A new cannabis shop, Nirvana, celebrated its opening in Houghton on Thursday with a ribbon-cutting ceremony. This marks the tenth Nirvana dispensary in Michigan. The Keweenaw Chamber of Commerce facilitated the event.
Nirvana Houghton's Assistant Manager, Scott Curtin, described the company as laid-back and highlighted the distinctiveness of their offerings. "You can expect a lot more from what the others carry. We have our own brands that they won't have," Curtin said.
Curtin emphasized that the store's unique appeal lies in its superior products and competitive pricing. "We stand out more just because of our loyalty to the customers that we have that come in. We offer a very wide rewards system and loyalty system, and I think that really grasps a lot of people to come in," he added.
The new shop is situated on Ridge Street near Walmart. Its operating hours are from 9 A.M. to 8 P.M. Monday through Saturday, and from noon to 6 P.M. on Sunday.
Michigan has become the leading cannabis market in the United States in terms of units sold, surpassing even California, according to data from market intelligence firm BDSA. Since late 2022, Michigan consumers have purchased more packages of cannabis products, including gummies, pre-rolls, and grams of flower, than those in California. This shift is significant, given California's population is nearly four times larger than Michigan's.
The primary reason for this trend is the price difference between the two states. While California's cannabis market generates more revenue overall—over $5 billion last year compared to Michigan's $3.06 billion—cannabis products are significantly cheaper in Michigan. For example, a one-gram pre-roll of the Cookies' Ridgeline Lantz strain costs $17.50 at Dr. Greenthumb's Cannabis dispensary in Los Angeles but only $7 at Gage Cannabis in Ferndale, Michigan.
California's higher prices are largely due to its taxation system. The state imposes a 15% excise tax on cannabis sales in addition to state sales taxes that range from 7.25% to 10.75%. Municipalities can also add local taxes, pushing the total tax rate on cannabis purchases up to 38% in some areas. In contrast, Michigan has a 10% excise tax and a 6% sales tax, with no additional local taxes allowed.
These high prices in California discourage consumers from transitioning from the illicit market to the legal one. California has long been a major supplier of illegal cannabis, and the established black market continues to thrive, presenting a significant challenge to the legal market.
Michigan's rapid legalization and market expansion also played a crucial role in its current standing. The state legalized recreational cannabis in late 2019, with an approach that allowed for unlimited state-level licensing. This policy enabled swift growth in cannabis production, leading to an oversupply that caused prices to plummet from $494.77 per ounce in February 2020 to $88.15 in May 2023.
This price drop has made legal cannabis competitive with, and often cheaper than, illicit market cannabis, driving more consumers to purchase from legal sources. In May 2023, Michigan's cannabis industry sold over $278 million in recreational cannabis, and the state is on track to exceed $3.2 billion in sales for the year.
While other states like Colorado and Washington have seen declines in cannabis sales, Michigan's market continues to grow. A report from Oregon-based Whitney Economics indicates that over 75% of cannabis sales in Michigan occur within the legal market, compared to only 44% in California. This discrepancy suggests that California's overall cannabis market is worth more than $11.5 billion annually, while Michigan's is around $4 billion.
Despite Michigan's current success, it is unlikely to maintain this position indefinitely. California is already making efforts to address its market issues, including reducing or suspending local marijuana taxes to boost sales and considering regulatory changes. While the future of California's cannabis market remains uncertain, it is expected to stabilize and potentially reclaim its dominance.
For now, Michigan's cannabis industry can celebrate its achievements and focus on sustainable growth to maintain its market position. However, stakeholders should be prepared for changes as other states, especially California, work to resolve their market challenges.
Mt. Pleasant has become a thriving center for cannabis retail, with 11 dispensaries opened in 2023 and four more planned. This growth has made cannabis sales a booming industry in central Michigan.
We spoke with local cannabis industry professionals and city officials to understand why central Michigan, particularly Mt. Pleasant, is an attractive spot for cannabis businesses and how this influx of dispensaries impacts the town.
The presence of these dispensaries has brought substantial economic benefits to Mt. Pleasant. According to Aaron Desentz, Mt. Pleasant city manager, the cannabis industry has spurred job creation, filled vacant buildings, initiated new constructions, and contributed to the city's budget through shared revenue.
"From job creation and wrap-around employment opportunities, to the revitalization of vacant buildings and new construction, and the addition to the city's budget from shared revenue, the growth has positive impacts in the community," Desentz explained.
Dispensaries have transformed old buildings into state-of-the-art facilities, improving the town's aesthetics and infrastructure. Matt Roman, director of government relations for Stash Ventures, emphasized their commitment to upgrading existing spaces. "We take traditional lower-use existing buildings and turn them into state-of-the-art facilities," Roman stated. He noted that their dispensaries, including Timber Cannabis Co. at 212 W. Pickard Street, aim to impress with their secure and welcoming environments.
Stash Ventures operates 17 dispensaries in Michigan, with headquarters in Mt. Pleasant. Roman highlighted their approach of not seeking incentives or tax abatements, focusing instead on community enhancement.
Lume, another prominent player in Mt. Pleasant, constructed two new buildings in 2021. Both locations, at 907 E. Broomfield and 1207 North Mission, received community beautification awards from the Mt. Pleasant Planning Commission.
In 2023, Mt. Pleasant added nearly $300,000 to its budget from the state's cannabis tax revenue. Michigan communities that opted for adult-use cannabis sales received over $87 million in revenue for 2023, with each eligible municipality and county receiving over $59,000 per licensed retail store and microbusiness.
The cannabis industry in Michigan has seen explosive growth. Desentz noted that marijuana sales revenue skyrocketed from $10 million in 2020 to $87 million in 2023. He anticipates Mt. Pleasant's share of revenue to increase as more dispensaries open.
In May 2022, the Mt. Pleasant City Commission removed license caps for marijuana businesses, allowing for more rapid growth. "After watching the first few retailers open for a year, the City Commission felt comfortable with the sustainability of the market," Desentz said. This decision also resolved legal disputes over license caps.
Cannabis retailers have also bolstered the local employment base. Stash Ventures employs nearly 70 people, most of whom are full-time local hires. Lume has 25 employees across its two stores. Both companies are committed to community involvement and philanthropy.
Lume engages in various local events and supports initiatives like the annual Polar Plunge for Special Olympics and Habitat for Humanity fundraisers. "We are members of the community. We live and work here and are always looking for ways to get involved and give back," said Laurie Ralston, Lume area manager.
Stash Ventures, through its philanthropic arm Higher Hopes, has donated over $180,000 to local nonprofit organizations since 2020. The company involves its employees in selecting causes to support, ensuring their efforts have a meaningful local impact.
Despite the rapid increase in cannabis retailers, concerns about market saturation remain. However, Roman is not worried about added competition, expecting some consolidation and price adjustments. Stash Ventures recently expanded by purchasing 11 stores from Cloud Cannabis, bringing their total to 17.
Lume, the largest single-state operator with 38 locations, remains committed to its long-term presence. With modern facilities and knowledgeable staff, Ralston believes in their sustained success.
The growth of cannabis dispensaries in Mt. Pleasant has brought economic benefits, revitalized urban spaces, and created jobs. As the industry continues to expand, the town remains optimistic about the future, focusing on sustainable growth and community involvement.
Five years ago, Melanie White-Lavender and her husband, Matt Lavender, began cultivating cannabis in their barn in southwest Michigan. What started as a modest caregiver operation aimed at helping a few patients has blossomed into a significant business driven by a mission to provide high-quality, clean cannabis to those who need it most.
The couple's journey into cannabis cultivation was deeply personal. White-Lavender's father, diagnosed with cancer, found relief in cannabis, allowing him to abandon pharmaceuticals and remain comfortable in his final years. Similarly, a close family friend, who survived a near-fatal motorcycle accident, used cannabis edibles to manage his pain and eventually made a full recovery.
"We've always believed more in the medicinal side of cannabis and treating it like the medicine that it is for so many people," White-Lavender said. "It's always been about helping people."
These experiences inspired the Lavenders to leave their day jobs in 2019 and launch Evolution Cannabis, a name reflecting their growing and evolving operation.
Today, Evolution Cannabis operates on a much larger scale while maintaining its original mission. The company expects to harvest over 10,000 pounds of cannabis this year from its 30,000-square-foot cultivation campus near Battle Creek. An on-site lab produces more than 36 million cannabis-infused gummies annually, distributed to nearly 200 dispensaries across Michigan. Additionally, with two House of Evolution dispensaries open and two more set to launch this year, the Lavenders have established a comprehensive supply chain.
"We just want to send people away with a great cannabis experience," White-Lavender said. "It's all about good vibes with us. We don't just churn and burn through our products. We don't cut corners. You need to treat these plants right, and a lot of that is just about having the right people, and keeping eyes, and ears, and all the attention on them."
Despite their rapid growth, Evolution Cannabis has maintained a strong commitment to quality and safety. This includes stringent measures like requiring all staff and visitors to don protective gear and pass through an industrial air blower chamber to prevent contamination.
Automation plays a significant role in their cultivation process, allowing the staff to monitor and adjust light, airflow, temperature, humidity, and nutrient flow using a single iPad. This meticulous control ensures potent and flavorful harvests.
The company's products include vegan and gluten-free edibles made from scratch with natural ingredients, reflecting their dedication to quality and health.
"Many of our clientele are cancer patients and people with real medical needs, so we always take our time to do things the right way," White-Lavender said. "That's super important for us."
Evolution Cannabis stands out in the industry by refusing to remediate their cannabis—a process used to remove contaminants but which can negatively affect flavor, potency, and texture. By relying on their rigorous cultivation and processing standards, they aim to produce cleaner and more flavorful cannabis without the need for remediation, even if it means taking on greater business risks.
"Everybody cares about low prices, and it's getting to the point where some of this bottom-barrel stuff out there could really hurt people," White-Lavender said. "I'd love to be swimming in money right now, but this isn't about that. This is about giving people the best—and cleanest—product."
As Michigan's cannabis market continues to grow, White-Lavender hopes more consumers will recognize the value of brands that prioritize quality and safety. She envisions a "Clean Cannabis Campaign" to encourage other Michigan brands to adopt similar standards.
"Let's face it. It's hard to stay relevant in this market," she said. "We don't have giant pockets. We don't have the same crazy marketing budget as everybody else. We're keeping things tight because we're focused on the products, and we care about customers' pocketbooks as well. We want to offer a high-end product at an affordable price, and that's not always easy, but we're not quitters. There's a reason we've been able to come this far, and we're not going anywhere."
After extensive research and community consultation, the City of Charlotte is opening its doors to cannabis dispensaries. This Monday marks the inauguration of the city's first cannabis provisioning center.
The idea of cannabis retail in Charlotte has been under consideration for several years, sparking both interest and controversy. Following approval by the local government last August, the city anticipates the arrival of multiple cannabis stores in the near future.
Mayor Pro-Tem Mike Duweck explained that the city has taken cues from other Michigan cities that host cannabis shops.
"Some residents are concerned about the potential increase in traffic these centers might bring. However, our police chief has conducted thorough research by reaching out to cities statewide to understand their experiences. The reality is that there have been virtually no issues," Duweck stated.
While the city has opted not to permit cannabis grow facilities, three provisioning centers have applied to open. One of these is Hollywood Jacks, founded by a local couple from Charlotte, aiming to open this summer.
"It's exciting. I've had to overcome the stigma and educate myself, much like many others," said Keisha Howe, Co-Owner of Hollywood Jacks.
Nearby, Harbor Farmz is preparing for a soft opening on June 10th, with a grand opening celebration scheduled for Saturday, June 15th.
"We are thrilled to be the first to open in Eaton County and the City of Charlotte. The community support, especially on social media, has been tremendous," said Mitchell Maltz, General Manager of Harbor Farmz.
For Charlotte, the addition of cannabis dispensaries is a strategic move to boost local revenue. Duweck anticipates significant financial benefits from the sales and property taxes generated by these businesses.
"Based on last year's data, each center could contribute approximately $65,000 annually to the city. For a town of our size, that's a substantial amount," Duweck noted.
High Society is the third facility to apply for a license in Charlotte, adding to the growing interest in cannabis retail within the community.
An established cannabis business in Niles unveiled its new retail space to the community on Friday. After over five years of cultivating cannabis, Native Michigan Remedies (NMR) opened the doors to its Class A cannabis microbusiness at 2112 Industrial Dr., Niles, much to the delight of owner William Haas. The business marked the occasion with a ribbon-cutting ceremony on Thursday afternoon. NMR operates from 10 a.m. to 8 p.m., Wednesday through Monday.
"It feels good," Haas remarked. "It's a tough industry; it's not for the light-hearted or people with shallow pockets, so to finally have this open is great." The Class A microbusiness showcases a diverse range of "seed to shelf" NMR products alongside items from other growers. In Michigan, a Class A microbusiness license allows the holder to cultivate up to 300 cannabis plants, acquire mature plants from other licensed growers, and utilize external processors.
Haas co-founded NMR in 2019 with Brian Crespo, who now manages the NMR 2 processing lab with Haas' son, Skyler. NMR initially began as a cultivation facility before expanding to include the processing lab. The decision to pursue a microbusiness license was a strategic move to remain competitive in Michigan's dynamic cannabis industry.
"We're still small-town guys from Niles," Crespo said. "We know we have great products, and we understand the public demands our quality. To continue providing for our community and offering good jobs, we needed to pivot to a Class A microbusiness."
Both Haas and Crespo believe that their smaller operation enables them to produce high-quality products with meticulous attention to detail.
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