Opportunities in the Mississippi Medical Cannabis Market

mississippi cannabis

Wait a moment. Is marijuana legal in Mississippi now?

If you need any further proof as to how completely cannabis is permeating the American mainstream, look no further than Mississippi. As one of the most politically conservative states, it was considered a staunch and safe holdout against legal cannabis.

That is, until early February, 2022, when Republican Governor Tate Reeves signed into law a piece of legislation creating a Mississippi medical marijuana program. The bill goes into effect immediately, making Mississippi the 37th state to join the medical cannabis states.

What does this mean in terms of cannabis business licenses in The Magnolia State? We’ll share what we know so far, including pointers on how to best position yourself to win a spot in what’s sure to be a hotly-contested field.

mississippi cannabis

Is Marijuana Legal in Mississippi? A (Not-So) Sudden Shift in the Landscape

Governor Reeves’ signing of the medical marijuana bill was a major milestone and the legislation’s instantaneous effect might make it feel like a sudden shock. But as with all such shifts, the groundwork was laid long ago. If you follow Mississippi medical marijuana news, you’ll remember that voters there approved a medical cannabis bill back in November, 2020. That legislation would have allowed patients registered with the state to purchase up to 5 ounces of cannabis a month. But just six months later, the state Supreme Court invalidated the ballot measure on procedural and technical grounds.

By comparison, the new bill—SB2095—permits registered cannabis patients to purchase up to 3.5 grams a day, six days a week. That totals up to roughly 3 ounces a month—a change in keeping with legislators’ stated goal of limiting the amount of available cannabis. In a statement on the law, Governor Reeves writes: “There will be hundreds of millions of fewer joints on the streets because of this improvement.”

It’s a sentiment very much in keeping with Mississippi authorities’ skeptical view on cannabis as a whole and it’s a strong signal to proponents of adult-use cannabis. In the same statement, Governor Reeves wrote: “There are also those who really want a recreational marijuana program that could lead to more people smoking and less people working, with all the societal and family ills that that brings.”

According to a report recently released by Leafly, the legal cannabis industry currently supports nearly half a million American jobs, having more than doubled in size in the last three years.

Of course, Mississippi’s entrance into the community of medical marijuana states necessitates the creation of a regulatory framework. That means setting up state departments to administer and oversee the licensing, inspection, and revenue collection processes, just for a start. Let’s delve into what’s currently known on that front, based on information the state has made available plus our team’s experience in other legal cannabis markets.

mississippi cannabis

Steps to Opening a Mississippi Dispensary: The Regulatory Landscape

While Mississippi hasn’t yet announced a date for retail sales to begin—and it’s clear that much groundwork still remains to be laid—the pieces are already in motion.

As per the state’s medical marijuana legislation, the Mississippi State Department of Health (MSDH) will begin accepting online license applications for relevant businesses (and the patients they’ll serve) by June, 2022. Once that’s underway, business applicants can expect a 30-day turnaround time.

For patients, the process is slated to take no more than five days. When do Mississippi dispensary sales actually begin? At present, the Department anticipates that “products will become available to patients in late 2022.”

Mississippi Cannabis Business Types

As with all legal cannabis markets, Mississippi law allows for a variety of cannabis businesses, with corresponding license types. Few surprises there, with the possible exception of a “Cannabis Waste Disposal Entity” classification, which is something of an outlier among legal cannabis states. At present, the Department is charged with licensing the following business types:

  • Patients
  • Medical Practitioners
  • Cultivation Facilities
  • Processing Facilities
  • Testing Facilities
  • Waste Disposal Entities
  • Transportation Entities

mississippi cannabis

Mississippi Medical Marijuana License Options

Any business entity planning to apply for a Mississippi medical marijuana license must first register with the Secretary of State’s Office and select an appropriate North American Industry Classification System (NAICS) code. For instance, code 111419 corresponds to “Other Food Crops Grown Under Cover” because Mississippi’s medical marijuana law specifies that only cannabis grown indoors is legal for sale.

The list of approved NAICS codes is:

  • 424590: Other Farm Product Raw Material Merchant Wholesalers
  • 453998: All Other Miscellaneous Store Retailers (except Tobacco Stores)
  • 111998: All Other Miscellaneous Crop Farming
  • 111419: Other Food Crops Grown Under Cover

You’ll notice that an important class of cannabis business isn’t included in the list above. Mississippi dispensary license applications will be handled by the Mississippi Department of Revenue. As of this writing, the Department hasn’t yet announced the specifications and parameters of its licensing procedures. We’ll be sharing that important information as it becomes available.

Leveraging Experience and Expertise to Navigate Mississippi’s Medical Marijuana Program

The launch of the Mississippi medical marijuana program represents a very special opportunity for entrepreneurs. Because the legal cannabis industry is fast-moving and dynamic, nimble business skills and the ability to adapt to changing conditions are both valuable assets. It’s much easier to have this dynamism with a team of experts behind you.

Take this quick use case: In Mississippi, the ink on Bill SB2095 was hardly dry before the Tennessee Valley Authority—a major federally owned electrical utility—announced it may suspend service to jurisdictions where state-licensed businesses cultivate, process, or sell medical cannabis.

Curveballs like this happen in cannabis frequently. Partnering with an experienced guide such as Bridge West is a must, especially during this first phase of the licensing process. Our experience assisting prospective applicants in other medical cannabis states gives us field-tested, industry-specific knowledge about the intricacies of negotiating (often convoluted) licensing processes.

Drawing on our knowledge of Mississippi’s regulatory and business environment, Bridge West guides our clients through all the necessary steps and potential hurdles.

Are you ready to get in business in Mississippi? Since 2009, Bridge West has helped more than 400 businesses secure licenses and find their path to success across the US. If you’re ready to join this fast-moving and exciting moment in cannabis history, we’d love to help you achieve your dreams. Reach out anytime.

Cannabis Dispensary Tech: Popular Cannabis Software Solutions

how to open a dispensary

If you’re planning to enter the cannabis industry, here’s something you’ll need to focus on: Researching and implementing the best cannabis software solutions possible. Cutting-edge point-of-sale (POS) and register solutions are becoming a more common sight in the retail world, but they aren’t an optional upgrade for marijuana dispensaries. For dispensaries, this technology is absolutely a vital piece of equipment—as essential as your physical storefront and the products you fill it with.

If terms like “METRC” and “seed to sale” are new to you, today’s post will help you get oriented. A survey of some of the most popular and best cannabis software solutions, it’s designed to provide you with options, ideas, and a solid grounding in the implementation of these essential pieces of the cannabis industry puzzle.

 

How to Open a Dispensary: Tracking From Seed to Sale

These days, it’s rare—but not unheard of—to encounter an old-fashioned cash register in a café or boutique. In the cannabis world, which requires stringent tracking and tracing of products at every single touchpoint, that doesn’t fly. It’s functionally and legally mandatory to track sales accurately and closely.

Because the cannabis industry in the United States is still very much a state-by-state affair, there are a number of competing seed-to-sale and POS solutions. Here’s an introduction to a few of the most prominent options.

METRC: In the world of seed-to-sale tracking and compliance, METRC is an undisputed giant. METRC, in use by no fewer than 15 states—including California, the world’s largest legal cannabis market, is short for “Marijuana Enforcement Tracking Reporting Compliance.” As such, METRC isn’t a POS system but an overarching end-to-end tracking solution that in turn interfaces with various POS platforms.

This raises an important point: Whichever POS you end up using, it will have to integrate seamlessly with your state-mandated tracking plan. Given its ubiquity, there’s a fair chance it’s METRC.

Flowhub: With a focus on POS, inventory management, ID verification, and dispensary analytics, Flowhub is another heavy hitter in the retail cannabis world. Though the company only began processing retail sales in 2016, it has risen to prominence quickly. By the end of 2021, high-profile partnerships with Shawn “Jay-Z” Carter and others had brought the company’s valuation to over $200 million. If you’re shopping for a cannabis software solution, Flowhub will probably land among your considerations.

BioTrack: With an enviable position as the only vertical seed-to-sale cannabis software that’s fully integrated with METRC in every state that employs the platform, BioTrack is another comprehensive option, not only for retailers but for cultivators, processors, and other operators. If you’re operating in a vertically integrated environment, BioTrack is one of the strongest contenders in the field.

Leaf Logix: Another comprehensive seed-to-sale solution, Leaf Logix self-describes itself as the industry’s only native platform that services all cannabis business types. Able to serve cultivators, processors, distributors, and marijuana dispensaries with equal depth, Leaf Logix’s platform also provides accounting and financial support. Take note, as this is a potentially important factor given the challenges many cannabis businesses face when it comes to accessing basic financial services.

MJ Freeway: Like most of the platforms we’ve named here, MJ Freeway prides itself on providing legally-compliant software solutions for several types of cannabis businesses. In the case of MJ Freeway, this includes delivery—an important facet of the industry that’s only grown since the advent of COVID-19. With the capability to set schedules and draft delivery routes, MJ Freeway offers a powerful partner for cannabis businesses that are on the go.

How to Open a Dispensary: ECommerce Solutions

While POS solutions for in-person transactions are an essential part of the equation, there’s also the large (and growing) segment of e-commerce sales to consider. The following companies are among the leaders in this vital segment of the cannabis universe.

I Heart Jane: Described as a “fully integrated, turnkey” solution for e-commerce, I Heart Jane offers a flexible and intuitive platform for customers and retailers alike. As recent trends illustrate, the ability to support touchless or remote transactions is seen as a major upside for retailers looking to acquire and retain customers.

Dutchie: With a platform functionally similar to I Heart Jane’s, this Oregon-based software company offers easily scalable solutions designed to work within single-location, multi-state, or vertically integrated environments. Regardless of the setting, Dutchie’s interface remains sleek, intuitive, and flexible.

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How to Open a Dispensary: Loyalty Counts

Earning (and retaining) customer loyalty is a big deal in retail, and nowhere more so than in the realm of marijuana dispensaries. Here are a couple of software platforms designed to help you manage and leverage this hugely important factor in setting up your business for success.

springbig: With a stated goal of helping cannabis dispensaries and brands stand out and gain traction, this provider of marketing software focuses on increasing retention, boosting sales, and building loyalty among cannabis consumers. This is no easy feat in a fast-moving and highly fluid industry, but springbig delivers. The springbig platform includes customer relationship management (CRM) software designed solely for the cannabis industry.

TokeIn: Another cannabis-specific CRM system, TokeIn offers retailers flexible tools such as customizable loyalty and rewards programs. Relying on lightweight and highly effective SMS marketing, among other tools, the platform allows clients to easily track and manage this vital point of contact with their customers.

How to Open a Dispensary: Moving Beyond Cash

For any customer-facing enterprise, this is where the rubber hits the road: Payment. While marijuana dispensaries have historically had few (if any) options beyond cash, that’s changing—slowly. Here are a couple of the leading options.

Cannapay: Given how underserved the cannabis industry remains when it comes to financial services, Cannapay’s breadth of services come as very welcome news. Offering everything from standard credit card payment options, branded reloadable cards and even armored car pickup for the cash payments still prevalent in the industry, this Washington-based company functions as something of a one-stop shop for cannabis retailers.

CanPay: This platform allows consumers to use their debit cards securely to make purchases. While late and overdraft fees have earned some former customers’ ire, CanPay still stands as one of the very few practical alternatives to cash transactions in the industry.

How to Open a Dispensary: In Conclusion

With the number and scope of software platforms for marijuana dispensaries only growing, we hope this survey of some of the leading options provides some clarity.

If you’re preparing to enter the cannabis industry, we’d like to offer something more: Expert guidance and counsel. Since 2009, Bridge West has helped more than 400 current cannabis business license holders all across the United States navigate the daunting array of rules, regulations, and pitfalls when applying for and securing a license. Reach out; we’d love to talk.