MedMen to Steer Away from Cannabis Growing and Production
As reported previously, the retail cannabis chain MedMen has been going through significant changes over the past year. Now, as reported by CNN Business and announced on today’s 2nd quarter stockholder conference call, MedMen is planning to focus its business 100% on retail, dropping cannabis cultivation and processing from its business model.
MedMen’s interim CEO, Ryan Lissack, says that the company sees that the industry is steering away from vertical integration and moving toward a fragmented value chain with specialists within each vertical. So, grow and processing services will be outsourced going forward. With earnings increasing by 50% over last year but net loss exploding from $18.7 million to $40.6 million, MedMen also plans to examine each of their retail locations to ensure profitability at the store level.