In the year-plus, since adult-use cannabis was legalized in the Land of 10,000 Lakes, thousands of applications sitting in the Office of Cannabis Management, stalled in action. The only adult-use dispensaries legally allowed to sell cannabis products are located on reservations, with the nearest store an hour’s drive from the Twin Cities.
But that hasn’t stopped the green wave from swelling in the state. Between the existing “illicit market,” and the nascent THC industry that is booming in breweries, restaurants, and corner stores, Minnesotans are dabbling – whether dispensary doors are open or not.
Entrepreneurs are still bringing new hemp products to market, starting their cannabis home grow in faith, and creating community through consumption events. They’re taking on the most risk to meet patient needs, expand the horizons of curious consumers, and be first-to-market in a multi-billion dollar industry.
In the years just prior to legalization, Minnesota has shown the nation that public consumption is possible (and safe) with hemp-derived beverages and edibles. You can walk into a posh Italian restaurant in Downtown Minneapolis for a THC drink on the rocks or stroll through a locally owned and operated grocery co-op where infused bevs stock the end caps near the apothecary.
For now, the only requirement to sell these low-dose hemp-derived products is to register the business with the Office of Cannabis Management. However, they’ve stated this will likely change in 2025 when cannabis licenses are anticipated to be granted. While some in the political sphere opine about dire consequences, the worst repercussions we’ve seen have come directly from the OCM, where equity applicants have been denied their application on technicalities with no process to appeal.
Still, Minnesota won’t let that stop them from getting what’s fair.
Local First
Minnesota has always had a very strong local-first community. It’s allowed the local art scene – like the annual NE Minneapolis Art-A-Whirl weekend – to flourish. So, it’s no mystery that locally brewed hemp-infused beverages have felt the community’s support.
One business stood out to me as a values-first brand – not only because they supported local Minnesota products via their inventory, but also because of their commitment to host local events for the cannabis community. With their own award-winning holistic formulations, over one hundred infused beverage SKUs from local companies, and a dispensary-level selection of hemp-derived edibles, this brand is an excellent example of how entrepreneurs have pivoted to offer a familiar dispensary experience while staying within their legal bounds.
Natreum in St.Louis Park – just West of Minneapolis proper – may have a small footprint in terms of physical space, but its impact within the community is anything but. I sat down with co-founders Mike Gawlik and Mel Giudi to discuss their business and the issues facing Minnesota’s hemp and cannabis industry.
When asked about the evolving issues, Gawlik lamented that a significant risk is that big money interests have the potential to impact the local market negatively.
As with most things these days, the conversation started with how the pandemic had crippled an otherwise booming industry. As a very beer-forward state, Minnesota breweries were hit hardest during the lockdown phase of the pandemic. Yet, as people started to return to social gatherings and the hemp industry was given the green light in the state, breweries were put in the perfect position to benefit from the new laws.
Gawlik stated, “The upside of what happened with this hemp law was that we had a brewing industry that was literally on its knees about to just die.”
Guidi adds, “It needed this.”
Gawlik continued, “[the law] passed, and, I knew of sixty breweries that jumped in out of the 180 that are in, and a lot of these guys were saved because of it.”
Breweries like Minneapolis Cider Co., Modist Brewing, Earl Giles, Indeed Brewing, and Bent Paddle – all beloved hot spots in the twin cities – had an existing infrastructure to create and market beverages. All that was left was flavor formulation and one extra special ingredient. After they brought new and creative beverages to consumers, these breweries experienced increased sales that turned their luck around.
Gawlik stated, “They do contribute to the national success of Minnesota, that is a for certain thing… but, you have brands like Anheuser Busch that sold off eight brands and doubled down on cannabis… and Bill Gates comes in and buys over a hundred million dollars in shares in Anheuser Busch.”
It’s the fear many have had in the local scene seemingly coming true. Big dollars flooding in from big alcohol brands and billionaires who have never been a part of the culture trying to profit from it. Even companies that once fought against cannabis legalization have weaseled their way into lobbying groups and politician pockets, primed to steal the industry from under the noses of legacy operators, activists, and small-town entrepreneurs.
Gawlik continued, “So, the industry is going to be tainted if we don’t keep it like we have it in this state – with the industry being upheld by the people.”
And to that, I couldn’t agree more.
Local Brands That Are Making A Difference
The concerns raised by Natreum’s co-founders are not isolated to their business. One Latina-owned and operated infused beverage company, Mi Sota Essence, has fought hard to break through the red tape to find success in the hemp industry. Veronika Alfaro, a first-generation Mexican American, has personally felt the impacts of the war on drugs within her own family.
“For me, it’s essential that there’s representation within the industry – that Black and brown people can actually hold a stake within the industry, not just be workers within it,” Alfaro explained. “When I close my eyes and imagine ‘will my presence make a difference 15 years down the road?’ I can confidently say yes. If I’m not here to show representation, how will other people see themselves within the industry?”
Now, Alfaro and her husband are cannabis equity license applicants who are hopeful that enduring the pain of the past will ensure a more fruitful future. Aside from her infectious positive demeanor and steadfast commitment to inclusion, Alfaro, along with fellow hemp-business owner Jamie Croyle, of House of Oilworx – founded the MN Women’s Cannabis Collective.
“We started it because we wanted to provide a space for women to show the f*** up. In an extremely male-dominated industry, we wanted to ensure women were not pushed out,” said Alfaro.
Croyle added “As one of the very first female hemp retailers in Minnesota, I’ve seen firsthand how difficult it is to maneuver in this space as a woman.” She went on to say, “Women have a louder voice when it’s a collective voice.”
Throughout the year, the collective meets for group workshops, and pools money to host a collective booth at industry conferences. It serves as a way to have a team effort where women business owners are able to refer business, make critical introductions, and feel supported.
“When we gather in person, we’ve created a safe space for women to learn, grow, and help one another succeed. We are showing big money that we aren’t going anywhere,” stated Croyle.
Where We’re Headed
The Minnesota market is unlike many others, which makes it worth the trip. Much like the quintessential Midwest backyard barbeques and potluck gatherings fabled in many a Minnesota story, there is a community of cannabis-centric folks connecting and creating a positive space for Minnesotans and visitors alike.
Not just for cannabis professionals to learn from one another in… yes, of course, a potluck setting – but also in shops, stores, restaurants, concert venues, salons, breweries, and more with the help of hemp-derived infused beverages and flower-positive patios.
While many know the inhabitants of the Twin Cities and beyond tend to be more progressive than many other cities across the United States, when people visit Minnesota, they don’t expect the sort of free reign of cannabis consumption in social settings. It seems as though Minnesota has cracked the code.
The one thing that looms over the existing hemp market and the cannabis license hopefuls is a government office with little to no cannabis experience or knowledge of the culture, now dictating its future. The advocates who fought hard for the existing safe haven for consumers and entrepreneurs are now watching in horror as the tower crumbles. But if I’ve learned anything about Minnesotans, their tenacity for fairness cannot be subdued. And I imagine it won’t.
