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Navigator’s take on Ontario’s new cannabis retail rules

Late last week, the Ford Administration introduced the details of Ontario’s cannabis retail model, creating one of the most open and free cannabis markets in Canada.  This bold new approach is expected to generate substantial investment by aspiring cannabis retailers across the province. At the same time, there remains a number of key political and policy issues to resolve in the months ahead which will determine the ultimate size and shape of Ontario’s cannabis market. Here are some key insights from Navigator on the province’s new cannabis rules:

1. The battle for the hearts and minds of municipal politicians begins. Ontario’s cannabis bill will give newly-elected municipal councils across the province until January 22, 2019 to decide whether they will close their borders to cannabis retail stores.  At the same time, the bill limits the authority of municipalities to control where cannabis stores can be located through local licensing and land use planning. The stakes are high, particularly in major markets like Toronto, Mississauga, Ottawa and Hamilton.  In the weeks to come, aspiring retailers will be battling for the hearts and minds of municipal politicians to convince them not to opt out.

2. Dispensaries – in or out of Ontario’s retail market? The province has been clear that illegal dispensaries in Ontario who don’t close their doors by October 17th will not be eligible to obtain a licence in the legal market.  It is less clear, however, whether those who do choose to shut down by “legalization day” will be able to pass Ontario’s rigorous licensing process. Ontario’s new cannabis regulator, the Alcohol and Gaming Commission of Ontario, is tasked with looking into “the past and present conduct” of every applicant to be assured that they will act “with integrity, honesty and in the public interest”. This may prove too tall an order for many dispensary owners who have spent years operating outside of the law.

3. What is an “affiliate”? It has been widely reported that Licensed Producers were dealt a blow when Ontario’s new cannabis bill revealed that they would be able to operate a single store on the premise of a production facility.  But that may not be the end of the road for LPs.  The law does not expressly prevent an LP from having a commercial relationship with a licensed retailer, unless the licensed retailer is a yet-to-be-defined “affiliate” of the LP.  The meaning of “affiliate” will be defined in forthcoming regulations, meaning the province will be receiving arguments from all sides in the weeks to come.

4. Betting on the buffer zone. The new cannabis bill takes a pass on defining specific “buffer zones”, which refers to the minimum distance that must exist between a cannabis store and certain sensitive use areas, such as public schools.  This decision has been left for forthcoming regulations, which is sure to be causing profound anxiety among aspiring retailers who have already locked in retail locations across Ontario on a speculative basis.  They will have to wait a few months more to find out whether their locations are inside or outside of the provincial buffer zone.

Navigator Ltd. is Canada’s leading high-stakes public strategy and communications firm with a leading national cannabis practice. We apply proven campaign tactics to situations where success is critical and you can’t afford to lose.  Visit us at navltd.com.

 

Navigator Sponsors 2019 Canada Winter Games

Navigator is proud to be a gold sponsor of the 2019 Canada Winter Games being held next year in Red Deer, Alberta. Up to 3,600 youth athletes from across Canada will gather in Red Deer to compete in the 27th edition of the Canada Winter Games in 19 different sporting events, providing a platform for Canada’s next generation of international athletes to cut their teeth on one of our country’s biggest sporting stages and experience the thrill of competing at the highest national level.  

Jaime Watt, Navigator’s Executive Chairman explains, that as a national firm, “Navigator understands the importance of sport to Canadians, as well as the benefits that youth sport brings to communities across the country. Navigator has a history of supporting large-scale sporting events such as the 2017 Invictus Games in Toronto. At Navigator, we understand the important role events like the Canada Games play in building strong and healthy communities – and we are thrilled to support the hard working and talented athletes across the country. 

Lessons learned from participating in sport at a young age are applicable throughout life. Teamwork, discipline, and leadership are valuable traits which help shape today’s young athletes into the leaders of tomorrow.” 

Jason Hatcher, Managing Principal of Navigator’s western Canada operations, is a former Canada Games athlete. Jason competed in the 1989 Saskatoon games as a swimmer and has taken lessons learned in the pool as a teenager and young adult and used them throughout his career. “Sport teaches life lessons like almost nothing else can. Those hours training develop qualities such as hard work, commitment and leadership which I still use today. These kids competing at the games are not just Canada’s next generation of athletes, but also Canada’s next generation of leaders and business people.” 

Navigator also understands the importance of corporate sponsorship in keeping grassroots events like the Canada Games alive. The benefits of these events stretch far beyond the personal stories of former athletes. The economic and cultural benefit that these events create is equally important. The 2019 Canada Games has given Red Deer the opportunity to new community infrastructure such as the Gary W. Harris Canada Games Centre which will be used by members of the Red Deer community and athletes from across the province for generations to come.   

For the first time ever, the 2019 Canada Winter Games will feature a major cultural festival including concerts by local and national Canadian musicians, indigenous artists, and local groups. Another new addition to the Games is the MNP torch relay in which the torch will travel from coast to coast stopping in 48 communities across Canada before finishing in Red Deer for the opening of the Games. 

Navigator is proud to partner with the Canada Winter Games and is looking forward to watching the success of athletes from all across the country in Red Deer.