Big news broke this week out of Canada, where OEG Retail Cannabis (OEGRC) plans to acquire 23 of Canopy Growth’s Tweed- and Tokyo Smoke-branded dispensaries in Manitoba, Saskatchewan, and Newfoundland and Labrador, as well as Canopy’s Tokyo Smoke brand and trademark.

“We believe this is the start of something special for the retail cannabis industry,” OEG Inc. CEO Jürgen Schreiber said in a public statement. “With this acquisition, OEG Retail Cannabis and the Tokyo Smoke brand are positioned as outright leaders in Canadian retail cannabis, and we are committed to doing everything we can to lead in customer experience, product quality and safety for years to come as the country’s cannabis industry continues to evolve and mature.”

For Canopy, the move aims to increase the licensed producer’s profitability as a brand-focused cannabis and consumer packaged goods (CPG) company.

“We are taking the next critical step in advancing Canopy as a leading premium brand-focused CPG cannabis company while furthering the company’s strategy of investing in product innovation and distribution to drive revenue growth in the Canadian recreational market,’’ Canopy CEO David Klein said in a public statement. “By realizing these agreements with organizations that possess proven cannabis retail expertise, we are providing continuity for consumers and team members.”

So, what went wrong for Canopy in Canada’s cannabis retail sector?

Perhaps the answer to that question will come into focus after the Canadian government completes its review of the Cannabis Act, the adult-use legalization law that took effect in October 2018 and directed Canada’s health minister to conduct a review of the legislation, its administration and operation three years later.

“The work of the Expert Panel will address the ongoing and emerging needs of Canadians while protecting their health and safety,” Health Minister Jean-Yves Duclos said in a public statement last week. “Through this useful, inclusive and evidence-driven review, we will strengthen the act so that it meets the needs of all Canadians while continuing to displace the illicit market. I look forward to receiving the panel's findings.”

We, too, look forward to the panel’s findings and hope you will follow along with Cannabis Business Times’ ongoing Canadian coverage.

-Melissa Schiller, Senior Digital Editor

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