According to a recent news article in the National Post, Loblaws, the grocery store chain from the Loblaw Companies Limited group, is reportedly lobbying the Ontario government to remove some of the restrictions on where recreational cannabis can be sold.
The chain is currently operating in the cannabis industry through its subsidiary Shoppers Drug Mart, which sells medical cannabis, and its C-Shop brand, which has 11 retail locations in Newfoundland and Labrador, two in Ontario and one in Manitoba.
According to documents obtained by Global News using freedom of information laws, Loblaw is pushing for regulatory changes that would potentially allow it to sell cannabis on the same premises as groceries and other items. Under Ontario’s current cannabis retail regulations, pot stores “must be enclosed by walls separating it from any other commercial establishment or activity.”
While some Loblaws stores include Wine Rack retailers inside its footprint, the C-Shop locations are physically separated. Loblaw is also reportedly seeking to change regulations that bar recreational cannabis retailers in Ontario, licensed under the provincial framework, from being authorized to sell medical cannabis.
“This unintended consequence is both limiting investment in Ontario as well as preventing established retailers from providing strong support to the newly forming Ontario Cannabis sector,” a submission from Loblaws argued, per Global.
However, the sale of medical cannabis is regulated under the federal Cannabis Act and is handled directly by federally licensed producers, often through online platforms. The news arrives just a few weeks after another change to the Ontario regulations was implemented. As of New Year’s Day, the cap on the number of stores a licensed cannabis company can operate has increased from 75 to 150.
