This month, we reached out to Sirita Wright, a co-founder of the multimedia company EstroHaze. Sirita, along with her co-founders Kali Wilder, and Safon Floyd, focus their company’s mission on highlighting the businesses and lifestyles of multicultural women in the cannabis industry.
Cannabis Industry Sector:
Media/Entertainment
NCIA Member Since:
January 2018
Tell us about your background and why you launched your company?
Storytelling is the heart of what we do. We found a void in mainstream media’s coverage of minorities building brands within the industry and we decided to start EstroHaze for the purposes of uplifiting those voices. Having worked together for years at another media company, we saw a great opportunity to build a bridge for others looking for opportunities in the cannabis industry.
What unique value does your company offer to the cannabis industry?
Photo by Rich February
Our value lies in our ability to represent and truly connect with our community via ‘edutainment’. From our original video series EstroHaze Escapades, where we explore the inner workings of the legal cannabis industry in states like Colorado and take in cannabis experiences like ganja yoga; to our podcast where we talk startup life and brand-building, as well as interviews with cannabis thoughtleaders and influencers. If that isn’t enough, head to our website where we feature dynamic profiles, blueprints for building your own cannabusiness, cannabis recipes, information on lobbying and more! Bottom line, EstroHaze provides a connection to cannabis and culture that resonates with the people.
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?
This is the reason why we started EstroHaze – to be a space that amplifies voices that are shaping this industry, voices that, far too often, have been ignored. With ever-expanding cultural influence and increasing buying power it’s reckless to ignore one of the fastest-growing, most educated, and entrepreneurial demographics in the world. In telling stories – the good, bad and ugly of the cannabis industry – we ensure that people are aware of bias and held accountable. The cannabis industry is bigger than any of us and has the power to save lives and improve well-being. Recognizing this, EstroHaze serves a higher purpose and we create content and partner with brands that are intentional about that higher purpose.
What kind of challenges do you face in the industry and what solutions would you like to see?
The challenges we face are typical of any startup, to be honest. Add being women and a woman of color led brand and those issues just compound! Access to capital, government support as a small business, social stigma towards the use of cannabis, etc. We are a startup like any other with opportunity to grow to unlimited heights and that takes capital. The solution is simple–-show us the money and access to opportunities to produce content on a larger scale. For instance, Netflix, VICE, and HBO are just a few networks that have cannabis themed content that is not led or hosted by women of color, specifically black women. Enough already! EstroHaze as content creators can help with that.
Why did you join NCIA? What’s the best part about being a member?
Our NCIA membership was actually gifted to us by a member who was impressed with us and our Demo Day pitch at Canopy Boulder. This membership has given us an opportunity to build more bridges with other like-minded brands, get industry data that is not available to the public, which is priceless, and access to informative conferences and trade-shows.
The Marijuana Freedom and Opportunity Act (Finally) Makes Its Debut
After more than two months since Senate Minority Leader Chuck Schumerannounced forthcoming marijuana reform legislation, this week finally saw the bill’s introduction. The Marijuana Freedom and Opportunity Act removes marijuana from the schedule of controlled substances, allowing states to determine their own cannabis policies without fear of federal interference.
The Marijuana Freedom and Opportunity Act, cosponsored by Senators Bernie Sanders (I-VT), Tim Kaine (D-VA), and Tammy Duckworth (D-IL), would specifically remove marijuana from the Controlled Substances Act, effectively decriminalizing the substance at the federal level and allowing states to determine their own cannabis policies without the threat of interference.
The full text of the bill describes further provisions, including providing funding to cannabis businesses owned by women and people of color through the Small Business Administration; funding studies on traffic safety, impairment detection technology, and health effects of cannabis; restricting advertising that could appeal to children; and setting aside $100 million over five years to help states develop streamlined procedures for expunging or sealing prior cannabis convictions.
“We commend Senator Schumer for joining the growing chorus of Congressional leaders stepping forward with alternatives to the failed prohibition of marijuana,” said Aaron Smith, executive director of the National Cannabis Industry Association (NCIA). “With millions of Americans already living in states that successfully regulate adult-use cannabis and support for national legalization at record levels, this legislation would finally align federal marijuana policies with mainstream voter sentiment.”
Oklahoma O-Kays Medical Cannabis Ballot Initiative
On Tuesday, voters in Oklahoma approved a measure that will make medical cannabis legal in the state with over 56% popular support.
The referendum, known as SQ 788, will allow patients 18 and older to use medical cannabis to treat their conditions with a recommendation from their doctor, and individual under the age of 18 would need the signatures of two physicians and his or her parent or legal guardian. Physicians can recommend cannabis for any condition for which they think cannabis would be a helpful treatment.
With the addition of Oklahoma, there are now effective medical cannabis laws in 30 states, as well as the District of Columbia, Guam, and Puerto Rico. A total of 46 states allow for the medical use of cannabis in some form.
“In spite of a well-financed and misleading opposition campaign, Oklahoma voters proved that medical cannabis is no longer a controversial issue by enacting a sensible law at the ballot box tonight.” said Aaron Smith, executive director of the National Cannabis Industry Association (NCIA). “The passage of this law is not only a great victory for some of the Sooner State’s most vulnerable citizens – it will also create new business opportunities as the state’s underground market for medical cannabis is replaced by licensed businesses with the potential to create thousands of jobs and millions in new tax revenue,” continued Smith.
About SQ 788:
Oklahoma state will establish rules governing the licensing and regulation of facilities to cultivate, process, and dispense medical cannabis, and allows patients to cultivate limited amounts of medical cannabis at home.
The passage of SQ 788 marks the first time that a state medical cannabis ballot initiative has been approved by voters in an electoral primary. Observers were skeptical of the initiative passing in an unprecedented election cycle, particularly given strong and well-funded efforts from opponents to the referendum in the months before the vote.
Canada Legalizes Cannabis – When Will The U.S. Follow?
by Rachelle Lynn Gordon, NCIA Editorial Staff
On June 19, Canada became the first G7 nation and second in the world after Uruguay to fully legalize cannabis for adult use, paving the way for what is estimated to be a CAD$9.2 billion dollar industry by 2025. Canadian Prime Minister Justin Trudeau Tweeted in response to the move:
“It’s been too easy for our kids to get marijuana – and for criminals to reap the profits. Today, we change that. Our plan to legalize & regulate marijuana just passed the Senate. #PromiseKept”
The passing of the iconic Bill C-45, also known as the Cannabis Act, was met with raucous applause from the across the globe and sent marijuana stocks soaring. Provinces and territories now have until October 17 to develop and implement their own regulations for the sale of cannabis products; according to the federal statute, adults will be able to carry and share up to 30 grams of marijuana in public and cultivate up to four plants at home.
But when will the United States follow suit and become a part of the multi-billion dollar global cannabis market?
High Time for Federal Legalization
“With leading policymakers on both sides of the aisle calling for reform, there has never been more momentum behind the effort to replace criminal marijuana markets with regulated businesses, but we still have a long way to go.” says Aaron Smith, executive director for the National Cannabis Industry Association (NCIA).
Despite the fact that 29 states, as well as Guam, Puerto Rico, and the District of Columbia, have legalized cannabis for medical and/or adult-use, the plant is still illegal at the federal level. This has led to immense headaches for business owners within the legal space who only wish for their companies to thrive but are hindered by lack of access to traditional banking and fundraising opportunities and stuck operating within individual state lines.
Lawmakers from legal states have heard their constituents’ voices loud and clear and have joined together to develop the STATES Act, short for “Strengthening the Tenth Amendment Through Entrusting States.” Introduced by Senators Elizabeth Warren (D-MA) and Corey Gardner (R-CO), the bill aims to protect states that choose to legalize cannabis by creating an exemption to the U.S. Controlled Substances Act, and would remove industrial hemp from the Controlled Substances Act entirely. The bill would also allow banks to work with cannabis businesses more easily. Representatives David Joyce (R-OH) and Earl Blumenauer (D-OR) have already introduced a companion bill in the House.
When asked about the STATES Act by reporters, President Trump replied that he would more than likely support the measure, stating: “I support Sen. Gardner, I know exactly what he’s doing. We’re looking at it. But I probably will end up supporting that, yes.”
Full Legalization Needed for Market to Thrive
Adopting a federalist approach on the issue of cannabis law reform will certainly mean that individual states will be allowed to flourish, but it stops short of the immense financial opportunities that federal legalization could bring.
“The cannabis industry is vibrant and expanding rapidly, but until the threat of federal interference is removed, our economic potential is limited,” said Aaron Smith, NCIA. “Lack of access to financial services, exorbitant tax pressures, and the absence of interstate and international commerce are all problems that we can fix by turning up the pressure on Congress.”
U.S.-based companies and investors are missing out on huge financial investment opportunities due to cannabis’ current status as a Schedule I controlled substance. According to a recent white paper released by NCIA’s Policy Council, as of February 2018, 39 of the 89 federally-licensed producers (LPs) of cannabis in Canada were publicly traded, raising a total of $1.2 billion CAD in January 2018 alone. On June 20th, it was announced that Tilray would be joining Cronos Group as the second Canadian LP listed on the U.S.-based NASDAQ; behemoth Canopy Growth is listed on the NYSE.
In late 2017, Canopy announced the sale of nearly 10 percent of its stock to U.S.-based alcohol giant Constellation Brands (known for Corona and SVEDKA vodka) for a cool $191 million dollars. Now that cannabis is legal in Canada, there are certain to be even bigger deals fastly approaching that U.S. operators are missing out on.
Impressive Advancements are Being Made – Just Not in America
The United States is also being left behind in terms of research and development and intellectual property within the cannabis space. In countries such as Israel, where the federal government appropriates money to researching marijuana, rapid advancements are being made that could be groundbreaking – and have global effects. In 2017, there were more than 110 clinical trials involving cannabis in Israel – far more than any other developed nation. It was also recently revealed that China now holds around half of the IP related to hemp in the world. This puts Americans at a disadvantage as the rest of the world competes to create innovative and life-altering cannabis medicines and technology.
“R&D requires access to capital and federal and academic support,” explains Frank Lane, President of Cannabis Financial Network. “These remain elusive in the U.S. because cannabis remains federally illegal. The U.S. is slowly allowing more University backed cannabis research but at a much slower pace then Israel, Canada and have allowed research on a federal level for years. The U.S. will be playing catch up as medical cannabis continue to be adopted globally.
Exports Expected to Rule Canadian Market
While legal domestic sales won’t begin for several months, some Canadian LPs have already been exporting cannabis products to several countries that have approved the plant for medical purposes. It was announced last October that Cronos Group had reached a deal to put their products in over 12,000 pharmacies across Germany, where the government is choosing to use their own socialised healthcare systems to handle the distribution of cannabis product to patients. Obtaining these lucrative government contracts means big money for exporters, and unfortunately for entrepreneurs from the U.S. looking to cash in may be too late by the time legalization occurs.
“Many European and Latin American countries are approving cannabis for medical use,” Lane adds. “These are billion dollar markets that countries like Canada and Uruguay are seizing because they have federally legalized cannabis and become adept at developing pharmaceutical grade products.”
U.S. Canna-Businesses Must Double Down on Reform Efforts
Until the federal government ceases to consider cannabis a Schedule I narcotic, American businesses will continue to lag behind and miss out on multi-billion dollar opportunities. Therefore, it is more important than ever that the industry continue to communicate with policymakers in order to create impactful change – before it’s too late. Attending events such as the NCIA Quarterly Cannabis Caucus series is a perfect way to engage with local politicians and fellow entrepreneurs while also staying up to date on the latest legalization developments.
NCIA’s Aaron Smith re-caps another successful Cannabis Industry Lobby Days! Watch this video to hear more about NCIA Members’ experiences and why you should plan to join us next year in D.C.
Are you an industry leader looking to invest in continued national advocacy for the industry but not yet a member of NCIA?
NCIA’s staff and professional lobbying consultants work year-round in our nation’s capital to build support for the cannabis business community and the policy changes needed for our industry to reach its full potential. That work has led us to the tipping point we are seeing today and it’s all been made possible by the financial support of our members.
Adding your name to the growing list of responsible businesses behind this effort will bring us even closer to reaching the day when the cannabis industry is treated fairly under federal law.
Already a member of NCIA but want to enhance your support for this vital work? Sponsor a quarterly Cannabis Caucus event in a city near you! All profits from event sponsorships support the efforts of our robust team in D.C.
NCIA Update From Capitol Hill
NCIA’s team in Washington, D.C. and our allies in Congress have been busy advancing cannabis reforms on Capitol Hill over the last couple of weeks. The Congressional appropriations process for the FY2019 federal budget is well under way and cannabis has been at the center of some of the debates around government spending.
Last week, the Senate Appropriations Committee approved legislation that would renew protections for state medical cannabis programs when the current spending budget expires in September. The language, which was introduced by Sen. Patrick Leahy (D-VT), prevents the Department of Justice from using any resources to target medical cannabis patients or providers who are in compliance with state laws.
While this provision has been amended into the budget since 2014, this is the first time that this provision has been included in the original language of the spending bill by either chamber of Congress. Thanks to the hundreds of member-businesses that have invested in NCIA’s work on Capitol Hill over the years and the growing public support for national cannabis reforms, this policy is no longer a controversial issue for Congress.In fact, leading up to the Senate hearing, Sen. Lankford (R-OK) attempted to include a budget rider that would effectively nullify the medical cannabis protections but later withdrew it, citing lack of support.
Over on the House side, an amendment offered by Rep. David Joyce (R-OH) which would have restricted the Treasury Department from using tax dollars to sanction banks for providing financial services to the legal cannabis industry came very close to passing but ultimately did not make it into the budget package. NCIA is working with our allies in the Senate to include the banking protections in that chamber’s version of the federal budget in the days ahead.
Another champion for social justice and sensible cannabis policies, Rep. Barbara Lee (D-CA), introduced a first-of-its-kind resolution bringing attention to the racially discriminatory enforcement of marijuana prohibition. Lee’s Realizing Equitable & Sustainable Participation in Emerging Cannabis Trades (RESPECT) Resolution calls on states with legal cannabis to enact policies to ensure that people of color and communities that have suffered the most under prohibition policies have equal access to business opportunities within the emerging legal cannabis industry.
NCIA applauded Rep. Lee and the bipartisan group of lawmakers who are leading the charge on tackling this important issue.
Meanwhile, other nations may be surpassing the U.S. in enacting sensible marijuana policies. Just today, the Canadian Parliament passed legislation that would legalize adult-use cannabis for our neighbor to the North beginning in October 2018. For more information about how the U.S. cannabis industry risks falling behind other nations due to outdated federal laws, download NCIA’s recent white paper, “How the U.S. is Falling Behind in the Global Cannabis Market.”
Stay engaged with NCIA for more news about the advancement of federal cannabis reforms and to learn about how you can get more involved.
Top 5 Reasons to Attend NCIA’s Quarterly Cannabis Caucuses
by Rachelle Lynn Gordon, NCIA Editorial Staff
NCIA is proud to announce the return of our Quarterly Cannabis Caucus series this July. These informative and engaging networking events bring together industry professionals, thought leaders, and policymakers with the goal of keeping the community informed about cannabis reform developments across the country from both a political and business viewpoint. Held on Tuesdays and Thursdays in each quarter in the eight most active legal markets, the Quarterly Cannabis Caucus series is a great way to stay up-to-date in this fastly emerging space.
“People attending a Caucus can expect to meet and network with professionals from all parts of the industry including license holders, law firms, insurance providers and other ancillary businesses, all while gaining some key insights into the future of federal and local cannabis policy,” explains Thomas Rosenberger, Executive Director of NCIA’s Ohio affiliate, the National Cannabis Industry Association of Ohio.
What are the top five reasons why you should attend an NCIA Quarterly Cannabis Caucus?
Policy is Changing at a Rapid Rate
Cannabis legalization isn’t happening overnight, but lawmakers across the country at both the local and federal levels are working around the clock on a variety of bills aimed at easing restrictions and promoting business growth. It’s critical for business leaders in the community to stay informed on the latest developments both in their home states and nationwide.
“The cannabis industry is the most highly regulated industry in the country, and faces challenges at the federal level that no other industry does,” Rosenberger adds. “Getting involved with events like the Quarterly Cannabis Caucus series is key to advancing the policy reforms necessary to expand the industry and grow your business.”
Legislators Want to Hear From You
NCIA is committed to strengthening dialogue between industry professionals and legislators across the board in order to promote impactful reform. Cannabis Caucus events offer attendees the chance to voice concerns with their local lawmakers and interact with candidates who may affect future legislation.
“I’ve been going to the NCIA Quarterly Caucuses for the past few years, and I find them totally invaluable, not only for networking but also to get engaged with what is happening on a policy level,” says Shawna McGregor of Grasslands: a Journalism-Minded Agency. “I have been able to hear from local politicians about where they stand on the industry and have appreciated that insight and exposure.”
Regional Events Offer Curated Look at Local Markets
As those in the cannabis space know, each state – and sometimes even municipalities and counties within those states – that has decided to legalize the plant for medical and/or adult-use has widely varying rules and regulations. It is the intention of the Quarterly Cannabis Caucus events to offer a glimpse at both local and national developments with a keen focus on what’s happening within the regions represented.
“Because NCIA holds Caucuses in every region, they are a great place to connect with members across the country who care about getting a nascent industry legalized and regulated on a state and federal level,” adds McGregor.
“I do business in multiple states so it’s nice that I can have my team members attend their regional Caucus and then report back to me on what’s happening in their area,” states Brett Johnson, Founder of SpectrumGro. “It helps me stay ahead of the game.”
Wide-Ranging Networking Opportunities
Quarterly Cannabis Caucuses bring together professionals from every vertical within the space, from cultivators and dispensary owners to accountants and attorneys in order to impact both policy and profits. Attendees have the chance to develop business relationships with other movers and shakers within their communities.
“NCIA offers a tremendous venue for meeting with a very professional and curated group of cannabis business people,” says Scott Jordan of Vertical Companies. “I try never to miss an event if possible.”
They’re Fun!
NCIA members work hard to advance the cannabis industry every day, and Cannabis Caucus events offer the chance to have an impact while also having a good time. Caucuses are held in a relaxed yet engaging setting, and light hors d’oeuvres and a cash bar are provided, plus tickets are free for NCIA members.
Register now for July’s Quarterly Cannabis Caucus series!
America’s Own Homegrown Industry
Co-authored by NCIA and BDS Analytics
It all begins with the humble plant.
The fastest-growing industry in the United States relies 100 percent upon the simple cultivation and harvesting of one plant, cannabis sativa — its buds, its leaves, and the diversity of organic compounds the plant provides, including THC.
If the plant is grown indoors, as is most legal cannabis in the United States, it first needs a building before it ever digs roots and spreads a canopy. The building requires complicated lights, many of which are manufactured in the United States. It demands a wilderness of HVAC networks, to maintain a healthy temperature and humidity level. Irrigation systems, potting soil and soil amendments, complex sprinkler systems in case of fire, high-tech security systems — all of these and much more must be in place before the first plant begins to rise towards the light.
And these first steps produce jobs and work: real estate professionals, lawyers, accountants, bookkeepers, electricians, carpenters, plumbers, HVAC specialists, irrigation experts, sprinkler and alarm installation technicians, factory workers. Once the building is ready, the company needs horticulture experts and trimmers, among others. And it requires ongoing work, too, from electricians and other trades specialists, as things break and need to be replaced or updated. The cultivation of the plant alone is a rapidly-developing career field.
But hands-on growing represents just one small patch of the cannabis landscape. Every step along the way, from seed to store, propagates work for people in hardhats, lab coats and blazers. And all of the jobs are Made in the USA. Even more, due to the patchwork regulatory environment, cannabis industry jobs also tend to root, and stay put, within individual states and communities.
Legal cannabis today in the United States is the ultimate homegrown industry. Detailed sales data from industry market research firm BDS Analytics reveals astounding growth within states where cannabis is legal. For example, during the first quarter of 2018 in Colorado, where sales of recreational cannabis have been legal since 2014, dollar sales of concentrates in recreational shops grew by 47.4 percent compared to the first quarter of 2017. Concentrates do not represent a tiny piece of the overall recreational marketplace: During this year’s first quarter, adult use concentrates sales hit $85.35 million, and captured a full 30 percent of the recreational marketplace. That’s an enormous chunk of the state’s mature adult use cannabis market, and yet sales still expand by close to 50% within a year.
And with all of that growth, quarter after quarter, comes increased need for workers.
States with laws that replace criminal marijuana markets with regulated industries are also benefiting from significant tax revenues that support important programs like school construction, law enforcement, and drug education. According to the National Cannabis Industry Association’s , the five states that allowed adult-use sales realized nearly $800 million in combined state tax revenue alone.
Industry investment and market research firms The Arcview Group and BDS Analytics predicted in their study US Legal Cannabis: Driving $40 Billion Economic Output that the industry will hatch 414,000 jobs in a multitude of fields both directly and ancillary related to cannabis by 2021 — everything from delivery drivers to retail sales pros to extraction technicians, warehouse workers, bakers, marketing gurus, and PhDs in pest control.
The industry’s impact is certainly felt in Colorado, which began retail cannabis sales for adult use on Jan. 1, 2014 — the first in the nation to do so. Many economic experts attribute the state’s lowest-in-the-nation unemployment rate, at least in part, to the cannabis boom.
Colorado’s ascending sales results, as well as those in the other cannabis-legal states, would likely resound with even more oomph if two difficult issues could be resolved: banking, and the ability to write off business expenses for cannabis companies.
As the industry’s leading national advocate, NCIA is working hard on both fronts.
The Small Business Tax Equity Act of 2017, co-sponsored by Rep. Carlos Curbelo (R-FL) and Sen. Ron Wyden (D-OR), seeks to let cannabis companies operating legally under state law to implement business-related tax credits or deductions for expenses — the entire issue is often referred to simply as 280E (the applicable section of the tax code) as shorthand. For now, the federal government treats marijuana sales in legal states the same way it treats sales of illegally-trafficked drugs — needless to say, people illegally selling controlled substances cannot itemize tax deductions or claim business-related tax credits but NCIA believes that state-licensed businesses should not be caught up in the wide net cast by 280E.
Meanwhile, the Secure and Fair Enforcement (SAFE) Banking Act seeks to provide a “safe harbor” and additional protections for depository institutions that want to engage with cannabis companies that are in compliance with state law. Rep. Ed Perlmutter (D-CO) and Sen. Jeff Merkley (D-OR) are co-sponsors of this important legislation, which finally would, among other things, provide cannabis companies access to bank loans — taken for granted in most industries, but long outlawed in legal cannabis.
The success of the industry truly astounds despite such profound roadblocks. Success in alleviating such banking and taxation headaches would further stoke what is already the hottest industry in the country.
Research into the economic benefits of cannabis legalization and regulation is just beginning, and for now it remains too early to make definitive declarations about how legalization will influence the economic path of different communities. Undoubtedly the effects will vary from location to location — the effect on San Francisco, for example, may be entirely different from the effect on Fort Collins, Colorado.
One early study, conducted by the University of Colorado-Pueblo’s Institute of Cannabis Research, found that legalization in Pueblo, a diverse, blue-collar area about two hours south of Denver, could be responsible for the County’s recent success. In addition, the study rejected predictions that legalization would bring increased homelessness and crime to the region.
“When compared to similar communities in states where cannabis is not legal in any form, Pueblo appears to be doing better on a variety of measures,” the study says. “Overall, the positive changes that are noticed in Pueblo County, such as increasing real estate values, higher income per capita, and more construction spending may be attributed to legalization of cannabis in the state of Colorado.”
To date, cannabis still represents a fairly small slice of the employment pie in Colorado. A recent study conducted by the Federal Reserve Bank of Kansas City estimated the industry directly supports 17,821 jobs today. The study’s author writes: “Employment in the marijuana industry is a relatively small share of total employment in Colorado, but in recent years it has been one of the state’s fastest-growing industries,” adding that between 2016 and 2017 jobs in cannabis rose by 17.7 percent.
The study also noted the effect Colorado’s cannabis industry has had on state government coffers; in 2017 alone, it added $247 million to the budget. Cannabis tax receipts go to a variety of places. The state’s Building Excellent Schools Today school construction program, for example, receives the first $40 million from excise taxes on wholesale cannabis, and Colorado Gov. John Hickenlooper recently signed a bill that will drastically increase this amount. Local governments receive another 10 percent of the taxation haul.
Nationwide, the cannabis industry now supports close to 10,000 active cannabis licenses — that is, businesses that need licenses to grow, manufacture, distribute or sell the plant, according to CannaBiz Media, which tracks marijuana licenses. These “touch-the-plant” businesses are the sturdy and rapidly expanding trunk of a flourishing industry — without them, none of the other jobs and businesses that are sprouting up around cannabis sales today would exist.
But if touch-the-plant businesses are the trunks of the industry, the branches, leaves and flowers are the ancillary jobs — those that don’t grow, manufacture or sell marijuana directly. Of those anticipated 414,000 cannabis jobs by 2021, many will not sprout directly from licensed businesses. For example, software developers targeting the cannabis industry are flourishing. Entrepreneurs across the country are opening factories that make everything from plastic containers and child-safe bags for cannabis, to customized extraction equipment. New legal, public relations, marketing, and other professional services appear every day that revolve around the industry.
During a recent economic conference, Ian Siegel, the CEO of ZipRecruiter, which is a prominent job recruitment marketplace, said of cannabis: “Twenty-nine states have legalized marijuana [in some form]. There’s a 445 percent job growth in job listings in the category year-over-year.” By comparison, Siegel said other hard-charging industries like technology and healthcare lag far behind, with job growth at 245 percent and 70 percent respectively. He also noted that cannabis jobs expansion grew at a more rapid pace during Q4 2017, which saw an increase of 693 percent compared to the previous year.
As growth rockets ahead (new jobs, workers with new skills, growing tax revenues, etc.), the same trajectory is beginning to rise in Canada, where adult-use cannabis use is expected to begin later this summer. Despite Canada’s relatively small size — with a population of 35 million, it is smaller than California and dwarfed by the United States population of nearly 326 million — it enjoys a distinct advantage on the global stage: Canada allows cannabis exports. Growers and manufacturers in Canada ship cannabis to Germany, Israel and other countries that seek cannabis for their medical programs (only one other country in the world, Uruguay, enjoys legal adult-use cannabis use and sales). This is a fairly small market, for now. But as more and more countries embrace the medical, if not adult-use, benefits of cannabis, it is a marketplace destined to expand and grow increasingly dynamic. Permitting cannabis exports remains another NCIA priority.
Either way, the cannabis revolution is here, across the United States — where it all began. It is the ultimate homegrown industry, one we all should embrace, nurture and strengthen. It’s good for America, and good for America’s cities, towns and citizens.
This post was co-authored by the National Cannabis Industry Association, the largest cannabis trade association in the U.S. and the only one representing cannabis businesses at the national level and BDS Analytics, the leader in providing comprehensive cannabis market intelligence and consumer research. Learn more about NCIA by visiting: thecannabisindustry.org. Learn more about BDS Analytics by visiting: bdsanalytics.com.
Top Highlights from NCIA’s April Quarterly Cannabis Caucus Events
So far, this year has been pivotal for cannabis federal policy. From the rescinding of the Cole Memo, to the inclusion of medical cannabis protections through September and most recently, Sen. Cory Gardner’s (R-CO) commendable work defending states’ rights. Between the quantity of information about cannabis policy changes and managing your day-to-day business operations, staying up to date with accurate news on both the national and local level can be challenging. That’s why NCIA’s Quarterly Cannabis Caucuses are so important for our industry to convene, connect, and stay current on issues impacting the industry.
Thanks to our Government Relations team based in Washington, D.C., participating in our Cannabis Caucus events means that you can get accurate insights into cannabis policy straight from the Hill, as well as local guest speakers offering regional updates from the ground. You can also take advantage of a meaningful networking experience with cannabis executives in your region in a relaxed, professional setting. Cannabis Caucuses are your best chance to get even more engaged with NCIA’s policy work and industry leaders nationwide.
This April, the Quarterly Cannabis Caucus events were held in eight regions nationwide and 1000+ cannabis industry professionals participated!
Highlights from Northern California, the Northeast, and Southern California
In San Jose, Josh Drayton, the deputy director of CCIA, provided an update on CCIA’s state-wide activities representing the industry.
In Boston, we were joined by guest speaker Shanel Lindsay from the Massachusetts Cannabis Advisory Board to share the latest on the social equity program as well as state legislative updates.
In Los Angeles, we saw a huge turnout of more than 350 attendees at the historic Hollywood Roosevelt, and welcomed special guest speaker, Jennifer Hawkins, a business tax specialist at the California Department of Tax and Fee Administration. Jennifer offered an overview on California cannabis excise tax for cultivation and was joined by Alexis d’Angelo, the Southern California Membership and Outreach Liaison for CCIA.
Highlights from the Midwest, Florida, and the Pacific Northwest
In Tampa, guest speaker Sally Kent Peebles from Vicente SederbergLLC gave an update on the Florida medical marijuana program, detailing the licensing process.
At our first event in 2018 in Scottsdale, Arizona, we welcomed nearly 100 attendees to network with their regional colleagues and learn about the recent rescission of the Cole Memo. Attendees also heard from Arizona State Rep. Mark Cardenas (D-Phoenix), who introduced legislation this year that would put a adult-use measure on Arizona’s November ballot.
In Boulder, Colorado, Sen. Tim Neville (R-16th District) joined us to share a motivational talk about the future of the industry to attendees, and an update on what’s happening in the Colorado Legislature.
Upcoming July Cannabis Caucus Events
Get your tickets now!
Early bird tickets are 50% off additional member tickets and non-member tickets now through June 11!
We’re excited to announce that registration for our July Cannabis Caucus Events is now open! Join us in new regions and cities for meaningful networking opportunities with industry professionals, policymakers and government officials.
NCIA Announces Board of Directors Election Results!
National Cannabis Industry Association members have voted in the association’s annual board of directors election and nine candidates have been elected to serve on the board for the 2018-2020 term.
Congratulations to the winners, and thank you to all of the candidates for their commitment to NCIA!
Six board incumbents were re-elected this year and three new board members will be joining the leadership team following the election:
Michael Steinmetz of Flow Kana, one of California’s most innovative companies dedicated to sustainability and empowering craft cannabis farmers.
“We are thrilled to be part of the NCIA board to ensure that the United States does not fall behind in the growing global cannabis conversations. With the continued end to prohibition throughout the country, it is imperative that all the legalized states come together to help bring clear policies to the federal level.”
Mark Passerini of Om of Medicine, a long-time NCIA member and the first board member to be elected from Michigan.
“It is an honor to serve this industry and movement in the capacity of NCIA board member! NCIA will have a tremendous amount of influence on the growth and direction of the cannabis space over the next few critical years. I am humbled to be a part of this community and will vow to do everything I can to make this industry the most successful, ethical, respected, and innovative it can be! I look forward to representing the Midwest as we tear down the wall of cannabis prohibition brick by brick.”
Taylor West of COHNNABIS, leading public relations professional and former NCIA deputy director.
“I’m so grateful for the opportunity to help guide NCIA into the future. I know first-hand how hard NCIA works on behalf of its members. Together with the staff and the other incredible leaders on the board, we’re going to keep building the organization to its fullest potential, both as a powerful voice for the industry and as a valuable business community.”
The new board members-elect will join the NCIA executive director and the nine 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.
Member Blog: The Cannabis Industry Requires New Security Thinking
The legal medical and adult-use cannabis market has grown to an estimated size of 7.1 billion dollars. With this growth comes an array of new opportunities and challenges for cultivation centers and dispensaries. These entities are looking for solutions to ensure they meet regulatory requirements, secure their facilities and produce products of the highest quality.
Click to read the case study
Some of the security and operational concerns for cultivation centers may include:
Compliance with state-mandated requirements for facility and security system design
Tightly controlled access
Secured storage vaults
Complete security camera coverage, with the exception of bathrooms and locker rooms
Ability for state officials to log in to the security system remotely
Monitoring of the environment in cultivation rooms
Revolution Cannabis, a cultivation center located in central Illinois, addressed these challenges with a new access control system. The company not only met state regulatory requirements but also prevented any incidents from occurring.
To learn more about how Revolution Cannabis was able to solve their security and operational challenges, read the full case study.
Tom Dillon is a marketing associate at S2 Security, the leading developer of complete enterprise security solutions. As marketing associate he helps manage S2 Security’s marketing initiatives including content development, public relations product marketing.
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
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.
“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?”
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.
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
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.
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.
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.
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.
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.
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.
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.
Board Election Videos! Get to the know the candidates this year.
NCIA’s 2018 Board of Directors election is officially here! We’re offering new ways for candidates to tell their stories and for NCIA members to get the information they need to cast their votes. Watch the videos below to get to know some of the candidates in this year’s election. Videos are posted in the order in which they were received.
(Ballots with unique links have been sent to NCIA member companies by Monday, April 30. If you are an NCIA member wishing to vote in the 2018 Board of Directors but have not received your ballot, please contact the Membership Department at Jeremy@TheCannabisIndustry.org)
The election closes at 11:59 PM EDT on Thursday, May 31.
MCBA exists “to create equal access and economic empowerment for cannabis businesses, their patients, and the communities most affected by the war on drugs,” and NCIA’s mission is “to promote the growth of a legitimate and responsible cannabis industry.” This partnership aligns the two nonprofits’ work around respective projects and events that complement each organization’s mission.
NCIA and MCBA staff representatives discuss each organization’s upcoming efforts and events, select the best opportunities for collaboration, and work out the details of each organization’s contributions to the other’s planned scope of work for the following year. MCBA members in good standing will receive discounted registration fees to select NCIA events, including its Quarterly Cannabis Caucus series, Seed To Sale Show and Cannabis Business Summit & Expo events. MCBA and NCIA’s respective Policy Councils may also collaborate towards mutually shared advocacy goals. Hear more in this recent podcast interview with new MCBA president, Shanita Penny.
In addition, NCIA is pleased to again offer 60 scholarships, in partnership with MCBA, for free registration (valued at up $895) to NCIA’s 5th Annual Cannabis Business Summit & Expo, July 25-27, 2018, in San Jose, CA. The scholarship is for qualified applicants to support minority groups’ success within the cannabis industry.
Applicants must be:
Currently employed as a mid-to-senior level industry professional or as a cannabis-related business CEO or founder for at least one (1) year
Have demonstrated professional, advocacy, or civic/community leadership experience
Be committed to fully engage in all scholarship benefits
Have a demonstrable need for financial assistance to attend the Cannabis Business Summit
Up to 60 scholarships will be granted to the highest-scoring applicants, as determined by members of a joint MCBA-NCIA Steering Committee.
Applications are due by Midnight PDT, May 31, 2018. Awardees will be notified on June 15, 2018. Interested applicants can find more information and fill out the form to apply for the scholarship online.
New Study Proves CBD Helps with Addiction, Anxiety, Impulsivity
by NCIA Editorial Staff
A new study reveals CBD (cannabidiol) can be used as a treatment in curbing cocaine and alcohol relapse in lab animals. The Neuropsychopharmacology study from Nature Journal serves as further proof that cannabinoids do, in fact, have therapeutic value.
Much of the cannabis-focused scientific community and business owners are well aware of these benefits. However, this study is a welcomed addition to the mounting evidence in favor of treating patients with CBD- as well as calling cannabis medicine.
Mary’s Medicinals is a trusted leader in the therapeutic CBD industry. Their Chief Scientific Officer, Jeremy Riggle Ph.D. isn’t surprised with the study’s outcome but hopeful it may result in human clinical testing in the future. “While the outcome of this study is exciting, there are literally hundreds of other animal/preclinical studies that have demonstrated the potential of CBD for human health,” he said to NCIA in an exclusive interview. He added, “Until the federal government allows comprehensive double blind randomized placebo-controlled studies on human populations these studies will continue to pile up without any action or validation.”
The Executive Director of California marijuana dispensary, A Therapeutic Alternative, agrees its a step in the right direction. “When a study like this comes out it corroborates the decade of anecdotal evidence that I have been seeing first hand,” said Kimberly Cargile. One of the top reasons members come to her shop is to reduce their use of pharmaceuticals, street drugs, alcohol and cigarettes. Her go-to recommendations for new members: CBD products.
Cargile said she sees it as the fastest growing market because anyone can use CBD without the psychoactive effects of products with THC. You can learn more about the differences between THC and CBD as well as how CBD helps patients with debilitating conditions in our recent MarijuanaDoctors.com blog post.
Facts from the published study:
CBD attenuated context-induced and stress-induced drug seeking without tolerance, sedative effects, or interference with normal motivated behavior
Following treatment termination, reinstatement remained attenuated up to ≈5 months
CBD also reduced experimental anxiety and prevented the development of high impulsivity in rats with an alcohol dependence history
Mary’s customers and patients can shop online for vaping oil, topical muscle freeze, and their CBD-releasing transdermal CBD gel pen – the same method of delivery used by researchers for the new study.
Unlike products with THC, CBD can be shipped across America because CBD is found in industrial hemp. As Dr. Riggle explained, “Industrial hemp is legal across the United States and most of the world so that gives hemp-infused product manufacturers more freedom than cannabis product manufacturers. Being able to sell products online and ship them nationwide is a game changer, and it allows for plant-based remedies to quickly and easily reach those who need it most.”
The team at Mary’s is also breaking new ground in the scientific community as they were the first to release products with lesser known compounds of the plant including; THCa, CBN, and CBC. “We dedicate a significant amount of resources to R&D so that we’re able to stay ahead of the curve and pave the way in releasing products that target different human indications,” said Dr. Riggle.
This new era of cannabis research is great for patients and for business. Savvy small business owners like Cargile know that by providing consumers with the option of CBD products, their business can increase sales. In addition to providing a higher level of customer satisfaction, “CBD products hold a higher sales value and will give a larger return as opposed to high-THC products,” she explained.
In the past decade, the medical community has seen more cannabinoid-related studies than any other time in history. As the industry and medical communities continue to establish cannabis as medicine, it’s only a matter of time until the U.S. Government removes cannabis from it’s list of banned substances without medical benefits.
The political implications of the study aren’t lost on the authors. They wrote, “the findings also inform the ongoing medical marijuana debate concerning medical benefits of non-psychoactive cannabinoids and their promise for development and use as therapeutics.” For Dr. Riggle, the issue of marijuana legalization and the medical application of CBD are completely separate. “I’d like to think that the vast number of studies being conducted, and the mounting amount of evidence can help move the needle,” he told NCIA.
VIDEO: How Section 280E of the IRS Tax Code Burdens the Cannabis Industry
As tax season officially concludes, many cannabis businesses are feeling the burden of Section 280E, which can have the effect of taxing direct-to-plant businesses at a rate up to 3.5 times higher than other businesses. This unfair provision in the federal tax code affects the entire industry’s growth potential.
Watch this video below to learn more about Section 280E. Find out more about the solution: The Small Business Tax Equity Act which would allow for the fair and equal treatment of cannabis businesses.
The Small Business Tax Equity Act: Supporting a Just Cause at NCIA Lobby Days
by NCIA Editorial Staff
The American cannabis industry should be proud of generating thousands of jobs and billions of dollars in tax revenue for America- but can you imagine how much more we could do without the 280E tax burden?
While it’s an exciting time to be in the cannabis industry, our businesses are struggling under crippling federal taxation. It’s all due to Section 280E of the IRS tax code. A provision originally set out to penalize bad actors in criminal market. Unfortunately for our industry, the federal government has yet to remove the plant from its list of scheduled drugs and continues to deny cannabis as a fully legal product with medical benefits. In sum, if your business touches the plant then you’re in danger of losing your profits under Section 280E of the IRS tax code. It’s a critical time for us to come together and demand change for the industry at the federal level so our business owners can do what they do best; grow their business and give back to the community.
Despite the 280E difficulties, Portland’s MindRite dispensary was voted the most charitable cannabis store by DOPE magazine. Owners Shea and Jaime Conley said they would give even more if their business was taxed like any other industry.
MindRite can’t write off their tens of thousands of dollars in charitable donations because 280E hinders it. “It’s coming out of our profits but its just something we do and has never been up for debate because we believe it’s the business owner’s responsibility to make the community around them better, said Shea. The Conley’s also said they would jump through even more hoops and regulations because it’s a privilege to be able to work in an industry they are so passionate about. But the fact remains, “if 280E wasn’t over our heads,” he said, “we would’ve expanded our business by now.” Without 280E they would reinvest the money they paid the government. “We could have two more dispensaries open,” said Shea.
As tax professional Jim Marty of Bridge Westexplained, businesses can normally retain profits from usual business deductions such as; employee salaries, utilities, facility rent, payments to contractors, and health insurance premiums. For those in the green space, anything outside of the cost of goods sold is not deductible. In efforts to level the playing field, Jim works with clients and lobbyists at the state level to allow for deductions. “We’ve testified in front of committees,” he said, “and some state tax rates are lower than the federal.” In prior interviews with CNBC and FOX Business, his advice is to understand your business plan because 280E creates an impossible situation for legitimate cannabis businesses.
State tax rates may be lower than federal in states like Colorado and Oregon, however, it’s not enough to offset the penalty they pay at the federal level. “We are aware of every dollar that goes out and comes in, it’s a must if you want longevity for your business,” said Shea. The dispensary deals with razor-sharp profit margins in anticipation of paying their penalty to the IRS every April.
It’s frustrating for business owners and employees. Mitch Woolheiser of Northern Lights Cannabis said his business growth is stunted as a direct result of the issue. “I can’t give my employees raises. I can’t put money back into my business. Instead, I’ve been hoarding cash in anticipation of what the IRS is going to take,” he said. In total, cannabis businesses are paying taxes on gross income which often amounts to paying rates that are 70% or higher. Comparatively, the corporate tax rate established by The Tax Cuts and Jobs Act of 2017 is only 21%.
That’s why we are once again taking to the steps of Congress in May for our 8th annual Lobby Days in Washington D.C. While in D.C., Jim said he hopes to meet with President Donald Trump. He said if the executive branch has authority to reschedule marijuana, he’d ask President Trump to categorize cannabis as a Schedule 3 substance or unschedule it completely because it would ensure that section 280E would no longer apply.
We also encourage everyone in support of a healthy, prosperous cannabis industry to talk to their Senators and Representatives about The Small Business Tax Equity Act. The amendment would exempt compliant cannabis businesses from the 280E provision which we believe would inevitably lead to in an influx of employment opportunities with more competitive salaries.
Member Blog: Pitch Perfect – Some Dos and Don’ts of Media Relations
The current media landscape is rapidly changing. It was much different a decade ago, five years ago, even a few months ago. Many magazines and newspapers—both print and digital—have sadly shuttered, some have cut back on publishing, while others have slashed budgets and staffs. Many times, these cuts mean reporters have to pick up more beats (it’s not uncommon for someone to cover, say, cannabis and local sports) meaning they are buried in work and deadlines and don’t have a lot of time to mull over your pitch or idea for a story.
Your goal is to make it easy for reporters to run your news. Here are some tips on what to do and what not to do when working with reporters.
DO: Throw a good pitch
A good pitch, just like the cliché sports analogy it refers to, should be thrown down the middle. It should be clean, hittable, and offer newsworthy information. (OK, that last line isn’t about baseball, but you get the picture.) Remember how busy reporters are and rehearse your pitch before getting on the phone until you know how to sell it in less than 60 seconds. While being upfront is important, it’s also okay to be creative. Help set the stage to pique a reporter’s interest, engage his/her imagination, and find the story quickly.
Tying your pitch into a larger story, trend, or current issue is a good way to get a reporter’s attention. There are big stories both on a regional and national level going on within the cannabis industry that you can tap into. For instance, Berkeley Patients Group, a well-known dispensary in Berkeley, CA recently did press outreach around the detriment of high taxes on the legal cannabis market. Because the dispensary’s leadership team has a close working relationship with the city and deeply understands the issues surrounding high taxes on cannabis, they were able to act as spokespeople and get coverage about the lowering of the city’s cannabis tax from 10% to 5%. The coverage helped get their name out to local cannabis consumers, but also contributed their reputation as a group of leading cannabis advocates, which is one of their main goals.
Another tactic in getting coverage is providing supporting and timely data and, if possible, information about the cannabis industry a reporter may not know. And, providing high resolution images, such as product photos, spokesperson headshots, and infographics will exponentially increase your chances of getting coverage. If you can offer all this, you’ll have wrapped your story in a nice package and made it easy for a reporter to tell that story.
DO: Build a relationship with reporters
Research is absolutely necessary to your success. Know who you are pitching, what they write about, and their writing style. There’s nothing that annoys reporters more than a pitch that has nothing to do with their publication or beat. Even at one media outlet, there may be multiple reporters on the cannabis beat, such as at the Associated Press and it’s important to know what each one of them covers, whether policy, products, health, etc., so that you know the right reporter to pitch.
If you have the opportunity, take the time to actually get to know reporters before pitching them. Take advantage of media in your geographic area, go to their offices or try to meet them for a coffee. You’ll also find the press attends cannabis industry conferences, which presents a great chance to meet reporters from across the country that you may otherwise never have the chance to meet in person. Face-to-face interactions, even for a brief moment, can go a long way when the time comes for pitching them. It helps build a foundation of trust for what you hope will be a long and fruitful professional relationship.
DON’T: Be a pest
Of course, even doing all your research and building that relationship the best you can, can’t guarantee a reporter will respond or write an article. You may have to tie your hands behind your back if you are tempted to follow up too many times. While it is important to follow up and maybe offer a different angle, stalking a reporter is one of the biggest mistakes you can make. Here’s the scenario: You send a pitch. You hear nothing. Re-send it. Nothing. Maybe a third time, and this time, with a phone call. Nothing. Chances are your email has been deleted. (And if this happens a lot, please re-read DO: Throw a good pitch.) If you do get in touch with a reporter and he/she says no, it’s time to cut your losses. It’s tough, but it happens to the best of us.
DON’T: Shotgun pitch
What’s a shotgun pitch? It’s pretty much spam. You send your pitch to a long list of reporters all at once (cringe) using BCC: (cringe). This is also one of the biggest blunders you can make in media relations and reporters can spot it a mile away. It’s better to stay targeted and contact seven key reporters with a well-researched and tailored story versus throwing a general pitch at 50 media targets and hoping something sticks.
DON’T stress and DO keep it on the level
Pitching the press can be intimidating and stressful, but reporters are always looking for newsworthy stories and will welcome your pitch if it is delivered in the right way. Be transparent. Be informative. Be helpful. Be patient.
Carol Ruiz is co-founder and Partner of Higher Ground PR and Marketing. Janitor, construction crew clean up, waitress, documentary filmmaker, adjunct professor… just a few of the paths Carol Ruiz walked before finally finding what she would do for the rest of her life.
At these former gigs, as founder of NewGround PR & Marketing (a highly regarded agency in the real estate space), at Higher Ground, and at dinner tables the world over, Carol is a storyteller. Storytelling being the heart and soul of public relations, it’s no surprise that Carol was drawn to the world of PR.
Why it’s Critical For Cannabis Business Owners to Advocate for Policy Reform
by Rachelle Lynn Gordon, NCIA Editorial Contributor
Cannabis legalization reform has been in the works for years and will certainly continue for years to come due to the plant’s Schedule I status. In addition to the activists and organizations who have paved the way for marijuana legalization for decades, such as NORML, Marijuana Policy Project, and Students for Sensible Drug Policy (SSDP), cannabis business owners are now at the forefront of what will most certainly be a multi-billion dollar industry within a short matter of time. But why is it important for these cultivators, dispensary owners, and investors to be directly involved with legalization advocacy?
“Advocacy is critical at this stage, where there is still so much progress to be made at the state and federal levels,” says David Murét, Co-founder & COO of Viridian Staffing. “While I believe that national legalization is now a foregone conclusion, the form in which it takes and who it will end up benefiting is still an open question.”
At this point in time, 30 states and the District of Columbia have legalized medical and/or adult-use cannabis, each one with their own set of rules and regulations. As more and more states begin to come online and design their own programs, lawmakers will look to states where cannabis is already legal in order to learn from both successes and mistakes. At the federal level however, things are far more complicated.
While marijuana remains an illegal drug in the eyes of the federal government, certain protections are in place for businesses that are operating in compliance with their own states’ regulations. Several members of Congress representing these states have been pushing for even further protections and/or straight legalization, in spite of current Attorney General Jeff Sessions’ staunch anti-cannabis stance. In January, Sessions rescinded the Cole Memo, which had previously stated that federal funds shall not be directed towards enforcing federal cannabis policy within states that have passed for those operating in compliance with the items stated in the memo. However, this doesn’t mean that state prosecutors have to go after compliant businesses
Fortunately, the move was a moot point. A rider bill in the federal budget proposal, which is essentially a must-pass in order to prevent a government shutdown, maintained the protections that the Rohrabacher-Farr amendment (now Rohrabacher-Blumenauer amendment), which prevents the DOJ from going after state-legal medical cannabis. A bipartisan group of 62 members of Congress sent a letter to House appropriations leaders calling for action.
“We respectfully request that you include language barring the Department of Justice from prosecuting those who comply with their state’s medical marijuana laws,” the lawmakers, led by Reps. Dana Rohrabacher (R-CA) and Earl Blumenauer (D-OR), wrote. “We believe such a policy is not only consistent with the wishes of a bipartisan majority of the members of the House, but also with the wishes of the American people.” These protections are now included through September 30th.
David Sutton, President & COO of NanoSphere Health Sciences, agrees that time is of the essence in order to create new legislation that will positively impact the industry in years to come.
“Cannabis business owners and professionals have to participate in advocacy,” he argues. “No matter how many states adopt some form of cannabis legalization, the industry still needs change at the federal level. Without a federal shift in cannabis policy, operators in the industry will remain hampered and handcuffed from growth.”
Many canna-business owners are not only involved with pro-legalization policy efforts with the industry’s future in mind, but also the end consumers. High-profile cases of medical marijuana patients becoming ill due to flower containing mold and instances of widespread pathogen prescences from certain cultivators have increased efforts to prevent these products from getting to market.
“We have a responsibility to ensure this business grows in the right way,” explains Brett Johnson, Founder & CEO of Spectrum-Gro. “We have to be the adults in the room. I am always advocating for the end users – we need to guarantee safe and consistent products that are free from harsh chemicals and other pathogens. If the current leaders in this industry do not advocate for the future, there could be negative results across the board – from cultivation to the consumer.”
There are many ways business owners and professionals within the cannabis space to get involved with advocacy. NCIA Lobby Days brings hundreds of industry professionals and thought leaders to Washington, D.C. in order to tell their stories to lawmakers and push for cannabis reform. In addition, working with local organizations within their own states and jurisdictions is a wonderful way for entrepreneurs to spread awareness and potentially help build legislation in their communities.
“If we want to see how big the industry could be and how many lives can be changed for the better, you cannot simply rely on just hope, everyone needs to act,” adds Sutton. “Change comes from the masses and the masses need each and every owner and professional to participate in industry advocacy.”
Rachelle Lynn Gordon is a Minneapolis-based writer and reporter and graduate of Hamline University. She has contributed to publications such as Cannabis Now Magazine and High Times.
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After more than two months since Senate Minority Leader Chuck Schumer announced forthcoming marijuana reform legislation, this week finally saw the bill’s introduction. The Marijuana Freedom and Opportunity Act removes marijuana from the schedule of controlled substances, allowing states to determine their own cannabis policies without fear of federal interference.
On June 19, Canada 
“Because NCIA holds Caucuses in every region, they are a great place to connect with members across the country who care about getting a nascent industry legalized and regulated on a state and federal level,” adds McGregor.
In Los Angeles, we saw a huge turnout of more than 350 attendees at the historic Hollywood Roosevelt, and welcomed special guest speaker, Jennifer Hawkins, a business tax specialist at the 
Tom Dillon is a marketing associate at 
“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, 
“So many more people keep coming to Lobby Days which is amazing to see,” said Karson Humiston, founder of 
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.
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.
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. 
Evan Hicks is Marketing Coordinator for 
Carol Ruiz is co-founder and Partner of Higher Ground PR and Marketing. Janitor, construction crew clean up, waitress, documentary filmmaker, adjunct professor… just a few of the paths Carol Ruiz walked before finally finding what she would do for the rest of her life.
