"Demand for Cannabis in Portland Falls to a Three-Year Low
Last month, retail cannabis shops across Multnomah County made the
lowest monthly profit they have since early 2019, averaging just $27,000."
"By Sophie Peel and Ethan Johanson
July 13, 2022 at 5:30 am PDT
At least one Oregon product has proved immune to inflation: weed.
In fact, the price of cannabis flower is as low as it’s been since April 2019. It’s retailing at $4.29 a gram, according to an Oregon Liquor and Cannabis Commission database.
The reason for the bargain shopping might give you déjà vu: Oregon has
an oversupply of weed and too little demand. That’s a phenomenon that
has occurred here before—most dramatically in 2018, when growers oversaturated the market and found themselves sitting on worthless
cannabis harvests (“Too Much Weed,” WW, April 18, 2018).
But even then, sales were brisk. What’s driving the low prices this time
is a different phenomenon: Portlanders’ appetite for cannabis has plummeted.
In July 2020, Portland residents bought $21 million worth of flower, the
most weed ever purchased in a single month. This June, sales fell to
$11.5 million—the lowest since June 2019.
“No one’s selling anything, which means no one’s buying anything,” says
Bret Born, owner of Northeast Portland cannabis shop Ascend. “Vendors
and shops are saying that this isn’t a gangbuster summer. Leading into
the fall and winter, we could really be looking at tough times.”"
[snip]
"The customer shortage hasn’t yet caused cannabis retailers to shutter, according to OLCC officials who track licenses. But Whitney expects that
to happen soon: He estimates the annual revenue a weed shop needs to
turn a profit is $2 million, and few are doing such brisk sales.
A recent move by the Oregon Legislature directed the OLCC to pause
processing all new cannabis license applications in hopes the market
would even out. The moratorium, retroactive to all applications filed as
of Jan. 1 of this year, is set to expire in March 2024.
“It gave the OLCC the discretion to enact a moratorium on all action
types based on market demand,” says cannabis lawyer Kevin Jacoby, “in
the hopes it would put some upward pressure on wholesale prices. It
didn’t at all.”
In June 2020, Oregon had 671 cannabis retailers statewide. In 2021, that number jumped to 756. In 2022: 794. That number will jump one more time—likely by around 100, according to Sheehy, before the number stagnates."
https://www.wweek.com/news/2022/07/13/demand-for-cannabis-in-portland-falls-to-a-three-year-low/
THE HORROR! Personally I think we'd be just fine with fewer pot shops. Right now it seems like there's practically one on every corner, everywhere.
TB
On 7/13/2022 12:21 PM, Technobarbarian wrote:
"Demand for Cannabis in Portland Falls to a Three-Year Low
Last month, retail cannabis shops across Multnomah County made the
lowest monthly profit they have since early 2019, averaging just $27,000."
"By Sophie Peel and Ethan Johanson
July 13, 2022 at 5:30 am PDT
At least one Oregon product has proved immune to inflation: weed.
In fact, the price of cannabis flower is as low as it’s been since April 2019. It’s retailing at $4.29 a gram, according to an Oregon Liquor and Cannabis Commission database.
The reason for the bargain shopping might give you déjà vu: Oregon has an oversupply of weed and too little demand. That’s a phenomenon that has occurred here before—most dramatically in 2018, when growers oversaturated the market and found themselves sitting on worthless cannabis harvests (“Too Much Weed,” WW, April 18, 2018).
But even then, sales were brisk. What’s driving the low prices this time is a different phenomenon: Portlanders’ appetite for cannabis has plummeted.
In July 2020, Portland residents bought $21 million worth of flower, the most weed ever purchased in a single month. This June, sales fell to
$11.5 million—the lowest since June 2019.
“No one’s selling anything, which means no one’s buying anything,” says
Bret Born, owner of Northeast Portland cannabis shop Ascend. “Vendors and shops are saying that this isn’t a gangbuster summer. Leading into the fall and winter, we could really be looking at tough times.”"
[snip]
"The customer shortage hasn’t yet caused cannabis retailers to shutter, according to OLCC officials who track licenses. But Whitney expects that to happen soon: He estimates the annual revenue a weed shop needs to
turn a profit is $2 million, and few are doing such brisk sales.
A recent move by the Oregon Legislature directed the OLCC to pause processing all new cannabis license applications in hopes the market
would even out. The moratorium, retroactive to all applications filed as of Jan. 1 of this year, is set to expire in March 2024.
“It gave the OLCC the discretion to enact a moratorium on all action types based on market demand,” says cannabis lawyer Kevin Jacoby, “in the hopes it would put some upward pressure on wholesale prices. It didn’t at all.”
In June 2020, Oregon had 671 cannabis retailers statewide. In 2021, that number jumped to 756. In 2022: 794. That number will jump one more time—likely by around 100, according to Sheehy, before the number stagnates."
https://www.wweek.com/news/2022/07/13/demand-for-cannabis-in-portland-falls-to-a-three-year-low/
THE HORROR! Personally I think we'd be just fine with fewer pot
shops. Right now it seems like there's practically one on every corner, everywhere.
TB
They seem to grow like weeds...
On Wednesday, July 13, 2022 at 6:56:29 PM UTC-7, kmiller wrote:
On 7/13/2022 12:21 PM, Technobarbarian wrote:
They seem to grow like weeds...
"Demand for Cannabis in Portland Falls to a Three-Year Low
Last month, retail cannabis shops across Multnomah County made the
lowest monthly profit they have since early 2019, averaging just $27,000." >>>
"By Sophie Peel and Ethan Johanson
July 13, 2022 at 5:30 am PDT
At least one Oregon product has proved immune to inflation: weed.
In fact, the price of cannabis flower is as low as it’s been since April >>> 2019. It’s retailing at $4.29 a gram, according to an Oregon Liquor and >>> Cannabis Commission database.
The reason for the bargain shopping might give you déjà vu: Oregon has >>> an oversupply of weed and too little demand. That’s a phenomenon that
has occurred here before—most dramatically in 2018, when growers
oversaturated the market and found themselves sitting on worthless
cannabis harvests (“Too Much Weed,” WW, April 18, 2018).
But even then, sales were brisk. What’s driving the low prices this time >>> is a different phenomenon: Portlanders’ appetite for cannabis has
plummeted.
In July 2020, Portland residents bought $21 million worth of flower, the >>> most weed ever purchased in a single month. This June, sales fell to
$11.5 million—the lowest since June 2019.
“No one’s selling anything, which means no one’s buying anything,” says
Bret Born, owner of Northeast Portland cannabis shop Ascend. “Vendors
and shops are saying that this isn’t a gangbuster summer. Leading into >>> the fall and winter, we could really be looking at tough times.”"
[snip]
"The customer shortage hasn’t yet caused cannabis retailers to shutter, >>> according to OLCC officials who track licenses. But Whitney expects that >>> to happen soon: He estimates the annual revenue a weed shop needs to
turn a profit is $2 million, and few are doing such brisk sales.
A recent move by the Oregon Legislature directed the OLCC to pause
processing all new cannabis license applications in hopes the market
would even out. The moratorium, retroactive to all applications filed as >>> of Jan. 1 of this year, is set to expire in March 2024.
“It gave the OLCC the discretion to enact a moratorium on all action
types based on market demand,” says cannabis lawyer Kevin Jacoby, “in >>> the hopes it would put some upward pressure on wholesale prices. It
didn’t at all.”
In June 2020, Oregon had 671 cannabis retailers statewide. In 2021, that >>> number jumped to 756. In 2022: 794. That number will jump one more
time—likely by around 100, according to Sheehy, before the number
stagnates."
https://www.wweek.com/news/2022/07/13/demand-for-cannabis-in-portland-falls-to-a-three-year-low/
THE HORROR! Personally I think we'd be just fine with fewer pot
shops. Right now it seems like there's practically one on every corner,
everywhere.
TB
I expect most moderate pot puffers just grow their own, with a couple of plants to carry them through the year.... Back in the good old days, when cannabis was illegal, growers were gettin four grand a pound... I knew a Deputy Sheriff in Humbolt.Co., who quit his job because growing weed was so much more lucrative than busting people for using it.... Bet he's sorry now..... Just another present day sufferer, probably?
Smokey the Dope
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