Ontario plans to allow the private sector to handle distributing cannabis from producers to retailers, a sign that the provincial government is beginning to reduce its legal pot exposure.
According to an email sent by an Ontario Cannabis Store (OCS) executive to Canadian licensed producers late Tuesday that was obtained by BNN Bloomberg, the new measure to allow for a “third-party centralized distribution” system comes following feedback the government-run agency solicited last month after it engaged with the industry to determine whether it should get out of its wholesale cannabis business. It is unclear when the OCS plans to let a privately-run company handle product distribution.
“It is expected that these activities will continue to drive cost efficiencies for the industry and result in ongoing expansion of product assortment and service levels, thereby supporting future product development and innovation by producers,” according to the email sent by Denny Palarchio, vice-president of supply chain and customer excellence at the OCS.
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