Missouri’s cannabis industry faces another massive administrative hold
For the second time in as many weeks, and just days after a recall of thousands of flower products, Missouri’s cannabis industry is facing another monumental disruption.
This morning, Greenway began tracking information about additional administrative holds placed in Metrc by marijuana regulators for various products, brands, and SKUs.
Dispensaries and manufacturers across the state are reeling from the impact as hundreds of SKUs, totaling thousands of products, have been placed on administrative hold.
This new wave of holds affects dozens of brands, encompassing a wide array of product categories.
Scope and impact of the hold
The administrative hold affects several key product categories, including:
- Vape cartridges
- A significant portion of the affected SKUs are vape cartridges. The hold has disrupted the availability of various cultivars and flavors, causing supply chain challenges for both dispensaries and consumers.
- Edibles
- The edibles segment, particularly gummies and fruit chews, is also heavily impacted.
- Tinctures and topicals
- Products such as tinctures and transdermal applications, which are critical for therapeutic use, have not been spared.
- Concentrates
- Concentrates, including live resin and liquid diamond series, are among the affected categories.
Market implications
The administrative hold has several potential implications for the Missouri cannabis market:
- Consumer choices: With a wide range of products affected, consumers may face limited options and might need to explore alternatives.
- Market dynamics: The hold could shift market shares as some brands and products become temporarily unavailable, allowing others to fill the gap.
- Supply chain adjustments: Dispensaries and manufacturers are scrambling to adjust their inventory strategies, focusing on unaffected products or developing new offerings to maintain market presence.
- Looming deadlines: All of this comes as deadlines for packaging and product loom with September and November dates for packaging and item removal just ahead.
Industry response
Despite the widespread impact, the Missouri Division of Cannabis Regulation has not yet issued any formal notice or public information regarding the most recent hold implemented today.
Dispensaries and manufacturers are currently navigating the situation as best as possible. Multiple dispensary operations have noted to Greenway that their inventory is substantially limited with one source saying “more than half of all product is on hold.”
Additionally, some manufacturers are crippled with one operator calling the events a “bloodbath,” saying more than 70% of their inventory now unavailable.
The effects are far-reaching; from testing labs to dispensaries and manufacturers, few operations are exempt from the impact.
The implications could drastically affect the way licensees across the state conduct business going forward. With limitations and internal restrictions on ordering, readjusted projections, and an increased call for diligence and guarantees, the market seems destined to change after this latest wave of administrative holds.
For businesses and brands, transparency with consumers and strategic adjustments will be crucial in managing the disruption.
As the situation evolves, the industry and consumers alike will look to stay informed as the landscape of this administrative action remains fluid and largely unknown.
