Nobody is especially eager to talk about slotting fees, a.k.a. the “pay to stay” deals brands make with dispensaries. And it’s not just because they might be illegal in California.
WeedWeek business columnist Dan Mitchell takes a closer look:
“It’s impossible to say how widespread such arrangements — called “slotting fees” or “pay to stay” deals — are in cannabis. Among big, mainstream retail chains, the fees can reach into the hundreds of thousands of dollars in the biggest stores. So far, cannabis retailers are charging between $1,000 and about $50,000 for prime real estate, according to various reports. This development has boutique brands worried.”