Oregon: 37 New Recreational License Applications In the Past Week Alone

22 April 2016

MJ Biz report

In Oregon, applications continue to pile up for recreational marijuana licenses.

As of April 21, the Oregon Liquor Control Commission counted 890 recreational marijuana business license applications, including 614 for cultivation, 155 for retail, 71 for infused product manufacturing, and 44 for wholesalers. That’s a bump of 37 applications in less than a week.

The agency expects to begin issuing rec permits by the end of the month.

Oregon doesn’t have license caps for recreational businesses. And every applicant will get a license unless deemed ineligible.

The 890 figure probably doesn’t even include all the medical cannabis businesses that currently operate. They won’t be required to have a rec license for several more months, noted Casey Houlihan of the Oregon Retailers of Cannabis Association.

Houlihan expects more than 90% of the existing medical businesses will apply for rec licenses. Many of them simply haven’t gotten around to it.

If that trend continues, Oregon could be on its way to becoming one of the most saturated marijuana markets in the country, largely because of the state’s low barriers to entry.

“You really have to take into account that half of the state isn’t open up to this,” Oregon consultant Liz Fitch added, noting that dozens of counties and municipalities have enacted bans on marijuana businesses.

How the market will evolve is an open question.

Fitch reckons a wave of consolidation will occur, with mergers and companies teaming up to survive and remain competitive. She also said a boom in the number of cultivators could lead to a supply glut and then a price crash.

But Houlihan expects business will pretty much continue as usual, because he believes the rec market will be comprised largely of existing MMJ businesses that will transfer to the new regulatory system.

But that means there’s probably not much room left for new companies angling to get a foothold in Oregon.

“I’m sure we’ll see some shifts occur, but I don’t see a massive wave disrupting everything that we’ve built here. I think that would be overstating it,” Houlihan said. “I don’t see how there will be a new influx stores.”

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