Opened in February, the store in Pinconning offers cannabis flower, vapes, and edibles produced just 300 yards away at Pincanna's 135,000-square-foot cultivation facility. The products are sold at wholesale prices, with premium flower brand Head Stash Harvest retailing for $12 an eighth at the Pinconning location, compared to $20 at Pincanna's East Lansing store.
Founder and owner Robert Nusbaum explains the strategy behind the store's rural location.
"It's in the middle of nowhere, but it's a gateway to Up North," Nusbaum said. "We're doing this to benefit ourselves and our wholesale partners. When they stop in, they can stock up on our product for much cheaper and decide whether they like it. If they do, they can seek out our goods at one of our stores downstate or another store that sells our goods."
Nusbaum's background in retail, stemming from his family's success with New York Carpet World, has influenced Pincanna's approach. This customer-focused strategy has propelled Pincanna to become one of Michigan's largest cannabis cultivators. Despite Nusbaum's lack of experience in cannabis cultivation, he has assembled a team of experienced growers and processors, many of whom previously operated in the black market.
Among them is Ju Juan Coleman, known in the cannabis community as "Funk." Coleman has been making cannabis edibles for over 20 years, initially from his home kitchen in Detroit to treat his sickle cell anemia. Today, under the Funky Extracts brand, Coleman produces 400,000 infused edibles a month from Pincanna's state-of-the-art commercial kitchen.
Coleman's journey is mirrored by Vince Volovlek, who transitioned from opioids to cannabis following a severe ATV accident. Volovlek founded Michigan Organic Rub in 2013, creating balms containing THC to alleviate pain and inflammation. Nusbaum acquired Michigan Organic Rub in 2019 and promoted Volovlek to director of processing.
Nusbaum's philosophy is to harness the expertise of those passionate about cannabis while guiding them through the business aspects. He frequently visits the Pinconning facility to engage with staff and oversee operations.
"This is a relationship business we're building," Nusbaum said, emphasizing the importance of teamwork and collaboration.
Pincanna's innovative approach extends to its hiring practices, promoting talent from within based on potential and creativity. For example, a packaging department worker was promoted to head of packaging design after his doodles were noticed by Nusbaum.
However, balancing passion and profitability can be challenging. Nusbaum acknowledges the difficulties but remains optimistic about the company's direction. Recently, Don Newman, former director of cultivation at High Life Farms, joined Pincanna to enhance their growing operations. Newman has doubled production to 30,000 pounds without expanding the facility by optimizing growing techniques.
"We're producing twice as much as we were a year ago and that's all because of Don," Nusbaum said. "We have better production and our quality has gone through the roof. We've really started something special here."
Pincanna currently operates four retail stores in Pinconning, Kalkaska, East Lansing, and Kalamazoo, with plans to open two more in Mount Pleasant and Saline. Nusbaum aims to expand to 12 stores, allowing Pincanna to sell most of its flower in-house, thus boosting profit margins.
"We want to control our own destiny," Nusbaum said.
While Nusbaum envisions eventually selling the company, he remains dedicated to its growth for the foreseeable future. At 63, he foresees an exit in three to five years but continues to learn from his team of cannabis experts.
Pincanna's journey exemplifies how combining retail expertise with a passion for cannabis can drive success in the burgeoning industry.
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