As more and more Canadian provinces scramble to develop a tight-knit recreational cannabis legislation, there are two groups that are being formed along the way — one is made up of provinces who’d like a complete control over wholesale, retail and distribution of recreational cannabis and another consists of provinces that are ready to give their small businesses a bit more control and trust.
Saskatchewan is now the second-to-last province to announce their retail model (Nunavut is the only one left), which states that recreational cannabis will be sold through 60 privately owned retail stores in 40 municipalities.
The announcement, made on Monday, also says that the initial allocation of storefronts will be in municipalities and First Nations with the minimum population of 2,500 and that larger communities will be given multiple retail permits.
By adopting this plan, Saskatchewan joins BC, Manitoba, New Brunswick and Newfoundland, who have all opted for private retail model with their Liquor commissions and authorities regulating distribution and wholesale.
The rough annual retail market for recreational cannabis in Saskatchewan is estimated at around $132 million, which puts the demand way above what the Saskatchewan government is estimating.
The government of Saskatchewan took a lot of time to decide on their retail model, which comes as no surprise given the fact that as much as 4 ministries were involved in it.
Saskatchewanian seem to be perfectly fine with this decision, as this latest set of legislations perfectly reflects the opinion they voiced in their government’s legal cannabis survey, where 62% said they would like to see a combination of online sales and walk-in stores and as much as 37% were in favor of small business retailers.
This now gives a slight advantage to each of the 25 established dispensaries in the province, as they will probably be one step closer in getting the retail license. In addition, they will be able to instantly open their online stores, which will undoubtedly cause an even greater demand, having in mind that it enables home delivery of cannabis products.