Lessons from Michigan Cannabis: Minnesota’s Path To Success

Michigan’s  Cannabis Industry is Struggling

During a recent visit to the MJ Unpacked Conference in Detroit, the sentiment among attendees was unanimous: the Michigan cannabis market is facing serious challenges. Plunging prices and intense competition have hit the industry hard, particularly the smaller players.


Minnesota Cannabis can Learn from Michigan’s Mistakes

These experiences provide valuable lessons that Minnesota’s cannabis program can utilize to ensure a smoother, more successful journey into the world of legalized cannabis and could even potentially help to revive the ailing Michigan cannabis market and create a smoother path for Midwestern cannabis operators

In the grand scheme of the cannabis industry’s evolution, these two neighboring states offer a compelling juxtaposition. Michigan’s rocky and challenging start provides critical insights into the pitfalls of a rapidly expanding market. On the other hand, Minnesota’s innovative approach to interstate transfers and license types (such as the new Mezzobusiness license type) sets the stage for a more promising future. As these two states navigate their individual journeys through the cannabis industry, it’s essential to consider how they can learn from one another’s experiences.


Similarities in Interstate Commerce Could Lead to New Business Opportunity

Minnesota and Michigan are closer in culture and geography than you might think. Surprisingly, many people are unaware that Minnesota and Michigan share a border—albeit an interstate water boundary off the coast of Lake Superior. 

Capitalizing On Cannabis Border States

These two states are also separated by a state that doesn’t allow cannabis use: Wisconsin. While Michigan was not able to capitalize on Wisconsin’s anti-cannabis stance, Minnesota on the other hand is surrounded by states that don’t allow adult-use cannabis sales. 

Interstate Cannabis Transfers Allowed In Minnesota

The disallowance of cannabis interstate commerce in the United States is the glaring barrier to benefits between the states. However, Minnesota’s new cannabis legalization law goes a step further than any other state across the country by allowing the interstate transfer and sale of hemp products within the cannabis program, a groundbreaking move in the cannabis industry. It’s not a far leap to consider the possibility of interstate transfer of cannabis products in the future. This, in itself, highlights the potential synergy between the two states.

Mutual Expansion Exists Between States

Decreasing Cannabis License Competition

One key aspect that could positively impact both Michigan and Minnesota is the prospect of companies from Michigan expanding into Minnesota. As the market in Michigan becomes increasingly saturated, enterprising entrepreneurs may look towards Minnesota for fresh opportunities. This geographical proximity presents opportunities for businesses to branch out into a neighboring state, reducing the strain on an overburdened market in Michigan and increasing efficiencies for businesses operating in both regions.


Learn From Our Midwest Cannabis Consulting Experience

The Minnesota and Michigan markets are separate yet similar and interconnected and much can be learned from Michigan cannabis program rollout along with the 20+ states that have come before it. This is where experts like Canna Advisors, who specialize in cannabis licensing as well as cannabis business strategy and expansion, come into play to provide assistance in business planning and application submissions. In the end, the success of Minnesota could serve as a guiding light for other states to follow, fostering a more robust, interconnected, and prosperous cannabis industry across the U.S. Midwest.

While you’re waiting on the drafting of the Minnesota regulations and the release of the Minnesota application, you can schedule an hourly consultation with a Minnesota cannabis consultant to see how you can prepare now. To learn more, you can find additional Minnesota cannabis market education in the Canna Advisors’ blog.

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