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ARTICLE · 15 AUGUST 2023

Ontario Lowers Wholesale Markup On Cannabis

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Effective September 11, 2023, the Ontario Cannabis Store (the OCS) will lower its wholesale markup, in an effort to "support a vibrant cannabis marketplace that helps to displace illegal operators."

CanadaCannabis & Hemp
Jonathan Sherman
Jonathan Sherman
Darren Kendal
Darren Kendal
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Effective September 11, 2023, the Ontario Cannabis Store (the OCS) will lower its wholesale markup, in an effort to "support a vibrant cannabis marketplace that helps to displace illegal operators."1

BACKGROUND

The OCS is the only legal cannabis wholesaler in Ontario. Entities that are licensed by Health Canada to cultivate or process cannabis (generally known as LPs) are only allowed to sell recreational cannabis in Ontario to the OCS. Authorized retailers in Ontario are also only allowed to buy from the OCS. Therefore, the OCS has significant control over the cannabis supply chain. The OCS is also one of the biggest competitors to retailers, as it sells cannabis on OCS.ca, where it offers free delivery.

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