Retail slotting fees a new cost for Michigan marijuana brands and manufacturers

Michigan is the latest state where marijuana retailers are charging manufacturers and brands for premium shelf or display space – a practice expected to gain prominence nationwide as new recreational markets open and others expand.

Local advocates contend the practice of charging extra fees for coveted space is simply a cost of doing business and both partners benefit, particularly in Michigan’s close-knit, heavily vertically integrated industry.

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But opponents counter that so-called slotting fees are just another economic squeeze, a pay-to-play ploy that could price out small operators, especially minority-owned companies and social equity licensees.

Slotting fees, common for decades in traditional retail, are a relatively new trend in cannabis.

California and Nevada retailers started implementing them within the past few years.

“As much as I hate to say it, this is a normalization of cannabis in the mainstream retail market model,” said George Sadler, co-owner of Gelato, a

The post Retail slotting fees a new cost for Michigan marijuana brands and manufacturers appeared first on GrowCola.com.

Michigan is the latest state where marijuana retailers are charging manufacturers and brands for premium shelf or display space –… Continue reading
The post Retail slotting fees a new cost for Michigan marijuana brands and manufacturers appeared first on GrowCola.com. 

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