Alberta Retail Cannabis Cap Removed
Province Lifts Restrictions on Ownership Percentage and Store Numbers – LPC
The Alberta Gaming, Liquor and Cannabis (AGLC) removed the Alberta retail cannabis cap for ownership. Previously, one owner could not own more than 15 per cent of the market, and no more than 37 locations total. The Alberta retail cannabis cap is no longer necessary, the government agency said.
“Now, with more than 500 licensed retail locations province-wide — and more than any other jurisdiction in Canada — the decision was made to lift the 15 per cent (cap),” said the commission. “Removing the ownership cap is part of government’s red-tape reduction strategy aimed at creating new opportunities for businesses in Alberta and removing unnecessary regulatory barriers.”
The Calgary Herald reports that Alberta currently has 527 retail cannabis stores, which represents nearly half the total number of stores across Canada. There are no plans to limit that number. (Please see link to the full article below.)
Although opening up the cannabis market sounds like a positive move, not everyone is happy with the decision in this case.
“I hope it doesn’t turn into a situation where everything is Aurora or Nova Cannabis-owned,” said Jamie Ouellette of Bow Cannabis. The limits were put in place originally to ensure smaller players could enter the market too. “I hope we still have lots of mom and pop stores because we can cater to what our customers want.”
What Impact Will This Have on the Rest of the Country? – LPC
Alberta has become the de facto test bed in the retail market. Recently, the province decided to experiment with cannabis convenience stores. It is also a leader in the West in terms of cannabis markets, with provinces like Saskatchewan following its model. Removing the Alberta retail cannabis cap is one more step in to the frontier. Slower-to-adopt provinces such as Ontario are likely also watching closely to see how things shake out.
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