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Emerging Cannabis Sector in Minnesota: Challenges and Opportunities

Aug 14, 2023

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St. Paul, MN--The newly established legal marijuana market in Minnesota is swiftly gaining traction, garnering a lot of interest and engagement throughout the state. However, such rapid growth in a new industry often brings a plethora of inquiries related to processes, licenses, and regulations that govern the product.

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“In some ways, you could certainly compare it to other industry booms we’ve seen... craft beer might be one," said Laura Monn Ginsburg, partner with Blunt Strategies, in a news report. "But it’s really in a class of its own.”

Understanding Regulatory Hurdles

Blunt Strategies, which positions itself as a vanguard in cannabis public affairs and strategic consulting, has been inundated with queries since marijuana's legalization. The overarching theme of these questions pertains to understanding the regulatory requirements.

“The things we’re hearing about right now are, of course, uncertainty about what the regulatory requirements are going to be,” said Leili Fatehi, another partner with the firm, in the news report. “The law that passed [set] the general framework for how the industry is going to function.”

Key concerns include the operational timeline for the Office of Cannabis Management, the initiation of the licensing application process, and the allocation of licenses.

Federal vs. State Laws: Navigating the Complexity

The contrasting legal stances at the state and federal levels, where marijuana remains illegal, add another layer of complexity. Issues such as property leasing, banking transactions, and procuring loans can become challenging due to these legal disparities.

Fatehi stresses the importance of incorporating these uncertainties into one's business strategy, especially for those entering the cannabis sector.

Local Focus: A Boon for Minnesota Entrepreneurs

Minnesota's emerging cannabis market appears to be leaning heavily toward local businesses. This preference creates a favorable environment for local distributors and retailers to capitalize on.

“Here in Minnesota, we’re going to have more mom-and-pop shops, we’re going to have more local brands, there’s going to be an emphasis on local sourcing,” Fatehi said per the report.

In the report, Monn Ginsburg emphasized the importance of local networking, "Find who your city representatives are your local leaders, get to know them, and talk to them about what is driving you to be in this area."

What's Next?

Though excitement surrounds the industry, Minnesotans might have to wait approximately 12 to 18 months to witness dispensaries opening.

For those keen on navigating this burgeoning sector, Blunt Strategies provides resources through their “Minnesota Cannabis Resource Center.”