Today’s announcement that Ontario will move to allow beer, wine, and other alcoholic beverages to be sold in convenience stores should be welcomed not only as an election promise kept by the government but also as a hopeful hint of things to come for the struggling cannabis sector.
The plan would allow all grocery stores, convenience stores, and gas stations to sell beer, wine, cider, and pre-mixed cocktails (known as RTDs – Ready To Drink). It achieves this by scrapping the Master Framework Agreement between Ontario and The Beer Store. The MFA expires in 2026, so this new arrangement will not be effective until then.
Does it make sense? That would depend on who you are talking to. However, there is no evidence that inconvenience achieves anything in making alcohol less harmful to society. The change is welcomed by the thousands of retail operators who are currently excluded from the current framework. With the government’s eye now turned to making changes to improve convenience and increase competition, perhaps it is an excellent time to also re-think the provincial regulations around cannabis sale and consumption.
Consumption lounges have been seen as an economic opportunity since before legalization, but between COVID and a host of other priorities, it simply has not come to fruition.
Ontario still very poised to take a position of leadership on supporting the cannabis sector and reducing stigma. Licensing restaurants, festivals, and event spaces for the sale of cannabis and cannabis-infused food and drink would create economic opportunity for multiple sectors: hospitality, cannabis and tourism. The cannabis sector has demonstrated responsible operations and an entrepreneurial spirit since legalization and this would give the sector a much needed boost.
It would also add a critical tool in achieving the original goal of legalization: supplanting the illegal market. The once-rapid migration from the illegal market to the legal market has slowed down significantly. The latest data from Stats Canada shows that roughly 30% of the market remains outside of regulation. Leaving the debatable accuracy of this number aside, this leaves billions of dollars of transactions outside the framework and forgoes revenue the government could definitely use for a host of other priorities.
With no contracts in place that need to be cancelled or negotiated, rolling out policy changes could be accomplished very quickly and for very little cost. It’s a logical and helpful next step for the cannabis sector and it will create economic opportunity for a beleaguered hospitality sector.
