Licensed Producers: How many more can we expect?
As of the date of writing, there are 109 federally licensed producers in Canada. 21 of those licenses have been received since January, 2018. With Health Canada’s expedited licensing process and the expected demand of the market once recreational cannabis is legal, it is expected that more producers will make their way through the licensing process before the Bill receives Royal Assent. Perhaps of interest even moreso than the total number of LPs is the number of sales licenses that will come online by the time fall rolls around.
Will Premier Doug Ford change Ontario’s Retail Model?
While on the election trail, Dough Ford did not have much to say about his plans for cannabis sales (or consumption) in the Province of
Ontario. However, Doug Ford has previously stated that he would be open to privatizing cannabis retail sales in Ontario. It is entirely possible that at some point under Doug Ford’s leadership, Kathleen Wynne’s plan for the government-owned “Ontario Cannabis Store” may be changed. How far of a shift from public to private retail (if at all) and how quickly that shift may occur, are two things to keep your eye on.
Who will supply to the Ontario Cannabis Store?
As of February, 2018, the Ontario Cannabis Retail Corporation had not entered into any supply agreements with specific federally licensed producers, although it had participated in its first round of a product call (the results of which have not been finalized or disclosed). Although Ontario is positioned to be one of the largest markets for cannabis retail in Canada, the products that will be on the shelves of the OCS are still unknown to the public.
The supply framework is in the process of being finalized. Representatives of the OCRC have indicated that each licensed producer in Canada will have an equal opportunity to supply to the OCRC. “Opportunity” does not necessarily equal shelf space.
The Retail Model in British Columbia
The British Columbia retail model will be a hybrid approach where British Columbians will be able to purchase recreational cannabis through either privately-run retail stores or government-operated stores and online sales.
British Columbia initially indicated that its application portal would open in spring 2018. Each of the other provinces that committed to private retail have either opened their process or already selected who private retailers will be. British Columbia has not yet opened its process and many are wondering when this may happen and what the timeline will be for the private retail market in the province.
While many viewed the passing of Bill C-45 by the Senate a historic event (which it was), there are still many interesting items to watch as we move through the summer.
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