Government May Be Considering New Wholesale Model – LPC
The Ontario Cannabis Store may be closing in the future, according to this article (please see link below). The Government of Ontario will reportedly launch a consultation process in the coming weeks. This will involve industry and other stakeholders.
The Ontario Cannabis Store did not deny the rumours. In response, OCS spokesperson Daffyd Roderick said they “continuously consider how to improve operations and services.” He added that they are in “constant communications” with licensed producers (LPs) to ensure a reliable supply chain.
The rumours come less than two weeks after the Ontario Cannabis Store reported losing $42 million to March 2019. Most of those costs were related to start-up, and the agency expected “continued revenue growth” according to Roderick.
Ontario Cannabis Store Part of Larger Story – LPC
Ontario’s legal cannabis system has not rolled out as smoothly as many had hoped. Bricks-and-mortar stores took over five months to open after legalization. During that time, online sales through the Ontario Cannabis Store was the only legal market in the province. Provincial cannabis sales doubled when the first stores opened, suggesting people preferred to buy in person.
Most recently, 12 applicants of the fall lottery were disqualified for not submitting materials on time. A judge ordered a cannabis licensing stay as it reviewed a complaint from 11 applicants. The court dismissed the challenge on September 27, stating it would give its reason within 10 days.
The new Ontario Cannabis Policy Council called for “a new perspective” for selling cannabis that same week. They point to the success of the Alberta model, which now has almost 300 stores open. Whether or not calls for a new perspective had an impact on the Ontario Cannabis Store and its rumoured review process remain to be seen.
This editorial content from the LPC News Team is meant to provide analysis, insight, and perspective on current news articles. To read the source article this commentary is based upon, please click on the link below.