A new strain of medical marijuana being cultivated in Minnesota has one CEO expecting to be able to slash his company’s prices by up to 10% next year.
Kyle Kingsley, the head of Minnesota Medical Solutions, told an NBC affiliate in Minneapolis that a new strain his company has produced has a 34-to-1 ratio of CBD to THC, meaning it will take less plants to produce more medicine. By comparison, the well-known Charlotte’s Web CBD strain from Colorado has a 20-to-1 CBD to THC ratio, Kingsley said.
That in turn means he’ll be able to slash costs next year, he said, which could in turn boost the company’s bottom line by attracting more customers. Currently, Kingsley said, customers spend between $100 and $1,000 a month on medication at their dispensaries, and the high price of MMJ has led many customers back to the black market.
MinnMed, as Kingsley’s company is known, has almost certainly been looking for ways to slash costs since this past summer, when a surge in customers taking advantage of a discount program led the company to increase prices dramatically.