Picking A Region For Your Kentucky Cannabis Business
Which Region is Right for Your Retail Cannabis Dispensary
We’re a little more than halfway through the Kentucky medical cannabis application window. While the Office of Medical Cannabis recently released a message to all applicants urging them to submit applications by August 15th, you can still apply all the way through August 31st. We’ve received plenty of guidance and resources, but the Office can only offer so much.
When you’re thinking about applying, considering there is a qualified lottery component to being awarded a license, you likely want to strategize how to improve your chances. So, let’s look specifically at the dispensary business type opportunities the Kentucky regions you can apply in.
Some Background on Kentucky’s Regional Cannabis Requirements
The Commonwealth (not state, Commonwealth) of Kentucky will be divided into 11 regions for dispensary licenses. This is important to clarify as the other cannabis license types being issued in this application round (cultivation and processing) are not subject to regional application requirements. There will be four retail cannabis dispensary licenses issued per region, with the exception of regions 1 and 2, which will have six licenses (based on their high population figures).
How Many Cannabis Applications Can I Submit?
Notably, applicants can submit upwards of eleven (11) retail cannabis dispensary applications, but they would need to be for each of the eleven regions — no multiple submissions for the same applicant within the same region. Which is where strategizing based on the region comes into play. If you can only submit so many applications, you may want to think about where you have the best chance of winning and starting a cannabis business.
The Competitive License Regions: Bluegrass and Kentuckiana
Undoubtably, the regions which will receive the most cannabis applications are regions 1 (Bluegrass) and 2 (Kentuckiana). Fayette County in region 1 is where Lexington is located and Jefferson County in region 2 is where Louisville is. There are over 1.7 million residents in these two regions combined, roughly 40% of the entire Commonwealth’s population. And from a tourism perspective, these two regions see the highest number of tourists (and potential for cannabis tourists) with the vast majority of the over 75 million Kentucky annual tourists arriving in or spending time in one of (if not both) of these regions.
More Cannabis Licenses, More Cannabis Applicants
The twelve dispensaries located here will have plenty of opportunities to reap tremendous financial profit—especially if/when Kentucky allows for adult-use cannabis, which tends to favor already operational medical dispensaries. But this is where more, if not the majority of the applications are likely going to submitted for. In a license lottery process, regions 1 and 2 will have the highest demands. High risk with submitting an application in these regions, but high rewards as well if you are selected.
Hidden Gem Regions For Kentucky Cannabis
There are still nine (9) other regions to consider and some of these regions have very few people. Region 7 (Pennyrile) has a total population of just 196,732. Four other regions (regions 3 (Northeast), 4 (South Central), 8 (West Kentucky), and 11 (Green River)) have populations less than 300,000. These may not have as many people or tourists as some of the major urban areas of Lexington and Louisville, but they may be in your best interest to look at when starting your cannabis plan.
Less Cannabis Demand, Less Business Competition
There are likely less properties available for a suitable Kentucky dispensary, but you have a higher likelihood of being awarded a cannabis license if you pursue a region with less demand. However, it should then be worth looking at in the long run, a dispensary license being awarded does not guarantee success. You will still need to have a compliant and robust operating facility with good staff, product offerings, and local connections to bolster your cannabis business.
Plan for Your Kentucky Cannabis Region with Canna Advisors
Ultimately, the decision is yours where you want to apply for your Kentucky cannabis dispensary. A high-risk, high-reward region with no shortage of potential patients and customers, or a smaller region that may be able to better guarantee a license but doesn’t guarantee operational success. These are the tough but important conversations to have, and we at Canna Advisors are more than happy to educate, consult, and advise on the best approaches to improve your chances in the Kentucky cannabis marketplace.
From financial models to business planning, through to license submission, Canna Advisors can assist in bringing your vision to life in whatever region you choose. We also have staff to on-call via hourly consulting sessions to answer your crucial questions.
Contact our Kentucky cannabis consultants to learn more about the benefits of the various regions in Kentucky and prepare your retail dispensary application for the upcoming deadline.