Pubdate: Wed, 26 Oct 2016
Source: National Post (Canada)
Copyright: 2016 Canwest Publishing Inc.
Contact: http://drugsense.org/url/wEtbT4yU
Website: http://www.nationalpost.com/
Details: http://www.mapinc.org/media/286
Author: Claire Brownell

SHOPPERS SEEKING LICENCE TO SELL POT

'Hard to Predict'

Toronto * Shoppers Drug Mart has applied for a licence to dispense
marijuana to patients with a prescription, a potentially significant
source of revenue for the drugstore giant.

In a statement, spokeswoman Tammy Smitham said the chain of drugstores
has officially applied to be a licensed producer of marijuana. The
company plans only to distribute it, not grow it.

"We believe that allowing medical marijuana to be dispensed through
pharmacy would increase access, safety, quality and security for the
thousands of Canadians who use the drug as part of their medication
therapy," Smitham said. "We are hopeful that the Government of Canada
will embrace that opportunity for enhanced patient care."

Galen Weston, head of Shoppers parent Loblaw Cos. Ltd., has previously
voiced his support for allowing pharmacies to distribute medical
marijuana. At the company's annual general meeting in May, he said he
believes pharmacies are in the best position to dispense the drug
safely and effectively.

If Shoppers' application is successful, it would require changing
medical marijuana policies to allow pharmacists to fill prescriptions
i n person in retail stores. Currently, medical marijuana can only be
legally distributed through the mail.

Maureen Atkinson, a senior partner with the international retail
consultants J. C. Williams Group, said medical marijuana could be a
significant new source of revenue for Shoppers. However, she said
there are factors that could get in the way.

"It's hard to predict when we don't know what the government is going
to do," Atkinson said.

"If it becomes very competitive, it may not be the huge windfall they
were hoping."

If everything goes according to plan, however, Loblaw stands to gain
handsomely. Shoppers is the largest drugstore chain in the country and
there are currently about 40,000 Canadians with medical marijuana
prescriptions, a number that could rise as the drug becomes more accessible.

Sylvain Charlebois, dean of management at Dalhousie University and a
professor of food distribution and policy, said Loblaw may have its
eye on expanding sales to its grocery stores as well if the government
legalizes marijuana for recreational use. Analysts have pegged the
potential value of the Canadian recreational marijuana market as high
as $5 billion.

"The food industry, in general, is investing a lot of funding in R& D
into developing products using marijuana as a by-ingredient,"
Charlebois said. "Loblaw has the perfect architecture to blend both
worlds."

Cam Battley, senior vice-president of the Alberta-based licensed
producer Aurora Cannabis Inc., said the news is validation for the
fast-growing medical marijuana industry. He said Canadian marijuana
producers are working hard to meet the demand that is expected as
major companies like Loblaw enter the market, with Aurora currently
planning an expansion the size of 10 football fields.

"Canada's medical cannabis system is already succeeding," he said.
"It's a clear validation of medical cannabis and a clear indication of
massive patient demand."

One group that might suffer from the entry of Shoppers is the
operators of storefront medical marijuana dispensaries. The shops have
become commonplace in Canadian cities despite the fact they're still
illegal.

Dana Larsen, founding director of the Vancouver Dispensary Society,
said he thinks the two distribution methods can coexist. Ideally, he
said he'd like to see the Canadian government regulate medical
marijuana like a non-prescription drug, with companies such as Loblaw
working with cannabis activists to advocate for a total end to
criminalization.

However, Larsen said he doesn't mind being put out of business for the
right reasons.

"If Shoppers Drug Mart can provide higher quality, lower-priced and a
wider range of products than I can at my dispensary, I consider that a
victory," he said. "What I want to see is the price of cannabis drop
so much that my dispensary's no longer needed."
- ---
MAP posted-by: Matt