It’s been said before that nothing is certain except for death
. Well, in the case of the Oklahoma cannabis industry, here is what is certain…
How do we know this will happen? Because it already has… in Oregon.
Let’s dig in a little deeper.
Oregon voted to legalize recreational cannabis on Nov. 4, 2014, and it became available to consumers on July 1, 2015. The green rush boomed
there like it does in every legalized market, and cultivators, processors, and dispensaries were flush with money.
But the euphoria was short-lived. The retail price of a gram of legal cannabis plunged from $10 to $5 between October 2016 and December 2018. A pound of outdoor-grown, mid-grade cannabis was going for as low as $350 wholesale. By January 2019, state regulators reported that cultivators had stockpiled more than 1.3 million pounds of cannabis
, which is shocking when you consider that Oregonians typically consume only 300,000-350,000 pounds per year.
It’s simple: Oregon placed no caps on cultivation licenses. Far too many cultivators were granted licenses than could be realistically supported by the legal market. Then the problems extended to dispensaries, who faced sinking margins and competitors on every corner.
Why does matter to growers in Oklahoma?
The same scenario that unraveled the market in Oregon is now beginning to play out In Oklahoma. But we believe it will happen even faster than it did in Oregon,
and has the potential to be much worse. That’s because the bar to entry for cultivators is even lower in OK, and there are even less regulations.
There are now more licensed cultivators in Oklahoma than there are in Oregon, despite the fact that the legal market in Oklahoma is limited to 200,000 medical card holders, when Oregon is recreationally legal and has an adult population of 3.5 million
We weren’t kidding when we called it the OKannapocalypse!
Yes, we are a marketing agency, so we may be biased, but you don’t have to take our word for it. Just take a look at the most successful cannabis cultivators in Oregon (all made the list from Portland Business Journal
published in April 2019 that ranked the top cannabis companies by revenue and employee count.)
, and East Fork Cultivars
; these cultivators have all used solid branding to create a foundation and exceptional marketing to propel their business growth and stand out from the pack.None of these cultivators implemented good branding and marketing as a reaction
to the poor market conditions in Oregon, they used marketing to get ahead