Member Blog: Regulating the Cannabis Industry for Accuracy and Integrity
Regulating the Cannabis Industry forAccuracy and Integrity
In the fast-evolving landscape of the cannabis industry, ensuring accurate testingstandards is paramount to safeguarding consumer safety, maintaining regulatorycompliance, and fostering fair market competition. However, a pervasive challengeknown as cannabinoid inflation threatens to undermine these essential principles,posing a significant obstacle to the industry’s growth and legitimacy.
Understanding Cannabinoid Inflation
Cannabinoid inflationrefers to the practice of cannabis testing laboratories providinginaccurately high cannabinoid concentrations in their reports, often in an attempt toattract business. This phenomenon distorts market dynamics, leading to unfaircompetition and jeopardizing the credibility of legitimate labs that adhere to rigoroustesting standards. Contaminant deflationis a significant concern, too, as labs willing toinflate cannabinoids are also more likely to underreport the presence and/or amount ofhazardous substances.
At the heart of this issue lies a fundamental discrepancy between reported and actualcannabinoid content in cannabis products. As cannabis producers and distributors seekout labs offering higher THC values, a troubling trend is to use only labs that will inflatethe value of desirable cannabinoids, such as THC. This practice, known as laboratory shopping, perpetuates the cycle of inflated results, undermining integrity and forcingaccurate reporting labs out of business.
Proposing Regulatory Solutions
To address this pressing cannabinoid inflation challenge, Digamma Consulting,renowned experts in cannabis chemistry, presents a comprehensive set of regulatorysolutions in their latest white paper, Solutions to Cannabinoid Inflation.
Solution A: Data Analysis Reports Advocating the adoption of data analysis reports,Digamma proposes a systematic approach to analyzing testing data, providingregulators with a solid foundation for action. By leveraging data analytics, authoritiescan identify trends, anomalies, and potential instances of cannabinoid inflation. Suchidentification enables regulators to make targeted and legally justified interventions thatcan help to improve testing integrity.
Solution B: Suspect Product Checks Digamma recommends implementing suspectproduct checks, also known as “secret shopper” programs, to detect inflatedcannabinoid values. This cost-effective mechanism allows states to conduct productsampling and testing of suspected lab results by independent accredited referencelaboratories that will validate reported cannabinoid content and mitigate inflated results.
Solution C: Chemical Analysis Laboratory Audits Digamma proposes implementingin-person audits of chemical analysis laboratories to ensure testing integrity and thusdirectly address cannabinoid inflation. Subjecting testing facilities to rigorous scrutiny byexpert auditors enables regulators to assess compliance with standards and uphold theintegrity of the testing process.
Digamma’s White Paper: Solutions to Cannabinoid Inflation
Digamma’s white paper on regulating the cannabis industry for accuracy and integrityrepresents a significant step toward addressing the pervasive challenge of cannabinoidinflation. By advocating for practical, low-cost regulatory solutions, Digamma Consultingaims to empower government regulators to uphold transparency, impartiality, and legaldefensibility in cannabis testing reporting and labeling.
As the industry continues to evolve, it is imperative to prioritize consumer safety,regulatory compliance, and market fairness. Through collaborative efforts and ongoingdialogue, we can navigate the complexities of the cannabis industry and propel it towarda future characterized by integrity, transparency, and accountability. Join Digammainthe quest to build a safe, fair, and thriving cannabis industry for all.
Member Blog: The Importance of Supporting Black-Owned Companies, Small Business and Social Equity Participants
The cannabis industry has been rapidly growing in recent years, with many new businesses and startups entering the market. However, it is important to note that not all cannabis companies are created equal, as there is a significant lack of diversity in the cannabis industry.
Studies have shown that only a small percentage of cannabis companies are owned by people of color. This lack of diversity can have negative impacts on the industry, including limited perspectives and ideas, and a lack of representation for marginalized communities.
To promote diversity and equity in the industry, it is crucial to support black-owned companies, small businesses, and social equity participants in the cannabis industry. By doing so, we can help level the playing field and promote a more inclusive and representative industry for all.
One great opportunity to learn more about supporting black-owned companies in the cannabis industry is the Black Elevation Cannabis Affair. This event brings together pioneers in the industry to share their experiences and insights on how to succeed as a black-owned cannabis company. In honor of Black history month, the event is being held at The Roostertail in Detroit, Michigan on February 10, 2024, and attendees can expect to learn about a variety of topics, including the challenges and opportunities that come with owning a cannabis business, how to navigate legal and regulatory hurdles, and how to build a successful brand and customer base.
In conclusion, promoting diversity and equity in the cannabis industry is essential for the growth and success of the industry as a whole. Supporting black-owned companies, small businesses, and social equity participants is a crucial step toward creating a more inclusive and representative industry. To learn more about supporting black-owned companies in the cannabis industry, be sure to attend the Black Elevation Cannabis Affair.
Member Blog: Personal Touches for Successful Cannabis Dispensaries
Everyone in the retail dispensary industry is trying to create unique and memorable ways to bring in more customers and up the per ticket sales. The trend of the past few years has been to try to appeal to as many people as possible, and take on almost a generic, fast food style. This is exactly what the big guys do. Cookie cutter locations that lack personality and individuality. While this may be tempting to replicate and seem like a sure fire win, designing your location to appeal to everyone ends up boring your ideal customer. Cannabis retail experiences should have an on brand wow factor. If customers didn’t want that, they could just order online and pickup.
Dispensaries strive to create unique and memorable experiences for their customers. As a retail interior designer with a focus on dispensary design, incorporating personal touches can significantly contribute to the success of the dispensary. These special touches also boost your brand identity and be a great starting point for marketing and social media content for your brand.
How do you reflect your brand identity?
One of the key aspects of dispensary design is ensuring that the space reflects the brand identity of the cannabis retailer. Incorporate elements that showcase the company’s values, mission, and overall aesthetic. I love when I walk into a dispensary and learn the “why” behind the brand. Why are they doing this? Who are they impacting? A favorite ‘personal touch’ of mine happens to be a mural dedicated to the store owner’s mother who had passed away from cancer. My client opened his dispensary to provide relief to other cancer patients. The murals featured her namesake flower as well as her favorite colors. He is an aquaponic grower, hence the fish.
From custom signage to branded displays, and incorporating unique and personal touches ,a cohesive visual identity contributes to a memorable and recognizable dispensary experience.
How can I merchandise?
Creative merchandising plays a crucial role in attracting and retaining customers. It also goes way beyond just how something looks on a shelf or wall. Use personalized displays to highlight featured products, promotions, or staff picks. This doesn’t necessarily mean more info cards or signage. Incorporate unique shelving, display cases, or even interactive elements that engage customers and encourage exploration within the space. A great example of this is at the Woods. Check out how a very simple wall mounted box display fits the personality of the shop and also engages people to take a longer peek.
How can I represent my culture & philanthropy?
Infusing your proud culture and art into the dispensary design is a great way to show people who you are, who you support and where you came from. Whether it’s through local artist artwork, murals, or installations, integrating artistic elements adds depth and character to the space. Collaborating with local artists to create custom pieces that resonate with both the brand and the community. Talk about organizations that you support and what they do. I have a great client who includes a small card in each bag that says “Thank you for your purchase. We donate 10% of our profits to the Friends of Puerto Rico.” They also feature contemporary Puerto Rican Artists in their hall gallery and entry area.
Ultimately, dispensaries will compete for customers and sales, like it or not. In the competitive retail world, personal touches set cannabis retailers apart and contribute to the overall success. Whether through reflecting brand identity, engaging visual merchandising, artistic influences, comfortable spaces, personalized interactions, interactive technology, or sustainable elements, the goal is to create a unique and welcoming experience for customers. As a retail interior designer, embracing these creative ideas elevate the dispensary’s aesthetic and establish a lasting connection with its clientele.
Member Blog: Discovering Dank – Unraveling the Mystery of the Cannabis Plant’s Iconic Odor
For decades, cannabis enthusiasts and scientists alike have been intrigued by the distinctive scents emitted by various cannabis cultivars. Particularly, the question that has persisted among many is: which compounds are responsible for the potent gassy and skunky scents so often associated with cannabis?
Abstrax Tech, a frontrunner in cannabis research, has recently made headway in answering this question. Their innovative research, encompassing advanced techniques and collaborative efforts, has brought forward the discovery of an entirely new class of aromatics, Cannasulfur Compounds (CSCs). These compounds, as discussed in Abstrax Tech’s white paper, “The Science of Dank” are the key to understanding the much-debated gassy aroma of cannabis.
The Path to Discovery
To delve deep into the scent mysteries, Abstrax Tech combined advanced Gas Chromatography (GC x GC) with various detectors, allowing for a nuanced detection of compounds. Their collaboration with acclaimed cannabis growers, like Mario Guzman of Sherbinskis and Josh Del Rosso (the original breeder of OG Kush), equipped them with diverse cannabis samples to analyze.
The analytical journey led the Abstrax team to an exciting hypothesis. What if the gassy scent in cannabis is sulfur-based? The team noticed the common occurrence of sulfur compounds in other potently aromatic foods, such as durian and garlic. Validating this hunch, they detected significant correlations between the presence of sulfur compounds and the skunky scent across various cultivars.
Among the discovered compounds, one was identified as 3-methyl-2-butene-thiol or “prenyl thiol”, with others also containing the same functional group, the “prenyl” group. Subsequent chemical synthesis and testing confirmed their role in producing the characteristic scent of cannabis.
The Significance of Timing in Cannabis Growth
But it’s not just about identifying the compounds. Abstrax Tech further explored when these aromatic CSCs are produced during cannabis growth. Their findings were eye-opening. The CSC concentrations skyrocket towards the end of the growth cycle and peak during the curing process, only to decrease rapidly post-harvest. This discovery holds immense value for growers, emphasizing the criticality of timing and packaging to retain the prized scent for consumers.
Cannasulfur Compounds in Cannabis Extracts
Cannabis extracts, popularly consumed in various forms, also raised the question: Do these volatile CSCs survive the extraction process? The answer, as per experiments, is a resounding yes, but with a caveat. The extraction process has to be meticulously executed. Techniques involving cryogenic extraction and minimal heat post-processing proved successful in preserving these aromatic compounds. Meaning that, just like terpenes, heat and oxygen will cause degradation.
Benefits for Cannabis Vape Manufacturers:
For cannabis vape manufacturers, CSCs represent a monumental advancement in the quest for genuine cannabis experiences:
Authentic Flavor Profiles: CSCs can be integrated into vape cartridges, recreating the unique aromatic and flavor profile of cannabis but in a botanical (and legal) format.
Product Differentiation: Emphasizing the presence of these natural compounds can distinguish a brand in a crowded market.
Precise Flavor Replication: With CSCs, manufacturers can precisely replicate specific strain aromas.
Enhanced User Experience: Experienced consumers will get a more accurate cannabis flavor and aroma experience.
Consistency from Batch to Batch: Using CSCs ensures every user gets a similar authentic experience, batch after batch.
Conclusion
Abstrax Tech’s groundbreaking discovery of Cannasulfur Compounds in cannabis is a testament to the endless surprises the plant holds. While the quest to identify the compounds behind the iconic gassy aroma has found its answer, it’s clear that this is just the tip of the iceberg for cannabis research. With each revelation, cannabis continues to unveil its vast potential, promising a future of exciting research and discoveries.
Ready to dive deeper into the fascinating world of cannabis discoveries?
Join the National Cannabis Industry Association (NCIA) and connect with like-minded enthusiasts, researchers, and industry professionals. As an NCIA member, you’ll stay on the cutting edge of groundbreaking findings, just like Abstrax Tech’s exploration into Cannasulfur Compounds. Don’t miss out – click here to join NCIA now and be part of the thriving cannabis community shaping the future of the industry.
Navigating the Confusing, Crowded World of Cannabis Payments
When you’re a cannabis retail operator looking for electronic cannabis payment solutions you’re faced with a baffling array of options and it’s hard to pick out the ones you can trust and the ones that you should avoid at all costs. Every potential vendor is going to tell you that their solution is the best (trust me!) so you need to understand the basic landscape of cannabis payment solutions in order to know what questions to ask. There’s a lot of solid vendors out there that only want to help the industry but there are, sadly, those out there that prey upon a lack of familiarity with the crowded, confusing payments landscape to push solutions that are at best unsustainable and at worst fraudulent.
ACH transactions are a way for a person or a business to do direct bank money transfers.
These transactions are conducted on a computer network run by NACHA, the National Clearinghouse Association. Since these don’t run over the networks run by the credit card companies like Visa or Mastercard – known as “payment rails” – these transactions don’t violate their rules. While NACHA hasn’t officially made a statement either way about cannabis, their actions suggest they don’t have an issue processing these transactions over their network.
The downside with many ACH solutions is that they aren’t necessarily convenient for the buyer. Because a customer or patient can’t just pull out a bank card they are often required to download an app and provide banking details like account and routing numbers. This isn’t necessarily an issue from the second purchase forward, but this can be a bit of a pain for a customer or patient trying to use an app for the first time if they’re not expecting to have to go through an account onboarding process that might take several minutes. The upside to this is that there are platforms that allow the buyer to upload funds via ACH to an eWallet, which, after the initial transaction, will enable them to make instant purchases. Platforms also allow the buyer to automatically replenish their eWallet via ACH, allowing them to always have funds to make purchases. These purchases can also be combined with a store’s loyalty points program.
Questions to ask about ACH solutions:
What does a customer or patient need to do to use the solution?
How long does it normally take for the funds to transfer, allowing a user to make purchases?
Are there any contactless platforms that allow a buyer to purchase the product for delivery or curbside pickup?
Do you need additional hardware to display a single-use QR code specific to the transaction?
Cashless ATMs and PIN Debit solutions are among the most common electronic payment methods that allow customers to directly use cards.
To discuss the issues that go along with any card-based solution we need to take a step back and talk about how payments are processed. As previously mentioned, every credit card company has a set of rails used by merchants to process a sale over their network. Each transaction is sent as a packet of information that broadly contains the following information: name of business, location of business, any additional merchant information, and merchant category code (MCC).
Every transaction has to be associated with a four digit MCC used by the merchants to indicate the nature of the business and the transaction. The code that’s traditionally been used by cashless ATMs and PIN Debit solutions is 5912, reserved for pharmacies and “cannabis (where legal to do so)”. This is what’s used in Canada where credit cards are an option but it’s not an acceptable option in the US because the major credit card networks have clarified that their rails cannot be used for the purchase of marijuana. They do so by prohibiting activities associated with “controlled substances, or recreational/street drugs” (VISA) or even more broadly “any Transaction that is illegal” (Mastercard) in their operating agreements.
It’s important to note that you can’t just randomly choose an alternative MCC because miscoding constitutes fraud. You may remember a few years ago that California-based delivery company Eaze was prosecuted in 2019 for using MCC codes associated with things like “carbonated drinks, green tea, face creams and other products” in an attempt to obscure the fact that the network was being used for the direct purchase of marijuana.
It should be noted however that there are a few ATM networks out there that aren’t directly owned by the big credit card companies like NYCE, Allpoint, Star, and Moneypass. These companies have been relatively quiet regarding the use of their networks for the purchase of marijuana products, so there is an argument to be made that if card transactions are sent over those rails they’re not violating any operating rules, but anecdotally we’ve heard that some of these networks aren’t necessarily cannabis friendly and, as private companies, they’re able to change their mind (for or against) whenever they wish.
Questions to ask about Cashless ATMs and PIN Debit solutions:
What MCC code is the payment processor using?
What network is being used to process the transaction?
Credit cards are notoriously off-limits to cannabis because of the very public positions taken by the major card networks but that doesn’t stop companies from popping up offering credit card processing for cannabis purchases. Let’s clarify here at the outset – there is no way to directly purchase marijuana with a credit card in the United States with a credit card from American Express, Visa, Mastercard, or Discover.
So, with necessity being the mother of invention, some companies are trying out a new strategy to get credit card processing into dispensaries legally. Among them are solutions that take advantage of another MCC code: 6051. This code is associated with the purchase of “liquid and cryptocurrency assets” and some enterprising payment providers are using it to set up a structure where a customer isn’t “technically” buying marijuana. Instead they are “buying” what’s called a “stablecoin”, a form of cryptocurrency whose value is pegged 1:1 to the US dollar.
Questions to ask about cryptocurrency or stablecoin solutions:
What MCC code is the payment processor using?
What stablecoin is being leveraged?
How is the stablecoin preserving its value?
What will the offramping of funds from a crypto wallet to my DDA account look like to my bank?
Cannabis retail operators are faced with serious business and legal considerations when determining the payment processing solution provided to patients and customers. What solution will be the easiest for the customer? Is the solution compliant?
The cannabis industry’s evolving legal and regulatory landscape is challenging, especially with bad actors seeking to implement non compliant make-shift payment solutions intended to capitalize off of cannabis businesses seeking efficient and effective cannabis payment solutions. It is essential that you do your due diligence on cannabis payment solutions presented to your business to confirm that it will not cause an issue for you, the business and its patterns and customers. We hope that this article outlines considerations that will allow you to protect your business and its patients and customers.
Ohio Becomes 24th State to Regulate Adult-Use!
On November 7, voters in the Ohio overwhelmingly approved Issue 2 which legalizes and regulates the sale and production of cannabis for adults over 21. The initiative, which goes into effect December 7, will legalize the possession of up to 2.5 ounces and the personal cultivation of up to six plants.
The initiative requires state regulators begin approving retail licenses by September 2024. The measure includes a 10% sales tax which directs funds to municipalities with dispensaries as well as vital services such as addiction treatment and social equity and jobs programs.
Ohio will become the 24th state to regulate the adult-use market and the move sets the percentage of Americans living in a state with legal cannabis to 53%.
“Congratulations to the Buckeye State. Well over half of Americans now live in a state that has opted to replace marijuana prohibition with laws that foster a well regulated, responsible adult cannabis market.” Stated NCIA CEO & Co-founder, Aaron Smith. “Now let’s make sure Congress and the White House make federal reform a priority as we head into 2024.”
Despite overwhelming voter support, prohibitionist Republican state legislators are already working to gut the initiative. Read more at Marijuana Moment.
Membership Has its Benefits
Join the Movement. Become a member of NCIA today.
As the only trade association focused on representing independent cannabis businesses, joining the National Cannabis Industry Association ensures your business and the Main Street Cannabis industry have a seat at the table where the future rules for national legalization are being written.
Our members also enjoy unparalleled ROI and benefits to help them thrive in an increasingly challenging environment, including:
Detailed market data through complimentary access to BDSA’s GreenEdge market intelligence platform and custom market reports from New Frontier Data ($4,000 total annual value) ,
Eligibility to serve on any of NCIA’s 14 sector-specific committees to weigh in on policy positions and develop best practices that will shape the cannabis industry for decades,
Listing or logo impression in NCIA’s high-traffic online industry directory and invitation to participate in exclusive NCIA member LinkedIN community,
Complimentary access to regional events and exclusive invitation to NCIA’s Annual Cannabis Industry Lobby Days in Washington, D.C., and
Ability to demonstrate your thought leadership by submitting guest content to NCIA’s Industry Essentials Blog or to post news about your company on our website,
Information on policy developments affecting your business and ability to engage with state regulators and lawmakers during our regular “Policy Matters” webinar series,
Recognition of your support for NCIA’s Social Equity Scholarship Program providing free support for those entering the industry from communities most impacted by the war on drugs,
Discounts on products, services, and marketing opportunities; and
Many more benefits providing your business with a competitive advantage over those still sitting on the sidelines of the national reform movement.
Starting at only $1,000 annually, NCIA offers membership plans for businesses of all types and sizes. Schedule a meeting with us to learn more!
Apply Now to Join One of NCIA’s Member Led Committees!
One of the best ways to increase your engagement with NCIA is to participate on one of our member-led committees. Committee members keep a finger on the pulse of our industry by meeting virtually to discuss current pain points for their industry sector as well as solutions for those problems. Members work together to write blogs, publish industry reports & white papers, produce educational webinars, and develop policy-related call-to-actions. These resources are vital for informing industry stakeholders, lawmakers, and the general public. This is also a great opportunity to not only ensure your company is included as a thought leader in the industry and gain brand exposure, but also give back to the industry through sharing your expertise.
Community Collaboration
NCIA Committees are hubs of cross-collaboration and offer unique networking opportunities by bringing together professionals that are committed to advancing the industry. You can collaborate, share knowledge, and establish meaningful relationships that can open doors and create opportunities. Individual committees as well as all of our Committee Officers meet regularly on a monthly basis to discuss their own projects as well as identify areas of collaboration.
Many of our committees also engage with our Social Equity members through a “Hot Seat” and “Ask Us Anything” style platform. In this forum, our Social Equity Members complete a short questionnaire, then attend a virtual meeting to have their questions answered by committee members. This is a valuable opportunity for our Social Equity members to not only get curated advice on how to advance their business, but also get connected with other business owners in the industry.
Essential Education and Industry Insights
NCIA Committees empower members with the unique opportunity to produce and contribute to educational content. Our Committees actively create content that benefits the entire industry and provide expert insights into various issues, trends, and challenges impacting our industry. Interested in what type of projects our committees have worked on? Take look at some of the content our committees have produced this past term:
The Cannabis Manufacturing, Hemp, & Scientific Advisory Committee joined forces to present a compelling five-part series of #IndustryEssentials webinars which explored a spectrum of critical industry topics surrounding minor, novel & synthetic cannabinoids from consumer safety, occupational health and regulatory considerations to enhancing workplace safety, and fostering dialogue around the broader cannabinoid landscape.
The Risk Management & Insurance Committee published a comprehensive series of resources that illuminated the intricate landscape of risk management, legal challenges, and insurance considerations surrounding novel cannabinoids. A blog post initiated the discussion, while an updated industry report delved deep into the novel cannabinoid conundrum, exploring loopholes, liability, and legislation. Finally, a live webinar then provided a dynamic platform for experts to further dissect these critical topics further.
NCIA Committee members contribute to the development of talking points and actively participate in our in-person Lobby Days in unique ways, such as meeting with the Committees on Agriculture, Nutrition, and Forestry this past year. NCIA Committees also take an active role in advocating for federal policy that affect their respective sectors. For example, NCIA’s Hemp Committee published this call to action, encouraging the industry to contact their representatives about adding amendments to the Farm Bill which is set to expire soon.
Still not sure committee involvement is right for you? Don’t take our word for it, read what Banking and Financial Services Vice Chair, Kameron Richards, has to say:
For existing NCIA members, applying for a Committee is a straightforward process. In order to apply to a committee, your company should be an active member willing to maintain your membership throughout 2024. Appointees may serve on no more than one committee at one time. Companies may only hold one seat per committee. Appointees must be engaged in all committee meetings and committee work, and should expect to commit 3-5 hours/month on committee-related work.
For those who are not yet NCIA members, now is the perfect time to join and seize the opportunities our Committees offer. By becoming a member, you gain access to this powerful network and countless resources that can elevate your involvement in the cannabis industry. You can secure your membership on our website today, once your membership is processed, apply to join one of our Committees during the application period here
Joining an NCIA Committee is a transformative opportunity for those who seek to maximize their impact in the cannabis industry. These Committees not only empower you with knowledge and connections but also provide exclusive opportunities for content creation and cross-collaboration. Whether you’re a current member or considering joining, don’t miss the chance to collaborate, learn, and make a difference within the cannabis industry.
Member Blog: Pre-Rolls are Poised to Become the #1 Category in Canada – Will the Same Trends Follow in the US?
Earlier this year, we predicted that pre-rolls were destined to be the top-selling cannabis product by the end of this decade, and a new deep dive into the Canadian market has only further convinced us that pre-rolls are not only a cornerstone of the current market, but a major driver for future growth not only North of the Border, but in a federally legalized U.S. cannabis market as well.
That’s because thanks in part to a staggering growth rate of 606% in infused pre-rolls from January 2022 to February 2023, pre-rolls are currently on the verge of overtaking flower as the top product category in Canada’s cannabis industry.
Using data from cannabis analytics firm Headset, our new White Paper, “Pre-Roll Growth in the Canadian Market,” details how pre-rolls in Canada have grown more than 50% over the past 18 months, from a 20.7% market share in early 2022 to a 31.5% total market share in May 2023, with total sales in the category topping CAD$1 billion in 2022. At the same time, flower sales in Canada continue to drop, falling to just 35% of sales in May 2023, compared to 31.5% for pre-rolls.
With federal legalization believed to be on the horizon for the United States, Canada’s data stands out as a national system and gives us some insight into how the American market could respond to a federal program, as opposed to one that is regulated state-by-state.
Growth in Every Market
Sales of pre-rolls in all four of the provinces tracked by Headset saw large increases. Pre-roll sales saw 33% and 37% growth in Saskatchewan and Alberta, respectively, a nearly 54% growth in British Columbia and a whopping 69% increase in Ontario, the country’s most-populous province. In the U.S., pre-roll sales also continue to surge, growing to a 12.1% market share in the States.
The sales growth has been fueled in part by the rise of infused, or “connoisseur” pre-rolls, which combine a cannabis concentrate and flower into a single pre-roll cone. The result is a more potent pre-roll, often at a higher price point, which has helped push revenue totals even higher since Health Canada clarified its rules in late 2021 to clear the way for the product.
Consumers have responded, with infused pre-rolls seeing an eye-popping 1,426% growth rate from 2021 to 2022. The segment grew from just under 3% of the market at CAD$12.7 million in 2021 to nearly 30% and CAD$47.9 million by mid-2023. That’s more growth than any other pre-roll category except single-strain hybrids.
Keeping Price Points High
The rising popularity of infused pre-rolls, with their higher price point, has been a significant factor contributing to the increase in the average price of Canadian pre-rolls. Infused pre-roll sales jumped from 6.2% of total sales in January 2022 to 29.8% of sales by February 2023. This trend has been instrumental in maintaining the overall price of pre-rolls even as prices for flower and concentrates have decreased.
According to Headset data, in 2022, pre-roll products accounted for 27% of the new items introduced in the Canadian market, demonstrating a remarkable growth rate of 48.2% compared to 2021, second only to beverages. In response to the increasing demand in this category, a total of 1,870 new pre-roll products were launched in the Canadian market during that year.
The resilience of pre-roll prices can also partially be attributed to their manufactured nature and the unique attributes of infused pre-rolls. The demand for stronger pre-rolls, coupled with declining prices for flower and concentrates, has created a favorable environment for launching infused pre-roll products.
Additionally, automated pre-roll machinery continues to evolve, including new automated infused pre-roll machines, making it easier for manufacturers to produce large quantities of infused pre-rolls at a slight premium over regular pre-rolls, leading to the category’s rapid expansion.
Multi-Packs and Cross-Generational Appeal
Other insights from our report include a surge in pre-roll multi-packs, with 2- and 5-gram packs seeing an almost 400% growth over the past two years, and that the pre-roll category shows less price compression than any other segment of the market, as it does in the U.S. as well.
Part of the strength of the pre-roll segment is its cross-generational appeal. For example, the Ontario market is the largest and fastest-growing of Canada’s provinces. With revenues reaching CAD$440 million in 2022, Ontario accounts for almost half of all sales in Canada. And within Ontario, the wallet share of pre-rolls grew within every generational group through 2021, with Gen X and Millennials seeing the largest growth, at around 45% each.
Within the fastest-growing group of consumers in the industry, Gen Z (which in Canada is a larger cohort than the U.S. due to a lower age restriction for cannabis purchases), pre-roll sales increased with both male and female consumers. The wallet share of pre-rolls among female buyers grew more than 4% to 20.4% in 2021. For males, the increase was even larger, growing from 14.6% of wallet share to 19.7%.
Final Thoughts on Pre-Roll Growth
The main factors driving the huge growth in pre-rolls are:
Increased pre-roll quality, as flower and concentrate prices drop, so companies can create a higher quality pre-roll at cheaper and cheaper prices.
Reduced labor costs, as advancements in pre-roll machinery help companies scale production and bring in automation.
Consumer buying patterns showing that customers want convenience and are consuming for recreational use, not health and wellness.
The next big trend in pre-rolls, which will push pre-rolls to the No. 1 sales category in the industry, is freshness. Competing in the future will mean better packaging and a better supply chain, so pre-rolls are always fresh at retail.
But with sales surging across both Canada and the U.S., now is the right time for producer/processors to launch or expand pre-roll lines, particularly infused pre-rolls and pre-roll multi-packs.
For more information on how you can capitalize on the latest trends in the pre-roll segment, contact the Pre-Roll Experts at Custom Cones USA.
Unlocking Social Equity in Legal Cannabis Delivery | 9.21.23 | NCIA #IndustryEssentials Webinar
Welcome to the National Cannabis Industry Association’s (NCIA) latest webinar recording, “Committee Insights: Balancing the Scales – Social Equity in Legal Cannabis Delivery.” NCIA’s #IndustryEssentials webinar series is your gateway to timely, engaging, and essential education in the dynamic world of cannabis. In this insightful session we partnered with NCIA’s Diversity, Equity & Inclusion Committee (one of our 14 member-led committees) to explore the pressing need to address historical inequities in the legal cannabis industry.
As the cannabis industry experiences exponential growth, it’s crucial to provide a platform for individuals adversely affected by past cannabis laws. Our esteemed panel of experts shed light on the importance of social equity in cannabis delivery regulations and offered actionable solutions for a more inclusive industry.
Learning Objectives:
• Understand the historical context of cannabis-related offenses and their disproportionate impacts.
• Recognize the crucial importance of social equity provisions in cannabis regulations.
• Identify best practices for implementing social equity in cannabis delivery.
• Engage stakeholders in constructive dialogues for industry-wide change.
Our target audience for this webinar included cannabis industry professionals and regulators, entrepreneurs interested in cannabis delivery services, social justice advocates, and policymakers, as well as legal professionals.
Whether you’re an industry insider or a passionate advocate, this webinar recording is a valuable resource to deepen your understanding of social equity in the cannabis industry. Join us as we work towards creating a more equitable and inclusive future.
NCIA Accepting Applications For 2024-2026 Board of Directors Term
NCIA is now accepting applications for eligible candidates to apply for the board through Friday, November 17, 2023.
The National Cannabis Industry Association is a nonprofit organization run for and by its membership, so we hope you’ll consider this opportunity to apply for a seat on the NCIA Board.
Serving on NCIA’s Board of Directors is no small task. Board members are responsible for overseeing the strategic direction of the largest and most influential cannabis industry organization in the country. Board Members are also responsible for building membership, fundraising, and ensuring that NCIA continues to be the strongest force advocating for the fair and equal treatment of the industry on Capitol Hill.
Current NCIA members in good standing are eligible to apply for a seat on the board. NCIA members who are interested and qualified to serve on our board are encouraged to submit an application for review by our nominating committee before the November 10 deadline.
Candidates may apply directly for a board position during the open application process. The application form asks for information about the candidate’s professional background, unique talents, skills, and viewpoints, and ability to contribute or raise financial resources for NCIA. Candidates must be fiduciaries of a NCIA member-business or be designated by a company fiduciary to serve on our board.
Who Qualifies To Run For A Board Position?
To be considered for a seat on the board, a candidate must be a fiduciary (e.g. owner, president, CEO) of a current member business at any level of membership or must be a representative of the business that has been appointed to serve by a fiduciary. Candidates must submit an application online by November 10.
What Are The Requirements For An NCIA Board Member?
Board members serve two-year terms and are responsible for overseeing the association’s overall strategy and budget, assisting in the development of strategic relationships, and serving as ambassadors of NCIA, which represents hundreds of member businesses. In general, the NCIA board meets in person twice and conducts 3-4 additional video conferences per year.
How Are The Board Positions Selected?
Once the application period closes, NCIA’s Nominations Committee will convene to carefully review and score all applications. The committee will ultimately select a slate of nominees to fill eight (8) available board seats that are best suited to bring additional talent, resources, and diversity to our growing organization, based on their qualifications.
Our Nominating Committee will comprise the chairs of our 14 member committees as well as a select number of current board members whose terms are not expiring this year. Once the Nominating Committee selects the slate of eight members will be notified at the end of this year.
Member Blog: Securing Your Cannabis Venture – Mastering Inspections with Comprehensive Cannabis Insurance
The cannabis industry continues to blaze a trail of growth and innovation, opening numerous opportunities for entrepreneurs and investors. However, this thriving landscape also exposes businesses to unique risks that demand proactive risk management solutions. Insurance plays a pivotal role in safeguarding cannabis ventures from potential losses, making it an essential aspect of responsible business operations. In this blog post, I will explore the critical role of inspections, the challenges they present, and how partnering with a reliable cannabis insurance broker can protect your business interests while mastering the art of inspections.
Understanding the Need for Inspections
The cannabis industry operates under stringent regulations, and inspections are an indispensable component of ensuring compliance. These routine evaluations, carried out by regulatory bodies or insurance carriers, are designed to assess product quality, safety standards, and adherence to legal requirements. While inspections are vital for maintaining high standards within the industry, they also expose businesses to potential vulnerabilities, particularly theft.
The Perils of Theft: Unraveling Insider Threats
As the cannabis industry expands, so does the risk of theft. A concerning issue arises from potential “inside jobs,” where employees or third-party trusted individuals gather sensitive information on-site, posing a significant threat to the operation’s stability. This situation often leads to confusion and concern for clients regarding third-party insurance inspectors who sometimes come on site without communication or vetting.
Clients frequently encounter uncertainty when dealing with these inspectors. They tend to reach out to operators to schedule appointments without confirming the inspector’s affiliation with the insurance carrier or broker. This results in delayed responses, as these calls are often mistaken for telemarketing and disregarded. Unfortunately, this miscommunication can lead to compliance issues with the insurance carrier.
To address this problem, transparent communication between the insurance broker, inspection company, and operator is essential. For example, many clients now ask me to verify the identity of those contacting them before scheduling appointments. I highly recommend this practice to protect clients’ sensitive information.
In this evolving landscape, ensuring security and effective communication is paramount. By taking proactive steps, we can enhance the industry’s growth while safeguarding its integrity.
Transparent Expectations: Building a Solid Foundation
Open and direct communication, coupled with well-defined expectations, serve as the cornerstone for effective inspections within the cannabis industry. My commitment lies in bridging the gap between clients and inspectors, enabling them to familiarize themselves with one another and streamline the scheduling process. A comprehensive comprehension of the inspection procedure, its aims, and the specific areas subject to scrutiny is imperative for businesses. Simultaneously, transparency on the part of insurance carriers regarding inspection protocols and their protective role is crucial for your business’s security.
Embracing a collaborative approach to inspections fosters a strong alliance between businesses and insurers. This synergy guarantees a seamless process that ultimately benefits all stakeholders involved.
Guarding Behind-the-Scenes Details: Protecting Business Operations
In the fiercely competitive cannabis landscape, certain aspects of business operations must be protected with utmost confidentiality. These behind-the-scenes details include proprietary cultivation techniques, security measures, and intricate supply chain arrangements. Recognizing the sensitivity of this information, leading cannabis insurance brokers take extraordinary measures to safeguard such details.
The integrity of inspection processes begins before any inspector sets foot on your cannabis business premises. Reputable cannabis insurance carriers undertake rigorous vetting of third-party inspection companies to verify their credentials and expertise. This stringent evaluation ensures that inspectors adhere to the highest standards and are committed to protecting your business. In cases where an inspector contacts you directly, it is essential to politely reschedule the inspection and promptly inform your insurance broker.
Aligning Real-Time Risks with Comprehensive Insurance Coverage
Beyond regulatory compliance, inspections serve another vital purpose: assessing real-time risks and aligning them with the insurance coverage outlined in your policy. This strategic alignment ensures that your cannabis business is adequately protected against potential losses. Collaborating with your insurance broker to comprehend the risks inspectors evaluate and their significance empowers you to optimize your risk management strategies. By proactively addressing any coverage gaps, your cannabis insurance policy becomes a reliable safety net, allowing you to navigate the dynamic cannabis industry with confidence.
Addressing Unique Industry Challenges: Tailored Cannabis Insurance Solutions
The cannabis industry operates in a state of constant flux, with evolving regulations and market dynamics presenting ever-changing challenges. These unique complexities demand specialized insurance solutions that cater to the specific needs of cannabis businesses. Leading cannabis insurance providers possess an in-depth understanding of industry intricacies, enabling them to craft policies that safeguard against cannabis-specific risks. From crop damage and product recalls to theft issues, these tailored insurance solutions provide comprehensive coverage, assuring businesses of their resilience in the face of adversity.
Overall, inspections and comprehensive cannabis insurance play instrumental roles in securing your cannabis venture against potential risks and losses. Transparent communication and clear expectations before, during and after inspections build trust and foster collaboration between all stakeholders.
Guarding behind-the-scenes details is of utmost importance, and trusted cannabis brokers go the extra mile to protect your business operations from potential breaches. Vetting inspectors diligently ensures the security of the inspection process, preventing unauthorized access to sensitive information.
By aligning real-time risks with comprehensive insurance coverage, cannabis entrepreneurs gain invaluable peace of mind and the ability to navigate the industry confidently. As you embark on your journey in the dynamic cannabis sector, choose a reputable cannabis insurance broker who understands the intricacies of the industry and can offer tailored solutions to safeguard your business interests.
Remember, mastering inspections and harnessing the power of comprehensive cannabis insurance will be your business’s most potent shield in an ever-changing and promising landscape. Embrace the future of the cannabis industry with confidence, knowing that your venture is secured and protected every step of the way.
You joined NCIA, explored the platform, now what? Time to add your co-workers to the company account!
There are two ways to add employees to your company account.
The company account manager (or primary contact) can log in to Community Hub, and scroll down to find the green “Company Profile” button next to your company’s name.
Once on the company snapshot page, choose the green “Manage Roster” button.
From there, you can hover above the “Actions” dropdown to choose “Add Individual.” You can either search by your employee’s last name to see if they have a profile already in the system or choose to “Create New Individual.”
Add in the contact information and click submit so your coworkers can take advantage of NCIA benefits as well!
Your employees can create their own profiles as well! Just send them these directions:
First, check to see if you already have an account. If you’re not sure, click “Forgot your password?” to find out.
If you need to create a new account, please follow these steps:
Click “Don’t Have An Account?” Fill-out the required information and click “Create Account” to be logged in and ready to complete your profile.
In order to be recognized as a member, you must affiliate yourself to your company. Find the “My Company’s Profile” on the left sidebar menu and click the “My Affiliation” button. Enter your company’s name with current membership in the “Account Name” field. (You can also enter the website associated with your business to help narrow the search!)
After clicking search, select the “Add Affiliation” button adjacent to your corresponding member business, and click “OK”.
Now you are ready to take advantage of your member benefits!
Member Blog: Wine is the Mentor Cannabis Needs – How The Industry Can Mimic Vino to Find Global Success
by Andrew Kaye, Sweet Leaf Madison Capital
Picking up an eighth of Blue Dream right next to where you buy a bottle of merlot used to mean meeting your dealer in the parking lot behind the liquor store, but now it’s as simple as going to the shop next door. The widespread legalization of recreational cannabis over the last 10 years in the United States and abroad has led to a rollercoaster ride of gains and losses for the industry, but the future is still looking as green as ever. Nevertheless, there’s still a lot to learn, specifically from other industries like wine, who continue to rake in billions of dollars each year.
Given that wine has a few thousand years on cannabis as a commodity, cannabis has an opportunity to make up for lost time over the next decade. Due in part to more countries either loosening laws and restrictions or legalizing cannabis all together, the global market will start to see significant growth as international demand increases. In the years to come, cannabis companies will not only have opportunities to expand notoriety and increase demand, but regional terroirs could hold the same esteem as wine-lovers’ favor bottles from Burgundy or Tuscany.
New Players, Same Game
Nearly 30 countries have either decriminalized possession or made cannabis medically legal, with others like Canada, Uruguay, and Malta legalizing recreational cannabis. Germany and Luxembourg are also following suit
Each change leads to a new open market, with new economic opportunities. If we take a look at how the wine industry evolved from 1990 to present day, countries like Bulgaria, Germany, Portugal and Moldova were amongst the top 10 exporters in the world, behind the big three, Italy, France, and Spain. But where there is growth, there is contraction, and in those 30 years, contenders such as Australia, New Zealand and Chile have seen massive growth and recognition for their wines and are now able to go head-to-head with the big three, while Bulgaria and Moldova do not crack the top ten today.
The same is true for cannabis. As Germany moves toward legalization, which is predicted for 2024, it must figure out how to create supply for the country’s increasing demand. For years the Germans have been importing Canadian cannabis for medical use, accounting for 38% of its cannabis imports since 2017 – bringing in nearly 12 tons of flower and extracts in the first six months of 2022 alone. So what is good news to a potentially burgeoning European market, is good news for Canada – at least for the time being. The most recent proposal out of Berlin seems to exclude imports in the future and instead lays out plans to cultivate and distribute all within its own borders. Therefore, companies like Aurora Cannabis have just under two years to get the most out of their relationship before it is time to split up and move on.
On the other hand, we see companies seizing opportunities to expand into the global market. For example, Cookies, a California-based cannabis retailer and product brand, has recently opened a recreational dispensary in Bangkok, Thailand. This is just months after the country moved to legalize cannabis and establishes Cookies’ fourth international store – they also have three medicinal locations in Israel.
Endless Possibilities
This is only the beginning. Global legal cannabis is still in its early days, and diversification of the market is going to be the future. We are going to start seeing countries promote both domestic consumption alongside international export to take advantage of opportunities abroad, while, much like wine, region-specific strains could become popular as cloning, hybridization and other advancements are finding their way into growing operations. Ultimately, specialized strains will become a cherished commodity amongst global cannabis aficionados. Boosting cannabis tourism, much like what we see in Amsterdam or Humboldt County, across the world.
As the industry grows, it will be important for businesses and brands to pull inspiration from those who paved the way, and wine seems to be the best place to start. Learning how to boost recognition to increase global demand will be essential, and big corporations will find this easier than small businesses, but that does not mean growth opportunities will dry up for those small players. Specialization and quality products will shine in a global market as well.
So, drink up, light up, and renew your passport. Cannabis, like wine, is circling the globe!
Andrew Kaye has been involved in all aspects of the financial services industry, as a fund portfolio investment manager, investment banker, family office investor and attorney. He has worked with start-ups on their first raise through global enterprises undertaking billion-dollar stock offerings, and has significant investment experience in the cannabis industry. Currently, Andrew works as Sweet Leaf Madison Capital’s Chief Commercial Officer. Lending his expertise toward the creation of middle market financing solutions for real estate and equipment financing needs in the cannabis space.”
“Sweet Leaf Madison Capital provides non-dilutive, asset-based lending solutions to the underserved middle market of the cannabis industry by originating real estate loans, equipment financing, securitized term loans, and more for entrepreneurs and businesses. The company is based in Denver, Colorado and has offices in New York City and West Palm Beach, Florida. To learn more or complete a loan application, visit Sweet Leaf Madison Capital online, or continue the conversation on LinkedIn, Twitter and Facebook.”
Andrew J. Kaye is Chief Commercial Officer of Sweet Leaf Madison Capital. He can be reached at akaye@sweetleafmadison.com.
Member Blog: Mutualistic Relationships in Cannabis – The Benefits of Coexistence
When it comes to growing healthy plants, it’s easy to focus on avoiding pests, diseases, and other harmful intruders that can wreak havoc on our crops. However, not all microorganisms are bad for our cultures. In fact, some microorganisms can actually benefit our plants in a big way, providing protection, enhancing nutrient uptake, and even increasing resistance to stress and adverse conditions. These microorganisms are called biostimulants, and the relationships they form with plants are known as mutualism.
But, what is mutualism?
All plants host communities of microorganisms that cause no harm to them, in fact, they benefit them. This relationship between one organism and another, where both seem to benefit from their coexistence, is called mutualism. Cannabis plants are no exception; they also create mutualistic relationships with other organisms. In this case, mutualism occurs between microorganisms like bacteria or fungi (or both) and cannabis plants, who lend their tissues to these organisms to inhabit and receive food. In return, microorganisms provide the plant with different benefits like phytohormone supplies, secondary metabolites, and enzyme production stimulation. They also help in the solubilization of minerals and the absorption of nutrients.
One of the most interesting things about mutualistic relationships in cannabis is that they occur all over the plant, but different microorganisms tend to prefer different parts of the plant. Endophyte organisms that live inside the plant can be found in the roots, stems, petioles, seeds, and buds of cannabis plants. Most plants host both bacteria and fungi, but studies show that stems host fungi exclusively. The bacteria and fungi that inhabit the roots are the most popular and are known as mycorrhizas and rhizobacteria. These are organic compounds that promote growth in plants and are mostly used as biostimulants in many cultures.
One of the most significant benefits of mutualism between microorganisms and cannabis is the production of secondary metabolites like CBD and THC. Four specific bacteria taxa, including Comamonas testosteroni, Citrobacter freundii, Enterobacter cloacae, and Pseudomonas putida, have been shown to enhance cannabis plant growth and secondary metabolite production. Evidence suggests that a combination of these four species of bacteria acts as a biostimulant.
Pseudomonas bacterial strains, in particular, benefit cannabis plants by producing diffusible antibiotics that act as pathogen biocontrollers. Bacillus strains also act as a defense barrier against pathogens by preventing them from generating resistance to secondary compounds that plants produce to eliminate them
In addition to bacteria, fungi that live in the roots, called mycorrhizae, help improve water and nutrient absorption in plants and stimulate crop growth by providing bioactive substances. Endophytic cannabis fungi of the genera Paecilomyces, Penicillium, Pantoea, and Trichothecium produce bioactive substances that act as fungicides, especially against the fungus Fusarium oxysporum. These substances not only promise to be a solution to serious problems in cannabis plants as biological control agents against aggressive pathogens but also a sustainable resource and a substitute for chemopesticides on the market. Using them reduces traces of pesticides in cannabis flowers and allows growers to adapt to government regulatory policies that have zero tolerance against pesticides.
So how can we encourage these mutualistic relationships to occur in our plants?
The mutualistic relationships between microorganisms and plants occur naturally without any type of artificial additive, depending on the environmental conditions, the cultivation area, the pH and salinity of the soil, and other characteristics. Some may exist naturally in the substrate or be accidentally transmitted in many ways.
However, cannabis growers can use various methods to introduce these microorganisms into their crops, either on the substrate or directly on the plant. Commercially, some companies sell products with inoculums that contain some strains of fungi and bacteria that encourage plant growth and help protect them from pathogens.
Other ways to acquire these strains are through organic matter such as compost, which is rich in sugars bacteria. Also, older compost that has grown moldy over time can contain beneficial fungal strains for cannabis plants.
In conclusion, mutualism is a beneficial relationship between microorganisms and cannabis plants that can improve crop growth, protect plants from pathogens, and reduce the need for pesticides. By understanding these relationships and encouraging them, growers can promote healthier cannabis plants and contribute to a more sustainable and eco-friendly cultivation process.
About MyFloraDNA: We are a genomic laboratory based in Woodland California, delivering modern genomics for the Cannabis Industry. \
Our services include Trait detection (cannabinoid profile and sex/gender ID), Pathogen Detection, and Genetic Validation Services. We offer breakthrough solutions using the inner power of your plants.
Angel Fernandez, author. CEO & Co-Founder at MyFloraDNA. Member of the NCIA’s Scientific Advisory Committee. “It is time to fill in the gap between DNA Sciences and Agriculture. MyFloraDNA is willing to show the huge opportunities that exist for modern genetics in agriculture. Now, it is time for another agricultural revolution”.
Joselyn Guadamuz, co-author. Scientific Researcher and Content Writer at MyFloraDNA.
Maria de Catarina, editor. Public Relations Specialist at MyFloraDNA.
Equity Member Spotlight: Checking in on NCIA’s Equity Scholarship Program
by Mike Lomuto, NCIA’s DEI Manager
Three years after the launch of NCIA’s DEI program, we are growing and going stronger than ever. One of last year’s highlights was our DEI delegation that took part in our 10th Annual Cannabis Industry Lobby Days in Washington, D.C., a story we told in this blog, along with many other great and important stories. Now, we are checking back in with a few members to hear about their current progress.
Why has being a member of NCIA been important to you personally?
Anthony Jenkins, Next Level, CEO:
Cannabis is an amazing plant, and I’m passionate about what it can do. NCIA’s members share that passion, which shows in their advocacy for themselves and the plant.
Michael Diaz-Rivera, Better Days Delivery, Owner/Operator:
I was a 5th-grade teacher before starting this business. Being a member of NCIA has allowed me to network with a diverse set of owners across the business spectrum, whether they are social equity operators, and/or novices like me, or established in the cannabis space for years. NCIA has helped springboard me into spaces where growth is guaranteed!
Helen Gomez Andrews, Co-Founder & CEO, The High End:
Building strong business networks is incredibly important in the cannabis industry – and of course, so is advocacy. With this industry and through communities like NCIA, we have an opportunity to reimagine and restructure how business gets done, what board rooms look like, how workers are treated, how to better respect our environment. Being a member has not only helped me strengthen those networks and provided new business opportunities, but it has provided me more channels towards the advocacy that is meaningful to me and my business’ core values.
Why is the Equity Scholarship Program at NCIA important?
Anthony Jenkins:
It is EXTREMELY important because most new entrepreneurs don’t have the money to “test” if a program is going to be beneficial for them. The scholarship gives future cannabis business owners a chance to see the true value that comes with being a member, and once they do, they will continue their membership.
Michael Diaz-Rivera:
Coming from a low-income background and already investing my limited savings 100% into my business, I wouldn’t have been able to participate in NCIA without the scholarship. Not being hindered by my lack of financial resources helped build my confidence in the industry.
Helen Gomez Andrews:
As the founder of a start-up in a regulatory and capital environment with tremendous constraints, the Equity Scholarship Program got me in the door at NCIA, where I otherwise wouldn’t have joined due to the standard price tag. I’ve had a chance to share in, and contribute to, the many different avenues of participation that NCIA offers, make a proper assessment of its impact and properly decide whether or not it makes sense to continue as a member beyond the scholarship period.
What has been your biggest highlight of being an NCIA member?
Anthony Jenkins:
My biggest highlight of being an NCIA member was attending the NCIA’s San Francisco conference in 2021. It was an amazing experience, and we had the opportunity to have a booth, hosted by the awesome team at The People’s Dispensary.
Michael Diaz-Rivera:
My biggest highlight has to be our weekly power hours. Whether learning from industry leaders or having real unapologetic conversations with other emerging business owners, I am walking away from these meetings with priceless jewels of wisdom.
Helen Gomez Andrews:
There are so many! But bringing my kids down to Washington, D.C. for Lobby Days in 2022 was such a highlight. My daughter, who has been a cannabis patient since she was 6 years old, watched as I took a team photo in front of the United States Capitol with a group of people that came together to fight not just for SAFE Banking, but for the federal legalization of a medicine that she uses daily – fighting for her rights and kids just like her – is a moment that our family will never forget.
Have you noticed a shift in Diversity, Equity, and Inclusion at the NCIA since you joined, and if so can you elaborate?
Michael Diaz-Rivera:
I don’t know if I’ve been in NCIA long enough to notice a shift in DEI, but I can say that it isn’t hard for me to find a BIPOC leader within NCIA who shares experiences similar to mine. That has made this a motivating and pleasurable experience.
Helen Gomez Andrews:
I haven’t been a member long enough to notice a shift, but the diversity of the community was noticeable and very appreciated from the onset, and it’s very tangibly not just a talking point.
What is on the horizon for your business in 2023?
Next Level Edibles
Anthony Jenkins:
Next Level has some great things on the horizon. We entered into a partnership with a team in Southern California that will help us increase the quality and efficacy of our infused brown sugar. We are growing our partnerships with dispensaries and delivery services throughout California to broaden our footprint. We are relaunching our website. We will be launching new infused ingredients, and partnering with some of our friends in the industry to bring you amazing infused ready-to-eat products.
Michael Diaz-Rivera:
There is much to be anticipated in the near future for Better Days Delivery and that is why we say, “Better Days Are On The Way.” Most immediately I am excited to announce that I am hiring my first delivery driver and adding more vehicles to my fleet. As I aim to be the best cannabis delivery service in Colorado, I am working to establish contracts with dispensaries throughout the state, nurture the stores I currently deliver for (Shoutout to Native Roots and L’Eagle Services), empower my drivers to be their best, all while serving the community!
Helen Gomez Andrews:
At long last, The High End is on track to introduce our clean-extracted and hand-crafted cannabis products to the Massachusetts market, partnering with independent sun-grown and living soil cultivators and processing in our solventless lab. Our indoor living soil gardens are finally in development too and will be ready to go closer to the end of this year.
Additional thoughts?
Michael Diaz-Rivera:
Thank you Tahir Johnson for starting this program and Mike Lomuto for taking it to the next level. Infinite gratitude to all of my fellow business owners that have helped me to get to this point in my business journey! The Marathon Continues! Better Days Are On The Way
Helen Gomez Andrews:
Immense gratitude to Mike Lomuto for understanding each of our goals in business and advocacy, and ensuring we can contribute to issues that matter to us beyond the obvious DEI work. Without question, DEI advocacy is vital, but we amongst the equity scholars have a diversity of other goals as well. In particular, I’d like to thank Mike for championing Sustainability and organizing a group of members from a working group into an influential body within NCIA that has an opportunity to make a meaningful impact.
Member Blog: Advance Cannabis Social Equity this Black History Month
by Chris Jackson Vice Chair, NCIA Board of Directors ForesTree CEO & Michigan Social Equity Advocate
Most anyone watching the cannabis space over the years knows NCIA is a leading industry advocate on the national stage. But what might be lesser known is NCIA’s work to advance diversity and inclusion within the cannabis industry.
For the last three years, our association has maintained a scholarship program providing peer-mentorship services as well as all the standard benefits of an NCIA membership to social equity license holders and applicants throughout the country, free of charge. About 250 social equity members have taken advantage of this program over the last three years, and that was only possible through the financial support of our members and supporters like you.
As we kick off Black History Month, I’m writing with a unique opportunity for you to help elevate the voices of social equity operators in our nation’s halls of power while highlighting your business’s support for diversity in cannabis.
This coming May 16-18, NCIA will be hosting our 11th Annual Cannabis Industry Lobby Days in Washington, D.C. which is the best opportunity for industry professionals to advocate and tell their stories to the policymakers who have the power to make or break our industry.
It’s vitally important that members of Congress and Capitol Hill staffers have the opportunity to meet with social equity operators to learn about our unique challenges but many of them cannot afford to travel to Washington without some financial assistance.
That’s where you come in. NCIA offers a variety of sponsorship packages that make this important event possible and also help offset travel costs for those in need.
During the month of February, the proceeds of every Lobby Days sponsorship package sold will go toward this social equity scholarship fund to ensure as many voices as possible are included in the industry’s premier advocacy event.
As the vice-chair of the NCIA board, I know our members and supporters care about inclusion and building a better industry, not just a new one. So, I hope you’ll join me in making a modest investment in these goals by securing a sponsorship today.
Last year, we raised enough money to help six members of our DEI delegation with travel to D.C. and we aim to at least double that number in 2023, with your help. Minority-owned and social equity cannabis professionals all over the country would be grateful for your support and the future of an inclusive federal cannabis policy depends on everyone’s voice being projected.
You can learn more about NCIA’s very affordable sponsorship packages online or just reply for more information. Thank you for your consideration and support for our community.
P.S. I encourage you to catch the latest episode of NCIA’s Minority Report Podcast covering the issues and people on the front lines of the cannabis social equity movement and where I am a regular guest. Be sure to subscribe here or wherever you listen to podcasts.
Member Blog: Dude, Where’s My Payments?
by Gary Strahle,
Cannabis industry merchant service providers get shut down. How has this impacted retailers and at what cost? Learn how operators are mitigating theft and working with the National Cannabis Industry Association to drive legislation.
In order to best understand what payment methods will suit you best, you must first understand the inherit risks that are associated.
Let’s put it bluntly; there is no such thing as a federally compliant payment in cannabis, not even cash. Given states have legalized the sale of medical adult-use cannabis, it is still very confusing and in some cases crippling when choosing your method of payments.
Cash is king.
Because federal banks legally can not do business with the cannabis industry, retailers have limited options for securing their resources. This makes dispensaries targets for theft. Criminals are coming after both product and cash which requires operators to make heavy investments in security systems. These include state-of-the-art video surveillance, 24/7 on-site security, steel doors, bulletproof glass, expensive safes, terrible insurance policies, and a lot of trips to your favorite credit union. State-chartered credit unions are the only banks accepting cash from cannabis businesses.
Although cash comes with some inherit benefits, coins don’t. Coin change is a big problem for retailers as there has been a national coin shortage. What are you supposed to do when your angry customer is complaining over the 75 cents you can’t return to them? Do you give them customer credit? Do you make an adjustment or a discount? Do you request your POS provider to create a “round up” feature that brings every cash-related transaction up to the nearest dollar?
Benefit:Tax Exposure.
Risk: Tax Exposure, Theft, Time, Money
So what about Cashless ATM?
A cashless ATM is where customers break out their debit card at the register to pay for their retail purchase. Just like any other ATM, you are drawing against an even $10 or $20 amount from your bank account. So if your purchase was for $17, a budtender would hand you back $3 cash in change for your purchase.
While there has been mixed results with cashless ATM’s there was a crackdown made by Visa and Mastercard to shutdown these types of transactions on their network. A significant number of retailers lost their capability to process all of a sudden and had to revert to cash-only payments. While a good chunk of the high risk payment providers were shut down, others continued processing without service interruption for reasons I will explain later.
Although cashless ATM payments can mitigate some of the risks involved with cash on hand, they are subjected to a number of costs that can factor into your daily management and or customer experience. First, if your payment terminals are not integrated with your retail POS, good luck reconciling your money at the end of the day. Budtenders will frequently miscode payments on the POS and assign card payments to cash transactions or vice versa. This makes it extremely tedious to reconcile your books. On the other hand, everyone hates ATM fees. Our colleagues have witnessed fees as high as $25 in places like Las Vegas. Typically you will see most cashless ATM fees between $3-3.50, however, it is common to see them even higher.
Benefit: Processed as an ATM transaction(not a Cannabis Transaction) Settlements are deposited directly into the bank.
Risk: Added fees to customer.
What is different about Pin Debit?
Pin debit allows charges to the penny. This is a cool way to allow customers to pay with their debit card without having to pay the ATM fees. It is relatively new and still unclear if these processors will get away with miscoding their RCC. If you looked at the customers bank statement you would see the charge from your dispensary just like a cashless ATM however the way it got there is much different. Processors are telling networks and banks that these are “pharmacy” transactions. When a customer calls the bank and discusses your transaction at a cannabis dispensary it would seem like things could start going down hill quick for both the payment provider and the merchant (dispensary). With all risk considered it remains as an option for many to process their payments. In conclusion what I’m about to share about credit payments would make you consider pin debit twice.
Benefit:To the penny charges, no ATM fees.
Risk:Miscoded RCC, Merchant Service Shut Down.
How about plain debit or credit?
Don’t do it. This from personal experience has impacted my life. A close family friend was indicted and served time in jail for fraudulently processing credit card payments for delivery giant Eaze. This was a get-rich-quick scheme that broke friendships, businesses, families, and a healthy portion of the retail cannabis industry. Just like pin debit, credit charges are miscoded but in this case purchases were being identified as “dog treats” or “flowers.” The charges would not show up on the customer bank statement as a purchase from a dispensary. Understanding the high risks associated with processing cards in such a way is explicitly fraudulent and has the highest likelihood of involving some form of trouble .
Benefit:Massive increase in Sales.
Risk:Non-payment, Chargebacks, Miscoded RCC, Merchant Service Shut Down.
In summary.
If you or your business are looking to service card payments for your customers, choose your options wisely. In my own personal opinion, you face the least amount of risk using an integrated cashless ATM solution, however if the customer is demanding a more traditional debit experience then it could be worth running a cost/benefit analysis.
The bottom line is that those who have the most dynamic and redundant integrated card payment solution will be the most continuous while mitigating the risks of cash. The payment providers getting shut down do not have redundancy in their network providers or payment methods and therefore non sustainable.
Some payment providers will eat the time in jail and or fines as they are or were able to make a significant amount of money greater than the cost of the punishment.
Until we can successfully make legislative changes being pushed forward by NCIA, those who care about making change should donate to their cause and participate in NCIA’s 11th Annual Cannabis Industry Lobby Days in 2023.
Author: Gary Strahle is a Technical Architect with over a decade worth of operational cannabis industry experience. 2023 NCIA Retail Committee Chairman. Avid surfer and golfer with a passion to help others.
Cannabis Cloud – Applications, Consulting & Payments. Founded in 2015, providing service to over 2,500 cannabis businesses. Specialized as a Salesforce Partner innovating industry standard solutions from seed to sale, Cannabis Cloud’s payments integrated Retail Point of Sale hosts a robust api for connecting Metrc as well as external menus such as Weedmaps or Leafly.
NCIA Board of Directors Results – 2023-2025 Term
National Cannabis Industry Association’s nominating committee has completed the association’s annual board of directors election and six candidates have been elected to serve on the board for the 2023-2025 term.
Congratulations to the winners, and thank you to all of the candidates for their commitment to NCIA!
“I am honored to have the opportunity to serve on the NCIA board of directors and to work alongside some of the most inspirational cannabis advocates in the industry. NCIA and its leadership have worked tirelessly for years to advance legalization and create an equitable, just, and inclusive cannabis community. I look forward to working closely with my fellow board members to help both NCIA and the cannabis industry pave an even more successful path forward.”
“I am deeply honored to be on the Board of Directors for the NCIA. It has been an incredible experience being a member for the past 5 years and to see comprehensive reform inch closer and closer with the relentless efforts of the NCIA team and other advocates/organizations. I am truly hoping that in working together with the industry, we will be able to see the descheduling of cannabis within the next few years. I vow to represent small businesses and want to ensure we have a significant place in the industry at the National level. Working with the rest of the board representing all aspects of the cannabis industry, I am hoping that we can see change happen! We’ve been through so much. Let’s do this!”
The new board members-elect will join the NCIA executive director and the 12 other elected members at the next board meeting.
Members can contact us any time for more information about the board election results or the election process.
If your business is not yet a part of the movement, please join NCIA today.
NCIA Committees: Now Accepting Applications For The 2023 Term!
If you want to take your industry involvement to the next level, now is the time to get involved with one of NCIA’s 14 member-driven committees! NCIA is excited to announce that from now until November 11, we are accepting applications for the 2023 term!
APPLICATION EXTENSION INFORMATION:
Committee applications for the 2023 committee term HAS BEEN EXTENDED and is now openthrough November 25th, 2022! All NCIA members are encouraged to apply! *Due to overwhelming interest we can not guarantee a committee assignment.
All NCIA annual members in good standing are invited to apply for an NCIA committee seat for the 2023 committee term.
NCIA Committees enable current NCIA members to engage their vast and varied areas of expertise and passion to:
Effect change and influence public opinion and policy;
Enhance leadership skills;
Expand professional and personal network; and
Develop best practices and guidelines to shape the future of our industry.
Cannabis industry companies face more and sometimes greater threats than non-cannabis companies because of the emerging nature of the market, a complex regulatory landscape, and investor relations.
Because of the challenging landscape, cannabis organizations have some unique risks they may face while running their businesses including:
High investor expectations and limited access to capital
The federal status of cannabis
Varying trade practices from state to state
Lack of bankruptcy protections
Increased merger & acquisition activity
State-by-state licensing requirements
Cannabis-specific local, state, and federal tax laws
Private companies in the cannabis market face threats from many directions, business leaders need to protect their assets and be able to attract top potential directors and officers to their company. The increased exposure to litigation includes disputes such as shareholder disagreement, allegations of mismanagement, and actions by regulatory agencies. Lawsuits can be levied against a cannabis company’s directors and officers and create risk for these individuals and the cannabis company. One way to help mitigate the risk of future losses is by getting Directors & Officers (D&O) insurance.
Directors & Officers Liability Insurance, or D&O, is a coverage designed to protect an organization and its directors and officers from being held financially responsible for legal action taken by an organization’s employees, vendors, customers, or shareholders. D&O insurance primarily covers the costs associated with an allegation and wrongful lawsuits including defense costs, legal fees, and settlements. D&O insurance does not cover illegal acts.
What is generally covered with D&O Insurance?
Coverage varies, but typically D&O policies encompass three main insuring agreements: Side A, Side B, and Side C. The structure of a policy depends on which of these three insuring agreements are included. Each insurance agreement can specify a distinct insured party.
Side A
When indemnification is either barred by law or an organization is insolvent and unable to indemnify, the individual director and/or officer can be at risk and responsible for losses. Side A offers protection for an individual’s personal assets in case of a non-indemnifiable loss.
This offers an extra layer of protection if a company is unable to pay for losses in cases like bankruptcy or regulatory investigations.
Side B
Side B provides reimbursement for the defense of a corporation for expenses incurred while defending its organization’s directors and officers. This protects a company’s corporate assets.
Side C
Side C, also known as entity coverage, protects a corporation’s interests if a corporation is named in a suit alongside directors and officers. This coverage provides entity asset protection for legal fees, settlements, or other related costs for covered claims, subject to a policy’s terms and conditions. Side C has a broader implication for private and non-profit companies, as Side C typically only protects public companies from securities claims.
When should you have conversations with your broker?
Buying the correct insurance coverage can be a confusing undertaking for Cannabis business owners. Insurance Agents/Brokers are critical in helping their clients navigate this process and serve as trusted advisors to find the best fit for their client’s businesses. This article aims to demonstrate the differences between admitted and non-admitted policies and their implication for your Cannabis clients.
Running a cannabis company can be challenging and often requires leveraging an insurance broker that understands the cannabis industry. Some questions to help decide when to have conversations about Directors’ & Officer’s coverage include:
Are you planning on taking on new investors during the next 12 months? As you take on investors, it increases your risk profile as shareholders can sue on their own behalf or in the name of the corporation. These suits may allege a breach of a director’s or officer’s fiduciary duties of care and loyalty to the company. This type of litigation can result in issues of conflict between the shareholders, the company, and the individual director and officer defendants.
Are you hoping to hire an executive or team of executives within the next 6-12 months? As the cannabis market begins to expand, cannabis companies are looking to attract top talent and at the executive level, D&O coverage is an advantage to many candidates.
What is an example of a recent lawsuit within the cannabis industry?
Private companies in the cannabis market face threats from many directions. Business leaders need to help protect their assets and be able to attract top potential directors and officers to their company. Below is a recent example of a lawsuit from the Cannabis industry:
PH Invesco LLC v. Pure Harvest Corporate Group Inc et al., case number 1:22-cv-00094, in the U.S. District Court for the District of Wyoming. Colorado-based cannabis farm Pure Harvest Corporate Group Inc. was hit with a suit by a lender that claims the farm and its CEO breached the terms of a $4,000,000 line of credit it took out. (2022)
This information is provided for general informational purposes only and is not intended to provide individualized business, insurance, or legal advice. All descriptions, summaries, or highlights of coverage are for general informational purposes only and do not amend, alter or modify the actual terms or conditions of any insurance policy. Coverage is governed only by the terms and conditions of the relevant policy.
Jon Spratt leads Greensite Insurance, a specialty MGU providing boutique insurance coverage to the rapidly expanding Cannabis industry. Greensite launched in 2021 and is partnering with agents/brokers to help better protect their clients. Jon also runs a business accelerator that develops and launches new programs on behalf of Aon programs.
Greensite Insurance Services is the brand name for the brokerage and program administration operations of Affinity Insurance Services, Inc. a licensed producer in all states (TX 13695); (AR 100106022); in CA & MN, AIS Affinity Insurance Agency, Inc. (CA 0795465); in OK, AIS Affinity Insurance Services Inc.; in CA, Aon Affinity Insurance Services, Inc., (CA 0G94493), Aon Direct Insurance Administrators and Berkely Insurance Agency and in NY, AIS Affinity Insurance Agency
Service Solutions | 9.27.22 | The Devil is in the Details: Claiming Your Employee Retention Credit as a Cannabis Business
NCIA’s Service Solutions series is our sponsored content webinar program which allows business owners the opportunity to learn more about premier products, services and industry solutions directly from our network of established suppliers, providers and thought leaders.
In this edition originally aired on Tuesday, September 27, 2022 we were joined by the experts from ERT Credit for an exclusive webinar outlining how cannabis businesses can take advantage of The Employee Tax Credit (or ERC) which has currently only been claimed by a small fraction of cannabis businesses, and most importantly, as a payroll tax credit is not subject to Section 280E.
Think your cannabis-related business does not qualify for COVID-19 relief funds worth up to $26,000 per employee.? You’ll leave the session with a roadmap for next steps to determine eligibility and maximize your claim so you don’t miss out on a potentially guaranteed refund worth hundreds of thousands of dollars and in some cases millions.
At the conclusion of the discussion our panel hosted a moderated Q&A session to provide NCIA members an opportunity to interact with leading minds from the cannabis accounting and technology space, join today to contribute to future conversations!
40:46 – Audience Q&A (If your business is still operating – what are the taxes due on the tax credit?)
42:04 – Audience Q&A (I was told that ERC money is not available for the cannabis industry due to 280e. How are you navigating that compared to others trying to provide the same services?)
44:31 – Audience Q&A (Does this apply to cultivation facilities also?)
46:42 – Audience Q&A (What if we apply and don’t receive our money or we are denied the credit?)
48:09 – Audience Q&A (What if my accountant/lawyer says I don’t qualify?)
49:41 – Audience Q&A (How can I find more details on how to navigate the 280e concerns?)
50:58 – Audience Q&A (So if you went out of business before or soon after getting the tax credit you would not have any (or minimal) tax impact from taking the tax credit?)
53:24 – Audience Q&A (Do I have to spend the money on my payroll? Or can I use it towards my other business expenses? Any other restrictions?) 54:26 – Audience Q&A (So is this a credit for my company towards next year or do I get an actual check like a refund?)
01:05:28 – NCIA Lobby Days 2023 Member Appreciation
Sponsored By:
NCIA Accepting Applications For 2023-2025 Board of Directors Term
NCIA has extended the application deadline for members seeking to apply for a seat on our board of directors. We are now accepting applications for eligible candidates to apply for the board through Friday, November 25, 2022.
The National Cannabis Industry Association is a nonprofit organization run for and by its membership, so we hope you’ll consider this opportunity to apply for a seat on the NCIA Board.
Serving on NCIA’s Board of Directors is no small task. Board members are responsible for overseeing the strategic direction of the largest and most influential cannabis industry organization in the country. Board Members are also responsible for building membership, fundraising, and ensuring that NCIA continues to be the strongest force advocating for the fair and equal treatment of the industry on Capitol Hill.
Current NCIA members in good standing are eligible to apply for a seat on the board. NCIA members who are interested and qualified to serve on our board are encouraged to submit an application for review by our nominating committee before the November 25 deadline.
Candidates may apply directly for a board position during the open application process. The application form asks for information about the candidate’s professional background, unique talents, skills, and viewpoints, and ability to contribute or raise financial resources for NCIA. Candidates must be fiduciaries of a NCIA member-business
Who Qualifies To Run For A Board Position?
To be considered for a seat on the board, a candidate must be a fiduciary (e.g. owner, president, CEO) of a current member business at any level of membership or must be a representative of the business that has been appointed to serve by a fiduciary. Candidates must submit an application online by November 25.
What Are The Requirements For An NCIA Board Member?
Board members serve two-year terms and are responsible for overseeing the association’s overall strategy and budget, assist in the development of strategic relationships, and as ambassadors of NCIA, they represent more than 1,000 member businesses. In general, the NCIA board meets in person twice and conducts 2-3 video conferences per year.
How Are The Board Positions Selected?
Once the application period closes, NCIA’s Nominations Committee will convene to carefully review and score all applications. The committee will ultimately select a slate of nominees to fill six (6) available board seats that are best suited to bring additional talent, resources, and diversity to our growing organization, based on their qualifications.
Our Nominating Committee will be comprised of the chairs of our 14 member committees as well as a select number of current board members whose terms are not expiring this year. Once the Nominating Committee selects the slate of six, members will be notified at the end of this year.
Last week, 100 NCIA members traveled to our nation’s capital to execute more than 100 Hill meetings in one day. We mingled with members of Congress, lobbied legislative staff, and rendezvoused at some fabulous receptions. Keep scrolling for some photos and highlights, and see why you don’t want to miss our 11th Annual Lobby Days in May 2023!
Many thanks to everyone who participated and made the event possible, including our sponsors and DEI Scholarship attendees.
Pre-event:
Planning and executing a fly-in is no small feat – especially with COVID restrictions! NCIA’s government relations team, Michael Correia, Michelle Rutter Friberg, and Maddy Grant worked diligently to ensure that our members had a number of impactful meetings. We prepped NCIA members with virtual training and connected lobbying teams ahead of time.
Welcome Reception:
After touching down, our attendees met at Player’s Club D.C. for a night of games, networking, and celebration! NCIA awarded Congressman Ed Perlmutter (D-CO) the Lifetime Legislator Achievement Award for his tireless work and advocacy on behalf of the cannabis industry, and in particular, his work on the SAFE Banking Act. Rep. Perlmutter is retiring so we were thrilled to be able to chat with him and celebrate the progress this topic has made.
Group Photo:
Attendees gathered in the morning at the Peace Circle to connect with fellow teammates and to pose for our annual “class photo!”
Hill Meetings:
Over the course of six hours, we were able to execute more than 100 congressional meetings! That includes priority Senate offices, committees of jurisdiction, and House offices.
Press Conference:
NCIA attendees, the media, and members of Congress gathered at the “Senate Swamp” (yes, seriously!) for a press conference on passing the SAFE Banking Act. Lead sponsor Sen. Jeff Merkley (D-OR) spoke on the need for reform, while his Republican counterpart Sen. Steve Daines (R-MT) sent a quote due to scheduling conflicts. Rep. Ed Perlmutter (D-CO) also joined us again to call on the Senate to pass SAFE.
Closing Reception:
After an incredibly productive day, NCIA members were joined by Rep. Earl Blumenauer (D-OR) and Rep. Nancy Mace (R-SC) for a reception just steps from Capitol Hill. Their message was clear: cannabis is a winning issue for both parties!
Committee Blog: The Importance of Feasibility Due Diligence Prior to Purchase of a Cannabis Facility
by Kathleen May, Sonny Antonio, Casey Rivero, David Vaillencourt NCIA’s Facilities Design Committee
In our previous blogs, the Facility Design Committee authors emphasized the importance ofdefining facility layout and design components during the planning phase of facility purchase, infrastructure, and operational flow of processes and materials. This blog dives further into the often overlooked variables that we have seen significantly impact operational timelines, and in some cases send business owners back to the drawing board at considerable cost. These critical areas are the capacity of your utilities – specifically a) Electrical Facilities, b) Gas Facilities, and c) Phone and Cable.
ELECTRIC FACILITIES
Do you know how much power your operation will require and whether the facility and utilities are capable of supporting your requirement? Facilities should be designed to meet the electrical demands of equipment operation, lighting, and accurate functionality of HVAC systems. Processes and procedures should be designed according to the requirements outlined in the National Electrical Code (NEC), Institute of Electrical and Electronics Engineers (IEEE), National Electrical Safety Code (NESC), International Building Code (IBC), International Energy Conservation Code (IECC), and any other relevant standards dictated by the Authority Having Jurisdiction (AHJ).
Key questions to ask:
Is the electric capacity adequate to support the operations planned in the facility?
Is primary (main) and secondary (meter) power installed?
Is there three (3) phase power?
If three (3) phase is required, is it available?
If it is not available, has the cost to supply the facility with three (3) phase been budgeted for?
Power Company Capacity
Does the local power company have the capacity to support the facility? Has there been discussion with the local power company to communicate capacity needs?
If the capacity is not supported, is there an opportunity that it will be?
Why does this matter?
Cannabis operations, especially growing plants require a significant amount of electrical capacity and existing buildings were rarely designed to handle these requirements. Further, just because you see power lines nearby, this does not mean that they can magically handle whatever power requirements you need. Our national power grid has many limitations, and depending on the jurisdiction and local power authority may not have the resources to meet your needs.
What can I do?
If you aren’t absolutely certain that you have sufficient power capacity, assess the proposed location with a Subject Matter Expert (SME) and a representative from the local Power Company.
Walking the site to confirm what has been verbally communicated is critical. Discrepancies are not uncommon.
GAS FACILITIES
The same types of questions that were asked for the Electrical Facilities should be asked when confirming gas facilities and capabilities. Key questions may include:
Is the existing gas service adequate for the operations planned for the facility? Just like with electrical power – confirming the presence of a gas meter does not guarantee that the gas capacity is adequate for the operation.
If upgrades are required or if a new gas line needs to be installed, have those costs been budgeted for?
Again, hiring a consultant with subject matter expertise in gas utilities, gas lines, and gas pressure would be beneficial when speaking with the local gas company.
PHONE and CABLE
While many across the country have ditched landlines in favor of cell phones, the same is far from true for new businesses, especially with the security requirements needed for a cannabis facility.
Are phone and cable required for the operation? If so, some key questions to consider are the following:
What size and speed are required to support specific needs (i.e., security)?
Is the existing wirelarge enough for my needs? If not, is it possible to get phone and cable to the site?
Is satellite an option if phone and cable are unavailable?
Have all costs been budgeted for?
Especially in rural or newly designated economic improvement zones, high-speed internet access may be limited. Service Level Agreements (SLAs) provide the assurance of minimum uptimes. A car crash into a nearby service line or other technical glitches can quickly put you out of compliance with 24/7 camera monitoring requirements, intrusion detection systems, and more. In many cases, it’s wise to consider redundancy from secondary providers where available.
In Conclusion…
Every site and facility is different and may or may not be sufficient for the overall operations planned. Site and facility capabilities should be assessed for each project and assumptions should not be made based on previous experience. Ask the critical questions upfront and invest in experts that understand these key components of facility layout and design. Proper planning will avoid project setbacks and unexpected obstacles, and will always save time and money.
The Facilities Design Committee focuses on providing NCIA members and regulators a framework and information about facilities design options through which legal producers can plan for GMP level production as the market transitions from a state to a federally regulated industry.
Committee Insights | 8.23.22 | Changing the Game for Women in Cannabis
In this edition of our NCIA Committee Insights series originally aired on Tuesday, August 23, 2022 members of NCIA’s Retail Committee convened an all-star panel of leading investors, entrepreneurs and C-Suite executives alongside retail and marketing experts to discuss how the time to “move the needle” for women in cannabis is gone… It’s time to change the game.
Female executive representation in cannabis has shrunk to 22% in 2021 from 36% in 2019 (below the average 30% in mainstream businesses). Learn how to advance women and tap into the single greatest market opportunity for legalization and sales. Tune in now to get actionable solutions to implement today and get your business and our industry back on track.
Learning Objectives:
• Discover the definition of a female-friendly cannabis retail experience
• Get a suite of actionable solutions to increase success and profitability
• Learn the best career paths in cannabis for female candidates
• Learn where male dispensary buyers are missing the mark
• Identify opportunities across the supply chain to attract women
Where are they now? This month, NCIA’s editorial department continues the monthly Member Spotlight series by following up with three of our Social Equity Scholarship Recipients as part of our Diversity, Equity, and Inclusion Program. Participants are gaining first-hand access to regulators in key markets to get insight on the industry, tips for raising capital, and advice on how to access and utilize data to ensure success in their businesses, along with all the other benefits available to NCIA members.
First off, we have rebranded. We are now Cannvas Events. The name change was part of our evolution and maturation as a startup. As we scaled, more resources became available for things like branding. We brought in Greg Hill of Brand Birth to deploy the science of branding and the end result was a new name, new logo, and new understanding of where we were situated in the regulated cannabis ecosystem. The transformation led to the planning and production of our signature Cannabis Event 2.0 offering, the inaugural Saturnalia Canna Carnival, taking place at the Trinity Health Arena in Muskegon, MI on August 2oth. We are powering a traditional indoor/outdoor carnival – rides and attractions included – with a hassle-free, normalizing consumption solution. If you’re in the Midwest, come join us as we celebrate the first year of an iconic, perennial cannabis festival. Tickets and info at cannvasevents.com and follow us @saturnaliacannacarnival
Would you like to share anything that came out of being in the Spotlight previously?
The Spotlight feature presented tremendous value. The first year of the cannabis startup journey is devoid of financial revenue. Unless you’re needle-in-the-haystack lucky, it’s not even a consideration. The money is flowing in the opposite direction. So, the only available revenue, or currency, are the relationships. If you’re fortunate, these become renewable resources upon which you can draw repeatedly, and managed properly, they have no expiration date. You can bank them like any currency and you have much more influence on their stability, than on fiat currency. For me, that one relationship was with Michael Schwamm, who leads the Duane Morris cannabis practice out of New York. Michael opened doors for me and got me into rooms that I was previously unaware existed. That access has made all of the difference for me, personally, and for Cannvas Events. And had it not been for the Spotlight, I would have never been in position to enjoy that access.
Endo Industries
Since the last spotlight, you’ve joined the DEI Committee and its Regulatory Subcommittee. Anything you’d like to share about that experience thus far?
I’m impressed by the brilliant folks on the committee, and their dedication to making cannabis equitable. It takes time out of our grueling work days to contribute time on these committees but the contribution to making the industry better is crucial during these developmental years of cannabis. Perhaps our current misguided, harmful CA cannabis policies could have been prevented with more early participation from stakeholders who are stewards of the plant. However, there were many factors involved with the way CA policies were created, including special interest money from those who don’t care or want to see the industry fail.
It’s been a painful journey living through the consequences of these challenging policies as a cannabis operator. It takes a long time to change once it’s been passed. However, companies who are willing to work together in these important processes will survive and write a new path to move forward. Most of us can’t wait anymore for things to change so we need everyone’s active participation now, whether it’s writing an email to your constituents or being a part of NCIA!
California cannabis seems to be going through terrible challenges. Is there anything you’d like to share about what you’re seeing, or about some of the solutions our members can support with?
Overburdensome taxes and high barriers to entry for licensing throughout the state are most obvious right now. The lack of diversity and equity, consumer education, state and federal funding for further research and development also play a huge role in CA’s struggles. I’m frustrated that the State doesn’t understand that those who have been dedicated to the industry, collaboration and this plant are the only ones who can truly guide this industry forward.
NCIA members can lend support by truly including legacy, equity, and other diverse teams into your conversations and partnerships, and opening our eyes to value brought to the table by different communities. I would also encourage members to think about ways we can create awareness to our consumers to make better buying decisions. We have left all the medical properties of cannabis while legalizing, and that’s also why the industry is failing. Lastly, we need to keep pushing for more consumption lounges and events!
At Endo Industries, we built our company on principles of collaboration, science, equity and inclusion. Most notably, we offer critical supply chain support through our tissue culture services, and certified virus-free clean clones for growers, breeders and brands. If you know good operators who could benefit from our support, please send them our way. I cannot stress enough that the work Endo is doing is crucial for the success of the supply chain right now.
Would you like to share anything that came out of being in the Spotlight previously?
We’ve gotten great exposure for being featured in Spotlight. Endo and myself are more internet searchable, which in this day in age means we are real people!
People started sharing the link to the Spotlight to use as an introduction to Endo and myself as a founder. We’ve been told by clients who decided to work with us because they came across the feature when researching Endo. It solidified their desire to pick us because we are bullish about our values because our business model is strategic and collaborative.
It’s great to be co-signed by a credible organization like NCIA, and it goes a long way for a small business that doesn’t have an abundance of marketing and PR resources. I’ve hid in the shadows for far too long. My journey and passion for cannabis needs to be told and celebrated. Endo as a company needs exposure so we can reach a larger audience. I’m grateful for NCIA and look forward to our continued relationship.
Next Level Edibles
What’s new in the world of Next Level Edibles?
There is a lot new in the world of Next Level since our Equity Spotlight in September of 2021. In December, we had a booth, sponsored by the awesome team at The People’s Ecosystem, in Moscone Center at NCIA San Francisco. It was our first time attending an expo, let alone having a booth, and it was a great opportunity to grow our brand while creating relationships for future business opportunities. In the second week of the new year we launched our 1000 mg full spectrum coconut oil in Ivy Hill Oakland. And, later that month, we were welcomed into the Third Cohort of Momentum, Eaze’s Cannabis Business Accelerator. Two weeks before classes began, in early April, we launched our infused fast-acting brown sugar in 7 Star Holistic Healing Center. And in May, we attended MJ Unpacked NYC with other graduates of Our Academy.
California cannabis seems to be going through terrible challenges. Is there anything you’d like to share about what you’re seeing, or about some of the solutions our members can support with?
California Cannabis is facing challenges on many fronts. Countless unnecessary hurdles to legal entry, political red tape, and excess packaging waste to name a few. But the biggest challenges are around security. Every week there is news of a new dispensary, farm, distributor, and friend being burglarized. High tech security systems, gates, and cameras are no match for organized thieves and slow police responses. Until we can get a portion of our excessive taxes dedicated to funding police divisions that specifically targets cannabis thieves, the best solution to combat this is to support your favorite brands by purchasing their products through legal cannabis retail sources.
Would you like to share anything that came out of being in the Spotlight previously?
Being in the Spotlight helped our company tremendously. It allowed us to grow our cannabis network as plant-touching and ancillary companies reached out from all over the country. In addition, the visibility it provided us helped connect with the team at The People’s Ecosystem which led to our booth at NCIA’s Cannabis Business Summit and our new supply chain partners. It provided the traction we needed to help us get to the next level.
Committee Blog: Announcing The NCIA Best of 420 Clio Cannabis Award
The Clio Cannabis Awards, September 29, 2022 in Las Vegas at the MGM Grand
During the winter of 2021, when vaccines were not yet widely available, and many people were still in lockdown, the NCIA Marketing and Advertising Committee was determined to shine a light on those in our community who were fueling opportunity and growth during a difficult time for many businesses.
MAC Chair Kary Radestock of Hippo Packaging assembled a subcommittee tasked to amplify top member marketing efforts and thus the Best of 420 Award program was born. The 2021 event received dozens of submissions from all over the U.S. across all business sectors and budget sizes and was conducted and presented virtually. See last year’s winners here.
For 2022, NCIA and the Marketing and Advertising Committee are bringing it back and this year, it’s going to hit differently.
Through the guidance of our subcommittee co-chaired by Melinda Adamec of Gabriel Marketing and myself, Tara Coomans of Avaans Media, we’ve also enlisted Michael Kauffman of the Clio Awards, Angela Wong of The People’s Ecosystem, and Vanessa Valdovinos of Hush Chicago to provide support to this year’s process and expand this award.
The winning honoree will be presented live at the 2022 Clio Cannabis Awards to be held on September 29th at the MGM Grand in Las Vegas.
What’s Staying The Same:
NCIA invites all cannabis companies and brands, both B2B and B2C to submit their 420 campaigns—NCIA membership is not required. Budgets of all sizes and companies of all types, B2B and B2C, are encouraged to apply.
It’s still FREE
A jury of NCIA members and peers who will evaluate submissions and recognize the top entry.
What’s Changing:
Winners: There will be one winner and this winner will be chosen based on three criteria.
Judging Criteria
Criteria: Judges will evaluate entrants in three ways: Community Impact, Creativity, and Results.
Community Impact: How did your campaign bring your community together? How did it highlight the best of the cannabis community to others? Did it support an advocacy campaign such as DEI, sustainability?
The cannabis industry is showing the world how an industry-aligned can create positive change. How does your campaign positively impact either the cannabis industry, your customers, the environment, underserved or unrecognized cannabis users, or businesses?
Creativity: How creative was your overall 420 campaign? How creative are you in getting out your message and implementing the campaign?
Results: Was it an effective campaign by your own goals and KPIs?
This category is one of the most important because our judges will judge the results based on your goals. Regardless of budget size or market size, show us your results. Results are those KPIs that are important to YOU. Make sure you grab those baselines so we can see your progress!
Judges:
Selected from a diverse slate of NCIA members, including past winners and NCIA committee members from a cross-section of perspectives, including the Sustainability Committee, the Diversity and Equity Committee and the Marketing and Advertising Committee.
Submission Process and Deadline
Submit your company’s campaign today by following the link below! Act fast as entries will be collected over the following six weeks, with a deadline to submit by Friday, Jul 22, 2022.
Good luck to everyone and have a fantastic 420! Submissions are being accepted now! We look forward to seeing your exceptional campaigns!
About Clio Clio is the premier international awards competition for the creative business. Founded in 1959 to celebrate creative excellence in advertising, Clio today honors the work and talent at the forefront of the industry in a variety of specialized fields, including: sports, fashion, music, entertainment, cannabis, and health. As a leading authority on the diverse and ever-changing creative landscape, Clio celebrates creativity 365-days-a-year via its global ad database Ads of The World and its content platform Muse by Clio. https://clios.com/ https://musebycl.io/ https://www.adsoftheworld.com/
About Clio Cannabis Expanding on Clio’s enduring reputation for establishing best-in-class programs honoring creative ideas in a variety of specialized verticals, Clio Cannabis celebrates the creators at the forefront of cannabis marketing and communications. Launched in 2019, Clio Cannabis sets the bar for creative work in a rapidly growing industry, builds a greater understanding of a developing category, and elevates creative contributions from top talent and agencies. https://www.cliocannabisawards.com/
Media Partner
For hints and tips on winning award programs, with hints and tips from the entire Marketing and Advertising Committee, listen to the replay of our recent webinar:
Committee Blog: Everything You Wanted to Know About Cannabis Facilities but Were Afraid to Ask Field Guide – Part 4 – Retail
by NCIA’s Facilities Design Committee Jacques Santucci, Brian Anderson, David Vaillencourt, and David Dixon
Continuing our five-part series on the behind-the-scenes workings of the legal cannabis industry. This series focuses on all of the inner dealings and industry advice from established professionals to craft this unlimited How-to-Guide to assist you in setting up your own facility. These articles cover cultivation, extraction, infused products, and retail facilities as well as support activities. In general, remember to be compliant with all local rules and regulations and contact a licensed contractor and industry expert.
Part Four, Retail & Dispensaries: Top Things to Consider When Planning Your Cannabis Dispensary and Retail Operations
Retail and dispensary design presents challenges that are distinct from the other areas of cannabis production and manufacturing. The biggest difference is that the design must now account for customers as well as employees. Listed below are a number of issues that an operator should consider as they are in the process of designing their retail or dispensary operations. Always remember to be compliant with all local rules and regulations.
Security Camera: Minimum Area of Coverage
Most states require a hundred percent minimum security coverage in any area where marijuana products are stored, displayed, or sold. Designing a camera system and placements to avoid “dead spots’ ‘ (i.e. areas with no camera coverage) can be challenging, especially if the operation is taking over an existing space, as opposed to building a new facility from scratch.
Bonus Consideration: Think about having an HVAC system specially dedicated to your security room. Security rooms for video monitoring and storage can sometimes be an afterthought. But these locations should be treated more like computer server rooms as opposed to standard office space. And with the amount of technology placed in a (typically) small space, things can overheat rather quickly. This can lead to damage to the system and ultimately, you could be out of compliance for video storage and retention.
Another Bonus Consideration: do not forget about placing security cameras to cover the entrance and exit points to the parking lot. Think about the field of view around doors, especially if the door is near the corner of the building or if there are other obstructions that can block the camera’s view of the area. Multiple cameras may be needed for this critical function. Contact a licensed professional.
Security Camera: Minimum Data Storage
Video storage and retention requirements for cannabis facilities are fairly stringent. Typical requirements include 90-days of on-site storage and up to five years of off-site storage. Off-site data storage is required for future legal needs. Many states require a minimum video resolution of 1080p. The video storage needs for even a moderately sized facility can amount to petabytes of data. For this reason, many facilities outsource this function at least in some measure. If you do decide to handle this all yourself, you should be sure that you have the technical expertise on your staff to handle this potentially complex technical issue.
Security Alarm: Monitoring
Like it or not, retail cannabis facilities will probably always be targets for crime. Having a security system probably seems like a no-brainer. But simply having an alarm system isn’t typically enough. You will need a system that is actively monitored. This allows the company to initiate actions on your behalf depending on the alarm status (e.g., call the police or fire department in response to a remote alarm). Your alarm should be monitored by at least one reputable company. Redundancy might not be needed, but check to be sure that you are in compliance with local rules and regulations. Talk to your licensed professional.
Security: Line of Sight
Customers should only see the public retail area of the location. Customers should not see the back-of-house operations. There is no need for them to see how business is conducted other than at the sales counter. Similarly, there is no need for customers to be able to view the offices, inventory areas, working areas, employee break room, etc. Keeping these areas private helps to avoid bad actors from learning operational routines that might make it easier for them to exploit.
Safety and Injury Handling
This is an easily overlooked area but can definitely get your dinged upon inspection. Be sure you have the appropriate amount of first aid kits and burn kits onsite as reunited by local regulations. Pay particular attention to the regulations about the placement of these kits as they are sometimes required to be within visual distance of specific rooms within your facility. It can be a hard pill to swallow to not be able to get your operation certificate for forgetting such a simple item, but it happens all too frequently.
Employee Access
Having a non-customer door or access point is a best practice. Non-customer access points are where employees and products are brought into the facility without customer line-of-sight. In some states, this is a requirement so check to be sure your facility is in compliance with laws and regulations.
Product Delivery
Getting cannabis products into a retail facility is a critical part of the merchandise flow and one of the most vulnerable points for theft. For maximum safety and control, consider the use of an air-lock/man trap/sally port door arrangement. If not possible due to location or architecture, planning for business hours separation and process can keep customers separated from deliveries.
Employee and Counter Safety
The counters where transactions occur in a cannabis retail setting can pose some risks especially since most facilities are cash-based operations. An open style counter can open up opportunities for theft. Consider a security barrier counter. The idea is to attempt to prevent customers from having access to products, cash, or employees where possible.
Security: Egress
Customer flow can be somewhat challenging, especially in facilities that have a registration lobby that is physically separated from the retail sales floor. Having separate entry and exit doors for customers can help with the flow of customers. Not a requirement but potentially a good customer experience design.
Customer Environment
Dispensaries and retail locations can be busy places at times. In COVID times, this can be a big issue. But even under non-pandemic circumstances, there may be a need to control the number and spacing of customers for both safety and privacy. Social distancing- the process of limiting the number of customers for the available space within the building- can be enhanced through various design elements. These can range from the use of rope and stanchion barriers, to signage and floor stickers.
Lobby design for restricted access – if access to the sales floor is restricted to registered customers, a secure lobby space should be provided with a separated check-in space and access-controlled doors both for customer entrance and egress.
And do not forget bathroom access for customers. You can have a single facility that is unisex but it should also be ADA compliant.
Environmental Consciousness
Unfortunately, like most other retail spaces, cannabis retail still generates a significant amount of waste. And much of it may be recyclable. Business recycling bins should be provided.
Energy-saving considerations can also be important for retail facilities. Motion detecting light systems can reduce energy consumption in non-occupied spaces. At the very least, interior lighting switches should be located in the same area for easy use upon space exit. HVAC systems should have an occupied and unoccupied night setback capability.
Parking Lot
Depending on the total number of employees and customers you anticipate visiting your business at its peak times, you will need to design a minimum number of accessible parking spots.
If curbside pickup is legally allowed in your area, be sure to map out and reserve spaces exclusively for this activity. It should be close to the exit door where the product will be delivered to the customer. Remember to keep parking spaces for handicapped people and even maybe for motorcycles.
Survey: NCIA Retail Committee Wants To Hear From Cannabis Retail Employees
NCIA’s Retail Committee is looking to gauge what educational material may be the most useful in order to better direct our efforts on content creation for all cannabis retail employees.
We would like to hear from those who are most affected by training and continued education, in hopes of being able to provide tools that will enable all retailers and retail staff to grow and develop.
Keeping Price Points High
Andrew Kaye has been involved in all aspects of the financial services industry, as a fund portfolio investment manager, investment banker, family office investor and attorney. He has worked with start-ups on their first raise through global enterprises undertaking billion-dollar stock offerings, and has significant investment experience in the cannabis industry. Currently, Andrew works as Sweet Leaf Madison Capital’s Chief Commercial Officer. Lending his expertise toward the creation of middle market financing solutions for real estate and equipment financing needs in the cannabis space.”
About 
by Mike Lomuto, NCIA’s DEI Manager
Helen Gomez Andrews: 
Author: Gary Strahle is a Technical Architect with over a decade worth of operational cannabis industry experience. 2023 NCIA Retail Committee Chairman. Avid surfer and golfer with a passion to help others.
Amy Larson of 
“I am deeply honored to be on the Board of Directors for the NCIA. It has been an incredible experience being a member for the past 5 years and to see comprehensive reform inch closer and closer with the relentless efforts of the NCIA team and other advocates/organizations. I am truly hoping that in working together with the industry, we will be able to see the descheduling of cannabis within the next few years. I vow to represent small businesses and want to ensure we have a significant place in the industry at the National level. Working with the rest of the board representing all aspects of the cannabis industry, I am hoping that we can see change happen! We’ve been through so much. Let’s do this!”
Jon Spratt leads Greensite Insurance, a specialty MGU providing boutique insurance coverage to the rapidly expanding Cannabis industry. Greensite launched in 2021 and is partnering with agents/brokers to help better protect their clients. Jon also runs a business accelerator that develops and launches new programs on behalf of Aon programs.
by Kathleen May, Sonny Antonio, Casey Rivero, David Vaillencourt
Where are they now? This month, NCIA’s editorial department continues the monthly Member Spotlight series by following up with three of our Social Equity Scholarship Recipients as part of our Diversity, Equity, and Inclusion Program. Participants are gaining first-hand access to regulators in key markets to get insight on the industry, tips for raising capital, and advice on how to access and utilize data to ensure success in their businesses, along with all the other benefits available to NCIA members.
First off, we have rebranded. We are now Cannvas Events. The name change was part of our evolution and maturation as a startup. As we scaled, more resources became available for things like branding. We brought in Greg Hill of Brand Birth to deploy the science of branding and the end result was a new name, new logo, and new understanding of where we were situated in the regulated cannabis ecosystem. The transformation led to the planning and production of our signature Cannabis Event 2.0 offering, the inaugural Saturnalia Canna Carnival, taking place at the Trinity Health Arena in Muskegon, MI on August 2oth. We are powering a traditional indoor/outdoor carnival – rides and attractions included – with a hassle-free, normalizing consumption solution. If you’re in the Midwest, come join us as we celebrate the first year of an iconic, perennial cannabis festival. Tickets and info at cannvasevents.com and follow us @saturnaliacannacarnival
The 
I’m impressed by the brilliant folks on the committee, and their dedication to making cannabis equitable. It takes time out of our grueling work days to contribute time on these committees but the contribution to making the industry better is crucial during these developmental years of cannabis. Perhaps our current misguided, harmful CA cannabis policies could have been prevented with more early participation from stakeholders who are stewards of the plant. However, there were many factors involved with the way CA policies were created, including special interest money from those who don’t care or want to see the industry fail. 
Overburdensome taxes and high barriers to entry for licensing throughout the state are most obvious right now. The lack of diversity and equity, consumer education, state and federal funding for further research and development also play a huge role in CA’s struggles. I’m frustrated that the State doesn’t understand that those who have been dedicated to the industry, collaboration and this plant are the only ones who can truly guide this industry forward.
There is a lot new in the world of Next Level since 
California Cannabis is facing challenges on many fronts. Countless unnecessary hurdles to legal entry, political red tape, and excess packaging waste to name a few. But the biggest challenges are around security. Every week there is news of a new dispensary, farm, distributor, and friend being burglarized. High tech security systems, gates, and cameras are no match for organized thieves and slow police responses. Until we can get a portion of our excessive taxes dedicated to funding police divisions that specifically targets cannabis thieves, the best solution to combat this is to support your favorite brands by purchasing their products through legal cannabis retail sources.
