There’s a wave sweeping across Alaska, a green wave of opportunity transforming the face of retail – the burgeoning cannabis industry. With a market on a steady rise since the first dispensary opened its doors in 2016, it’s time you considered riding this wave by opening your cannabis dispensary in this frontier state. But where should you start? The legalities and logistics can be daunting.
That’s where we come in. This comprehensive guide is designed to walk you through every step of opening a legal marijuana dispensary in Alaska. From understanding the cannabis market, navigating through the licensing process, and setting up your store for success, we’ve got you covered. If you’re ready to embark on this exciting journey, read on and let’s dive into the world of cannabis retail in Alaska.
Understanding the Alaska Cannabis Market
An Overview of the Cannabis Market in Alaska
In Alaska’s remote and rugged landscapes, an industry is booming – the cannabis market. Since the first dispensary opened in 2016, legal cannabis sales have shown a consistent uptick. This growth isn’t merely a trickle but a torrent, with the market projected to generate over $130 million in sales this year alone. This figure is particularly noteworthy given Alaska’s sparse population, which stood at just over 736,000 inhabitants according to the 2020 Census.
The Role of Tourism in Cannabis Sales
Tourism plays a significant role in expanding the cannabis market in Alaska. As one of the first few cannabis-friendly jurisdictions, Alaska has benefited from an influx of tourists from states where legalization attempts have failed. According to some Alaskan businesses, visitors account for up to 20% of their cannabis sales.
Alaska’s stunning natural beauty and the allure of the Northern Lights already draw in thousands of tourists annually. The legality of cannabis adds an extra dimension to its appeal as a tourist destination. For many visitors, the opportunity to legally purchase and consume cannabis products enhances their overall Alaskan experience.
Types of Cannabis Businesses in Alaska
Alaska offers unique opportunities for those who want to get involved in the cannabis business. From retailing cannabis products to breeding and cultivating plants, numerous models are available for prospective entrepreneurs. Here’s a detailed look at the different types of business models in the cannabis industry in Alaska.
Retail
Retail cannabis businesses in Alaska involve the sale of cannabis, edibles, CBD oil, and other goods for individual consumption. Retail is one of the most straightforward ways to get into the cannabis industry. Some stores even allow customers to consume alcohol there, just like a pub.
Breeding and Cultivation
Breeding and cultivating cannabis plants is another business model. You can sell your crops to distributors or manufacturers as a breeder or cultivator. This business model requires much knowledge about cannabis horticulture, but it can be profitable for those with the right skills and resources.
Manufacturing
Manufacturing your cannabis products or extracting THC and CBD for use in them is another possible business model. This involves processing raw cannabis into various consumer goods, such as edibles, tinctures, and topicals. To succeed in this model, you must keep up with market trends and develop products that meet consumer demand.
Testing
In the cannabis industry, testing products in a lab to ensure their quality, purity, dose, and other factors is another business model. As a testing facility, you’ll help ensure that the cannabis products are safe and effective. This model requires a significant investment in lab equipment and expertise. Still, it’s crucial to the integrity of the cannabis market.
Distribution
A distributor is a person or company that transports cannabis products from one place or business to another. This model is essential for getting products from cultivators and manufacturers to retailers. It requires logistics skills and resources, but it can be a lucrative business for those who can navigate the regulatory landscape.
Hybrid Models
Alaska also offers opportunities for hybrid cannabis business models. These models combine cannabis products with other well-liked pastime, such as drawing, yoga, etc. This innovative way to engage customers and create a unique value proposition.
You need to apply for the appropriate license to operate any of these businesses. The Alcohol and Marijuana Control Office (AMCO) in Alaska guides this process. Depending on the business model, you may need a retail marijuana store license, a marijuana product or concentrate manufacturing facility license, a standard or limited cultivation facility license, or a testing facility license.
Getting Licensed
When you’re ready to embark on your journey to open a cannabis dispensary in Alaska, one of the first and most important steps is to get properly licensed. The process can seem overwhelming, but you can navigate through it successfully with careful attention to detail and a solid understanding of the requirements. Let’s dive into the details of the different marijuana licenses available in Alaska, the steps to apply for a license, and the associated costs.
Types of Marijuana Licenses in Alaska
There are six different marijuana licenses available in Alaska, each catering to a specific aspect of the cannabis business:
- Marijuana Product Manufacturing Facility: This license is for businesses that want to manufacture their cannabis products.
- Marijuana Concentrate Manufacturing Facility: This license is for businesses that plan to extract THC and CBD in cannabis products.
- Retail Marijuana Store: This license is for businesses that want to operate a storefront selling cannabis, edibles, CBD oil, and other related goods.
- Standard Cultivation Facility: This license is for businesses that want to breed and cultivate cannabis plants for sale to distributors or producers.
- Limited Cultivation Facility: This is another license for cultivation but with certain restrictions.
- Testing Facility: This license is for businesses that want to test cannabis products to ensure their quality, purity, dose, and other factors.
Steps to Apply for a License
The application process for a marijuana license in Alaska involves multiple steps and requires careful preparation:
Step 1: Collating the Required Documents
The initial step involves gathering all the necessary documents. These include:
- Proof of an appropriate location for the outlet
- An operating plan
- Proof of age (must be 21 years or older) and valid photo identification
- Fingerprints of all individuals invested in the business
- Proof of notifying the local city council about the proposed establishment
- Proof of scheduling a site inspection and obtaining a handler permit
- Proof of registration for paying excise taxes
- Details about intellectual property and standard operating procedures
Note that the documents required will depend on the type of license you are applying for. Be aware of the existing prohibitions for cannabis establishments in your municipality.
Step 2: The Application and Selection Process
After collating all the required documents, you can start the application process:
- Begin your retail marijuana license application at the Alcohol and Marijuana Control Office’s (AMCO) marijuana licensing page.
- After submitting the initial online application, you must submit further paperwork and give the requisite public notice, including contacting your local government.
- AMCO will examine your application and all supporting information after the public notice period.
- The 60-day waiting period for local government objection will begin once the application is complete. The application will be reviewed at the regularly scheduled Marijuana Control Board meeting.
- If the board approves the application, AMCO will inspect the proposed site to ensure it complies with all standards before issuing a license.
Costs Associated with the Application, License, and Renewal
There are several fees associated with the application process and licensing:
- The application fee for a new marijuana business is $1000.
- There is a $48.25 fingerprint cost for each person connected to the application.
- The license fee for a retail marijuana store is $5000.
- The renewal fee for a retail marijuana store is $7000.
It’s important to remember that getting licensed to operate a cannabis dispensary in Alaska is a serious undertaking. It requires thoroughly understanding many documents, licenses, regulations, and policies and staying updated with frequent changes to state cannabis regulations.
Setting Up the Store
Location Selection: Constraints and Requirements
Choosing the perfect location for your cannabis dispensary is of utmost importance. Local zoning laws and state regulations play a significant role in this decision. In Alaska, for instance, retail cannabis stores must be situated more than 500 feet from a school, a youth or entertainment center, a structure where regular religious services are held, or a prison.
The location of your store will significantly influence your customer footfall. High-traffic areas are generally preferred, but they also come with higher rents. It is essential to strike a balance between visibility and affordability.
Custom Display Cases: Showcasing Your Products
The presentation of your products can significantly affect your sales. Custom display cases are a great way to showcase your products and create an inviting atmosphere in your store. Seattle Products is a renowned manufacturer known for its high-quality, customizable display cases. With a wide range of designs, we offer cases suitable for cannabis dispensaries. From compact countertop cases for small items to large standalone cases for various products, Seattle Products has options for every need.
Custom display cases not only serve the purpose of displaying your products but also add to the aesthetics of your store. They can be designed to match the interior décor of your store, creating a cohesive and visually appealing shopping environment.
Contact our experts at Seattle Products and get your custom display case carefully designed for your store.
