Ontario government’s marijuana monopoly could weed out craft growers
TORONTO — Ontario’s plan to sell and distribute recreational pot exclusively through a network of government-operated stores could lock in the dominance of the country’s large-scale licensed marijuana producers and weed craft growers out of the market, industry experts said Friday.
Two of the country’s biggest producers, Aphria Inc. (TSX:APH) and Canopy Growth (TSX:WEED), cheered the province’s plan to have the Liquor Control Board of Ontario operate a network of standalone marijuana stores as well become the sole online recreational seller. They also welcomed the government’s pledge to stamp out illegal dispensaries, eliminating them as potential competitors.
Aphria’s chief executive Vic Neufeld said Ontario’s plan — the first province to announce its approach — helped bring some much-needed clarity to the future landscape of the recreational marijuana market.
“Selfilshly, I’m really glad to see that the supply chain through the Ontario brick and mortar, and online, is coming from licensed producers across the country,” said Neufeld.