November 15, 2017
Partner Cheryl Reicin has told TVO that Ontario’s proposed cannabis legislation might end up favouring larger producers, rather than smaller boutique ones.
Cheryl’s comments came in a November 15 article that looked at how smaller cannabis producers would fare when the substances becomes legal on July 1 next year.
The article states “[t]he federal government’s Cannabis Act, Bill C-45, stipulates that it will be responsible for licensing production, while distribution and retail will be left up to the provinces and territories. In early November, Ontario introduced its legislation, which mandates that cannabis be sold through a new retail outlet — a subsidiary of the LCBO.”
“For the legislation, we still don’t know. We assume, because there’s going to be one buyer, that it might favour the larger [producers]. But remember that local beer crafts are actually represented in the LCBOs,” Cheryl told TVO.
“I think the bigger issue is that bigger producers are going to be favoured, period. When you look at the liquor industry, when you look at the cigarette industry, there’s been a few big companies that have really taken over, in large part because there’s synergies, and you can get lower costs by being bigger and putting things together in a more efficient way.”
Torys lawyers have written extensively on the cannabis industry and you can read that content here.