Use this search box to find articles that have run in our newspapers over the last several years.
Date: 2/9/2023
SPRINGFIELD – Representatives from Insa, 6 Brick’s and Liberty Cannabis discussed the current state of their businesses during a Jan. 17 City Council Economic Development Subcommittee meeting. Each dispensary shared that they continue to comply with their host community agreements (HCA), but issued caution that the cannabis industry could be facing difficult challenges ahead.
“We anticipate a very difficult retail environment for 2023 … We’re very cautious about the Massachusetts market going forward,” said Insa Chief Compliance Officer Steven Riley.
In 2022, Insa was the top selling cannabis brand, with the retail Springfield location being the highest earning dispensary in the state with more than $72 million in sales. Still, Riley referenced a changing market as the wholesale price of cannabis continues to decrease.
According to the Massachusetts Cannabis Control Commission, the average price of a cannabis ounce dropped from $376.64 in November 2021 to $219.97 in November 2022.
“We’ve seen price compression both at the wholesale and retail level. [We] only expect that is going to continue,” said Riley.
Riley detailed the current state of Insa’s retail operations at 1200 W. Columbus Ave. and its medical dispensary at 506 Cottage St. Riley said both businesses are in line with their HCA agreements, continuing to meet full compliance with vendor obligations, security detail and hiring goals.
Senior Vice President of Holistic Industries Jamie Ware spoke on behalf of Liberty Cannabis. She said the dispensary continues to fulfill their HCA payments. For hiring goals, Ware said the business is “very close” to hitting their diversity requirements.
“We’re trying to make sure we are hiring a diverse employment base that’s representative of the Springfield population,” said Ware.
As for Liberty’s 2023 outlook, Ware mentioned market compression as a concern.
“Market compression is a huge challenge … We are going to do the best we can to serve the patients and consumers we do in Massachusetts, but we expect 2023 to be a hard year,” said Ware.
6 Brick’s CEO and founder Payton Shubrick detailed the dispensary’ accomplishments since opening in September 2022. She shared that the dispensary worked with over 50 percent of Springfield vendors as a part of their HCA agreement. Shubrick mentioned that 6 Bricks is establishing various community partnerships, working with organizations like the New North Citizens Council to “maintain a strong relationship within Springfield.”
“We continue to show a commitment to the city of Springfield by engaging with our neighboring businesses and neighborhood councils,” said Shubrick.
Shubrick also highlighted the fact that over 60 percent of the dispensary’s employee base of 17 is from Springfield.
When asked about potential 2023 difficulties given the competitive cannabis marketplace, Shubrick said 6 Brick’s is still focused on cultivating their brand in the marketplace.
“We are in a very different boat thinking about progression going forward … We are still in the phase of brand awareness and customer acquisition,” said Shubrick.
First Associate City Solicitor Attorney Talia Gee shared that each of the dispensaries “have fulfilled their obligations” for their HCA agreements. She said each dispensary continues to maintain strong communication with the city.
“The three operators that have opened have maintained great lines of communication … At the times I needed to reach out to those operators, I have received a response immediately,” said Gee.
A new wrinkle introduced during the meeting was the idea of potentially expanding dispensaries operational hours. Ward 2 City Councilor Michael Fenton inquired to the three dispensaries if expanded hours would benefit their businesses. A zoning regulation change in Springfield could allow for dispensaries to be open until 11 p.m.
Insa and 6 Brick’s currently close their retail dispensaries at 9 p.m. daily, while Liberty closes at 8 p.m., Monday through Saturday, and 5 p.m. on Sunday.
The three dispensary representatives highlighted the possible benefit in expanded hours.
“We don’t find that those additional hours invite any kind of issues, but it certainly does give it a competitive advantage to all dispensaries in the city,” said Riley.
“We would invite the opportunity,” said Ware.
“It does bring an interesting opportunity, especially if you coupled that with the nightlife we are starting to see emerge with MGM [Springfield] and many other establishments,” said Shubrick.
Ward 3 City Councilor and Economic Development Chair Melvin Edwards said more discussion should occur on expanding hours.
“This industry needs support,” said Edwards.