Monopoly over? Ontario said to announce big change in plans for marijuana retailing under Doug Ford

Evidence mounting that new government will allow private sector to sell pot

Canada’s biggest market for legalized marijuana may end up being a bit more laissez-faire than first imagined.

According to reports from the Globe and Mail and Vice News, the Ontario government is preparing to announce that it will allow private stores — not just government-owned ones — to sell recreational cannabis when it is legalized on Oct. 17. The province is reportedly still expected to control the distribution of marijuana to the stores, as well as maintain control over online sales.

The Ontario government will reportedly allow private stores to sell marijuana once recreational cannabis becomes legal on Oct. 17.Canadian Press/Darryl Dyck

The move would be a significant shift from the previous plan for pot sales in Ontario. Under the previous Liberal government, the province had been on track to sell cannabis in-person and online through a government-run monopoly. As part of that plan, the Liberals proposed to open 150 brick-and-mortar stores by 2020, including 40 by legalization.

But the Liberals are no longer in power. Premier Doug Ford and the Progressive Conservative Party he leads ousted the Grits in Ontario’s June election and now control the province’s future when it comes to selling marijuana.

Since then, evidence has been mounting that the previous pot plan may be subject to some tweaks from Ford and Co.

A member of Ford’s transition team — Mike Coates, who sits on the board of directors for cannabis firm Cronos Group Inc. — told trade publication Marijuana Business Daily recently that “everything would be on the table, from what (former premier Kathleen Wynne) was prepared to put in place, straight through to a private sector solution to distribution.”

Meanwhile, the Ontario Cannabis Store, which was slated to be the province’s pot retailer, has not posted an update on its website since April 11. Rumblings about a possible sea change for retailing cannabis in Ontario had been felt by the industry as well.

There were signs even before this that Ford may do the drug business differently. In March, he made comments to Ottawa’s CFRA radio station that suggested he favours a more open approach to the distribution of alcohol and legalized cannabis.

Later, the platform Ford and the PCs ran on included a vow to expand beer and wine sales into convenience stores. After the election, the premier told reporters that “we’re going to consult with the local municipalities and we’re going to make a decision after we talk to caucus,” according to the Canadian Press.

The system Ontario is reportedly adopting would be similar to that of Alberta, which has also proposed to sell legalized cannabis via privately-run and government-operated channels.

A spokesperson for the Ministry of Finance, which oversees the Liquor Control Board of Ontario, and therefore, the Ontario Cannabis Store, had previously told the Financial Post in an email that “the government has been working to launch a cannabis retail and distribution system to meet the federal legalization timeline of October 17, 2018.”

“Ontario will be ready with a system in place that meets the objectives of protecting youth and eliminating the illegal market,” they added.

Original Article – Financial Post