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Canada’s Liquor Stores Will Heavily Outnumber Marijuana Stores On Legalization’s Launch

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In case you missed it, Canada’s legal marijuana system goes into effect next week. But new data reveals that access to liquor stores is going to be far greater than planned cannabis store—at least for the time being.

Statistics Canada, a government agency, released the report, which compares the prevalence of liquor stores and planned cannabis stores in each Canadian province, on Wednesday. The team behind the report notes that information about pending private or government-run marijuana shops is incomplete—excepting online retailers, for example.

“Using the agency’s geographic databases, the location of each Canadian household is identified, and the distance from that location to the nearest legal retail outlet is calculated. Averages of these distances are then calculated to determine how generally accessible these products are to Canadians.”

The top-level takeaway is pretty straightforward. Ninety percent of Canadians currently live within 10km (or about six miles) of a liquor store. Only 35 percent of the Canadian population lives within the same distance of a planned cannabis store. Visualized, here’s a look at the access to cannabis and liquor stores based on population density in each province:

Access to liquor stores by province

Population of Canadians with access to a liquor store based on distance. 

1 km 2 km 5 km 10 km More than 10 km
Canada 11,362,355 21,277,831 28,876,635 31,711,644
Newfoundland and Labrador 84,776 158,242 265,484 321,357
Prince Edward Island 20,498 38,328 77,954 107,592
Nova Scotia 207,360 382,390 588,728 738,101
New Brunswick 112,467 229,098 419,581 542,312
Quebec 2,360,006 4,650,155 6,499,149 7,290,334
Ontario 3,460,906 7,835,317 11,587,894 12,770,424
Manitoba 349,046 758,067 913,421 977,472
Saskatchewan 249,628 539,875 746,822 793,642
Alberta 2,591,997 3,336,786 3,554,164 3,704,638
British Columbia 1,908,747 3,323,470 4,168,425 4,402,666
Yukon 4,407 8,264 23,824 26,294
Northwest Territories 9,326 14,648 23,449 29,072
Nunavut 3,191 3,191 7,740 7,740

Access to planned cannabis stores by province

Population of Canadians with access to a planned cannabis store based on distance. 

1 km 2 km 5 km 10 km More than 10 km
Canada 1,440,702 3,797,855 8,757,433 12,194,999
Newfoundland and Labrador 51,424 141,076 274,922 336,714
Prince Edward Island 6,907 29,616 59,576 82,626
Nova Scotia 43,792 135,644 363,855 512,091
New Brunswick 34,833 97,642 290,802 414,181
Quebec 171,052 572,007 1,789,784 3,296,701
Ontario 0 0 0 0
Manitoba 72,366 261,485 747,866 826,490
Saskatchewan 117,606 316,339 684,128 727,937
Alberta 624,382 1,394,464 2,229,038 2,593,820
British Columbia 317,523 846,977 2,302,059 3,381,659
Yukon 817 2,605 15,403 22,780
Northwest Territories 0 0 0 0
Nunavut 0 0 0 0

“Canadians have remarkably good access to liquor stores all across the country with 90 percent living within 10 kilometers of a store,” the report states. “Not surprisingly, their access to cannabis stores immediately after legalization on October 17, 2018 is likely to be much more restricted with only 35 percent of the population dwelling within 10 kilometers of a store.”

“It is emphasized this is a preliminary estimate based on less-than-full information about the number of stores expected to open and their locations. Cannabis accessibility will undoubtedly increase substantially in 2019 and 2020.”

For a comprehensive breakdown on the differences in marijuana legalization implementation for each province, check out this Marijuana Moment analysis.

Marijuana Stores Will Be Hard To Find For Most Canadians On Day One Of Legalization

Photo courtesy of Brian Shamblen.

Marijuana Moment is made possible with support from readers. If you rely on our cannabis advocacy journalism to stay informed, please consider a monthly Patreon pledge.

Kyle Jaeger is Marijuana Moment's Los Angeles-based associate editor. His work has also appeared in High Times, VICE and attn.

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Marijuana Trade Group Demands Action Against Unlicensed Los Angeles Dispensaries

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Unlicensed marijuana dispensaries abound in Los Angeles, and a major cannabis trade association is calling on the local prosecutor to step up enforcement efforts.

In a letter sent to City Attorney Mike Feuer, the United Cannabis Business Association (UCBA) says it is concerned that “illegal retail cannabis operations are continuing to flourish and proliferate” and that existing medical marijuana dispensaries “are struggling financially in the face of competition from illegal dispensaries.”

The group, which represents licensed medical cannabis dispensaries throughout the city, requested information about how the local government is handling the situation.

Via UCBA.

“The UCBA is looking for answers and actions from City Attorney Feuer to ensure safety for workers and residents across the city and to protect the city’s much needed revenue,” UCBA executive director Ruben Honig said in a press release this week. “We are greatly concerned that illegal cannabis dispensaries continue to operate and proliferate in Los Angeles and urge him to crack down on rampant illegal cannabis operations.”

Of course, cracking down on the hundreds of unlicensed dispensaries operating in the city is easier said than done. And the city attorney’s office has moved to enforce local marijuana ordinances in waves this year. In September, for example, the office announced that more than 500 people were charged for running 105 illicit dispensaries.

It’s not quite as simple as shutting down unlicensed marijuana shops, though. Cannabis laws are constantly evolving in Los Angeles, and keeping up with the latest regulatory policies has proved challenging for many previously licensed dispensaries.

The National Cannabis Industry Association (NCIA) said it agrees that the city attorney’s office should “enforce the law and the new regulatory structure,” but that enforcement “should be transparent, and should focus initially on the traditional criminal element more than on currently unlicensed businesses that have been operating for years without incident in compliance with the old system.”

“This is a perfect example of the problem with arbitrary license caps,” NCIA media relations director Morgan Fox wrote to Marijuana Moment in an email. “I’m not extremely familiar with the LA licensing scheme regarding existing businesses, but I’ve heard that it was very restrictive, very limited and resulted in the exclusion of many smaller and/or minority-owned companies.”

Marijuana Moment reached out to Feuer’s office for comment, but a representative was not immediately available.

Marijuana Dispensaries Reduce Local Opioid Overdose Rates, Study Finds

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Nearby Marijuana Shops Make Homes And Rentals More Valuable, Studies Show

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When a shop selling marijuana opens (or closes), there’s a direct impact on housing and rental prices in the surrounding area, according to a pair of recent studies.

Housing prices for new homes increase by 7.7 percent on average if they’re located within a quarter mile of a new dispensary.

A study published in the journal Contemporary Economic Policy evaluated how the price of new homes in Denver, Colorado, changes when a cannabis dispensary opens up nearby. Researchers compared the prices of homes before and after a dispensary opened within .25 miles, .25-.5 miles and .5-.75 miles.

Contemporary Economic Policy

When new dispensaries opened within .25 miles, housing prices jumped 7.7 percent on average. There was still a 4.7 percent increase for homes located within .5 miles, but the effect “disappears entirely” for houses that are further than .5 miles from a new dispensary. The researchers also found that the effect was slightly more pronounced if the dispensary was the first to the area.

“Our results suggest that despite potential costs, legalization is capitalized as a net benefit in housing prices,” the researchers wrote.

Interestingly, new dispensaries seem to have about the same impact on housing prices as new grocery stores, the study found. But the “mechanisms through which grocery stores affect housing prices are more obvious than dispensaries.”

“If public sentiment surrounding marijuana is positive, homebuyers may also prefer to select into neighborhoods with more dispensaries for convenience. Ultimately however, our data do not allow us to directly determine the underlying mechanisms driving this result, so these potential explanations should be considered speculative.”

Losing a marijuana coffeeshop causes a three percent decrease in Airbnb rental prices.

Amsterdam’s famous cannabis coffeeshops are known tourist attractions, but what happens when one shuts down? For his master’s dissertation, doctoral student Igor Goncalves Koehne de Castro identified at least one collateral effect: Rental costs on Airbnb drop by about three percent on average if the closure was within 250 meters of the lodging.

If the coffeeshop was further than 250 meters, rental prices didn’t change significantly.

Via USP Digital Library.

There were plenty of examples for de Castro to study, which spanned from 2014 to 2017, because several coffeeshops have closed in response to new laws in recent years, including one in Amsterdam that prohibits the shops from operating within 250 meters of a school.

After controlling for other possible factors, de Castro developed a series of models based on Airbnb data on rental prices over time and their proximity to recently closed coffeeshops. The study revealed that these shops “present a positive impact” on rental prices for lodgings close to the shops—presumably because people who rent through Airbnb are “tourists” who are “sensitive to distances.”

“The findings of this study suggest that, for the city of Amsterdam, the de facto legalization of cannabis actually has a positive externality,” de Castro wrote. “This result puts new evidence to the debate of drug laws and policies, a matter that still lacks data and research.”

Marijuana Dispensaries Reduce Local Opioid Overdose Rates, Study Finds

Photo courtesy of WeedPornDaily.

Marijuana Moment is made possible with support from readers. If you rely on our cannabis advocacy journalism to stay informed, please consider a monthly Patreon pledge.
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Major Alcohol Association Briefs Congress On Marijuana Legalization

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One of the nation’s leading alcohol industry associations held a briefing on Capitol Hill on Friday to tell lawmakers and congressional staffers about its position on marijuana legalization.

The Wine & Spirits Wholesalers of America (WSWA) became the first major alcohol association to call for the end of federal cannabis prohibition in July. At last week’s briefing, the group reaffirmed that stance, emphasizing that the federal government should allow states to legalize marijuana without interference.

A representative from the group also suggested that the cannabis market could take lessons from the current regulatory approach to alcohol, including when it comes to distribution and quality control testing, one person who attended the event told Marijuana Moment. There was also a conversation about developing technologies to detect active impairment from marijuana on the roads.

In a one-sheet overview distributed at the briefing, WSWA wrote that the industry’s regulatory structure “should ensure product safety, discourage underage access, create an effective tax collection regime and encourage innovation and choice for consumers, while at the same time eliminating diversion of cannabis to other states.”

WSWA then outlines a series of recommendations—from implementing impaired driving standards to testing product formulas.

Read WSWA’s full list of marijuana policy recommendations below:

Via WSWA.

For the most part, the recommendations align with existing regulatory models in legal states. Where the alcohol and marijuana industries might have disagreements, though, is with WSWA’s opposition to vertical integration, under which one company manages more than one area of production and distribution that could otherwise be delegated to other businesses.

The alcohol industry generally operates under a three-tier system in the U.S., through which separate operators handle production, wholesaling and retail sales. Some have suggested that the alcohol industry wants the cannabis market to adopt its approach so that existing businesses like beer, wind and liquor distributors can profit from legal marijuana as well. But Dawson Hobbs, WSWA senior vice president of government relations, denied as much when the association made its initial announcement earlier this year.

“No, what we’re talking about is just creating a pathway for states to have federal recognition of legalization by enacting appropriate regulation that creates a safe and reliable marketplace,” Hobbs said at the time.

A Main Ingredient In Beer Used To Be Marijuana’s ‘Sister,’ Study Shows

Photo courtesy of Chris Wallis // Side Pocket Images.

Marijuana Moment is made possible with support from readers. If you rely on our cannabis advocacy journalism to stay informed, please consider a monthly Patreon pledge.
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