Canopy Growth empire expands as company wins joint bid to run marijuana stores in Manitoba

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Canopy Growth Corp. is expanding its empire to operate cannabis stores in Manitoba.

The Manitoba government announced Friday that the Smiths Falls-based company, operating in a consortium with Winnipeg cannabis grower Delta 9, was one of four winning proposals given “conditional acceptance” to operate stores in the province.

The federal government plans to legalize recreational marijuana, but the provinces choose how and where it will be sold.

Ontario and Quebec have opted for stores run by their provincial liquor boards. In Manitoba, distribution will be handled by the province’s Liquor, Gaming and Cannabis Authority, but cannabis will be sold in privately-run, stand-alone stores.

Canopy is the world’s largest medical marijuana company, with production facilities operating or planned in seven provinces as well as operations abroad.

Canopy has already signed deals with five provinces to supply recreational cannabis: Newfoundland, New Brunswick, P.E.I., Quebec and Manitoba. The supply deal with Newfoundland also includes the right to operate four stores in that province, said Canopy spokesman Jordan Sinclair. One of the stores will be at the site of a new production facility Canopy plans to build near St. John’s, said Sinclair.

The company would love to operate a store at the huge Smiths Falls grow-op, said Sinclair. However, the provincial government has nixed that idea. A subsidiary of the LCBO, the Ontario Cannabis Retail Corp., will operate marijuana shops in Ontario.

The provincial Liberals have said the LCBO has the experience and expertise to run cannabis stores safely and responsibly.

Cannabis activists are lobbying to open up the market to private operators, an idea that is looked on favourably by two of the four candidates running to become leader of the Ontario Progressive Conservative Party. In a televised debate Thursday, candidate Caroline Mulroney said the private sector is “better placed to do it,” but more consultation is needed. Doug Ford said he doesn’t like government monopolies of any business.

A provincial election is coming up in June.

The Ontario Cannabis Retail Corp. is now scouting out locations for the first 40 stores the province has promised to open when cannabis become legal.

That date will be later than expected. The federal government had been aiming for July, but it’s more likely to be August or September.

The timeline became more clear on Thursday after a deal was reached in the Senate to take a final vote on the Cannabis Act by June 7. Health Minister Ginette Petitpas Taylor says it will take two to three months to implement the law after it is given royal assent, because provinces and cannabis companies need time to prepare.

The three other winning proposals to operate stores in Manitoba are:

* National Access Cannabis, which operates a string of medical marijuana information clinics, including one on Wellington Street in Hintonburg

* Tokyo Smoke, which operates cannabis accessory, clothing and coffee shops

* a consortium that includes Avana Canada Inc. of Ontario, Fisher River Cree National of Manitoba, Chippewas of the Thames of Ontario, MediPharm Labs in Ontario and U.S.- based retailer Native Roots Dispensary

jmiller@postmedia.com

twitter.com/JacquieAMiller

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