Missouri’s cannabis industry is facing its second massive product recall in less than a year, this time involving 135,000 products, double the size of the previous recall. The situation has left industry leaders scrambling to quarantine thousands of vapes, edibles, and pre-rolled joints, exacerbating the challenges they already faced from last year’s recall.
The first recall, issued on August 6, affected 2,650 products from NGWMO LLC, based in Marceline, due to improper testing before reaching consumers. Two days later, another recall was issued for 133,000 products from C&C Manufacturing LLC in Springfield, concerning inadequate tracking within the state’s seed-to-sale system, making it impossible to verify product safety.
The sheer volume of recalled products is posing significant storage challenges for dispensaries, who are forced to quarantine them while awaiting resolution from authorities. This situation is further complicated by the ongoing legal battles stemming from last year’s recall.
The 2023 recall involved Delta Extraction, based in Robertsville, after authorities discovered the company was selling a distillate primarily made from hemp-derived THC, which was not grown in Missouri and lacked proper traceability. The recall resulted in over 60,000 Delta Extraction products being removed from shelves and the revocation of the company’s manufacturing license. However, Delta Extraction has appealed the decision, and the case remains unresolved in the Administrative Hearing Commission.
A related lawsuit, filed by contractor SND Equipment Leasing, seeks $20 million in compensation, claiming they were unfairly affected by the confiscated equipment. While SND focuses on financial restitution, Delta Extraction continues to fight the state’s regulatory actions.
The 2024 C&C Manufacturing recall carries significant implications due to the company’s specialization in producing distillate, which is a key ingredient in various cannabis products. This recall is impacting the value chain downstream, particularly vapes and oils. The situation raises concerns about whether the Missouri Department of Health should develop specific procedures for distillates to prevent such disruptions in the future.
Missouri’s cannabis industry faces a critical juncture as it navigates these challenges. The ongoing recalls and legal disputes highlight the need for robust regulatory frameworks to ensure product safety and traceability, ultimately protecting both consumers and businesses.
