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Committee Blog: Data-Driven Cultivation

Published by Elmar Mair, PhD on behalf of NCIA’s Cannabis Cultivation Committee

In any industry, whenever we try to optimize a process, the first step is to collect data to understand the dependencies and identify bottlenecks. In cultivation, we are still lagging behind, and we accept an average process loss of 10-20%. How can we change that? 

Cannabis cultivators will lead this transformation in cultivation 

Cultivating and growing plants to their full potential takes experience and specialized skills. Cannabis is no different, and many would argue, can be even more difficult to grow compared to other plants; that is because cannabis is cultivated for multiple reasons. The majority of people know that cannabis is grown for recreational and medicinal use. However, cannabis is also grown for its hemp fiber to create paper, clothing, biofuel, and food. Cannabis is an extremely fast-growing plant. The plant attracts and is susceptible to many pests, including several types of insects, fungus, and bacteria. Another challenge with cannabis is the fact that it has not been grown at scale or studied to the extent of other crops. The legal cannabis industry has only been around since 2012, when Colorado and Washington were the first states to legalize recreational use. Growing cannabis is basically like driving a race car for the first time without knowing the course ahead. Good luck. Wouldn’t you want to know more about your race car, your team, and the uniqueness of the track in order to navigate with precision and skill? That’s exactly why data is such a powerful asset in cultivation, especially for cannabis cultivators. 

Switch from qualitative to quantitative data 

A lot of stress, miscommunication, and conflict in cultivation operations are due to the subjective nature of data collection. We rely on humans to assess a crop’s state and remember it when comparing historic results. “It looks better than last time.” or “It looks good.” – imagine if you could rely on numbers when making such statements: “We have 10% larger flowers than last cycle” or “This cultivar stretched until day 25 compared to the other cultivar which stopped stretching around day 30”. These are statements that are easy to agree on and hard to challenge since they are objective facts. 

Capture a comprehensive set of data 

The other important aspect to know about data is that data becomes exponentially more valuable the more complete and comprehensive it is. If you are baking bread and you only measure the flour but not the salt, water, or yeast, there is not much value to this information. The question we need to answer is what data allows us to draw a comprehensive picture of a garden. What data do you need to remotely steer a crop and guide a team on the ground? Cultivators heavily rely on the visual feedback of plants when assessing plant health. Being able to see the plants will be key but also to get a sense of plant health in numbers to allow for quantitative comparisons. Obviously, measuring environmental parameters like air temperature, relative humidity, light intensity, and CO2 is key to operating a cultivation facility. One of the most critical parameters to optimize is the Leaf Vapor Pressure Deficit or Leaf VPD. It provides information on how the plant is transpiring and, thus, how efficiently it can grow. In order to calculate the Leaf VPD, one also needs to know the leaf temperature. Substrate properties are another key piece of the cultivation puzzle. Water content, EC, and pH are important factors to navigate. Finally, it is important to know if any pests, molds, fungus, or viruses are present in the environment. And other factors are obviously key to measuring and understanding when operating a cultivation facility, like airflow, power consumption, etc. The more data you can capture the better you can consistently bake and optimize your favorite bread. 

Leverage automation and AI to capture and process the data 

However, when collecting data we need to keep in mind that all environmental parameters affect the same plant and, thus, they are all intertwined – in general, changing one parameter requires the adjustment of all other parameters as well. At the same time, the impact of these decisions is often only assessed by looking at the final yield, which makes it impossible to derive what influence each decision had on the respective result. Like in many other fields, modern automation and artificial intelligence are fueling the transition to data-driven decision-making in cultivation. And Cannabis, as one of the highest margin crops, is at the forefront of this evolution. Automated, intelligent systems can monitor your crop 24/7, allowing you to focus on fixing the issues rather than identifying them. They can measure properties across the full canopy, which have not been accessible before, like leaf temperature, bud count, plant stress, pests, and other crucial factors. They enable your team to assess the garden and to discuss its state remotely as well as to compare historic data across growth cycles. 

Investing in data collection means making more money 

The lack of data obviously results in inconsistencies and even crop loss—in cannabis, the industry average is 15% crop loss. Translation: millions of dollars lost, which goes even higher the larger the facility. That’s a significant amount of revenue that is lost instead of being deployed in other areas for expansion or optimization. In a highly competitive industry, implementing features such as data collection to minimize crop loss and optimize yield pays off quickly and can play a huge factor in a business’s long-term success.

Committee Insights: Navigating Cultivation Environmental Requirements

Access the full recording of our #IndustryEssentials webinar, “Committee Insights: Navigating Cultivation Environmental Requirements,” and gain critical knowledge on how to effectively navigate the environmental requirements for cannabis cultivation.

Environmental compliance is a significant challenge in the cannabis industry, with a wide range of regulations varying across states and local jurisdictions. This webinar dives deep into the complexities of environmental assessments, offering cannabis cultivators actionable insights and best practices to meet these stringent requirements.

Key Topics Covered:

  • Sediment and erosion control techniques
  • Innovative water conservation strategies
  • Energy efficiency and carbon footprint reduction
  • Wastewater discharge management
  • Air quality and odor control measures

Our panel of industry experts, including Lisa Wright, CEO of Flowra, Michael Busher of Deterra Farms, and Michael Erana, Co-Founder & Chairman of One Day Cannabis, share their experiences and strategies. Moderated by Chelsea Haskins, Director of State and Local Licensing at Perfect Union, this webinar equips cultivators with the tools needed to achieve environmental sustainability and regulatory compliance.

Why Watch? Gain the insights you need to enhance your cultivation practices, increase your chances of passing environmental reviews, and establish a more sustainable and responsible operation.

Watch Now and ensure your cultivation business stays ahead of environmental regulations!

Committee Blog: Unwrapping the Complexities – The Plastic Packaging Predicament

Written by: Karen Quinto, MS Environmental Science, Willow Industries

Balancing Protection, Sustainability, and Safety in the Packaging Industry

In 2012, child-resistant packaging legislation prevented access to children while the legal cannabis market began to open up but the issue persists over a decade later and the topic is still controversial to some.

“CR [Child-resistant] packaging on flower products makes no sense. On edibles sure, but flower? Not to mention that alcohol has no CR, and I’d argue is 100x more harmful to a kid who gets into it…. It feels like a piece of legislation to make regulators feel good about themselves but is a frustration to everyone else,” voiced Tyler Works on his LinkedIn page. 

Works, the Director of Account Management for Cannabiz Media, is not alone on this sentiment.  The delicate balance between protecting products and ensuring consumer safety is continuously challenged by concerns over its efficacy and common sense. 

“When we worked on these rules, this was considered but it was more important to satisfy the minds of the people terrified of kids getting into cannabis,” chimed Gus Green, who helped states adopt the Code of Federal Regulations for the Poison Prevention Packaging Act due to cannabis being a Schedule 1 drug, therefore automatically deemed harmful to children.  “Now is a better time to breach the subject. The Poison Prevention Packaging Act states that any product deemed toxic for a child under 5 years old should be in child- resistant, and senior-friendly packaging. I worked with state agencies around the country to adopt these. The rule is a bit more specific than that if you dive in though, it’s about the ability for a child to ingest a toxic amount within a specific timeframe…[For example] travel-size Listerine bottles are not always CR, but the large bottles are always CR.My specialty was child-resistant, or specialty packaging. Packaging specialists should be the ones rewriting these rules but I often see committee members with no background in the field attempting to write them.”

CFR 16 PART 1700 refers to Title 16, Part 1700 of the Code of Federal Regulations (CFR), which specifically deals with Poison Prevention Packaging. This regulation focuses on the packaging requirements for substances that are potentially hazardous or poisonous, especially to children. The key objective is to prevent accidental ingestion by children and reduce the risk of poisoning incidents.

The regulation outlines standards and specifications for packaging design and labeling to ensure that products posing a poisoning risk are packaged in a way that makes it difficult for children to open or access the contents. This includes child-resistant closures and barriers to entry. The goal is to enhance the safety of household products, medications, and other substances that could be harmful if ingested by young children. Compliance with CFR 17 PART 1700 is essential to meet safety standards and protect consumers, particularly children, from accidental poisoning.

It seems straightforward enough but there are many problems inherent in adopting a rule that was not specifically made for the cannabis industry.

The Dose Makes the Poison

Works’ earlier sentiment is essentially that “the dose makes the poison”. This fundamental concept in toxicology states that any substance can be harmful in large quantities but may be safe at lower levels. 

Proponents of this sentiment argue that cannabis flower contains THCA, which is a non-psychoactive cannabinoid, meaning it does not produce the “high” associated with THC and cannabis use. THCA is a precursor to THC through decarboxylation, which converts THCA to THC with the application of heat, typically when it is smoked, vaporized or cooked. Therefore, ingestion of THCA is unlikely to cause intoxication in a child. Moreover, Works argued that requiring child-resistant packaging for THC flower is inconsistent with the treatment of other potentially harmful household items that are not subject to the same level of regulation, such as bottles of alcohol that do not require child-resistant packaging despite their inherent availability and quantity in a household.

Advocates for the deregulation of child-resistant packaging of flower might suggest that just like for alcohol, home environment control would suffice in controlling cannabis as a safety measure for children. Storing THC flower in an inaccessible location followed by strong educational measures urging parents to responsibly store and prohibit access could be effective in preventing accidental ingestion.

While these points are presented for the sake of argument, it’s important to reiterate that child-resistant packaging regulations are designed to prioritize child safety. The potential risks associated with accidental ingestion of THC or other substances are serious, and any discussion around exemptions should carefully consider the well-being of children. Public health and safety regulations are typically enacted with the aim of preventing harm and protecting vulnerable populations. But this is not the only issue people have in mind regarding packaging. 

Child-resistant packaging for flower not only seems problematic because it is incongruent with regulations for other harmful household substances including alcohol but also because it creates trash. A lot of it.

The Single-Use Abuse

The Sustainable Cannabis Coalition estimated that in 2020, the US Cannabis Industry used almost one billion pieces of single-use plastic that mostly ended up in landfills.  Research and testing activities–including those for the cannabis industry–adds up to over 12 billion pounds per year. The majority of these plastics cannot be recycled due to their diverse material composition. A whopping 40% of total emissions are attributed to our procured goods and services.

Packaging materials, particularly plastics, are composed of various substrates such as polyethylene, each with distinct properties. Sustainability concerns arise as certain laminated plastics prove difficult to recycle. Challenges persist, especially in the context of single-dose packaging and restrictions on child-resistant reclosable plastics.

“People want to recycle bioplastics but they don’t have good barrier properties,” Gus Green states. “There is also a problem with the idea of biodegradables because they are designed to break down. Biodegradable plastic is not allowed in child-resistant reclosable plastics because the mechanism will fail because the material is frail, but laminated plastics that have great barrier properties cannot be recycled.” 

The Sustainable Cannabis Coalition blog announced that in 2021, CULTA, a cannabis company, partnered with The High 5 Initiative, a non-profit company that’s working to keep Polypropylene #5 plastics out of landfills through recycling. Patients can return packaging to CULTA, where the initiative team sorts and processes the materials, recycling over 95% and transforming #5 plastics into Post Consumer Resin (PCR) for manufacturing other products.

Despite the environmental benefits, transitioning to eco-friendly packaging faces challenges, including cost implications. For instance, CULTA notes that switching to eco-friendly cellulose packaging would increase costs, making it economically challenging for cannabis companies, coupled with perceived quality issues with thinner and more pliable cellulose bags (which may seem cheaper, thus impacting consumer acceptance).

The Future of Plastic Waste in Cannabis 

New metalized child-resistant compostable cellulose film bags have entered the market for the first time and offer the opportunity for both home and industrial composting, including the cannabis industry.

“In Canada, Wyld has adopted child-resistant compostable pouches. Many edibles brands are moving to an inner-outer pack combo with individually-wrapped pieces inside a mother bag, similar to many traditional candies.  Think caramels, Starburst, cough drops, Hershey’s Kisses, Reese’s cups, etc. – cannabis consumers want fresh products, and individual wraps accomplish that.  To avoid more single-use plastics, NatureFlex is seeing significant, promising interest,” Elisha Hedin, a regional sales manager from Futamura, manufacturer of NatureFlex explained. “Compostable films can actually have a very good barrier and NatureFlex is an ideal packaging material for both gummies and flower.  There’s a perception in the industry that compostable materials are low quality and that’s simply not true.”

Wyld, a Climate Neutral Certified brand, offers the cellulose-based packaging made from cellulose film laminated to a biosealant for their gummies. In home composting, this metalized compostable film degrades completely in 12-16 weeks. In industrial settings, it takes twice as fast to convert the cellulose into water, CO2, biomass, and mineral salts in just 6-8 weeks.

Meanwhile, in the research industry, Polycarbin has touted itself as the world’s only circular economy for single-use lab plastics. This California-based company helps labs achieve their sustainability goals by diverting these valuable materials from landfills and incinerators into the next generation of low-carbon lab products.

“Much like with food-tech and biotech, the cannabis industry is driven by a growing dependence on single-use plastics. From the harvest fields to the QC and QA laboratories, it is more important than ever that this industry consider the carbon footprint associated with its supply chain,” James O’Brien, CEO of Polycarbin emphasized. “Through responsible waste stream management and sustainable procurement, the cannabis laboratories can significantly attenuate the environmental impact of a major source of its scope three emissions—fossil fuel-derived, single-use plastics.

As the packaging and research industry grapples with the complex interplay of material properties, sustainability challenges, and stringent safety standards, a delicate balance must be struck. Navigating the evolving landscape requires continuous innovation, collaboration, and adherence to regulations, ensuring that the packaging not only safeguards products but also contributes to a sustainable and secure future.

Committee Blog: A Guide to Navigating Cultivation Environmental Requirements

Navigating environmental requirements and reviews can be one of the most challenging and costly aspects of obtaining a cannabis cultivation license. Environmental standards and regulatory requirements differ from state to state and within local jurisdictions. While regulations may vary, cannabis operators encounter similar environmental requirements nationwide. Environmental reviews and impact assessments require an evaluation of cultivation policies and operations for sediment and erosion control, water usage, wastewater discharge, energy efficiency and carbon footprint, air quality, and odor control. This guide will aid operators in establishing the best practices for these environmental concerns to create a smoother environmental review process for the cultivator. 

Sediment and Erosion Control

Sediment and erosion control methods are required for outdoor cultivation to ensure the facility has a comprehensive mitigation plan to prevent adverse effects the outdoor crop may cause to the land. Sediment controls are structural measures intended to complement and enhance the implemented erosion control practices and reduce any sediment discharge. Erosion control is a soil stabilization process consisting of mitigating measures to prevent soil particles from detaching and moving into stormwater runoff. Ensuring this compliance may include implementing Best Management Practices (BMPs) for Sediment and erosion control. These BMPs should be implemented before the onset of the rainy season, typically in October. Sediment and erosion control devices and measures should be replaced when they deteriorate. 

Sediment Control BMPs

  • Silt fences
  • Fiber rolls
  • Hydroseeding
  • Sediment Trap
    • Inspect the trap on a routine schedule for litter and debris
    • Remove the sediment built up in the trap and sprinkle it lightly over vegetated areas to increase soil fertility
  • Gravel bag berms
  • Sandbag barriers
  • Straw bale barriers
  • Observation station on the property for visual monitoring of sediment pollution
  • Add gravel to dirt roads
  • Add stormwater detention basins

Erosion Control BMPs

  • Vegetative Swales & Buffers
    • Swales should be trimmed to prevent restriction of flow
    • Routinely monitor for any debris and overflow
    • Buffers should be added to the edges of parking lots and storage areas
  • Placement of straw mulch over disturbed land
    • Should be replaced often
  • Soil binders
  • Vegetation preservation
  • Vegetation replacement for any disturbed areas that will not be in use
    • Seed mixes containing native grass and wildflowers
    • Hydroseeding
  • Earth dikes

Waste Usage and Wastewater Discharge

Water usage and wastewater discharge management plans are required to ensure the cultivation facility legally and efficiently obtains its water and that no hazardous water is dumped onto the land surface, directly into the ground, or into another body of water where it could negatively impact the environment. Water usage may require obtaining documentation demonstrating you own the water rights to your facility or property. Cultivations connected to their municipalities’ water district may only need to report that information to meet this requirement. Such a facility may also need to contact its water provider to create a water rights letter showing the operator has the right to use that water. Cultivations that use other water supply methods, like wells, may need to provide a detailed report of their water quality and have well flow testing performed. Depending upon your state, you may also need to show how your water will be conserved. A cultivator may be required to create a water conservation plan detailing the procedures implemented at the cultivation site to conserve water. Wastewater discharging typically will require a cultivation site to apply for a Wastewater Discharge permit. Wastewater discharging plans that thoroughly explain how the cultivation will discharge any hazardous wastewater and what mitigating practices will be implemented to prevent wastewater from entering the environment untreated are also frequent requirements for this process.

Water Conservation Methods

  • Recycling irrigation systems
  • Automated irrigation systems
  • Precision emitters
  • Watering more frequently throughout the day in smaller amounts
  • Planting pots 
  • Divert the dehumidifying and cooling system’s piping into a holding tank to reuse the water for irrigation
  • Use organic mulch around each plant to prevent moisture loss
  • Rainwater harvesting, if allowed in your area
  • Substrate sensors to monitor water saturation

Wastewater Discharge Measures

  • Using planting pots to prevent excess runoff
  • Vegetative swales and buffers to capture wastewater
  • Recycling irrigation systems with reverse osmosis and ultrafiltration or thermal evaporation 
  • Recycling systems that don’t have a filtration system can hold any hazardous wastewater in a holding tank and have it transported to an approved wastewater treatment facility
  • Substrate sensors for the prevention of excess runoff
  • Stormwater runoff prevention
    • Store pesticides, chemicals, and fertilizers indoors and away from any outdoor growing areas and in approved containers
    • Covering wastebins 
    • Divert stormwater away from any stockpiled materials

Energy Efficiency and Carbon Footprint 

Cultivation energy efficiency and carbon footprint reporting are becoming more popular among regulators as the country moves toward environmentally friendly practices. Energy efficiency may require the cultivation site to comply with specific requirements for equipment and lighting. Many licensing bodies also require an energy efficiency plan that details what mitigating measures the operator will implement to reduce energy costs. Carbon footprint reporting may require greenhouse gas emission (GHG) reporting, which can require a cultivator to purchase carbon offsets. Green energy plans are sometimes required; these plans demonstrate how the cultivation will utilize green energy options to reduce their carbon footprint. 

Energy Efficiency

  • LED lighting 
  • Automated irrigation systems
  • Automated blackout curtains for greenhouses 
  • On-site composting 
  • Low-flow fixtures
  • Split ductless air condition
  • Chilled water systems for dehumidification
  • Modulating hot gas reheat forced air systems
  • Sensor motion lighting in rooms that aren’t frequently entered
  • Adjust lighting schedules based on the weather if using mixed-light
  • Installing solar panels
  • Request an energy efficiency review from your utility provider 

Carbon Footprint

  • Sign up with a clean energy provider that partners with your utility company and reinvests the funds from the program into clean energy initiatives in your state
  • Avoid generation use wherever possible
  • Install renewable energy sources at your facility, like solar panels 
  • Replace pesticides with biocontrols using predatory insects
  • Use recycled or biodegradable packaging, even for wholesale flower
  • Cultivate companion plants that deter pests and attract beneficial insects
  • Reduce or eliminate lighting requirements by establishing a greenhouse or outdoor cultivation facility

Air Quality and Odor Control 

Air quality reviews may be triggered for cultivation facilities, including the requirement to obtain an air permit. Air permits allow an operator to release a limited amount of pollution within certain restrictions. Air quality reviews for cultivations are triggered by several factors based on the state requirements, some of which may include drying, processing, generator use, fugitive emissions, and pesticide application. If a cultivator is required to obtain an air permit, they will be licensed to perform those activities. Cultivations going through air quality reviews may need to provide an Air Quality Control Plan outlining the mitigation efforts the cultivator will make for air quality pollution. Odor Control Plans are one of the most common regulatory requirements for cannabis businesses. If your environmental review includes odor control and you operate an outdoor cultivation site, you may be required to conduct an odor control study on your facility. These studies use wind patterns to measure the distance the odor from your cultivation will travel. Based on your state or local jurisdiction’s requirements, an odor control study may require you to move the border of your canopy. Conversely, an odor control study may prove that your cultivation will not be a nuisance due to odor pollution, and no mitigating measures will be required. Odor control plans should detail precisely what mitigating measures the cultivator will implement and, if available, data on how effective those measures will be. 

Air Quality Control Plans

  • Wetting the surface of dirt roads during the dry season
  • Encourage ride-share amongst your employees
  • Reduce VOCs wherever possible 
    • This can include timing harvesting to reduce ozone impact
  • Include a chemical usage plan that describes how pesticides, fertilizers, and other agents will be stored and disposed of in alliance with the manufacturer’s recommendations
    • Detail how you will maintain Safety Data Sheets (SDS) on all chemicals at the facility 

Odor Control Plans

  • Indoor cultivations and greenhouses can implement the following measures:
    • Use carbon filters 
      • Explain in your plan how carbon filters work, provide data on their filtration rates, which you can locate in the manufacturer’s guide, and how often you will replace them
    • Use wet scrubbers for indoor cultivation or greenhouses
      • Explain how the air is treated when it passes through the scrubber
    • Implement biofiltration measures
      • Explain how the air will pass through soil, mulch, or other organic matter to filter the air
    • Use oxidization treatments through your facility’s ventilation system 
      • Explain how the process of oxidization removes odor 
    • Have open communication with your neighbors regarding odor 
      • Explain how you will speak with your surrounding neighbors about any odor concerns and request your neighbors contact you if they do smell odor so you can begin an assessment into structural or equipment failures and, if needed, implement further mitigating measures to your plan
  • Outdoor cultivations can implement the following methods:
    • Hire a professional to do an odor study to prove your facility’s compliance
    • Plant fragrant flowers around the exterior of the site 
    • Use oxidization treatments through high-pressure misting devices around your cultivation area 
      • Explain how the process of oxidization removes odor 
  • All cultivation types should have open communication with surrounding neighbors regarding odor
    • Explain how you will speak with your surrounding neighbors about any odor concerns and request your neighbors contact you if they do smell odor so you can begin an assessment into structural or equipment failures and, if needed, implement further mitigating measures to your plan

As regulatory requirements vary across the country, cultivators should carefully read their regulations and contact state and local departments for guidance on requirements specific to their operations. A thorough understanding of what plans must be created, studies performed, and special permits obtained will create a smooth environmental review process. Join the upcoming NCIA webinar from the Cannabis Cultivation Committee to dive deep with industry professionals on navigating environmental reviews across the United States.

Committee Blog: Discovering the Potency of Data – How Cannabis Brands Can Harness Audience Insights to Elevate Success

In the rapidly evolving landscape of the cannabis industry, understanding your audience is critical to staying ahead of the curve. For brands, this can be difficult given retailers hold the keys to their customer data. However, through the utilization of digital marketing, cannabis brands have the opportunity to glean invaluable insights from their audience data. In this comprehensive breakdown, we’ll explore how cannabis brands can leverage audience data from programmatic advertising, email campaigns, SEO and more to gain a deeper understanding of their customers and enhance their overall success.

The Power of Data in the Cannabis Industry

Data is the cornerstone of informed decision-making, and in the cannabis industry, with its regulatory restrictions and shifting consumer preferences, its importance cannot be overstated. By harnessing audience data from digital marketing campaigns, cannabis brands can move beyond conjecture and gain actionable insights into their customers’ behaviors, preferences, and needs.

Analyzing Audience Demographics

One of the primary benefits of digital marketing is the ability to gather detailed demographic information about your audience. Through tools like Google Analytics, social media insights, campaign reports, and customer relationship management (CRM) platforms, cannabis brands can paint a vivid picture of their customer base. From age and gender to location and interests, this demographic data provides invaluable insights into who your customers are and how best to engage with them.

Understanding Consumer Behavior

Beyond demographic data, digital marketing campaigns offer a window into consumer behavior. By tracking website traffic, engagement metrics, and conversion rates, cannabis brands can gain a deeper understanding of how customers interact with their brand online. This insight allows brands to identify trends, uncover pain points, and optimize their digital presence to better meet the needs of their audience.

Personalizing the Customer Experience

One of the most powerful applications of audience data is in personalizing the customer experience. By segmenting their audience based on demographic information, cannabis brands can tailor their messaging and offerings to resonate with individual customers. Whether through targeted email campaigns, customized product recommendations, or educational content, this level of personalization not only enhances the customer experience but also drives engagement and loyalty.

Optimizing Marketing Strategies

Audience data also serves as a compass for guiding marketing strategies in the cannabis industry. By analyzing the performance of various marketing channels, content types, and messaging approaches, brands can identify what resonates most with their audience and allocate resources accordingly. Whether it’s investing more heavily in content creation, refining digital advertising tactics, or experimenting with email campaigns, data-driven insights enable brands to optimize their marketing efforts for maximum impact.

Predicting Trends and Forecasting Demand

In addition to informing day-to-day marketing decisions, audience data can also provide valuable insights into larger industry trends and consumer preferences. By analyzing macro-level data trends across their customer base, cannabis brands can identify emerging market opportunities, anticipate shifts in demand, and stay ahead of the curve. Whether it’s launching new product lines, expanding into new geographic areas, or pivoting to meet evolving consumer needs, data-driven forecasting empowers brands to make informed strategic decisions.

Enhancing Product Development

Finally, audience data can play a pivotal role in shaping product development strategies within the cannabis industry. By soliciting feedback from customers through surveys, reviews, and social media interactions, brands can gain valuable insights into product satisfaction, preferences, and needs. This feedback loop not only informs the development of new products but also enables brands to refine existing offerings based on real-time customer input, ensuring that their products remain relevant and competitive in a rapidly evolving market.

Conclusion

In conclusion, audience data is a potent asset for cannabis brands seeking to unlock the full potential of their marketing efforts. By analyzing demographic information, understanding consumer behavior, personalizing the customer experience, optimizing marketing strategies, predicting trends, and enhancing product development, brands can gain a deeper understanding of their customers and elevate their overall success in the cannabis industry. As digital marketing opportunities continue to evolve, brands that harness the power of data will undoubtedly emerge as leaders in this dynamic and rapidly growing market.

Committee Insights: Dabinar – Dabbing 101

Access the full recording of our #IndustryEssentials webinar, “Dabinar – Dabbing 101,” and dive into the fascinating world of dabbing with insights from industry experts.

Whether you’re new to dabbing or looking to enhance your technique, this special edition webinar, presented by NCIA’s Cannabis Manufacturing Committee, is your go-to resource. Our expert panel from Summit Concentrates, MACH Technologies, Entourage Cannabis, and Tahoe Wellness Center breaks down everything you need to know about dabbing, from the basics to advanced techniques.

What You’ll Learn:

  • The fundamentals of dab rigs and concentrates
  • How to select the right equipment for your needs
  • Temperature control and dosage best practices
  • Advanced dabbing techniques and safety considerations

No matter your experience level, this webinar offers valuable insights to elevate your dabbing experience.

Why Watch?
Gain the knowledge and confidence to refine your skills, select the right products, and enjoy a safe and enjoyable dabbing experience.

Watch Now and take your dabbing to the next level with expert guidance!

Navigating the Cannabis Industry: Leveraging Data and News for Success

In the ever-evolving landscape of the cannabis industry, staying ahead of the curve is essential for businesses looking to thrive. With the National Cannabis Industry Association (NCIA) providing exclusive access to valuable resources and partner discounts, entrepreneurs have a powerful toolkit at their disposal. In this blog, we’ll delve into the insights shared by industry experts during a recent NCIA #IndustryEssenitals webinar, focusing on the importance of leveraging data analytics and news aggregation to drive growth and navigate industry challenges.

Understanding Market Trends with New Frontier Data:

Amanda Reiman, an expert in data-driven decision-making, emphasized the critical role of market insights provided by New Frontier Data. She highlighted the significance of identifying trends, opportunities, and challenges within the cannabis industry. By leveraging data analytics, businesses can make strategic decisions to optimize marketing efforts, enhance product offerings, and improve overall performance. Exclusive member benefits offered by New Frontier Data provide NCIA members with access to invaluable resources, empowering them to stay ahead of the competition.

Driving Growth with Data-Backed Strategies and BDSA:

Lexie Barton expanded on Amanda’s insights by focusing on the practical applications of data analytics, particularly through BDSA. She discussed the importance of optimizing sales strategies and harnessing the power of data to inform product innovation, pricing strategies, and market expansion. By maximizing sales with BDSA’s insights, NCIA members can gain a competitive edge and drive business growth in a rapidly evolving market.

Meeting Information Needs with Cannabis NewsHub:

Samantha Hobbs shed light on the role of Cannabis NewsHub in meeting the information needs of cannabis businesses. By centralizing industry news and delivering tailored updates directly to businesses, Cannabis NewsHub streamlines the process of staying informed and ahead of industry developments. With access to the latest news and updates, businesses can anticipate challenges, identify opportunities, and adjust their strategies accordingly.

Optimizing Business Decision-Making with NCIA:

Aaron Smith, Co-Founder & CEO of NCIA, underscored the importance of leveraging professional resources and strategic partnerships to optimize business decision-making processes. He emphasized the value of NCIA membership in driving sustainable growth and success within the cannabis industry. By accessing exclusive partner discounts and resources, NCIA members can make informed decisions, mitigate risks, and capitalize on emerging opportunities.

Conclusion:

In conclusion, the insights shared by industry experts during the most recent NCIA #IndustryEssentials webinar highlight the critical role of data analytics and news aggregation in navigating the complexities of the cannabis industry. By leveraging tools provided by partners like New Frontier Data, BDSA, and Cannabis NewsHub, businesses can make informed decisions, identify growth opportunities, and stay ahead of the competition. Additionally, NCIA membership offers exclusive benefits and resources that further empower businesses to succeed in the dynamic cannabis market. Stay informed, stay ahead, and maximize your business potential with NCIA and its esteemed partners.

Ready to dive deeper into the world of cannabis industry insights? Be sure to watch the full recording of our webinar for a comprehensive look at leveraging data and news for success in this ever-evolving market. Click the link below to access the complete program and gain access to exclusive tips, strategies, and resources tailored specifically for cannabis businesses.

Call to Action:

Ready to leverage data and news for success in the cannabis industry? Join NCIA and gain access to exclusive partner discounts and resources. Strengthen your position in the industry and unlock the tools you need to thrive in the ever-evolving cannabis market. Don’t miss out on this exclusive opportunity to maximize your business potential with NCIA and its esteemed partners.

 

Member Blog: Colorado’s Evolving Cannabis Testing Regulations

Among the first two states to legalize and the first market to open, Colorado has had adult-use cannabis regulations in place for more than a decade now and helped set a standard for all the programs that came after it. 

But Colorado’s testing regiment, like the industry, is ever evolving, with the state testing for additional pesticides beginning this year, for example. In addition, the state’s new “reduced testing allowance” could make the whole process easier for manufacturers in good standing. 

Like many states, Colorado requires testing of the final product, be it flower, edible or pre-roll, which means not only must your flower be clean, but everything else you put into your products as well. In the case of pre-rolls, that means the paper used in the pre-rolled cones, as well as the filter tip. 

All products must be screened by a state-licensed and accredited laboratory for the following:  

  • Moisture Content and water activity; 
  • Residual solvents and processing chemicals; 
  • Residual pesticides; 
  • Microbial impurities; 
  • Mycotoxins; 
  • Foreign materials; 
  • The “big four” heavy metals (arsenic, cadmium, lead and mercury); and 
  • Cannabinoid potency. 

WATER ACTIVITY 

Like every state, Colorado testing requires laboratories check for water activity because high amounts of moisture can create an environment with the potential for mold growth.  

Any water activity above 0.70 Aw creates the conditions for mold to grow, which can be harmful if consumed, which is why Colorado caps water activity at 0.65 Aw in flower and pre-rolls. 

PESTICIDES AND SOLVENTS 

Colorado also requires testing for residual pesticides and other chemicals and has been slowly ramping up its required pesticide testing.  

For example, on January 1, 2023, the state tested for a total of 13 different pesticides. By July 1, 2023, that number had increased to 28. But new regulations going into effect this year drastically increase that number.  

Beginning July 1, 2024, state law requires labs to test cannabis products, including completed pre-rolls, for 99 different pesticides, each with their own actionable limits that can cause a whole batch to be destroyed. 

Additionally, the state requires cannabis concentrate products, including those used in infused pre-rolls that combine flower with a concentrate for increased potency and flavor, to be tested for residual solvents. 

The state requires testing and provides actionable limits for 13 specific solvents that can be used to make extracts and concentrates, as well as requiring “none detected” for “any other solvent not permitted for use.” 

HEAVY METALS 

The Centennial State also requires testing for the heavy metals mercury, cadmium, lead and arsenic. All four metals are toxic to humans, even at small doses, and can damage all the body’s vital systems, including pulmonary, reproductive and even the central nervous system.  

Testing for heavy metals is especially important because cannabis plants are a well-known bio-accumulator that absorbs and collects heavy metals from the soil in which it grows.  

For all inhalable products, including pre-rolls, the state sets the pass/fail actionable level at 1.5 parts per million (PPM) for mercury and arsenic, 0.5 PPM for cadmium and 1 PPM for lead.   

MICROBIALS AND MYCOTOXINS 

But while heavy metals are dangerous, they do not pose the greatest risk to human health among the testing. That distinction is reserved for microbials and mycotoxins. 

Among the microbes – bacteria and fungus – for which Colorado requires testing are salmonella, Staphylococcus aureus and e coli. There is also a total yeast and mold limit. 

Mycotoxins are a toxic compound produced by molds, such as Aspergillus, and can suppress the immune system and cause liver damage. Testing for mycotoxins help ensure cannabis products are safe for human consumption.  

Colorado requires testing for two classes of mycotoxins, Aflatoxins and Ochratoxin A, each with an actionable limit of 20 PPM. Both have properties that can alter DNA and potentially cause the formation of cancer cells.  

PRE-ROLL TESTING 

But it’s not just the flower that needs to be tested in Colorado. Products must be tested in their final form, which means that pre-rolls, for example, must be tested after they have been packed, so the paper has to be as clean as the flower. And with no regulations or requirements on the testing of rolling papers themselves, several manufacturers have run afoul of the rules because of untested rolling papers or wraps. And testing by SC Labs, one of California’s licensed testing labs, found that 11% of rolling papers tested during a recent study would fail testing. So even if you are packing your own pre-rolls, it’s important to make sure the paper you choose is tested and clean. 

Colorado has also had issues with this in the past, particularly in palm leaf wraps and blunts. In 2022, the states Marijuana Enforcement Division issued a recall for King Palm products due to unsafe mold and yeast levels found in the products. 

“Take due diligence to make sure your product is viable,” says Custom Cones USA Compliance Manager André Bayard, noting that manufacturers should work with suppliers that are working to set industry standards. “Any one issue can be detrimental to your brand reputation.” 

REDUCED TESTING ALLOWANCE 

Recognizing the unique challenges and cost of testing, Colorado has introduced new reduced testing allowances, including one tailored for pre-roll cannabis products. This allowance enables cannabis manufacturers to submit composite samples for testing, rather than subjecting each individual batch of pre-rolls to separate testing.  

For example, a manufacturer may achieve a Reduced Testing Allowance for contaminant testing for a specific product, like pre-rolls, if every production batch that it produced during at least a four- to eight-week period passed all contaminant tests. However, if those pre rolls are produced using different input materials, such as a different cannabis category (e.g. flower or trim), different wrapper materials, different processes or different equipment, they must get a separate Reduced Testing Allowance. 

Additionally, effective July 1, 2024, to achieve or maintain a Reduced Testing Allowance for microbial contaminants, a cultivation facility must have a Hazard Analysis and Critical Control Point (HACCP) System in place. An HACCP must contain elements defined in ASTM D8250-19: “Standard Practice for Applying a Hazard Analysis Critical Control Points (HACCP) System for Cannabis Consumable Products” that addresses each product type for which a microbial contaminant Reduced Testing Allowance is sought. 

It’s important to highlight that not all cannabis products qualify for this reduced testing allowance, and pre-roll manufacturers must meet specific criteria to be eligible for this exemption. For example, to get a reduced testing allowance for microbial testing, a company must maintain cleaning records and maintenance records.  

Reduced testing allowances are valid for one year. 

It’s a complicated program to be a part of, but well worth it for manufacturers who have their procedures locked in, as well as a supplier that also tests their pre-rolled cones and tubes to the highest standards to ensure passage of these important tests. 

FINAL THOUGHTS 

Colorado’s pre-roll cannabis testing regulations play a vital role in safeguarding public health and ensuring consumer confidence in the state’s legal cannabis industry. And from a business standpoint, a testing failure can be costly, especially for smaller businesses, and can follow a company and its products even after the issue is corrected. 

Make sure your suppliers take the same care as you do to ensure passage of all required tests. And always ask for COAs.  

Member Blog: Creating Cohesive Cannabis Teams – How AI-Driven Hiring Promotes Diversity and Innovation

Creating cohesive teams in the rapidly growing cannabis industry involves overcoming unique recruitment and hiring challenges, including evolving regulatory landscapes and societal misconceptions. The shift from traditional recruitment methods to innovative, AI-driven approaches marks a fundamental transformation in how companies identify, evaluate, and onboard talent, promising a more efficient, equitable, and effective hiring process.

Traditionally, the cannabis industry, like many others, relied on posting job openings on industry-specific job boards, sifting through resumes, conducting face-to-face interviews, and relying on gut instincts. These methods, while having their merits, come with significant limitations, especially in an industry as specialized and fast-paced as cannabis. The reliance on subjective assessments and the potential for bias, along with the inefficiency and high risk of overlooking culturally fit candidates, highlight the need for a new approach.

The adoption of AI-driven recruitment strategies represents a significant leap forward. Platforms leveraging advanced technologies can streamline the hiring process and enhance the quality of matches between employers and candidates. For instance, AI platforms such as jobworX ai, can analyze vast amounts of data quickly and accurately, evaluating candidates across various workplace personality factors, and providing employers with actionable insights into candidate capabilities, personality traits, and potential cultural fit. These insights are crucial for aligning recruitment choices with organizational goals and the unique demands of roles within the cannabis industry. For instance, predictive analytics can forecast a candidate’s success in a particular role, while natural language processing (NLP) and machine learning (ML) enhance the efficiency of sifting through applications, identifying top talent based on predefined criteria This comprehensive approach allows for a more nuanced understanding of each candidate’s potential fit within a given role and organizational culture, addressing the unique challenges of the cannabis sector.

AI-driven recruitment strategies reduce reliance on subjective judgments, mitigate the risk of bias, and expedite the selection process. By focusing on personality traits and cultural fit alongside technical qualifications, these platforms enhance job satisfaction and retention rates. This holistic approach is invaluable in the cannabis industry, where adaptability and alignment with the company’s mission are crucial.

Moreover, AI tools facilitate a deeper understanding of market trends and candidate expectations, allowing cannabis companies to adapt their hiring strategies in real-time. This adaptability is essential in a sector where regulatory landscapes and consumer preferences constantly shift. By harnessing the power of AI, cannabis employers can navigate these complexities with confidence, ensuring their teams are not only compliant but also diverse, innovative, and aligned with the company’s mission and values. In essence, AI transforms data into strategic decision-making power, setting the stage for sustainable growth and competitive advantage in the cannabis industry.

Navigating regulatory frameworks and societal misconceptions is a significant challenge in the cannabis industry. AI tools can help businesses make hiring decisions that are compliant, fair, and unbiased. By automating and streamlining the vetting process, AI ensures that all applicants are evaluated against the same legal standards, reducing the risk of non-compliance. 

Looking toward the future, several key predictions and trends emerge, highlighting how AI technologies will continue to revolutionize hiring in the cannabis industry. Predictive candidate matching, an enhanced focus on cultural and personality fit, streamlined and efficient hiring processes, increased accessibility and equity in hiring, and data-driven insights for continuous improvement are all trends shaped by AI integration. These advancements promise to reshape the landscape of recruitment and talent acquisition, making the process more efficient, equitable, and effective.

Building cohesive teams and maintaining a strong organizational culture is crucial for success. AI-driven recruitment tools, such as jobworX.ai, are revolutionizing the way companies approach this challenge by focusing on matching candidates with roles that align with their personalities and values. Kristina Etter, a freelance writer and journalist based in Colorado, highlighted in her article, Cannabis Hiring 2.0: jobworX ai’s Game-Changing New Approach, the innovative approach to recruitment within the cannabis industry via jobworX.ai, employing a Personality Assessment tool to match job seekers’ personality traits with the specific needs of cannabis roles. This method boosts job fit, worker satisfaction, and organizational synergy. It highlights the transformative role of AI in modernizing hiring practices by leveraging AI and personality assessments to ensure that candidates are not only technically skilled but also culturally and personally compatible, marking a significant advancement towards more streamlined and harmonious recruitment processes in the cannabis sector.

By leveraging advanced AI algorithms and comprehensive personality assessments, these platforms provide a data-driven approach to identifying candidates who not only possess the necessary skills but also fit seamlessly into the company’s culture. This emphasis on cultural fit is particularly important in the cannabis industry, where passion, innovation, and adaptability are key drivers of success.

AI-driven tools analyze candidates’ workplace personality traits, such as teamwork, leadership, and interpersonal dynamics, to determine their potential for contributing to a positive and collaborative work environment. By prioritizing these factors alongside technical qualifications, companies can build harmonious teams that foster a sense of shared purpose and drive organizational growth.

Moreover, by streamlining the recruitment process and reducing the risk of bias, AI-driven platforms help create a more diverse and inclusive workplace. This diversity of thought and experience is essential for driving innovation and navigating the unique challenges of the cannabis industry.

In conclusion, the integration of AI-driven hiring strategies within the cannabis industry marks a pivotal evolution in how companies approach talent recruitment and onboarding. By moving beyond traditional recruitment methods and embracing AI’s capabilities, the industry is set to revolutionize the way it builds teams, fostering environments that are not only more cohesive but also rich in diversity and innovation.

AI-driven tools offer a more nuanced and comprehensive evaluation of candidates, analyzing a wide range of workplace personality traits to ensure potential hires will contribute positively to a collaborative and innovative work environment. This focus on creating teams that share a sense of purpose is essential for driving organizational growth and maintaining a strong organizational culture amidst the rapid changes and regulatory complexities of the cannabis industry.

The advancements in AI-driven recruitment, including predictive candidate matching, a focus on cultural and personality fit, streamlined hiring processes, and data-driven insights, are set to make the hiring process more efficient, equitable, and effective. As the cannabis industry continues to grow and evolve, integrating AI into hiring practices will be instrumental in building adaptable, innovative teams capable of overcoming the sector’s challenges and seizing its opportunities.

In essence, the future of hiring in the cannabis industry, shaped by AI integration, is bright. It offers the promise of a more strategic, data-informed approach to recruitment that aligns with organizational goals, fosters diversity and innovation, and sets the stage for sustainable growth and competitive advantage. As companies navigate the complexities of the cannabis market, AI-driven hiring strategies will undoubtedly become a cornerstone of successful talent acquisition and management, ensuring that the industry remains at the forefront of change and innovation.

Member Blog: How to Build a Sustainable Cannabis Packaging Solution

According to NielsenIQ, 92% of consumers say sustainability is important when choosing a brand today. Packaging can play a significant role in helping brands meet their sustainability goals and attract eco-conscious consumers. Designing and manufacturing sustainable packaging requires a holistic approach that includes understanding the actual container, the manufacturing process, transportation and energy requirements, carbon footprint, and government regulations. When it comes to the cannabis industry, packaging solutions must also meet requirements around child resistance, tamper-evidence, opacity, resealability, label design, and more. Despite the complexities, sustainable cannabis packaging can be compliant, functional, and beautiful. Cannabis brands have many eco-friendly pathways to consider.

Compostable

Compostable packaging refers to packaging that will decompose into nutrient-rich organic matter, CO2, and water in a controlled environment in the home or commercial composting facility. According to the U.S. Composting Council, compost diverts waste from ending up in landfills, conserves water, improves soil health, promotes plant growth, and combats climate change. Because of their organic composition, cannabis products are an emerging application for compostable packaging made from hemp and other plant-based materials. Compostable products must meet strict testing requirements for decomposition, such as specific environment, specific time frame, environmental toxicity, etc. Compostable should not be confused with biodegradable packaging, which has no such requirements and may contribute to greenwashing. Compostable packaging solutions are available for cannabis products, including pre-rolls, flower, and edibles.

Recycled Materials

Beyond using recyclable packaging, today’s brands are increasingly using recycled materials like post-consumer recycled (PCR) plastics, ocean-bound plastics, and recycled paperboard to demonstrate a commitment to the environment. Post-consumer recycled content in packaging contributes to a circular economy by extending material life cycles. According to the US Plastic Pact, it reduces landfill waste, conserves natural resources, saves energy, and lowers greenhouse gas emissions. Adding PCR content to packaging decreases its carbon footprint (reduced energy use, greenhouse gas emissions, extraction of finite natural resources, and landfill disposal) compared to using 100% virgin materials, helping brands meet their sustainability goals. In addition to consumer demand, government regulations are also driving the use of PCR materials. New York introduced requirements for PCR plastic use in cannabis packaging. The Marijuana Regulation & Taxation Act (MRTA) states, “cannabis product packaging cannot be made of any plastic, unless that plastic contains a minimum 25% post-consumer recycled content.”

Reusability

Reusable shopping bags, refillable water bottles, and metal drinking straws are just a few reuse initiatives people have worked into their everyday routines over the past several years. Reusability reduces single-use packaging waste and promotes a circular economy. Consumer packaged goods brand owners – including those in the cannabis industry – are beginning to capitalize on the growing refill and reuse mentality by introducing reusable packaging. Reusable cannabis packaging can be refilled with more cannabis or used for other purposes. Material selection is essential to ensure reusability is practical and sustainable. Glass containers and high-quality, durable plastics are long-lasting and well-suited for reuse. Food-safe packaging solutions provide added functionality and additional usage occasions.  Dockside Cannabis dispensaries feature seven ways to repurpose old cannabis containers.

Paper, Inks & Labeling

Secondary packaging, label components, and decoration can also play a role in a brand’s sustainability story. Using Forestry Stewardship Council (FSC) certified paper for shipping cases, secondary cartons, and inserts helps protect healthy, resilient forests. Several cannabis brands use FSC paper for their rolling papers. Inks may not be top of mind when considering eco-friendly packaging, but even seemingly minor details can have a significant impact. Inks, dyes, and coatings can inhibit recyclability and/or reusability, so using soy-based, water-based, or vegetable-based inks contributes to the lifecycle of a package. Soulshine Cannabis uses paper sourced from sustainable PNW forests and prints with vegetable-based inks as part of its commitment to be an environmentally conscious cannabis company. 

Shipping Efficiencies

For a packaging solution to be truly sustainable, it needs to perform at every stage of its journey, from the warehouse to the consumer. Shipping is a big part of a package’s journey and an important part of its carbon footprint. According to the EPA, greenhouse gas (GHG) emissions from transportation account for about 29% of total U.S. greenhouse gas emissions. When it comes to transportation – and cannabis – size matters. Sizing is an essential factor when selecting the proper cannabis packaging, as it can impact the quality of the product. However, right-sizing your package to ensure it’s not larger than it needs to be can reduce the environmental impacts of shipping. Light-weighting – reducing the weight of your package by rethinking the size, material, or unneeded components – can also make a difference. Efficient packaging can reduce fuel consumption and emissions associated with shipping. 

When it comes to sustainable cannabis packaging, there is no one-size-fits-all solution. Brands should consider a variety of tactics including material, size, weight, decoration, and more to find the most effective and impactful package for their product.

Committee Blog: The Importance of Insurance and Risk Management for Early State Applicants

Published by NCIA’s Risk Management & Insurance Committee (RMIC)


2024 is shaping up to be a bang-up year for cannabis whether its constant news about the potential for federal action regarding rescheduling, or multiple states expanding their current cannabis markets or entering the cannabis space for the first time. As exciting as all this is for prospective cannabis business owners and operators, there’s an issue which we in the cannabis industry often encounter time and time again.

There’s plenty of businesses seeking to enter the industry who overlook the importance of insurance and risk management. This may not be the most exciting topics when thinking about cannabis, but its one of the most important and often sidelined. Here, we’ll dive into how insurance and risk management can impact your cannabis business and why it’s important not to delay this vital step in your business development. 

Insurance and Cannabis 

Due to the current federal illegality of cannabis, just the process of getting insurance for your cannabis business can be a headache. But just because it can be frustrating to get, doesn’t mean that this important business step should be forgotten about or ignored. If anything, starting early on your cannabis insurance path will help set you apart from others in early licensing phases and can often help with getting a license itself. 

All states which have their own cannabis market require some form of insurance, and many require insurance documentation as a requirement for the licensing process. This can often be any form of insurance—from fire protection to property—so long as it’s up to date and follows the state regulations and guidelines. 

What Are the Risks? 

Perhaps no bigger risk in working with cannabis nowadays is the federal side of business. While we are eager about the prospects for rescheduling and with that, hopefully, some banking regulations such as some version of the SAFE Banking Act, there is always the federal risks. The odds are low that the federal government is going to step in and shut down all cannabis operations in states, but they aren’t entirely eliminated risks either. 

Of course, when it comes to risk management, the federal government and their response to cannabis business isn’t the only thing business owners need to be concerned with. There’s the risks of theft of cash, diversion of cannabis and cannabis product, and even high turnover of staff. These are all inherent risks that should be managed and assessed when pursuing a cannabis license. This is also the case for businesses which may be up and running, though it is most critical to assess the risks and your own handling of them as early as possible.   

Early Steps to Take 

Let’s say you’re interested in opening your cannabis business. Maybe you’ve received a provisional license from the state, or perhaps you’re waiting for an application licensing round to open. What should you do when it comes to insurance and risk management? 

Simple; start sooner than you anticipate. Over the years, clients have asked me countless times, “When should I get to work?”. It never hurts to be over-prepared, but it can torpedo your chances at licensure or opening a compliant cannabis business if you delay or rush some of the most important and necessary business functions. Insurance and risk management may not be what gets people into cannabis (I’m a nerd and think both these areas or interesting but even *I* wouldn’t say they’re what got me into this industry!) but they are essential. Start early and begin doing your own research in these areas.

Thankfully, there are insurance providers who will work with “plant-touching” businesses such as a dispensary or cultivation facility. They may not be the easiest to come by, but they are out there and are familiar with cannabis operations and the risks associated with insuring a business like yours. 

And when it comes to risk management, identify your own risks through a thorough SWOT analysis (strengths, weaknesses, opportunities, and threats) or a detailed risk assessment. Find professionals who can guide you through this too if needed, as they’ll be the ones who can highlight what are some of the unique and individualized risks your business may have. For example, an outdoor cultivator has different risks than an indoor cultivator or a hoop-house cultivator. 

When it comes to insurance and risk management, it’s never too early to begin discussing and meeting with professionals who can help and this is an area which shouldn’t be ignored or put onto the back burner for too long.

Igniting Conversations: NCIA’s Stakeholder Summit Series Sparks Dialogue

In recent months, the National Cannabis Industry Association (NCIA) has embarked on a journey that brought together industry leaders, regulators, policymakers, and advocates for a series of Stakeholder Summits across the United States. From the sun-drenched streets of California to the bustling cities of Maryland and the picturesque landscapes of Colorado, these events have served as a nexus for collaboration, innovation, and progress within the cannabis industry. As we reflect on the success of this inaugural Stakeholder Summit series, let’s delve deeper into the highlights and impact of these conversations which are helping to shape the future of cannabis policy nationwide.

Setting the Stage: The Vision Behind NCIA’s Stakeholder Summit Series

The Stakeholder Summit series was conceived with a singular vision: to create a platform where industry stakeholders could converge to address pressing issues, share insights, and drive positive change. With a focus on education and advocacy, these summits aimed to tackle the most significant challenges facing the cannabis industry while fostering meaningful connections and partnerships.

Insights and Impact: Highlights from the Summits

California Stakeholder Summit: Influencing Regulatory Policies

In Sacramento, the California Stakeholder Summit 2024 was a testament to the power of collaboration and dialogue in shaping regulatory policies. Notable speakers, including Congresswoman Barbara Lee (D-Oakland) and Nicole Elliott, California’s Director of the Department of Cannabis Control (DCC), offered insights into the impending rescheduling of cannabis and the intricate relationship between state and federal regulations. Panel discussions, such as the one on AB 2223 featuring Assemblymember Cecilia Aguiar-Curry (D-Winters), provided a platform for industry operators to voice their concerns and shape regulatory policies. The summit served as a vital catalyst for driving progress in California’s cannabis industry.

Missouri Stakeholder Summit: Addressing Legislative Challenges

In St. Louis, the Missouri Stakeholder Summit convened industry leaders to address proposed legislation that could significantly impact the availability of Delta-8 THC products in the state. Amy Moore, director of the Division of Cannabis Regulation at Missouri’s Department of Health and Senior Services, highlighted the potential implications of the Intoxicating Cannabinoid Control Act on the market. The summit underscored the need for comprehensive regulations that balance consumer safety with industry growth. While discussions sparked pushback from both sides, stakeholders remain committed to finding solutions that support a thriving cannabis market in Missouri.

Maryland Stakeholder Summit: Advancing Equity and Regulation

In Baltimore, the Maryland Stakeholder Summit convened industry operators, leading regulators, and advocates to address pressing issues within the state’s cannabis landscape. Notable speakers, including Chris Jackson of ForesTree (and current Chair of NCIA’s Board of Directors), Will Tilburg of Maryland Cannabis Administration, Tracey Lancaster Miller of Maryland Dispensary Association, and Joy Strand of Maryland Wholesale Cannabis Trade Association, provided insights into key topics relevant to Maryland’s emerging adult-use cannabis industry. Discussions revolved around equity, regulatory challenges, and the path to federal regulation. Attendees actively engaged in shaping the conversation, emphasizing the need for equitable policies and inclusive regulatory frameworks. As Maryland navigates the rollout of an adult-use program, the summit produced meaningful dialogue and called for collective action towards a more equitable and sustainable industry across the state.

Colorado Stakeholder Summit: Legislating Cannabis – Yesterday’s Framework, Today’s Challenges, Tomorrow’s Opportunities

In Denver, the Colorado Stakeholder Summit provided a platform for industry leaders to discuss innovations and challenges within the state’s long-standing but beleaguered cannabis marketplace. Panel discussions explored topics ranging from federal regulation pathways, legislative challenges in the Colorado market, and the future of cannabis hospitality in the state Expert panels then delved into federal regulation, and the future of cannabis hospitality. Governor Jared Polis provided a closing keynote address, where he emphasized the importance of incremental steps towards federal legalization. With a focus on rescheduling and cannabis banking reform, Governor Polis outlined these initiatives as crucial “dominoes” on the path to broader legalization. He also celebrated Colorado’s leadership in the cannabis movement while acknowledging the ongoing need for regulatory improvements, specifically by ensuring equity in Colorado’s cannabis industry. As the state reflects on a decade of legal cannabis sales, the summit highlighted the economic benefits and regulatory successes of Colorado’s cannabis landscape while also addressing current challenges in the Centennial State.

Looking Ahead: NCIA’s 12th Annual Cannabis Industry Lobby Days

As we reflect on the success of the Stakeholder Summit series, we’re excited for our upcoming 12th Annual Cannabis Industry Lobby Days event. Taking place next month, NCIA Lobby Days offers industry professionals the opportunity to advocate for policies that support a fair and equitable cannabis market. From meeting with legislators to participating in advocacy training sessions, Lobby Days provides a platform for industry stakeholders to make their voices heard. NCIA’s Lobby Days is open to all industry leaders who want to make a positive difference. Haven’t lobbied Congress before? Don’t worry. We can provide online training, talking points, and assign you to a team led by an industry colleague with past fly-in experience. Learn more and register online today.

Igniting Conversations: NCIA’s Stakeholder Summit Series Sparks Dialogue

The Stakeholder Summit series has already made a significant impact on our collective interests of continued progress across the cannabis industry, fostering collaboration, driving innovation, and advancing regulatory reform efforts. Through meaningful dialogue and engagement, stakeholders have been able to identify common challenges, explore potential solutions, and forge new partnerships. Tangible outcomes, such as policy recommendations and advocacy initiatives, have emerged from the summits, demonstrating the power of collective action within the industry. As we look ahead to future events and initiatives, we remain committed to advancing the interests of our members and the industry as a whole. Stay tuned as we continue these conversations.

Partners in Progress:

At NCIA, we recognize and appreciate the invaluable contributions of our sponsors and partners, each playing a unique role in the success of the Stakeholder Summit Series. Our Platinum sponsors provided invaluable support for the events and were granted the exclusive opportunity to kick off each program. Their generous contributions helped set the tone for productive discussions and meaningful engagement, making a significant impact on the success of the series. Gold sponsors were an essential element of our exhibit hall in each market. Their support ensured that attendees had access to a diverse range of resources, services, and expertise, enriching the summit experience and facilitating valuable connections within the industry. Additionally, our Silver & Advocate sponsors alongside our numerous Allied Association Partners played a crucial role in ensuring a low barrier to entry for other vital service providers and member businesses. Their support helped create a welcoming and inclusive environment, allowing a diverse array of stakeholders to participate and contribute to the vision of the Stakeholder Summit Series.

Platinum Sponsors:

A THERAPEUTIC ALTERNATIVE
Hybrid Marketing Co.
Smith Patrick CPAs

Gold Sponsors:

ENCORE LABS
FundCanna
iKrusher

Silver Sponsors:

420property
Amendment 2 Consultants (A2C)
Armada Law Corp
DOPE CFO Certified Advisors
Emerald Intel
Ganjapreneuer
Summit Virtual CFO by Anders
Vicente LLP

Advocate Sponsors:

Arvum Plant Labs (The Soil Labs)
Hunter + Esquire®
Ice Miller LLP
Snowtill
Thorburn Law Group, LLC

Allied Association Partners:

California NORML
California Cannabis Industry Association
Nevada County Cannabis Alliance
Maryland Medical Dispensary Association
Maryland Wholesale Cannabis Trade Association
Project DREAM
Colorado Leads
Marijuana Industry Group

Committee Blog: Crash & Grab – Hitting the Brakes on a Cannabis Burglary Trend

Published by NCIA’s Risk Management & Insurance Committee (RMIC)

Contributors:

Ben Taylor, Executive Director of the Cannabis Information Sharing & Analysis Organization

Matthew Johnson, Risk Consultant at AssuredPartners

Haley Glover, Senior Security Consultant at Sapphire Risk


So, you run a cannabis business. You’ve spent years and years going through the licensing process, finding a suitable facility, hiring qualified employees, and growing top shelf buds to impress sophisticated buyers. 

It hasn’t been easy – and it hasn’t been cheap. But that feeling you get when you help a sick customer find their new favorite medicine – well, that makes it all worthwhile. After all that hard work, nobody wants to see it all slip away in the middle of the night (and sometimes broad daylight) due to theft.

We have long known cannabis businesses’ perceived abundance of cash on hand has attracted criminal activity. This is evident with the industry’s issues of armed robberies and the silent scourge of employee theft, targeting everyone — well-known brands like Cookies to mom & pop shops. This blog will examine a recent trend which has been on the rise, criminals utilizing vehicles to breach facilities in the act of a burglary. 

Dude, Where Did This Car Come From?

Have you recently seen a headline like “Thieves Crash Stolen SUV into Seattle Marijuana Dispensary During Burglary,” or “Five Arrested After Stolen Vehicle Involved In Cannabis Dispensary Robbery Crashes,” and think you were having déjà vu? Unfortunately, those two incidents happened months apart, in two different states last year. The fact is that criminals are increasingly utilizing vehicles as the primary means of breaching cannabis facilities to obtain cash & product. 

While not a new technique, vehicle rammings have risen in prevalence over the past few years, sparked in part by a TikTok trend known as the Kia Boyz. As the Cannabis Information Sharing & Analysis Organization (Cannabis ISAO) detailed for The Blunt, the trend starting picking up within the industry in 2022 as social media spread details on how to easily start non push-button ignitions on certain makes and models utilizing a USB charger.

It is important to understand crime trends like this to evaluate a changing risk landscape, which can impact how resources are deployed. But for this blog, how a criminal obtained a stolen vehicle and breached your outer security isn’t the most relevant question. We will focus both on mitigation strategies, as well as how to respond to such incidents.

Let’s Hear From A Security Professional

With years of experience in cannabis (not to mention jewelry stores and pawn shops), the Sapphire Risk team are bona fide experts in security. Though they prefer to be involved as early as the application/buildout process, Sapphire’s team frequently gets called in after break-ins to help operators fortify their facilities.

We spoke with Sapphire Risk’s Senior Security Consultant Haley Glover, who shared the following advice about preventing unauthorized vehicular-assisted entry. “Implementing physical barriers like bollards or security planters placed strategically around the exterior of the building are great ways to prevent a vehicle from successfully driving through your location.” Bollards can be tremendously effective at stopping an errant vehicle in its tracks. Keep an eye out and you’re likely to notice them around federal buildings, banks, and high-end retail stores!

Another area of concern for cannabis businesses are the entryways. Haley advises, “A business can utilize the strongest and most secure door, but without a frame to match it, the door is useless, so it’s important to consider all aspects of a facility when securing it and identifying where threats and vulnerabilities could be present.” Don’t put a strong door in the middle of some cheap drywall!

Beyond Walls, Bars & Guards

While Warden Norton from Shawshank Redemption felt the only way to spend tax-payers’ hard-earned money was to get “more walls, more bars, and more guards”, adding additional physical barriers is not the only deterrence strategy that cannabis operators should be considering to safeguard their facilities.

Washington State’s Senate unanimously passed a bill that would increase penalties for anyone who utilizes a vehicle to gain entry into a cannabis retailer. Senate Bill 6133, sponsored by state Sen. Jim McCune, R-Graham, would have a new “special allegation” to seek an additional year of custody for the convicted criminal. Prosecutors could also charge the suspect with either first-degree or second-degree robbery – a class A or class B felony, respectively. (A PDF of the bill can be viewed here.)

NCIA’s Risk Management & Insurance Committee recently spoke with Senator McCune’s staff to learn more about this initiative. It is important to note that while this bill’s genesis from legislative recognition of a growing safety problem, there is now a model for industry professionals in other states to help drive legislation that will serve as a proactive deterrent.

While the passing of the Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers (INFORM Act) by Congress last year made headlines as a major win in the fight against Organized Retail Crime (ORC), it’s mainly addresses the problem of reselling stolen merchandise via online marketplaces, which is not the destination of stolen cannabis products. This is further proof cannabis businesses need to lean into their State legislatures to get support that is currently unavailable at the Federal level. Efforts like the Robbery Tracker that has been put together for several years by Uncle Ike’s Ian Eisenberg can help demonstrate to legislators the need for additional crime deterrents.

Dive into Insurance Mumbo Jumbo

Let’s talk about Protective Safeguards endorsements on cannabis property policies. These endorsements will exclude losses if all the described protective safeguards (security guards, alarms, cameras, vault, etc.) aren’t in place and/or properly functioning. Imagine having a house fire and getting your claim denied because you didn’t replace the batteries in your smoke detector. Well, it’s the same thing for cannabis. 

Protective Safeguards endorsements can be as simple as a burglar alarm or as demanding as needing a follow car, two way radios, and telematics in place for your cannabis delivery vehicles. Another common provision is for product on display – most insurance policies required product to be stored in a safe/vault while a store is non-operational, with a sublimit only allowing around 25% of stock to be on display at any given time. Whatever the situation, best to make sure you read the policy thoroughly and understand what is required of you for coverage to respond.

One should also be familiar with the coverage sublimits in their policy and adjust them regularly to adequately reflect stock on hand. In another scenario, a cannabis business has all of their security systems and protective safeguards in line. Robbers come by and steal millions of dollars worth of cannabis products — but the business only has a $100,000 sublimit for cannabis inventory! Imagine the frustration of following all the rules and only walking away with a partial reimbursement after a huge loss. 

Incident Response

As with any incident, things go more smoothly when you have a plan in place and everyone knows their roles and responsibilities. This can help ensure to both expedite the process, while also making sure vital steps are not overlooked. 

Some items that should be contemplated in the plan might include:

  • Contact local law enforcement
  • Gather and maintain written event logs
  • CCTV video storage and maintenance
  • Appropriate follow-up steps depending on the situation 
    • security weak-spot reviews, 
    • HR interviews, 
    • medical follow-up, or
    • filing an insurance claim

By having formal guidelines in place for event response, you’ll save valuable time and money getting the business operational again — while minimizing the confusion that your employees face during a time of crisis. 

Conclusion 

The RMIC advocates for a proactive approach to risk management that emphasizes the importance of informed decision-making. When in doubt, contact a trusted insurance professional and get a second set of eyes on your coverage — and your protective safeguards!


 

Member Blog: Amazon’s “Hemp” Products Are Lying to You, New CBD Oracle Lab Study Finds

Amazon’s “Hemp” Products Are Lying to You (and Hurting the Industry), New CBD Oracle Lab Study Finds

TL;DR: A CBD Oracle investigation finds that 43% of hemp products sold on Amazon often don’t contain hemp at all, and are deceptively marketed to evade Amazon’s lax enforcement.

The independent investigation of the hemp market on Amazon which was commissioned by CBD Oracle has found that almost half of all products lie to customers and has revealed the challenges faced by both consumers and honest sellers on the platform. 

Along with 43% of so-called “hemp” products not containing any hemp at all, companies selling on Amazon.com often report their products being pulled from the storefront while those obviously lying about their contents remain up on sale. 

The market is a minefield for consumers and the main benefactors are deceptive fly-by-night companies and Amazon themselves.

A Brief Introduction to Amazon’s Hemp

If you’ve ever bought or sold hemp before, browsing the selection available on Amazon is truly bewildering. 

Products promise doses of hemp that are impossible to fit into a gummy, make obvious medical claims and reassure customers that they’re third-party lab tested while usually not making the results available on Amazon or anywhere else. There are so many red flags they start to look like wallpaper.

Amazon policy prohibits CBD unless it’s a topical product which has been specifically approved. This was established to prevent unreliable or illegal products from making it onto the site, but the consequence has been just the opposite. Instead, sellers simply don’t mention the word “CBD” anywhere on the product page, and this provides a smoke-screen to companies hoping to sell the expectation of CBD while actually offering nothing of the sort.

“Hemp” on Amazon is not a description, but a purposefully vague euphemism.

Testing the Hemp Sold on Amazon

CBD Oracle purchased 56 of the most popular hemp products on Amazon and sent them to InfiniteCAL for testing. The main results show the impact of the current policies on the platform.

  • 30% of products contained CBD. Although these products violate Amazon policy, they at least offer customers what the listings imply in a basic sense.
  • 62.5% of products contained no cannabinoids at all. Given that the majority of products explicitly promised some amount of “hemp” in milligrams, these products are misleading at best.
  • 43% of products contained no hemp at all, as verified by gas chromatography-mass spectrometry (GC-MS) testing. Every single product in the study promised “hemp,” but even if they meant hemp seed oil, these 43% are still blatantly deceiving customers.
  • 11% of products tested positive for THC, with three products having huge quantities of delta-8 THC. The maximum dose per gummy was 76 mg THC.
  • 96% of products did not provide an accurate dosage to customers. This means that the measured dosage doesn’t fall within 10% of what they advertised.

The Misleading Marketing of Amazon’s Hemp

The lab results show that the hemp sold on Amazon doesn’t meet the expected standard of CBD and hemp products in the modern day. However, customers on Amazon are less likely to be engaged with the industry and probably have less of an idea of what is expected of any hemp product. Combined with some careful marketing, this makes the average Amazon hemp buyer way more likely to pick up an unreliable product.

CBD Oracle’s analysis of the marketing of Amazon hemp reveals many serious problems with the market and the claims sellers make:

  • 52% of products are sold based on unapproved medical claims, often surrounding pain, stress or anxiety relief.
  • 95% of products do not provide a third-party lab report to consumers anywhere online, and none of them are shown on Amazon.
  • Customer reviews were unreliable in about half of cases. Mozilla’s FakeSpot rated 48% of products D or lower for overall reliability.
  • There was no reliable, direct method to communicate with the sellers behind 89% of products. 28 products were identified as breaking the INFORM Consumers Act.
  • Many products make claims which are literally impossible (e.g. 7.7 pounds of “hemp” in a 0.8 pound package), but are not removed when reported to Amazon.

How Amazon’s Hemp Impacts the Wider Industry

Amazon’s hemp market is not only bad for the customers who choose to make purchases through the retailer; it also threatens the perception of the industry at large.

Andrew Livingston, Director of Economics & Research at Vicente, commented to CBD Oracle that:

“One, these products drive consumer[s] away from the entire hemp supplement category for fear that the entire market cannot be trusted or is not properly regulated. This means legitimate businesses with great products that benefit consumers lose out. Second, problematically labeled and branded hemp products indicate to regulators and public officials that the entire category needs more robust and stringent restrictions.”

In short, even though these products come from unknown companies and aren’t widely regarded in the hemp industry, their careless actions threaten to drag the whole industry through the mud with them.  

Conclusion: How Amazon Can Solve the Problem

Amazon’s hemp problem is created by a lack of enforcement and a policy which incentivizes companies that lie about their products. In line with this, there are two avenues for a solution. 

Firstly, Amazon could simply devote more resources to enforcing their current policy. 

Alternatively, and more realistically, they could acknowledge that CBD is sold on their platform, and instead rectify their policy. By allowing CBD products if they are backed up with a certificate of analysis by an accredited third-party lab, honest manufacturers would be able to compete on a level playing field, and virtually all of the products in this analysis would have to prove their claims or be removed from sale.

One thing is certain: the status quo on Amazon is harmful to both consumers and the industry, and it has to stop.

The full dataset from the analysis is available in this spreadsheet. You can download a summary of the report in PDF here.

About the author: 

Lee Johnson is the senior editor at CBD Oracle, and has been covering science, vaping and cannabis for over a decade. He focuses on research-driven deep dives into topics ranging from medical uses for CBD to industry and user statistics, as well as general guides and explainers for consumers.

CBD Oracle is a consumer research company working to improve the safety and transparency of cannabis and hemp products, producing in-depth research pieces on cannabis and cannabinoids, along with analysis of social and legal issues.

Member Blog: Regulating the Cannabis Industry for Accuracy and Integrity

Regulating the Cannabis Industry for Accuracy and Integrity 

In the fast-evolving landscape of the cannabis industry, ensuring accurate testing standards is paramount to safeguarding consumer safety, maintaining regulatory compliance, and fostering fair market competition. However, a pervasive challenge known as cannabinoid inflation threatens to undermine these essential principles, posing a significant obstacle to the industry’s growth and legitimacy. 

Understanding Cannabinoid Inflation 

Cannabinoid inflation refers to the practice of cannabis testing laboratories providing inaccurately high cannabinoid concentrations in their reports, often in an attempt to attract business. This phenomenon distorts market dynamics, leading to unfair competition and jeopardizing the credibility of legitimate labs that adhere to rigorous testing standards. Contaminant deflation is a significant concern, too, as labs willing to inflate cannabinoids are also more likely to underreport the presence and/or amount of hazardous substances. 

At the heart of this issue lies a fundamental discrepancy between reported and actual cannabinoid content in cannabis products. As cannabis producers and distributors seek out labs offering higher THC values, a troubling trend is to use only labs that will inflate the value of desirable cannabinoids, such as THC. This practice, known as laboratory shopping, perpetuates the cycle of inflated results, undermining integrity and forcing accurate reporting labs out of business. 

Proposing Regulatory Solutions 

To address this pressing cannabinoid inflation challenge, Digamma Consulting, renowned experts in cannabis chemistry, presents a comprehensive set of regulatory solutions in their latest white paper, Solutions to Cannabinoid Inflation. 

Solution A: Data Analysis Reports Advocating the adoption of data analysis reports, Digamma proposes a systematic approach to analyzing testing data, providing regulators with a solid foundation for action. By leveraging data analytics, authorities can identify trends, anomalies, and potential instances of cannabinoid inflation. Such identification enables regulators to make targeted and legally justified interventions that can help to improve testing integrity. 

Solution B: Suspect Product Checks Digamma recommends implementing suspect product checks, also known as “secret shopper” programs, to detect inflated cannabinoid values. This cost-effective mechanism allows states to conduct product sampling and testing of suspected lab results by independent accredited reference laboratories that will validate reported cannabinoid content and mitigate inflated results. 

Solution C: Chemical Analysis Laboratory Audits Digamma proposes implementing in-person audits of chemical analysis laboratories to ensure testing integrity and thus directly address cannabinoid inflation. Subjecting testing facilities to rigorous scrutiny by expert auditors enables regulators to assess compliance with standards and uphold the integrity of the testing process. 

Digamma’s White Paper: Solutions to Cannabinoid Inflation 

Digamma’s white paper on regulating the cannabis industry for accuracy and integrity represents a significant step toward addressing the pervasive challenge of cannabinoid inflation. By advocating for practical, low-cost regulatory solutions, Digamma Consulting aims to empower government regulators to uphold transparency, impartiality, and legal defensibility in cannabis testing reporting and labeling. 

As the industry continues to evolve, it is imperative to prioritize consumer safety, regulatory compliance, and market fairness. Through collaborative efforts and ongoing dialogue, we can navigate the complexities of the cannabis industry and propel it toward a future characterized by integrity, transparency, and accountability. Join Digamma in the quest to build a safe, fair, and thriving cannabis industry for all.

Read the white paper here:
https://www.digammaconsulting.com/_files/ugd/f2b5b5_74e672f71f8f4678a79f823738e 87910.pdf 

Policy Matters: High Stakes in the Heartland – Missouri’s Cannabis Landscape

Unlock the full recording of our must-watch #IndustryEssentials webinar series, “Policy Matters,” where we take you inside the evolving world of cannabis regulation in Missouri.

In this insightful episode, we are honored to feature Amy Moore, Director of the Division of Cannabis Regulation at the Missouri Department of Health and Senior Services. With her extensive experience, Amy shares her journey as a regulator, providing an in-depth look at the challenges and triumphs in shaping Missouri’s cannabis marketplace.

What You’ll Learn:

  • The evolution of Missouri’s cannabis market
  • Regulatory strategies implemented by the Division of Cannabis Regulation
  • Key insights leading up to our Missouri Stakeholder Summit

Whether you’re preparing for the upcoming Missouri Stakeholder Summit or seeking to understand the regulatory dynamics that could impact your business, this webinar is your go-to resource.

Don’t miss out—gain the knowledge that could shape the future of cannabis regulation in Missouri.

Watch Now and stay ahead of the curve!

Member Blog: How to Hire a Fractional Cannabis CFO

Small businesses — from startup to $20 million — face challenges when it comes to hiring accounting and finance staff.

In addition to the budget-breaking cost of an in-house finance team, it’s not easy to find, train and manage the right people within the day-to-day of a growing business. Not to mention the fact that a full-time team likely wouldn’t have enough work to keep themselves busy with a business of that size. That’s why outsourcing has become popular across industries: small businesses can leverage the expertise of bookkeepers, tax preparers and planners, as well as CPAs and financial advisors, at a fraction of the cost.

The advisory role — often referred to as outsourced or fractional CFO services — fills a particularly essential need, providing business owners with a strategic partner to help make financial decisions about their short-, medium- and long-term future at a lower price-point than a full-time Chief Financial officer (which averages $229,000 per year not including vacations, bonuses and other benefits).

That’s why businesses between the $3-$20-million revenue mark consider outsourcing the position. Oftentimes these services include a la carte options such as taxes, accounting, payroll, and coding of transactions (essentially bookkeeping), depending on whether the business already has some of these functions in-house.

Three things to look for when hiring a cannabis CFO

There are a variety of ways to access outsourced or fractional financial services, whether it’s hiring an individual, using a freelance match-making service or working with a dedicated team.

  1. Do they provide forward-looking advice?Cannabis companies face unique challenges. Every business could benefit from cash flow forecasting, but in cannabis, where profits are extra tight, a CFO needs to be able to help strategic planning: weighing the cost-benefit of investments, strategizing to manage overhead and boost sales, and ensure the business stays disciplined as it grows.
  2. Are they involved in the industry?In an industry like cannabis, where regulatory shifts are always on the horizon, you want a CFO is staying on top of policy — both federal and local. That means they’ll have the necessary insight to help you plan with those changes in mind, as well as to think about what could happen as a result of all these shifts within your business.Beyond policy, a CFO should be able to help businesses with other industry-specific challenges, like securing merchant services for dispensaries and establishing banking relationships, which is significantly tougher for cannabis businesses to do, in light of current federal policy.
  3. Do they ask strategic questions?A good CFO never tells you what to do. They get to know your business through in-depth questions, identify the non-financial drivers to monitor and improve, and then help you navigate the best path with the information that you have.

When is it time to hire a fractional cannabis CFO?

If you find your business is getting to a point where you’re making decisions but don’t understand the financial impact or don’t know what risks may be out there — especially if you’re in a growth phase — hiring a fractional CFO will help guide you on the financial side and still fit within your budget.

The cannabis industry is at an inflection point. There are so many areas where strategic planning isn’t a nice-to-have, it’s a must-have. As regulations shift, it will be essential to have a financial partner who can help businesses pivot quickly and adopt new technologies that become available to the industry as we move forward with policy progress at the federal level.

Member Blog: Cultivating Safety – Advanced Workers’ Compensation Solutions for Cannabis Businesses

The cannabis industry is experiencing rapid growth, bringing with it unique risks and regulatory challenges, especially in protecting employees. Recognizing the complexities of this industry is crucial for developing comprehensive insurance solutions, particularly in workers’ compensation. This blog explores strategies and insights tailored to navigate the intricacies of cannabis-related businesses.

The Unique Occupational Risks in Cannabis

Occupational hazards in the cannabis industry vary significantly across its different verticals—from cultivation and harvesting to manufacturing, distribution, and retail. Each step of the way introduces specific risks:

  • Cultivation: Employees may face exposure to pesticides, ergonomic challenges, and the potential for injuries related to manual labor or the operation of agricultural machinery and electrical exposures
  • Manufacturing: The extraction process involves handling volatile substances, which can pose chemical exposure risks, while the use of heavy machinery introduces the potential for industrial accidents.
  • Retail and Distribution: Employees in these sectors might encounter security concerns, the risk of theft, and repetitive motion injuries, alongside the unique challenges of delivering products safely.

Recognizing and addressing these varied risks is the cornerstone of an effective workers’ compensation strategy, ensuring that businesses are prepared to support their employees in the event of an occupational injury or illness.

Why Workers’ Compensation Is Essential

Workers’ compensation is not just a legal formality; it’s a cornerstone of your business’s resilience. A well-conceived policy ensures that employees are protected in the event of workplace injuries, which in turn safeguards your business from potentially crippling financial liabilities. 

Generic workers’ compensation policies often fall short of meeting the specific needs of the cannabis industry. A focused approach on the unique challenges of cannabis operations, is not only beneficial, but necessary for comprehensive protection. This strategy involves:

  • Risk Identification and Analysis: Understanding the specific hazards associated with different cannabis industry roles is the first step in crafting effective workers’ compensation policies.
  • Rapid Claim Resolution: Efficient processing and resolution of claims are vital in controlling costs and supporting injured employees’ return to work. Speedy claim closure not only benefits the employee, but also helps manage the financial impact on the business.

Mitigation and Cost Control: A Proactive Approach

Effective claim resolution and risk mitigation are key for cannabis businesses to control workers’ compensation costs effectively. Leveraging advanced data analytics helps identify claim sources and implement prevention measures, closing claims swiftly and reducing overall insurance costs.

Implementing Robust Risk Management Practices

Significant impacts on the frequency and severity of claims can be achieved with:

  • Safety Training and Education: Regular programs can help employees avoid injuries and safely navigate potential hazards.
  • Ergonomic Assessments: Identifying modifications in roles involving manual labor or repetitive tasks can reduce strain and prevent injuries.
  • Security Measures: Enhancing security can mitigate risks associated with theft, especially important in retail and distribution.

A Case in Point: Swift Resolution for a Cannabis Delivery Company

Consider the case of a cannabis delivery company that faced a workers’ compensation claim when a delivery driver sustained an injury on the job. By employing a focused approach to claim management, including prompt medical evaluation and clear communication channels, Liberty’s intervention led to the claim being settled and closed in under four weeks—a testament to our commitment to fast and effective resolution. This not only minimized the cost to the company, but also allowed the employee to return to work sooner, maintaining productivity and morale.

Beyond Claims: Comprehensive Risk Management

A holistic risk management approach covers all potential risks, from delivery driver incidents to cultivation and retail hazards, ensuring comprehensive coverage.

Choosing a Strategic Partner

Partnering with an insurance provider that understands the cannabis industry’s complexities is critical. Customized strategies in insurance and workers’ compensation can offer unparalleled protection and peace of mind, supporting your business’s growth and resilience.

The Path Forward for Cannabis Businesses

As the cannabis industry evolves, strategic foresight in managing workers’ compensation is essential. Focusing on specific sector needs and prioritizing efficient solutions can create a safer work environment and a more resilient future. With the right strategies and a commitment to safety and efficiency, businesses can navigate these challenges successfully, ensuring protection for employers and their valued employees.

For more information, please reach out to Valerie Taylor, Vice President (National Cannabis Practice Leader), Liberty Company Insurance Brokers and Kirk Aguilera, Managing Partner (National Workers’ Compensation Practice Leader).

Member Blog: Wellness at Work – Preventative Healthcare for Cannabis Business Owners

Navigating Challenges in the Cannabis Industry

The cannabis industry finds itself constantly grappling with challenges imposed by federal regulations and government scrutiny. Despite these obstacles, there are numerous strategies available to businesses within this sector that can mitigate fixed costs, save money, and preserve valuable staff positions.

Delivering Tangible Value

Our seasoned team, boasting a track record of saving well over $2 billion for our clients, specializes in pioneering solutions that deliver tangible value. We recognize the unique demands faced by cannabis business owners and have tailored our approach to offer seamless evaluation and implementation of our tools, ensuring minimal disruption and maximum efficiency. This commitment to excellence has earned us the trust and loyalty of nearly half of our clients, who consistently refer us to their peers and associates.

Game-Changing Healthcare Solution

For cannabis operations employing W2 staff, we offer a game-changing solution: a preventative healthcare plan meticulously designed to address the specific needs of the cannabis industry.

Zero-Cost Structure with Significant Savings

What sets our plan apart is its zero-cost structure for employers, coupled with its ability to instantly lower payroll taxes without necessitating any modifications to existing benefits packages. This makes it an ideal solution for businesses looking to enhance employee retention while simultaneously bolstering their bottom line.

Comprehensive Benefits for Employee Well-Being

The benefits offered through our plan are not only financially advantageous but also genuinely impactful. From round-the-clock telemedicine visits to access to hundreds of free generic drugs and preventative screenings, employees gain access to a comprehensive suite of resources aimed at promoting their health and well-being. This not only enhances job satisfaction but also contributes to a healthier, more productive workforce.

Efficient Implementation and Support

Implementing our program is straightforward and efficient, with many businesses up and running in just a matter of minutes. Whether you’re a small-scale operation or a large enterprise, our team is dedicated to providing the support and guidance you need to maximize the benefits of our innovative healthcare solution.

Empower Your Business Today

Take the first step toward transforming your business and empowering your employees by scheduling a brief call with us to learn more. Together, we can pave the way to a brighter, more prosperous future for your cannabis business.

Empower Your Cannabis Business: Join Our Service Solutions Webinar!

Don’t miss out on the opportunity to learn more about how to optimize your cannabis business with our innovative healthcare solution and other service solutions. Join us for our upcoming Service Solutions webinar being broadcast LIVE on Tuesday, May 28th at 3:00PM ET / 12:00PM PT featuring the LG Resources team as they unveil their latest offerings in Preventative Health Care and AI Tax Planning.

Register now to secure your spot and gain exclusive insights from industry leaders. Click here to register for this essential webinar.

Take the next step in elevating your cannabis business to new heights. We look forward to seeing you there!

Member Blog: Unlocking Financial Potential – AI Tax Strategies for Cannabis Business Owners

The cannabis industry finds itself constantly grappling with challenges imposed by federal regulations and government scrutiny. Despite these obstacles, there are numerous strategies available to businesses within this sector that can mitigate fixed costs, save money, and preserve valuable staff positions.

In today’s rapidly evolving landscape, the integration of AI has ushered in a new era of efficiency and optimization across various domains, including finance and taxation. At LG Resources, we’ve embraced this technological advancement to revolutionize tax planning, transforming what was once considered a daunting task into a streamlined and rewarding opportunity for our clients.

Unparalleled Precision: Our AI-Powered Program

Our commitment to excellence is exemplified by our proprietary AI-powered tax planning program, which stands at the forefront of innovation in the industry. This sophisticated software boasts the capability to analyze over 1,500 Federal, state, and local tax programs with unparalleled precision. By leveraging machine learning algorithms, it identifies bespoke strategies tailored to each client’s unique financial profile, thereby unlocking substantial opportunities for tax savings.

Seamless Integration: Merging AI with Expertise

The cornerstone of our approach lies in the seamless integration of AI technology with over a decade of private wealth management expertise. This synergistic combination allows us to offer clients a comprehensive suite of services that not only optimize tax outcomes but also align with their broader financial goals and aspirations. Whether navigating complex tax regulations or maximizing wealth accumulation, our seasoned team of professionals is dedicated to delivering results that exceed expectations.

Adaptive Strategies: Staying Ahead of the Curve

One of the key advantages of our AI-powered tax planning program is its ability to adapt and evolve in response to changing tax laws and economic conditions. Through continuous monitoring and analysis, we ensure that our clients remain ahead of the curve, capitalizing on new opportunities for tax optimization as they arise. This proactive approach not only minimizes tax liabilities but also positions our clients for long-term financial success and security.

Personalized Service: Tailored Strategies for Every Client

Central to our philosophy is the principle of personalized service. We recognize that every client is unique, with their own set of financial circumstances and objectives. As such, we take a tailored approach to tax planning, crafting customized strategies specifically designed to meet the needs and objectives of each individual client. Whether you’re a high-net-worth individual, a small business owner, or a corporate executive, our team is committed to developing a tax plan that works for you.

Proven Results: Empowering Financial Well-being

Our AI-powered analysis has yielded impressive results for our clients, consistently delivering substantial tax savings across a wide range of scenarios. From helping clients save millions of dollars in taxes to securing substantial refunds and credits, we’ve consistently demonstrated our ability to deliver results that make a difference.

Join Our Service Solutions Webinar: Empower Your Business

Don’t miss out on the opportunity to delve deeper into these cutting-edge services! Join us for our upcoming Service Solutions webinar on Tuesday, May 28th featuring the LG Resources team as they unveil their latest offerings in Preventative Health Care and AI Tax Planning.

Discover how these innovative solutions can transform your business operations and financial outcomes.

Register now to secure your spot and gain exclusive insights from industry leaders. Empower your business with the tools you need to thrive in the cannabis industry. We look forward to seeing you there!

Member Blog: Breaking Ground – Maryland’s Leading Role in Cannabis Testing Standards

With the advantage of watching several other states blaze the regulated and tested trail before it, the state of Maryland’s cannabis testing program is one of the more robust and modern of the current industry. After long delays, the state’s medical program – which included a testing program – finally got off the ground in 2017. Then in November 2022, voters approved recreational, adult-use cannabis. Sales officially began in February 2023. And like all legal states, Maryland requires producers to have their products lab-tested to ensure consumer safety, including a few additions or changes that early-adopter states may not include in their programs. 

Under Maryland state law, all “raw plant material” including pre-rolls are required to be tested at a state-licensed laboratory for: 

  • Moisture Content and water activity;  
  • Residual solvents and processing chemicals;  
  • Residual pesticides;  
  • Microbial impurities;  
  • Mycotoxins;  
  • Foreign materials;  
  • The “big four” heavy metals (arsenic, cadmium, lead and mercury) and chromium;  
  • Cannabinoids; and 
  • Terpenes 

Aside from cannabinoids and terpenes – which is information consumers often look for and want to know when purchasing – all the rest are safety issues. 

“Laboratory testing minimizes the risk of pesticides, microbes, heavy metals, toxins, and residual solvents from being consumed by an immunocompromised population,” reads the most recent revision of the Maryland Cannabis Administration’s Technical Authority For Cannabis, a 33-page document detailing the requirements and procedures labs in the state must perform on cannabis products. 

Like many states that have come online in later waves of legalization, Maryland law requires testing of cannabis products in their final form. That, for example, means testing the completed, fully-packed pre-roll, not just the flower that gets packed into it. 

That means all your ingredients, including your pre-rolled cones, need to be as clean as your flower, or you risk losing the whole batch due to a failed test. 

MICROBIALS AND MYCOTOXINS 

While adult-use cannabis sales continue to climb, Maryland still has a fairly robust medical marijuana program that includes nearly 134,000 patients. For those consumers in particular, making sure the cannabis products they use, including pre-rolls, are as safe as possible is vitally important. 

Testing for Microbials and Mycotoxins, for example, while important safety considerations for healthy users, is key for those who may be immunocompromised. Mycotoxins are a toxic compound produced by molds, such as Aspergillus, and can suppress the immune system and cause liver damage.  

Maryland requires testing for two classes of mycotoxins, Aflatoxins and Ochratoxin A. Both have properties that can alter DNA and potentially cause the formation of cancer cells. Testing for mycotoxins help ensure cannabis products are safe for human consumption. 

Regulations require a total mycotoxin concentration of less than 20 parts per billion in order to make it to dispensary shelves. 

Maryland law also requires testing for E. coli and Salmonella, among others. 

In a similar vein is the requirement to test for water activity, a measure of the available water that can be a breeding ground for microbiological growth. Like most states, Maryland caps water activity at 0.65 Aw in flower and pre-rolls, since water activity above 0.70 Aw creates the conditions for mold to grow, which can be harmful if consumed. 

HEAVY METALS INCLUDING CHROMIUM 

Heavy metals are absorbed into the plant from the soil and can damage all the body’s vital systems, including respiratory, central nervous and even the reproductive system. 

Like many states, Maryland requires testing for the “big four” heavy metals mercury, cadmium, lead, and arsenic, which are toxic to humans, even at small doses. But unlike many legacy markets, Maryland is among a handful of recently-legal states that also require testing for chromium, another dangerous heavy metal. Once chromium reaches the bloodstream, it can damage the kidneys, liver and blood cells with the potential for renal and liver failure if untreated. 

RESIDUAL PESTICIDES AND CHEMICALS 

Maryland also has strict laws regarding the use of pesticides and other “crop protection agents” (like fungicides) on cannabis. There are 146 crop protection agents approved for use on cannabis by the Maryland Department of Agriculture. 

The state also specifically requires testing for 48 pesticides and plant growth regulators, each with their own actionable limits, any of which can require the product to be destroyed. 

There are similar requirements for residual solvents used in the process to create cannabis extracts for vape cartridges or infused pre-rolls. 

LAB REQUIREMENTS 

Along with direction on actionable limits, Maryland requires that all cannabis products be tested at one of the four labs that are certified by the state and accredited to ISO/IEC 17025 by an International Laboratory Accreditation Cooperation (ILAC) recognized third party.  

Additionally, the state offers guidance on exactly how samples are to be collected and maintained, including notes on be sure the lab is clean and that employees use personal protective equipment to ensure samples are not contaminated. There is also direction on the standard operating procedures required for some of the tests. 

“To reliably provide the laboratory with a representative sample, standard sampling methods with descriptive steps must be applied with quality and consistency,” reads the technical authority document. “All sampling must be consistently performed using accepted methodologies.” 

PRE-ROLL COMPLIANCE AND SAFETY 

As noted, Maryland’s cannabis testing is done on products in their final form, meaning that, for example, any pre-rolls must be tested after being packed in their cones. That means that no matter how attentive to the rules you are, your product can still fail if your pre-roll supplier is not as diligent as you are. 

On top of that, customers – especially medical patients – should not be worried that the products they are using to help feel better will make them sicker, whether they purchase a pre-roll at a store or pack a cone at home themselves with their favorite flower. 

“You’re putting something in your body; make sure it’s high quality,” says Custom Cones USA Compliance Manager André Bayard. 

Testing is not required on rolling papers and pre-rolled cones, so many producers do not know what they are getting in their paper, which can contain all of the same dangers as cannabis. For example, a study from California’s SC labs found that 11% of rolling papers they tested would fail that state’s testing regiment, which doesn’t even include Chromium, and that 90% of rolling papers contained heavy metals with more than 8% containing them at a rate above the allowable limits 

Bayard recommends making sure your pre-roll supplier has COAs available to prove their products are clean and will pass tests or will send you samples for you to test before committing to a full order. 

“Work with a company that focuses on those requirements and are trying to set the industry standard with their products,” Bayard says. “Any one issue can be detrimental to your brand reputation.” 

JOIN US AT THE FOREFRONT: REGISTER FOR NCIA’S MARYLAND STAKEHOLDER SUMMIT

Don’t miss out on the opportunity to delve deeper into Maryland’s cannabis landscape at the upcoming NCIA Maryland Stakeholder Summit 2024. This event, hosted by the National Cannabis Industry Association on Tuesday, April 2nd in Baltimore, MD brings together key players, industry experts, and stakeholders to discuss the latest developments, regulations, and opportunities shaping Maryland’s cannabis market.

 

As a special offer for Industry Insights readers, NCIA is excited to provide a 20% discount code for summit registration. Simply use the code CUSTOMCONESMD25 at checkout to unlock your savings and secure your spot at this must-attend event.

Whether you’re a producer, retailer, advocate, or simply interested in learning more about the industry, this summit offers invaluable insights and networking opportunities. Join us as we explore strategies for navigating regulatory challenges, ensuring product quality, and driving innovation in this dynamic sector.

Register now to secure your spot at the Maryland Stakeholder Summit and be part of the conversation driving Maryland’s cannabis industry forward. Don’t miss your chance to connect with industry leaders, gain valuable knowledge, and contribute to the growth and success of Maryland’s cannabis market.

Register here and be at the forefront of Maryland’s cannabis revolution!

 

Navigating Missouri’s Stringent Cannabis Testing Requirements: A Deep Dive

When it comes to cannabis testing requirements, Missouri absolutely lives up to its nickname as the Show Me State, requiring its licensed cannabis businesses to run a wide series of tests to prove the cannabis they are sending to store shelves is safe.

As a relatively new state to join the cannabis industry, with voters approving medical marijuana in 2018 and recreational cannabis in 2022, Missouri has had the benefit of watching several other states develop programs ahead of it and its testing regulations reflect that.

Among the strictest testing regiments in the industry, Missouri’s regulations require all cannabis products produced for the medical or recreational market to be tested in its final form, including pre-rolls. That means not only is the flower subject to testing, but your paper and any other ingredients as well, since anything can cause a failure that can see the whole product lot destroyed.

In Missouri, both flower and pre-rolls, for example, must be tested by one of 10 state certified labs for:

  • Moisture Content and water activity;
  • Residual solvents and processing chemicals;
  • Residual pesticides;
  • Microbial impurities;
  • Mycotoxins;
  • Foreign materials;
  • The “big four” heavy metals (arsenic, cadmium, lead and mercury) + Chromium;
  • Cannabinoids; and
  • Terpenes (if requested).

The majority of these tests are designed to protect consumers from potential dangers hidden in their cannabis products, so it is important that any rolling paper or pre rolled cones you buy – even for personal use – should pass these tests.
For example, moisture content and water activity can point to the potential for mold growth. Any water activity above 0.70 Aw creates the conditions for mold to grow, which can be harmful if consumed, which is why Missouri, like many states, caps water activity at 0.65 Aw in flower and pre-rolls.

THE BIG FOUR HEAVY METALS PLUS CHROMIUM

Like many states, Missouri requires testing for the “big four” heavy metals mercury, cadmium, lead, and arsenic, which are toxic to humans, even at small doses. Heavy metals are absorbed into the plant from the soil and can damage all the body’s vital systems, including respiratory, central nervous and even the reproductive system.

Missouri, however, is one of a handful of states that also include chromium in their testing regiment, another dangerous heavy metal. Once chromium reaches the bloodstream, chromium can damage the kidneys, liver, and blood cells with the potential for renal and liver failure if untreated. So, you can see why states have begun adding it to their testing requirements.

MICROBIALS AND MYCOTOXINS

While heavy metals are dangerous, microbials and mycotoxins pose the greatest risk to human health.
Mycotoxins are a toxic compound produced by molds, such as Aspergillus, and can suppress the immune system and cause liver damage. Missouri requires testing for two classes of mycotoxins, Aflatoxins and Ochratoxin A. Both have properties that can alter DNA and potentially cause the formation of cancer cells. Testing for mycotoxins help ensure cannabis products are safe for human consumption.
Missouri regulations require a total mycotoxin concentration of less than 20 micrograms per kilogram for cannabis to receive a passing mark.
Missouri also requires testing for other microbials like Pathogenic E. Coli, Salmonella and Pathogenic Aspergillus Species including A. fumigatus, A. flabus, A. niger and A. terreus.

PESTICIDES

Missouri also requires testing for residual pesticides and other chemicals. The state allows some pesticides to be used on cannabis – tracked by the Missouri Department of Agriculture’s Pesticide Program – but cultivators are required to report in the state track and trace system all pesticides, fertilizers and other chemicals applied to the plants, as well as all the ingredients contained in each of those.
State law requires tests for 61 chemicals and 20 residual solvents, with actionable limits, and foreign matter screening.

LABELING LAWS

Missouri also has a very strict labeling law for its cannabis packaging that requires specific information in a specific order, beginning with the state’s diamond THC logo, the letter “M,” all ingredients, license number of the producer and where the products passed their testing, as well as the track-and-trace number for the samples and the THC potency, among others.

LAB LICENSING AND LAB SHOPPING

Aside from specifics for testing, the Show Me State goes even further when it comes to which labs can be used and how those labs get licensed.

Missouri law contains provisions for exactly who at the labs can conduct the tests, requiring the labs to be employ a laboratory director with a degree in a natural science and at least five years’ experience in a regulated lab environment or a degree in “another applicable field” with 10 years’ experience. It also requires the person performing the test to have a bachelor’s degree in natural science and at least two years of lab experience.

But recent updates to Missouri’s regulations go even a step further than most states in an attempt to stop the process known as “lab shopping” to get desired results. Normally aimed at trying to limit THC potency inflation, the new law requires producers and labs to submit their samples to other labs so results can be compared.

For example, the new regulations say that up to 10 times per year, the state will require one lab to pick up samples from another lab and re-perform a test. The state will review all the results to make sure they have similar potency results and to see if one lab is passing samples for pesticide residue while another one is failing it.

According to Custom Cones USA Compliance Manager André Bayard, while the main focus of the new law appears to be THC potency inflation, which, of course, is a major driver of sales for cannabis companies, that too is a safety concern, especially in the medical market or for low-dose patients and consumers.

ENSURING PRE-ROLL COMPLIANCE

As noted, the Missouri law requires all products be tested in their final form, including pre-rolls. That means even if your cannabis is clean, your products can fail and be destroyed if your rolling papers are not.

Because of that, manufacturers need to protect themselves – and their customers – by carefully selecting suppliers. After all, a study from California’s SC labs found that 11% of rolling papers they tested would fail that state’s testing regiment, which doesn’t even include Chromium, and that 90% of rolling papers contained heavy metals with more than 8% containing them at a rate above the allowable limits.

Pre-roll manufacturers in particular need to pay attention to their suppliers and make sure that the company from which they buy their paper takes testing as seriously as they do. Bayard recommends making sure your pre-roll paper supplier is a partner.

“Find a supplier that is willing to work with you and do the due diligence to make sure you know ahead of time whether your paper will pass,” Bayard says.

Bayard notes that when contacted by a manufacturer in Missouri in 2022 about chromium content causing failures, Custom Cones USA sent samples ahead of time so the manufacturer could pack and test a handful of their completed pre-rolls to make sure the products were clean before committing to a full order.

If your pre-roll supplier is not willing to go through that step, it may be a red flag.

Testing failures can be expensive, so make sure you not only keep up on the latest changes to your states regulations, but also work with a Pre-Roll Expert to get the cleanest, best-tested pre rolled cones you can find. And always ask to see COAs.

Engage with Missouri’s Cannabis Community: Join Us at the Summit!

As you navigate through Missouri’s stringent cannabis testing requirements, it’s imperative to stay informed and engaged with the latest developments in the industry. To further your understanding and involvement, consider joining us at the upcoming Missouri Stakeholder Summit, hosted by the National Cannabis Industry Association (NCIA). The Missouri Stakeholder Summit serves as a crucial platform for industry leaders, policymakers, and stakeholders to convene and discuss the pressing issues shaping Missouri’s cannabis landscape. Each event will host a wide range of programming including interactive panel discussions, intimate fireside chats, and live Q&A to provide participants the opportunity to make the Voice of Main Street Cannabis heard by key decision makers.

All industry professionals are invited; NCIA members attend free and have exclusive access to Q&A sessions. From regulatory updates to market insights, this summit offers a comprehensive view of the opportunities and challenges ahead. From regulatory updates to market insights, this summit offers a comprehensive view of the opportunities and challenges ahead.

 

Ready to elevate your involvement in the cannabis industry? Explore the benefits of NCIA membership and gain access to exclusive resources, networking opportunities, and advocacy initiatives. Join online today or schedule a meeting with our team to learn more about membership and how NCIA can support your professional growth and business success.

Whether you’re a seasoned professional or new to the industry, the summit provides invaluable networking opportunities, expert panels, and discussions tailored to meet your needs. It’s a chance to connect with like-minded individuals, gain strategic knowledge, and contribute to the growth of Missouri’s cannabis market. Don’t miss out on this unique opportunity to be part of the conversation that drives change and innovation in Missouri’s cannabis industry. Register now to secure your spot and take an active role in shaping the future of cannabis in the Show Me State!

Webinar Release: Positioning for Prosperity – Insurance Essentials for Social Equity Awardees

In our ongoing commitment to providing timely and essential education to the cannabis industry, the National Cannabis Industry Association (NCIA) recently hosted a thought-provoking webinar titled “Positioning for Prosperity: Insurance Essentials for Social Equity Awardees.” In collaboration with NCIA’s Risk Management & Insurance Committee (RMIC), this webinar delved into the critical considerations surrounding insurance needs within the cannabis industry.

Led by a panel of esteemed experts, the discussion navigated the intricate landscape of insurance coverage, specifically tailored to address the needs of social equity awardees. From exploring the advantages and disadvantages of social equity programs to addressing challenges such as information inaccessibility and skyrocketing premiums, the webinar provided valuable insights for businesses seeking to navigate the insurance landscape.

Key topics included:

  • Defining social equity awardees and discussing their advantages and disadvantages in the industry and market.
  • Exploring the unique coverage needs for social equity awardees.
  • Examining real-life examples of what has and hasn’t worked in the cannabis industry regarding insurance coverage.
  • Understanding the differences between state requirements and optimal coverage for cannabis businesses.
  • Exploring other financial requirements that help social equity awardees establish sustainable companies.

Panelists:

Angela White
Equity for Industry Program Manager
Success Centers SF

Antoine Mordican
Owner/CEO
Native Black Cultivation

Nichelle Santos
Founder, CEO
CannaCoverage Insurance Services

Matthew Johnson, CICS
Risk & Insurance Consultant
AssuredPartners

Cimone Casson (Moderator)
CEO
Minorities for Medical Marijuana

Throughout the webinar, participants gained insights into how to position their businesses for success in the evolving cannabis landscape while gaining a deeper understanding of the vital role organizations like CANNRA play in progressive policy improvement.

Missed the webinar? Don’t worry! You can watch the full recording on our YouTube channel below.

At NCIA, we remain committed to providing valuable resources, education, and insights to empower businesses and individuals within the cannabis industry. Stay tuned for more updates, webinars, and events designed to support your journey in the cannabis space.

Thank you to our panelists, attendees, and the RMIC for their contributions to making this webinar a success.

Member Blog: The Entrepreneurial Operating System – Industry Agnostic

The EOS model was developed by Gino Wickman, an entrepreneur and author, based on his experiences working with small to medium-sized businesses. The system was introduced in the book “Traction: Get a Grip on Your Business”, written by Gino Wickman and published in 2007.

Today, EOS is utilized by a wide range of businesses across different industries, helping them establish a strong foundation for growth, enhance leadership effectiveness, and achieve greater overall success. The EOS framework’s practical approach and focus on accountability have contributed to its widespread adoption in the business world.

Diving into the six key components of the EOS (Entrepreneurial Operating System) model – Vision, People, Data, Issues, Process, and Traction – and discuss how strengthening the 6 components can increase team health, profitability as well as scalability in a business.

1. Vision:

Define a Clear Vision: Articulate a compelling and clear vision for the organization, involves identifying the core values, purpose, and long-term goals. Assisting in communicating this vision effectively to align everyone in the organization.

2. People:

Right People in the Right Seats: Assess whether the right individuals are in the right roles. Identify strengths and weaknesses, ensuring that each team member is aligned with their unique abilities.

Cultivate a Healthy Culture: This guide helps creating a positive and constructive workplace culture. This involves fostering open communication, trust, and accountability among team members.

3. Data:

Identify Key Metrics: Determine the critical metrics and data points that impact a business. Examples are financial indicators, customer satisfaction scores, or operational efficiency metrics.

Implement Data-Driven Decision-Making: Establishing a system for collecting and analyzing data regularly. Data-driven decision-making helps to enhance overall performance and adaptability.

4. Issues:

Create an Open Issues List: Develop a transparent issues list. This involves identifying and addressing challenges openly, ensuring that no critical issues are overlooked or ignored. Solving issues is an efficient way of bringing issues down to the ground and solving them forever.

Implement Structured Problem Solving: This is designed to be a guide to effective problem solving at the leadership level.

5. Process:

Document Core Processes: Documenting a handful of core processes ensures that everyone understands their roles and
responsibilities, fostering efficiency and reducing confusion.

Continuous Improvement: Encourage a mindset of continuous improvement.

6. Traction:

Set and Monitor Goals: Setting SMART goals (Specific, Measurable, Achievable, Relevant, Time-bound). Establishes a system for monitoring progress.

Implement Regular Accountability Meetings: Conducting regular accountability meetings to track progress, discuss
challenges, and ensure alignment with company objectives.

These tools are part of the EOS framework, which aims to help businesses, in any industry including the Cannabis Industry, become more organized, focused, and efficient in achieving their goals. Each tool serves a specific purpose within each of the 6 key components, contributing to the overall success of the organization.

Member Blog: What I Learned from Serving as an NCIA Committee Officer

The National Cannabis Industry Association (NCIA) is a business-member organization of professionals from every sector of the legal cannabis industry, from seed to sale. I finished my tenure as Chair of the NCIA Education Committee (EC) in December 2023. I joined the EC in October of 2019 as a committee member and sequentially served as committee Organizer, Vice Chair, and Chair. I now have colleagues and friends in the cannabis industry due to networking through the EC, NCIA’s other 13 committees, and my participation in NCIA conferences, regional events, and Lobby Days.

People in the cannabis industry have a passion for their work that is unlike any other I have seen. NCIA members are professionals in their field, working as medical doctors, Ph.D.s, accountants, lawyers, insurance agents, and marketing gurus, among others. Among these professionals, I felt seen and supported.

As a committee, the members were encouraged by the NCIA staff to pursue our interests and direction for the committee. There was no NCIA agenda for our work. As NCIA members, we were free to choose our path for committee projects.

As an officer, I had access to the other NCIA committee officers in our monthly all-committee call. Each committee reported their work-in-progress and announced finished projects in the form of webinars, blog posts, or white papers. The content of the website is driven by the members, and much of the content is publicly available. It takes an army to deliver cannabis products to consumers, and that army forms at NCIA.

I have listened in awe to NCIA members articulate their knowledge, and others have written beautifully. NCIA has a strong voice in Washington for the mission of federal legalization of cannabis. NCIA members write talking points on their areas of expertise and freely share cannabis knowledge for the betterment of the industry. Members have an opportunity to shape policy at the state, federal, and international levels. 

Before NCIA, I was not aware of the reality of the steps for passing legislation in Washington. I have learned about the long process and have been encouraged to use my own voice, from contacting my state and federal legislators to participating in lobbying organized by NCIA at their annual Lobby Days in Washington. I walked from congressional to senate office to office with a team to talk with staffers. I found the staffers open to the conversation about legalizing cannabis, and I learned from a few of them. Approaching a lawmaker as a member of NCIA carries more weight than being a lone concerned citizen.

The cannabis industry has businesses struggling to remain afloat, and membership revenue has declined. If your company is not an NCIA member, ask yourself if you are willing to lose your opportunity to shape the future of the cannabis industry. Then, sign up for membership and make a difference.

California Cannabis Regulations: From Policy to Practice | Policy Matters | 02.08.24

Illuminating California’s Cannabis Regulations: Insights from Industry Leaders

Welcome to the fourth edition of our esteemed Policy Matters series, where we embark on a journey through the intricate landscape of California cannabis regulations. This series, made possible by the collaborative efforts of the National Cannabis Industry Association (NCIA) and its dedicated Policy Co-Chairs, Khurshid Khoja of Greenbridge Corporate Counsel and Michael Cooper of MadisonJay Solutions, serves as a beacon of insight and discourse in the ever-evolving landscape of cannabis regulation.

Building upon the foundational discussions initiated by our previous editions, this installment shines a spotlight on California’s pioneering strides in cannabis policy. In this blog post, we’ll delve deep into the dialogues and revelations shared during the recent webinar broadcast hosted by the NCIA, exploring the multifaceted dynamics of policy-making and enforcement in one of the nation’s most influential cannabis markets with Nicole Elliott, Director of the California Department of Cannabis Control.

In September, we had the privilege of featuring Will Tilburg from the Maryland Cannabis Administration, followed by John Hudak, Director of the Maine Office of Cannabis Policy, in October, and Brian Hanna from the Michigan Cannabis Regulatory Agency in December. Each edition has been a testament to the diverse array of regulatory approaches across states, enriching our collective understanding of the industry’s intricate tapestry.

Brian Gilbert, Deputy Director of Events and Education at NCIA, set the stage for the discussion, emphasizing the importance of dialogue and collaboration in navigating the complexities of California cannabis regulations. With California serving as a focal point, the webinar delved into the multifaceted aspects of cannabis policy and enforcement.

Understanding Cannabis Policy in California & Journey to the Role

Kicking off the conversation by recognizing the pivotal role of  Nicole as one of the longest serving and most experienced cannabis regulators in the country, Khurshid & Michael expressed gratitude for her contributions to the industry. Nicole then shared her journey from local government to cannabis regulation, highlighting her commitment to social justice and equity. Her firsthand experiences with the criminal justice system underscored the importance of inclusive policies and community engagement in shaping regulatory frameworks.

An emphasis was placed on the significance of California’s regulatory evolution from a pioneering medical marketplace and its impact on industry inclusivity and diversity. From supporting legacy operators to promoting market stability, California’s regulatory efforts have paved the way for innovative initiatives like the Appalachians of Origin program, reflecting a commitment to equitable industry growth.

Enforcement Strategies and Real California Cannabis Campaign

Throughout the conversation, Nicole emphasized the importance of aggressive enforcement strategies to combat the illicit market effectively. California’s Unified Cannabis Enforcement Task Force spearheads enforcement efforts, targeting illegal activities such as labor trafficking and environmental contamination. The introduction of the Real California Cannabis campaign aims to shift consumer purchases to legal markets, fostering accountability and consumer safety.

Commitment to Social Equity and Compliance

At a pivotal moment, Nicole Elliott acknowledged historical inequities in the cannabis industry, advocating for initiatives beyond licensing solutions. Fee waivers and promising practices are key components of California’s social equity programs, promoting inclusivity and supporting operators from marginalized communities.

With consumer safety at the forefront, the Department of Cannabis Control prioritizes compliance and transparency in enforcement actions. Operators must adhere to regulations to ensure product safety, with penalties imposed for non-compliance. Transparent enforcement actions empower operators to uphold regulatory standards and foster consumer trust.

Challenges and Opportunities, Partnerships and Collaboration

The influx of hemp-derived cannabinoid products presents regulatory challenges at the federal and state levels. Collaborative efforts between regulators and industry stakeholders are essential to address public health concerns and ensure regulatory compliance. Federal rescheduling efforts and cultivator regulations further underscore the need for adaptive regulatory frameworks that prioritize consumer safety and industry viability.

The webinar highlighted the importance of partnerships and collaboration in addressing regulatory challenges and fostering a safe and thriving cannabis market. Organizations like the Cannabis Regulators Association (CANNRA) play a pivotal role in facilitating dialogue and sharing best practices among regulators and industry stakeholders.

Curtains Drawn: Reflecting on Insights, Looking Forward to Action

As we draw the curtains on yet another insightful edition of our Policy Matters series, we extend our heartfelt gratitude to our readers, esteemed speakers, and the unwavering guidance of NCIA’s Policy Co-Chairs, Khurshid Khoja and Michael Cooper. Their steadfast commitment to fostering dialogue and collaboration has been instrumental in shaping the discourse surrounding cannabis regulation and policy.

To delve deeper into these discussions and gain comprehensive insights on California cannabis regulations, we encourage you to view the complete recording of the webinar on our YouTube channel. There, you’ll find a wealth of information and perspectives from our esteemed speakers, shedding light on the complexities and opportunities within the California cannabis regulatory landscape.

From the corridors of Maryland to the rugged landscapes of Maine, and the vibrant markets of Michigan and California, each edition has illuminated the diverse spectrum of regulatory frameworks and industry dynamics shaping the cannabis landscape. As we eagerly anticipate future editions, let us continue our pursuit of knowledge, empathy, and innovation, forging a path towards a more equitable and prosperous cannabis industry for all stakeholders involved.

California Stakeholder Summit: Bridging Policy and Practice

We hope you’ve made plans to join us for our California Stakeholder Summit, taking place later this month on Thursday, February 22nd in Sacramento, CA. This event promises to be a pivotal moment for stakeholders across the California cannabis industry as we convene to explore topics including proposed state legislation affecting hemp-derived cannabinoid products and the impact of federal rescheduling on state-legal markets.

Nicole Elliott will be speaking on a panel alongside Congresswoman Barbara Lee (D-Oakland) and moderated by NCIA Director of Government Relations Michelle Rutter Friberg. Together, they will delve into the complexities of federal rescheduling and its implications for California’s cannabis regulations and dynamic marketplace.

Join us as we bridge the gap between policy and practice, forging meaningful connections and driving forward progress in one of the nation’s most influential cannabis markets. Don’t miss this opportunity to be part of the conversation shaping the future of cannabis regulation in California and beyond. Register now to secure your place at the California Stakeholder Summit 2024.

Member Blog: The Importance of Supporting Black-Owned Companies, Small Business and Social Equity Participants

The cannabis industry has been rapidly growing in recent years, with many new businesses and startups entering the market. However, it is important to note that not all cannabis companies are created equal, as there is a significant lack of diversity in the cannabis industry.

Studies have shown that only a small percentage of cannabis companies are owned by people of color. This lack of diversity can have negative impacts on the industry, including limited perspectives and ideas, and a lack of representation for marginalized communities.

To promote diversity and equity in the industry, it is crucial to support black-owned companies, small businesses, and social equity participants in the cannabis industry. By doing so, we can help level the playing field and promote a more inclusive and representative industry for all.

One great opportunity to learn more about supporting black-owned companies in the cannabis industry is the Black Elevation Cannabis Affair. This event brings together pioneers in the industry to share their experiences and insights on how to succeed as a black-owned cannabis company. In honor of Black history month, the event is being held at The Roostertail in Detroit, Michigan on February 10, 2024, and attendees can expect to learn about a variety of topics, including the challenges and opportunities that come with owning a cannabis business, how to navigate legal and regulatory hurdles, and how to build a successful brand and customer base.

In conclusion, promoting diversity and equity in the cannabis industry is essential for the growth and success of the industry as a whole. Supporting black-owned companies, small businesses, and social equity participants is a crucial step toward creating a more inclusive and representative industry. To learn more about supporting black-owned companies in the cannabis industry, be sure to attend the Black Elevation Cannabis Affair.

Member Blog: Personal Touches for Successful Cannabis Dispensaries

Everyone in the retail dispensary industry is trying to create unique and memorable ways to bring in more customers and up the per ticket sales. The trend of the past few years has been to try to appeal to as many people as possible, and take on almost a generic, fast food style. This is exactly what the big guys do. Cookie cutter locations that lack personality and individuality. While this may be tempting to replicate and seem like a sure fire win, designing your location to appeal to everyone ends up boring your ideal customer. Cannabis retail experiences should have an on brand wow factor. If customers didn’t want that, they could just order online and pickup. 

Dispensaries strive to create unique and memorable experiences for their customers. As a retail interior designer with a focus on dispensary design, incorporating personal touches can significantly contribute to the success of the dispensary. These special touches also boost your brand identity and be a great starting point for marketing and social media content for your brand. 

How do you reflect your brand identity?

One of the key aspects of dispensary design is ensuring that the space reflects the brand identity of the cannabis retailer. Incorporate elements that showcase the company’s values, mission, and overall aesthetic. I love when I walk into a dispensary and learn the “why” behind the brand. Why are they doing this? Who are they impacting? A favorite ‘personal touch’ of mine happens to be a mural dedicated to the store owner’s mother who had passed away from cancer. My client opened his dispensary to provide relief to other cancer patients. The murals featured her namesake flower as well as her favorite colors. He is an aquaponic grower, hence the fish. 

From custom signage to branded displays, and incorporating unique and personal touches ,a cohesive visual identity contributes to a memorable and recognizable dispensary experience.

How can I merchandise?

Creative merchandising plays a crucial role in attracting and retaining customers. It also goes way beyond just how something looks on a shelf or wall. Use personalized displays to highlight featured products, promotions, or staff picks. This doesn’t necessarily mean more info cards or signage. Incorporate unique shelving, display cases, or even interactive elements that engage customers and encourage exploration within the space. A great example of this is at the Woods. Check out how a very simple wall mounted box display fits the personality of the shop and also engages people to take a longer peek. 

How can I represent my culture & philanthropy?

Infusing your proud culture and art into the dispensary design is a great way to show people who you are, who you support and where you came from.  Whether it’s through local artist artwork, murals, or installations, integrating artistic elements adds depth and character to the space. Collaborating with local artists to create custom pieces that resonate with both the brand and the community. Talk about organizations that you support and what they do. I have a great client who includes a small card in each bag that says “Thank you for your purchase. We donate 10% of our profits to the Friends of Puerto Rico.” They also feature contemporary Puerto Rican Artists in their hall gallery and entry area. 

Ultimately, dispensaries will compete for customers and sales, like it or not. In the competitive retail world, personal touches set cannabis retailers apart and contribute to the overall success. Whether through reflecting brand identity, engaging visual merchandising, artistic influences, comfortable spaces, personalized interactions, interactive technology, or sustainable elements, the goal is to create a unique and welcoming experience for customers. As a retail interior designer, embracing these creative ideas elevate the dispensary’s aesthetic and establish a lasting connection with its clientele.

Member Blog: California’s Gold Standard – Navigating Cannabis Testing Regulations

By Harrison Bard, Co-Founder and CEO, Custom Cones USA

Understanding California’s Regulatory Landscape & Comprehensive Testing Requirements

While every state has its own testing requirements for the cannabis industry, few markets require more than California, which has been on the leading edge of cannabis testing and regulation since voters approved the state’s recreational market. 

In the Golden State, all cannabis products must be tested by a licensed laboratory in their final form, or how the product will be sold to customers at retail, not just the flower. That means that not only does your flower have to be clean, but so does all of your other ingredients or components, since anything can trigger a failure, including the paper in your pre-rolls. 

Testing Parameters: Ensuring Safety

Both flower and pre-rolls, for example, must be tested for:  

  • Moisture Content and water activity; 
  • Residual solvents and processing chemicals; 
  • Residual pesticides; 
  • Microbial impurities; 
  • Mycotoxins; 
  • Foreign materials; 
  • The “big four” heavy metals (arsenic, cadmium, lead and mercury); 
  • Cannabinoids; and
  • Terpenes (if requested). 

Almost all of these tests get at a safety issue.  

Moisture content and water activity, for example, relate to mold growth. Water activity is a measure of the percentage of water in your cannabis product. In California, a cannabis sample cannot have a water activity of more than 0.65 Aw (or 0.85 Aw for solid edible products). This is because anything above 0.70 Aw creates the conditions for mold to grow, which can be dangerous if consumed. 

Addressing Safety Concerns: Mycotoxins and Pesticides

Mycotoxins are also a safety issue. Mycotoxins are a toxic compound produced by molds, such as Aspergillus, and can damage the liver and even suppress the immune system. The two classes of mycotoxins that California requires testing for, Aflatoxins and Ochratoxins, have properties that can alter our DNA and even spur the formation of cancer cells.  Mycotoxin testing ensures that products are safe for human consumption and inhalation.  In California, samples may not exceed 20 micrograms of either aflatoxins and ochratoxins. 

Like many states California also requires testing for residual pesticides, including 21 “Category I” chemicals that are not allowed in any amount and 45 “Category II” chemicals that include “action levels” that the sample may not exceed. These chemicals can be very harmful to humans, causing damage to organs and other long-term health issues. 

The state provides a list of acceptable pesticides through its Department of Pesticide Regulation website. 

The state also requires testing for the heavy metals mercury, cadmium, lead and arsenic. All four of those metals are toxic to humans, even at small doses, and can damage all the body’s vital systems, including pulmonary, reproductive and even the central nervous system. For inhalable products, the state sets the pass/fail actionable level at 0.1 micrograms for mercury, 0.2 micrograms for arsenic and cadmium and 0.5 micrograms for lead.  

These tests for heavy metals are especially important because cannabis plants are a well-known bio-accumulator that absorbs and collects heavy metals from the soil in which it grows. 

Regulatory Updates and Standardization

In 2024, California also created standardized operating procedures and test methods for testing cannabis flower and pre-rolls and requires all of its licensed laboratories to use the new SOPs to ensure testing is consistent across the state. 

Key Considerations for Manufacturers: Paper Suppliers

But one of the keys to California’s regulations is the need to test all products in their final form, which means that not only does your flower have to pass all tests, but every other part of your product as well. For pre-rolls, this includes your rolling papers and cones. And there have been instances of the papers causing batches of products to fail testing.  

There are also examples of rolling papers that, when tested on their own, have actionable levels of heavy metals or pesticides, for example. 

Ensuring Compliance: Pre-Roll Manufacturers Beware

SC Labs, one of California’s licensed testing labs, found that 11% of rolling papers tested during a recent study would fail testing. The lab purchased 118 products from Amazon and several smoke shops in the Santa Cruz area. Its scientists tested 101 for heavy metals and 112 for pesticide contamination. At least one heavy metal was detected in 90% of the rolling paper products with 8% containing at least one heavy metal in concentrations above the allowable limits. Pesticides were detected in 16% of the samples with 5% coming in over the allowable action limits. 

Because of this, pre-roll manufacturers need to be especially careful in their choice of paper supplier to ensure that the cones you pack your pre-rolls in don’t cause an entire batch of product to need to be destroyed, or worse. 

Expert Insights and Recommendations

“Take due diligence to make sure your product is viable. Any one issue can be detrimental to your brand reputation,” says André Bayard, Compliance Manager at Custom Cones USA.  

Bayard says it’s important to find a pre-roll supplier that focuses on testing and compliance and can provide a Certificate of Analysis to back up its products so your finished pre-rolls are as clean as the flower you put in them. 

“In highly regulated markets, work with a company that focuses on those requirements and are trying to set the industry standard with their products,” Bayard says. 

Conclusion: Upholding Standards

A testing failure can be cumbersome and costly, especially for smaller businesses, and can follow a company and its products even after the issue is corrected. You put a lot of care and effort into growing the best cannabis you can, so make sure your pre-roll supplier does too.   

Join Us for More Exclusive Insights on California Marketplace

Striving to stay informed about California’s dynamic cannabis industry? We’re thrilled to invite you to two exciting NCIA events tailored for California’s vibrant cannabis industry. Mark your calendars for our upcoming California Stakeholder Summit being held in Sacramento, CA on Thursday, February 22nd and the California-focused edition of our Policy Matters webinar series being broadcast on Thursday, February 8th.

• California Stakeholder Summit 2024: Dive deep into the latest trends, regulations, and opportunities shaping California’s cannabis landscape. Join featured speakers United States Representative Congresswoman Barbara Lee (D-Oakland), Director of California Department of Cannabis Control, Nicole Elliot, and California Assembly Majority Leader Cecilia Aguiar-Curry (D-Winters). All industry professionals are invited; NCIA members attend free and have exclusive access to participate in the Q&A session. Register here to secure your spot.

• Policy Matters: Golden State Green – Regulating California’s Cannabis Industry: Join us for an insightful discussion on the evolving policies and regulations impacting California’s cannabis sector. Gain valuable insights from experts and thought leaders driving change in the Golden State. Register now to reserve your virtual seat.

Don’t miss out on these invaluable opportunities to stay informed, network, and shape the future of cannabis in California. Register today and be part of the conversation!

Member Blog: Cannabis Convenience – Exploring the Rise of Delivery Services in Local Markets

by Erika Cruz, Outreach Monks

Remember the long lines and awkward whispers at the dispensary? Those days are fading faster than you can say “indica.” Cannabis delivery services are popping up around the corner, delivering your favorite flower, edibles, and more right to your door. This boom isn’t just about convenience, though. It’s about changing laws, new technology, and a growing desire for discreet, easy access to cannabis.

What’s particularly intriguing is the role of legislation in shaping this landscape. For instance, California voters approved Prop 64 or the Adult Use of Marijuana Act, allowing adults 21 yrs or more to legally grow, possess, and use cannabis for non-medical purposes. This state act not only welcomed statewide legalization but also allowed its 58 counties, including the city of Sacramento, the autonomy to develop their policies and regulations around cannabis retail, manufacturing, and cultivation. This decentralized approach has been instrumental in fostering the growth and diversity of California’s cannabis market, setting the stage for the rise of innovative delivery services.

So, what’s driving this surge in cannabis delivery service? In this article, we’ll dive into this question and discover how delivery services are not just changing the face of cannabis retail but also influencing consumer behavior and nurturing a sense of community among cannabis enthusiasts.

What is Cannabis E-commerce?

Cannabis e-commerce refers to the online retailing of cannabis products. This type of e-commerce operates within the legal frameworks of regions where cannabis is legally permitted for medicinal or recreational use. It involves various products derived from the cannabis plant, such as dried flowers, oils, edibles, and other related merchandise.

In cannabis e-commerce, consumers typically browse an online platform or website that lists available cannabis products. These platforms provide product descriptions, potency levels, usage instructions, and pricing information. Consumers can select products, add them to a virtual cart, and purchase online. The purchased items are then delivered to the consumer’s location, subject to legal regulations regarding delivery and distribution. 

But if you are not sure which cannabis seller to trust, look for a seller who prioritizes safe, reliable, and convenient access to a diverse selection of cannabis products. For instance, Nexus Delivers in Sacramento is a notable choice to explore. Their dedication to quality, safety, and variety sets them apart as a trusted option in cannabis e-commerce.

 

Driving Forces Behind the Rise of Cannabis Delivery

 

1. Convenience and Discretion

Cannabis delivery brings your order discreetly to your door, on your schedule. Perfect for busy bees or privacy seekers, it’s the hassle-free high you crave. No crowds, no awkward stares, just pure convenience and the freedom to enjoy at your own pace. 

Plus, discreet packaging and secure payment methods are essential components of this aspect. It involves ensuring that all transactions and deliveries are conducted with the utmost confidentiality, protecting consumers’ privacy. 

2. Enhanced Product Selection and Information

Online platforms boast wider product selections compared to local dispensaries, often presenting detailed descriptions, reviews, and educational resources. This empowers consumers to make informed choices, discover new strains and products, and compare prices with transparency.

So, blast off from the dispensary doldrums and dive into the boundless knowledge and options offered by delivery – your perfect bud awaits.

3. Accessibility and Inclusivity

Accessibility means that consumers, regardless of their location, can easily browse and purchase cannabis products online. It breaks down geographical barriers, enabling those in remote areas or with limited mobility to access the benefits of cannabis.

Inclusivity goes beyond geographical access and emphasizes catering to a diverse clientele. It involves offering a range of products to suit various preferences and needs, including those seeking medicinal benefits. This means sellers can reach a broader audience and sell more. 

4. Competition and Market Expansion

Delivery services play a pivotal role in fostering competition and driving market expansion in the cannabis industry. They act as catalysts, sparking a cycle of benefits for both businesses and consumers. By offering convenient and efficient delivery options, dispensaries are compelled to compete vigorously.

This competition has a twofold effect. Firstly, it exerts pressure on prices, forcing dispensaries to lower their rates to remain competitive. Secondly, it incentivizes dispensaries to enhance the quality of their cannabis products and elevate their customer service standards. As a result, consumers enjoy more affordable options, a wider array of top-notch products, and superior service.

Data and Marketing Opportunities

Delivery platforms gather valuable data on user preferences and consumption patterns, enabling targeted marketing and product development. This information forms the foundation for targeted marketing strategies. Dispensaries can personalize customer experiences, offering tailored product recommendations that align with individual tastes and needs.

Additionally, businesses can identify specific demographics and market segments, allowing them to effectively develop and fine-tune their product offerings to cater to these diverse groups.

Evolving Regulatory Landscape

Legitimate and licensed delivery services are emerging, and this transformation is creating a safer and more accountable cannabis industry.

These licensed delivery services play a crucial role in addressing various concerns. They prioritize safety by implementing robust age verification procedures, ensuring that only adults have access to cannabis products. Additionally, these services are actively involved in educational initiatives, promoting responsible consumption.

Conclusion 

Remember, it’s not just about avoiding awkward stares at the dispensary; it’s about unlocking a universe of options from your couch. As this market blossoms, let’s keep it chill, responsible, and full of delicious possibilities. After all, who wouldn’t want a world where bud travels to you? 

We appreciate your interest and hope you found this article valuable.

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