Canopy Growth expands empire with deal to operate pot stores in Manitoba

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. In Manitoba, distribution will be handled by the province’s Liquor, Gaming and Cannabis Authority, but cannabis will be sold in privately run, standalone 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 and Labrador, New Brunswick, P.E.I., Quebec and Manitoba.

The supply deal with Newfoundland and Labrador 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.

The company wants 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 the market to private operators, an idea that works for two of the candidates running to become leader of the Ontario Progressive Conservative Party. In a televised debate on Thursday, 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.