Kentucky's medical cannabis industry hits its halfway mark Aug. 28, with 24 of 48 authorized dispensaries now open statewide. Florence's Bluegrass Cannacare, which opened Feb. 7 at 6809 Burlington Pike as Northern Kentucky's first dispensary, is part of a network that generated $1.87 million in July sales and created 407 jobs across the Commonwealth.
The milestone arrives as Blue Sage Dispensary in Lebanon opens as the state's 24th location. Cardholders have nearly doubled year-over-year, reaching 24,332 as of Aug. 14, up from about 12,300 in July 2025, according to the Kentucky Cannabis Industry Alliance.
"Reaching the halfway point is a watershed moment for Kentucky's medical cannabis program," Rachel Roberts, executive director of the alliance, said in a statement reported by The Lane Report. "With Blue Sage opening in Lebanon and Sunnyside Prestonsburg opening in October, patients across all 11 OMC regions will have access to licensed dispensaries."
Florence's path to opening
Bluegrass Cannacare's arrival on Burlington Pike followed a winding approval process. Florence voters backed allowing cannabis businesses in the city in November 2024 by a 65%-35% margin, with 7,801 in favor and 4,271 opposed, according to city council meeting minutes.
The Florence City Council then approved a zoning change and conditional use permit for the 0.35-acre property on May 13, 2025, by a unanimous 4-0 vote on second reading. The first reading on April 22, 2025, passed 5-1, with councilmember Angie Cable voting no, stating she did not believe the business should be at that location.
Even after approval, supply shortages stalled the opening. As LINK nky reported in January, Gov. Andy Beshear's administration approved Bluegrass Cannacare to operate that month, but the dispensary couldn't welcome patients until enough product was available. It finally opened Feb. 7.
Two dispensaries now serve Northern Kentucky
NatureMed opened in Erlanger in spring 2026, giving the region a second medical cannabis retailer and Kenton County its first. Florence's zoning regulations cap the city at roughly six dispensaries, since each designated parcel prevents nearby establishments from locating adjacent to one another.
That cap matters. Demand is growing fast.
Statewide, prices are falling
Roberts said increased competition is pushing prices down as more dispensaries and Kentucky-grown brands enter the market. Patients can now choose from 14 Kentucky-grown cannabis brands offering flower, concentrates, gummies and other formulations.
The industry is tracking toward $2 million in August sales. Kentucky currently operates 11 of 16 licensed cultivators, five of 10 licensed processors and has 487 registered practitioners providing patient consultations.
The next statewide milestone: a Sunnyside dispensary planned for Prestonsburg in October 2026, which would give every one of the state's 11 medical cannabis regions at least one operating location.
