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The world of recreational marijuana in Missouri, like any industry, isn't without its challenges. Recent events have highlighted some of the pitfalls associated with this growing sector, leaving retailers, manufacturers, and consumers alike to grapple with the consequences.
In this article, we'll delve into the aftermath of a widespread cannabis product recall, shedding light on the complexities of recreational marijuana in Missouri and why, for many, medical marijuana remains a dependable choice.
A Costly Conundrum
A significant recall of infused cannabis products in Missouri sent shockwaves through the industry. Tens of thousands of products were affected, leading to millions of dollars in lost sales and inventory for both retailers and manufacturers. For example, Greenlight, a Kansas City-based multistate operator, found itself locking up thousands of vape pens and other products following Missouri regulators' imposition of an "administrative hold" in August, which subsequently escalated into a full-scale recall.
Manufacturers, too, bore the brunt of the recall's financial impact. Clovr, Missouri's largest cannabis producer, reported multimillion-dollar losses due to the recall. The Division for Cannabis Regulation (DCR) initiated the recall after suspending the business license of Delta Extraction, a processor based in Robertsville, on August 2. The DCR alleged that Delta Extraction sourced untested "marijuana or converted hemp from outside of a Missouri licensed cultivation facility."
According to the DCR's recall notice, the affected products had not been compliantly logged into the statewide track-and-trace system, Metrc. This raised concerns about the origin and quality of these products, as they may not have undergone the required testing before entering the retail market. Delta Extraction, however, has denied these charges.
The recall, issued on August 14, encompassed several well-known brands, including Kiva, Packwoods, Smokiez, and Zen. Products affected included vape pens, cartridges, gummies, and liters of THC distillate sold by Delta Extraction and its affiliates, along with compounds derived from the distillate. The repercussions of this recall are far-reaching, affecting various aspects of the cannabis supply chain.
The Impact on Smaller Players
Smaller, independent manufacturers appear to have been disproportionately affected by the recall. Missouri's cannabis industry primarily consists of vertically integrated operators, which generally source their products internally, reducing their reliance on external suppliers.
More than 20% of the state's 91 licensed manufacturers have felt the impact of the recall.
The fallout has exposed some of the vulnerabilities in the industry's supply chain, particularly as the demand for distillate surged alongside increasing consumer interest in cannabis products.
Distillate, a highly concentrated cannabis extract, is a key ingredient in many infused products. It plays a crucial role in the production of vape cartridges, edibles, and concentrates, making it a sought-after commodity in the cannabis market.
Regulatory Waiting Game
As of now, operators are awaiting the conclusion of the regulatory investigation before pursuing legal action. The Department of Health and Senior Services (DHSS) is prioritizing the resolution of this investigation, recognizing the urgency of the matter.
The recall has already triggered a lawsuit against Delta Extraction, with others potentially following suit. Legal action might extend beyond the manufacturer to include the state and regulators, given that the recalled products and distillate were legally purchased through licensed suppliers.
While the outcome of these legal proceedings remains uncertain, one thing is clear: the financial implications are substantial. Dark Horse Medicinals, the Arkansas-based provider of vape cartridges, edibles, and concentrates, is seeking damages amounting to hundreds of thousands of dollars. Lost profits, unusable distillate, and banned products represent significant losses for businesses like Clovr, which supply dispensaries across the state.
An Uncertain Future for Retailers
Retailers are also grappling with the repercussions of the recall. Companies like Greenlight and Blue Sage Cannabis Deli have thousands of recalled products sitting in their vaults, leading to significant revenue losses. The uncertainty surrounding the fate of these products further compounds the issue. Should regulators order the destruction of the recalled products and distillate, recouping losses becomes an uphill battle.
In-store credit or cash refunds for recalled product purchases are among the solutions offered by some retailers. However, these remedies only provide limited relief and may not fully compensate for the financial impact of the recall.
A Matter of Controversy
The Metrc system, which is used for tracking and tracing cannabis products in Missouri, has come under scrutiny in the wake of the recall. While some operators appreciate its track-and-trace capabilities, others criticize the system for failing to prevent irregularities that contributed to the recall.
Clovr's CEO, Josh Mitchem, raises concerns about Metrc's role, particularly its lack of immediate alerts when discrepancies in data entries occurred. Operators contend that Metrc could have identified and rectified the issue earlier, potentially averting the need for a recall. Metrc, however, maintains that regulators have the authority to take action when such irregularities are detected.
The reliance on Metrc software is a regulatory requirement in Missouri, with the state covering the bulk of the monthly service contract costs. Nevertheless, the recall has cast a spotlight on the need for more robust oversight and safeguards within the system.
Navigating Uncertain Waters
The cannabis product recall in Missouri serves as a stark reminder of the complexities and challenges facing the recreational marijuana industry. While the sector continues to evolve and expand, it's essential to recognize that medical marijuana remains a reliable choice for individuals seeking effective and personalized healthcare solutions. The recent events underscore the importance of a well-regulated and patient-focused medical marijuana program.
If you're considering medical marijuana as a part of your healthcare plan, we're here to guide you through the process. Whether you're dealing with chronic pain, anxiety, or other medical conditions, medical marijuana can offer a safe and effective alternative.
Schedule a consultation with us today to explore how medical marijuana can improve your well-being and provide you with the personalized care you deserve. Our team is dedicated to helping you navigate the often complex world of medical marijuana and ensuring you receive the treatment that's right for you.
Get Your Medical Marijuana Card in Missouri Today!
Although marijuana is now legal recreationally in Missouri, you should still get your medical card. If you have any questions, just give us a call!
There are so many benefits to having your medical marijuana card in a recreational state, including being responsible for less in taxes, saving at dispensaries, and higher possession laws.
If you don’t already have your medical marijuana card, we can help! Our doctors are standing by to take you through a quick and easy evaluation to see if you qualify. During your evaluation, they will be happy to answer all your questions about how cannabis may be able to help with your anxiety or any other medical conditions.
Schedule an appointment with a marijuana professional online or by giving us a call at
(877) 303-3117 to talk to a patient support representative.
Doctors Who Care.
Relief You Can Trust.
At Missouri Marijuana Card, our mission is to help everyone achieve wellness safely and conveniently through increased access to medical marijuana. Our focus on education, inclusion, and acceptance will reduce the stigma for our patients by providing equal access to timely information and compassionate care.
Call us at (877) 303-3117, or simply book a medical marijuana evaluation to start getting the relief you can trust today!
Check out Missouri Marijuana Card’s Blog to keep up to date on the latest medical marijuana news, tips, and information.
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