Apply for an NCIA Committee for the 2018-19 term!

Coming off a strong and productive year of Committee work, NCIA is excited to announce that we are accepting applications for the 2018-19 Committee term. We need your skills, passion, and wide-ranging perspectives to build upon our energetic, inclusive, and innovative committees. NCIA committees are an opportunity for our members to get engaged in specific industry issues and sectors of their professional expertise and interest.

NCIA Committees enable our members to engage their vast and varied areas of expertise and passion to:

    • effect change and influence public opinion and policy,
    • enhance their leadership skills,
    • expand their professional and personal network, and
    • develop best practices and guidelines to shape the future of our industry.

    “They are all experts in their fields and are all committed to the responsible and equitable growth of the Cannabis Industry. In over 30 years in the insurance industry, this is the most fun I’ve had!”
    – John Balian, Wood Gutmann & Bogart Insurance Brokers, NCIA’s Finance and Insurance Committee

    “There is no doubt that my fellow Committee Members will be the ones to help drive our industry forward and the relationships I’ve made are a valuable benefit of my NCIA Membership.”
    – Michael Weiss, Nature’s Dream, Inc. (aka Cannacopia), NCIA’s Marketing & Advertising Committee

    APPLY FOR A COMMITTEE SEAT

    *All applications must be submitted by June 20 to be considered

    Have questions? Contact Membership@TheCannabisIndustry.org or call 888.683.5650

The Cannabis Business Banking Crisis

By Rachelle Lynn Gordon, NCIA Editorial

The fledgling legal cannabis industry has faced numerous challenges since California voters made the state the first to approve the plant for medical use in 1996. Since then, an additional 29 states and the District of Columbia have legalized cannabis for either medical and/or adult-use purposes yet it still remains a Schedule I controlled substance in the eyes of the federal government. This has caused immense headaches for cannabis business owners in a multitude of ways – especially when it comes to balancing the books. The majority of traditional banking institutions refuse to work with clients that touch the cannabis plant, leaving many businesses to operate as cash-only while at the same time missing out on the traditional financial and lending opportunities given to other businesses.

pexels“Being forced to hire an armored truck just to pay taxes or provide payroll isn’t only a hassle – it’s also extremely dangerous,” says Harry Resin, who longs for the day when he can open a business checking account for his cannabis company, URB Delivery. “People’s livelihoods – and frankly their lives – are constantly at risk when you’re dealing with large amounts of currency.”

Lack of security isn’t the only detriment to cannabis business owners unable to find banks who will work with them. Business loans, savings accounts, 401Ks, and credit lines are all out of reach for those wishing to develop their operations and plan for the future.

“I would love to be able to expand my operations but because I don’t have the option to take out a small business loan, I either have to get loans from friends and families or potentially give up equity to private investors,” Resin adds. “It makes things difficult.”

While many believe that it is illegal for banks to do business with those in the marijuana space, it turns out the opposite is true.

“We actually have regulations on how to bank the cannabis industry, but most banks don’t want to go through the expense and hassle of opening new departments,” explains Jim Marty, CEO of Bridge West CPA. “They’re already making tons of money, so they don’t feel the need to enter a new space. It’s going to take Congressional action on legalization before the big players enter in.”

While it’s not clear how exactly cannabis reform will play out, Marty cautions that while moving cannabis to Schedule II status could be positive for advocates of legalization, it may also negatively affect the entrepreneurial activity the emerging cannabis industry has shown.

“Right now, we have a lot of start-ups and small businesses that are getting funding from angel investors or private equity funds. If cannabis becomes Schedule II, there’s a chance that Big Pharma, Big Tobacco, and Big Alcohol will come in and there will be two or three major producers. So something that could fix a lot of the problems may do more harm than good.”

Marty notes that the introduction of bills such as The SAFE (Secure and Fair Enforcement) Banking Act (S. 1152, H.R. 2215), which would offer protections for state-legal financial institutions working with marijuana businesses, are steps in the right direction for the cannabis industry but that it is going to take hard work and perseverance by all in the community before real change is made.

Help us grow even more support for the SAFE Banking Act in Congress. Contact your members of Congress and urge them to support federal protections for financial institutions that work with the regulated cannabis industry.


Learn more in this report by NCIA’s Legal and Banking Committee:
Investigating the Role of Financial Institutions in the Legal Cannabis Industry
NCIA’s Legal and Banking Committee, comprised of NCIA members within that sector, produced this white paper following a meeting with California State Treasurer John Chiang and other cannabis industry leaders in mid 2017. The paper provides discussion and evaluation of challenges faced by businesses operating within the legal cannabis industry, while highlighting some of the benefits the industry brings to financial institutions and the communities they serve. (February 2018)

 

Our Members in Action at NCIA’s 2018 Cannabis Industry Lobby Days

by NCIA Editorial Staff

The cannabis industry has seen exponential growth in the mainstream support for regulated cannabis markets from both sides of the political aisle. This progress is a direct result of the relationships NCIA has built on Capitol Hill, as well as the personal stories told by our members each year at our annual Lobby Days events in Washington, D.C.

NCIA’s 8th Annual Cannabis Industry Lobby Days, hosted May 21-23, was the industry’s most impactful fly-in yet, as our members made more inroads to Congress at a time when the nation has reached a tipping point in the fight to protect legal cannabis.

“So many more people keep coming to Lobby Days which is amazing to see,” said Karson Humiston, founder of Vangst. She’s one of Forbes’ 30 under 30 and the only female in cannabis to make the list. She’s focused on telling members of Congress about the potential for job creation and the economic impact of a fully recognized cannabis industry. “We are talking about jobs as much as possible in order to educate members of Congress about the economic stimulation regulated cannabis is bringing to the states and the need for federal legalization,” she said.

NCIA announced the release of its 2018 State Cannabis Progress Report during this year’s Lobby Days. The publication outlines a myriad of economic and social benefits already being realized by states with successful cannabis programs, including job creation, tax revenue, and reductions in crime and teen use.   

So far 2018 is shaping up to be much different from the past seven years, largely because of Republican backlash against Attorney General Jeff Sessions attempting to ramp up federal interference in state cannabis programs by rescinding the Cole Memo. Historically, the GOP has been less publicly supportive of reforming cannabis laws, although there has been a strong current of support among certain segments of the party. Now, they listen and many have even joined us in support of banking and tax reforms needed for our industry to reach its full potential, in addition to their traditional support of federalism issues related to cannabis. Advocates, patients, and NCIA member-businesses all over the United States are keeping this positive momentum going.

At the Lobby Days welcome reception on the evening of Monday, May 21, NCIA Executive Director Aaron Smith said he was delighted with the turnout. “There are so many new faces, so many old friends, and Lobby Days veterans,” he told the audience of cannabis professionals, who had just arrived in Washington prior to the two full days of meetings with congressional offices. “Starting tomorrow, we will descend upon Capitol Hill to show lawmakers what a responsible, politically engaged cannabis industry looks like.” He called Lobby Days one of the cannabis industry’s most important events of the year.

NCIA member and founder of Washington, D.C.’s National Cannabis Festival and the National Cannabis Policy Summit, Caroline Phillips, said that she was proud to see so many members coming to her backyard to demonstrate their unity. “This is a really wonderful opportunity to share with members of Congress the diverse and innovative ideas of the cannabis industry and to show off the professionalism, creativity, and care that the people in the industry put into their work, “she added. “I think a lot of members on the Hill are starting to understand the cannabis industry is a lot more than just stereotypes, and for them to have one-on-one interactions with some of the best professionals in our industry is extraordinarily valuable.”

New to Lobby Days was Attorney Blake Mensing. He was eager to join the crowd of professionals to advocate for the fair treatment of cannabis businesses. “I think that this is the eighth year that this is happening really shows that the industry is coming out of the shadows and the momentum has built to the point that there’s a small probability that things are going back to the way they were [prior to the reform victories of the last decade].” Mensing founded The Mensing Group after he left his job as a Municipal Attorney in Massachusetts to start a cannabis-only practice. “It’s the first time I’ve ever had fun being a lawyer,” he remarked before heading into Senator Orrin Hatch’s (R-UT) office.

Professional football player Mike James also joined NCIA this year to advocate on behalf of his fellow athletes who would prefer to treat their health issues with medical marijuana instead of opiates. The active NFL running back has played for the Tampa Bay Buccaneers and the Detroit Lions during his career, which has wreaked havoc on his body, leaving him with chronic pain that he used to treat with opioids. “Within the NFL, I’m trying to go through their process and change policy. That way, hopefully, they can be an example for society,” he said. Currently a free agent, he’s the first and only active player with a medical marijuana card.

From the need to expand medical access to cannabis, to tax and banking reform, to addressing the injustice of racially disproportionate marijuana enforcement, NCIA hit the Halls of Congress to educate members of Congress and their staffs on what’s happening in their own backyards and the successes of regulating cannabis.

For example, when it comes to tax reform, Heather Sullivan of 3C Consulting said the cash-flow is only one of the issues they have to worry about from the 280E tax burden. “It’s a tough decision come tax season,” she said. “Do you set aside those tax rates so you don’t have that money to use for other things for your business, or do you play the game and run the risk that you’re not going to get audited?” Many cannabis businesses face similar issues, which can effectively ruin a company over time.

There were many Congressional offices that were receptive to the efforts and positions of NCIA members during Lobby Days. Heather took a meeting with Sen. Bernie Sanders’ (I-VT) office, for example, and after leaving the meeting she felt that it went wonderfully, stating, “Senator Sanders is a proponent for the safe and regulated use of cannabis whether in the medical side or the adult use side, so it was a meeting that for us was an opportunity to tell Bernie and his staff how much we appreciate the hard work that he’s done, ask him what we can do as an industry to help them continue the progress that they’ve already made and learn more about where his focus is.” Sullivan is well-versed in the issues facing cannabis businesses today and knows many other officials are still in need of convincing.

In spite of heavy opposition from Attorney General Jeff Sessions, as well as House leadership, the cannabis industry saw a huge victory when protections for medical marijuana were included in this years’ fiscal budget. Now, with the help of our members who flew in to speak about their personal issues and experiences, we can all look forward to an even more progress and a better outlook for the U.S. cannabis industry.

 

VIDEO: Member Spotlight with Canndescent

In this month’s member spotlight, we visited with CEO Adrian Sedlin at his cultivation and processing facility in Desert Hot Springs, California. His company Canndescent has been acclaimed for its unique, modern packaging designs. Canndescent’s lifestyle-focused strain names, including Calm, Connect, and Cruise, answers this question for consumers: “How do you want to feel?”

Committee Blog: Packaging Design Considerations

by NCIA’s Packaging and Labeling Committee
Elise Grosso, Cannabis Marketing Association; and Rachel Kane, Sure Lock Packaging, Inc.

The following topics are areas to be aware of while creating and designing packaging. Using these tips can save you time and money in the process of creating or selling cannabis products.

Originality of content – Imitating consumer packaged goods for your packaging design through parody of a popular brand logo or using parody in packaging design can lead to serious issues. Use packaging is an opportunity to define your brand.

Lead times – Timing and shipping are usually underrated factors that can cause headache and unnecessary costs. Depending on the complexity of the packaging, if tooling is be required, this can easily add six weeks to your delivery time. Is your packaging being produced domestically or internationally? How much space will packaging use and where will it be stored?

Issues compliance labeling on design – If you are creating a product to be sold at a dispensary, make sure to consider additional labeling that will appear on the final product delivered to customers at retail. There needs to be enough surface area or clever design to make sure your packaging identity isn’t lost amongst compliance stickers. If you are a retailer, it is important to educate salespeople about where to place required labels to not obscure important information that may be on the packaging.

Adaptable – Rules change constantly. Your company’s strategies to deal with changing regulations should include packaging and labeling. You could predict and order units based on when regulations go into effect, or start with packaging that goes beyond current standards. As a retailer, can you find a way to insist the brands you carry comply with child resistant standards or order more exit bags? Going above and beyond current regulations can save you money and elevate your product.

It is important to have packaging graphics that get noticed at retail. Consumers often skim shelves quickly looking for brands that are known to them or graphics that catch their eye. With limited space in dispensaries it is important to have branding that is well presented in the packaging. Creating packaging that represents your brand is best done early in the process so that it is not rushed and attainable lead times for desired packaging can be met. In our industry, states can update packaging guidelines at any time, make sure your final packaging adheres to all regulations structurally and graphically.

VIDEO: Spring Policy Update From Aaron Smith

Watch this important policy update from NCIA’s Aaron Smith to learn more about the recent policy news and pro-cannabis legislation recently announced by several prominent members of Congress. Despite heavy opposition from Attorney General Jeff Sessions, the cannabis industry has stronger support than ever. Get the scoop in this video update.

And remember to join us in Washington, D.C. for two days of advocacy at NCIA’s 8th Annual Cannabis Industry Lobby Days on May 21-23. Registration closes in just 9 days on May 18!

Committee Blog: Child Resistant Requirements and Challenges

by NCIA’s Packaging and Labeling Committee
Nancy Warner, Assurpack; and Rachel Kane, Sure Lock Packaging, Inc.

Child Resistant requirements for cannabis products is part of the regulatory structure for almost every state that has legalized marijuana for both medical and adult use. These requirements pose challenges to the entire supply chain from growers, manufacturers, dispensaries and customers.

Child resistant packaging is defined by the CPSC on a federal level. Most states refer to the CPSC guidelines for testing and certification of packages. There is no such thing as a child proof package. There is only a child resistant package as defined by the CPSC or other state cannabis regulators.  

No one likes child resistant packaging – that’s a given. It is used because regulations require it. The cannabis industry is one of only a few that have to use this type of special packaging.  

Start your search early in your development process to find the right package solution. Customization takes time with your manufacturer to design, develop and engineer to meet your branding and production needs. There are both single use and multi use child resistant packages. Ask your regulatory advisors which type of child resistant feature you need to use for each type of product.

Make sure your child resistant packaging has been tested and certified by an approved ASTM third party testing agency. Your packaging manufacturer should have the certificates from these outside agencies for you to have on file to support your regulatory compliance.

Costs for these certified child resistant packages are going to be more expensive than non child resistant options. Build these costs early into your total spend.

Our industry is going to push the design and engineering solutions for child resistant packaging to support the branding and marketing of all these great new products. Other issues such as sustainability and use of recycled materials will also be demanded by the cannabis industry. Manufacturers and suppliers of child resistant packaging will have to step up their game to support this new and exciting industry.

 

Member Blog: Three Security Must-Haves for Marijuana Dispensaries

by Evan Hicks, Senseon Secure Access

The proliferation of both legalized medical and recreational marijuana has, not surprisingly, led to a massive boom in dispensaries — and, with that boom, increased focus on these burgeoning businesses and their increasing security needs. “Inventory will increase, cash holdings will increase, and the number of people accessing legal cannabis for the first time will naturally evolve to a larger customer base,” writes Marijuana Retail Report. To many industry and security experts, this presents a perfect storm — high value products, cash on hand and less scrutiny over who’s coming through the door.

If you’re launching or scaling a marijuana business, it’s essential to unpack several basic security challenges and overarching needs. By safeguarding your business from day one, you’ll be better positioned to protect your inventory, your customers and your business, while maintaining a well-designed, welcoming environment for workers and buyers.

1. Security Guards

Many dispensaries want to avoid a visible security presence — which makes sense. Because of marijuana’s history and, still, the stigma that exists in many communities, seeing a security guard can make customers feel skittish or even avoid coming in entirely.

The solution? Have point-of-entry security that facilitates a positive customer experience. Many businesses, for example, opt for plain-clothes guards or guards with uniforms that mimic the rest of the in-store team. “Since they are the first point of contact,” explains MMR, “ensure that they are helping consumers feel welcome and invited, yet are able to maintain a zero-tolerance stance on any customer activities that could present a perceived threat to your dispensary, staff and other customers.”

2. Secure Transportation

Getting marijuana from growers to dispensaries and shops presents another layer of security concerns. Because the product is so in-demand and so valuable, it’s an appealing target for retail crime, from the minute it’s harvested. If you’re handling transportation yourself, be sure your fleet is equipped with the basics — bullet-resistant finishes, GPS tracking and streaming videos that feeds to your security “home base,” for starters.

For many businesses, though, managing this level of high-stakes transportation is too much to take on, especially in the beginning. For them, there are a variety of transportation-focused companies who specialize in cannabis and medical transport, and can ensure your product arrives safely and securely every time.

3. Internal and In-Store Theft Prevention

The majority of dispensary losses come from employee theft. While there are several steps businesses must take early on — thorough employee screening, background checks and a solid inventory management and POS system — it’s essential to maintain in-store security measures that discourage “heavy-handedness” and full-on theft.

During the onboarding process, supervisors and dispensary owners should be clear that employees cannot sell to themselves. Beyond that, ensure you have a clear-cut “friends and family” discount policy in place and that it’s communicated and adhered to. No discounting allowed? Make sure that’s made crystal clear, too.

Taking things a step further, be sure to integrate physical protections for your product. Senseon Secure Access recently topped IndicaOnline’s list of the top five security services for marijuana dispensaries, with a specific eye on the company’s smart cabinetry systems. With automatic relocking and customizable permissions for staff, it’s easy to safeguard cannabis while, at the same time, maintaining a close eye on who’s accessing what when — if there’s a problem with products, tracking down the culprit is easier than ever. And, with a keyless entry, there’s no risk keys will end up in the wrong hands ever.

As the cannabis landscape grows and expands, security needs will, too. But, for now, focus on these three must-haves to protect your dispensary today and tomorrow.


Evan Hicks is Marketing Coordinator for Senseon Secure Access, a product of Accuride International. As coordinator, he helps manage Senseon’s marketing initiatives covering communications, events, and research & development. With an unquenchable thirst for learning, Evan frequently finds himself deep in the rabbit hole conducting research for Senseon’s multiple markets.

A graduate of California Polytechnic University, Evan has nearly a decade of experience in security and public relations in both the public and private sector.

 

Walk the halls of Congress with us at #NCIALobbyDays

NCIA’s Lobby Days are less than three weeks away on May 21-23, 2018. In our 8th consecutive year of holding these important meetings with Congressional offices in Washington, D.C., many NCIA members have been excitedly looking forward to this event all year long. For newer members of NCIA or those who simply have not lobbied before, you’re probably wondering what it’s all about and how it works. This event is unlike any other conference or event you’ve experienced.

Watch this video to see and hear what it’s like to join hundreds of your industry peers for two incredible days of valuable networking and important advocacy work. Join us in creating a stronger, unified cannabis industry. Learn more and register now before Friday, May 18 to join us in D.C. this year.

Committee Blog: Legal Truth in Labeling

by NCIA’s Packaging and Labeling Committee
Karen Bernstein, Bernstein IP; Alex Berger, Emerge Law Group; and Carl Rowley, Thompson Coburn LLP

You may have read about how the Federal Trade Commission (FTC) has been cracking down on labeling of CBD products and how labeling of your Cannabis products could land you in court. Here are some tips on that may reduce the risk getting into trouble.

Don’t Make Any Claims or Guarantees About the Results of Using Your Cannabis Products.
Even the use of testimonials purporting to say that a Cannabis product gave them positive results could get you into trouble.

Don’t Label Your Cannabis Products “Organic.”
Cannabis is illegal on the federal level and is not regulated by the US Department of Agriculture or the Environmental Protection Agency and most states do not have regulatory oversight over products that are purported to be “organic.”

Be Careful About Calling Your Cannabis Products “Gluten Free,” “Paleo,” and “Certified Vegan.”
Food advocacy groups own federal certification trademarks for these names. Indeed, the Gluten Intolerance Group (“GIG”) recently sued celebrity chef Jamie Oliver for trademark infringement, among other things, for using the letters “GF” surrounded by a circle and the words “Certified Gluten Free.”  If you want to be able to call your Cannabis products “Gluten Free,” “Paleo,” or “Certified Vegan,” you will need to find out what is required by the owners of these trademarks to avoid a costly lawsuit.

Make Sure Geographic Claims are Accurate.
One similarity between the wine and cannabis industries is the association of certain geographical regions with the characteristics and quality of the product produced in them. Think Bordeaux, Champagne, Burgundy (wine) and Humboldt, Emerald Triangle, “BC Bud” (cannabis). As the cannabis industry matures and consumers become increasingly sophisticated, growers and manufacturers will most likely seek to distinguish and capitalize on their products’ geographical origins. California’s nascent labeling regulations already acknowledge this likelihood by specifically prohibiting a label to even use the name of a California county unless the cannabis used in the product was grown there. And many states prohibit misleading or untruthful statements on a label. Thus a cannabis business should be wary about including geographical names on their labels if the labeling could mislead consumers into believing that the cannabis was grown in a specific area when it was not.

Share the Rules With Your Designers.
States with labeling and packaging rules on the books largely have one rule in common: labels/packaging must not be attractive to minors. Such regulations among states may differ regarding what “attractive to minors” means. Sharing this, and all, restrictions with your creative team on the front end may save you time and money on the back. Otherwise you may find yourself having already paid for the perfect logo, just to have it rejected by the regulators. It may also be a good idea to communicate regularly with regulators during the design process to ensure you do not run afoul of the regulations. A lot of these rules and definitions are subjective (e.g. “exaggerated features” or “superhuman powers”), so determining the regulators’ interpretations may be advantageous.

Disclose all Additives and Ingredients.
Many concentrate and extract manufacturers add substances to their products to increase/decrease viscosity, obtain a certain appearance, or achieve a certain flavor.  But, for a variety of reasons, may not list them on the label. Licensees may believe this compliant with labeling regulations because the licensee does not consider such substances “ingredients” or the regulations may require ingredients only for edible labels.  But, many states’ regulations contain a blanket prohibition on untruthful, misleading, or false information, or misrepresentations. Licensees in these circumstances must carefully weigh the commercial benefits of omitting certain information with risks that regulators might consider such omissions misrepresentations.

No set of tips can eliminate the risk that regulators will find fault with your labeling practices, but following these suggestions may save you unnecessary headaches down the road.

This post is for informational purposes only and is not to be construed as legal advice.

2018 Board of Directors Election Now Open!

It’s time to vote in NCIA’s annual board of directors election! Participation in NCIA’s board election is one of the most important ways to engage as a member of your trade association, as it ensures that your values are represented within NCIA’s leadership.

If you are a member of NCIA, we encourage you to review the voter guide of this year’s candidates and cast your ballot between now and May 31 for the 2018-2020 term.

About NCIA’s Board of Directors:
As the largest national trade association for the industry, NCIA’s Board of Directors establishes the organization’s board objectives and strategic direction. Board Members are responsible for building membership, fundraising for the organization, and ensuring that NCIA continues to be the strongest force advocating for the fair and equal treatment of the industry on the Hill.

About the election process:
NCIA members will receive an email with a unique link to a secure online election ballot.

There are 9 open board of directors seats and 21 nominated candidates (including seven current board members seeking reelection). Please refer to your voter guide for information on all candidates and for more information on board election logistics before casting your vote online.

Each member business can only vote once and votes cannot be changed once submitted.
Votes are weighted according to membership status.

If you do not receive the email containing the electronic ballot by close of business on Tuesday, May 1, please contact us immediately at membership@thecannabisindustry.org or (888) 683-5650.

Voting closes at 11:59 PM EDT on Thursday, May 31.

Learn more about the candidates:
1. Download the VOTER GUIDE.
2. Watch the candidate VIDEOS.
3. Watch recordings of the moderated NCIA Board Nominee Forums which took place on May 2, 3, and 4! Take the opportunity to listen in as nominees answer critical questions about their candidacy and discuss their long-term vision for NCIA and the industry at-large.

2018 NCIA Board of Directors – Nominee Forum recordings:
May 02, 2018
May 03, 2018
May 04, 2018

2018 Board Candidates

Moe Asnani – iLava
Gary Cohen 
– Cova
John Davis (Incumbent) – Northwest Cannabis
Troy Dayton (Incumbent) 
– The Arcview Group
Etienne Fontan (Incumbent) 
– Berkeley Patients Group
Michael Gruber 
– Salveo Capital (WITHDRAWN)
Aaron Justis (Incumbent)  
– Buds and Roses
Kris Krane (Incumbent) 
– 4Front Ventures
Jaime Lewis (Incumbent) – Coldwater Consulting
Olivia Mannix – Cannabrand
John MacKay – Synergistic Technology Associates (WITHDRAWN)
Michael Minardi – Minardi Law
Mark Passerini – Om of Medicine
Erich Pearson (Incumbent) – SPARC
Ean Seeb (Incumbent) – Manna Molecular
Gregg Steinberg – Growcentia
Michael Steinmetz – Flow Kana
Ian Stewart, Esq. – Wilson Elser Law Firm
Kimley Svendsen – Waterstone Staffing Holdings, LLC
Manndie Tingler – Papa & Barkley
Taylor West – COHNNABIS

Note: Individuals who cast a ballot on behalf of their member-business are responsible for verifying that they are authorized to do so within their own corporate leadership structure.

Not yet a member of NCIA?
If you are not a member of NCIA but want to participate in the election, join today and we’ll provide you access to the online ballot. Your membership will also support the industry’s only unified and coordinated effort to reform federal marijuana laws as well as provide other member benefits enjoyed by the more than 1,500 responsible cannabis businesses that make up NCIA’s national network.

Member Spotlight: Hippo Premium Packaging

Get to know the company Hippo Premium Packaging in this interview with CEO and Co-founder Kary Radestock, who also serves on NCIA’s Marketing and Advertising Committee. 

Industry Sector: Packaging and Labeling

NCIA Member Since:
June 2016

Tell me a bit about your background and why you launched your company?

CEO Kary Radestock

I worked for a Fortune 500 printing and packaging company for 20 years and produced a lot of high-end, award-winning projects. In the summer of 2015, I started to think about a potential business opportunity after watching 5 different people walk into our facility needing cannabis vape cartridge packaging. I pitched the business opportunity to our executive team, but the instability of the industry and the lack of banking forced the company to deny Cannabis clients from doing business with us. I couldn’t stop thinking about the industry, so I created the Hippo brand, gathered a group of potential company founders and we flew to MJBizCon in Vegas. We needed to check out the lay of the land to see if our business concept could be useful to the industry. I brought one of my award winning rigid boxes with me encasing beautiful bottles of oils. The response was overwhelming. It wasn’t even a question any more. There was a need. Just a couple of months later I quit my job and fully launched Hippo. I haven’t looked back.

What unique value does your company offer to the cannabis industry?

We bring an incredible amount of experience to the industry. You know the saying that it takes 10,000 hours to become a master at something? Well, each of our experts are masters at what they do. We feel there are three pillars leading to brand success: 1. Brand Development/Graphic Design, 2. Marketing Services and 3. Packaging. We’ve adapted mainstream best practices from each of these categories and are applying them to the cannabis industry. Our mantra is to help our customers succeed in this ultra-competitive landscape.

We comb the earth, looking for the best packaging solutions on the market and are proud distributors of an extensive range of child resistant and other packaging products. Our flagship is the Burgopak Duallok™, a beautifully functioning folding carton that is both child resistant (CR) and re-closable. This product is currently in testing and we expect final certification in the coming weeks. These boxes can be beautifully printed featuring custom decorating finishes that our industry enjoys including Foils, Soft Touch, Spot Varnishes, etc. It’s perfect for vape cartridges, pre-rolls, syringes, edibles and much more.

In addition, Hippo has a boots-on-the ground approach to working with our clients. Our sales team is regionalized so we can easily get together to help our clients through the complicated packaging process. Many cultivators and manufacturers are being introduced to a business world that they are unfamiliar with. Having that face-to-face contact with Hippo instills trust and usually allows for a smoother process. We become an extension of their own internal team and their success is our ultimate goal. This regionalized team is supported by our legal compliance department to help us and our clients understand the complicated regulations that change from state to state.

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?

At Hippo, we feel our immediate and primary responsibility is that of reputation transformation. The industry as a whole has a bad rap for weak and sometimes inappropriate brand development, marketing campaigns featuring scantily clad females and poorly executed packaging. So, we make it a priority to help educate the community about what steps to take to create a quality brand and win the trust of their target consumers. To that end, we write blogs and articles, feature tips on our website and in social media, speak at industry events like High Times Business Summit, Bud Camp, NCIA Seed to Sale Show and many more. We are also in a unique position to help guide our clients in developing their own unique social responsibility programs, of which will go far to endear a mainstream audience.

As far as advocacy goes, we participate in the industry, keep abreast of the issues at the forefront and get involved by attending community meetings and writing our politicians as often as needed. In the near future, our focus will be on lobbying for fair business tax regulations as well responsible packaging laws that protect our children, the environment and our community.

What kind of challenges do you face in the industry and what solutions would you like to see?

Where to start!?!? There are so many challenges.

  1. The regulations here in California have been and remain messy and confusing. We spend way too much time researching these regulations – which are constantly changing and inconsistent state to state. Once the Federal Government declassifies cannabis, then the country will be able to uniformly work together to create consistent regulations across all states.
  2. We also face a lot of financial challenges with new clients who need to get to market but have paid so much money up front for new permits and licenses that they have no budget left for brand development, marketing and/or packaging. Changing some of those fees to post-sale would help the entire industry, including the ancillary companies.
  3. But for Hippo, we understand that one of the biggest challenges our clients are facing is understanding and finding premium certified child resistant packaging options. Packaging has a huge impact on the consumer experience and has been touted to influence 70% of buying decisions in a mainstream marketplace. Cannabis packaging is the hardest working packaging in existence with multiple demands; child resistant, resealable, airtight, tamper evident, regulations galore and that’s before we can even start thinking about how to beautifully represent the brand. With many CR form factors still in development and a shortage of stock items, cannabis businesses are scrambling to find anything that represents their brand well. During these next few years, our industry must lobby for packaging laws that don’t overtax the environment or our community and actually make sense.

Why did you join NCIA? What’s the best part about being a member?

I’m a bit of a geek this way. Early on in my career I worked for a non-profit and learned the importance of networking. Networking got a bad reputation from a handful of card slingers looking for quick business. But the reality is the network I built all those years ago is now paying off – royally. I’ve pulled the human capital I needed to grow Hippo from that network. I joined NCIA shortly after launching the business because I wanted to get to know the industry and its leaders. I needed education and I needed community. With my NCIA membership, I got more than I bargained for. I have served on the Marketing and Advertising Committee (MAC) this past year with so many smart and talented individuals. I’ve had a blast and met an amazing group of men and women as dedicated as I am to bringing solid business practices and professionalism to this industry. I’m proud to serve beside them to bring our members tools to help them succeed.

My mentors taught me to get involved, apply yourself and leave whatever you touch better than you found it. I’m not quite there yet… so I’ll get busy and apply for committee membership again next year.



Connect with Hippo Premium Packaging on Facebook

This site uses cookies. By using this site or closing this notice, you agree to the use of cookies and our privacy policy.