Inside Nova Cannabis in Toronto's bustling Queen Street West neighbourhood, the shop's budtenders are crowded around a low table, taking whiffs of tiny vials and exchanging their observations. "Slightly spicy," says one, before jotting down some notes and picking up another sample. The first nine licensed cannabis stores in Ontario — the government had hoped to have 25 selling by this date — opened for business on Monday. But just days before, Nova Cannabis, like many of them, still wasn't quite ready for its big moment. It was only a few months ago, on Jan. 11, that a lottery system determined which retailers would be eligible to apply for a licence to sell cannabis in Ontario. And the application process is time-consuming. It includes, for example, finding a location that meets certain regulatory requirements, and informing the neighbourhood that you intend to set up shop. And of course, you can't order any stock until the licence is approved. Nova Cannabis isn't expected to open on Monday. While anxiously refreshing her email, owner Heather Conlon is trying to visualize what things will look like once her licence and first cannabis shipment finally arrives. "It's going to be very busy, we expect lineups, obviously," she said. Hundreds of people lined up when Montreal's first cannabis stores opened in October. Similar waits and supply shortages are expected in Ontario this week. (Ryan Remiorz/Canadian Press) 'Few shops' expected to open Hunny Pot Cannabis Co. received its licence in time to place orders and schedule its final inspections before Monday. It appeared to be the only shop in Toronto on track to meet its target opening. "It's been an amazing roller coaster," said owner Hunny Gawri, a Mississauga, Ont.,-based realtor with no prior experience in the cannabis industry. Gawri said he was uncertain about how his store, also on Queen Street West, will manage potential lineups, and how long its first stock of cannabis will last. "If there's lineups, is the line moving fast enough? Are we ordering product that the customers want?" Gawri said. "Honestly, we just want to make sure that everyone who comes through enjoys the experience." Budtenders at Nova Cannabis in Toronto smell cannabis and compare notes in a training session before opening day. (Derek Hooper/CBC) Industry experts predict Ontario's first cannabis stores will experience many of the same growing pains as those in other provinces. Those issues led to temporary closures and even caused some stores to go out of business entirely. The challenges could be even more pronounced in Ontario, where less than half of the 25 proposed stores were on track to meet Monday's target opening date. "I think there will be few shops opening of the 25," said Jay Rosenthal, a cannabis industry watcher and co-founder of the online platform Business of Cannabis. "The time horizon to get open by April 1st was really, really aggressive for any kind of business," he added. Further, because those licences require stores to open on Monday, those that don't will face fines of up to $12,500 every two weeks, and $25,000 if they're not open by the end of April. Heather Conlon, owner of Nova Cannabis, said she's concerned about possible supply shortages once her store is up and running. (Nick Boisvert/CBC) More challenges on the horizon Although Rosenthal expects the lines and shortages to be short-lived, experts and business owners worry that a cloud of uncertainty will hang over the industry for the foreseeable future. Statistics from Health Canada point to a robust national supply — the federal agency says the Canada's total inventory of dried cannabis is nearly 19 times larger than total sales — but owners are worried about getting enough product into their stores. Hunny Gawri, owner of The Hunny Pot Cannabis Co., is the only Toronto applicant to have received a license in time for opening day. (Nick Boisvert/CBC) Retail shops in Ontario are obliged to order their products through the provincially run Ontario Cannabis Store (OCS). The OCS says it will distribute a "reasonable amount" of supply to support each store's operation, but has set maximum order sizes due to what it calls a national shortage of cannabis. "Stores and customers should anticipate that the assortment of some products may be limited until the legal recreational marketplace stabilizes over time," OCS spokesperson Amanda Winton said via email. Ontario's thriving black market — which includes dealers, online stores and illegal dispensaries — is also expected to pose a threat as the licensed stores first open. Prices on the black market are believed to be 50 per cent lower than legal prices. "I'm concerned about that, of course," Conlon said. She is hoping that police renew their focus on unlicensed dispensaries. "I've heard that they're going to be cracking down on those stores and hopefully keeping them closed," she added. The licensed stores are also unable to match the range of products available on the black market, where cannabis edibles, drinks and vape pens are widely available. Rosenthal said those products, which have not yet been regulated, make up around half of sales in the black market and U.S. states where they have been legalized. Ontario's Progressive Conservative government has also said it will lift the 25 license cap once the cannabis supply stabilizes, though it is unclear how many new stores the province will allow. Despite the uncertainty around future competition, Gawri is confident that his store, and others, will thrive. "Ontario being the biggest market in Canada, there's enough business for everyone," he said.<doc-sep>On the same day that a handful of legal marijuana shops opened up across Ontario, Premier Doug Ford singled out one city for being too lenient when it comes to stamping out the black market. During a conference on Monday to announce the scrapping of Drive Clean Tests, Ford not only railed against the newly-implemented carbon tax, but vented his frustration with the city of Hamilton for allowing illegal marijuana shops to “pop up like mushrooms.” “My biggest frustration to be very frank is Hamilton,” the premier said. “Hamilton, last time I checked they had 50 some odd pot stores out there. Who is doing anything about it? I can tell you one thing, if one convenience store ever put alcohol in their store they would be closed down in an hour. “They are illegal,” Ford stressed. “There’s been more than enough warning. “The question to Hamilton: Why are you turning your head on this?” Hamilton police spokesperson Jackie Penman countered, saying officers have been actively working to combat the black market, shutting down 29 illegal dispensaries since marijuana became legal on October 17, 2018. She also refuted Ford’s claim that “50 some odd” pot stores are operating in the city. “We currently have 12 illegal cannabis dispensaries in Hamilton and there are two legal stores set to open around April 20,” she said in an email to CityNews. “We have been working closely with the Provincial Joint Forces Cannabis Enforcement Team to enforce the new legislation. “We know this process will take time but we are dedicated to investigating and apprehending those individuals and businesses who are producing, selling and importing cannabis outside of the law.” Penman put some of the onus on the courts to dole out punishments harsh enough to act as deterrents. “It’s now up to the courts on how to proceed,” she wrote. “We hope the appropriate fines are levied in order to discourage those individuals and businesses who are operating outside of the legal framework.” On Monday, 25 legal marijuana shops were slated to open across Ontario, with five in Toronto. But paperwork delays saw just 10 open, with just one selling legal weed in Toronto on day one. Ford said he was hopeful most of the stores would open in the coming weeks. “Some didn’t fill their paper work out, some it’s taking a bit longer, but I think over the next couple weeks we will get it done.” Hamilton isn’t alone when it comes to the challenges posed by the black market. Toronto police have struggled to stay on top of illegal dispensaries, some of which reopen shortly after being raided by police. The Ontario government’s Cannabis Control Act includes hefty fines for illegal operators and landlords, seizure authority, and the ability to shut down a property, but Mark Sraga, director of investigation services for Toronto’s licensing department, told CityNews many illegal weed shop owners brazenly flout the law. “We’ve had property owners or operators going in and breaking the locks and reopening the very next day in some instances,” he said in late March. Sraga said the City of Toronto is determined to weaken the black market. “We have developed a more aggressive enforcement schedule going forward … we will be taking more enforcement actions that will be seen publicly. We will be as aggressive as we can be with the rules and the laws that we have to work with.” The city of Toronto currently has six bylaw officers dedicated solely to illegal cannabis storefronts.<doc-sep>The three cannabis retail locations in Ottawa officially opened their doors on Monday as part of the first wave of legal pot shops to open across Ontario. Global News Ottawa was on hand to cover the launch of the stores, where education, prices, accessibility and crowds were all top of mind. Hobo Recreational Cannabis Store Located on Bank Street in Centretown, Hobo Recreational held a media availability before opening the doors to the public and explained some of how their location worked. For those new to the cannabis market who may not have much knowledge in terms of which strain they are looking for, the store has a colour-coded information system indicating the different effects each strain would have on the consumer. Story continues below advertisement Harrison Stoker is the VP of brand and culture for the Donnelly Group who owns Hobo, and for him, one of the most important aspects is their “decision tree.” “I think it’s something that you’re going to find becomes standardized, more or less, in the recreational market,” said Stoker. “There’s a lot of people that might be entering this market for the first time and they’re going to need a little bit of guidance.” The strains are broken down into five categories on the tree: Move: a straight sativa strain to help boost energy Lift: a hybrid featuring more sativa than indica Balanced: a hybrid mix right down the middle Calm: a hybrid featuring more indica than sativa Rest: a straight indica strain to relax the consumer Media were invited to Hobo Recreational Cannabis store at 391 Bank St. this morning for a tour. Top floor is an education centre where new consumers can learn about and purchase various strands and downstairs is the express area for those who already know what they want #ottnews pic.twitter.com/QcDk1zC3TB — Christopher Whan (@Chris_WhanGN) April 1, 2019 From the active strain sativa to the relaxing indica and hybrids in between, customers can follow easy-to-understand symbols to help find what they are looking for. The shop also has trained experts to help answer any questions new consumers may have and help them find the strain that best suits their needs. The store has two floors. The main floor is where these trained staff are located and tables are laid out, with many of the strains offered on display with information cards. Story continues below advertisement Other paraphernalia such as grinders and rolling papers are also on display and available for purchase. WATCH: Doug Ford calls on communities to shut down illegal cannabis shops 1:24 Doug Ford calls on communities to shut down illegal cannabis shops Doug Ford calls on communities to shut down illegal cannabis shops – Apr 1, 2019 Downstairs is the “express” area. Here is where those who already know what they’re looking for can go to pick up what they need immediately. “Anything that’s offered through OCS we can offer,” said Cole McCrea, on of the store’s “budtenders.” “Right now we are carrying over 700 products, so 36 different strains of cannabis.” For some consumers, the prospect of buying product from a retail location eliminates the worry of what the cannabis product could be laced with. For Pokey Judge, who’d been lined up outside since early Monday morning, and Tracey Willette, knowing they’re buying a safe and clean product is paramount. “There’s fentanyl in every kind of drugs these days, even in the pot ” said Judge. “For safety reasons, it’s the best.” Story continues below advertisement “It’s clean and you’re not taking a chance by buying it on the street,” Willette added. Customers are required to bring two pieces of photo identification to prove they are over 19 before entering the building. Fire & Flower York Street Cannabis Over in Ottawa’s ByWard Market, no more than a couple dozen people braved the cold to line up ahead of the opening of the Fire & Flower York Street Cannabis store at 10 a.m. By 10:30 a.m., however, the store was bustling. The private retail pot shop, co-owned by Michael Patterson and Eric Lavoie, has replaced the Smoque Shack restaurant, which moved to Clarence Street. Patterson and Lavoie worked with Edmonton-based Fire & Flower to open the store. Media were let into Fire & Flower right after the ribbon cutting for a sneak peak before the doors open at 10am. Here’s what it looks like inside! (And yes, they checked all our IDs on the way in.) #cannabis #ottnews pic.twitter.com/9E2IMaBJsY — Beatrice Britneff (@bbritneff) April 1, 2019 The main area of the shop is down a hallway towards the back. There, customers can consult a “strain wall,” where dozens of cards with information about different cannabis strains are hung and categorized according to their type and effect. A staff member was on hand by the wall, helping customers identify what strain of cannabis would be best-suited to their wants and needs. The store also has a dedicated “education room” or “experimental room,” where customers can search tablets or talk to the shop’s cannabis educators — or “cannistas” — about different strains and consumption methods. Customers can also sniff and peer more closely at different strains at the “sensory” tables. Story continues below advertisement Several customers said they appreciated the educational touch the store offered, arguing this is something the online Ontario Cannabis Store (OCS) is missing. “I didn’t like shopping on the website because it’s not very intuitive. I knew what I was looking for … but for someone who didn’t know, it’s not good,” said Austin Toll, who shopped at Fire & Flower on Monday. Story continues below advertisement “Having the opinions of someone who is knowledgeable in it is definitely helpful,” he said, adding he consulted some cards on the strain wall and took a few with him. The Ottawa store put an emphasis on customer education for that reason, Fire & Flower CEO Trevor Fencott said. “This is a substance that not a lot of people have a lot of experience with, so we have to fill in that gap,” he said. As they shop, customers can get a staff member to create a “customer profile” for them on a store tablet. Staff can then add the customer’s picks to a cart, in order speed up the process at the till. Customers at Fire & Flower will have to present an ID at the front doors before entering the store and a second time at the checkout counter before they make their purchase. Toll described the shop as “a very nice store,” but left saying he didn’t know how often he’d come back. He said he thought some products were overpriced, but that the store’s prices were “reasonable” overall. “In a pinch, this is great, and the hours are good,” he said. Story continues below advertisement Sandy Hill resident Crystal Roussel said she experienced “great” service inside, but noted the store isn’t accessible, claiming she observed a man in a wheelchair outside the building say, ‘”What about me? '” “That was one thing I find that they should have access for, is the wheelchair access. I [felt] bad,” she said. The front doors of Fire & Flower York Street Cannabis are only accessible via staircase and customers must climb another smaller set of stairs once inside to get to the back rooms and the checkout counter. Company spokesperson Nathan Mison said a wheelchair ramp, a chair lift, a wider front doorway and wider hallways were all in the original plans for the store’s layout but because the shop is housed in a designated heritage building, any major modifications require approval from the municipality. Because of that, and the tight timeline the company faced before opening day, plans to make the building fully accessible had to be delayed, according to Mison, Fire & Flower’s vice president of government and stakeholder relations. He said Fire & Flower is working with the city’s planning department now and hopes to make those changes by later this spring or early summer. “It’s still in process and we’re still working that through,” he said. Story continues below advertisement Superette<doc-sep>
Ontario Premier Doug Ford says his "biggest frustration" when it comes to cannabis legalization in the province is Hamilton's failure to fully shut down illegal storefront dispensaries. "Hamilton, the last time I checked, they had 50 some odd pot stores out there, who's doing anything about it?" Ford said at a Monday morning media availability in Etobicoke. "My question to local governments like Hamilton — why aren't you closing these pot shops down? … They're illegal. You want revenues? Close them down, fine the landlords a million dollars," he said. "We can't have a black market making hundreds of thousands of dollars if you add up all these illegal pot stores. It drives me absolutely crazy. The question to Hamilton — why are you turning your head on this? We need to start closing them all down." Hamilton police and the city's bylaw department are in the midst of an ongoing battle to shut down illegal cannabis dispensaries. At one point there were more than 80 open for business across the city. Most operated five to seven days a week, and on a good day brought in $80,000, a local cannabis consultant says. That windfall, police say, is a big reason dispensaries just reopen or pop up elsewhere after police shut them down. No legal dispensaries open yet in Hamilton In response to the premier's comments, Hamilton police spokesperson Jackie Penman said that since legalization happened last October, police have shut down 29 illegal dispensaries in Hamilton. "We remain strongly committed to working with all legal means and our partners to close illegal dispensaries," she said in a statement. Dozens of customers lined up outside RELM Cannabis Co. in Burlington Monday as the province's first legal cannabis stores opened their doors. (Dan Taekema/CBC) Currently, police say, there are 12 illegal dispensaries operating in Hamilton. "There are currently no legal dispensaries within the City of Hamilton that are authorized to sell cannabis or cannabis-based products," Penman said. Though the province is allowing licences for 25 stores, only nine were able to open Monday, including RELM Cannabis Co. in Burlington, and the Niagara Herbalist in St. Catharines. Two stores in Hamilton are currently under construction, but neither were able to meet the April 1 deadline. "We have been working closely with the Provincial Joint Forces Cannabis Enforcement Team to enforce the new legislation," Penman said. " We know this process will take time but we are dedicated to investigating and apprehending those individuals and businesses who are producing, selling and importing cannabis outside of the law." "We've been working closely with our provincial counterparts to ensure that when we exercise this component of the legislation, we do so legally and efficiently. It's now up to the courts on how to proceed. We hope the appropriate fines are levied in order to discourage those individuals and businesses who are operating outside of the legal framework." Premier's info 'outdated,' Mayor says Mayor Fred Eisenberger told CBC News that Ford's information about the situation is "a bit outdated." "We've been on it. Right now it's the courts that need to adjudicate on what kinds of fines they're going to levy. We don't get to do that," Eisenberger said, noting that the city has also seized property from illegal dispensaries in an effort to keep them closed. "All the work that's being done is to try to ensure that whatever charges are laid and whatever closures are made that they hold up in court." Two legal dispensaries are expected to open in Hamilton later this month. (Jonathan Hayward/The Canadian Press) Many have questioned how two stores can keep up with an obvious demand in the Hamilton region, given there were once 80 dispensaries operating in the city, on top of more traditional drug dealers and mail order services. Eisenberger said it's obvious more stores will be needed in the future if black market usage is really going to be curbed. Starting at 25 stores was the province's way of making sure that supply wouldn't be an issue, he said. "There was a belief that 25 stores in the province would be the number they could service," he said. "That will grow. There's no question there will be more locations down the road that will be approved through the province." adam.carter@cbc.ca