MONTPELIER, Vt. (WCAX) – A decision by Vermont’s Cannabis Control Board to stop accepting new retail applications may be a signal of the end of the era.
In just under two years, Vermont has issued just over 90 retail cannabis licenses. But now, Vermont’s cannabis control board has the power to write rules to influence geographic distribution based on population.
“We had a concern that once we started articulating what our plans were for retail establishments, it might exacerbate this problem of retail saturation,” said Chair of the Cannabis Control Board James Pepper.
So they’re no longer accepting new applications for retailers or tier two cultivators. Pepper says the board is following Oregon’s experience and consequential regulation. Without state interference, cannabis growers and sellers can get hurt, and the protections in place for other small businesses don’t exist in the weed industry.
“You can’t get a bank loan to start a cannabis company. You can’t have a line of credit to make ends meet at the end of the month. If you’re short on cash, you don’t have bankruptcy protection. You have to pay exorbitant taxes. You can’t write off the normal business expenses that you would if you were any other business. And so you kind of stack all those up, and it’s a very challenging market,” said Pepper.
Not all retailers agree with the decision. Christopher Chabot got his retail license approved on Thursday, and he’s waited years for this. ”Overall I think the decision is going to be negative,” he says.
He also says there’s a trend of cannabis connoisseurs who didn’t have the capital to open a retail store two years ago but began cultivating and manufacturing so they could afford to eventually vertically integrate like he did. He says this decision may put a wrench in the dreams of many, keeping retailers on the black market and consumer costs high. “I believe that more dispensaries, and more competition is good,” he added.
Only two retailers have gone out of business since October 2022. With 10 applications still pending, dispensary dreamers wait with anticipation to make the looming deadline.
Those looking to apply for a retail license or tier two cultivation license have until November 15th before the Cannabis Control Board stops accepting new applications.
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A decision by Vermont’s Cannabis Control Board to stop accepting new retail applications may be a signal of the end of the era. Read More