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Missouri Medical Cannabis Revenue Passes $200M

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After Missouri voters passed an initiative in 2018, legalizing medical cannabis in the state, and 14 months after its first sale to a qualified patient, the emerging industry has reached a notable milestone, according to the Missouri Department of Health and Senior Services (MDHSS): the 180 dispensaries in the state have recorded more than $200 million in total sales.

According to a news release, the milestone comes two years after facilities began receiving licensing and certification for the Section of Medical Marijuana Regulation within the Department of Health and Senior Services. In Missouri, more than 300 facilities are now operating as cultivators, manufacturers, dispensaries, testing laboratories, transporters and seed to sale providers.

“Nearly every facility who was part of the initial round of licensing is now up and running and providing beneficial products and service to the patients of Missouri,” said Lyndall Fraker, director of the Section for Medical Marijuana Regulation. “We are proud of the tenacity shown by both our regulatory team and all of the facility operators who were able to clear so many hurdles that COVID-19 presented during a critical time.”

The Missourian spoke with Kathleen Beebe, a spokesperson with Missouri Health and Wellness, one of the first dispensaries in the state to open and operate out of Washington, Missouri. She said that she was “not surprised” by how quickly Missouri hit that $200 million mark.

“We’ve been open a year and we have seen a lot of growth in our business,” Beebe said, adding that the growth in the cannabis industry is best displayed through the amount of new patients enrolling in the statewide program.

“There are 160,000 [medical cannabis] cardholders in Missouri right now, which is just a remarkable number for the program,” Beebe said. “As people continue to gain an understanding of how this plant could help them, I would anticipate that this number is going to dramatically increase.”

While the core of the Missouri Health and Wellness client base is in the Washington County area, with 532 cardholders as of December 1, 2021, Beebe said they still see patients coming from outside the local area. Other counties in Missouri have substantially higher patient numbers, like Jefferson (5,587), St. Charlies (9,517) and St. Louis (18,774). Jackson county has the highest number of cardholders, at 20,373.

Beebe also highlights the job creation potential medical cannabis has offered Missouri. While Missouri Health and Wellness has created 12 jobs, Beede said there are some 6,000 agent jobs (agent being someone who has obtained state certification to work in a dispensary) created as a result of the cannabis industry, “And that is just a starting number,” Beebe added.

Missouri has opened eight lab testing facilities, 41 cultivation facilities, 58 manufacturing facilities, 180 dispensaries and 19 transportation-related businesses for the cannabis industry to date.

Chris Klein, owner of Midwest Root, also spoke with The Missourian, who intentionally delayed his company’s market debut because of industry delays.

“I didn’t want to make a product and have it run out on the shelves,” Klein said. “It has taken cultivators some time to get online, and now that they are online and producing a steady stream of product that means we can move forward. … 2022 is going to be a year of a lot of growth in the cannabis industry.”

Klein also echoed Fraker’s sentiment, referencing the delays that came with the COVID-19 pandemic. “We saw everything from equipment delays to packaging delays,” he said.

He agreed with Beebe that the emerging cannabis industry has the potential to create jobs, which he noted, “I want to provide careers, not just jobs.”

Klein added, “I think sometimes people don’t always remember to think about how this industry is creating jobs for people in local communities across the state.”

Additionally, the MDHSS continues to give back to the Missouri Veterans Commission, transferring $6,843,210 in September 2021 and $2,135,510 in September 2020.

“We are very pleased to see their sales revenue where it is,” Fraker said at the time of the second transfer. “Ultimately, this is how we are able to provide much-needed funding for the veteran’s commission.”