The province of Saskatchewan is following Alberta’s lead in adopting a marketplace-primarily based technique to allocate cannabis retailer permits, a move which will drastically expand the quantity of retail possibilities out there for entrepreneurs.
By scrapping the 51-retailer limit, the province is opening the door to more quickly development in the regulated marketplace for adult-use cannabis – a marketplace that has been held back in Saskatchewan by a lack of new retailer openings.
Sales of recreational cannabis in the province have barely risen in the previous 5 months, expanding from six million Canadian dollars (four.six million) in April to CA$six.eight million in August, according to the most recent Statistics Canada information.
“We think opening the marketplace to extra retailers will support meet buyer demand though also assisting discourage competitors from unlicensed retailers,” mentioned Gene Makowsky, the minister accountable for the Liquor and Gaming Authority (SLGA), in a press release.
The SLGA will accept applications for cannabis retail permits beginning in April 2020 for communities with populations beneath two,500.
Subsequent September, the provincial regulator will accept license applications for retail outlets in all communities.
Permits for the existing crop of 51 retailers had been handed out through a lottery.
The provide of cannabis in Saskatchewan will continue to come from federally licensed cultivators and permitted wholesalers.
Saskatchewan will join Alberta and British Columbia in adopting an open marketplace technique for cannabis retailers.
Alberta has 311 listed cannabis providers.
New retailer openings are the largest driver of retail sales in Canada
Sales of recreational marijuana across Canada rose to CA$127 million in August, buoyed by new retailer openings in British Columbia.
Following a slow begin, B.C. is quickly expanding its cannabis retail possibilities. Retailer licenses issued in that province rose from 14 in March to 94 in September.
Dozens extra are anticipated to open in B.C. in the close to future.
Matt Lamers can be reached at [email protected]