A shortage of licensed cannabis transporters in Minnesota is causing headaches for small businesses in the industry. Angel Bursch, owner of Loonatixz Genetixz, is struggling to get her cannabis products from her cultivation site to her dispensary, which is just a 20-minute drive away. With only three licenses issued to transport cannabis in the state, Bursch is finding it difficult to find a licensed transporter.
As a result, Bursch and other dispensary owners are experiencing supply shortages, which is stifling their ability to grow and expand their businesses. Voyager Cannabis Co. in Mankato, for example, has been unable to offer a full range of products since opening on Halloween. The store can only get what its supplier has available, and customers are coming in wanting specific products that are not yet available.
One option for Bursch is to obtain her own transport license, but this comes with significant costs and requirements, including a $300,000 surety bond and $1 million in liability insurance. This is a barrier for small businesses like hers, which may not have the resources to meet these requirements.
The Office of Cannabis Management has temporarily relaxed regulations on transporting cannabis products, but this does not allow for transport from a cultivation site to a dispensary. Instead, businesses can transport their own products to a licensed testing facility.
Justin DeMarais, owner of MN Grass Hero dispensary in Rice, is also struggling to get products to his store. He has been unable to transport cannabis himself and is instead selling low-dose hemp products. DeMarais is worried that it may be March before his store has flowers in stock, and he is spending thousands of dollars per month to rent space for a dispensary with no cannabis.
The shortage of licensed transporters is not only affecting small businesses but also the customers they serve. DeMarais is receiving daily calls from customers asking when his store will have cannabis flowers for sale. The lack of supply is also causing competition among dispensary owners, with some directing customers to other suppliers.
The situation is taking a toll on small business owners like Bursch and DeMarais, who are struggling to stay afloat. They are hoping that the supply and transport shortages will be alleviated soon, allowing them to grow and expand their businesses.
