Ontario is moving toward a “hybrid” REC wholesale system. Though the province will still participate in REC wholesale, private contractors will soon be allowed distribute REC to retailers. LPs have complained for some time the existence of a provincial wholesaler increased per-gram prices.
- As a “hybrid” system, it will not be fully privatized, but will allow private involvement.
- The Ontario Cannabis Store reported that over the next week, it will consult with LPs and retailers about direct-to-consumer delivery.
- Lobbyists from Aurora, Aphria, Cronos, Green Organic Dutchman, and other LPs have lobbied the Ontario government in the last month.
MJ Biz Daily
Everyone agrees something needs to change in Ontario REC retail, and most agree the principal concern is the hugely populous province’s small number of REC stores.
An Ontario government insider said the province is will abandon its doomed REC retail lottery system in favour of an “open allocation” system that would allow prospective retailers to apply online and pass background checks for quick approval to run a REC store.
- There’s no fixed date at which that system might begin, but provincial finance minister Rod Phillips said they would announce it “when conditions are right.”
- Premier Doug Ford told reporters his government did not fail in the REC retail rollout, but rather “we didn’t have enough cannabis to sell but now there’s enough supply and we’re working hand-in-hand with [LPs].”
- Industry critics continued to disagree with Ford, saying supply has been strong for some time, but Ontario is still flailing.
- One of the 24 stores that opened in Ontario since April has annual revenue of roughly $20M.
Windsor’s city council has reversed a decision delegating authority for processing individual REC store applications to city administrators after administrators, pressured by police, opposed the city’s first REC store.
- Toronto city councillor, Beaches-East York Coun. Brad Bradford, joined the fight against locating a REC store within four doors of a Montessori pre-school. He did not oppose the pub located three doors from said Montessori pre-school since 1982.