Weed dispensaries are coming soon, but supply questions remain
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The possibility of buying a bag of weed or high-dose cannabis gummies from a corner store or shopping center is drawing near, but don't expect the shelves to be full right away.
Why it matters: While the rollout of recreational marijuana in Minnesota is months behind schedule, the first wave of non-tribal businesses that intend to grow, manufacture and sell cannabis are racing to sign leases and gain city approvals.
State of play: We could see the first shops open by the end of summer, according to the state Office of Cannabis Management (OCM) and industry experts.
- OCM held several June 5 lotteries to select hundreds of businesses for various licenses, including 75 dispensaries that qualify for social equity status. The first license, for a small Pine County shop and grow operation, was issued last week, while others still have hurdles to clear.
Friction point: Close to 700 applicants have received preliminary approval for "microbusiness" licenses, which would allow them to open a single retail location or a small growing or manufacturing operation — or potentially all three.
- But cities have put restrictions on where and how many dispensaries can operate.
- "You have this difficulty where people are looking for a retail spot and might have found one, but they don't know if they'll win the race to the City Hall to get one of the spots where the city allows," cannabis business attorney Carol Moss told Axios.
Reality check: The shops that do get up and running soon will also face a supply issue, industry experts say.
- That's because most of the businesses that grow weed will be gaining their licenses at the same time that retailers get their licenses. It takes months to get from seed to harvest.
- Cannabis consultant Leili Fatehi said the short-term solution could be dispensaries buying from tribal growers — who are already up and running — or possibly from established medical marijuana companies, depending on how regulators handle licensing those firms.
The bottom line: Consumers should be ready for stores with limited products and high prices early on, Moss said. A recent state budget bill that raised the sales tax on cannabis from 10% to 15%, beginning Tuesday, should add to sticker shock.
- But both Moss and Fatehi expect that prices will drop in 2026 as more growers and manufacturers get running.