MICHIGAN—It’s a rocky road ahead for Michigan’s cannabis industry.
Sales are slowing, state lawmakers are reconsidering a controversial wholesale tax, and industry leaders say the market will face some serious growing pains over the months ahead.
Here’s what you might’ve missed this week in Michigan weed:
SALES SLIDE: Michigan’s cannabis market could be heading for its worst year in a while. New projections from industry analytics firm Headset show dispensary sales are down across the board, suggesting Michigan could lose hundreds of millions of dollars in weed sales this year.
LONG SHOT: A recent push to repeal Michigan’s 24% wholesale cannabis tax is expected to face steep odds in Lansing, according to one Michigan lawmaker, who still supports the plan.
LICENSE LIMBO: Puff Cannabis is still fighting for the right to open a dispensary in Menominee, where a judge is now weighing dueling arguments in a lawsuit filed against the city. Puff says city officials wrongly blocked its store from opening last year. Meanwhile, Menominee voters recently backed a sweeping ban on any new dispensaries—even though the city and county are pulling in serious tax revenue from the eight dispensaries that are already open.
WORD POLICE: Michigan regulators are reminding dispensaries that they are technically not allowed to call themselves “dispensaries.” The Cannabis Regulatory Agency says that term is legally reserved for pharmacies, meaning cannabis companies are supposed to use other words like “retailer.” In reality, of course, basically everyone still calls them dispensaries anyway.
INDUSTRY THERAPY: A panel of West Michigan cannabis insiders recently aired their grievances in a wide-ranging roundtable—and there were plenty of things to complain about. Between collapsing prices, tax headaches, and gas stations slinging unregulated hemp products, leaders say Michigan’s cannabis industry will face challenging months ahead.
DEAL MAKERS: Michigan’s cannabis industry is gearing up for The Exchange, a business-to-business meetup in East Lansing on May 6-7. Retailers, brands, and other weed-world insiders will gather to swap cards, pitch products, and try to lock in their next big business deal. Regular stoners can’t buy tickets. Retailers and vendors must register online.
READ MORE: Family behind famous Michigan pickle brand now in the weed business
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