By Max Sargent


MedMen was, for a short while, a prominent and respected name in the US legal cannabis industry, temporarily known as the "Apple store of weed" before taking on the less complimentary moniker: “DeadMen”. The implication of being moribund turned out to be a harbinger of doom, and the company is, alas, no more.

The comparison with Apple wasn't meaningless, reflecting MedMen’s bold, customer-facing vision. Their stores offered a high-end shopping experience that set a new standard in cannabis retail and offered a vision of how the future could look. However, despite their initial success, MedMen's story took a drastic and devastating turn towards financial instability, administrative issues, and bankruptcy, transforming the company from an industry leader into a cautionary tale.

Here, we take a look at the turbulent history of MedMen, explore what actually happened, and ask what it might be able to tell us about the future of the legal cannabis industry.

What is MadMen

Who Were MedMen?

Founded in 2010 by Adam Bierman and Andrew Modlin, MedMen stood out in the burgeoning legal cannabis market due to its sleek branding and upscale dispensaries. All the while, it distanced itself from stereotypical tropes about cannabis and cannabis users. Bierman and Modlin set out to manifest their bold vision of the cannabis industry, and for a time it proved very popular, at one point causing them to be valued at $3 billion.

The company's contemporary approach to cannabis retail aimed to normalise the substance, making its purchase routine and positioning it in a new light, as an acceptable, desirable plant with a plethora of benefits in the modern world. Located in prime, cannabis-friendly locations such Venice Beach, CA, New York’s Fifth Avenue, and near the Las Vegas strip, MedMen's dispensaries showcased an array of cannabis products, from various strains to edibles and concentrates, in a modern, mainstream setting.

All of this sought to change perceptions around cannabis, invite in a broader customer base, and ultimately make money. At first, it looked highly promising. Fast-forward to the present day, and it was never to be.

Why Did MedMen Collapse?

The journey from rapid expansion to financial distress began subtly, but gained momentum over time before snowballing out of control. MedMen first entered the public market in 2018, eight years after their creation, with a share price of just above $3, and investors quickly doubled its value. For a brief moment, the future looked bright.

However, the expansion was costly and ultimately proved untenable. The company took on substantial debt, amounting to hundreds of millions of dollars, and even attempted a massive $682 million merger with PharmaCann, which ultimately fell apart due to antitrust scrutiny from the Department of Justice. This turned out to be a blow from which they would never recover.

By April 23rd, 2024, MedMen's financial challenges reached a terminus, resulting in the company entering into receivership. This development was a result of prolonged cash flow issues exacerbated by high operational costs, competitive pressures from unlicensed sellers, and an unforgiving market environment that intensified with regulatory concerns over vaping.

MedMen collapse

A Perfect Storm of Problems

The fall of MedMen can be traced back to a combination of poor decisions and external challenges—not all of which can be fairly laid at their feet.

Adam Bierman, one of the two co-founders, was compelled to step down amidst controversies, including accusations of racism and financial mismanagement, which tainted the company's reputation, spooking investors and customers alike. Furthermore, the legal cannabis market as a whole faced unexpected regulatory problems and subsequent investor scepticism due to public health developments. For example, issues with hazardous vape cartridges emerged, leading to increased scrutiny and regulatory pressure and undermining much of the wellness-focused marketing that the industry, as a whole, thrives on.

Despite a short-lived boost during the COVID-19 pandemic, the company could not overcome its fundamental financial burdens. Even before the pandemic, in 2019, MedMen's stock had more or less collapsed, losing 92% of its value—a decline from which it never recovered. Come the end, the company disclosed over $400 million in liabilities in its bankruptcy filings, a stark declaration of its dire position.

Does MedMen’s Demise Affect the Broader Weed Industry?

MedMen's dramatic rise and fall raises important questions about the sustainability of rapid expansion in the still-evolving legal cannabis industry. The company's fate serves as a cautionary tale about the dangers of overleverage and the importance of robust financial and operational management.

While the industry is certainly growing, operating in a fast-changing and inconsistently regulated industry poses serious risks. In fact, what we learn is that cannabis-related companies need to take baby steps where risk is involved, as it can be difficult to know what the future will look like, and sudden developments in such a volatile and stigmatised industry can spell doom.

However, MedMen’s story is also one of reckless ambition, and could be applied to any business, cannabis-related or not. Attempting to dominate the market, quickly, could pay off for a lucky few businesses, but it can also result in a spectacular implosion.

Goodbye to MedMen

So with MedMen gone, what can we learn? It’s dangerous to take too much away from a single company’s demise, but this unfortunate tale tells us two things—first, that the cannabis industry is volatile and risky; second, that rapid growth isn’t always good.

Despite the infamy of this company and their trajectory, there are many cannabis-related companies that are thriving, even at a time when the world’s economic outlook is quite bleak. So, while the industry still has a long way to go, if you tread carefully, business success is possible.

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Privacy Policy - Royal Queen Seeds

To ensure a safe online environment and guarantee adequate data protection, we strictly comply with all legal requirements. In this privacy statement, we provide information about how and for what purpose data is collected, safety measures, storage periods and contact details.


COMPANY NAME: SNORKEL SPAIN, SL (hereinafter ROYAL QUEEN SEEDS)

C/ Vilar d'Abdelà, 5 (nave 1) CP: 08170 de Montornès del Vallès

+34 937 379 846

support@royalqueenseeds.com


The present Privacy Policy sets out the terms on which we will treat personal data at ROYAL QUEEN SEEDS; this includes any personal data collected through our website https://www.royalqueenseeds.com/ as well as any other data we process in the course of our business activities.

ROYAL QUEEN SEEDS collects the following personal data for the purposes listed below:

SECTION 1 – PERSONAL INFORMATION WE COLLECT

1.1 Account purchases

Account purchases can only be made if you are in possession of a personal account. When you create an account or purchase something from our shop, as part of the buying and selling process we collect the following personal information that you provide to us:

This information is required for delivery. In addition, when you browse our shop, we automatically receive the Internet Protocol (IP) address of your computer. Based on this information, we can optimise your online experience and at the same time protect our online environment.

Purpose of data collection

We collect and store account-related data for the following purposes:

(a) to carry out obligations arising from any contracts between you and us, and to provide you with information, products and services that you may request from us;

(b) to set up, manage and communicate with you about your account and your orders;

(c) to conduct market research and analysis;

(d) to confirm your age and identity, and to detect and prevent fraud.

1.2 Newsletters

With your explicit permission, we may send you newsletters about our shop, new products and other updates. We send newsletters based on your explicit consent. In the event that you purchase a product, and in accordance with current regulations, we may send you commercial communications in accordance with the legitimate interest of our company, always about products or services similar to those you have purchased or contracted. In any case, you may exercise your right of opposition through the channels announced in this Privacy Policy. The following information is collected in relation to the newsletter:

We do not need to know the sex of the person in order to send the newsletter (data minimisation: by law we must ask for data that is strictly necessary to provide the service, and in this case knowing the sex is not necessary to send the newsletter).

Purpose of data collection

The data collected is used to:

(a) personalise our emails, including your name and gender;

(b) provide gender-specific content.

You can withdraw your consent at any time by using the link provided in the newsletter or the contact information provided in section 2.

1.3 Customer service and contact form

In order to provide appropriate support, our customer service employees have access to information related to the account. Consequently, their support will be highly effective and friendly. The data provided in our contact form is used by our CRM provider, SuperOffice. We will only use your details to respond to your message.

SECTION 2 – LEGITIMATE INTEREST

If you have purchased any of our products, please note that we may process your personal data for promotional purposes, based on Royal Queen Seeds' legitimate interest only to offer you products or services from our company and about products or services similar to those you have purchased. You may exercise your right to opt out of future messages by the means set out in this Privacy Policy or through any notification you receive.

2.1 How do you withdraw consent?

If you change your mind, you can withdraw your consent for us to contact you for the purpose of collecting, using, or disclosing your data at any time by reaching out to us at: support@royalqueenseeds.com.

SECTION 3 – DISCLOSURE

We may disclose your personal information if we are required to do so by law or if you breach our Terms of Service.

SECTION 4 – HOW LONG DO WE KEEP YOUR DATA?

At Royal Queen Seeds, we will not retain your data for longer than is necessary for the purposes described in this Policy. Different retention periods apply for different types of data; however, the longest period we will normally hold any personal data is 10 years.

4.1 Account information

Data relating to the account remains relevant for as long as the consumer is in possession of an account. Therefore, the data remains documented for as long as the account exists. When our customers delete an account, the associated data will be deleted within a reasonable period of time. Requests regarding the inspection or correction of stored personal data or the deletion of an account can be sent to support@royalqueenseeds.com.

4.2 Newsletters

In the event that you give us your consent to inform you about our products or services, we will keep your data until you express your wish not to receive any further communications from us. However, we regularly (every month) carry out a relevance check. Registered customers (and their personal information) will be deleted whenever customers do not reply to our request. In addition, our newsletter mailing has an opt-out feature. Consumers can withdraw their consent by using this opt-out feature.

SECTION 5 – COOKIES

Cookies are small information files that notify your computer of previous interactions with our website. These cookies are stored on your hard drive, not on our website. Essentially, when you use our website, your computer displays its cookies to us, informing our site that you have visited before. This allows our website to function more quickly and remember aspects related to your previous visits (such as your username), making your experience more convenient. At Royal Queen Seeds, we use two types of cookies: functional and analytical.

5.1 Functional Cookies

Functional cookies are used to enhance your online experience. Among other things, these cookies track what is added to your shopping cart. The use of these cookies does not require prior authorization.

5.2 Analytical Cookies

Analytical cookies are used for research and market analysis. The data collected with these analytical cookies is anonymous, making it unusable for third parties. The use of these cookies does not require prior authorization.

SECTION 5 – THIRD-PARTY SERVICES

Third-party services are required to conduct transactions and provide our services. In general, the third-party providers we use will only collect, use and disclose your information to the extent necessary to enable them to perform the services they provide to us.

However, certain third-party service providers, such as payment gateways and other payment transaction processors, have their own privacy policies regarding the information we must provide to them for your transactions.

We encourage you to read the privacy policies of these providers so that you can understand how these providers will handle your personal information.

In particular, certain suppliers may be located or have facilities located in a different jurisdiction than yours or ours. Therefore, if you choose to proceed with a transaction involving the services of a third party, your information may be subject to the laws of the jurisdiction in which that service provider or its facilities are located.

Once you leave our website or are redirected to a third-party website or application, you are no longer governed by this Privacy Policy or the Terms of Service of our website.

Web analytics service (anonymous data)

On this website we have integrated an element of a web analytics service (with anonymisation functionality). Web analytics can be defined as the gathering, processing and analysis of data about the behaviour of visitors to websites. An analytics service collects, among other things, data about which website a person came from (the so-called referrer), which sub-pages they visited or how often and for how long they visited a sub-page. Web analytics is mainly used for website optimisation and for a cost–benefit analysis of internet advertising.

Courier service

To complete deliveries we use a courier service. This courier service carries out the delivery between our company and the consumer's home. To complete these logistics, the company requires access to the consumer's name and address information.

Mailing service

Royal Queen Seeds uses a third-party mail service provider to send its newsletter. This provider has access to limited account information related to opt-in consent (e.g. email address).

Marketing services

Royal Queen Seeds has the support of a company that specialises in marketing and communication activities. Their access to personal information is very limited and mostly anonymous.

Payment services

At Royal Queen Seeds we use external payment services to handle our transactions (e.g. credit card payments).

SECTION 6 – SECURITY

To protect your personal information, we take reasonable precautions and follow industry standard best practices to ensure that it is not inappropriately lost, misused, accessed, disclosed, altered or destroyed.

If you provide us with your credit card information, the information is encrypted using secure socket layer technology (SSL) and stored using AES-256 encryption. Although no method of transmission over the internet or electronic storage is 100% secure, we follow all PCI-DSS requirements and implement additional industry standards that are commonly accepted. Information related to the account is protected with a hashing method. This method transforms the information into a generated hash. As a result, confidential information is protected and invisible, even to us. In addition, our databases are exceptionally protected against unauthorised access. For example, access to the database is only possible and permitted via approved IP addresses (e.g. from Royal Queen Seeds headquarters). Other attempts and addresses are rejected at all times.

Furthermore, data is anonymised as much as possible, so it cannot be directly linked to a specific consumer. With this data, however, we may be able to carry out market research and analysis. In addition, the third parties concerned (e.g. mailing service) are examined prior to our collaboration, comply with the GDPR from the EU and receive a processing agreement. Within Royal Queen Seeds, employees are assigned different access permissions. Specific permission provides access only to information that is strictly required to perform a task. Digital security measures are subject to change and must meet high requirements to ensure the safety of online customers. That is why, at Royal Queen Seeds, we appoint a security officer. Regular verification and improvement of security measures (where necessary) are part of the role.

SECTION 7 – CHANGES TO THIS PRIVACY POLICY

We reserve the right to modify this Privacy Policy at any time, so please check back regularly. Changes and clarifications will be effective immediately upon being published on the Website. If we make substantial changes to this policy, we will notify you here that it has been updated so you will know what information we collect, how we use it and under what circumstances, if any, we use and/or disclose it.

SECTION 8 – YOU HAVE THE RIGHT TO: