Member Blog: New Data Reveals Market Share Changes for Cannabis POS Software Providers
by Ed Keating, Co-founder and Chief Data Officer of Cannabiz Media
Point of sale software providers are a critical part of the cannabis economy, and as the industry grows, a shift is happening.
In the first half of 2019, the dominant POS providers of 2018 held onto their positions as market leaders. Others merged or were acquired, and new providers launched. Even big brands like NCR, NetSuite, and SalesForce entered the market joining Quicken and Square in an attempt to gain a piece of what they hope will be a lucrative market.
Cannabiz Media conducted a research study to identify POS software providers and market shares in mid-2019 and compared the data to findings compiled in a similar year-end 2018 report. The full report is available for free download here, and the results may surprise you.
Key Findings for Mid-Year 2019:
There are 68 unique POS software providers in the U.S. cannabis industry (up 58% from 43 in December 2018).
BioTrack is the market share leader overall.
BioTrack is the market share leader in states with medical-only cannabis programs.
Green Bits is the market share leader in states with adult-use cannabis programs.
Green Bits is the market share leader in METRC states.
Cannabis POS Market Share Shifts in the First Half of 2019
In mid-2019, the top five POS providers account for 68% of the overall cannabis market, and the top 10 account for 84% of the market. Part of this change can be attributed to active California licenses expiring and revisions to the survey methodology.
Compare those numbers to how things looked at year-end 2018 when the top 5 POS providers made up 80% of market share, and the top 10 were responsible for 93% of the market.
In addition, the number of POS vendors servicing cannabis businesses increased by 58% from 43 in December 2018 to 68 by July 2019.
In other words, while the market is still highly concentrated, the market leaders have given up some market share, and new companies continue to enter the space.
The same shifts are happening in medical-only and adult-use states.
In mid-2019, 34 POS providers were active in medical-only states (up from 15 in December 2018), and 53 were active in adult-use states (up from 40 in December 2018).
At year-end 2018, the top five POS vendors accounted for 94% of the market in medical-only states, but in July 2019, they only account for 70.4% of the market.
In adult-use states, the top five vendors accounted for 78% of the market in December 2018 but only account for 71% of the market in mid-2019.
Top Cannabis POS Software Providers in Mid-2019
According to Cannabiz Media’s research, the top five cannabis POS software providers overall in mid-2019 are:
BioTrack
Green Bits
Flowhub
MJ Freeway
Indica Online
In medical-only states, the top POS software providers in mid-2019 are:
BioTrack
MJ Freeway
Indica Online
Flowhub
COVA
In adult-use states, the market share leaders in mid-2019 are:
Green Bits
BioTrack
Flowhub
Adilas
MMJ Menu
In METRC states, the top five POS software providers in mid-2019 are:
Green Bits
BioTrack
Flowhub
Adilas
MJ Freeway
Key Takeaways
While the POS market leaders have lost some market share in recent months, the biggest battle appears to be among the top two companies, which have approximately twice as much market share as the company ranked in third place in the overall market as well as in adult-use states and METRC states. In the meantime, the other 66 POS providers that service the cannabis industry are slowly chipping away at that share.
Get the Free Report with Detailed Data, Charts, and Commentary
Visit https://cannabiz.media/pos-report-2/ to download Cannabiz Media’s complete “Point of Sale Software in the Cannabis Industry: 2019 Mid-Year Report” for free to view all of the detailed market share data, the full list of POS vendors in the cannabis industry, 2018 vs. 2019 comparisons, and specific data about POS providers in the California and Oklahoma markets.
Ed Keating is a co-founder of Cannabiz Media and oversees our data research and government relations efforts. He has spent his whole career working with and advising information companies in the compliance space. Ed has overseen complex multijurisdictional product lines in the securities, corporate, UCC, safety, environmental and human resource markets and focuses on workflow products. Ed has spent the last twenty five years in the information industry. During that time he has worked for both startup and established information companies where he has led marketing, product management and sales organizations. These companies include Wolters Kluwer/Commerce Clearing House, CT Corporation, EDGAR Online and Business & Legal Reports. At Cannabiz Media, Ed enjoys the challenge of working with regulators across the country as he and his team gather corporate, financial, and license information to track the people, products and businesses in the cannabis economy. Ed graduated from Hamilton College and received his MBA from the Kellogg School at Northwestern University. He has been active with the Software & Information Industry Association for his whole career and managed the Content Division for six years. He’s was recently a Trustee at the Country School in Madison CT and a Little League Coach for seven years.
Committee Podcast: The Emerging National Hemp Market
In this interview, industry specialist and NCIA Infused Products Committee member Ashley Hanson of Humboldt Green Light Kitchen speaks with Mike Perry, President and founder of PNX Botanicals, about the emerging national hemp market. Ashley and Mike discuss the relationship between cannabis and hemp products, the effects of regulation on small and medium-sized businesses, and testing standards for hemp CBD products. With state and federal governments rapidly developing new regulations, the conversation focuses especially on improving the conversation surrounding dosing, labeling, and product quality standards.
NCIA’s Infused Products Committee focuses on edible and topical products, reviewing existing business practices and state regulations. Regulation of these products is the IPC’s initial key focus, but the committee’s purpose is to ensure the infused product sector is helping shape its destiny, rather than being driven by differing jurisdictional regulations. The IPC is also working with the Council on Responsible Cannabis Regulation (CRCR) to develop standardized regulations for legislators and regulators to adopt as their states legalize the industry.
NCIA-PAC: Elect And Keep Our Champions On Capitol Hill
by Maddy Grant, NCIA Government Relations Manager
How does NCIA keep the momentum going on Capitol Hill? In the 116th Congress we’ve seen progress and support on cannabis issues unlike any Congress before – this is a historic time for cannabis reform!
The Secure and Fair Enforcement (SAFE) Banking Act of 2019, which is now up to 206 cosponsors in the U.S. House of Representatives, up from 95 cosponsors in the 115th Congress, is expected to have a House vote at some point in in July.
The McClintock-Blumenauer-Norton amendment, which would protect ALL cannabis businesses from federal interference, passed the House with a vote of 267-165.
Our very own NCIA member, Dana Chaves, testified in front of the Small Business House Committee and expressed the urgency for our cannabis businesses to get access to financial institutions. These are just a few of the monumental successes we have reached this year – and it’s only June. We see the momentum growing and we need to keep the pressure on.
So what does this have to do with the NCIA-PAC?
Through our NCIA-PAC we are able to fiscally aid supporters of the cannabis industry, not only elected officials, but people running for congressional office. For example, leading up to the midterm election, the NCIA Government Relations team made sure we supported close races where cannabis-friendly candidates were running against cannabis opponents. One race I distinctly recall, Nevada’s third congressional district. Susie Lee, who is a supporter of cannabis, was running against incumbent Congressman Danny Tarkanian, an opponent of cannabis. Michael Correia, NCIA’s Director of Government Relations, and I met with Susie Lee in Las Vegas and we began to discuss how close her race had come and how every single PAC dollar would help her win. At that point, we contributed $1,000 of NCIA-PAC dollars to Susie Lee’s campaign and she beat incumbent Danny Tarkarnian. This is just one race where our contributions made a difference.
Congresswoman Susie Lee from Nevada has been a supporter of cannabis issues and with NCIA-PAC dollars she can continue to represent our industry on Capitol Hill.
This wasn’t the only race that was close in 2016. The NCIA-PAC supported and helped elect 45 cannabis champions to Congress, including 15 Democratic challengers who successfully unseated incumbents who opposed reforming our outdated federal marijuana laws. Many of these races were won on razor-thin margins, which proves how far this support goes to enact change on the Hill. The NCIA-PAC aided to grow our support on Capitol Hill while establishing good relationships and educating Members of Congress.
Freshman member, Congressman Gil Cisenors, has been supportive of cannabis issues on Capitol Hill.
Government Relations Director, Michael Correia, attending Congresswoman Dina Titus fundraiser. Thanks to NCIA-PAC dollars we could attend and thank the Congresswoman for all of her work.
At the 9th Annual Cannabis Industry Lobby Days in May, we had 21 Members of Congress attend our PAC fundraiser. Congressional members showed up and spoke to NCIA members about cannabis issues on Capitol Hill and how supporting their races are crucial to allow them to continue to fight for our issues. Over and over we heard from these members about the importance of getting the right people in office that will fight for what their constituents care about. The NCIA-PAC helps us do just this, and every single dollar helps. It is time to end marijuana prohibition and to hold our congressional leaders accountable to represent the will of their constituents. Help us keep our champions on Capitol Hill and continue to add more! Whether it’s $5 or $5,000, every single dollar counts.
Think about that number for a minute. Ten thousand. Just a handful of years ago, some cannabis conferences were struggling to attract 500 people.
This explosion in the cannabis industry has had a profound effect on our nation:
Tens of thousands of businesses have started – spurring economic growth and creating hundreds of thousands of jobs. According to Leafly, there are now more than 211,000 cannabis jobs across the United States. More than 64,000 of those jobs were added in 2018.
Legal cannabis is currently the greatest job-creation machine in America. The cannabis workforce increased 21% in 2017, gained another 44% in 2018, and is expected to grow another 20% in 2019. Those are record-setting numbers.
Real estate is another sector that is booming thanks to legal cannabis. A recent study led by a by a University of Mississippi economist concluded that legal retail cannabis in Colorado increased housing values. Researchers compared cities that permitted the sale of cannabis with those that did not and found that the availability of recreational cannabis in a given area created strong housing demand and higher increases in property values.
Clearly, legal cannabis is creating jobs, opportunities, and economic growth.
But there is a dark side to the cannabis numbers. According to the American Civil Liberties Union, arrests for cannabis possession account for over half of all drug arrests in the United States. In 2017, 659,700 were arrested in the U.S. for cannabis. Over 90% of those arrests were for simple possession. Moreover, 46.9% of people arrested for drug law violations are Black or Latino, despite making up just 31.5% of the U.S. population. Additionally, over 200,000 students have lost federal financial aid eligibility because of a drug conviction.
As a nation, we must ask ourselves, how does imprisoning someone or taking away their chance at receiving an education because they possessed a small amount of cannabis (or other drug), make our country better, stronger, or greater?
Since this blog is dedicated to numbers, I’ll leave you with this one: It takes 100,000 atoms to become visible to the human eye, and even at that amount, it is only about the width of a human hair.
But it takes far fewer people to make a difference in society. Our last presidential election was won by the candidate that received over 2 million fewer votes, but won the electoral college by having just a few more votes in some key states. Just 0.2 points or about 10,000 votes separated the candidates in Michigan. Only 0.7 points or about 22,000 votes made the difference in Wisconsin.
This is not a time for us in the cannabis industry to be complacent. We have won some hard-fought victories, but there is still much to do, many wrongs to right, and a lot of work ahead.
My hope is that everyone in this amazing industry will share the belief that while we have a lot to be thankful for, we still need to keep moving forward and progressively for a better future.
Get involved. Make your voice heard. And vote.
Enjoy the conference!
CEO Kary Radestock
Kary Radestock, CEO, launched Hippo Premium Packaging in March 2016 offering an array of services to the cannabis market, including: Marketing Strategy, Brand Development, Social Media, Public Relations, Graphic and Web Design, and of course, Printing and Packaging. Radestock brings over 20 years of award-winning print and packaging expertise, and leads a team of the nation’s top brand builders, marketers and print production experts. Hippo works with businesses looking for a brand refresh or an entire brand development, and specializes in helping canna-business get their products to market in the most beautiful and affordable way possible. Radestock’s Creative Collective of talent and experts, allows her to offer world-class solutions to support the unique needs of the Cannabis Industry.
Ten Reasons To Join Us At #CannaBizSummit In Ten Days
The 6th Annual Cannabis Business Summit & Expo begins in TEN DAYS! So we’re bringing you TEN reasons why you should make plans to join us:
Your Registration Dollars are Put to Work Most industry events are out to make a buck. But when you attend one of NCIA’s business events, the money you spend goes right back into advocacy for you, your business and the cannabis industry in general.
Conference Sessions Featuring Known Industry Leaders #CannaBizSummit brings in known names in the trade that are experts in their fields. Hear from those who have experienced the same issues as you and know how to deal with them. We spend weeks creating the highest quality agendas, with carefully curated speakers and industry hot topics so that you may walk away from our events with not only a refreshing take on the cannabis market but actionable tips and tricks for your business.
SOLD OUT Expo Hall NCIA events have the proven highest concentration of buyers and sellers of any other industry event, and exhibitors have been pre-qualified and are of the highest caliber. Network with your peers and explore the exhibit hall with more than 400+ exhibitors (all NCIA members) on our SOLD OUT expo floor!. Whether you’re looking for business solutions, extraction, distillation, or grow equipment – you’ll find it on the expo floor.
Full Day Workshops NCIA has gone above and beyond to create an inspiring three-day learning experience. Not only will you be able to hear from experts in a variety of fields during our core conference program, but you can enhance your experience with an intimate, classroom-like setting in one of our exclusive pre-conference workshops. Join us for Cannabis 101, Managing for Success, INCBA Regulatory Rounds, CannaVest Investor Forum or The HEMP Biz Conference.
Full Day and Half Day Tours #CannaBizSummit tours offer a fun, interactive experience and a first-hand look at some of the most prominent cannabis businesses in northern California. Tours include the Santa Cruz, East Bay and Legion of Bloom full day tours, as well as a morning and afternoon half day tour of San Jose. Register soon – some of our tours are close to selling out!
Thought-Provoking Keynote Speakers Don’t miss this lineup of heavy hitting industry pioneersas they take the stage to discuss everything from global expansion to athletics in these not-to-be missed opening sessions! We’ll be joined by Mike Lee, Executive Vice President & CFO from Canopy Growth Corporation, who will be sharing his unique outlook for the industry. Hear the Latest in Cannabis Research and The Impact on Athletes with Dr. Jefferey Chen, physician and researcher at The UCLA Cannabis Research Initiative. He’ll be joined by Anna Symonds (USA Rugby), Nate Jackson (NFL), Frank Shamrock (MMA, and Jim McAlpine (Creator of 420 Games) who will share their own experiences and benefits of using cannabis for recovery.
Additional Education on the Expo Floor in the Elevation Lounge If you’re looking for more education outside of our conference program, the Elevation Lounge in booth #1642 is where to find it. We have eleven, 20-minute educational sessions and the best part—they’re free to all attendees.
No Consumers – We’re All business Here #CannaBizSummit is a serious place to do business. We’ve heard repeatedly that if you are serious about meeting people in the industry that can help take your business to the next level, #CannaBizSummit is where you want to be. Unlike other events we’re not focused on consumers, it’s all about business to business relationships here.
Networking with Other Cannabis Professionals Join entrepreneurs, thought leaders, and policymakers to expand your influential industry network. Create meaningful connections with fellow cannabis peers.
Blues & Buds Celebration Join thousands of industry professionals and friends at the Blues & Buds celebrationfeaturing actor, musician and cannabis farmer, Jim Belushi and the Big Blu Soul Review! All are welcome, but you must RSVP to attend. Enjoy light appetizers, drinks and dancing with friends.
Register today and plan on gaining invaluable insights and best practices for both the novice and experienced cannabis business owner.
Partner Blog: Legal Education – The Cannabis Regulatory Rounds Presented by INCBA
The International Cannabis Bar Association (INCBA) is excited to present the fourth iteration of our in-person educational partnership with the National Cannabis Industry Association’s Cannabis Business Summit and Expo.
This year, INCBA is thrilled to showcase a full day set of educational sessions on July 22, 2019 in San Jose, California that sets the bar for legal education in the cannabis industry and offers 6.5+ credits of Continuing Legal Education (CLE) in select jurisdictions. Already renowned for presenting the highest-quality legal education in the legal cannabis, INCBA has continued to refine and enhance our in-person educational offerings, and we have something special in store for our attorneys at NCIA’s #CannaBizSummit this year.
Instead of focusing on substantive topic areas (like IP, finance, or real estate), we have decided to offer a special set of sessions focused on regulatory issues that face each business type that operates in this unique industry. Loosely based on license type, our educational sessions will focus on specific stops on the vertical stream of commerce, beginning with specific issues related to cultivators, moving through multi-state manufacturing and distribution, and then addressing to E-commerce. We will take a close look at the current bottleneck in many jurisdictions – testing laboratories – and at labor and workforce considerations that affect businesses across all the above license types. In short, we are giving you what you need to know to serve your clients in the cannabis industry no matter where their focus lies.
And, just to make sure you get those valuable nuggets of information, we have made sure that every panel features a regulator that can speak directly to the concerns that you must address when advising your client. INCBA has become known for featuring the top practitioners in the country on each of our panels, and now you get to watch them discuss their approach to regulation with the people in charge of enforcement.
In addition, INCBA is excited to present the most substantively and jurisdictionally diverse set of panels that we have ever featured. No more than two attorneys from any given state sit on a panel, which means that we will be covering topics that are relevant across state lines. And, because California’s regulatory system has come online this year, it serves as the perfect foil to compare and contrast differences in jurisdictions, failures and successes of regulatory structures, and the major pain points your clients face – no matter from what state they hail.
To make sure we end the day on the right note, and to ensure that you have the opportunity to create the lasting connections that will serve you throughout your practicing career, INCBA will be hosting one of our signature after-parties at the beautiful Mosaic Restaurant and Lounge at the Sheraton Hotel in downtown San Jose. After a long day of education, come to Mosaic to network with some of the best cannabis attorneys around. The party includes light bites and drinks, as well as Bocce ball and Giant Jenga. Find the panelists you enjoyed the most, see old friends, and make new ones to lay the foundation for a lifelong successful practice in this special industry.
As the first (and only) specialty bar association that exclusively serves the business needs of the cannabis industry globally, INCBA is the hub where cannabis industry lawyers come together to connect with each other, share information, and learn the tools necessary to further their clients’ interests in the legal cannabis industry. As Steve Shain of Hoban Law Group recently proclaimed – “It’s not whether you can afford to be here, it’s whether you can afford to not be here.”
WEBINAR: Streamlining Your Packaging Process and Innovating for the Future
Be sure to join us at NCIA’s 6th Annual Cannabis Business Summit & Expo in San Jose, California, on July 22-24, 2019 at the Wednesday afternoon panel session titled “Cannabis Packaging: Evaluating, Streamlining, & Innovating.” Presented by members of NCIA’s Packaging & Labeling Committee, this panel session will dive into key aspects of cannabis packaging that impact today’s businesses.
Video: Member Spotlight – Anresco Laboratories
In this month’s video spotlight, learn about how Anresco Laboratories went from an analytical lab serving the baking industry to getting involved in cannabis testing in 2015. At Anresco, they now conduct metals testing, microbiology, chromatography, HPLC, and are heavily involved with cannabis advocacy efforts!
Member Blog: Legal Cannabis in Illinois – Expanded Possibilities For All
Today, Governor Jim Pritzker of Illinois signed the historicHouse Bill 1438, The Cannabis Regulation and Tax Act, into law, ending prohibition for recreational cannabis usage across the state, and making it the 11th state where cannabis is legal. I, along with so many others in Illinois, and around the United States, am just as excited as the Governor.
“The state of Illinois just made history, legalizing adult-use cannabis with the most equity-centric approach in the nation. This will have a transformational impact on our state, creating opportunity in the communities that need it most and giving so many a second chance.” – Governor Pritzker, IL
This is a game-changer for the state of Illinois and its constituents. Public health, education, and tourism are just a few of the areas that are expected to emerge victoriously by being some of the beneficiaries of the $170 million dollars in expected tax revenue in early years.
But to me, what’s even more extraordinary is the fact that within IL’s legalization law is a visionary plan that will serve as inspiration to advance the nation’s social equity movement in this industry.
With the end of cannabis prohibition, we see the beginning of the end to the “war on drugs” as we know it, one that shrouded lower-income and traditionally Latinx and African-American communities in an unjust and unfair light.
The ACLU states that people in the United States use and sell marijuana at roughly the same rate regardless of their race, yet a black person is almost four times more likely than a white person to be arrested for marijuana possession nationwide. In addition, roughly 13,000 people were deported or separated from their communities and families in 2013 alone for drug-related offenses.
Even the word marijuana itself can be considered negative and racist, based on a longstanding theory that narcotics agents in the 1930s chose a word of Mexican-Spanish origin over the more scientific word cannabis when crafting drug laws, making it sound more sinister and associated with a certain community.
The equitable measures put into place in Illinois’ cannabis legalization law are unprecedented when it comes to making sure the end of cannabis prohibition will result in brighter days for the masses, not just a select few.
A FAIR SHOT FOR ALL
New processing and cultivation licenses will be issued in mid-2020, with growers from communities negatively impacted the most by cannabis prohibition getting priority within the application process.
A SECOND CHANCE
Up to 770,000 people in Illinoisqualify to have their marijuana convictions expunged from their criminal record, healing past wounds and providing access to new opportunities that weren’t available in the past because of past marijuana laws.
OPPORTUNITY FOR GROWTH
One quarter of cannabis taxes collected willfund a grant program that will invest in minority communities impacted most negatively by cannabis prohibition, driving cannabis business opportunities, by offering assistance and mentorship.
Even 2020 candidate Senator Kirsten Gillibrand shared her comprehensiveplan to legalize marijuana on a Federal level immediately if she becomes president. In that plan, social equity is also the primary focus on the path to legalization.
“The unfair enforcement of our current marijuana laws is a continuation of the institutional racism that has defined our criminal justice system for decades… We’re talking about entire lives, families, and communities being derailed: felony convictions make it much harder to get and keep jobs, access financial loans, exercise the right to vote, travel abroad, and receive social and housing benefits.” – Senator Kirsten Gillibrand
And just recently, Chicago-based Cresco Labs launched its Social Equity & Educational Department (SEED), an initiative aimed at promoting inclusion, equality and community engagement, through community outreach, educational support and incubators for veteran, minority and women-owned businesses.
“Our SEED initiative is designed to ensure that all members of our society have the skills, knowledge and opportunity to work in and own businesses in this industry….the SEED initiative consists of impactful programs and actionable solutions-based approaches that we believe will help make the cannabis industry a highly inclusive force for job creation.” – Charlie Bachtell, CEO, Cresco Lab
I also believe in a fair and equitable cannabis industry that unites as one to fix the damage done within certain communities as a direct result of cannabis prohibition. The National Cannabis Industry Association, along with theMinority Cannabis Business Association, are helping to shape laws and create a roadmap for local governments to address social equity issues right from the start of legalization.
“It is fitting that the Land of Lincoln is moving forward with such extensive measures to reverse the damage done to people of color and low-income communities by the government’s senseless war on cannabis consumers. We cannot continue to pursue legalization without considering restorative justice, and Illinois is definitely starting on the right foot in this regard,” said Aaron Smith, executive director of the National Cannabis Industry Association (NCIA).
And as further fuel to ignite the social equity movement,with the end of prohibition in sight, we’re also seeing exponential growth in all sectors of cannabis business. And with that growth comes a highly qualified talent boom in cannabis, with executives from all industries making the move to join and imagine an exciting new space together, from all perspectives.One exciting space that cannabis businesses can look to Corporate America for inspiration is within Corporate Social Responsibility programs.
Corporate Social Responsibility programs, or CSR, is a way for companies to conduct their business in a manner that is ethical, while taking their social, economic and environmental impact, along with the consideration of human rights, into account. It can be a win-win situation for all parties involved – through CSR programs, businesses can benefit society while boosting their own brands. Most have probably heard of Tom’s Shoes, and their popular “One for One” CSR program, which donates a pair of shoes for every pair bought. General Electrics donated over $38 million to community and education programs in 2016. Disney has a “VoluntEARs” program, which allows all of their employees to use a portion of their hours towards volunteer efforts.
With so many new brands coming into the market following legalization, it’s important that they find a way to stand apart and above the competition, while delivering a relevant brand experience. In order to do that successfully, brands need to stand for something, something that matters to people. And what we’re hearing from legislators and constituents alike is that social equity in the cannabis industry matters a lot. It’s a space for us, as responsible cannabis business owners paving a path forward, to come together and share not only the secrets of their success, but also to share the gains with the entire cannabis community, in order to lift everyone up – to right the wrongs of the failed war on drugs.
The possibilities are limitless, just like the new frontier of cannabis. I look forward to seeing how we all grow together.
Payal Shah is founder and CEO of the Cannabis Insight Collective. She’s spent the last two decades in strategic planning, working in leadership roles within global advertising agencies, on blue-chip clients including Proctor & Gamble, Microsoft, Walmart, Kelloggs, and Porsche.
Her experience is focused on understanding how cultural paradigm shifts and trends impact and influence people, their behaviors and brand choices. Her knowledge is grounded in creating and cultivating online panels, or Collectives, of all sizes and shapes, to address a variety of challenges for various clients. This background, along with a compassion and conviction for the cannabis industry, inspire her to be an advocate to drive the cannabis industry forward.
Cannabis Insight Collective is aliving, breathing online community of people across the United States, brought together by their connection to the cannabis industry. We exist to uncover cultural, category and consumer trends and insights within the category by tapping into our proprietary Collective, and working with people directly to answer questions that brands are struggling to answer.
At Cannabis Insight Collective, we are committed to supporting social equity in the cannabis market, and treating everyone fairly and respectively, through a number of Corporate Social Responsibility business initiatives:
The Cannabis Insight Collective panel will be representative of the entire United States population to ensure a representative voice is heard.
A percentage of CIC’s revenue will be donated to the advancement and mentorship of minority-owned cannabis businesses.
CIC will continue to advocate to establish new and existing laws that make sure the cannabis industry is fair and equitable.
We Made History: U.S. House votes to protect cannabis businesses!
Today, the House of Representatives voted in favor of an amendment to the Commerce, Justice, State (CJS) Appropriations Bill that prevents federal interference in state cannabis programs. The NCIA team is beyond excited that we’ve made this incredible progress to protect all state-legal cannabis businesses, including adult-use operators.
This was an historic vote, and is the farthest reaching action Congress has ever taken to reform outdated federal marijuana prohibition policies.
Protections for state medical cannabis programs have been included in the federal budget since 2014. The amendment passed today — introduced by Rep. Earl Blumenauer (D-OR), Rep. Tom McClintock (R-CA), and Del. Eleanor Holmes Norton (D-DC) — would, for the first time, extend those protections to states and territories where cannabis is legal for adults. An additional amendment offered by Rep. Blumenauer that was also attached to the bill would also prevent federal interference in tribal cannabis laws.
I’d be remiss if I didn’t take this opportunity to express gratitude for the nearly 2,000 NCIA members who made this victory possible by investing in our unparalleled lobbying team in Washington, D.C. Legislation like this doesn’t pass by itself — it’s a direct result of the forward-thinking members who support our work in D.C..
If your business is not yet a member of NCIA, please join today in order to ensure we have the resources we need to build upon this momentum and finally enact federal legislation that will allow your business and our industry reach its full potential. NCIA is the only organization with three full-time lobbyists in Washington, D.C. in addition to a well-connected professional advocacy firm. Michael, Michelle, and Maddy have been working the halls of Congress, fighting for state-legal cannabis businesses since long before it was vogue. We could not be more proud of our lobbying team, and we encourage you to follow their progress on these appropriations bills, as well as their important work on the SAFE Banking Act which is also expected to receive a vote in the weeks ahead.
Please also take a few minutes to call your Senators today and ask them to support legislation that would protect state cannabis laws. There is no time to waste because the Senate will be considering appropriations bills with similar marijuana provisions over the Summer. And keep your eye on more news from NCIA’s government relations team – the only full-time government relations team fighting for the legal cannabis industry in Washington.
Small Business Committee Congressional Hearing – The Cannabis Industry’s Unlocked Potential
by Michelle Rutter, NCIA’s Government Relations Manager
On Wednesday, June 19, the House Committee on Small Business will hold a hearing entitled “Unlocked Potential? Small Businesses in the Cannabis Industry.” This is the first time in history that this committee has ever considered this topic! As the nation’s oldest and largest trade association, NCIA is proud to represent thousands of small businesses at this hearing.
The hearing will “focus on the opportunities the legitimate cannabis industry presents for small businesses in states with legal cannabis, as well as entrepreneurs from traditionally underserved communities. The hearing will also enable members of Congress to explore the challenges currently faced by those businesses, and also those of “ancillary” or “indirect” cannabis businesses who may not be directly involved in the production or distribution of cannabis products.”
NCIA has been proud to work very closely with the House committee on this hearing. As a result, Dana Chaves, who is chairwoman of NCIA’s Banking Access Committee and the Senior Vice President and Director of Specialty Banking at First Federal Bank of Florida will be testifying at the hearing!
Other witnesses will include Shanita Penny, M.B.A., President of the Minority Cannabis Business Association, Eric Goepel, Founder & CEO of the Veterans Cannabis Coalition, and Paul Larkin, who is the John, Barbara, and Victoria Rumpel Senior Legal Research Fellow in the Meese Center for Legal and Judicial Studies at The Heritage Foundation.
The Committee memo also states “the marijuana legalization movement brings new opportunities for entrepreneurship and business start-up in the cannabis industry. Because this is such a nascent sector, legalization also allows policymakers to increase equity and diversity in the cannabis industry, which can take the form of addressing financial barriers to market entry and ensuring the industry reflects the local community.” It also recognizes that “because this is such a nascent sector, legalization also allows policymakers to increase equity and diversity in the cannabis industry, which can take the form of addressing financial barriers to market entry and ensuring the industry reflects the local community.”
According to a recent Leafly report, “Annual [cannabis] sales nationwide are nearing the $11 billion mark. And the number of Americans directly employed in this booming industry has soared to more than 211,000. When indirect and ancillary jobs—think of all the lawyers, accountants, security consultants, media companies, and marketing firms that service the cannabis industry—are added, along with induced jobs (local community jobs supported by the spending of cannabis industry paychecks), the total number of full-time American jobs that depend on legal cannabis rises to a whopping 296,000.”
NCIA applauds the House Committee on Small Business and Chairwoman Velazquez (D-NY) for discussing this important topic. NCIA is proud to represent all of the cannabis industry’s small businesses!
Member Blog: My Journey Through The Intersection of the LGBTQ Community and Cannabis Movement
By Erich Pearson, SPARC
NCIA Board and Founding Member
Reflecting on the decades-long fight to end prohibition of marijuana, one person comes to mind this month as we look at the similar and interconnected decades-long Gay Pride movement and what it means for the LGBTQ community today. One activist largely credited for legalizing medical cannabis in California is the original “cannabis influencer” Dennis Peron. We have much to be grateful for as we remember his legacy advocating for AIDS patients in California to have access to medical cannabis.
As for my role in both of these these important causes, I arrived in San Francisco in 2000 after graduating college in Indiana. I was happy to find San Francisco to be not only accepting of me as a gay man, but also accepting of me as someone interested in the cannabis movement. In the 1990s, there were a handful of medical cannabis dispensaries operating, un-permitted and un-regulated. It wasn’t until 2006 that Americans For Safe Access (ASA), Drug Policy Alliance (DPA), and Marijuana Policy Project (MPP) along with a handful of local advocates led the charge to regulate dispensaries.
A few of the most vocal advocates were veterans from the political days of Dennis Peron. Dennis was not involved in the regulatory process of 2006. It was widely known that Dennis didn’t like regulations (he repeated this during the Prop 64 campaign years later). Dennis thought cannabis should be grown and sold freely, outside of an alcohol-type regulatory environment. He was right, but unrealistic – hence his waning interest in the politics of it.
Dennis did have a few friends who wanted to see cannabis regulated in San Francisco, and one was Wayne Justmann, a gay man that used to work the door at Dennis’ cannabis club at 1444 Market Street. Wayne is a friend of mine today, and we worked closely together to advocate for a dispensary program that respected the existing operators, despite their “inappropriate” locations in many cases. We ultimately won this battle, as San Francisco has a healthy respect for social pioneers.
San Francisco was also the first city to regulate on-site consumption. This was allowed in order to provide AIDS patients a safe place to medicate, outside of government housing. This has proven to be a successful program, with little public resistance even today as we permit more of these lounges, primarily designed for adult-use consumption.
I started a free compassion program in San Francisco in the early 2000’s at Maitri AIDS Hospice. We still deliver twice a month to patients there. This has been an incredibly successful program and a very rewarding experience for myself and the staff who carry it out.
Today, I don’t see a lot of synergies anymore between gay progress and cannabis progress despite its intertwined history, but we at SPARC honor that history with a t-shirt claiming victory: “Legalized Gay Pot.” Of course, the fight for fair treatment and equality for both cannabis and LGBTQ right is far from over, but in San Francisco, I’d say we’ve come a long way on both fronts. And as cannabis legalization sweep through other states across the country, we can see studies that show gay, lesbian and bisexual people being the highest level of consumers among other select demographics, showing that our communities continue to overlap.
In looking back on all of this history and progress, I am thankful for all of the advocates who put themselves forward to fight for cannabis AND LGBTQ rights – we wouldn’t be here without their hard work, dedication, and selflessness. I now look forward to a future where everyone, in every state, can access the cannabis plant and be treated with respect and fairness.
Photo By CannabisCamera.com
Erich Pearson is a recognized leader in the cannabis industry – a long-time advocate, legislative consultant, dispensary operator, cultivation expert, and NCIA board member.
A proponent of medical cannabis regulation, cultivation, and best practices since 2000, Erich served on the San Francisco District Attorney’s Medical Marijuana Advisory Group and consults on state and local medical cannabis policy and legislation.
Erich was instrumental in the passage of both San Francisco’s Medical Cannabis Dispensary Act and the law enforcement “lowest priority” resolution of the San Francisco Board of Supervisors. As a result of Erich’s work he was appointed in 2007 by Supervisor David Campos to sit on San Francisco’s Medical Cannabis Working Group.
In 2010 Erich launched SPARC, a nonprofit medical cannabis dispensary providing safe, consistent and affordable medical cannabis to patients in San Francisco. SPARC provides high quality, lab-tested cannabis to qualified patients, and collaborates with local hospices, residential care facilities, and dispensaries to successfully supply medical marijuana at no cost to seriously ill patients.
How does SPARC do it? By growing cannabis more efficiently. Erich’s expertise is constructing and managing large indoor cultivation facilities. With a robust Research & Development team, Erich is meticulously focused on developing the optimal environmental recipe for high-yield cultivations using unique systems of lighting, ventilation and design.
SPARC is a Founding & Supporting Member of NCIA. Erich holds a BS in Construction and Project Management from Purdue University.
Committee Blog: The Hiring Process Checklist
by NCIA’s Human Resource Committee: Kara Bradford of Viridian Staffing, Kerry Arnold of Canndescent, Heidi Quan of Murchison & Cumming LLP, Nichole McIntyre of Urban-Gro, Michelle Whitmore of H2 Talent, and Mark Hackett of Emerge Law Group.
Maybe you’re just getting your business started. Perhaps you’ve already been rolling full steam ahead. Either way, people are crucial to your business. The NCIA Human Resource Committee formed this past year. The committee, headed by Kara Bradford of Viridian Staffing, includes experienced HR Practitioners, Recruiters and Employment Attorneys, who have all brought their collective “best practices” together in an effort to assist NCIA members to navigate the often complex world of employment.
The HR Committee is starting off by releasing a series of checklists to provide some essential guidelines for your firm during the hiring, on-boarding and termination phases of employment. Without further ado…
Welcome to the first installment of the NCIA Human Resources Committee Employer Checklist Series! Today, we begin where every employer begins – the hiring process – and present the Hiring Process Checklist. Although laws may vary from state to state and each employer’s approach to hiring may differ, the Hiring Process Checklist provides a framework to assure your hiring process includes basic best practices, so you can attract and hire the best candidates.
Why is it important to have a well thought out hiring process? In this era of full employment, you just need to hire warm bodies before your competitors, right? Wrong! There are at least three critical reasons to make sure you put a good hiring process in place.
First, your hiring process must comply with the law. Are your job postings nondiscriminatory? Does your job application request potentially illegal information, such as criminal background, salary history or prior workers’ compensation claims? Are interviewers only asking applicants appropriate questions? Are you storing applications and other information about applicants for the required length of time? A good hiring process greatly reduces your risk of legal problems.
Second, hiring the wrong applicant is expensive. According to a study by SHRM (The Society for Human Resource Management), the average cost of hiring an employee is just over $4,100. This does not include the cost of training a new employee, a new employee’s lower productivity and greater likelihood of making mistakes or the stress on your other employees who must pick up the slack while the new employee ramps up. A good hiring process can improve your bottom line by significantly increasing the likelihood that you hire the right employee the first time.
The third and perhaps most important reason to lock down your hiring process: you are introducing potential employees to your company for the very first time. From the time they read your job posting until you inform them of your hiring decision, the applicant is assessing and judging your company. In this competitive job market, you need to quickly give that applicant a reason to want to work for you, rather than all the other hungry employers vying for their services.
An unstructured, haphazard hiring process sends all the wrong messages. Right or wrong, it tells an applicant that the company is not serious about hiring the best employees. It tells the applicant that you don’t value their time. Would you want to work at that company?
You only get to make one first impression, so make it a good one! Be upfront and clear with the applicant about the hiring process and your timeline and stick to them. Keep the interview process on schedule and make sure interviewers are well-prepared. If you tell an applicant you will get back to them by a certain date, get back to them by that date. If the timeline changes, let the applicant know. Treat every applicant with respect at every stage of the hiring process.
Once you establish your hiring process, the hard part begins – putting the plan into action. Even the best hiring process is useless if your staff doesn’t understand it. Clearly explain the hiring process to staff who will implement or supervise it. Provide them with the training and tools they need. Finally, periodically review the success of the hiring process and make improvements, so you continue to attract high-quality job applicants.
We hope you find the Hiring Process Checklist a useful tool as you develop your company’s hiring process, but it is not the only tool available. Take advantage of the many resources available to you in books and magazines, on the internet, and through the services of an HR professional or attorney.
Happy hiring!
The HR Committee needs and values your feedback. We exist to serve NCIA members, so please tell us how we can serve your needs by emailing us at HRC@TheCannabisIndustry.org. Thank you.
VIDEO: Looking Back On NCIA’s 9th Annual Cannabis Industry Lobby Days
On May 21-23, 2019, NCIA held it’s 9th Annual Cannabis Industry Lobby Days in Washington, D.C. with more than 250 NCIA members who represent the cannabis industry all across the country. NCIA’s Executive Director Aaron Smith highlights some of issues we brought to the halls of Congress to educate House Members and Senators, as well as our brand-new VIP Day for PAC Leadership Circle Members.
“One way that I think really demonstrates the leadership that NCIA has here on Capitol Hill and the way that we’ve moved the dial in Congress is that between all of the events at Lobby Days, over 20 members of Congress showed up to speak, attend, and mingle with NCIA Members.” – Aaron Smith, NCIA Executive Director and Co-Founder
Thanks to everyone who joined us in our nation’s capital to bring the advocacy, education, and community to our federal legislators and lawmakers.
Mark your calendars for next year’s 10th Annual Lobby Days happening May 19-21, 2020!
(Due to the COVID-19 pandemic, this has been moved to September 2022.)
Be sure to check out the full photo album from this year’s Lobby Days!
Partner Blog: The Top 10 Reasons to Participate in a Compensation Survey (And How to Use It)
By Dan Walter, FutureSense LLC
Compensation surveys don’t sound like much fun. In fact, they seem like a pain in the neck for everyone involved. Why then should you participate? Heck, why should the NCIA and FutureSense even make an effort to spearhead such an effort? Our driving force is a goal to see this industry reach its potential as quickly as possible. The National Cannabis Industry Association(NCIA) and FutureSense have joined forces to create CannaCompensation, our industry’s first comprehensive compensation survey.
One of the most common questions we hear is: “How is compensation survey data used?”
Companies in many other industries (if not most other industries) generally use the resulting data to determine how much the market pays each position and level in an industry. Data is reported in quartiles or deciles and allows companies to determine their own “compensation philosophy” for paying staff members. Companies use this information to set annual pay ranges, determine incentive compensation levels and track pay trends. Nearly every industry, from golf course management to construction, technology, and healthcare use surveys to create defensible compensation data.
A formal survey, such as CannaCompensation, must adhere to specific guidelines to ensure anonymity, carefully balance responses so data from big companies doesn’t overwhelm the data from smaller companies, and also avoid antitrust issues (these are DOJ regulations).
The following Top 10 List provides a bit more information about why you should sign up today for the 2019 CannaCompensation survey.
Pay is the largest expense at most companies. This is especially true for high-growth businesses. HR uses between $0.65 and $0.80 of each dollar your company’s revenue. This leaves an only tiny bit for real estate, marketing, security, product improvement and everything else your company needs. You better make sure you are getting your money’s worth. Paying even slightly more effectively can provide material benefits to budgets throughout your organization.
Our industry pays people well, and politicians need to understand that. Finances drive policymakers. Data that shows how well the cannabis industry pays employees relative to other comparative business will go much farther than scientific proof of the efficacy of our product, or the public’s desire to have easier access. The NCIA will use the results of this survey to further the cause of every company in and supporting, the cannabis industry.
Every company should comply with legal expectations and regulations. Compensation survey data is the de facto standard method for setting pay in nearly every industry. Most importantly, it is a sound defense against industry collusion and price-fixing. Antitrust laws are no joke. A well-run compensation survey provides competitive market data in an entirely confidential structure. Data resulting from the CannaCompensation survey will comply with the Safe Harbor guidelines established by the Federal Trade Commission (FTC) and the US Department of Justice.
Replacing a good employee is ridiculously expensive. The total cost of replacing an employee can be 150-200% of their annual salary! Every employee you keep saves you money, builds your knowledge base, and creates a more employee-friendly environment. Pay is seldom the only reason people leave, but your competitors will be perfectly happy to try and “buy” your best people.
More confidence in your pay data means more confidence in your hiring process. Other high-growth industries, like the technology sector, depend on reliable data to shorten the hiring lifecycle. Cannabis companies are growing incredibly fast. There’s no time to recover from mistakes, and every extra day you spend negotiating with someone is one more day they can’t help you grow.
Current pay data is either very limited, likely to be biased or too generic to apply to many cannabis positions. There are a few data sources, for a limited number of positions. These include data that mainly comes directly from employees. This data has been measured in other industries to be 125-135% higher than company-reported data. Data aggregators like Payscale, Salary.com, and Payfactors can be very useful as a component of your pay data but tend to lack the specificity needed in our industry. We can all probably agree that the head of a blueberry farm is not on par with the head of a legal grow operation.
Unique industries use unique data. Most high-quality compensation surveys are focused on narrow industry definitions. This allows similar companies to know that the pay data they are using is relevant and likely to be used by their peers. Healthcare companies don’t care what financial firms pay their accountants. Construction firms don’t care what software companies pay their project managers. The world of cannabis business is incredibly broad and very deep. Our pay data must be equal to that challenge.
Your investors will increasingly demand that you pay people correctly. Investments in cannabis companies continue to increase. When a Private Equity or Venture Capital firm invests many millions of dollars in a company, they need to know that you’ve handled the nuts and bolts like FLSA rules, gender equity, and general competitive pay. They expect to see defensible pay ranges for every position. They want to know that you aren’t wasting money on employees and that you aren’t at risk of losing people over compensation issues.
When hiring people away from other industries, it is critical that you can show your value proposition. Biologists, distribution chain professionals, security experts, finance pros, and countless other potential hires can choose to work in any number of other industries. Some may be passionate about our industries, but many may be curious but trepidatious. Jumping into an industry that is not fully proven can be difficult for someone with experience in and job offers from a more traditional industry. Great pay data will provide you with ammunition to compete. This has been incredibly effective for other emerging industries in the past.
Most importantly, participating helps you win the war for talent. Great people are hard to find in any business. They are even harder to hire. This is a major issue for any industry that is inventing itself on the fly. Your competitive advantage may come from your business model or product, but you cannot succeed without the right people to execute your vision. This survey will not only provide pay data, but it will also provide basic job descriptions and leveling information that will allow you to understand both entry-level and senior positions. If you don’t use this information to win, your competitors certainly will.
Regularly using a reputable and comprehensive compensation survey is a best practice of every company that is successful over the long-term. The cost of participation in 2019 is simply a bit of your time. The benefits pay for themselves and carry into every aspect of your business. It is a simple way to get the most out of your largest monetary investment.
Sign-up by June 14 to participate. Data collection takes only 30-60 mins on average.
FDA Rulemaking on Hemp/CBD – Hurry Up And Wait?
by Andrew Kline, NCIA’s Director of Public Policy
In April of 2019, the National Cannabis Industry Association (NCIA) formed a coalition of more than 100 CBD/Hemp entrepreneurs, scientists, medical doctors, and FDA lawyers to inform and influence FDA rulemaking on cannabis and cannabis-derived compounds. Over the past two months, coalition members worked tirelessly to draft public comments. Our goal was to answer all of the questions posed by FDA (including scientific questions), to be helpful to FDA by informing their rule-making process, and to influence the direction of their rule-making.
NCIA Files Public Comment And Testimony
On May 30, 2019, we filed 60 pages of formal comments which can be found here. I’m really grateful for the coalition’s collaborative work and quite proud of our final product. I’m also extremely grateful to the authors, including Alena Rodriguez of RM3 Labs, Dr. Paul Murchowski of Dr. Pauls, Khurshid Khoja of Greenbridge Corporate Counsel, Vanessa Marquez and Chris Elawar of CBD Care Garden, Jonathan Havens from Saul Ewing, Andrew Livingston from VS Strategies, and many others who devoted time to produce a great submission.
On May 31, I testified before the FDA and listened intently as dozens of others spoke. My takeaways were that most of the industry echoed our sentiment – that CBD is generally safe, but that safety issues do arise with adulterated products and with irresponsible manufacturing and marketing practices. I spoke about the need for consensus-driven industry standards, to include marketing and labeling practices, and for mandated lab testing. These practices will go a long way toward making certain that the industry is safe for consumers.
Concerns And Misinformation
I am genuinely concerned that there is currently great confusion in the market. People seem to think that CBD is federally legal as a result of passage of the Farm Bill of 2019. But, that is only partially true. While CBD was de-scheduled, the FDA still retains the authority to regulate the industry as a result of their prior approval of a prescription drug for epilepsy, Epidiolex. In the absence of clear regulatory guidance, people are making health claims that violate federal law. And banks and payment processors are shutting off accounts for CBD businesses because they are having difficulty assessing whether a particular business is operating lawfully.
We hope that FDA will act with deliberate speed in drafting regulations for the industry. If FDA takes its time in crafting regulations, there is danger that many CBD companies will shudder because of a lack of banking and payment processing. And we will inevitably lose market share to Canada and other international players. As always, NCIA stands ready to help.
Learning objectives for the panel include, (1) what the FDA was interested in learning about and why, (2) understanding how our industry coalition responded to the FDA’s scientific questions, (3) predictions for how the FDA will regulate CBD/Hemp and what it might mean for cannabis regulation in the future. Panelists will include members of the coalition who drafted our public comments to FDA.
In the coming weeks, NCIA will be releasing some new policy papers via NCIA’s Policy Council – the think tank for the state-legal cannabis industry. As always, if you’re interested in joining the Policy Council or have any thoughts about how we can propel this industry, please reach out me at andrew@thecannabisindustry.org.
Committee Blog: Social Justice in the Cannabis Industry – Your Answers Will Take Minutes, But The Impact Could Be Long-Lasting
By Rudy Schreier, MMLG
NCIA’s Marketing & Advertising Committee’s Social Justice Subcommittee
The cannabis industry is evolving at light speed. From nationwide legalization, to massive corporations developing green thumbs, cannabis culture is shifting daily. Exciting, yes, but this rapid cultural shift poses a threat to social justice by disregarding the harms caused by the war on drugs. Now, more than ever, the cannabis industry needs to come together and determine a course of action to ensure that social justice isn’t brushed aside.
Where should we start? And how can all of us in the industry handle something as daunting as social justice with the appropriate sensitivity? Let’s review some of the basics.
Cannabis has been aggressively policed since the mid-to-late twentieth century. Minorities from marginalized communities were disproportionately punished for cannabis crimes, contributing to the rise of mass incarceration. Those same communities punished for past involvement with cannabis face an extremely high barrier of entry in the newly legal industry. Many cities and states are adopting social equity programs to lower the barrier. For example, Los Angeles recently approved $10.5 million in funding over the next three years for its social equity program. Initiatives like Los Angeles’ are a step in the right direction; however, there’s still a lot more to be done.
While social justice in the cannabis industry is a new focus for some, others have been fighting for decades. Omar Figueroa, a cannabis lawyer and advocate located in Northern California, helped to convince the Sonoma County District Attorney to clear cannabis convictions and has defended numerous activists pro bono over the years. When asked how the cannabis industry should address social justice, Omar replied, “[We need to] provide grants and loans to address disparities in access to capital, continue to advocate against cannabis prohibition, and create a leadership institute to empower people directly affected by the war on cannabis.” Omar, like many other committed ‘canna-pros’, are constantly fighting for fair and equitable practices in our industry. With so much work to be done, it can be challenging figuring out where to start. This is where you come in.
As we build the new cannabis culture, we have the unique opportunity to do things differently, ethically, and better. NCIA’s Marketing & Advertising Committee’s Social Justice Subcommittee is developing an approach to social justice for the cannabis industry, and we need your help. Since we can’t tackle everything, we’re asking you to make your voice heard and help us navigate the difficult terrain ahead. Please take this 4-question survey about what social justice should mean in the cannabis industry. Your answers will take minutes, but the impact could be long-lasting. Feeling ambitious? Share this ‘gram-sized graphic’ in your own social channels to spread the ‘poll power’ far and wide!
Interested in learning more? NCIA’s Social Justice Subcommittee will be hosting a panel titled “Cannabis Reform Stops Short: Why We Can’t Let Social Justice Get Lost” at NCIA’s Cannabis Business Summit & Expo in San Jose on Tuesday, July 23, from 1:30 PM – 2:30 PM. Register for the conference today!
Marketing and Advertising Committee: (MAC) of National Cannabis Industry Association (NCIA) — develops best practices in cannabis industry marketing /education, opening dialogues with media outlets that ban cannabis-related advertising.
Social Justice Subcommittee: An arm of the MAC committee, the aim is to ensure that social justice issues are positively addressed via cannabis reform. Team Members: MMLG, Cannawise, Canna Advisors, Annabis.
The Author: From operations and marketing, to office and project management, Rudy Schreier wears many hats for the Los Angeles-based licensing and compliance consultancy MMLG. Schreier co-founded the #StartsAtThePolls campaign, which utilized social media platforms to inform voters on how to register to vote, how to get to the polls, and pro-cannabis candidates running for the 2018 elections. The Panel: Be sure to catch the Social Justice Subcommittee’s panel featuring Lisa Jordan (Canna Advisors), Omar Figueroa (Law Offices of Omar Figueroa), Shanita Penny (Minority Cannabis Business Association), and Felicia Carbajal (The Social Impact Center) at NCIA’s Cannabis Business Summit & Expo titled, “Cannabis Reform Stops Short: Why We Can’t Let Social Justice Get Lost.”
VIDEO: Member Spotlight – Magnolia Wellness
In this month’s video spotlight, get to know Debby Goldsberry, Executive Director of Magnolia Wellness, and her team based in Oakland, California. Debby is a community leader who is active in the campaign to reform the California state cannabis laws and to protect patients’ rights. Learn more about how the team at Magnolia Wellness creates a healing environment for their patients, including the East Bay’s only vapor lounge and dab bar, and how they give back to the community through various social programs.
NCIA’s 9th Annual Lobby Days – Strength in Numbers, Power in Progress
Just two short weeks ago, NCIA hosted our 9th Annual Cannabis Industry Lobby Days. This impactful event brought over 250 NCIA members to our nation’s capital to advocate and lobby on important issues facing our industry like access to financial services, amending IRC Section 280E, and addressing social equity.
Over the course of 48 hours, attendees met with nearly 300 congressional offices to share their stories and experiences, and dropped off informational materials to 200 offices that we did not schedule meetings with. In addition to these meetings, we had two briefings, held a PAC fundraiser, and hosted our first-ever VIP Day for members of our Leadership Circle. Let’s take a look at some of the highlights from this important event:
To kick off our first-ever VIP Day, we held a briefing at the House of Representatives entitled “SAFE Banking: Where We Are, and Where We’re Going,” where Congressman Ed Perlmutter (D-CO), the lead sponsor of HR 1595, the Secure and Fair Enforcement (SAFE) Banking Act, kicked off the day. On the panel was Tanner Daniel of the American Bankers Association, Becky Dansky of SARBA, and Gail Rand of ForwardGro, while attendees included NCIA members, congressional staff, and members of the press.
Following the briefing on banking, VIP Day attendees were shuttled to a luncheon featuring Reps. Joe Neguse (D-CO), Katie Porter (D-CA), Gil Cisneros (D-CA), and Steven Horsford (D-NV). All of these members of Congress are freshman who support cannabis reform, and talked about the importance of advocacy and the use of political action committees like the NCIA-PAC that they rely on.
After lunch, VIP Day attendees were shuttled back to Capitol Hill, where teams met personally with members of Congress, committees of jurisdiction, and congressional leadership.
Our first ever VIP Day was a huge success, and we thank the members of NCIA’s PAC Leadership Circle for their dedication to advocacy.
Lobby Days then officially started with a Welcome Reception attended by other advocates in Washington, D.C., NCIA members, and even congressional staff!
The following day, the work really began at our breakfast training. There, attendees met with the groups that they would be in for the day, were taught talking points on various bills and issues, and learned about how to use the app that housed all of their meeting information.
Washington, D.C. is full of great photo ops, so after our breakfast training, all of our attendees shuttled over to the Capitol… and snapped a few selfies, of course!
Meetings on Capitol Hill went from 12pm to 4pm. Each of NCIA’s 54 lobbying teams had at least four meetings over that course of time. Some groups were even lucky enough to sit down with members of Congress to talk about the issues that affect them and their businesses the most.
The day concluded with a fundraiser for the NCIA-PAC. This year’s event was wildly successful, as we had 15 members of the House of Representatives (Reps. Porter (D-CA), Charlie Crist (D-FL), Josh Harder (D-CA), Earl Blumenauer (D-OR), Ruben Gallego (D-AZ), Salud Carbajal (D-CA), Jared Huffman (D-CA), Jason Crow (D-CO), Brendan Boyle (D-PA), Diana DeGette (D-CO), Denny Heck (D-WA), Barbara Lee (D-CA), Dina Titus (D-NV), Susie Lee (D-NV), Matt Gaetz (R-FL)) attend and speak, as well as Sen. Jeff Merkley (D-OR).
The final day of Lobby Days began with a standing-room-only briefing that focused on NCIA’s new white paper titled “Increasing Equity in the Cannabis Industry” that our Policy Council worked on with the Minority Cannabis Business Association (MCBA). Opening remarks were given by MCBA’s President, Shanita Penny along with the Principal of Greenbridge Corporate Counsel, Board Vice-Chair of the National Cannabis Industry Association, and Co-Chair of the Minority Cannabis Business Association Policy Committee, Khurshid Khoja. We were also joined by two members of the Congressional Hispanic Caucus, Rep. Lou Correa (D-CA), and Rep. Ruben Gallego (D-AZ).
Lobby Days wrapped up with small groups dropping off folders with informational materials to congressional offices that we were unable to schedule meetings with. While some may think these drop-ins are ineffective, they actually prove to be incredibly helpful long after our attendees go home.
The dates for NCIA’s 10th Annual Cannabis Industry Lobby Days have already been chosen, so mark your calendars for our biggest year yet, happening May 19-21, 2020!
Be sure to check out the full photo album from this year’s Lobby Days!
Congratulations to Ean Seeb For His New Public Policy Role!
Photo By CannabisCamera.com
NCIA leadership and its Board of Directors are thrilled to be celebrating the transition of one of our very own cannabis industry leaders into a prominent public policy role for the state of Colorado. Please join us in congratulating Ean Seeb for his new role as Governor Jared Polis’ Special Advisor on Cannabis.
Throughout his career, Ean has been a tireless advocate for replacing criminal marijuana markets with a socially responsible and well-regulated cannabis industry and now he’s bringing that experience into the public sector.
Ean has served the cannabis community and industry for more than a decade, and now moves on from his role as co-owner and founder of Denver Relief and Denver Relief Consulting, as well as other endeavors including Manna Molecular which he represented on the NCIA board of directors. Ean was an active member of the NCIA board of directors for nearly seven years and chairman of the board for two of those years.
“I can’t think of a better person to advise Governor Polis on cannabis policy. During his tenure in the private sector, Ean has always demonstrated a commitment to justice, personal liberty, and corporate social responsibility,” said NCIA executive director Aaron Smith. “The people of Colorado are very lucky to now have him now putting his talents and passion to work for them.”
“Ean is a leader in the cannabis industry and we are thrilled to have him on our team. We welcome his incredible expertise and know he will help us continue Colorado’s leadership in this growing industry,” said Chief of Staff Lisa Kauffman.
“I’m incredibly grateful to have had the opportunity to work with NCIA over the years to help promote the interests and best practices of the cannabis industry as a board member and citizen lobbyist. I entered the cannabis industry because I wanted to help people suffering under marijuana prohibition, and NCIA made it possible to that on a larger scale,” said newly-hired Ean Seeb.
It was through NCIA that I met then-Congressman Polis – at the very first NCIA event in Colorado in 2011, which eventually led to my new role in the Governor’s office. Now I have the chance to help even more people throughout the great state of Colorado and beyond in the coming years.”
Congratulations and best wishes, Ean!
Partner Blog: CannaCompensation – Are Recruiter Rates Accurate?
Recruiters are on the front lines in the competition for talent. When a role is critical, tough to fill, or requires specific expertise, recruiters can play an invaluable role. They have the contacts, the skills, and the persistence to get the people you need right now.
Recruiters are a special kind of farmer. They aren’t picking the low hanging fruit. They are working on selecting the very best fruit. But, quality can come at a premium price.
The cannabis industry now has several strong talent acquisition firms. They know the industry and the lingo. They have contacts, and their connections have contacts. Currently, they are also one of the few sources of compensation rates for many positions in the industry. The pay data they provide is accurate, but it may not be “right.” How can this be?
Remember, the best recruiters target the best talent. They also target people with current jobs. The best talent usually gets paid more than typical, and still perfectly acceptable, talent. Employed people cost more to hire than unemployed people. This can result in recruiter provided pay ranges that are above industry norms.
The top people in any position commonly make 10-20% more than mid-level people. Motivating someone to change companies can take twice the increase as promoting an internal employee. This means recruiter-provided pay rates are often 20-35% higher than a formal compensation survey would indicate. This is fine for critical people, but it’s a ridiculously expensive way to pay an entire staff. This is why formal compensation surveys, like CannaCompensation, are essential to your success.
Compensation is likely your biggest expense – it may eat up as much as 75% of your revenue. Saving even 5% on paying your staff can mean the difference between growth and failure. This type of savings can fund a marketing campaign, purchase new equipment, develop new products, or become the down-payment on new real estate. When you provide your pay data to the CannaCompensation Study, you are building a foundation for future success. Participating is easy and confidential.
Your recruiters will always remain a vital source of information for pricing your highest priority positions. CannaCompensation will serve as the foundation for your pay decisions. When you combine them, you will be armed to win the battle for both talent and future success.
Sign-up by June 14 to participate. Data collection takes only 30-60 mins on average.
Top Ten Female Industry Leaders to Meet at #CannaBizSummit
The cannabis community has seen an influx of female entrepreneurs and leaders laying the groundwork for the future. Whether they’re advocating for reasonable legislation, engineering extraction techniques, or hacking the crazy world of cannabis marketing, the cannabis industry continues to boast a higher percentage of female leadership than the national average – with even more room to grow. As a significant part of America’s fastest growing industry, the women of cannabis are determined not to be left behind.
Throughout her extensive career, Lisa has led large-scale corporate campaigns and has made a visible impact on premier organizations in the nonprofit sector. Her dynamic approach allows her to grow and shape organizations from the ground up. Lisa’s work has won numerous awards, including local ADDYs, national awards for predictive analytics, and a Bronze Lion at the Cannes Lions International Festival of Creativity.
Maureen has 25+ years of professional training experience; she is the Founder and Chief Facilitator with Cannabis Trainers™. She has led thousands of workshops and inspires cannabis industry professionals to create and sell products compliantly and professionally. She has combined her skills and expertise with Food Safety and Responsible Alcohol Service into a comprehensive, engaging program to ensure the responsible, knowledgeable and safe sale of cannabis: Sell-SMaRT™.
Kim brings her many years of social responsibility expertise, including participation in numerous and international CSR bodies and community boards, to her role as Executive Director. Prior to joining GCP, Kim spent 11 years at Atlantic Lottery Corporation (ALC) as Manager of Corporate Social Responsibility. During that time, Kim led, developed, prepared and executed ALC’s CSR strategy, which included a focus on diversity and inclusion, health and wellness, volunteerism and responsible gambling. A seasoned media and public relations practitioner, Kim is a proactive and dynamic leader who gets things done.
Laura Wilkinson is an entrepreneur with over 35 years of experience in emerging industries building several companies from zero. She has successfully launched broadcast companies, precious metals recycling entities, an information security company and consumer product manufacturing for retail – all industries with substantial compliance requirements. Between those, she worked in Broadcast Radio and Television in San Diego and Fortune 500 Marketing Communications leadership positions in the energy sector.
Diane has over twenty years of leadership experience in digital marketing and advertising. As CEO of iCre8t Digital Agency, she has crafted award winning national campaigns for brands such as PetSmart Charities, Mizuno and Ferrari. Diane has led digital advertising campaigns for clients such as Kimberly-Clark, Coke, The Home Depot and BMW. Additionally, Diane has executed national social media campaigns to drive in store sales at Walmart for Central Garden & Pet. That campaign increased sales by more than 128% and solidified their vendor shelf-space with the large retailer while winning the 2011 Best Online Brand Experience through social media.
Kara has been an HR professional, specializing in Talent Acquisition, Talent Management, Workforce Planning, Employer Branding, Compliance, Federal/State Employment Laws, and Organizational Design for over 15 years. Her career has spanned multiple Fortune 100 companies and start-ups in a wide variety of industries. More importantly, she has more experience recruiting in the cannabis industry than any other recruiter globally. In addition, she has built companies from the ground up and loves putting together perfect teams. Kara has an MBA in Human Resources & Organizational Behavior and is PRC, CIR, & CSSR Certified.
Ms. Quan has experience representing individuals and businesses in a wide variety of matters, including areas of business litigation, general liability, professional liability, employment law, landlord/tenant, health law and product liability. Her clients have included owners of both small and large businesses, hotels, restaurants and bars, residential care facilities and nursing homes, security companies, national and international companies, and owners and property managers of shopping centers, commercial buildings and other properties. Ms. Quan also assists clients within the cannabis industry, as well as those affected by cannabis legalization.
For the past several years, Lauren has been active in the drug policy reform movement as well as other progressive and humanitarian efforts. She is the former Chair of the Board of Directors of Students for Sensible Drug Policy (SSDP), an international non-profit organization working to end the counterproductive “War on Drugs.” Currently, she sits on the Board of Directors of the Sonoma County Growers Alliance, an organization that advocates on behalf of local cannabis businesses.
Laura is a professional mechanical engineer specializing in the design of HVAC, plumbing, and process systems for the cannabis industry. Using her experience in traditional engineering methods through Root Engineers parent company, ColeBreit Engineering, she applies her team’s depth of knowledge to create efficient and economically sound solutions for cultivation and processing facilities. Taking a custom approach to each project, Laura has experience working in the traditional design-bid-build method, as well as in the design-build arena.
Before heading to law school, Karen was an executive in the advertising business, as well as having been a personal manager to a major recording artist. She also co-wrote of a Top-10 Hit song in Europe that also made Billboard Magazine’s Hot 100.
Today, Karen brings her unique background and skills to the practice of intellectual property and business law. Her firm is an active member of the National Cannabis Industry Association where Karen serves as Chair of the Packaging and Labeling Committee (PLC). Throughout the years, Karen has spoken at a number of NCIA meetings and other Cannabis industry conferences.
VIDEO: Innovation In Cannabis Science And Technology
The cannabis industry is full of scientific and technological advancements. Join the movement and register for one of our upcoming events so you can see it for yourself.
Hear more from these NCIA Members about the amazing industry we are innovating together:
Plus, check out our event calendar and get your team registered!
Not yet a member of NCIA?
Stay up to date about the rapidly evolving landscape by networking with nearly 2,000 member companies who are part of a movement to build a responsible industry.
Apply For A Scholarship to #CannaBizSummit Before May 15!
In an effort to create a more diverse and inclusive industry, we are thrilled to announce the partnership between NCIA and the Minority Cannabis Business Association has opened applications for its scholarship fund for qualified cannabis executives. Throughout the years, MCBA has consistently gone above and beyond to create equal access and economic empowerment for the communities most affected by the war on drugs.
NCIA is excited to have the opportunity to offer 60 applicants a complimentary pass to join us at the 6th Annual Cannabis Business Summit & Expo this July 22-24 in San Jose, CA. If you are a minority in an executive cannabis position, please take a moment to fill out the application. We look forward to seeing you in San Jose!
The scholarship application period closes on May 15, so get your application in today!
Applications are due by Midnight PST, May 15, 2019. Awardees will be notified on June 1, 2019. Scholarship recipients will receive complimentary passes to Day 1 and Day 2 (July 23 & 24) of the Summit. Access to workshops and tours taking place on the Pre-Conference day (July 22) will need to be purchased separately. Scholarship recipients will also need to cover & arrange their own travel and lodging needed to attend the event.
VIDEO: The Bright Future Of The Cannabis Industry
The future is bright for the cannabis industry!
Let’s build it together.
Despite the many struggles our industry faces due to federal prohibition, there’s strong optimism for the direction we are going into the future.
Hear more from these NCIA Members about the amazing industry we are building together:
For even more inspiration, download this NCIA Policy Council Report – “The New Politics of Marijuana: A Winning Opportunity For Either Party” – to learn more about the significant voter support for marijuana policy reform and the legal cannabis industry through thoughtful examination of recent public opinion polling and electoral wins.
Plus, check out our event calendar and get your team registered!
Not yet a member of NCIA?
Stay up to date about the rapidly evolving landscape by networking with nearly 2,000 member companies who are part of a movement to build a responsible industry.
Top 5 Reasons You Should Attend Lobby Days This Year
Will you join us as a united front in Washington, D.C. this year?
Hundreds of cannabis industry professionals from all over the country will descend on Capitol Hill this month for the 9th year in a row for NCIA’s Annual Lobby Days. It’s more important than ever before to make your voice heard and advocate for the federal reforms our industry needs to truly thrive.
Whether it’s access to banking for your business, much-needed federal tax reforms, or some of the many other struggles faced by our industry that could be remedied by congressional action, we need you to tell your stories on Capitol Hill with us on May 21-23.
Here’s our top five reasons for you to register today to join us for this exciting and impactful event this year:
Progress made on SAFE Banking Act
Earlier this spring, we saw historic movement on one of our key pieces of legislation: banking. The SAFE Banking Act of 2019 was introduced in the House of Representatives by some of our champions in Congress – Reps. Ed Perlmutter (D-CO), Denny Heck (D-WA). Following an historic hearing, the bill received a markup by the House Financial Services Committee and passed out of the House Financial Services Committee in a vote of 45-15. This is important because it is the first time in history that a cannabis banking bill has made its way this far through the legislative process. NCIA vigilantly jumped in to collect and submit the testimonies of dozens of cannabis industry leaders for the hearing.
The momentum continues to grow as the bill now has more than 160 co-sponsors and will likely be debated again in the House soon. Now is the time to strike while the iron is hot. Join us at Lobby Days to educate and inform even more members of Congress about the struggles our industry faces to get and keep access to financial institutions!
New Attorney General is receptive to state’s rights issues
As the saying goes: out with the old and in with the new! Attorney General Jeff Sessions, who is known for his anti-cannabis stance, resigned from the Department of Justice earlier this year, and was replaced by William Bar. During his Senate confirmation hearing in January, Barr expressed his respect for the policies laid out in the Cole Memorandum, issued in 2014, which cannabis companies have relied on to continue doing business in a state-legal, regulated environment. Additionally, he wrote to the committee, “I still believe that the legislative process, rather than administrative guidance, is ultimately the right way to resolve whether and how to legalize marijuana.”
These statements hint at a more reasonable approach to cannabis reform, and the need for NCIA members to make their voices heard in the halls of Congress, particularly those in Congress with influence on the Senate Judiciary Committee and at the Department of Justice.
New members of Congress
Last November, we saw midterm elections bring in a new class of freshman members of Congress. Many of these new faces replaced the old guard of those with long-standing prohibitionist views toward cannabis. Many of them lean more progressive, which means they are more likely to be friendly toward our issues. This infusion of new blood, new minds, and new perspectives in the halls of Congress can work in our favor.
NCIA’s Lobby Days is the best way to get direct access to some of these offices so we can get off on the right foot with them on our issues. Joining us in D.C. means you will inform and educate these new members of Congress on the struggles we face like tax reform, veteran’s medical access, social equity, and of course, the SAFE Banking Act specifically. How many new co-signers can we get on this bill? Let’s find out together.
Meeting 200+ other politically active industry professionals
It’s not a conference — It’s different. There’s no expo floor or panel discussions, just people. And it happens to be some of the most politically engaged leaders of our industry who attend Lobby Days. You’ll rub shoulders and team up with cannabis industry pioneers who have been in the game for years. You’ll learn the “ins and outs” of the Beltway from lobby day veterans who join us every year to advocate for our industry. Hear about it for yourself by watching this re-cap video from last year’s 8th Annual Lobby Days:
Learn how to lobby and take those lessons home
This isn’t our first rodeo, but it might be yours, and that’s okay. Even if you’ve never done citizen lobbying before, NCIA’s government relations team makes it easy by offering trainings before the event, as well as on-site. We’ll give you materials to help you tell your stories including descriptions of our priority legislation, and background information on the offices you’ll be speaking with. And you won’t have to go it alone! We will team you up with a small group of your fellow cannabis industry peers to navigate the halls of Congress together.
Lobby Days with NCIA will empower you to go back to your home state to advocate on the industry’s behalf. You’ll know what to say, how to say it, and what to expect.
Together, we can make a real difference and push our industry past the tipping point. Hundreds of NCIA members have already registered for this event, so what are you waiting for? Register today, schedule your flight, and book your hotel. We can’t wait to see you there.
Get to know the team at Berkeley Patients Group, a founding member of NCIA, based in the Bay Area of California. Established in 1999, Berkeley Patients Group is the nation’s longest-running dispensary. Etienne Fontan and Sabrina Fendrick talk about the importance of establishing banking services for our industry, as well as other struggles related to federal prohibition. Etienne Fontan also currently serves on NCIA’s Board of Directors.
As “4/20” Ends, Advocacy Ramps Up
This last weekend, cannabis advocates and supporters gathered in cities across the country to celebrate what is known as “4/20,” a cultural celebration of cannabis.
Michigan’s Hash Bash
In several states like Michigan, the celebration was particularly exciting because of recently passed adult-use laws. Earlier this month, NCIA’s Business Development Manager, Clarissa Kriek, attended the 48th annual festival in Ann Arbor called “Hash Bash.” Since 1972, activists have gathered on these grounds to rally and demand policy reforms. Considering this was the first Hash Bash since legalization, it was a particularly memorable occasion Clarissa gave an inspirational speech on stage about the long, hard battle to legalize cannabis in Michigan, which culminated in the passing of Prop 1 in November 2018. Approximately 15,000 people gathered to celebrate this historic event at the University of Michiganʻs Diag, including Congresswoman Debbie Dingell, who spoke about her late husband and how she believed he could have benefitted from cannabis to help treat his prostate cancer but that federal prohibition has stifled research.
National Cannabis Policy Summit
In the nation’s capital, advocacy was as prominent as celebration at the 4th annual National Cannabis Festival, which was preceded by its sister event, the National Cannabis Policy Summit. These events brought thousands of people from around the country to the District of Columbia to bring attention to the harms caused by prohibition but also to celebrate the victories of the movement in an atmosphere of cooperation, innovation, and culture. Dozens of lawmakers, industry leaders, and policy experts – including NCIA’s Michelle Rutter – shared opinions and advice about how we can make cannabis legal in a way that incorporates fairness and justice.
Advancing the reform of outdated cannabis laws is building in momentum, and public support for medical and adult-use cannabis is at its highest levels ever. In the halls of Congress, we’re seeing the reform measures that are important to our industry gain co-signers on both sides of the aisle. It’s an exciting time for ending the war on drugs.
Whether the date is April 20 or September 20, every day is an opportunity to be an advocate of the legal, regulated cannabis industry. From access to banking and tax reform, to social equity and veterans access, now is the time to speak up and tell your stories about how these key pieces of legislation will help your business thrive.
NCIA’s 9th Annual Cannabis Industry Lobby Days
While NCIA’s government relations team works year-round on the industry’s behalf to advocate for access to banking, fair tax policy, and states’ abilities to determine their own cannabis policies, for example, NCIA’s Annual Lobby Days is the most impactful opportunity to participate in democracy. As we prepare for hundreds of meetings on Capitol Hill on May 21-23, it’s crucial that cannabis industry professionals come together to send a powerful message to lawmakers. The industry is here to stay, and it is our industry’s responsibility to keep it that way.
Committee Blog: Cannabinoid Analogues Offer a Promising Future for Medical Cannabis
As outside industries fuse with the cannabis market, we will begin to see innovations that will flesh out our understanding of cannabinoids and how they interact with the human body. I had the opportunity to sit down with chemist Dr. Mark Scialdone and Chris Barone, founder and lead chemist at The Clear™ to discuss the introduction of semi-synthetic cannabis compounds to the market. We focused on hydrogenated cannabinoids; cannabis with a slight twist that could change everything about why and how we consume cannabis.
Hydrogenation is simply treating a compound with hydrogen, which causes a chemical reaction between hydrogen (H2) and another compound or element, usually in the presence of a catalyst such as nickel, palladium, or platinum. This is done in order to reduce or saturate organic compounds, imbuing them with properties the original compounds did not have. These cannabinoid analogues (or semi-synthetic compounds) have a number of applications in manufacturing and medicine.
Hydrogenation is a minor modification to the natural framework of the compounds the cannabis plant produces biologically. Barone describes the process as, “adding hydrogens across the double bonds, thus changing the molecular weight, the molecules geometry, and also its effects on the body.”
Benefits of Hydrogenated Cannabinoids
A major benefit to hydrogenation is that it offers stability at the molecular level, assisting with both shelf life, and resistance to heat. Scialdone explained, “hydrogenation is a chemical transformation on unsaturated compounds to improve their stability and resistance to thermo-oxidative breakdown,” – which occurs when these compounds are in the presence of air. This is the reason you cannot leave cooking oils on the counter exposed to sunlight, as eventually this reaction will cause them to go rancid. Hydrogenation improves the oxidative stability by removing the unsaturation.
Based on a study referenced in Scialdone’s patents (US10071127B2 & US9694040B2), the effects of cannabinoids and hydrogenated cannabinoids were examined, in reference to tumor growth in mice. In these cases, the hydrogenated cannabinoids showed significant improvement in the reduction of tumor sizes; with Hexahydrocannabinolic Acid (HHCA) at a 39.70% reduction, and HCBDA at 55.83% reduction (compared to the non-hydrogenated compounds THCA at 37.67% and CBDA at 47.02%) (source). It’s possible that hexahydrocannabinoid (HHC), being more stable than tetrahydrocannabinoid (THC), and less prone to dehydrogenation (converting to DHC and CBN), may have an impact on resistance towards oxidative metabolic breakdown in the liver, though there is no critical examination at this time. It has been observed in metabolic studies that hydrogenated compounds are resistant to this kind of breakdown, suggesting that hydrogenated cannabinoids may exhibit this trait as well.
Image: Cannabinoid Structures
Difference Between Natural and Semi-Synthetic Cannabinoids
There is still much research to be done to define the exact pharmacological differences between hydrogenated and their plant-derived cannabinoids, but the chemical differences are quite distinct. “Tetrahydrocannabinoids like THC are metabolized into the 11-Hydroxy-THC-metabolite and ultimately the nor-carboxy-THC-metabolite; because we’ve converted the THC to HHC, metabolites will differ from the ones derived from THC,” explained Scialdone. Thus, they will have a different pharmacokinetic profile because the metabolites are going to be different in hydrogenated compounds. Meaning, the hydrogenated compounds could have a longer half life and bind to different receptors within the ECS.
A study published in the Journal of Medicinal Chemistry evaluates the ability of various cannabinoid analogues to modulate the production of reactive oxygen intermediates (ROI) various metabolic functions as well as their binding capabilities to the cannabinoid receptor (CB1). It was found that hydrogenated CBD and Cannabidiol-dimethylheptyl (CBD-DMH) demonstrated bioactivities different from their original compounds (source). The study focused on the anti-inflammatory and immune responses that have been previously observed in the non-analogue compounds. To compare the hydrogenated cannabinoids, they observed the derivative compounds for their ability to suppress the production of ROI, nitric oxide (NO), and tumor necrosis factor (TNF-⍺) by activated macrophages in vitro. Some of the compounds (7 and 4) exhibited an increase in their suppressive effects of NO, TNF-⍺, and ROI. Compounds 7 and 8 are strongly bound to the central cannabinoid receptor (CB1), but with an opposite effect on their ability to modulate the release of inflammatory mediators. When compared to the effects of natural cannabinoids, it is noted that isolated cannabidiol (CBD) also has tumor growth suppressive qualities, with similar functions of hydrogenated CBD (source). The distinction between the two is the bioavailability and slow breakdown of the hydrogenated compounds, however more research is required.
Image: Chemical Structure of Cannabidiol Derivatives
The JMC study concluded, hydrogenated cannabinoids exhibited good binding to CB1, but have varying effects on inflammation – which could spring opportunities for anti-inflammatory and immunosuppressive properties in murine collagen-induced arthritis, as suggested by the Ben-Gurion University. This is because the hydrogenated cannabinoids seem to have a strong effect on hyper-inflammation, which would reduce pain and swelling of the joints.
Public Health and Safety
When dealing with new compounds, it is crucial that health and safety are considered. “We will want to look at what impacts the hydrogenation has on the metabolic profile, and whether or not the hydrogenation is having a beneficial impact on biological actions with the cannabinoids,” explained Scialdone.
It will still take a few years for a product like this to be available to the public. Although the market may see hydrogenated cannabinoids present in medical and recreational states sooner, extensive research on these compounds will remain difficult under current federal laws. The Federal Analog Act states any substance derived from a schedule I or II substance will be treated as the same schedule substance when its purpose is for human consumption. “Pseudo-synthetic cannabinoids should be allowed in my opinion,” Barone adds, “but only through close analysis of the SOPs and quality control conditions. In states where they do not have the resources, I believe manufacturers should be mandated to hire third-party chemical manufacturers to audit and approve the techniques being used.”
Image: Crystalized HHCA Captured by CM Botanical
Research in this arena will provide greater understanding as researchers gain further understanding about hydrogenated cannabinoids and their impact on the human body. Barone pointed out, “I’d like to emphasize that the human interaction with this molecule is the driving force of the progression. Without the idea and the human, the molecules sit untouched and unexplored.” Utilizing the unbound creativity of science, the cannabis plant has more to offer than we once knew.
Courtney Maltais is co-founder and lead biologist at The Clear; a California-based extract company that brought the first Cannabis distillate to market in 2013. Maltais works with industry leaders in cultivation, manufacturing, and product development to create efficient, safe, and standardized lab practices. Her passion for science and education has led her to expand into educational outreach for both business owners, employees, and consumers alike.
NCIA’s Scientific Advisory Committee is comprised of practicing chemists and other scientific field professionals to advise other NCIA committees as they work to develop standards and guidelines for the various sectors of our industry, ensuring that any formal recommendations produced by other NCIA committees are scientifically sound, sustainable, and legitimate.
VIDEO: Why Are You A Member Of NCIA?
Membership has its benefits.
Hear more about why these NCIA members are part of the movement. Join today!
Hear what’s most important about being a member of NCIA from:
NCIA members lead the industry’s efforts to change national policy while enjoying benefits that provide a competitive advantage over isolated cannabis business operators.
In mid-2019, the top five POS providers account for 68% of the overall cannabis market, and the top 10 account for 84% of the market. Part of this change can be attributed to active California licenses expiring and revisions to the survey methodology. 
Ed Keating is a co-founder of Cannabiz Media and oversees our data research and government relations efforts. He has spent his whole career working with and advising information companies in the compliance space. Ed has overseen complex multijurisdictional product lines in the securities, corporate, UCC, safety, environmental and human resource markets and focuses on workflow products. Ed has spent the last twenty five years in the information industry. During that time he has worked for both startup and established information companies where he has led marketing, product management and sales organizations. These companies include Wolters Kluwer/Commerce Clearing House, CT Corporation, EDGAR Online and Business & Legal Reports. At Cannabiz Media, Ed enjoys the challenge of working with regulators across the country as he and his team gather corporate, financial, and license information to track the people, products and businesses in the cannabis economy. Ed graduated from Hamilton College and received his MBA from the Kellogg School at Northwestern University. He has been active with the Software & Information Industry Association for his whole career and managed the Content Division for six years. He’s was recently a Trustee at the Country School in Madison CT and a Little League Coach for seven years.
1. Lisa Jordan
2. Maureen McNamara
3. Kim Wilson
4. Laura Wilkinson Sinton
5. Diane Myer Brown
6. Kara Bradford
7. Heidi Quan
8. Lauren Mendelsohn
9. Laura Breit
10. Karen J. Bernstein
