How To Create Loyal Customers Not Because They Don't Have Other Options, But Because They Do

Marijuana’s status as a Schedule 1 substance under federal law makes things far more complicated for this industry compared to others. Despite 23 states having legalized recreational cannabis use and 39 with medical marijuana programs, one of the biggest challenges to the industry is the glaring lack of financial services.

Due to being illegal under federal law, most financial institutions are compelled to deny their services to marijuana businesses, thus creating numerous problems, the most significant being raising capital and the dangers of operating in cash.

In many ways, this puts multi-state operators (MSOs) in a better position as compared to smaller shops. The question is: can David and Goliath coexist in cannabis?

To learn more, Benzinga reached out to the CEO of a not-so-typical MSO – MariMed MRMD, which prides itself on its mission of making the small large by focusing on values that improve the lives of its customers and providing the highest standards of quality at every stage in its multi-state ecosystem. The company’s CEO Jon Levine, who’s been with MariMed since its founding shared more on what makes it different from other businesses.

Attention To Quality

“Our financial prudence is a big differentiator in an industry that does not have any of the traditional trappings or luxuries of other small U.S. companies,” Levine told Benzinga. “Our attention to quality and to people also sets us apart. Our cannabis flower is hand-raised, hand-trimmed and hand-cured. Each grow room has a specific person to steward the plants and that person’s name is on the door. We seek to improve lives every day through our products, and our company culture is a big part of that.”

Benzinga: Please tell us more about MariMed.

“MariMed is an MSO that serves Massachusetts, Maryland, Delaware, Maine, Rhode Island and Puerto Rico through our Thrive and Panacea Wellness dispensaries and with a variety of house brands. Vertically integrated, we produce Massachusetts’ #1 cannabis flower and concentrate brand, Nature’s Heritage, as well as Betty’s Eddies infused taffy chews, Vibations high energy infused drink mix and Bubby’s Baked, a line of bite-sized infused snacks that pay homage to the old-school pot brownie.”

Benzinga: When it comes to cannabis, is there room for both large multi-state operators and small shops?

“We absolutely feel that our industry can contain both MSOs and small shops—and in fact, we’re a terrific example as we’re an MSO that operates small shops. We’re trying to make a difference in the cohorts we serve, for both medical and recreational consumers, and that means operating dispensaries that reflect the surrounding community and anticipate and serve their needs. We want customers to become loyal not because they don’t have other options but because they do. That’s part of our dedication to improving lives daily.”

Fiscal Prudence Is Key To Survival

Benzinga: What is your advice to both large operators and small pot shops to stay afloat in this challenging environment?

“Fiscal prudence is key to survival as cannabis changes and matures. We pay our bills, do not overextend ourselves, and stay true to the goals we put in place for ourselves. This held us in great stead when our former CEO Bob Fireman passed away suddenly just before last Christmas," Levine said. "Rather than finding ourselves rudderless, Bob and our team had already ensured that there was a robust plan for growth over this year and next. Following that plan since Bob’s passing has allowed us to process our grief without harming the company, which is the best way I can think of to honor Bob’s legacy. We just completed our fourth straight year of improved earnings growth and anticipate that 2024 is going to be a hallmark year for MariMed as more of our plans come to fruition.” 

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