Minnesota’s Legal Cannabis Market Advances with Issuance of First License

OG article Star Tribune, adapted by Jesus Reyes

june 19, 2025

On June 18, 2025, Minnesota marked a significant milestone in its legal cannabis industry by issuing its first recreational cannabis business license to Herb Quest, LLC, a microbusiness cultivator in Brook Park, Pine County. The license, granted by the Minnesota Office of Cannabis Management (OCM), allows Herb Quest to grow, process, and sell cannabis products on a small scale, with plans for outdoor cultivation. This development follows the state’s legalization of recreational cannabis in August 2023, making Minnesota the 23rd state to legalize adult-use cannabis for individuals aged 21 and older.

The license is a social equity license, designed to support veterans, individuals impacted by prior cannabis prohibition, and those from high-poverty areas, aligning with the OCM’s goal of fostering an equitable cannabis market. Eric Taubel, interim director of the OCM, stated, “With our first licensed cultivator now able to begin growing plants, and more than 600 businesses in the final stages of completing their applications, we are seeing the first pieces of Minnesota’s adult-use market fall into place.”

Minnesota’s legal cannabis market is expected to fully launch in 2025, with retail sales projected to begin in the first quarter. The OCM has received over 3,500 license applications, including social equity and general applicants, for various license types such as cultivators, retailers, and manufacturers. While Herb Quest is the first non-tribal business to receive a license, tribal nations, including White Earth, Red Lake, and Leech Lake Band of Ojibwe, have already opened dispensaries on tribal lands, leveraging their sovereignty to enter the market early.

The state imposes a 10% tax on retail cannabis sales, with 80% of revenue covering regulatory costs and 20% allocated to local governments. Minnesota’s medical cannabis program will continue alongside the recreational market, ensuring access for patients. The OCM is also preparing to open applications for cannabis testing facilities and event organizer licenses on August 1, 2025, to further develop the industry.

While the issuance of the first license signals progress, challenges remain, including ensuring sufficient supply and navigating local zoning regulations. The OCM aims to balance market stability with consumer safety, with inspections and compliance measures in place to prevent illegal sales, such as raw cannabis flower mislabeled as hemp.

By Star Tribune, adapted by Jesus Reyes