BURLINGTON, Vt. (WCAX) – Burlington’s first weed dispensary plans to close its doors — and with it — part of Vermont’s medical marijuana market. It comes after the parent company, Ceres Collaborative, filed for bankruptcy. Along with what is now a Burlington retail shop, the company is closing medical dispensaries in Brattleboro and South Burlington.

Medical marijuana has been legal in Vermont for two decades, and state regulators say that even with the boom in the retail market, medical marijuana still has its place.

“The medical patients are really the most vulnerable cannabis consumers,” said James Pepper, chair of Vermont’s Cannabis Control Board.

However, the company that once provided 70% of registered patients with medical marijuana is now closed. Ceres Collaborative notified the CCB it was winding down operations after its parent company, Canada-based Slang Worldwide, filed for bankruptcy.

Ceres started out as Champlain Valley Dispensary and was the first medical operation to open up in the state in 2015. The purchase of the company in 2021 raised eyebrows in Vermont’s then-budding industry, as many wanted local producers to have priority in the market. Now, the Brattleboro-based dispensary has already closed and locations in Chittenden County are next. Slang Worldwide said their second-quarter sales in Vermont dropped $1.27 million this year compared to 2023.

“As far as I can tell, it was profitable. It’s just that, you know, it’s not profitable to a company that has assets and, you know, all around the country that are, you know… This is a problem with the parent company, not that location in particular,” Pepper said. He says the benefits of medical over retail cannabis include a tax-free product, more privacy in purchases, and custom formulations that can be more potent than retail cannabis.

“It’s the recognition that cannabis is a medicine that really brought us to this point, that’s opened all these doors,” said Philip Lamy, a sociology and anthropology professor at Vermont State University who also coordinates the school’s cannabis studies certificate program. He says that he sees the future of the medical market going up in smoke, citing ease of access to cannabis across Vermont. But he hopes that there will be professional medical advice available to consumers soon. “Someone who has never used it before, they might need some medical advice… I think the adult-use recreational dispensaries need to be those places where medical advice can be provided.”

Vermont lawmakers signed off on new rules that allow adult-use stores to serve medical patients under specific conditions, which could potentially create new revenue for stores and offer more options for patients. And with those two medical dispensary closures, that leaves the state with only two locations in Brandon and Montpelier, although a third dispensary in Winooski was just approved.

The Cannabis Control Board is set to release its rules and regulations for 2025 on Friday.

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