Missouri’s cannabis market is a well-known model.
By Rebecca Rivas, Missouri Independent
The three research firms that believe Missouri’s cannabis industry is the poster child of success are hoping to secure a lucrative contract in order to examine the market more closely.
Mackenzie Slade said, “The Missouri model is a pretty well-known one when it comes to cannabis markets.” She’s the owner and CEO of New York’s Cannabis Public Policy Consulting. “I’m interested in doing an extremely deep dive.”
The state published a request in March for proposals to hire a company that would conduct a study of the cannabis market. Missouri issued almost 400 cannabis licenses in order to run full-scale production and manufacturing plants and dispensaries. In the future, Missouri will have 144 small business licenses that are not meant for large businesses but rather those with disadvantaged owners.
In 2024, Missouri sold $1.46 billion in total marijuana sales in the state’s second year of adult-use marijuana, outperforming states with a longer history of marijuana legalization like Arizona, Colorado and Nevada.
A press release released by the Missouri Department of Health and Senior Services, in March, stated that the results of this study would help determine “if or when Missouri will have to issue more cannabis facility licences and if it does, then how many and of which type.”
Missouri received 3 responses from people who met the criteria of at least 5 years experience in economic impact research, or 10 years experience in economic impact in general.
Slade, Capital Consulting Services of St. Louis and Whitney Economics in Oregon were the agencies that responded.
Beau Whitney’s firm, which conducts worldwide studies, collects data every month on the cannabis market for each state that is legal. The company gathers information on licenses and supply capacity, as well as revenue.
“I have data that goes back multiple years,” he said, “and so I can say, ‘Here’s the progression of the state and its program,'” along with providing future projections 10 years out.
Whitney describes Missouri as a “success” story. He found that in one of his reports on investment opportunities nationwide, there are still growth and development potentials for the Missouri market.
“That’s not normal,” he added. “In Oregon where I am based, I recently gave a status update to the Office of Economic Analysis. I said that new businesses in Oregon have no chance of making any investment. “Zero for the next 10 Years.”
This is due to the fact that there are too many licenses available, prices have been lowered so much, people cannot make any money, said he.
Whitney explained that his goal in Missouri was to help the state avoid a scenario like this.
Slade saw the same thing in New York where her company has been for seven years.
Her company conducts a nationwide survey about cannabis consumption, which measures and quantifies the demand behaviors of consumers. At a national scale, they also use the data to see how different states perform based upon their policy.
She said that Missouri consistently outperforms the other states in relation to their dates of sale. They were able set up the market very quickly.
This was partly because Missouri only allowed a limited number of licenses that could be operational in a matter of months. Slade suggested that the data from the track-and-trace system of Missouri be used to determine the efficiency of licenses.
She said, “That is a great example where we could uncover important policy considerations.” The study’s goal, I believe, is to update policy areas that are outdated.
Capital Consulting Services is owned by Tracey Jeffries, a Black female business owner who has been helping governments for the past 15 years with economic feasibility. She’s also a Missouri certified minority-owned enterprise. In accordance with state law, any winner of a state contract is required to employ at least 10% minority owned and 5% women-owned business.
Jeffries’ knowledge of Missouri and its economy as well as her experience in leading projects across Missouri, she believes is an advantage to her program.
She said that DHSS had done a good job, but it was time to do a feasibility study. This will be beneficial to the business community, regulators and, most importantly, to her, to the locality.
According to state law, cannabis regulators are allowed “to lift or ease any limitation on the number [cannabis] Licensees or holders of certificates are required to do so in order to satisfy the marijuana demand in the State and ensure that the market is competitive, while also preventing a concentration of marijuana establishments within the borders of any local government.
Most experts agree that Missouri’s decision not to issue more than the minimum number of licenses required by the state constitution was the reason for the boom. Critics have long claimed that this decision has created a monopoly, which is preventing people from gaining employment who are most affected by the drug war. Although the program for microbusinesses was included as part of the amendments to the constitution in 2022 to deal with inequities and address them, it’s difficult to see these businesses make money due to their limitations.
The department must award at least 50% of its additional licenses to the owners of micro-business cannabis facilities which have been operating for atleast a year.
The report will include information on the economic stability and risk of the regulated markets, as well as their strengths. It will place a particular emphasis on how the market impacts economically depressed areas.
Jeremy Washington, spokesman of the Office of Administration (the agency in charge of contracting) said there wasn’t a published schedule to complete the evaluation process.
MissouriBUYS Bid Board, however, will reflect any changes to the status of the bidders after completion. The entire contract file is also published at the Division of Purchasing’s website for awarded bids and contracts.
First published in Missouri Independent.
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