OCS to allow farmgate stores to sell exclusive products

The Ontario Cannabis Store (OCS) has plans to soon allow cannabis farmgate stores to sell cannabis products that are exclusive to their location.

In an announcement posted on Thursday, May 9, the OCS says the rule change will occur in late spring, creating new opportunities for cannabis farmgate locations. 

Ontario’s cannabis farmgate program issued its first licenses in April 2021, and since then has issued seven such licences across the province, with five in operation.

These new changes, says the OCS, will add value to its farmgate framework and “will help to create engaging destinations for consumers that elevate legal products above illegal alternatives.”

The OCS also plans to engage cannabis producers and retailers about the opportunities presented by this operating model and assess its impact on existing retailers.

Ontario’s farmgate rules allow licensed cannabis producers to apply to operate an Authorized Retail Store at their production facility. These Farmgate Stores are licensed and regulated by the Alcohol and Gaming Commission of Ontario (“AGCO”) like any other retail cannabis store.

One key difference, however, is that these producers can sell products directly from their farm rather than first sending them through the OCS distribution centre. 

British Columbia and New Brunswick have also implemented their own farmgate programs. New Brunswick now has six such stores, while BC has only one currently.

Featured image of Station House Cannabis’ farmgate store in St. Thomas, ON.