NCIA has seen an increase in mainstream companies joining the organization in support of federal cannabis policy reform. Zippo, known for their reusable metal lighters, is an example of one of those companies, so in this month’s member spotlight, we’re checking in with Don Lenny, Vice President of Sales, Americas division, at Zippo.
Cannabis Industry Sector: Cannabis Accessories
NCIA Member Member Since: 2017
Don, tell us a bit about your background as well as your company?
Don Lenny joined Zippo in 2006, and immediately became the force behind leading the North American Sales team. With more than 35 years of sales experience in gifts and accessories channels, Don serves as the VP of Sales, Americas, for Zippo, as well as both of Zippo’s sister companies, Ronson, and W.R. Case & Sons Cutlery Company. In his current role, he is solely responsible for managing Zippo sales in North America, Central America, South America, and the Caribbean; Ronson sales in North America, and W.R. Case & Sons Cutlery Company globally.
One of the most recognized brands in the world, Zippo was founded in the fall of 1932 by George G. Blaisdell in Bradford, Pennsylvania, where it has manufactured over 550 million windproof lighters. With the exception of improvements to the flint wheel and modifications in case finishes, the product remains unchanged and is backed by the company’s famous lifetime guarantee – “It works, or we fix it free.™” Zippo’s diverse product line includes lighters and accessories; butane candle lighters, and a robust line of heat and flame products for outdoor enthusiasts. Zippo markets in over 180 countries, and owns Bradford-based W.R. Case and Sons Cutlery Company and the Ronson family of brands.
What unique value does your company offer to the cannabis industry?
Zippo windproof lighters are backed by an unparalleled lifetime guarantee, and are stylish personal accessories. The lighter surface has been compared to an artist’s canvas, and Zippo offers a wide variety of finishes and designs, including custom, one-of-a-kind pieces on zippo.com. Zippo is internationally known as being a major player in the tobacco accessory industry, and we plan to bring those identical values of high-quality products, coupled with excellent customer service to cannabis consumers as well. Additionally, we are offering the Ronson line along with the Zippo line, ultimately opening the door for us to showcase a variety of products, at a variety of price points, to meet each consumer’s potential need.
Cannabis companies have a unique responsibility to shape this growing industry to be socially responsible and advocate for it to be treated fairly. How does your company help work toward that goal for the greater good of the cannabis industry?
Over the course of the last 85 years, without waiver, Zippo has prioritized meeting exceptionally high and rigorous standards in child safety testing on all of our products, without compromise. In addition, each piece of artwork that is featured on a Zippo pocket lighter is held to unremarkably high customization guidelines. We take pride in not using images, artwork, or slogans that could appeal to young children, as well as not using material that is offensive, including material that glamorizes illegal drug use.
What kind of challenges do you face in the industry and what solutions would you like to see?
As a company, venturing into the cannabis consumer accessory industry is exciting. We see enormous value in being able to offer the same unparalleled quality and customer service that we are historically known for to a new consumer base. However, with the cannabis industry being so new and immature overall, there are certainly a few challenges ahead.
First and foremost, Zippo strives to be a category leader for accessories at retail. Our biggest challenges include understanding what our displays, packaging, and point-of-purchase need to look like for the retail trade, understanding all aspects of distribution to ensure we have the right products in the right stores, understanding what types of product designs consumers want, and lastly, whether they prefer our pipe insert or classic insert when they use our lighter.
You recently joined NCIA, which supports reform at the federal level for the cannabis industry. Why did your company join NCIA?
We saw immense value in joining NCIA, a leading voice for this economically vital segment of consumers. As regulation and consumer attitudes continue to shift, being an NCIA member will allow us to stay well informed on trends and state-by-state policies. We also strive to be known for our excellence in delivering high-quality products and customer service. We hope that our partnership with NCIA will continue to offer us a platform that will allow us to connect with industry leaders, decision makers, business people, and consumers, to continue to aid in helping spread our brand awareness as we continue moving forward in finding our place in the cannabis industry.
Despite the national trend toward legalization and a growing consensus of acceptance among Americans, privacy is still a chief concern among many legal cannabis consumers. And across the industry, no one bears the burden of these concerns more than cannabis retailers.
As a cannabis retailer, you’re pulled in several directions. First and foremost, you’re beholden to state reporting requirements; on the medical side, this means validating recommendation letters and patient identification and storing this information securely.
On the adult-use side, you’re torn between the need to collect certain customer information for marketing and sales purposes and the overwhelming fear and distrust from customers concerning their personal privacy.
It’s a delicate balancing act—and as requirements continue to evolve, retailers need a system in place that’s both functional and flexible.
Determining Your Dispensary’s Needs
As a cannabis retail owner, your number one priority is compliance. And when it comes to patient and customer privacy, you need to determine exactly what your state’s requirements are per your particular operation.
If you’re a medical dispensary, your data security needs are going to be much different from that of an adult-use retailer, and vice-versa. If you run a joint medical and adult-use operation, you’re going to have to find a solution that caters to both.
Legal states have widely disparate laws concerning patient/customer privacy and data collection. For example, Oregon passed legislation earlier this year making it illegal for recreational retailers to keep customer information—such as names, addresses and birthdates—on file for longer than 48 hours.
On the other hand, medical dispensaries need some sort of system for identifying patients and their doctor-certified cannabis recommendations, while both adult-use and medical operations need to be able to track sales to individuals to ensure transaction limits aren’t exceeded.
Finding a Solution That’s Right for You—and Your Customers
Even though state laws mandate cannabis sales tracking and reporting, state agencies are not providing dispensary owners the tools needed to perform these functions in the most efficient manner.
Some statewide reporting solutions offer point-of-sale software that retailers can choose to use. But, as we’ve seen with the ongoing kerfuffle that some states are experiencing with their chosen systems, these technologies are not always the most reliable.
In these instances of statewide system failures and security breaches, what becomes of your customers’ personal information?
Cannabis retailers need a solution that can be tailored to their particular operation—be it medical, adult-use or both—and that is flexible enough to keep up with constantly-changing privacy and information collecting requirements.
Additionally, dispensary owners need to know that in the event the state’s system crashes or is breached, they can record sales using excel spreadsheets or continue ringing sales if their retail software permits all while maintaining their customers’ privacy.
Gary Cohen leads Cova’s charge into the legal cannabis space by guiding the vision, strategic development, ‘go to market’ plans and culture. A Denver native, he recently moved back to establish Cova’s HQ there. While he joined Cova only a year ago, he was a successful business partner to Cova’s parent company since 2011.
Before joining Cova, Gary was a principal in over a dozen tech start-ups in the mobile communications industry ranging from small VC funded companies to Fortune 100 firms, including Onavo, which was later acquired by Facebook. In those companies he lead Sales, Marketing, Business Analytics and Market Expansions. He has also held a multitude of leadership roles with Verizon and AT&T for the first 15 years of the wireless industry.
Gary holds a Degree in Finance with a Masters in Marketing from the University of Colorado.
Policy Council: IRC Section 280E – An Unjust Burden on State-Legal Cannabis Businesses
NCIA’s Policy Council, comprised of industry leaders selected by NCIA’s Board of Directors, play a critical role in the development of cannabis policy at the federal level. The Policy Council recently produced a white paper titled “IRC Section 280E: An Unjust Burden on State-Legal Cannabis Businesses” which is now available in an easy-to-read design with the intention of utilizing this in conversations with policymakers, the media, and the industry.
“Fixing Section 280E of the Internal Revenue Code has been a policy priority for NCIA since its founding in 2010,” said Steve Fox, co-founder of NCIA and director of the Policy Council. “It is therefore appropriate that the fist Policy Council paper is focused on this issue. The information contained in this paper will be useful in lobbying efforts as Congress continues to debate tax reform. In particular, the projections contained in the paper, showing that reforming 280E could actually result in a net increase in tax revenue for the federal government, should be especially eye-opening.”
In November’s Member Spotlight Video, NCIA visits with Rabbi Kahn of Takoma Wellness Center in Washington D.C., a family-owned and operated medical cannabis dispensary, and a member of NCIA since 2014. He tells us about the challenges of opening the business in the Takoma Park neighborhood of D.C. near the Maryland border.
Learn more about Takoma Wellness Center from Rabbi Kahn.
Legal and Banking Committee: White Paper – Financial Institutions
By Dana Chaves, Ms. Mary Staffing/Hybrid Payroll
Vice Chair of NCIA’s Legal and Banking Committee
During our inaugural meeting in Oakland California in June of 2017, the Legal and Banking Committee discussed the impending issues impacting the cannabis industry. It was decided that the biggest issue that needed immediate attention was of course banking and the inability for businesses in the cannabis space to obtain and maintain a checking account in order to pay taxes, bills and more importantly payroll for employees.
As a group we decided that writing a white paper and subsequently a supporting PowerPoint slide deck to present to financial institutions, executives and board members in a lunch-and-learn environment would be the most effective way to educate not only financial institutions but also state regulatory agencies as well on how to work together on the best practices for mitigating risks surrounding the Bank Secrecy Act and resources needed for compliance.
It is the hope of the LBC Committee to assist financial Institutions in a nationwide effort to begin the process of protecting the communities where marijuana is legal and by legitimizing the industry by allowing banking and lending services to both business owners and their employees.
Cannabis Industry Sector:
As a cannabis retail owner, your number one priority is compliance. And when it comes to patient and customer privacy, you need to determine exactly what your state’s requirements are per your particular operation.
