Washington State has announced that it will increase the number of producer licenses for cannabis businesses, which will change the state of legal cannabis and allow for more competition.
The Washington State Liquor and Cannabis Board recently announced that business owners in the state who currently hold licenses can up their current license number from one to three. This move will increase competition in the state, and it could also lead to increased cannabis supply.
The catch is that this only applies to the current 1,154 licenses that already exist. No new permits will be issued in Washington. The change is due to the fact that the Washington State Liquor and Cannabis Board always intended to allow business owners up to three different licenses, but put the idea on hold during the early days of legalization, when issues were still being worked out.
Originally, the state wanted to allow for different license levels in order to separate different sizes of facilities. Now, the industry will have new options. Those looking to expand their businesses can do so, and people can also partner up or open different sized locations.
“One of the reasons why this conversation was needed is that some producers who were operating at capacity wanted to grow, and they’re looking at other licenses that aren’t being used or used minimally,” Aaron Pickus of the Washington CannaBusiness Association told Marijuana Business Daily.
In addition to the perks of being able to expand existing businesses, many predict that allowing for more licenses will also help increase supply as well. Although increased supply might cause a decrease in price, there is a possibility the industry will balance itself out by offering even more options to consumers.
This expansion is a sign that legal cannabis is working for Washington so far, and the local industry is continuing its growth.