Newfoundland to hand cannabis sales to private sector

(Update: The government of Newfoundland and Labrador said private retailers will be used to sell cannabis.)

Newfoundland and Labrador might allow privately owned stores to sell recreational marijuana, a move that would open up significant retail opportunities for entrepreneurs in the province.

If the plan is approved, Newfoundland would become the first province east of Manitoba to give entrepreneurs a piece of the retail marijuana market.

The Newfoundland and Labrador Liquor Corp., a Crown subsidiary, might license and regulate private stores so the province wouldn’t have to absorb the cost of renting space and hiring staff, according to CBC News.

What you need to know:

• Newfoundland could unveil its legalized marijuana framework as early as next week.
• After the province’s bill is tabled, it must be approved by the House of Assembly, where the governing Liberal party enjoys a comfortable majority.
• Ontario, Quebec and New Brunswick are going with publicly owned marijuana monopolies, while Manitoba and Alberta are handing marijuana sales to the private sector.
• Newfoundland is a relatively small market, with about 344,000 adults.
• Newfoundland wasn’t home to any of Canada’s 74 licensed producers as of Nov. 20.
• Prince Edward Island and Nova Scotia haven’t unveiled how they will sell recreational marijuana.

To sign up for our weekly Canada marijuana business newsletter, click here.