by Lauren Laframboise
In early February this year, Canopy Growth announced that it would close its cannabis flower production plant in Smiths Falls, Ontario. The facility was located at 1 Hershey Drive in the former Hershey chocolate factory that had once been a major employer in the small town. After Hershey’s closed in 2008, a subsidiary of Tweed Inc. (now Canopy Growth) purchased the plant in 2013 and invested $1.5 million to retrofit the chocolate factory to produce cannabis. After the Canadian government legalized the drug, Tweed Inc. raised $15 million in start-up capital, expanded their team, and filed for public listing on the TSX Venture Exchange. While the cannabis industry was on an initial high after legalization, the market hasn’t quite panned out as business executives had hoped.
When Canopy Growth announced the closure and 350 layoffs in the small town, a CTV news article reported that Smiths Falls residents had a feeling of déjà vu. “I think a lot of people are just confused,” said Ryan Bennett, who grew up in Smiths Falls. “Like why now after all the investments, the projects, that kind of things? Obviously it’s a business decision.” But it wasn’t just Hershey’s and Canopy that had left town. The former “chocolate capital” turned “pot capital” had seen several other major employers close up shop over the years. Continue reading