As the cannabis industry grows, some of the most recognized brands face setbacks in certain states. This summer, a new law in Minnesota allowed the recreational sale of adult-use THC-hemp food and drink products. However, a flood of new businesses is emerging from the woodwork in what some call a “miniature green rush.” The state’s two medical marijuana companies are now facing new rivals.
Greens Goods dispensaries’ parent company, Goodness Growth Holdings, and Green Thumb Industries, the owners of Rise stores, operate fourteen retail outlets medical marijuana stores altogether in Minnesota. The new laws practically open the gates for anyone with the financial backing to open a store. However, there’s an influx of businesses meeting the demand, and there’s no license required to open up shop.
The law passed in May and went into effect on July 1st, allowing delta-8 THC, delta-9 THC, and other hemp-derived food and drink products on shelves. The law limits each serving to 5 mg with 50 mg per package. But for Goodness Growth and GTI, there was a month-long delay before they could introduce edibles.
Minnesota Cannabis Law firm founder Jason Tarasek told MJBiz that the incoming businesses could provide minor setbacks to both companies. He suspects that the rise in THC-hemp-derived products will dominate across Minnesota since bars and lounges would be able to introduce these to their menu.
GTI and Goodness Growth have the benefit of producing higher THC potency for legal sale. Their products derive from marijuana, not hemp, and each package has an allowance of 100 mg of THC and 10 mg per serving. Tarasek believed both companies are awaiting the launch of an adult-use marijuana market, which has yet to be determined.
Co-founder of Minnesota Cannabis Association, Steven Brown, believed that the pros outweigh the cons of the state’s free-market approach to selling THC-hemp products. “The opportunities are endless,” Browns said, highlighting the possibilities this presents for minorities and those in low-income communities. Unfortunately, certain municipalities are trying to place their ban on the sale of THC-hemp products.
Another factor that’s gaining mixed response is the attraction of non-local entrepreneurs. Since the gates are open for anyone to launch their store, out-of-state suppliers and retailers with an already-established infrastructure are capable of meeting the demand. Some stores ran out of inventory within hours of the legalization of THC-hemp products, bringing CBD suppliers and more out of state to help meet the increasing demand.