Minnesota cannabis testing lab closes after regulatory issues, amid market surge

Lab closure comes as Minnesota retailers report $17.6M in May sales and face testing backlogs.

FILE — closure · Ivan Radic / CC BY 2.0

A longtime Minnesota cannabis testing lab has shut down its program following regulatory issues, according to MPR News. The closure occurs as the state's market accelerates—retailers reported $17.6 million in May sales, double spring totals, and the industry has already exceeded $50 million in the first six months of legal operation.

The timing raises supply-chain concerns. One day after the lab closure was reported, CBS News documented that Minnesota cannabis store owners were already reporting testing backlog delays, suggesting the lab exit may worsen a bottleneck that could constrain retail growth even as demand climbs.

Watch whether Minnesota's regulator addresses testing capacity in its ongoing outreach; the state held a Mankato Q&A session in late July, signaling continued regulatory engagement as new dispensaries—including a father-son operation in Albert Lea and municipal stores in Osseo and Forest Lake—continue to open across the state.