Its new location was licensed and approved by the Oregon Health Authority, but the Office of Neighborhood Involvement - a non-regulating agency - asked Nectar to shut down the store. More recently, Nectar encountered another similar problem. That attitude became part of the company’s strategy. “I’ve learned long ago, don’t pick a fight with an agency or a governing body. “We try to do things the right way, so when the state government asked us to move, it just made more sense to say okay and do what they wanted,” Karlebach says. The company opted to move to a new location in East Portland.Īn employee rides a tractor to get a better view of the garden. For example, about two months after opening the first store, Nectar hit a snag when a school opened nearby. Nectar had to overcome a number of hurdles in the beginning, due to the cannabis industry’s often chaotic regulatory environment. They’ve got a fabulous brand of their own and as a vendor they’re also fabulous to work with.” They’ve done a really great job of capturing the marketplace. “We’re a multi-million-dollar little chocolate company now. “They’ve played a big part in our success, no doubt,” Grön owner Christine Smith says. To stock these products, the company works with a host of small, local vendors, including Grön Chocolate, a growing Portland artisanal maker of infused chocolate bars. Extracts, concentrates and edibles are primarily outsourced. Applegate Valley Organics cultivates about 18,000 plants annually at its seven different grow locations, which supply 75% of Nectar’s flower. Plus, two greenhouse facilities allow the company to grow year-round. ![]() Nectar stocks its stores heavily with its own line of cannabis - Applegate Valley Organics - grown primarily outdoors in Southern Oregon’s rich marijuana farmland. He projected the slow licensing process had cost Portland marijuana businesses more than $22 million in lost revenues each month.īudtender Jesse Lee opens a jar for a customer to inspect the product “It seems ironic that, given the number of cannabis businesses in Portland and the Office of Neighborhood Involvement’s stated goal of partnering with businesses to promote economic activity, the lack of licenses would indicate that Portland is one of the state’s least cannabis-friendly cities,” Whitney said in a press release. Meanwhile, Portland businesses have faced an extreme bottleneck with the city’s dual licensing requirement (cannabis businesses must receive a license from both the city of Portland and the Oregon Liquor Control Commission).Īccording to economist Beau Whitney of Whitney Economics, only 19 recreational licenses have been issued out of 355 applications. In December, the Oregon Health Authority released updated rules that essentially allow larger batches to be tested, with the intention of freeing some of the blockage. Many have pointed to a lack of certified testing labs and the strict quality assurance regulations that have choked off the industry. – October was the lowest month for marijuana sales since May 2016. – From September to November, same-store sales declined an average of 21%. – Total dispensary sales declined 8.5% from September to October (down to $29.5 million) 1, state regulations halted the early start program that allowed licensed medical dispensaries to sell to all adults. 1, 2016.Īccording to analysis of retail sales by BDS Analytics, edibles suffered the greatest impact with a 32% sales decline from September to October.Īcross-the-board drop-offs have challenged hundreds of businesses as they attempt to transition from medical to recreational. Testing regulations, licensing woes stall industry growthĪfter months of outpacing tax revenue projections from the state, Oregon’s cannabis industry hit a snag with the implementation of new packaging and testing regulations that took effect on Oct. The chic space boasted a clean, open feel and showcased well-lit product displays. With that goal in mind, the company opened its first dispensary in Portland’s upscale Pearl District. ![]() We wanted to take medical marijuana out of the back room and into the light. So, we spent a lot of money to make everything nice, upfront and clean. “Most dispensaries back then were dirty and dark - you felt like you were part of an illegal drug deal,” Karlebach says. After all, if the industry wants to be respectable, it needs to look the part, says Devra Karlebach, the company’s chief operating officer. That image is exactly the vibe that Nectar, an Oregon-based marijuana retail chain, wanted to avoid when it opened its doors in 2014. Seven cultivation locations operating under the Applegate Valley Organics brand supply a large percentage of the flower in Nectar’s retail stores.Įarly medical marijuana dispensaries established a well-known stereotype of seedy, hole-in-the-wall retail shops designed to fly under the radar of law enforcement.
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