Article content continued

All four companies have a shot at becoming the “Starbuds” of Ontario pot.

But it’s still early. Industry experts expect there will be a huge demand to operate stores, from both from big companies and small entrepreneurs.

Ontario is the country’s largest market, said Jeffrey Lizotte, chief executive of Next Wave Brands, a cannabis consulting company.

“Ontario will become the premier target, the primary battleground for cannabis retail.”

Lizotte predicted that major retailers will also want to set up franchises in Ontario, noting that food giant Loblaw has already won the right to set up stores in Newfoundland and Calgary.

Which companies might dominate also depends on the rules — which haven’t been decided — governing the operation of private stores. The provincial government has promised wide consultations before introducing new legislation. Lizotte said he expects that will begin next week.

OTTwp

Ontario Finance Minister Vic Fedeli said the province will also learn from the experiences of Manitoba, Saskatchewan and Alberta, which have adopted private-store models.

Alberta plans to issue about 250 store licences in the first year of legalization but has limited the number that can be awarded to any one company to 15 per cent of the total to prevent market domination. Saskatchewan held lotteries to award licences.

In Ontario, municipalities will also have a key role. Councils elected during the fall municipal elections will have a one-time chance to opt out of having cannabis stores in their jurisdictions.