Michigan witnessed a record-breaking month in July, with cannabis sales soaring to nearly $277 million. The majority of these sales, amounting to $270,603,217, came from adult-use marijuana, while medical marijuana sales stood at $6,143,046. This represents an increase of over $16 million from the previous record set in June.
The data from the Michigan Cannabis Regulatory Agency (CRA) revealed that the predominant form of cannabis purchased was flower, followed by vape cartridges and infused edibles. This information was initially reported by New Cannabis Ventures.
Interestingly, these escalating sales figures are being recorded even as the average cost of marijuana remains notably low. Currently, the price for an ounce of adult-use cannabis is around $98, compared to its cost of approximately $180 in December 2021. The average cost for medical marijuana in July was slightly higher at $102 an ounce.
The Michigan cannabis market's growth is commendable, but the sector isn't without its challenges. The federal prohibition on cannabis means that many businesses in this space lack access to conventional financial services. This restriction has fostered a predominantly cash-driven industry, which becomes an attractive target for criminal activities.
In a notable incident, former Michigan House Speaker Rick Johnson (R), who later chaired the state's Marijuana Licensing Board, was charged in April for allegedly accepting bribes. The charges pertained to the provision of insider information and aid to specific license applicants. Plea agreements were subsequently reached in this case.
Michigan has actively channeled tax revenues from adult-use cannabis sales for research and public welfare. Last year, regulators disclosed plans to allocate another series of grants to fund research into the therapeutic benefits of marijuana for military veterans. In this phase, the CRA proposed granting $20 million to two universities under the Veteran Marijuana Research (VMR) Grant Program.
Additionally, the state announced the distribution of nearly $150 million in marijuana tax revenue last year. This amount was divided among localities, public schools, and a transportation fund.
In a progressive policy shift, Michigan officials recently revised the state's employment guidelines. As per the new rules, most government job applicants will not be subject to pre-employment marijuana drug testing.
JARS Cannabis, a leading cannabis retailer, has embarked on a significant expansion with the construction of a new retail outlet on Gratiot Avenue near 23 Mile Road. This venture follows their distinction of securing Chesterfield Township's first-ever recreational cannabis license, the company based in Troy disclosed on Wednesday.
Though the chosen site was previously vacant, construction is already underway. A representative from the dispensary revealed that the grand opening is targeted for the end of 2023.
Raymond Abro, the COO of the dispensary, extended his gratitude towards the township's administrative team, notably Supervisor Brad Kersten, Clerk Cindy Berry, and other department heads. Their commendable efforts played a pivotal role during the application and approval stages. "Under the forward-thinking guidance of Supervisor Kersten, Chesterfield has emerged as a progressive community, welcoming our business. We're thrilled to embark on this new journey alongside the community," Abro expressed. He further highlighted the undeniable role of Clerk Berry's office, emphasizing her exemplary leadership and her team's unwavering commitment.
JARS Cannabis views this licensing achievement as a testament to their dedication to supplying superior cannabis products while promoting responsible consumption within the community. As per a company press release, the key aspects of this expansion include:
Kersten clarified that Chesterfield Township hasn't established any caps on the number of licenses they can distribute. Potential cannabis retailers simply have to align with the township's zoning regulations.
Established in 2020, JARS Cannabis boasts of a vast network, including 17 outlets across Michigan; and a total of 35 outlets spanning the U.S., with branches in states like Arizona and Colorado.
Employees, including budtenders and delivery drivers, at the Ascend Wellness Holdings outlet in Michigan have endorsed a contract in collaboration with the International Brotherhood of Teamsters.
The agreement encompasses 20-25 staff members at the Ascend Cannabis outlet located on Scribner Avenue in Grand Rapids, according to Teamsters representative Matt McQuaid, who confirmed the news post-Friday's declaration.
This contract signifies the second partnership of its kind in Michigan's cannabis sector that Teamsters have approved, marking a first for the Western region of the state, as detailed in a recent Teamsters press release.
Additionally, the Ascend outlet in Morenci, Michigan, also boasts representation by Teamsters, added McQuaid.
Online records from Ascend Wellness, a multi-state operator headquartered in New York, showcase a total of eight retail branches across Michigan.
"This recent contract paves the way for a storm of future collaborations within the state," commented Peter Finn, the Western Region vice president of Teamsters.
The union has highlighted several key perks of the contract, such as an immediate wage hike with subsequent 3% annual increments. Other notable benefits encompass guaranteed tips with enhanced clarity on their distribution, confirmed discounts, employee seniority rights, protection against unwarranted terminations and disciplinary actions, advanced safety protocols for drivers, and a generous paid leave policy.
In broader context, Teamsters has been progressively establishing its footprint in the legalized cannabis industry across various states. Recent associations include collaborations with workers in California, Missouri, and Illinois.
It's also worth noting that the United Food and Commercial Workers Union maintains a prominent role within the cannabis sector. Simultaneously, there have been instances in California where cannabis employees have been mandated to engage in labor peace agreements with unauthentic union bodies.
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