Oregon has amongst the most open regulatory environments with the fewest barriers to entry in the cannabis industry. There are no meaningful restrictions on out-of-state ownership, vertical integration, or the number of dispensaries that can be held under common ownership.
This framework has made it very challenging for operators to generate acceptable returns, as cultivators rushed in and flooded the market with product.
October 2021 | Dutchie received $350M in a round led by D1 Capital Partners
March 2021 | Dutchie acquired Greenbits and Leaf Logix Technologies
February 2020 | Curaleaf acquires Select, highlighting the West Coast brand advantage
Historically, investors have shied away from this oversaturated market. However, early signs of consolidation have been spotted, particularly at the retail level. Ongoing consolidation and rationalization of underperforming dispensaries will improve the competitive landscape over the intermediate-term.
Marketing acumen and brand development are the keys to success in this market, where only shallow strategic moats exist around licensed operators. Look for those players with scale and brands who can command shelf space to win in the Beaver State - and enjoy the spoils of this $1.2B market.
*There are multiple tiers for cultivation licenses. Tier 1 allows up to 10K sq.ft. of outdoor grow and 5K sq.ft. of indoor grow and Tier 2 allows up to 40K sq.ft. of outdoor grow and 10K sq.ft. of indoor grow.