Pubdate: Fri, 30 Oct 2009
Source: Aspen Times Weekly (CO)
Copyright: 2009 Aspen Times
Contact: http://drugsense.org/url/zKpMPhQ7
Website: http://www.aspentimes.com/
Details: http://www.mapinc.org/media/3784
Author: John Colson, Staff Writer

WILL TOO MANY POT DISPENSARIES SATURATE THE MARKET?

Maybe, But Not Yet, Say Owners Of Medical Marijuana Businesses

GLENWOOD SPRINGS - No one seems to know how many  medical marijuana
dispensaries have opened in Colorado  in recent years, although a
frequently expressed  estimate is that "a lot" of the centers are operating.

And along with that rather vague assessment is the  belief that right
here in the vicinity of Glenwood  Springs -- in the nearby towns of
the Colorado and  Roaring Fork river valleys -- the density of the 
dispensaries may be as high, per capita, as anywhere in  the state.

Colorado voters approved the medical use of marijuana,  for certain
ailments, by voting for a constitutional  amendment in the 2000
general election.

A continuing federal prohibition against any use of pot  slowed
acceptance of medical marijuana in Colorado, but  a recent policy
reversal by the Obama administration  changed all that. Attorney
General Eric Holder's  statement that federal agents are to leave
medical  marijuana patients and providers alone has spurred a  sudden
surge in the industry statewide.

According to an informal count by the Post Independent,  based on the
advertising department's accounts list and  other reports, there are
as many as 19 or 20  dispensaries serving the area between Aspen,
Glenwood  and Rifle.

Some, however, are interlopers from outside the  immediate area, such
as one in Leadville and one in  South Park, which are advertising in
the Roaring Fork  Valley.

The website, coloradomedicalmarijuana.com, in its  "dispensaries"
section, listed 30 outlets on the Front  Range from Fort Collins to
Pueblo.

One Carbondale dispensary operator said there are  probably "hundreds"
operating around the state by now.

In light of what one man called "a modern gold rush,"  some are asking
whether there will be any such thing as  saturation of the local market.

"I think about that almost daily," said Billy Miller,  co-owner of the
LEAF dispensary, which has outlets in  Aspen and Carbondale.

It was Miller who likened the valley's newest growth  industry to the
California gold rush of 1849, when  miners known as "49ers" streamed
into the state from  all over the country and the world.

"I've been calling all of us the '09ers," Miller said.

Cheryl Sullivan and her stepsons, Sean, 26, and Keaton,  19, operate
the Green Medicine Wellness dispensary in  Glenwood Springs, which
opened its doors on Oct. 26.

Green Medicine, said Cheryl Sullivan, is "not just a  medical
marijuana facility," but also offers different  types of massage
therapy and, soon, acupuncture -- a  diversity of services that is not
uncommon in the  industry.

As for whether they worry the market is becoming  oversaturated,
Keaton Sullivan said, "Yes and no. I've  noticed some of ‘em are
in it just for a quick  buck. But we're in it for the mission."

The Sullivans got into the business, they said, after  an uncle of the
two young men died of cancer and spent  the last part of his life in
severe discomfort, which  they felt could have been lessened if he'd
had access  to medical marijuana.

"It just didn't seem right," said Keaton, and when they  moved to
Colorado a couple of years ago they decided to  go into the business
to keep others from having the  same fate.

"My issue is, there are patients out there who are  suffering," said
Sean. If that remains the case, he  predicted, "then there aren't too
many dispensaries.

"We believe it's a healthier form of medicine" than  pain pills or
other, more traditional treatments for  ailments, he continued, adding
that with "vaporizers"  [a less painful inhaling device] and pot
cooked into  food, "you don't even have to smoke."

Joseph Jones, who said his CMD dispensary in Carbondale  was the first
on the Western Slope when it opened last  July, predicted that "the
numbers will continue to  grow" but added, "I feel there should be a
limit to it  at some point."

But, like others interviewed for this story, Jones said  the limit
will come organically, as competition  eliminates some and permits
others to thrive.

"We'll weed out the phonies," he joked.

Different operators had differing opinions about how  many customers
an individual outlet needs to stay in  business. Jones said 50 or so;
the Sullivans believe it  is closer to 100.

The sense of competition that exists seems to be on a  friendly basis,
to date.

"Everybody in the industry kind of knows everyone  else," Jones
said.

"We're on good terms with other dispensaries," Keaton  Sullivan said.
"We're not trying to cut each others'  throats. The sandbox is big
enough for everyone."

The Sullivans said their marketing plan includes  "reaching out" to
the American Cancer Society and area  physicians, to discuss the
benefits of medical  marijuana for their constituencies. Cheryl
Sullivan  said that they have learned of some patients who might 
qualify for medical marijuana, whose doctors refused to  "recommend"
them for the treatment.

Concerning the potential for competitive thinning of  the ranks among
dispensaries, an Aspen attorney who  represents a number of
dispensaries is optimistic about  the survival of those that are open
now.

"I think competition has to take care of itself," said  Lauren Maytin,
whose client-dispensaries can be found  from Aspen to Rifle. "I think
the market will level  out, become stable."

As for the dispensaries closest to her office, two of  whom are her
clients, she said, "I firmly think the  four will survive in Aspen,
because they're all a  little bit different."

The consensus among the vendors interviewed for this  story was that,
if there is a saturation point in the  local market, beyond which
additional dispensaries  would become a problem, it has not been
reached yet.

"If there's not enough patients, obviously, we [some of  the current
crop of vendors] don't make it," Sean  Sullivan said. "We believe that
the patients are here." 
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MAP posted-by: Richard R Smith Jr