Oregon’s First Week of Recreational Sales Top $11 Million
[dropcap class=”kp-dropcap radius”]W[/dropcap]hen Oregonians first legalized cannabis in November of 2014, everyone wondered what the Oregon recreational market would look like. Last week, when the doors to cannabis stores were finally opened to recreational users for the first time, we all got our answer: The Oregon recreational market is booming! According to the Retailers of Cannabis Association, there were over $11 million dollars in sales the first seven days. Some dispensaries opened up just after midnight on October 1, 2015, just for the recreational inauguration. Most shops would only get dozens of medical patients each day, and now their numbers are soaring into the hundreds as they serve both medical and recreational users. The budtenders at many dispensaries have also noticed a huge swing in the different customer demographics. There are people who have never smoked before who just want to come and check things out, and then there are older customers who haven’t smoked for 10 or 20 years who want to rekindle the flame now that things are legal. Many of the shops even have a special window or counter for recreational clientele, so medical patients don’t have to wait in long lines to get what they need.
Since many dispensaries are now catering to both recreational and medical markets, many medical cardholders have been inconvenienced. Since July, Oregonians have been permitted to smoke at home and carry small amounts of cannabis. But now, anybody 21 and over can walk into any number of shops and purchase herb over the counter. The prices of bud have shot through the roof, and getting an inexpensive ounce of cannabis has become extremely difficult. After the first week of recreational sales, many stores and dispensaries were down to crumbs of flower, and didn’t realize how ill prepared they were to supply for the overwhelming demand. Luckily, growers have yet to be regulated, so they can continue to feed the market and keep customers happy.
Soon, people will be able to buy more than a quarter ounce, and hopefully by next year, they will also be able to purchase concentrates and medibles. Despite all the cash surrounding Portland these past weeks, (shops can still only sell with cash transactions and many have ATMs inside), crime has not increased.
The recreational cannabis sales in Oregon from October 1-7 more than doubled those of Colorado after they started selling recreationally, and more than quadrupled the sales of Washington’s first week. The first day in Oregon alone brought in around $3.5 million.
Most of the big numbers in the early sales in Oregon can be attributed to the already existing medical cannabis infrastructure in the Beaver State. Over 250 Oregon dispensaries have announced their plans to sell to recreational clientele. On Colorado’s first day of sales, 24 stores were in existence. Washington had four. Because of the medical cannabis market, and the already booming black market in Oregon, there was already a big supply of green flowing around the state. Many large companies have invested in big indoor warehouse grow operations, pumping up production. Since Oregon growers aren’t facing any restrictions yet, they can feed into that flow as much as possible—for now.
All those green sales were estimated by the state to bring in 25 percent of the new tax revenue for Oregon this year, but it looks like that percentage might actually be much higher. There was an estimated $9 million dollars in tax revenue that recreational sales were expected to bring in for the first year, and now it’s projected to be almost three to four times that much. In January, cannabis taxes will take effect and change the game. All that new tax revenue is already intended to fund schools and mental health programs, the state police and a big portion will go to the cities and counties allowing recreational sales.
Even though the herb is legal now, and you can even buy it at a legitimate store, there are still some things to be careful about. It is still illegal to use in public, drive under the influence and carry over state lines. Many companies still do not permit their employees to smoke cannabis, so it is important to know the policies for where you work. There is a lot of existing confusion about what you can and can’t buy, but just remember: Anyone 21 years and older can grow four plants, carry one ounce and have eight ounces at home.
