Grown Rogue Claims Ground in Minnesota

MINNEAPOLIS – Grown Rogue International Inc., a Сannabis MSO focused on premium flower, has signed a long-term lease for a 109,000-square-foot facility in Fridley, just north of Minneapolis, positioning the company to produce for the state’s adult-use market. The deal comes as Minnesota’s recreational sales kicked off in September 2025, two years after voters approved legalization, and underscores how operators are racing to build supply chains in a state still grappling with early rollout kinks.

The Fridley site, acquired by landlord Rainbow WBSE MN LLC for about $75 per square foot, will rent to Grown Rogue at 73 cents per square foot each month. Local officials granted a conditional use permit in November, clearing the way for indoor growing. Plans call for a step-by-step rollout: initial construction on 10,000 square feet of flowering space starts early next year, scaling eventually to the state’s 30,000-square-foot cap for indoor canopy. Harvests could hit shelves by early 2027.

This move marks Grown Rogue’s fourth state entry, following operations in Oregon, Michigan, and New Jersey. The firm ended a services pact with Vireo Growth last year but has since bought out a minority stake in its Illinois unit. Third-quarter results, released last month, showed pro forma revenue climbing 26% year-over-year to $8.5 million, with adjusted EBITDA up 25% to $1.7 million – numbers that bake in contributions from its New Jersey partner ABCO Garden State. Straight-line IFRS figures dipped to $5.4 million in sales, largely from the Vireo unwind, but margins held steady around 20%.

From a business standpoint, the lease looks shrewd. At under a buck monthly per square foot, it’s a fraction of build costs in tighter markets like California, where fresh indoor setups can top $200 per square foot before equipment. Minnesota’s power grid here supports energy-hungry grows without the premium rates seen elsewhere, and the site’s size leaves room for processing or storage as demand picks up.

Yet timing matters. While dispensaries like Green Goods and RISE began recreational pours in September, supply shortages linger, exacerbated by just three licensed haulers statewide and a 90-day grace period for self-transport to labs. Grown Rogue’s 2027 debut means it skips the chaos of Hemp-to-Cannabis product swaps, due to wrap up by year’s end, but risks missing the first wave of pent-up buyer traffic.

Critics might flag the delay as a bet on stability over speed. Minnesota’s excise tax jumped to 15% this year atop the 6.5% sales levy, squeezing margins in a market projected to hit $430 million in 2026 sales, per MJBiz Factbook. Competitors, including legacy medical players converting to rec, already hold shelf space, and tribal outlets have cornered remote areas since 2023. Still, Grown Rogue’s craft-flower niche, stressing small-batch quality over bulk, could carve a premium lane if consumer surveys hold: a 2025 state fair poll found 40% of Minnesotans eyeing higher-end buds over basics.

For an industry long on hype and short on execution, this Fridley play signals Grown Rogue’s preference for measured bets. As Minnesota irons out its transporter woes and scales licenses, aiming for 300 retailers by mid-2026, the facility could anchor a Midwest hub, feeding not just local stores but cross-state distribution if borders ease. Whether it delivers the 20% returns the company chased in Q3 depends on flawless phasing and a market that doesn’t flood with cheap imports first. In a sector where half of new entrants fold within five years, such restraint might just be the edge that lasts.