The Cannabis Regulatory Agency (CRA) today announced a consent order and stipulation with Cherry Industries LLC (AU-G-C-000925), located at 6387 E. Nevada Street, Detroit, Michigan, resulting in the surrendering of their Class C Grower license.
On April 3, 2024, following an investigation, the CRA issued a formal complaint against the adult-use class C marijuana grower license (no. AU-G-C-000925) of Cherry Industries LLC for violating several provisions of the Michigan Regulation and Taxation of Marihuana Act (MRTMA) and its administrative rules.
During a routine inspection on November 15, 2023, CRA agents discovered Cherry Industries LLC had exceeded their legal plant limit. Additionally, numerous marijuana products, including immature and mature plants, buds, trim, and pre-rolls, were found untagged and not tracked in the state monitoring system. Further review revealed severe inventory tracking issues.
Cherry Industries LLC could not account for large discrepancies in both positive and negative package adjustments, amounting to thousands of pounds of marijuana product and thousands of units. Over 4,200 pounds of product recorded in the statewide monitoring system did not exist physically, and more than 41,000 pounds of wet weight from 115 harvests remained incomplete in the system. It was also found that Cherry Industries LLC had improperly mixed products from different harvests, transferred marijuana that had failed safety testing due to contamination with a banned pesticide, and sold contaminated pre-rolls to consumers.
Additional violations included improper batch sampling practices, failure to provide full access to batches for lab testing, and substantial noncompliance with video surveillance requirements. Although the CRA granted an extension for submitting surveillance footage, the Respondent ultimately provided incomplete and insufficient footage, including missing days, limited camera coverage, and hours-long gaps.
These findings collectively demonstrate significant failures in regulatory compliance, product tracking, safety standards, and operational transparency.
As part of the consent order and stipulation, Cherry Industries LLC license has agreed to permanently voluntarily surrender the license (effective ten days after the effective date of the order) and has agreed that it shall not be renewed, reinstated, reissued, or reactivated, limited or otherwise, at any future date.
