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V O L . X X V I I I N O. X I I I J U N E 2 7 , 2 0 2 2 16 B U S I N E S S O F C A N N A B I S T he town of Manchester in Kennebec County has a popu- lation of about 2,450, yet boasts four cannabis stores. Still, the proprietors there don't see the market as saturated because they see themselves catering to an expanding market with the nuances and expertise to support their own customer bases. "Everyone in town has been estab- lished and has a market. It's like the alcohol industry: there's all sorts of variet- ies out there. You just have to find your niche and product and market," says Alex Burnham, cultivation manager of AAA Pharmaceutical Alternatives. He cites the little things. "We hand- trim all of our product. We grow in soil, which makes for a richer and more flavorful flower. We grow small batches and have attention to detail. We've got a boutique feeling. We're not trying to mass produce," Burnham says. AAA Pharmaceutical Alternatives first began as a medical marijuana dispensary but has shifted to adult- use sales. "We've been here for five years and steadily seen sales grow year over year. ere have been changes in attitudes around cannabis. It's more accepted. We see more types of people coming in, from your 21-year-olds to 75-year-olds," Burnham says. "Just like any market, it's about supply and demand, but the demand keeps growing." David Vickers, owner of Origins Cannabis Co. in Manchester, also sees similarities between the canna- bis market and the alcohol indus- try. Beer, for example, ranges from national producers like Budweiser to craft breweries like Allagash Brewing Co. and Shipyard Brewing Co., he explains. "How many beer companies are in Portland alone?" Vickers asks. "ey all have a market and a following. I've never felt crowded here. is is a rocket ship and I've never looked back." An engine of economic growth In Maine, there are 90 active adult-use retail stores across 34 municipalities. Retailers of adult-use cannabis had sales of $82 million in 2021, compared with about $4.3 million in an abbreviated, shortened first year of 2020 when sales were legalized starting in October. is year is already on pace to top last year's sales. In the first five months of 2022, sales of adult-use marijuana totaled $51.5 million. Even by a different measure, cannabis is still the crop that keeps on giving. Michael Donihue, Colby College's Herbert E. Wadsworth Professor in Economics, looked at the 12 months starting with legalized sales in October 2020 through September 2021. In those first 12 months, recre- ational cannabis generated $58.5 mil- lion in sales, $8.8 million in sales and excise tax revenue and $65 million from direct and indirect spending by businesses and employees associated with the industry, he adds. e industry also supported 900 jobs in the first year, Donihue says. "It's a small business engine of eco- nomic growth. It had a dramatic rise in just the first year," Donihue says. P H O T O / F R E D F I E L D Alex Burnham, cultivation manager of AAA Pharmaceutical Alternatives, says each cannabis store needs to find a niche in the fast-growing market to succeed F O C U S The industry 15 years ago was completely illegal. And 10 years from now it's likely to be federally legal. That's a huge amount of change. — Hannah King Dentons Bingham Greenebaum Cannabis retailers working to define the nuances of the marketplace ECONOMICS Can-do B y J e s s i c a H a l l

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