Ontario's pot industry sees hope for private stores under Ford government

Some of Ontario's licensed pot producers hope to convince Doug Ford thatprivate retail pot stores shouldoperate alongside government-runoutlets when marijuana becomes legal later this year.

On Thursday, the incomingpremiersaid he wanted to consult with municipalities, stakeholders and his caucus before deciding whetherto tinker with the current plan to open LCBO-styleretail stores.

The previous Liberal government hadbeen developinga system of government-run stores operated by the Liquor Control Board of Ontario,beginning with 40 stores this year and culminating with150 stores by 2020.

Ford hadmused prior to the election he preferred a privately-run system, though he walked that back on Thursday,saying he'd be "focusing on the LCBO" but leaving the door open to other options.

'Encouraged' by consultation comments

"We're certainly encouraged by his comments that indicate that he will be consulting," said Will Stewart, vice-president of corporate communications for Hiku, which islicensed by the federal government to produce marijuana through its subsidiary DOJA.

Hikualso operates a number of Canadian retail shopscalled Tokyo Smoke, which currently sellcoffee and marijuana paraphernalia but not the drug.

But according to Stewart, that will change soon.

Tokyo Smoke, he said,has obtainedthe right to openbetween 20 and 30 retail marijuana stores by December in Manitoba and Newfoundland.

Stewart said adual public-private system in Ontario would both increase legal access to the drug and reduce the market for illegal sales.

"By some estimates, [there are] 100 to 120 illicit stores in Toronto alone," said Stewart. "I don't think a few Ontario Cannabis Stores are really going to stem the tide."

'A store that you trust'

Canopy Growth, another licensed producer, will be lobbyingfor a storefront at their factory in Smiths Falls, Ont. much like howa winery sells its own wine, saidCEO and co-founder Bruce Linton.

Linton said that even the mayor of Smiths Falls supports Canopy's proposal, as it couldattract tourists.

Canopy Growth has also obtained the right to sell marijuana at stores in other provinces.

'The whole world is watching'

7 years ago

Duration 0:53

Canopy Growth CEO and co-founder Bruce Linton says retail systems in Ontario will likely evolve over time.

Still, Linton said he wouldn't blame Ontario's new government for being reluctantto tinker with the plan to sell cannabis through LCBO-type stores thatpublic would already be familiar with.

"Because we've had 95 years of [marijuana] prohibition, Ithink it's going to be most important you go to a store that you trust. And that will mean different things in different places," he said.

But as the country gets used to legal marijuana, both government and industry will be in a better position to understand the advantages of private retail sales, Linton said.

"I'm not sure anybody right now has a crisp answer on what's the best system," he said.