Minnesota legalized adult-use cannabis on August 1, 2023, but the previous year, it became the first state to legalize hemp-derived THC beverages and edibles. Leili Fatehi, partner and principal of Minnesota cannabis consulting firm Blunt Strategies, says the state launched a much more destigmatized and open retail marketplace for hemp-derived products that continues to grow.
The state's adult-use legislation was written to create a fundamentally different market, and while it is still in the rulemaking and licensing stage, Fatehi says Minnesota intentionally capped the scale of operation to incentivize local, smaller-scale businesses. For example, the largest cultivation space in Minnesota is capped at 30,000 square feet of canopy.
Fatehi admits the market is taking a long time to open up, but that happens when you invite stakeholder engagement. Some operators remain frustrated that Minnesota is a protectionist marketplace by design, so mid and large-sized MSOs can't use the same playbook to break into the market.
Fatehi says the Minnesota market will be a mix of tribal, medical, and adult-use operators. However, as the market opens, concerns remain over adequate supply. While some tribal operators have been able to ramp up cultivation efforts—and it will be critical to meeting some need—the state may still experience supply shortages out of the gate.
Laura Monn Ginsburg, partner and principal of Blunt Strategies, says the firm acts as a strategic partner to help operators connect with the industry. Blunt is an advocacy shop that has played a big role in policy discussions. "We consider ourselves the watchdog of this space ... it is important to us, above all else, that we have a thriving craft business economy in Minnesota's cannabis industry," Ginsburg says.
Now, the team that led the advocacy effort in Minnesota has begun collaborating with friends and counterparts in Wisconsin who are starting to develop a more robust legalization campaign. Fatehi believes that legalization—especially in midwestern states—must happen through an advocacy model that resonates with local sensibilities.
The Cannabis Equipment News (CEN) team recently traveled to MJBizCon 2024 in Las Vegas from December 4 through December 6. At the show, we interviewed leaders from nearly every aspect of the industry. We didn't have time to interview everybody, so if we missed you, please reach out to [email protected]. MJBizCon 2025 is scheduled to be held from December 2, 2025, through December 5, 2025, at the Las Vegas Convention Center.