Missouri regulators recall more than $30 million in marijuana product
Updated
This story originally stated the value to exceed $1 million, additional information regarding the volume of product and pricing contributed to a recalculation. The valuation was originally based on a volume of nearly 63,000 products – the recall encompasses nearly 63,000 SKUs many of which cover multiple individual units.
In a shocking turn Monday, Missouri marijuana regulators issued a recall of more than 63,000 product SKUs.
Industry operators and participants Greenway spoke with estimated the total value of product in recalls in the tens of millions of dollars.
The products range in variety from infused prerolls and gummies to unfinished source material including distillate.
The scope of the recall is wide-ranging encompassing a number of brands and operators with some recalled SKUs manufactured more than a year prior.
The Division of Cannabis Regulation said in a release, “Pursuant to 19 CSR 100-1.100(4)(P), the DCR may issue a public notice of recall where marijuana product presents a potential threat to health and safety.”
While no adverse reactions have been reported, the Division has stated that the recall stems from allegations that products were not compliantly tracked.
“DCR is issuing a product recall on manufactured products sold to dispensaries and manufacturers by infused product manufacturer, Delta Extraction, LLC, MAN000022. The recalled products were not compliantly tracked in the statewide track and trace system (METRC) in order for DCR to verify the products came from marijuana grown in Missouri or that the product passed required testing prior to being sold at dispensaries.”
Less than an hour prior to the recall notice, DCR staff was present for a hearing regarding a stay on the suspension of license issued to Delta Extraction, overseen by the Administrative Hearing Commission.
According to records received from the Missouri Administrative Hearing Commission, Delta filed an appeal to the suspension order, and a motion for emergency stay, which was heard by the administrative hearing commission in a seven-hour hearing on Monday.
During the hearing, DCR reiterated its position that the immediacy of the hold and suspension or necessary for the division to conduct an investigation into allegations made against Delta Extraction.
However, issues were raised about the initiation and handling of the suspension, as well as what “imminent threat” was presented by Delta products. Both were largely rebutted by DCR with representatives saying that the investigation is ongoing.
During the hearing, DCR alleged that Delta extraction had violated Missouri regulations by allegedly incorporating THC and CBD oil extracted from industrial hemp.
Delta argued that it believed its processes to be compliant with DCR rules and regulations, and that DCR staff had accepted SOPs detailing the use of tested hemp products obtained from licensed industrial hemp producers in Missouri & elsewhere to supplement their products.
After the hearing adjourned, but before the commissioner could issue a ruling, DCR issued a recall notice at 4:54 PM, recalling all of the products placed on hold last week.
For dispensary operators and manufacturing licensees, the recall creates new questions.
In the course of an ordinary recall, product is quarantined and then returned to the original manufacturer or producer. With multiple licenses currently suspended, it’s unclear what the expectations are for those operators to process recalled product.
“Recalled product is estimated to be valued between $30 and $50 million. The recall itself is damaging to the industry as a whole. DCR needs to come clean and end this confusion,” one industry insider told Greenway.
Greenway reached out to the Division for clarification on how operators should handle this recall and had received no response at press.
The full list of recalled items can be found here: Product Recall List.
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