What, Pivoting all Fall?

MN CANNABIS NEWS

Forbes had a nice profile about Prairie Island Indian Community and its cannabis program, which includes living soil and regenerative techniques. While many Minnesotans have visited PII’s Island Pezi dispensary, PII has not yet signed a compact with Minnesota.

Jen’s take: This article gave an interesting look inside their operations, and includes interviews with some of the leaders bringing the tribe’s vision to life, including Ben Halley, Tri Nguyen, and Ben Lipkin.

Target has begun carrying hemp-derived THC! Specifically, it is testing adding hemp THC drinks in 10 of its Minnesota liquor stores.

Jen’s take: Minnesotans know that the vast majority of liquor stores in Minnesota now have a shelf of hemp THC drinks! But Target joining them adds real credibility to this upstart segment. And, a number of the brands appearing at Target at Minnesota brands, including Trail Magic, Surly, and Stigma. I think it’s great news (even though it’s not getting me back to Target).

ADULT-USE LICENSEE RESOURCES

Minnesota Grants Update 

One of the recipients of the CanStartup funds, Propagate Community Development Corporation, has released a simple website and intake forms. 

If you are a microlicensee, especially a social equity applicant, interested in their favorable loan rates (7%), I encourage you to check it out!  

From DEED:

• List of Potential Funding Opportunities

• 5 Steps to Start Your Business in Minnesota

• SBAO's Business Compliance Checklist

• List of Investors

The Minnesota Craft Cannabis Guild hosted a great panel at Earl Giles last Wednesday, Oct. 8, with advice about marketing in the cannabis industry. A couple of takeaways I gleaned:

• Identify your target customer. Who are you selling to? What do they care about? (Perhaps they want different products than you would buy yourself?)

• Especially in cannabis, where we can’t use paid ads and social media in the same way as most industries, “owned channels” are extremely important (like email newsletters!) Bob shared that his customers, having opted in by sharing their emails, like getting news about what’s going on at the store. CannajoyMN is building community and loyalty with their newsletter.

• Collect and use data about your customers so you can try things and change course as needed. Your POS is a treasure trove.

Above: Eric Johnston (the Grow House), Ghislaine Ball (the Guild and Terpene Tasting Kit), Bob Walloch (the Guild and CannajoyMN), and Mariesa Sun-Saenz (Social AF)

Sign up for the Guild’s email newsletter here to find out what’s next up at CannaClub!

(Have resources to share? Email to me at [email protected])

Hemp-Derived THC Corner

It’s been a dizzying couple of weeks trying to keep up with Minnesota’s hemp THC (excuse me, low-potency hemp edible (LPHE)) changes as we move to Minn. Stat. 342.

The Issues:

The Minnesota OCM has been taking heat as the transition from the old hemp statute (151) to the full cannabis statute (342) reveals pain points like:

• Hemp-derived products may no longer be shipped direct to consumer (DTC) in Minnesota, because the statute requires personal delivery to check the consumer’s ID and that they are not intoxicated. This is an enormous change for manufacturers and retailers that have been selling DTC.

• Manufacturers must change their labeling to comply with Minn. Stat. 342 rather than the temporary statute, Minn. Stat. 151, effective upon their license being issued.* Those changes include adding specific warning symbols and required information no longer being able to be provided via QR code.

• To be legal to sell in Minnesota, all products have to be tested in Minnesota, beginning Jan. 1, 2026.

• Hemp-derived THC retailers will need to get a retail registration from their local government, who must grant it (there are no opt-outs, caps, or zoning, unlike the adult-use industry. We are seeing cities being confused and/or playing games, though, which is not a good sign).

What’s New

*The good news: On Friday, Oct. 10, OCM released Guidance Memo 2025-3, which does extend timelines for labeling and other updates. It provides that OCM will wait to actually issue licenses to hemp manufacturers and wholesalers until Dec. 31, 2025. That gives manufacturers and wholesalers until the end of the year to design and implement revised labels that comply with Sec. 342.

Retail licenses, however, will be reviewed and granted on a rolling basis this fall. That means retailers will not be able to mail hemp-derived THC products direct to consumer once licensed. Under the previously-published Transition Guidance, retailers can sell both products compliant with Sec. 151 and with 342 until the end of 2025.

And, there is no delay to the license application deadline. It remains Oct. 31 at noon.

The bad news: on Oct. 10, OCM also released Guidance Memo 2025-2, which will require additional paperwork to import hemp THC products from states other than HI, KY, NY, and UT, because most states don’t really regulate hemp-derived products. In short, a wholesaler or an out-of-state manufacturer will need to write a detailed letter, attaching documentation, making the case that the out-of-state manufacturer follows high standards in five required categories.

And, the head-scratcher: Guidance Memo 2025-4, released yesterday, Oct. 15, attempts to address questions from industry participants who own brands, but do not do their own manufacturing / packaging / shipping.

Finally, OCM quietly released revised FAQs for hemp businesses. I note:

• An individual who holds any share of a cannabis licensed business cannot hold any share of a hemp business.

• Using “marketing layers” can help with transition labeling issues

What’s Next

In order to get the license application done by Oct. 31, I suggest:

• Focus first on the question of which license(s) you will apply for.

• Gather pieces that may take a minute.

  • Manufacturers need a labor peace agreement.

  • Retailers selling for on-site consumption (e.g. a restaurant or bar) will need to supply proof of insurance.

  • Whoever is filing needs a valid photo ID and the company’s Certificate of Organization and DBA filing, if any.

ISO: Industry Classifieds

Have a property or services to offer to my readers? Or, looking for one? You can do so either by providing your info openly (a classic “I’m seeking xyz, contact me at __), or confidentially (having interested parties contact me to be connected to you). Contact me for more info and pricing: [email protected]

MOCHI MOMENT

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