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  • Written by Jeremy Storton

How Central Oregon Sparked a Multibillion-Dollar Cannabis Industry

Cannabis

My introduction to marijuana came from “Fast Times at Ridgemont High.” As a kid, I watched Jeff Spicoli, played by Sean Penn, tumble out of a smoky VW Microbus. For me, he defined the stoner image with his classic phrase, “Hey bud, let’s party.” [Photo above by Tambi Lane]

Spicoli was on my mind as I filled out my Oregon election ballot in 2014. When it passed, Measure 91 made Oregon one of the first states to legalize recreational weed. This redirected money from the black market toward tax revenue. Cannabis took off similarly to the craft beer explosion of the 2000s. Instead of brewers, underground “pirates” stepped into the light. They created a multibillion-dollar industry.

In March 2014, Dr. Jolly’s was the first medical marijuana dispensary to open its doors in Bend. Today, Oregon has 820 dispensaries, with 27 located in Bend. Ross Lipson was one of the first to spot the opportunity. After waiting in a long dispensary line on day one, he realized cannabis sales needed an upgrade. With his brother Zach, he launched Dutchie in Bend in 2017. Dutchie is an all-in-one e-commerce platform for cannabis. After an early valuation of $3.75 billion in 2021, Dutchie became a giant. Today, it is one of North America’s biggest cannabis tech companies. While money doesn’t grow on trees, for a time it seemed to grow on weed.

Oregrown
Oregown includes support of the community in its business plan. Photo courtesy of Oregrown

Local Dispensaries, Community Leaders

The stoner image persisted in the early days. This happened despite the products becoming safer and better. However, cannabis somewhere along the line dropped the stigma. As athletes started rubbing it into aching muscles, older generations found medicinal uses. Spicoli began to lose his status as the poster child of pot.

“Taxes generate approximately $1.25 million annually for just the greater Bend area,” said Kevin Hogan. He cofounded Oregrown, a Bend-started dispensary. Oregrown now has five locations, including its newest in Redmond. Oregon collected approximately $153 million in excise tax from cannabis. This is according to the state’s 2024 Comprehensive Financial Report. Deschutes County’s portion was just shy of $1.5 million. The county applied this toward public safety and law enforcement. The funds also support criminal justice, public health, and various community programs.

Tax revenue is only one way to look at the impact of weed. “We’ve created about 60 jobs in Deschutes County,” Hogan said. “These jobs meet or exceed the living wage for Deschutes County.” This money ends up with the local workforce. He also noted that each dollar spent at Oregrown redirects about a third back to other local companies.

For Oregrown, elevating communities has been part of the business plan from the beginning. The company has contributed roughly $250,000 to charities. They sponsor sporting events, veteran programs, and festivals. These include WinterFest and others throughout the year. By sponsoring these events, the cost is much lower for the rest of the community. This is more than a marketing plan for Hogan. “It’s important for leaders in every industry to give back,” he said. “It’s the right thing to do.”

Ryan Evans of Shift Naturals
Ryan Evans of Shift Naturals. Photo by Tommy Corey

Shifting the Cannabis Mindset

Ryan Evans has similar ideas. He cofounded Shift Naturals, a line of microdosed THC cocktails, functional gummies, and terpene-infused sparkling waters. He wants his Bend-based brand to reconnect people with nature as much as cannabis. “Nature did it right. We just want to put it into a can,” said Evans.

Shift is much newer to the Oregon cannabis industry. However, it has already funneled about $250,000 into the community. They support Oregon Adaptive Sports and Central Oregon Trail Alliance, among other nonprofits.

Both Evans and Hogan now say overcoming the stoner stereotype is their biggest hurdle. “We need to destigmatize these products to give people more options,” Evans said. Hogan agreed: “It was really important to us from the beginning to normalize cannabis, support the community and create jobs.”

Attitudes about cannabis are slowly changing. Jeff Spicoli may have served as an icon of pot. Evans assured me their target consumer these days is closer to Claire Dunphy of “Modern Family.”

Edward Slingerland argued in his book, Drunk: How We Sipped, Danced, and Stumbled Our Way to Civilization, that altered states have been a part of human society for millennia. Imbibing has always played a role in ceremony, creativity, trust, and human connection. Even if we choose not to partake, we can still enjoy the ripple effects of cannabis. Anytime we’ve gone out to an event, chances are the cannabis industry has been there. They are like the cool friend of a friend. As Spicoli might say, “Hey, Bend, let’s party.”

Cannabis Products
Photo by Tommy Corey

 


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