Michigan cannabis companies change their business models to survive in a competitive market

As Michigan's adult-use cannabis industry nears its third year of legalized sales, the companies that grow, produce, and sell cannabis are making some significant changes to their business strategies.

They're doing so because the market has gotten increasingly competitive, with hundreds of brands competing for attention. At the same time, relatively few cities in Michigan have opted to allow cannabis sales within their borders.

"Everybody is evaluating their processes given this marketplace right now," Shelly Edgerton, chair of the Michigan Cannabis Manufacturers Association, said. "Maybe they don't need to be vertically integrated. Maybe they don't need 30 retail stores, and they only need 20. Maybe they only need to do processing because they do it well, and they have a great kitchen and can really produce whatever is needed. So they say, 'I'll buy my products. I don't need a grow operation.' "

This marks a significant shift from the early days of Michigan's adult-use cannabis industry when many companies' strategies were to open as many dispensaries as they could around the state, and the vertical integration model of growing, producing, and selling cannabis was considered one of the best strategies.

To read the complete article, go to eu.freep.com

Publication date:

Receive the daily newsletter in your email for free | Click here

Other news in this sector:

Sign up for our daily Newsletter and stay up to date with all the latest news!

Subscribe I am already a subscriber