They want to be part of a legitimate business,  if they are restricted they will continue operating illegally.  As far as safe product and taxes,  thats what regulation and Canada revenue are for.

The article you speak of is about family conflict that led to the sale of the company.  Companies are bought and taken over all the time.  The fact is Seagrams is still very successful.

Why not allow a entrepreneur to be part of the industry,  if they can't follow the rules they will lose their privilege to be involved.  They obviously are the people that have a knowledge and passion for the product.