BEMIDJI — Jeff and Janelle Hill have a myriad of memories from Mexico.

Bringing a piece of their travels back home, the pair plans to open Coconut Cannabis — the first family-owned, non-tribal recreational cannabis dispensary in the Bemidji area and among the first 10 of such distinction in the state — by the end of February.

“We visit Mexico a lot, and we really like the vibe down there,” Janelle said, “so we thought we’d bring that up here.”

The idea for the Mexico-themed dispensary sprouted specifically from the legalization of recreational marijuana in Minnesota in August 2023, though the Hills were brainstorming ways to create an additional revenue stream back in 2022.

Madelyn Haasken / Bemidji Pioneer

The pair had operated Lakes Market and Lakes Liquor at 13477 Irvine Ave. NW since 2019, the latter of which would undergo expansion for their upcoming business venture.

“We had been thinking of operating a third business to protect us from the ups, downs and changes in the market,” Jeff said. “When marijuana was legalized, we decided that opening a retail dispensary would be a good idea since we feel pretty confident in our retail operations. … That fall, we built the building that will be Coconut Cannabis moving forward.”

The 2,400 square-foot facility is adjacent to Lakes Liquor and includes a showroom, waiting area, office space and restricted sections, complete with decor, colors, tile, woodwork and a name inspired by the Hills’ expeditions.

While set to open in less than one month’s time, the process to do so was rarely easy.

A learning curve continually presented itself over the past two years as the state solidified its licensing system and regulations were put in place.

“It was a long process and a lot to learn,” Jeff said. “We had a lot of consulting and legal help in the application process.”

Coconut Cannabis has attained a microbusiness license focusing on retail. With proper licensing, the Hills brought on general manager Robert Holthaus as a wealth of regulatory knowledge.

Holthaus keeps in contact with the
state’s Office of Cannabis Management,
sending them Coconut Cannabis’ Final Plan of Record, which informs the OCM how the dispensary will operate.

“They’re essentially documents that detail what we’re going to do, how we’re going to follow these laws and ensure that we’re in full compliance with all regulations that apply to us,” Holthaus said. “A lot of it mirrors our standard operating procedures, which range anywhere from how we’re going to catalog our product to how to change the coffee filter.

“It’s the very basic as well as all the large scope stuff that needs to have step-by-step instructions that are followed every single time.”

Madelyn Haasken / Bemidji Pioneer

Holthaus met Jeff when working for Frito-Lay, distributing chips to Lakes Market. Holthaus was aware of the budding cannabis industry and the fact that the Hills sought to open their own dispensary.

“Looking to make a change, I asked Jeff if there was any opportunity for a management position here,” Holthaus reminisced. “We sat down and talked about it, and I ended up taking the position.”

With a background in aquaponics, Holthaus initially moved to Bemidji to start his own growery.

“Unfortunately, that didn’t happen the way I wanted, so finding (this Coconut Cannabis position) was a blessing,” he said. “I’m really happy to be here and look forward to working here.”

Madelyn Haasken / Bemidji Pioneer

Alongside Holthaus, assistant manager Josh Fadness possesses a passion for the industry, viewing his role as more than just sales.

“Being able to educate the community on cannabis and being affiliated with a family-run business is very important to me,” Fadness said. “I’m excited for what Jeff, Janelle and Robert are building here, and it’s going to be great.”

The educational aspect of the role is of particular interest to Fadness, as well as providing a welcoming atmosphere as patrons enter the door.

“I’m really excited to promote a safe business like this for recreational use, and help break some of the stigma that’s been associated with cannabis over the years,” Fadness added. “We then want to provide an excellent spot where customers want to return and feel comfortable. Those are my goals.”

Coconut Cannabis will employ seven budtenders — three full-time and four part-time — who will initially work one set shift. Budtenders are responsible for offering suggestions to customers, answering questions and safely handling cannabis products.

Holthaus noted that each team member will earn certification in budtending as part of their training.

“I’m looking forward to having a well-educated team to help educate the community,” Holthaus said, “and provide excellent customer service.”

Madelyn Haasken / Bemidji Pioneer

Jeff noted potential expansion in hours of operation after Coconut Cannabis has found its footing and growth in staffing as a result.

“As far as expansion is concerned, we’ll see where we go from here,” he said. “As of right now, we’re just focused on opening and running a quality store.”

Among other goals, Holthaus hopes that Coconut Cannabis can be a one-stop shop for everything marijuana. This extends beyond the plant as the store will provide prerolls, vapes, concentrates, edibles, topicals and a wide range of accessories as well as a line-up of merchandise designed by Janelle.

“If you buy (marijuana) from here, we’ll have the parts for it,” Holthaus said. “We want to make sure that we can sell you the product to consume, but also the things you need to consume it and to maintain the things you’re using to consume.”

Fadness added that literature will be provided to customers to aid in education on the effects of cannabis use, as well as addiction resources.

“That’s important to myself and everyone else here,” Fadness said. “We want to make sure that people are living happy, healthy lives.”

Jeff noted anticipation for Coconut Cannabis’ eventual opening, which he hopes will provide a plethora of benefits for community members as well as its own employees.

“We’re going to be very customer-focused and employee-focused, and operate as a nice family-run business,” Jeff left off. “We’re excited as hell to get going.”

No specific opening date for Coconut Cannabis has been set. More information and online ordering will become available at
coconutcannabis.net.