Eight companies have made applications to the province of New Brunswick to take over operations of Crown REC monopoly Cannabis NB. Among the eight are Loblaw, the country’s largest food retailer, Canopy, the largest LP, and REC retail chain and Fire & Flower, as of this week operating 45 stores across Canada.
MJ Biz Daily
- One insider noted Loblaw already controls 40% of Newfoundland and Labrador REC. “Toss in [Loblaw property] Shoppers Drug Mart with medical cannabis and safe to say Loblaws has had its eye on this market for some time.”
- The date of “anticipated execution of agreement” is July 3, 2020.
- As a Crown company, Cannabis NB opened 20 stores across a variety of New Brunswick communities, and some are significantly more profitable than others. The winner is not required to continue operating all 20 stores, meaning some communities may lose their REC store.
Brock University professor Michael J. Armstrong, a frequent commentator on REC retail, argued New Brunswick should follow Nova Scotia’s lead in selling REC in liquor stores, since “They don’t have a lot of fixed costs to cover that way, which means they don’t have to sell very much cannabis.”
CBC New Brunswick
- In 2016, chief medical officers in all provinces and territories along with the chief medical officers of health in 21 Canadian cities strongly encouraged governments not to allow REC to be sold in the same stores as alcohol. Nova Scotia’s decision to ignore those recommendations was controversial.
The Straight, CBC Nova Scotia