OCM: Recreational marijuana supply tight, no set timeline for more product

Frustration over the state’s cannabis market

Minnesota’s new recreational marijuana market is off to a rocky start as some newly-licensed dispensaries can’t find product to sell.

Many businesses are at the mercy of growers, who were licensed in June, and now must wait for their cannabis to be wholesale-ready.

State officials explained that the supply is short right now, and it will take time before the product is widely available.

RELATED: Recreational cannabis business owners say supply shortage, OCM delays to blame for empty shelves

The executive director of the Minnesota Office of Cannabis Management (OCM), Eric Taubel, acknowledged the frustration businesses are facing. He added that the office is currently prioritizing the approval of more licenses to increase supply.

“I certainly empathize with the sort of situation they’re in, the frustration they feel,” Taubel said. “The most challenging part of the market for operators is the start of the market, as they’re working to find supply when there just isn’t a ton of it.”

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When asked about when recreational marijuana will be available, Taubel said, “We had those two cultivation licenses that have been issued and 13 micro-cultivation licenses issued. As those businesses continue the process of growing the product, in the coming weeks and months, they’ll obviously have product available for sale.”

However, he also said there’s no set timeline for when the product will hit dispensary shelves.

“The framework of the build out has been to really rely on businesses to make their own decisions about their timelines,” he said.

This week, 5 EYEWITNESS NEWS heard from at least five businesses that currently have no recreational marijuana on their shelves.

“I would love to see them be more communicative about what it is that they’re doing,” Mark Eide, In-Dispensary owner, said, referring to OCM. “Start to work with the actual licensees that have licenses. Develop a round table, that’d be great.”

At In-Dispensary in downtown Minneapolis, high hopes for recreational marijuana are being met with disappointment.

Eide explained that customers come in daily asking for the product they can’t find.

“We’ve seen a complete decline in business sales overall because people come in frustrated,” Eide said. “There have been so many obstacles in the rollout that were completely unexpected and costly.”

Eide has had to lay off two employees just to stay open. Business owners said they are forced to survive on their own until the product finally hits the shelves.

“I can’t just go to a bank and get a loan. I have to fully finance all this stuff on my own,” he said.

Cannabis remains illegal at the federal level, which means dispensaries can’t access traditional bank loans to bridge the gap.

The OCM said they’re working on an updated dashboard that will identify the current license holders and their authorizations as an additional resource to retailers.
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