Quotulatiousness

April 29, 2019

Cannabis stores struggling against cheaper black market weed outlets

Filed under: Business, Cancon, Law, Liberty — Tags: , , , , , — Nicholas @ 05:00

In a rational world, a license to sell legal cannabis from a storefront where you have almost a legal monopoly would be a license to print money — the market demand is very clearly real and widespread. Yet Toronto’s legal cannabis stores are still suffering:

How much would it suck to go through all the trouble of opening a legal weed store, only to have dozens of people do the exact same thing without paying for permits, inspections or meeting any sort of government regulations?

How much would it suck to then watch these people not only get away with their illegal operations, but do so while luring your customers away with cheaper prices?

Probably as much as it would suck to sink years of your life into building a retail cannabis business and then learning that only 25 of such stores could exist in all of Ontario — and that the owners of those stores would be chosen at random.

It’s been nearly one month since Doug Ford’s PC government allowed the first wave of brick and mortar retail cannabis stores to open across Ontario. Three have launched so far in Toronto, where five licenses were issued in total, but many consumers aren’t pleased with consistently long lines and higher (than pre-legalization) prices.

So, like the rest of Canada, Toronto continues to buy black market weed.

Roughly 20 unlicensed dispensary storefronts are still up and running across the city as of April 25, in addition to more than 100 illegal marijuana delivery services.

You can find them all on WeedMaps, a popular online cannabis community that’s been listing these types of businesses for adult consumers in North America since 2008.

It’s not that police and bylaw enforcement officers can’t find these illicit dispensaries — I mean, operators are advertising their locations and menus online for all to see.

The problem is that no level of government can (or will) shut them down for very long.

“Why not?” you ask? Well, it’s complicated.

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