A comparative analysis of state-controlled models for legal cannabis sales in Uruguay and Quebec (Canada)

Background: The strictly regulated state-controlled models for legal cannabis sales may offer public health advantages over more commercial approaches. However, few jurisdictions have implemented these models to date and there is limited comparative analysis and evaluation.

Objectives: To compare regulatory and market structures under two prominent state-controlled models for cannabis sale: Uruguay and Quebec (Canada).

Methods: Analysis draws on semi-structured interviews with 56 key stakeholders (34 in Quebec; 22 in Uruguay) from public sector, academia, cannabis industry and civil society; field observations of cannabis retailers in the two jurisdictions; review of legislation and literature.

Results: State control of retail prices, potencies, product types and availability are central to both jurisdictions, but they are achieved through different means. In Quebec, a Crown corporation (SQDC) manages retail sales through a branded store network, and sets prices, procures products on offer and store locations. In Uruguay, independent pharmacies are licensed to sell cannabis by a state regulatory agency (IRCCA) that sets the retail price, products and controls production volume. The retail network in Quebec appears more efficient in meeting needs of customers and accessibility across the province while preventing competition. In both models, cannabis is produced by private companies, and there are approximately 700 different products in Quebec vs 3 dry herb product types in Uruguay. In Uruguay, the cultivation sector is characterised by a small number of large companies (3 licensed producers), illustrating a ‘commoditised’ cannabis market model, while in Quebec approximately 200 producers are (federally) licensed to cultivate cannabis, including many “micro-producers”. 

Discussion: We will discuss key lessons from implementing both models and implications of the different regulations and market structures for public health, safety, and economic justice.