Canopy Growth Corp. has recently announced it has entered a partnership with Laval, Quebec-based convenience store giant Alimentation Couche-Tard. While this partnership will not occur at a national level yet – they are doing something very interesting – partnering up with a lottery winner in London, Ontario to establish their brand within the AGCO framework in this province.
This will prove more and more common it seems as major licensed producers attempt to secure a retail foothold in Canada’s largest province. Under the agreement between the license holder and the two aforementioned companies, the license holder retains ownership of the location and the license. This model is greatly beneficial for both parties as the license holder puts forth their vision for a successful retail model and the licensed producer sees their product showcased for consumers. The licensed producer can also assist the license holder with a framework for day-to-day retail operations and leverage their brands and marketing know how to drive same store sales.
Expect to see more of these types of announcements from the major cannabis industry players as time progresses.