Open Allocation Key To Growing Cannabis Industry and Long-Term Economic Success

(Toronto – December 12, 2019) – Today, the Ontario Cannabis Policy Council (“OCPC”) released a statement in response to the Ontario Government allowing more cannabis retail stores by OCPC Co-Chairs Daniel Safayeni, Director of Policy, Ontario Chamber of Commerce, and Trevor Fencott, Chief Executive Officer, Fire & Flower Cannabis Co.

“The Ontario Cannabis Policy Council (OCPC) applauds the government’s announcement to end the lottery system and move towards an open allocation model for private retail cannabis licenses. The OCPC has long called on the Government of Ontario to address any remaining hurdles in moving towards opening more retail stores through an open allocation system.

“With Ontario home to more than half of the recreational licensed producers (LPs), the majority of cannabis employment, and the largest domestic consumer market, opening up Ontario’s cannabis retail market will have a positive effect on job creation, investor confidence, and the economy. More retail outlets also means improved consumer access, which is necessary for combating the illegal market and safeguarding public health.

“Today’s announcement is a critical step in opening up Ontario’s cannabis retail system. Beyond this, we must ensure private retailers and LPs can operate in a regulatory environment where they can compete effectively with the illicit market. To that end, the OCPC calls on the Ontario government to continue along a path of reform and allow LPs to directly negotiate with retailers.

“Having a direct commercial relationship between LPs and retailers will be a cornerstone in establishing a fair and competitive marketplace. Under this model, LPs and retailers would be allowed to negotiate their product mixes, prices, terms, and conditions. It would also allow retailers and craft LPs to succeed by building their brands, driving sector efficiencies, and focusing on specialty areas of the market. The Ontario Cannabis Store, meanwhile, could maintain its oversight as retailer.

“Today’s announcement is a critical step in opening up Ontario’s retail market to deliver economic growth for the province and, ultimately, be a global leader in the recreational cannabis space. The OCPC will continue to work with government on further reforms to help establish a competitive and efficient retail market.”

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For more information please contact:
Ceara Copps – Edwards, Senior Advisor, Public Affairs
Ontario Chamber of Commerce
647-936-6734 | cearacoppsedwards@occ.ca

The Ontario Cannabis Policy Council
The Ontario Cannabis Policy Council (OCPC) is comprised of industry leaders and experts whose primary focus is addressing the key issues impacting Ontario’s adult-use cannabis industry. Following the release of the OCC’s report Supporting Ontario’s Budding Cannabis Industry, the Council’s primary focus is advocating for the industry’s growth across the province. The Council is co-chaired by Daniel Safayeni, Director of Policy, Ontario Chamber of Commerce, and Trevor Fencott, Chief Executive Officer, Fire & Flower Cannabis Co.