Robert Gehrke: The potential expansion of at-home cannabis deliveries has some dispensaries concerned about market saturation and unfair competition.
The potential expansion of at-home cannabis deliveries has some dispensaries concerned about market saturation and unfair competitionA bill making its way through the Legislature could significantly ease restrictions on medical marijuana home delivery — a proposal that has sparked a bitter turf battle and some are saying would create “Amazon for marijuana.
Both sides have marshaled the state’s top lobbyists — many of whom have direct financial ties to the cannabis businesses — to try to sway lawmakers to their side., which acquired a license for a dispensary in Cedar City and owns a processing facility in Murray. If the bill passes, Zion could use its northern location to break into the populous Wasatch Front market — which makes the dispensaries operating there anxious.
Moreover, because there is no limit on the number of licensed processing facilities, existing dispensaries worry that out-of-state interests could easily snatch up a license — which costs as little as $35,000, depending on the type — and saturate the market . “I’m not arguing it’s not good for me. It’s really good for me,” he said. “But I don’t think of it like that. I think about it from the standpoint of patient access.”
At its core, though, this is a turf war. These dispensaries operate where they do and how they do because that was the rigid system established by the Legislature, and those that benefitted from their location risk losing that advantage.
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