how many licenses a business may be allowed to hold.
Minister Vic Fideli also addressed the cannabis dispensaries currently operating in Ontario, saying that they are not properly permitted to do so. "For those engaged in the underground [cannabis market] today, our message is simple: Stop.”
Toronto Mayor John Tory’s office supported the province’s stance on public safety in a press statement: "Finance Minister Vic Fedeli made it clear that safety is the Ontario government's top priority when it comes to cannabis sales. That is absolutely Mayor Tory's top priority and he wants to see exact details on how that safety will be ensured before supporting a private retail model."
Top photo courtesy of Adobe Stock
