Millions of dollars worth of cannabis to flow through Guelph ... legally, of course

Guelph is about to become the cannabis capital of Ontario.

The Ontario Cannabis Store (OCS) is moving its only distribution centre to the Royal City in early October to supply hundreds of millions of dollars worth of cannabis throughout the province.

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“Over time, this new facility will serve as the primary distribution facility based on size and planned automation,” OCS spokesperson Daffyd Roderick said in a statement.

Roderick added the facility will supply Ontario’s booming cannabis retail store network and online store.

The current facility in an Oakville, Ont., industrial area is too small and is expected to close in the coming months.

That location employs about 100 people and the status of those jobs is unclear. It’s also not known how many new hires will be made in Guelph given the larger scale of the facility.

The OCS said the Guelph facility was selected for its optimal size, proximity to Highway 401 and its ability to scale up advanced-automation capabilities.

In a tweet, Mayor Cam Guthrie praised the relocation to his city.

I am extremely thankful for their commitment in choosing Guelph,” he said. 

The move to Guelph comes as the OCS anticipates to go from supplying the current 164 retail stores to supplying over 500 in the years to come.

While it’s unclear how much cannabis will move through Guelph, a report released by the OCS in June could give an idea.

It showed that consumers purchased more than 35 million grams in its first year of operation from April 2019 to March 2020.

The total sales in Ontario during that first year were over $385 million.

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The exact location of the Guelph distribution centre is being kept under wraps and it’s not known how large it will be.

OCS said more details would be released once it is up and running.

© 2020 Global News, a division of Corus Entertainment Inc.

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