Business
How to get cannabis users to legal stores? Proximity is key, study says
For cannabis retailers, it’s no secret: Customers like buying weed close to home, if they can.
New research into Canada’s regulated cannabis market supports that intuition: Consumer proximity to government-regulated stores increases the odds that people will source product from the legal market.
The paper – due to be published in the Journal of Studies on Alcohol and Drugs – explores the association between how far Canadian cannabis users live from regulated cannabis retail stores and how they choose to obtain marijuana products.
Perhaps most relevant to the cannabis industry, the research found that respondents who lived less than 3 kilometers (roughly 1.9 miles) from the closest regulated marijuana retailer were more likely to source cannabis from a legal store and less likely to get it from a regulated website (one of the other ways survey respondents could report obtaining cannabis).
“What we took from that is that perhaps there is a diminishing effect after a while,” said Elle Wadsworth, a senior analyst with Rand Europe who was the paper’s lead researcher in her previous role as a postdoctoral student with the University of Waterloo and the Canadian Centre on Substance Use and Addiction.
“There’s so many stores – but unless they’re very, very close, perhaps the amount of stores has that diminishing effect. As long as there’s one store very close to you, that potentially may bring you into the legal market.”
The research underscores the value of convenience among Canadian cannabis users, said Michael Armstrong, an associate business professor at Brock University in St. Catharines, Ontario, who studies Canada’s regulated cannabis market and was uninvolved in Wadsworth’s research.
“If you are a retail chain, you would be looking at this and saying, ‘OK, here’s a study that says, ballpark, 3 kilometers seems to matter,’” Armstrong said. “So, take that into account when you’re planning your locations.”
Naturally, other factors also matter when locating cannabis stores. For example, Armstrong asked, “Can I make enough money to support that number of locations?”
“Do I need more density, or do I have to spread the stores out to keep them profitable?”
Three-kilometer effect
The paper explored the effects of regulated cannabis stores’ proximity between 2019 – the first full year after Canada legalized recreational marijuana in October 2018 – and 2021.
It analyzed data from 15,311 Canadian cannabis users who responded to the International Cannabis Policy Study, using postal codes to sort their locations. (Canadian postal codes generally denote much smaller geographical areas than U.S. ZIP codes.)
The researchers examined whether cannabis users obtained marijuana from regulated stores, illicit stores, regulated websites, illicit websites, illicit dealers, home production or from family and friends.
Those living less than 3 kilometers from a regulated brick-and-mortar cannabis store were less likely to buy cannabis from regulated websites or grow their own flower, compared to those who lived farther away.
“Distance to the nearest legal store was not associated with sourcing from friends or family, dealers, illegal websites and illegal stores,” according to the paper.
“The lack of association may be due to these relationships being established prior to legalization.”
The paper highlights the apparently diminishing effect of reducing cannabis store distance to consumers by comparing Alberta to Quebec.
By 2021, Alberta’s open market for private-sector cannabis retail resulted in a high ratio of cannabis stores to residents: 18.7 stores per 100,000 Albertans.
In contrast, Quebec’s government-owned retail monopoly had just 0.8 stores per 100,000 Quebecois.
Although Albertans were indeed more likely than Quebecois to get their cannabis from regulated stores, they were only 1.6 times more likely to do so.
“Even though we’ve got a 23-fold difference in (the) number of stores, it doesn’t reflect the same magnitude in those purchasing legally,” said researcher Wadsworth.
“As Quebec’s retail store locations are chosen by the government rather than the market, they are geographically more diverse and have been centrally planned to match population distribution,” the study said.
The researchers also determined that Canadian respondents lived closer to regulated marijuana stores in 2021 than they did in 2019 – an effect explained by the increase in adult-use marijuana stores across Canada during that time period.
Additionally, regulated stores became the most common source for cannabis in 2020 and 2021, compared to family and friends in 2019.
That’s “important for legalization,” Wadsworth said, noting, “The whole aim is to bring people into that legal market, and our paper is showing that the movement seems to be there.”
Finally, the research found that a higher proportion of respondents sourced cannabis through regulated channels – and a lower proportion sourced it through the illicit market – in 2021 versus 2019, in line with one of the stated objectives of Canada’s recreational cannabis-legalization law.
Cannabis business takeaways
The association between consumer proximity to regulated cannabis stores and the likelihood of those consumers shopping at those stores may not surprise cannabis retailers.
But it’s a novel finding in academic research, business professor Armstrong told MJBizDaily.
“It’s the first time, as far as I know, that we’ve had a study actually look at that particular question and confirm that if you have a legal store nearby, people are more likely to buy legally,” said Armstrong, whose previous research has linked the number of legal cannabis stores in Canada with an increase in sales of legal cannabis.
“That’s important from a business perspective; it’s important more so from a regulatory or a government-policy perspective,” he said.
In the study, the 3-kilometer distance represents a straight line between a respondent’s postal code and the closest retail store, meaning that it doesn’t necessarily represent the actual travel distance to that store.
Armstrong cautioned that the 3-kilometer figure shouldn’t be taken as “a scientific magic number.”
“Three-point-one (kilometers) is not going to be magically worse than 2.9,” he said.
“But if you’re getting up to 6 or 7 (kilometers), OK, you’re probably going to be not as convenient.”
As of April 2023, Canada had more than 3,740 regulated cannabis retail outlets across its 10 provinces and three territories, according to data compiled by MJBizDaily.
On a national level, that’s a ratio of roughly 0.95 cannabis stores per 10,000 Canadians.
Alberta continues to have the highest number of cannabis stores per capita.
Canadian sales of regulated recreational cannabis increased by 17.9% in 2022 over 2021, totaling 4.52 billion Canadian dollars ($3.4 billion).
The latest monthly retail sales figures showed CA$411.7 million worth of regulated recreational cannabis sales in April.
Canadian medical marijuana sales, which are not available through adult-use retail storefronts, have declined from their peak as recreational cannabis spending has increased.
Source: https://mjbizdaily.com/how-to-get-cannabis-users-to-legal-stores-proximity-is-key-study-says/
Business
Jio’s 1,600-Satellite LEO Constellation Gets Technical Green Light
Reliance Jio has crossed a significant milestone in its space connectivity ambitions after its proposal to deploy a Low Earth Orbit (LEO) satellite constellation of around 1,600 satellites received a positive technical assessment from the Indian National Space Promotion and Authorisation Centre (IN-SPACe).
The evaluation, conducted jointly by IN-SPACe, the Indian Space Research Organisation (ISRO), and the Wireless Planning and Coordination (WPC) wing of the Department of Telecommunications, reportedly concluded that Jio’s proposed system meets the required technical standards and is comparable to leading global satellite broadband networks.
India’s Indigenous LEO Satellite Vision
Under the proposal, Reliance Jio plans to deploy between 1,600 and 1,650 satellites in Low Earth Orbit at an altitude of around 650 kilometres.
The planned constellation is expected to provide high-speed satellite connectivity across India, with approximately 32 satellites visible from any location at a given time. The company aims to roll out the network within the next two to three years, subject to regulatory approvals.
According to industry estimates, the satellite system could deliver 4.5 to 5 terabits per second (Tbps) of total data capacity, making it one of the largest satellite broadband projects proposed in India.
The project is expected to require an investment of $10–15 billion (approximately ₹95,000 crore to ₹1.42 lakh crore), reflecting the scale of infrastructure needed for satellite manufacturing, launches, ground stations, and user terminals.
Regulatory Process Moves Forward
Following the successful technical review, the proposal is expected to move into the next phase of regulatory approvals.
The government may now assist Jio in securing orbital slots, coordinating spectrum usage, and filing applications with the International Telecommunication Union (ITU), the global body responsible for managing satellite orbit and frequency allocations.
Obtaining orbital rights remains a critical step, as Low Earth Orbit has become increasingly competitive due to the growing number of satellite broadband projects being planned worldwide.
Officials also indicated that the proposed satellite architecture has been designed to coexist with future Indian LEO constellations, allowing multiple domestic operators to share orbital resources efficiently.
Broadband, Mobile Connectivity, and Strategic Applications
Jio plans to use the satellite network to provide a range of communication services, including satellite broadband, mobile backhaul, enterprise connectivity, and direct-to-device (D2D) satellite communication, particularly in remote and underserved regions where conventional telecom infrastructure is limited.
The company also intends to establish 20 to 22 ground stations across India to support network operations.
Apart from commercial telecommunications, officials have highlighted the project’s potential strategic importance. A domestically developed satellite constellation could strengthen India’s communication infrastructure, reduce dependence on foreign satellite operators, and support national security requirements.
Reports suggest preliminary discussions are underway regarding the possibility of integrating defence-related payloads into some satellites, enabling both civilian and strategic use.
Major Step for India’s Space and Telecom Sectors
Industry analysts view the technical clearance as an important milestone in India’s expanding private space ecosystem. If Jio secures the remaining regulatory approvals and international orbital clearances, the project could become the country’s first large-scale indigenous LEO satellite broadband network.
The initiative also aligns with India’s broader efforts to expand digital connectivity while strengthening its presence in the global satellite communications market.
Business
Alleged Crores Pharma Scam Mastermind Arrested from Surat
After evading law enforcement for nearly 13 years, an accused linked to a large-scale pharmaceutical fraud case has been arrested by Delhi Police from Surat, Gujarat. The suspect is alleged to have orchestrated a series of financial scams involving fake identities, forged documents, and dishonoured cheques used to procure high-value pharmaceutical raw materials.
Authorities say the accused, identified as Himmat Singh Lodha, is believed to have defrauded multiple pharmaceutical companies in Delhi of goods worth approximately ₹98 lakh before disappearing and remaining underground for years.
Fake Business Deals and Dishonoured Cheques Used in Fraud
Investigators claim the accused posed as a legitimate pharmaceutical trader and placed bulk orders for expensive drug ingredients, offering post-dated cheques as payment security.
In one documented case from 2013, he allegedly obtained around 550 kilograms of Gliclazide, a diabetes-related pharmaceutical ingredient, valued at over ₹26 lakh. When suppliers attempted to encash the cheques, they were reportedly returned with the remark “account closed.”
Following the transaction, the accused allegedly vacated his office and rented residence and disappeared without settling payments. He was later declared a proclaimed offender in 2016 after repeatedly failing to appear before court proceedings. Authorities had also issued a reward for information leading to his arrest.
Multiple Identities and Repeated Fraud Pattern
Police investigations further link the accused to another cheating case dating back to 2012, where he allegedly used a fake identity, “Kailash Jain,” to obtain a large consignment of Ambroxol HCL, a pharmaceutical compound used in cough medications. The value of that consignment was estimated at around ₹72 lakh.
Officials believe the accused followed a consistent modus operandi—posing as a credible businessman, securing high-value goods on deferred payment terms, and then disappearing after delivery while shutting down business operations.
Investigators suspect that forged business records, fake company credentials, and fabricated financial histories were used to build trust with suppliers and gain access to expensive raw materials.
Multi-State Surveillance Leads to Arrest in Surat
A special Crime Branch team tracked the accused through coordinated surveillance efforts across multiple cities, including Mumbai, Ahmedabad, and Surat. After nearly a month of technical monitoring and intelligence gathering, officials located and arrested him from a residential area in Surat.
Authorities also revealed that the accused had been involved in property-related activities while staying under the radar to avoid detection.
Growing Threat of Corporate Identity Fraud
The case highlights a rising trend of organised financial fraud targeting industries that rely heavily on trust-based transactions and deferred payments. Experts note that criminals increasingly exploit gaps in corporate verification systems by using fake GST registrations, temporary offices, and forged documentation to appear legitimate.
Cybercrime and financial fraud specialists warn that such schemes are becoming more complex with the widespread availability of digital business tools, making it easier to create convincing but fraudulent corporate identities.
Experts Urge Stronger Due Diligence in High-Value Transactions
Experts, including former IPS officer and cybercrime specialist Prof. Triveni Singh, emphasize the need for stricter verification procedures in commercial dealings. He noted that relying solely on paperwork or digital business profiles can expose companies to significant financial risk.
Authorities and industry experts recommend physical verification of business operations, bank account validation, and detailed background checks before engaging in high-value or deferred-payment transactions—particularly in sectors like pharmaceuticals, where single consignments can involve transactions worth crores.
Business
EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices
A growing coalition of European industry groups is intensifying pressure on regulators to take decisive action against Google over allegations of unfair search practices that could reshape competition rules across the region’s digital economy.
Investigation Under Digital Markets Act Gains Momentum
The case is being examined by the European Commission under the European Union’s landmark Digital Markets Act (DMA), introduced to curb the dominance of major technology platforms and ensure fair competition.
Launched in March 2024, the investigation focuses on whether Google has been prioritising its own services in search results, potentially disadvantaging rival businesses that rely on online visibility to reach customers.
Industry Groups Demand Swift Action
Several prominent European organizations have jointly urged regulators to conclude the probe without further delay. They argue that prolonged investigations allow alleged anti-competitive practices to continue, putting European companies—especially startups—at a disadvantage.
Signatories include the European Publishers Council, the European Magazine Media Association, the European Tech Alliance, and EU Travel Tech.
In a joint statement, these groups warned that delays in enforcement are affecting innovation, profitability, and growth prospects for regional businesses competing in digital markets.
Google Denies Allegations
Google has rejected claims of bias, stating that its search algorithms are designed to deliver the most relevant and useful results to users. The company has also proposed adjustments to address regulatory concerns.
However, critics argue that these changes are insufficient and fail to address the core issue of market dominance.
Potential Billion-Euro Penalties
If found in violation of the DMA, Google could face significant financial penalties. Under EU rules, fines can reach a substantial percentage of a company’s global turnover, potentially amounting to billions of euros.
Regulators may also impose corrective measures requiring changes to business practices, which could have long-term implications for how digital platforms operate in Europe.
Wider Implications for Big Tech
The case highlights ongoing tensions between European regulators and major U.S. technology firms. In recent years, the EU has taken a more aggressive stance in enforcing competition laws, aiming to create a level playing field for local businesses.
A final ruling against Google could set a major precedent, influencing future enforcement actions and shaping the regulatory landscape for global tech companies operating within Europe.
As scrutiny intensifies, the outcome of the investigation is expected to play a critical role in defining the future of digital competition across the European Union.
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