This post is from Points, the joint blog of AIHP and the Alcohol and Drugs History Society. Points publishes original reflections about the history of drugs, medicines, alcohol, pharmacy, and their allied fields.
In the year 2020, the State of Maine officially legalized the sale of recreational marijuana—good timing for the industry, considering that the pandemic restrictions put in place by the administration of Governor Janet T. Mills provided an opportunity for medical and recreational users to sit back in their homes, relax, and partake in the consumption of cannabis. Initial sales of recreational marijuana in October 2020 set high expectations, but the opening boom was followed by an oversupply in local markets that hint at potential problems for the industry in years to come.
In the past, illegality kept marijuana prices high and supply low but not anymore. The legal market now faces the structural challenges of supply and demand, and, like any new rising commodity, cannabis must experiment with market adjustments, which will result in winners and losers. Unfortunately, it is small businesses that must confront these challenges in the middle of a pandemic. It is not all bad news for the consumer, though, since these are good times to enjoy the highest quality and abundant variety of “flower” in the state’s market history. Overall, there are good omens for the years to come.
Please click the read more button below to see the rest of this post on Points by Dr. Stefano Tijerina, a lecturer in management and the Chris Kobrack Research Fellow in Canadian Business History at the University’s of Maine’s Business School.
