Ontario’s Evolving Cannabis Scene: New Regulations and Markets

The start of 2024 has brought significant changes to Ontario’s cannabis sector, which is still finding its footing.

On New Year’s Day, new regulations were implemented that increased the number of stores an operator could manage, raising the limit from 75 to 150. This surprised many smaller cannabis businesses, who claimed it would primarily benefit a few large companies.

Additionally, Global News reported that grocery powerhouse Loblaws might be exploring opportunities in the cannabis market.

Loblaws’ lobbyists have been advocating for changes in retail rules with the Ford government since at least 2019, including a request for a model that would allow them to operate cannabis shops within their existing grocery stores.

This shifting landscape has some retailers keenly looking at new markets for expansion while hoping for additional changes to make it easier for small businesses to flourish in this industry.

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For years following legalization, Ontario’s cannabis scene seemed stable: many municipalities opted to permit weed shops while others chose not to participate.

This changed in 2023 when Mississauga became the first major city to signal it might lift its ban on licensed cannabis shops and allow them to sell legal marijuana.

By mid-April, the city followed through on its indication, allowing applications for legal stores as new businesses began opening up throughout Mississauga.

A key factor cited by lawmakers for this decision was their inability to combat the illegal market without providing a licensed alternative.

“We are not addressing the black market whatsoever,” former Mississauga mayor Bonnie Crombie stated in April 2023. “In fact, I have to believe we are promoting the black market by not allowing legal shops to open.”

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1:33 Mississauga councillors vote to lift ban on cannabis stores

Matt Piotrowicz, who founded Purple Tree Cannabis, quickly entered this newly-opened market.

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He mentioned to Global News that compared with Toronto’s initial launch of cannabis sales, Mississauga’s market felt less crowded and more conducive for healthy competition. He noted that allowing licensed retailers had helped tackle illegal operations in the area but acknowledged they still exist.

“There’s still a couple of illegal stores just up the street from us that we’re competing against right now,” Piotrowicz shared. “But I feel good that in the future those stores won’t exist as people have more access to legal cannabis.”

He expressed optimism alongside many other retailers about whether other cities will follow Mississauga’s lead.

2:26 Markham, Mississauga opt out of cannabis stores

A number of cities within the Greater Toronto Area continue resisting requests from retailers wanting expansion. Cities like Oakville, Markham, Vaughan and Richmond Hill remain firmly against licensed cannabis outlets.

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If Oakville decides to change its position on this issue, Piotrowicz said that’s where he hopes his business can grow next.

“Oakville is pretty much the one we’re looking at next; it’s almost 100 percent in the books as long as we can find a good location,” he remarked.

The team at Global News reached out to Oakville along with Markham and Vaughan regarding any potential shifts in their stance. Both Vaughan and Markham reiterated their ongoing opposition towards licensed shops remains unchanged.

While some businesses eye new territories for growth opportunities, operators are voicing concerns about how far from ideal things currently are under existing regulations. An industry group representing small firms highlighted various issues affecting their operations rather than focusing solely on increasing store caps as priority adjustments needed now.






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