Indigenous pot shops face crowded market, constitutional questions 5 years since legalization

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Indigenous dispensaries were the first to sell legal cannabis in northern Ontario, but are now facing stiff competition from dozens of provincially-licensed pot shops.

Five years after the legalization of cannabis, the future of the Indigenous side of the industry in northern Ontario is hazy. On-reserve dispensaries that once dominated now face increased competition, and some First Nations see cannabis as the next battleground for constitutional rights.Indigenous dispensaries were the first to sell legal cannabis in northern Ontario, but now face stiff competition from dozens of provincially licensed pot shops.

It's a similar story across northern Ontario, where Indigenous pot shops that dominated the marijuana business in the early days of legalization have watched their head start disappear with the opening of dozens of dispensaries in cities and towns. That meant at one point not being allowed to sell cannabis gummies, drinks and other edibles like other provincially regulated stores, because the First Nation was concerned about the impact that could have on the community.

3 years ago you could only buy legal weed on First Nations, now some say the industry needs a 'red market'Avery would like to see all First Nations dispensaries sign onto the provincial system, saying the "grey market" throws "a lot of unknowns to the customer." Matthew Esquimaux, from Buddies Smoke Shop on Manitoulin Island, says people should be more suspicious of government ganja.

He says newspaper stories about the case were good "advertisements" that "really helped us, but now he faces competition from a half-dozen other Indigenous dispensaries on the island, plus three provincially licensed stores in Espanola."Sales have dwindled a little bit since then, but a lot of people know about us and we really stand behind our quality, so that definitely keeps them coming back.

"It was the best option for our community, so one community member doesn't benefit, the entire community is going to benefit off of the profits right? For infrastructure, schooling for the children."

 

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