Florida regulators want to ban celebrity endorsements from medical marijuana products.
The state’s Office of Medical Marijuana Use (OMMU) proposed new rules in late August that go further than previous restrictions, adding pressure to an industry already in decline, according to Politico.
The proposed rules would prohibit celebrity-backed products such as heavyweight boxing champ Mike Tyson’s ear-shaped gummies briefly sold at Chicago-based Verano Holdings Corp.’s Müv medical marijuana treatment centers, and strains like Khalifa Kush, launched by Tallahassee-based Trulieve Cannabis Corp. with rapper Wiz Khalifa, Politico reported.
The rules also further restrict social media advertising and require operators to remove roadside marquee advertising signs at office buildings and strip malls.
How healthy is Florida’s cannabis market?
Florida’s medical cannabis market is contracting.
The OMMU reported 28 licensed operators running 778 dispensaries in August, but the economics for the state’s more than $2 billion industry have soured fast.
Vertically integrated licenses that sold for more than $50 million eight years ago are now worth less than $3 million, according to Politico. Investors are skeptical about growth after the 2024 recreational legalization amendment failure, the outlet reported.
And operations are starting to shut down.
Surterra, one of the first companies licensed to grow and sell in Florida, recently shut two cultivation facilities and laid off 211 workers. Surterra is owned by Atlanta-based Parallel.
Costs also keep rising.
Gov. Ron DeSantis raised the biennial license renewal fee from $60,000 to $1.3 million, and the OMMU has denied requests from licensees seeking more time to pay.
New operators now face up to $30 million in startup costs to build MMTCs, factories and grow facilities, according to Politico.
What are operators saying?
Joe Puglise, CEO of newly licensed Fino Cannabis, said the marketing rules would hinder his ability to reach patients. Fino opened its first dispensary in Clermont this year and plans two more in the coming months.
“There’s that old feeling again,” Puglise told Politico. “It’s draconian that’s now draconian squared.”
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Tallahassee attorney John Lockwood, who represents many licensed treatment centers, has filed a request for a public meeting to air the industry’s concerns, Politico reported. He said a legal challenge remains on the table if the OMMU finalizes the restrictions without changes.
Relief isn’t guaranteed under the next administration.
Neither gubernatorial candidate, Republican Rep. Byron Donalds nor Democrat David Jolly, has committed to reversing DeSantis’ approach.
Lockwood said he expects the rules won’t be finalized for months, likely after DeSantis leaves office.
