Member Blog: 9 Standard Operating Procedures Every Dispensary Should Have
by Tommy Truong, Director of Partnerships at KayaPush
Standard Operating Procedures (SOPs) are the documents, protocols, systems, and procedures that your cannabis dispensary should have in place to manage day-to-day operations. SOPs help dispensaries in many ways: From optimizing proper employeemanagement systems such as dispensary payroll and onboarding to ensuring compliance with regulations are consistently met, and more.
What are the top dispensary SOPs to use?
There are hundreds of dispensary SOPs that could be created, and they should constantly be evolving as your store grows.
Overall the goal of dispensary SOPs is to increase efficiency and help you become more profitable in the long run. That being said, these are the 9 types of dispensary SOPs we recommend you start with as you build and scale your dispensary store.
1 – Opening & closing procedures and SOPs
All brick and mortar retail stores should have SOPs in place for opening and closing the store. But especially stores that require high-security measures like cannabis retail stores. Opening and closing checklists for this special breed should include the following: Opening checklist:
Vibe check: Turn on lights, music, temperature, put out signs, clean.
Check for any signs of a break-in or forced entry every morning.
Make sure that all products in the display and stores are accounted for.
Put away any orders.
Review inventory.
Turn on and start up all software systems.
Ensure you are in dress code (if applicable)
End of day checklist:
Check that the security cameras are working.
Lock all the doors and display cabinets.
Check and report any obvious security threats/ logbook.
Generate sales and compliance reports.
Cash-out protocols.
Closing the cash registers and POS system.
Turn off lights, music, bring in signs.
Clean and sanitize the store.
Lock all doors and perform security checks.
2 – Customer check-in procedures and SOPs
Many cannabis dispensaries violate their customer check-in procedures and end up facing fines and license suspensions by regulators. Due to this, it is crucial that you implement customer check-in SOPs to ensure compliance.
Customer check-in procedures include:
Proper budtender training on protocols beforehand.
Screen every customer entering the store to ensure they are of legal age.
Ensure customers have a valid license to purchase cannabis.
Scan the customer’s ID to make sure it is genuine and valid.
Check the customer’s age, and enter these details into your customer database or tracking system.
Check the system to ensure the customer has not already gone over their purchasing limit at a different store.
Follow proper serving protocols.
3 – Sales transaction process and SOPs
Sales transaction processes are crucial to the business because this is how the company generates its revenues. Keeping track of these is key. Do you have the following sales SOPs? Sales transaction processes could include:
Greeter procedures (first customer contact),
Boxing and packing procedures.
Cashier procedures.
Answering customer product questions.
Recording product sales information into tracking systems.
Recording shipping information.
Processing various forms of payment.
Gathering sales tax to submit.
It would help if you integrated your SOPs with the technology you’re using, like cannabis-compliant POS systems.
4 – Delivery procedures and SOPs
Cannabis deliveries can get complicated as they tend to include strict guidelines around logistics. This is why it’s essential there are SOPs built around these logistics.
Delivery procedures could include:
Packaging and shipping guidelines with regards to the different types of products.
Procedures in place to pack and mark fragile deliveries — like glass bongs — clearly to ensure safe delivery.
Details and SOPs around third-party deliveries.
Sop’s around management tools or software.
Inputting data into the tracking software or POS system.
Proper accounting and documentation of the aforementioned.
5 – Security, accounting, and cash management protocols and SOPs
Cannabis retail stores face many challenges when storing and moving cash from the store to the bank. Since dispensaries are not legal at the federal level in the United States of America, they are limited in the services they can receive from banks. As a result of those limitations, dispensaries struggle with large amounts of cash being stored on the dispensary’s premises, so tight SOPs surrounding how to navigate these challenges are crucial.
Security and cash management protocols could include:
What employees are allowed in sensitive areas like stores and cash safes.
How long to keep security camera recordings and how to report a robbery.
How often armored trucks can pick up cash.
Who gives the cash to the trucks.
How the cash is stored while at the dispensary.
Who is keeping track of accounting and line items?
Who is keeping track of inventory management?
How are taxes being filed and accounted for, and by who?
6 – Track-and-trace & inventory management and SOPs
Track and Trace SOPs are important for every cannabis dispensary. In order to comply with the regulations, you have to adopt track and trace SOPs into your inventory management system.
These track and trace SOPs should cover:
Inventory management processes like procurement.
Transportation to store.
Product transfers.
Audits.
Track and trace software procedures that comply with local regulations.
Given how important track and trace SOPs are for compliance, you should automate this process if possible. Track-and-trace automation software can help you define the roles for each activity and integrate compliance checks.
7 – Quality assessment SOPs.
Quality assessment SOPs will make sure your product is up to the required standard by the regulators and that you are not violating any laws over what ingredients can be included in your products and how they are made. Failure to comply with these SOPs or pass a quality assessment could leave a dispensary owner at risk of losing their license. Quality assessment SOPs could include:
Purchasing products from verified sellers.
Ensuring products are tagged within tracking systems.
Ensuring you are selling products that you can legally sell within your geographic location.
Product feedback requests.
8 – Product recalls and emergencies and SOPs
Product recall SOPs will come into play when a defective product needs to be recalled from the market. This can be stressful for the team as it will lead to customers complaining, and management concerned about losses being recorded. One of the most valuable assets to have in this situation would be SOPs that guide your team on how to act in this situation without losing their cool or professionalism.
Recall SOPs could be:
How /who contacts purchasers.
Who is on top of product updates (do you have a compliance manager?).
Product recall script.
9 – Employee Management SOPs
Previously, these SOPs have been focused on inventory and store management, however, managing your staff is another large part of any dispensary operation.
When managing your staff it is recommended that you use employee management software to alleviate the stress of manually running operations such as dispensary payroll, scheduling,onboarding, ortime clock adjustments. Using software alone can eliminate the need for some of these SOPs but if you do choose to go the manual route you should have SOPs for the following procedures. Employee management SOPs could be:
How do you onboard employees?
Who manages their forms and licenses?
Who writes and manages the schedules?
How do employees swap shifts?
How do staff clock into shifts?
How runs payroll?
How are staff paid?
How are taxes paid?
How are employees’ performances reviewed, and by who?
Conclusion
These are the major SOPs that we believe you should have in place before opening or scaling, but don’t forget that enforcing them is just as crucial as implementing them!
The best way to run a compliant, systematic, and streamlined dispensary is to use great technology to help you succeed! Consider using a project management tool to help you stay on top of all your tasks, a people management solution for payroll, HR, time tracking, and scheduling, and a dispensary POS solution that integrates with track and trace technology and people management solution for the best results. By using the tools paired with standard operating procedures your dispensary is sure to succeed.
Author Tommy Truong is the Director of Partnerships at KayaPush; the cannabis software helping dispensary owners manage their employee HR, scheduling, and payroll. KayaPush also integrates with leading dispensary POS systems. Tommy loves hot sauce, fried chicken, and running with his Boston terriers.
Equity Member Spotlight: Toni Brands with Toni Scott
NCIA’s editorial department continues the Member Spotlight series by highlighting our Social Equity Scholarship Recipients as part of our Diversity, Equity, and Inclusion Program. Participants are gaining first-hand access to regulators in key markets to get insight on the industry, tips for raising capital, and advice on how to access and utilize data to ensure success in their businesses, along with all the other benefits available to NCIA members.
Tell us a bit about you, your background, and why you launched your company.
I grew up in Connecticut in the 70s and was repeatedly reminded of the cannabis stigmas, witnessing others partake in regular consumption, yet never noted any of the proclaimed stigmas; in fact, it appeared the exact opposite.
I’m a Master’s prepared Registered Nurse and Certified Yoga teacher, working in the healthcare industry for over 30 years. As a child and well into adulthood, I suffered from debilitating eczema, anxiety, and depression, treated with high-dose topical steroids, sedatives, and antihistamines, eventually leading to overuse. In the mid-’90s, I smoked my first joint; I also began pursuing my first nursing degree.
A few years after graduation, I began working as a travel nurse in Newborn Intensive Care Units across the U.S. Although I was very aware of the relief cannabis brought to my physical and mental wellness, I utilized it with underlying shame, guilt, and fear of a positive urine drug test, a legal pre-employment requirement for nurses.
By the early 2000s, I suffered a traumatic professional burnout; at the time, my health was poor, my stress-induced eczema exacerbations left me with painful cracked skin on my face, hands, arms, and legs. I was prescribed the highest dose of topical steroids and antihistamines with no resolve; I was a mental and emotional wreck.
Unfortunately, that wasn’t my first time feeling defeated in my skin; as a child, I ingested various prescribed medications. I can vividly recall feeling like a walking science experiment, constantly misdiagnosed and prescribed drug after drug. Nothing worked; in fact, the treatments left me worse off; it wasn’t until the professional burnout that I decided to take charge of my physical, mental and emotional health. I stopped taking ALL prescribed and over-the-counter medications; instead, I began to intentionally utilize yoga, meditation, dietary changes, and cannabis for self-care.
I began to dig deeper into the plant, educating myself about the endocannabinoid system phytocannabinoids, researching the history, and regular visits to local dispensaries. It was during the dispensary visits that I identified a massive pain in Gen X and Baby Boomer populations. Stigma, fear, and uncertainty keep many in this demographic away from reaping educational and wellness benefits of a healthy balanced endocannabinoid system, incorporating phytocannabinoids, physical movement, stillness, and creative expression.
I launched my brand to become the sought-after wellness thought leader, educator, and advocate for cannabis health equity in communities most affected and continue to be affected by the war on drugs.
What unique value does your company offer to the cannabis industry?
I bring my personal experiences of the therapeutic effects I’ve received from cannabis. As a nurse, I understand human anatomy and physiology, including the endocannabinoid system. Through continued education, I’m well versed in the relationship between endocannabinoids and phytocannabinoids and the effect they have alone and together on human wellness. I understand how incorporating movement and stillness practices in partnership with cannabis can provide many health benefits.
What is your goal for the greater good of cannabis?
I have three primary goals for the good of cannabis.
Wellness Thought Leader – As an aging woman who utilizes many Eastern wellness practices, my goal is to share with others a new approach to aging, using my handcrafted CBD-infused topical skin products, yoga, meditation, and creative expression practices.
Education – Cannabis stigma is a significant barrier between acceptance and usage in Gen-X and Baby Boomer populations. It’s my goal through easy to comprehend education, storytelling, retreats, and practice to begin breaking these barriers. Including educating our community leaders, political figures, dispensary owners, and religious leaders.
Advocacy – Cannabis health equity is not something Black and Brown folks should need to beg for; it’s my goal to be a voice for the voiceless, actively work towards better health and wellness in communities that are often overlooked when it comes to education, yet flooded with legal and illegal access to cannabis without any instruction or understanding. The lack of economic, social, and political health equity in these communities is a recipe for failure as adult use becomes legal and the impending federal legalization. We can’t afford to wait and see this out; we must address cannabis health equity now.
What challenges do you face in the industry, and what solutions would you like to see?
Unfortunately, being an African American woman in this industry is a challenge. My personal experience with the plant, professional education, and long-standing career in preventative wellness doesn’t seem to hold much weight. The industry is more vested in the marketing and sales of cannabis, touting social equity along the way for good measure. That’s not enough; cannabis health equity, education, resources, and sustainable outcomes must be provided. I’d like to see multi-state operators hire diverse directors of health services to their c-suite. A diverse leadership team can provide a balanced focus on cannabis social and health equity that serves the industry and the end-users.
Why did you join NCIA? What’s the best or most important part about being a member of the Social Equity Scholarship Program?
I joined NCIA for the opportunity to meet, learn, grow, and collaborate with other industry professionals. The membership fees can be steep for those bootstrapping, and I wanted to see what NCIA was about and if they walked the talk before committing to a full membership. It’s been a fantastic journey so far. I’m on the Education Committee, its retail sub-committee, and health equity working group. Our weekly social equity “Power Hour” is highly beneficial, a safe space to collaborate and support each other. It’s also been a great resource, and I appreciate the educational webinars, complimentary conference tickets, and business development support.
Member Blog: Will 2022 Be the Year for Cannabis Consumption Lounges?
Key Questions & Considerations for Those Looking to Ride the Next Big Wave
In the ever-evolving and fiercely competitive cannabis industry, consumption lounges (a.k.a. social or smoking lounges) are generating big buzz. Innovators and proponents for their legalization see it as a prime opportunity to better compete in a saturated market, attract new customers and grow market share. Opponents throw up a heap of red flags, including drugged driving, crime, and the health risks associated with smoke exposure.
Whether this new retail business model blows up in 2022 or not is anybody’s guess. Nevertheless, our industry must prepare for this next big wave in cannabis consumption. As an insurance broker who specializes in the cannabis industry and works with a wide variety of cannabis, hemp, and CBD businesses in every state where marijuana laws are established, we’ve done a deeper dive into the opportunities, and risks versus rewards for businesses looking to ride the potentially next big wave in cannabis.
The Opportunity
The concept of a cannabis consumption lounge is nothing new, really. Similar to a bar that serves alcoholic beverages, consumers at least 21 years of age can not only purchase flower, edibles, etc. from a budtender but also consume these products in a social gathering place. Amsterdam’s “coffee shops” serve as the inspiration and model for cannabis innovation in the U.S. In the Netherlands, however, coffee shops operate in a legal grey area with their products being supplied by an entirely underground cultivation market. Of course, here in the U.S., the burden falls on individual states since marijuana remains illegal at the federal level.
Analysts predict cannabis consumption lounges will be a budding business in states where recreational and/or medical marijuana is legal. This emerging business model is particularly attractive to states with more mature cannabis laws, like California and Nevada. Alaska became the first U.S. state to allow consumption lounges in 2019 and Nevada is the latest to announce plans for the first state-sanctioned lounges by mid-2022. In all, seven states including the aforementioned, as well as New Jersey, New York, Pennsylvania, and Illinois, are forging ahead with their plans to allow for consumption lounges in 2022. These states will likely serve as a blueprint for other states as their popularity grows.
Risks versus Rewards of Cannabis Consumption Lounges
State regulatory bodies are grappling with how to develop, implement and enforce the rules surrounding social consumption lounges. For example, what will the laws around consumption lounges look like? How will business mitigate the myriad of risks? From an insurance perspective, will there be a need for new products? Should coverages be similar to Bar/Restaurant/Lounge insurance (DRAM Insurance), as both types of businesses face similar risks?
They will also need to carefully address questions and concerns about public health implications. Could public consumption spaces cause people to over-consume? Will there be limits on how much cannabis a person is allowed to consume at a lounge in one visit? What is a “single serving” of cannabis anyway? These are all questions surfacing to the top.
Many see the potential benefits of licensed social consumption lounges as ways to curb the illicit market, regulate public consumption, ensure consumption in a safe space and bolster the economy. A “Designated Consumption Establishment License” is particularly attractive to entrepreneurs looking to enter the cannabis market, but aren’t interested in growing, processing, or operating a traditional dispensary. Furthermore, cannabis consumption lounges are particularly attractive for their potential to attract tourism dollars. The masses of tourists buying cannabis products in states that have legalized recreational marijuana have nowhere to smoke it legally — not on the sidewalk and not in their hotel rooms.
What Lies Ahead?
In order for the cannabis industry to continue to thrive and expand, new retail models must be considered. We believe it is highly likely that social consumption lounges will become increasingly common, especially in major U.S. cities with legal adult-use cannabis programs.
If you’re thinking about opening a cannabis consumption lounge, it’s important to stay on top of your state’s specific laws since they do vary from state to state and are likely to change and evolve. It’s equally important to make sure you have the right insurance policies in place. Many insurance companies have exclusions in their policies that prohibit onsite consumption, meaning your lounge would not be covered if an unexpected event like a theft, fire, data breach, product defect, accident, or any other type of lawsuit occurs. It’s important to examine your current policies and make adjustments, if necessary. It all boils down to the THREE P’s: being “Proactive, Prepared and Protected.”
Eric Rahn, Managing Director of S2S Insurance Specialists, is a highly specialized insurance broker and risk management professional with over 30 years of experience providing C-Suite executives strategies and solutions that protect and safeguard their businesses.
A graduate of Babson College School of Entrepreneurial Studies, Eric has held several executive positions in the maritime and casino/gaming industries, including CEO of the largest privately own casino concessions company operating on cruise ships around the world. Eric transitioned his knowledge of corporate business practices in highly regulated industries into the burgeoning cannabis space, establishing S2S Insurance Specialists in 2017.
Eric has served on the National Cannabis Industry Association’s (NCIA) Risk Management Insurance Committee since 2016. He is also a national speaker on cannabis insurance and author of NCIA’s Risk Management and Insurance’s “Introduction into Cannabis Insurance.”
Partner Blog: Lessons To Be Learned On Both Sides Of The Atlantic Ocean
Momentum for cannabis policy reform has never been greater than it is right now since the start of international cannabis prohibition. That is particularly true in the United States and the European continent where a growing number of states and countries are legalizing cannabis for adult use.
Cannabis is now legal for adult use in nearly 20 states in the U.S., and Europe recently witnessed its first country passing a national legalization measure when lawmakers in Malta passed a measure late last year. More legalization is expected in the U.S. and Europe in the coming years.
The cannabis industry has enormous potential in both the United States and the European Union, and collaboration opportunities will be abundant. Canada’s legal industry may have beat the U.S. to the European continent, however, there are still many policies yet to be reformed and dust left to settle on both sides of the Atlantic Ocean.
A Patchwork Of Laws And Regulations
Canada was the first G-7 nation to legalize cannabis for adult use, and the second nation to legalize cannabis on the entire planet only behind Uruguay. That may lead some to believe that Europe should look to Canada for lessons to be learned from rolling out a legalized adult-use industry.
While there are certainly some aspects of Canada’s industry to monitor, what is going on in the United States is far more applicable in many ways to what is going on in Europe due to the patchwork of laws and industry regulations in both regions.
Just as there are some legal states in the U.S. operating simultaneously alongside states that do not have legal industries, the same is true in Europe where cannabis policies and regulations vary widely depending on the country. The need for entrepreneurs to know the nuances between jurisdictions is extremely important as they scale their operations, along with the need to push for sensible, consistent policies and regulations across borders.
Superconference Coming Back To Barcelona
The International Cannabis Business Conference is coming back to Barcelona on March 10th and once again will be teaming up with Spannabis to form the world’s largest cannabis superconference. The conference is co-sponsored by Bhang Inc and Grow Glide, and the event’s after-party is sponsored by Juicy Fields.
Aaron Smith, Co-Founder and Executive Director of the National Cannabis Industry Association, will be a featured speaker on a panel dedicated to keeping legacy cannabis brands alive as corporate cannabis continues to gain a foothold in the industry.
The most entertaining man in cannabis, Ngaio Bealum, will serve as the International Cannabis Business Conference’s Master of Ceremonies in Barcelona. Additional speakers include:
Dr. Juana Vasella – Attorney of Law, MME Legal Zurich
Joan Simó Cruanyes – Coordinator of Cananbis Hub UPC
Albert Tio – Founder of Airam and President of Fedcac
Lisa Haag – Founder, MJ_Universe
Juanma Fernández – CEO, Easy CSC Group
Patricia Amiguet – Founder of Pachamama Cannabis Association and President of CatFAC
Zeta Ceti – Founder and CEO, Green Rush Consulting
Ruben Valenzuela Moreno – CTO, Valenveras
Over 80 countries will be represented at the superconference this March in Barcelona and will include representatives from every sector of the industry as well as leading international cannabis policymakers and industry service providers. Attend the superconference in Barcelona to network with investors, entrepreneurs, industry regulators, and international policymakers and take your industry pursuits to the next level.
The International Cannabis Business Conference also has additional upcoming events in Berlin in July 2022 and Zurich in September 2022. You can secure tickets now and take advantage of the early bird pricing discount.
Alex Rogers is the owner and CEO of the International Cannabis Business Conference series. Rogers is a serial entrepreneur and world citizen with a passion for building businesses that create, support, and sustain culture and community.
Video: NCIA Today – Thursday, February 10, 2022
NCIA Deputy Director of Communications Bethany Moore checks in with what’s going on across the country with the National Cannabis Industry Association’s membership, board, allies, and staff. Join us every other Thursday on Facebook for NCIA Today Live.
February Hodgepodge: An Update from D.C.
Photo By CannabisCamera.com
by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
It may only be February, but the NCIA government relations team has been busy at work this year advocating for you and your business! Just over the last month, the SAFE Banking Act passed the House for the sixth time, we held our first mini-virtual lobby days, and Majority Leader Schumer provided an updated timeline for the Cannabis Administration and Opportunity Act (CAOA). Keep reading to learn the latest:
SAFE Banking
Last week, Congressman Perlmutter (D-CO) followed through on his promise to attach SAFE Banking to any viable legislative package when he filed it as an amendment to the America COMPETES Act, which is a large manufacturing bill. Now, the bill is headed to a “conference committee” – a term for when House and Senate leadership, as well as committee chairs and other members of Congress get together to negotiate differences in the two chambers’ bills.
Congressman Perlmutter and the other lead offices of SAFE Banking are currently talking with leadership about the importance of enacting the provision, however, Leader Schumer and Senator Booker have been clear about their opposition to passing SAFE without broader equity provisions. During early February, keep your eyes on the news to see if SAFE Banking makes it into the final, enacted language!
Virtual Lobby Days
Due to NCIA’s Evergreen members’ investment in shaping policy for the cannabis industry, we have been able to take our Government Relations work virtual by hosting our first ever Mini-Lobby Days! As we continue to represent a value-driven, responsible industry, our main goal is to educate congressional offices on all aspects of cannabis policy reform, including social equity, banking, 280E, scientific data, and much more.
During the first week of February, NCIA’s Evergreen Roundtable members participated in more than 30 virtual congressional meetings, including time with Sen. Cory Booker (D-NJ), Sen. Jeff Merkley (D-OR), and Rep. Dave Joyce (R-OH). Members also met with relevant committee staff and communicated the importance of holding hearings and markups on cannabis policy issues, as well as enacting reform while Democrats hold the majority in both chambers.
Sound interesting? Get in touch with Maddy Grant (Madeline@TheCannabisIndustry.org) to learn more about becoming an Evergreen member today!
Latest on CAOA
Back in September, NCIA and other stakeholders submitted responses to the Cannabis Administration and Opportunity Act (CAOA) discussion draft, led by Leader Schumer (D-NY, and Sens. Booker (D-NJ) and Wyden (D-OR). Since then, the Senate’s focus has been primarily on passing President Biden’s Build Back Better Act, which has significantly slowed progress on the CAOA. While the bill hasn’t been formally introduced yet, the sponsoring offices have slowly continued to have conversations with committees of jurisdiction to tee things up behind the scenes.
In a recent press conference in New York, Leader Schumer announced plans to introduce the CAOA in April. Can anyone say 4/20?
This update just represents a small snapshot of all that NCIA’s government relations team has been working on in D.C. – make sure to keep an eye on the blog, find us on NCIA Connect, and follow us on our social media channels to learn the latest!
NCIA Board of Directors Selects 2022 Officers
by Aaron Smith, NCIA’s CEO and Co-founder
On Monday, February 7, NCIA’s Board of Directors conducted its first meeting of the year and gladly welcomed Michael Cooper of Madison Jay Solutions and Peoples’ Ecosystem CEO Christine De La Rosa as newly-seated members of the leadership team.
A longtime member of NCIA, Christine also serves as chair of the association’s Diversity Equity & Inclusion Committee. Michael is Chair Emeritus of NCIA’s State Regulations Committee and current Policy Co-Chair. Both have joined 13 other incumbent board members and will be serving during the 2022-24 board term.
NCIA commends Christine and Michael for their leadership and dedication to building an industry we can all be proud of.
The board also selected its slate of 2022 officers. By unanimous vote, the following directors have been appointed:
Along with CEO Aaron Smith, the board officers make up the governing leadership of the largest trade association representing the cannabis industry. NCIA is proud to be a member-led organization that looks out for what’s best for all legal cannabis businesses – large and small.
NCIA’s editorial department continues the Member Spotlight series by highlighting our Social Equity Scholarship Recipients as part of our Diversity, Equity, and Inclusion Program. Participants are gaining first-hand access to regulators in key markets to get insight on the industry, tips for raising capital, and advice on how to access and utilize data to ensure success in their businesses, along with all the other benefits available to NCIA members.
Tell us a bit about you, your background, and why you launched your company.
My name is Dr. Donise Floyd and I am the founder and managing member of Legacy Greens, a vertically integrated cannabis company. I was born and reared in Detroit, Michigan and I am a product of the public school system. I have a BS and MS from U of Detroit Mercy. I also have a Ph.D. in Leadership. Throughout my career, I have been instrumental in developing teams, building sustainable programs, formulating compliance models, and have been instrumental mentoring and impacting the community. I have been an administrator, educator, professor, mentor, business owner, and advocate for the community.
I experimented with marijuana when I was younger and like many others around me understood the value of the product for medicinal and recreational purposes. When I was younger, I would hear individuals reference marijuana as their medicine. In the late 1970s up to now, people use the plant to treat things like anxiety, depression, stress, and cancer. It was referenced and/or used as a medicine before it was popular. What is now known as the cannabis industry was known as a “side hustle” in my family and in some cases, a full-blown business that thrived and supported families and communities. But it was illegal. I look back now through very educated eyes and think how things could have been different if there were no legal implications. There was a high price to pay if you were caught! Especially if you were Black!
I have witnessed my family, friends, and community pay for it with their lives. Whether it was long-term prison sentences or loss of life; the sacrifice was tremendous and the impact far-reaching and long-lasting. I have seen, felt, witnessed, and lived the fallout of the war on drugs that ultimately decimated my community. We knew the penalty for “hustling” this plant was either incarceration or maybe even death. Today, the very thing that destroyed communities and families has become a multi-billion dollar industry. Legacy Greens was birthed to assist in restoring the community, build generational wealth, and repair some of the harm in family dynamics. Our goal is to vertically integrate this company so that it can lend itself to support, educate, and fund other entrepreneurial ventures that are connected, directly linked or outside of the cannabis space.
What unique value does your company offer to the cannabis industry?
Legacy Greens is a minority female and social equity-owned and operated company. We are committed to connecting the community to resources. Our desire is to build a network and partnerships with other minorities, BIPOC, women, LGBTQ+ and veteran-owned companies both in the cannabis and ancillary space. The goal is to build relationships that would build wealth, opportunity, community, and lasting relationships.
While Legacy Greens is a for-profit cannabis company, our vision and mission are rooted in a philanthropic belief and value system. We are currently raising capital to launch phase one of our plan to open a dispensary leading to a fully vertically integrated company. We have submitted applications for several licenses beginning with an event planner. Others include dispensary, grow, and processing. Our business will use its profits to restore the community and part of our purpose is to build bridges that will lead to the creation of pathways to business ownership.
What is your goal for the greater good of cannabis?
Part of our goal is to “turn the black market green” by building bridges to access (one entrepreneur at a time). That is to say that we will support businesses with undocumented years of plant-touching experience with no resources and maybe even a lack of understanding with running a formal business. Legacy Greens is committed to R.I.D.E. for its community – Restore, Invest, Develop, and Educate.
What kind of challenges do you face in the industry and what solutions would you like to see?
The major barrier, at this time, is access to capital. We have been bootstrapping this initiative and have been faced with many challenges that we have and are still overcoming. Access to capital is a huge barrier but being a minority women business owner is another. It would be great to see more access to capital for the BIPOC community. It is so disheartening that in some cases the access is limited because of the color of your skin. We shall overcome all barriers and become a successful business that builds wealth not only for itself but for the community.
Why did you join NCIA? What’s the best or most important part about being a member through the Social Equity Scholarship Program?
NCIA has been a great networking tool. Their commitment to support social equity businesses is extremely valuable. The access to information has been very beneficial. The relationships and exposure have been immeasurable and the connections have been extremely rewarding.
It is my goal to continue to build relationships and maybe even partnerships. In some cases, it has even been a support system. Having the opportunity to discuss and roundtable ideas or challenges has proven to be an invaluable resource. NCIA has been an extremely valuable resource for Legacy Greens and its efforts.
U.S. Cannabis Business Conditions Survey Report Reveals Critical Concerns for the Cannabis Industry in 2022
by Beau Whitney, NCIA’s Chief Economist
As the largest national trade association of the cannabis industry, NCIA works to advocate for and advance the interests of hundreds of member businesses. The recent publication of the Whitney Economics U.S. Cannabis Business Conditions Survey Report offers a granular look at how respondents are feeling, and what they are worried about.
Survey description
There were a total of 396 respondents to the Whitney Economics U.S. Cannabis Business Conditions Survey. Respondents were either licensed cannabis businesses or ancillary businesses to the cannabis industry, and were from 20 states across the country. According to the report, the objective of the survey was to “establish a baseline of data, and identify the successes and the challenges that operators in the industry are facing.”
The survey examined policy, regulatory issues, industry successes, and overall industry sentiment using questions around demographics, questions intended to definitively answer a specific question, and questions with the opportunity to offer multiple responses or comments. We are pleased that NCIA members participated in the survey. Because this survey is intended to be conducted on a quarterly basis moving forward, we expect that a growing number of the NCIA membership will want to participate.
Key Takeaways From the Survey
Only 42% of respondents are turning a profit. Further, in terms of profitability, female respondents and non-white respondents are faring much worse than white, male respondents.
While 58% of businesses overall are not making a profit (either breaking even or losing money), 62.5% of female-run businesses are not turning a profit and 67.8% of BIPOC businesses are not turning a profit.
Lack of banking, market volatility, and state & federal taxation are the key issues facing cannabis operators.
72% of respondents stated that access to banking and other financial services was the top issue facing them.
Smaller operators are struggling by being pulled in two different directions. On one side is the competition from the illicit market that competes for the same customers as the smaller operators and the other side is the ever presence of big businesses looking to consolidate the market.
Taxation is an issue that impacts all businesses regardless of size. Cannabis operators run the risk of being taxed out of business. State policymakers are focused on state issues without considering the impact of federal policy and federal policymakers are not considering the state policy. This lack of a unified tax policy is creating strain on business operators.
The concerns of the industry are weighing heavier on the minds of operators than are the successes, and this is impacting industry sentiment.
Business owners are quite proud of their accomplishments over the past year, from increasing opportunities for women and minorities, to doing more for their workers and educating an ever-increasing clientele.
Despite this success though, cannabis operators’ concerns far outweigh their feeling of success and this is impacting the overall sentiment.
The word cloud on the successes tells a compelling story.
We are very excited that we have now established a baseline of new data that reflects operator sentiment and business conditions. This can help support the narratives with data when having policy discussions at the state and federal levels and to help shape strategy for operators in this space.
“We are delighted on how this initial survey turned out and look forward to surveying the cannabis landscape regularly in the future. We really appreciate the support we received from leading national cannabis organizations such as NCIA.” – Beau Whitney
Video: NCIA Today – Thursday, January 27, 2022
NCIA Deputy Director of Communications Bethany Moore checks in with what’s going on across the country with the National Cannabis Industry Association’s membership, board, allies, and staff. Join us every other Thursday on Facebook for NCIA Today Live.
NCIA’s 7th Annual Cannabis Business Summit & Expo Highlights
New Experiences, Fresh Perspectives, and Best-in-Class Content
We at NCIA would like to take a moment to thank our members, partners, and sponsors, as well as so many new faces in the cannabis industry, who attended and supported our 7th Annual Cannabis Business Summit & Expo, December 15-17, 2021, in San Francisco. As we reflect on this successful three-day event, several key elements stand out as high points to remember.
“In a word: amazing. I am truly amazed at the show of support from cannabis leaders from across the country,” says Aaron Smith, Co-Founder and CEO of NCIA. “Attendance exceeded expectations, and never have we hosted such an esteemed group of speakers and exhibitors on the leading edge of this booming sector.”
In keeping with our reputation for best-in-class content, we presented a comprehensive educational agenda, featuring two high-profile keynotes. On Thursday, December 16, the General Session opened with NCIA’s update from Washington, D.C. Thereafter, San Francisco Mayor London Breed delivered an inspiring welcome address.
“I’d like to thank NCIA for welcoming me to the stage and for hosting their annual Summit here in San Francisco,” said Mayor Breed. “Their events help advance our industry in a myriad of ways across social equity, policy, and other important issues, while helping connect industry leaders from across the globe.”
Thursday’s keynote showcased Troy Datcher, CEO of The Parent Company in a candid fireside chat with MARY Magazine founder Adrian Farquharson, covering his work to make an impact in the cannabis industry. Our second keynote on Friday, December 17, gathered professional athletes Calvin Johnson, Jr., Rachael Rapinoe, Anna Symonds, and Marvin Washington, for an engaging conversation surrounding the headline-making intersection of cannabis and sports.
“High school athletes are 50 percent more likely to abuse and misuse opioids,” said Rachael Rapinoe, former professional soccer player and Co-Founder and Chief Executive Officer of Mendi. “We need to discuss this massive issue and look to cannabis and hemp as alternatives. My hope [is to] spark those conversations across the industry and help these high school or collegiate athletes, who are just so susceptible to opioid abuse, to look to this space for solutions.”
Last, but certainly not least, we must also emphasize the quality content featuring 100+ NCIA members and supporters who facilitated educational breakouts covering an array of issues facing the cannabis industry, the anticipated CannaVest West Investment Forum, as well as the International Cannabis Bar Association (INCBA) Program, which completed our exclusive content line-up.
This event also marked the debut of BLOOM: A Brands Experience, showcasing an exciting new pavilion in which attendees were able to see, touch and smell cannabis products for the very first time at our signature event. This, in addition to hundreds of exhibitors from the entire cannabis ecosystem, allowed attendees to explore the latest technology, products, and services from seed to sale.
In closing, NCIA is honored to have hosted an event that encouraged exploration and provided valuable education while facilitating the growth of cannabis businesses across the country in the coming year. Please save the date for our 8th Annual Cannabis Business Summit & Expo, July 20-22, 2022, at the Moscone Center in San Francisco. We’ll see you again soon!
Equity Member Spotlight: Raina Jackson – Purple Raina Infused Self Care
NCIA’s editorial department continues the Member Spotlight series by highlighting our Social Equity Scholarship Recipients as part of our Diversity, Equity, and Inclusion Program. Participants are gaining first-hand access to regulators in key markets to get insight on the industry, tips for raising capital, and advice on how to access and utilize data to ensure success in their businesses, along with all the other benefits available to NCIA members.
Tell us a bit about you, your background, and why you launched your company.
I am an Oakland-based hemp CBD & cannabis brand strategist, product developer/educator, and cannabis industry advocate who recently became a member of the NCIA DEI Committee.
I am a Black “urban hippie” born and raised in San Francisco’s Haight Ashbury neighborhood who earned a B.A. with honors from Stanford University in cultural anthropology and sociolinguistics as a first-generation graduate and an MBA from the NYU Stern School of Business.
A product junkie with over 15 years of experience in sales/marketing management, personal care product development, and education. I have worked in the cannabis industry in sales management, distribution, and field marketing since 2015 and have been a Verified San Francisco Cannabis Equity Applicant seeking a cannabis business permit and license since 2018.
PURPLE RAINA Self Care is the culmination of my personal and professional passion for self-care products, the color Purple, and the artist Prince. Prior to entering the cannabis industry, I worked for top NYC beauty/personal care companies Maybelline and L’Oréal Professional, trained at the Vidal Sassoon school in London, and taught cosmetology at The Aveda Institute in SOHO NYC.
Upon returning to the San Francisco Bay Area in 2013, I became enamored with cannabis dispensaries and the local cannabis culture. While waiting for my permit, I decided to offer a hemp CBD version of PURPLE RAINA to show proof of concept, gain market feedback, and to promote the benefits of hemp CBD to a broader audience. The THC:CBD version will be launched in mid 2022.
What unique value does your company offer to the cannabis industry?
PURPLE RAINA Self Care offers topical infusions that soothe sore muscles and joints, nourish the skin from head to toe, and pamper the senses with aromatherapy. PURPLE RAINA Self Care promotes “mindful self-care and grooming” and seeks to appeal to our collective humanity focusing on our common need for daily grooming and self-care on a physical, mental, and spiritual level.
PURPLE RAINA offers a fresh approach to the category through multi-purpose infused topicals that will serve a range of self-care and grooming needs from head to toe, regardless of gender. Most topical products addressing pain relief overlook daily skin/hair care, personal grooming, and aromatherapy. Many have unpleasant odors and can be irritating to sensitive skin. I created PURPLE RAINA for people like me seeking to moisturize dry/sensitive skin and to soothe sore muscles with aromatherapeutic plant-powered products free of allergens and artificial ingredients.
PURPLE RAINA will eventually employ people from the community. I plan to recruit a “Purple Posse” of brand ambassadors who will conduct impactful in-store product demonstrations for consumers and retail staff. The “Purple Posse” will earn income and gain valuable sales presentation skills training.
What are some lessons learned from the beauty industry that you brought into your cannabis business?
My career has more recently reached the intersection of beauty/personal care and cannabis products. I recently learned that some of the largest cosmetic/personal care companies in the world are now incubating emerging brands instead of regarding them as competition to be squashed or absorbed. Some are being groomed for future acquisition but not always anymore. It’s a more mutually beneficial business relationship.
These beauty behemoths realize the importance of an ecosystem of high-end products, mid-priced and value brands, mature institutional brands, and young indie/niche brands readily available online and in stores. It best serves the customer when they have multiple quality choices at a range of price points. These companies are also assuming their corporate responsibility to the industry and society. They are abstaining from unfair competitive tactics aimed at eliminating competition from emerging brands.
What is your goal for the greater good of cannabis?
The cannabis plant, as a metaphysical healing force, deserves to be represented by an equitable accountable industry under a new breed of conscious compassionate capitalism valuing Profit & People / People & Profit like Yin & Yang.
During the 2021 Meadowlands conference/retreat at Camp Navarro, CA, surrounded by majestic redwood trees, I imagined the notion of a relationship between big trees and little trees as an analogy for cultivating an equitable cannabis ecosystem where little trees can still thrive to grow among the big trees, some eventually becoming big trees themselves. Imagine if big trees could share the nutrients in their roots with neighboring little trees, as a metaphor for how corporate financial, technical, and educational resources could be redirected to help benefit emerging equity and legacy businesses. This doesn’t exist in nature but imagine the social and financial impact it would have on so many who have been systematically excluded and discriminated against, as well as on those who contribute these resources.
What kind of challenges do you face in the industry and what solutions would you like to see?
Challenges: I face financial challenges like so many other cannabis entrepreneurs. Yet this is compounded as a Black woman, a member of an underestimated undervalued group that is underrepresented as cannabis business executives and owners. We receive the lowest amount of investment funds across industries due to racism and sexism, though we are the fastest-growing group of business owners in the U.S. and tend to be successfully bootstrapped and financially savvy.
Additionally, there is a big disconnect in current equity programs between the criteria to qualify and the financial resources and business acumen necessary to succeed if you don’t have access to investors and sound cannabis business and legal advisors. Late in the game, I was even told that I didn’t need a cannabis license to make my products and can just hire a manufacturer to produce them under their license. This is a viable option initially to go to market but not long-term. I would have wasted significant time and money and missed the whole point if I abandoned the pursuit of my own license. Also, as a brand of customized topical formulations manufactured by contract manufacturers, my rare business model tends to be overlooked by local and state cannabis regulations. For example, it took a few years and forfeited application fees for the type 13 transport only/self-distribution license I now seek to be introduced, representing the only feasible path to licensure and the only way I could go to market, other than the type-S shared license which doesn’t work for me.
Solutions: As part of a corporate responsibility mandate, successful profitable cannabis businesses along the supply chain, MSOs, and future alcohol and tobacco corporations entering the industry should make contributions into a Cannabis Equity/Legacy Fund collected by state licensing agencies and administered by an industry non-profit like the NCIA or a group of B-corps operating in the highest integrity. These big trees would contribute financial resources and access to key technical services as part of their platinum “industry membership fees,” a standard cost of doing business. In the same way their license fees are proportionate to projected revenue, their contributions into the fund would be proportionate to recent and projected revenue.
Our allies are instrumental in helping those who are resistant or just don’t know what to do to recognize their responsibility to use their privilege for the greater good, ultimately benefiting all parties’ bottom lines and corporate morale. There’s no need for guilt or blame, just empathy, goodwill, good works, and collaboration to help undo historic wrongs over time.
I want to see U.S. cannabis legalization soon with equity and anti-monopoly policies already in place. The cannabis industry should under no circumstances become fully dominated by oligarchies/monopolies like the early telephone and utility companies that had to be split up or even the current social media and tech giants under scrutiny. This policy should demonstrate recognition of the value DEI and BIPOC partners bring to the cannabis industry along the entire supply chain. Government solutions would include SBA grants and forgivable PPP-like loans like any other industry receives.
Why did you join NCIA? What’s the best or most important part about being a member through the Social Equity Scholarship Program?
I always wanted to join the NCIA since I attended an annual conference years ago but couldn’t afford it. The best part of being a member through the Social Equity Scholarship Program is the weekly Zoom call held by Mike Lomuto for equity cannabis entrepreneurs and allies nationwide. We check in to discuss our triumphs and challenges and share valuable business insights and ideas for building a more equitable cannabis industry. These calls inspired me to apply for the DEIC and to intensify my cannabis equity advocacy and thought leadership.
Video: NCIA Today – January 13, 2022
NCIA Deputy Director of Communications Bethany Moore checks in with what’s going on across the country with the National Cannabis Industry Association’s membership, board, allies, and staff. Join us every other Thursday on Facebook for NCIA Today Live.
2022: A New Year In Cannabis – What To Watch
Photo By CannabisCamera.com
by Michelle Rutter Friberg, Deputy Director of Government Relations
With the start of 2022 also comes the final year of the 117th Congress. Last year was marked with some small victories, although meaningful cannabis reform has yet to be enacted on the federal level this session. While it’s a midterm election year, I have no doubt that we’ll see some significant movement over the coming months. Keep reading to see my answers to some of your FAQ’s for the new Congress:
What’s going on with the SAFE Banking Act?
You’ll remember that during the 116th Congress, the SAFE Banking Act became the first cannabis-related bill to be passed by a chamber of Congress. It also became the first piece of cannabis legislation to pass the 117th Congress in April of 2021 by a vote of 321-101. Since last spring, the bill has languished in the Senate due to disagreement over enacting comprehensive versus incremental reform.
This year, expect pressure on the passage of SAFE to increase. While efforts to enact comprehensive reform continues, the votes are simply not there as of now. If you’re interested in learning more about this conundrum, take a look at this piece that the Brookings Institute recently posted.
NCIA is continuing to build support for the SAFE Banking Act in the Senate, but some big news was announced this week that will certainly impact the legislation in the future: longtime champion and lead sponsor, Rep. Ed Perlmutter (D-CO), just announced that he will not be running for re-election next session.
What’s next for comprehensive cannabis reform? Is legalization on the horizon?
There are numerous bills that have received much attention in terms of descheduling cannabis – among them the MORE Act (H.R. 3617), the States Reform Act (H.R. 5977), and the discussion draft (not formally introduced) of the Cannabis Administration and Opportunity Act (CAOA).
Back in the 116th Congress, the Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act became the first piece of comprehensive legislation to pass the House of Representatives by a vote of 228-164. More recently, the MORE Act passed out of the House Judiciary Committee in September 2021 by a vote of 26-15. While this is certainly news to be celebrated, the bill has been referred to another eight committees of jurisdiction and faces a more conservative chamber overall than last session for full passage.
The States Reform Act is a newer piece of legislation that was introduced in the House by freshman Congresswoman Nancy Mace (R-SC). The bill deschedules cannabis, regulates it through ATF/TTB for cannabis products and FDA for medical use, and institutes a 3% federal excise tax on products to fund law enforcement, small business, and veterans mental health initiatives. Many have lauded the pro-business elements of the bill, however, additional provisions must be added to address equity and restorative justice. It’s unlikely that the bill will move this Congress for partisan reasons – particularly during an election year.
As for the Senate-led CAOA – there are too many unknown elements to make any real predictions! Senate Majority Leader Schumer (D-NY), Finance Committee Chairman Wyden (D-OR), and Sen. Cory Booker (D-NJ) outlined their plans for the CAOA in February 2021, unveiled the text in July 2021, with comments due by September 1 (make sure you check out NCIA’s response!). Due to the sheer magnitude of input received, the never-ending pandemic, and other legislative priorities, official language still has not yet been introduced. NCIA continues to work with the sponsoring offices on the CAOA and anticipates introduction in the spring.
What’s going to happen at the committee level?
If you’re following cannabis policy at the federal level, definitely keep your eyes on what’s happening in various congressional committees. Given that there were few cannabis-related hearings and markups in 2021, I’m hopeful that there will be more this year. I’ll specifically be keeping my eye on both chambers’ appropriations, financial services, tax, and judiciary committees.
Midterm elections will be here before we know it, but NCIA is continuing to keep the pressure on our elected officials to reform our outdated cannabis laws. Want to learn more about what’s possible? Make sure your company is an active member of NCIA and register for our next webinar, check out our podcast, and hop on over to NCIA Connect to chat with us and learn more about what we’re working on in D.C.!
NCIA’s DEI Program New Year Update
by Mike Lomuto, NCIA’s DEI Manager
We must not let federal legalization become the “War on Drugs 2.0.” Rather, it must be the foundation for the building of generational wealth.
The modern-day cannabis industry is the product of a century of prohibition and the war on drugs. With federal legalization fast approaching, it is up to us all to ensure that this industry does not become the “Drug War 2.0.”
At the National Cannabis Industry Association, we recognize the importance of impactful Diversity, Equity, and Inclusion initiatives.
At the core of our DEI Program is our Equity Scholarship Program (ESP). Launched in 2020, nearly 200 ESP members are enjoying the benefits of a complimentary first year of NCIA membership thanks to this program and its financial sponsors.
Equity Scholarship Program Features
Complimentary passes to all NCIA events
Live Social Equity Workshops at our national conferences
Weekly video conference calls
Facebook community
Catalyst Conversation Educational Webinars
Unique Opportunities for ESP Members to Leverage NCIA’s Platforms
Greater representation on NCIA panels and webinars
“Being part of the program has transformed our company. The mentorship we’ve received has been instrumental in our growth. Being part of NCIA provided opportunities for us to gain new business relationships, become committee members, and participate in webinars. It’s also been great meeting other social equity members and building a community together.” – Kay Villamin, Hush Chicago, NCIA’s State Regulations Committee
As a trade association, at the core of NCIA’s mission is to create industry-shaping policy advocacy. Our Diversity, Equity, and Inclusion Program is ensuring that diverse voices are properly integrated into that advocacy, including:
Launching NCIA’s Sustainability Collaboration, in collaboration with several dedicated NCIA Committee Leaders, with an emphasis on incorporating the DEI perspective, which is too often left out of the sustainability conversation
A new Health Equity project in development
Of course, Diversity, Equity, and Inclusion would be meaningless unless we see that greater representation plays out on our biggest stages and in our board rooms.
NCIA has one of the most diverse boards of directors in the industry, including members who joined NCIA through our Social Equity Scholarship Program
Increasingly diverse representation across the leadership of NCIA’s fourteen sector committees
Consistently inclusive representation on panels – live and virtual. The overwhelming sentiment at our recent Midwest Cannabis Conference in Detroit was that it was “the most diverse and inclusive conference” many speakers and attendees had ever experienced
“I’m a firm believer that the more you give, the more you get, and my experience at NCIA is proof of that. Becoming a scholarship member at NCIA as a woman and minority founder has been an incredible opportunity… Committee work has rewarded me with new perspectives, recognition, and invaluable relationships that have strengthened my business.” – Helen Gomez Andrews, Co-Founder & CEO, The High End; Committee Organizer, DEI Committee
“The Scholarship Program gave way more than we could ever ask for. As a veteran and minority-owned company, with a core focus on community impact through cannabis, we have been provided with important opportunities and resources. The program is holding the door open for others like us to enter into the industry. You will not regret being a part of the Social Equity Scholarship Program.” – Keyston Franklin, The Doobie Room; Vice Chair, Banking Committee
As we continue to build for the integrity of the industry and future generations, we are looking for partners to join us.
Equity Member Spotlight: Better Days Delivery Service
This month, NCIA’s editorial department continues the monthly Member Spotlight series by highlighting our Social Equity Scholarship Recipients as part of our Diversity, Equity, and Inclusion Program. Participants are gaining first-hand access to regulators in key markets to get insight on the industry, tips for raising capital, and advice on how to access and utilize data to ensure success in their businesses, along with all the other benefits available to NCIA members.
Tell us a bit about you, your background, and why you launched your company.
I grew up in Colorado Springs in a single-parent home, overcame poverty, violence, houselessness, and a felony for marijuana possession to get to the place that I am in today. I’ll never forget the immediately depressing feeling of knowing that I’d lost opportunities, let my mom, my family, and my community down when initially being charged with a felony for marijuana distribution. Thankfully my people reminded me that I am much more than this scarlet letter F represents. I did my time, paid my restitution, and kept on grinding. Now a father of two beautiful babies, their presence is a constant reminder that I can’t give up. Left out of the weed industry, I focused on community and education as a 5th grade teacher. I decided to leave the classroom to start this business because I wasn’t happy due to the politics and wasn’t feeling valued in my career. I have worked hard to break out of the cages/boxes that I was placed in. I have been turned down for housing, employment, and have had doors closed because of this felony but I keep the belief that when one door closes another opens and because of that I’m determined to succeed. The weed industry seems much more of a fit for me, I chose delivery because it was the easiest point of entry however I dream of one day being vertically integrated.
What unique value does your company offer to the cannabis industry?
Our company, Better Days Delivery Service, offers a community aspect that is sorely missing in the industry. In my opinion, most of the industry hasn’t done their due diligence to truly serve and build relationships with patients. We have partnered with the nurse network so that they are able to give true medical advice while we work on the discreet, quick, personable service that we have become known for. Safe, affordable, discreet service is mandatory, we offer luxury and frequent flyer convenience as well. By focusing on the customers that are often overlooked, I am confident that we can provide a service that will revolutionize all of the industry. We want to deliver weed with the personable service that existed before the industry existed, I want to remind people that it’s still possible. Who wouldn’t love a delivery company that reminds our customers that our worst days are behind us? “Better Days Are On The Way.”
What is your goal for the greater good of cannabis?
In the words of 2Pac, “better days got me thinkin’ ’bout better days!” My goal for the greater good of cannabis is to remind people of the healing aspects of the plant. I want to help free everyone that has been incarcerated or charged for anything to do with the plant. I want to contribute to scientific research that will help heal and help people live despite their ailments. I would love to see it totally decriminalized and if I am able to pay my bills and make it better for my family in the process even better!
What kind of challenges do you face in the industry and what solutions would you like to see?
Michael Diaz-Rivera
The biggest challenge that I have is a lack of capital both financially and socially. It is not cheap to get into the industry and I have been bootstrapping and using my savings thus far. Having access to all of the money that I would need to reach my dreams and create generational wealth would be perfect. I’ve also noticed that in this industry, it pays to know people as a social equity licensee. I feel like the majority of the industry looks at us as if we’re begging for scraps. Because of that, I’ve worked to build relationships with powerful people who have a true commitment to equity and support for those who have less.
I’ve also begun the steps to make my business a social enterprise. The true challenge in being a business that works for social good will be to find a balance between profit, sustainability, and social impact. I aim to do exactly that!
Why did you join NCIA? What’s the best or most important part about being a member of the Social Equity Scholarship Program?
It was important for me to build a network and NCIA is just the trade organization to help me do that. NCIA has been a platform that helps me get into the doors that I usually wouldn’t be able to access. I am able to ask important questions about the development of my business to those with answers. The social equity program allows me to chat with those from similar upbringings while sharing the tools and resources to help us all succeed. The most valuable part has been the sounding board and emotional support that the group continues to provide.
As a nation, we have to be accountable for the “war on drugs” as everyone turns their eyes toward federal legalization. Without accounting for the harm that continues we’ll never get to the “better days” that the people deserve.
Video: NCIA Today – Friday, December 10, 2021
NCIA Deputy Director of Communications Bethany Moore checks in with what’s going on across the country with the National Cannabis Industry Association’s membership, board, allies, and staff. Join us every Friday here on Facebook for NCIA Today Live.
Member Blog: Compensation in the Wild West of Cannabis
by Fred Whittlesey, Founder, President, and Principal Consultant of Cannabis Compensation Consultants
Member of NCIA’s Human Resources Committee
At the NCIA Cannabis Business Summit & Expo next week, there will be a panel session titled Cultivating Your Workforce. As a member of the NCIA Human Resources Committee, I have been actively involved in putting this together, and as a compensation expert, I wanted to ensure there is going to be, of course, a lot of discussion about compensation – executive compensation, incentive compensation, and employee ownership.
It’s appropriate that this month’s #CannaBizSummit is being held in San Francisco, arguably the historical culmination of Wild West culture, with the Gold Rush as its driver. Not unlike today’s cannabis industry – a gold rush of sorts, by federal definition a lawless community, and a community culture of moving fast and defining as we go.
As a compensation expert, I typically prefer a more orderly and well-defined world, which is why I am fascinated with working in the field of compensation in the cannabis industry. It’s challenging because I am in the business of answering clients’ questions about compensation. It’s not always easy to do in cannabis.
There are three factors that explain where we are today in understanding and analyzing compensation levels and practices in cannabis, and three driving forces that will take us from today’s Wild West to tomorrow’s still innovative, still creative, but a bit more business-like approach to compensating employees in cannabis companies.
Today
No valid compensation surveys or databases exist for the cannabis industry. There are various publications that self-label as “surveys” but are merely data compilations missing the rigor of survey methods that have been established over the past decades:
Little or no definitions of jobs
Extremely wide ranges that defeat usability
Reports of cash compensation only, some with base salary only
Very small sample sizes, often not disclosed
No list of participating companies
In short, they’re not compensation surveys. Established survey companies have not entered the cannabis market due to legal and/or stigma factors. They will, eventually. But they’ll be late to the party, so to speak.
For now, we have no real market data. Except for some executive positions…
For executive positions and equity compensation plan design details, data from public company securities filings continues to be the most valid and reliable source
Securities and Exchange Commission EDGAR filings (U.S.)
System for Electronic Document Analysis and Retrieval (SEDAR) (Canada)
Despite currency, cultural, and governance differences, combining U.S. and Canadian data makes sense given the integrated labor market for talent. But it’s no easy task.
Unlike for publicly-traded companies in the U.S., executive compensation information for cannabis companies is difficult to obtain and interpret for multiple reasons:
Most companies are listed on Canadian exchanges
The Canadian disclosure requirements are less rigorous, such as:
Lack of a single table for all forms of executive pay
No dollar value required to be calculated for equity compensation grants
Limited disclosure of the history of equity compensation grants
Companies whose shares are traded in the U.S. are not on major exchanges and not subject to the extensive disclosure requirements of NYSE and Nasdaq companies. This is changing – as exemplified by last week’s listing of the SPAC Canna-Global Acquisition Corp (NASDAQ:CNGLU) on Nasdaq, but SPAC listings have a reduced set of disclosure requirements. (full disclosure: I am an investor in CNGLU.)
Most companies are of a size and status (e.g., Emerging Growth Company) that also have reduced pay disclosure requirements.
So, despite what is a rich source of executive and equity compensation data which we have relied on for decades now, these databases are not (yet) of the same usefulness as for other industries.
And even if we didn’t have those tactical issues… the characteristics of the cannabis industry exacerbate these difficulties:
Smaller companies and private companies
High-growth stage, resulting in the lag time in reporting rendering the information significantly out-of-date
High concentration of founders and insider ownership, which results in compensation levels and practices that are not free-market based – one CEO taking zero compensation and another in the 8 figures.
Top-heavy C-level position structures, e.g., an Executive Chair and a CEO and a President and a COO – too many chiefs
So, the question of how much this company pays its top executives… is an unanswerable question. I wonder if even the company could answer that question?
Tomorrow
The turbulence in executive compensation levels and practices will lessen, and our knowledge and understanding will improve, when three trends converge:
More public companies, including SPAC deals, and continued M&A activity, bring in more outside investors with expectations of corporate governance and practices consistent with other industries in which they are invested. This also will have the effect of lessening the influence of founders as more “professional” (hired external) Board members are added to the governance structure.
With more public companies will come more market data, as we have for most industries today both in the U.S. and Canada. While limited to the top 3 or top 5 executives in each company, these disclosures provide a factual and verifiable dataset for the most senior positions, for the use of equity compensation for employees, and for the breadth of executive compensation arrangements such as new hire packages, severance and change in control agreements, and various perquisites.
And of course, legalization. With the U.S. federal restrictions and the associated stigma removed, cannabis companies will become subject to the same governance, institutional investor and proxy advisor pressures, and the large consulting firms will push them toward the ISS/Glass Lewis “playbook” approach to advising. I’m not saying that’s a good thing, because it’s not, but we already see it happening in Canada where large multinational compensation firms are overlaying the boiler-plate ABCs.
It is my hope that the innovation and creativity we see in the cannabis sector today will not suffer from these three dynamics. There’s nothing wrong with living in the Wild West, if you’re comfortable with fewer rules, fewer constraints, and less transparency. But it helps when there is a Sheriff and a couple of Deputies in town.
This conversation is not limited to executive compensation. Equity compensation for all employees is a common aspiration in cannabis companies. Equity compensation plans are always complex to design, implement, and administer and are exponentially more so in cannabis companies. Complex organization structures with public entities, private companies, LLCs, and even nonprofits all bring talent from diverse industries with vastly ranging experience with and expectations for equity compensation.
A trimmer coming from agriculture or a Dispensary Manager from specialty retail has likely not received equity as a component of their compensation in the past.
A chemist coming out of biopharma or a software developer, if told there is no equity compensation plan for all employees at your company will be, at the least, disappointed if they even continue interviewing with you.
Similarly, a candidate from the financial services world may be surprised that every employee is not participating in one or more cash incentive plans, not just the sales reps. There is a LOT of work to be done on compensation planning in the cannabis industry, and I’m thrilled to be right in the middle of it.
Fred Whittlesey is the Founder, President, and Principal Consultant of Cannabis Compensation ConsultantsTM, a Compensation Venture Group SPC company.
Fred is a member of the NCIA Human Resources Committee and the NCIA Sustainability Committee.
Fred is recognized by corporations, professional organizations, universities, media, and colleagues around the world as a compensation expert and thought leader. His ideas have been presented in numerous book chapters, journal articles, media interviews, conference and seminar presentations, and hosted blog postings.
Fred’s thought leadership in the field of compensation is evidenced by his delivery of more than 300 conference presentations, seminars, certification courses, webinars and podcasts. He has presented and taught in 26 US States, 4 Canadian Provinces, UK, Ireland, France, Germany, Netherlands, Switzerland, Turkey, and Indonesia.
He has authored more than 50 peer-reviewed journal and magazine articles, book chapters, white papers, and sponsored papers. He has been a paid writer for PayScale.com, Salary.com, InvestorJunkie.com, and SeekingAlpha.
Fred has been interviewed and quoted more than 100 times by more than 35 different media sources including Associated Press, Bloomberg, Business Week, Fortune, New York Times, Los Angeles Times, Orange County Register, Seattle Times, San Jose Mercury News, and San Francisco Chronicle. He has been retained to conduct research to support investigative journalism for The Los AngelesTimes and The Boston Globe.
Cannabis Compensation ConsultantsTM is a division of Compensation Venture Group SPC, a Washington Social Purpose Corporation. The company is a Green America Certified Business.
The firm specializes in compensation strategy, executive and director compensation, equity-based compensation, incentive design, and employee pay with a focus on sectors driven by innovation. We also provide expert witness and litigation support for civil litigation and regulatory matters. Our clients include Boards of Directors and executive teams of public and private companies, LLCs, S corporations, and foreign subsidiaries.
Our Canadian sibling consulting firm is Conscious Compensation Group Inc. in Squamish, BC.
Member Blog: Cannabis Supply Chain Roadmap – Control What You Can, Plan For The Rest
by Gary Paulin, VP of Sales and Client Services at Lightning Labels
In a world where instant gratification has run headlong into supply chain snafus and delays, something has to give. In the cannabis industry, the keys to success are to control what you can and plan for what you can’t.
Being proactive, creative, and resourceful are the keys. Cannabis purveyors are facing shortages of products and packaging. Shipping challenges, both from suppliers and to consumers, also are in the mix. And, with consumer demand through the roof, competition for fewer supplies available in a timely manner has become superheated.
What can cannabis companies do to maximize customer satisfaction while minimizing stress levels at this critical time?
The short answer can be found in the Serenity Prayer, which states in part: “God, grant me the serenity to accept the things I cannot change, courage to change the things I can, and wisdom to know the difference.”
In short, take and keep control of what you can realistically control, do contingency planning for occurrences out of your control, and know the difference between the two. One example of how to keep control: Companies facing potential shortages in many cases can build up inventory of available products, including labels, containers, and the like. Extra costs involved in doing this can be substantial, but compared to not being able to fulfill orders and having to deal with consequences — including falling revenues and workplace stress — it can be a relatively small price to pay.
One example of how to do contingency planning: Cannabis companies not in direct control of manufacturing everything that goes into a product need to figure out workarounds. In some cases, this may include advising consumers of potential looming shortages. In others, finding substitute sources that can step in if needed may be well worth the time it takes to do the research.
Again, this may cost more, but at this critical time, cannabis companies need to compare that to the cost of not doing it.
Following are specific steps cannabis companies can take to stay on top of supply chain snafus:
Determine what suppliers are clearly able and willing to meet your needs. In the label world, for example, talk with your supplier to look at likely needs through at least the first quarter of 2022. Make this company your proactive partner to offer insights about the best strategies to ensure you’ll have what you need when you need it. In some cases, this is as easy as knowing they will carry adequate supplies and perform well because they think and work ahead. In others, work with the supplier to figure out options that can substitute for something that may be in short supply.
Ramp up customer service efforts. No matter how supply chain challenges are impacting your company, spend extra time and effort to keep your customers happy. Often, frustrated or demanding customers can be made happier with sincere, empathic customer service. In addition, where possible, be proactive with customers about what they’re willing to tolerate (e.g., longer turnaround in exchange for lower price). By assessing, then fully addressing, customer needs, you can achieve positive reviews and enhance reputation by showing your ability to tune into their needs. Be real and follow through on commitments. There’s almost nothing worse than promising performance, then not delivering. If you tell them you’re going to do something, including contacting them back, do it when you say you will.
Make shipping as predictable as possible. Both for incoming and outgoing, figure out what you can expect (e.g., transportation directly under your control), and where you’ll need to rely on third-party shipping. Do some research about shippers to identify emergent issues, talk to your regular shippers about what to expect/plan for, and find substitute solutions if needed. You may also have to factor in higher shipping costs, at least through the first quarter of 2022.
Research buying trends into near-to-mid-term planning. High consumer demand is here to stay, at least for a while. As best you can, figure out what the next few months are looking like, factoring in buying demand specific to cannabis as well as the bigger global picture. Between the pandemic roller coaster, economic volatility, political and social upheaval, and proliferation of severe weather destruction and disruption, there is much beyond the realm of cannabis that may impact buyer demand and the supply chain for months, if not years.
Build in breathing room where possible. Such options as subscribe-and-save and discounts for orders with longer lead times are two measures that can take pressure off cannabis companies to a certain extent. Following the lead of such companies as Amazon, provide incentives for discounts when customers select longer lead times or commit to a regular ordering pattern.
Gary Paulin is VP of Sales and Client Servicesat Lightning Labels, a Denver-based custom label printer that uses state-of-the-art printing technology to provide affordable, full-color custom labelsand custom stickers of all shapes and sizes. Contact: sales@lightninglabels.com; 800.544.6323 or 303.481.2304.
Video: NCIA Today – Friday, December 3, 2021
NCIA Deputy Director of Communications Bethany Moore checks in with what’s going on across the country with the National Cannabis Industry Association’s membership, board, allies, and staff. Join us every Friday here on Facebook for NCIA Today Live.
Member Blog: Stickier Products Need Thicker Gloves, Right?
“My gloves keep ripping” is a common frustration we hear from cannabis businesses, especially growers and processors. If your gloves are ripping just buy thicker gloves, right? Maybe. It is a common misperception that thicker gloves are stronger, but this is not always the case. Here are four factors about glove thickness to understand that will help solve this chronic glove problem.
4 Things to consider before buying a thicker glove
Thicker does not mean stronger – A glove’s strength is directly related to the quality of materials used to make it. Period. A glove’s raw material ingredients account for 45% of the production cost. Gloves can have fillers, like carbon black, silica and chalk, added to manufacture them cheaper. Chalk doesn’t stretch. When fillers are added to reduce production costs, the glove’s durability and elasticity will reduce as well.
In one minute, this video shows how to estimate the quality of your nitrile gloves. When buying disposable gloves, always remember, a gloves’ strength is directly proportional to the quality of ingredients used to make it.
Musculoskeletal issues – Low-quality, thicker gloves have less elasticity which in turn makes workers’ hands use stronger muscle force, increasing the chance of injury. For example, a worker’s hand could have unnecessary force put on it with every hand movement they make while bucking or trimming the plant. A disposable glove needs to be of a high enough quality to perform the task and protect the product and the wearer, but excessive thickness can create additional issues. A better-made glove can be thinner while outperforming cheaper, thicker gloves.
Worker efficiency – Despite its thickness, a glove made with lower quality ingredients will rip more frequently. When your staff is constantly having to stop working to change failed gloves, productivity decreases. When workers are busy changing failed gloves they are no longer planting, growing, harvesting, trimming, or curing. Gloves that perform will increase overall productivity and efficiency, not to mention worker satisfaction.
Increased waste – Another possibly less considered consequence of buying thicker gloves is the environmental impact. Glove thickness directly correlates with the amount of waste, disposal costs, and environmental impact generated. A thicker glove equates to more material per glove being disposed of. A glove made of cheap ingredients that fails more frequently will also negatively affect a businesses’ sustainability efforts by increasing the overall quantity of gloves used. Generating more waste will in turn increase disposal costs and the amount of waste that ultimately is put into landfills.
Cannabis plants can be prickly, sticky, and sometimes relatively tough on disposable gloves. A better glove is needed. A better glove, not necessarily a thicker glove. Additionally, different stages in producing cannabis products, from growing to harvesting to processing to tinctures to edibles, can require different gloves. A single glove most likely will not live up to the performance and safety requirements at the various stages. The best way to know you’re buying a quality glove is to purchase from reputable suppliers with specific and ongoing quality control procedures in place. This ensures glove quality, performance and protection, all of which directly mitigate risk to your product and business.
Trustworthy and knowledgeable glove suppliers will be able to help arrange glove trials through which you will be able to determine the best glove to use for every task. Purchasing too heavy of a glove for a task increases costs unnecessarily. Investing the time into ensuring you are sourcing the correct gloves will protect your product, workers and budget.
Disposable gloves are not indestructible. Some tasks, like harvesting and trimming, do require a thicker glove even when they are made of the highest quality. But simply put, a thicker glove spec is not always the answer to a sticky situation.
Eagle Protect, the world’s only glove and PPE supplier to be a Certified B Corporation®. Eagle Protect supplies disposable gloves and protective clothing to the food processing, food service, cannabis, medical and dentistry sectors in both the U.S. and New Zealand.
Eagle is implementing Delta Zero, a proprietary third-party glove analysis program to ensure a range of their gloves are of consistent high-quality, and free from harmful contaminants, toxins and pathogens. The Delta Zero program mitigates the risk of product contamination and recall due to the unknown use of dirty gloves.
After establishing Eagle Protect as an industry leader in New Zealand, where the company supplies approximately 80% of the primary food processing industry, Steve Ardagh relocated with his family to the U.S. in January 2016 and launched Eagle Protect PBC. Steve brought with him Eagle’s values of providing products that are certified food safe, ethically sourced and environmentally better. Steve is driven to keep consumers safe, one high-quality disposable glove at a time, and has been instrumental in developing Eagle’s proprietary third-party Delta Zero program glove testing program.
Member Blog: Business SMS Basics for Cannabis
by Matt Hostacky, Regional Sales Manager, Flex IP Solutions/Cannabiz Text
Text messaging is the next wave of communication to customers. 98% of all texts get received. 92% are read within 5 minutes. And 45% receive a response, and if you think that your customers want to engage their favorite businesses this way, you’d be correct. 85% of people polled want text message marketing from their favorite companies.
But how do you get started? How does it work? Are there technology requirements? Etc. Here are some of the common questions we get to help you navigate this great communication tool for your business.
What are the technology requirements? An internet connection and a computer with a web browser are all that is required for most systems.
We’re not tech-savvy, is the SMS system difficult to use or learn?No, most systems are very user friendly and intuitive. Most systems work through your web browser and can be set up and used in minutes with little more than a user guide.
Can I use my existing business phone number? Yes, most platforms support text enabling your 10 digit business number. This helps people recognize who the text is coming from and build brand awareness.
What are some of the common features of an SMS system? Series (drip campaigns), Surveys (polls), Time-Texts (schedule now, send later), Contact Segments (Tags or Identifiers), Compliance tools, Reports, and Keywords (Text “Vegas” for a chance to win a trip to Vegas). Above and beyond these key features you may want to consider having 2-way chat and/or automations capabilities for your business to help answer any questions your patrons may have.
Who can I market to? Existing customers or those that have “opted-in” in some way to receive your promotions and communications. You may have new prospects or customers text a keyword to get opted in for example. However, if you acquire a list of telephone numbers for outbound communications they are considered SPAM under the TCPA and CAN-SPAM acts and you should not message these numbers.
Do I need to stay compliant?And how? Yes. Most systems (or at least the good ones) have some form of compliance automation and tracking to help keep you covered. At a bare minimum you need to have a “please reply stop to opt-out” message in each outbound marketing message.
What are the costs associated with an SMS marketing system? This is probably the hardest thing to compare apples to apples. Typically, an SMS system is a monthly charge either per text or as a package of texts. Some systems lockdown certain features and charge extra for them a’ la carte. Other systems are part of a CRM or POS system and either charge per text or a fee to unlock that feature.
What should my business have in advance of getting started with an SMS system?
1) Make sure you’re collecting phone numbers from your customers today.
2) Have a marketing disclosure statement that customers sign either electronically or physically so you are legally allowed to market to them.
3) Have said customers and phone numbers in or able to be exported to an excel or .csv file so you can upload them as contacts.
4) Have a plan. Don’t just set up a system and start sending texts. Understand why you want to text, how you will text your customers, and what you will be texting your customers.
Compliance
So why is compliance so important? We’ve all received annoying texts we didn’t ask for letting us know we’ve won a cruise or there is a sale on cheap erectile function pills. The FCC and Mobile carriers are already working to put more measures in place to mitigate the number of robo-texts and SPAM that is being sent. This is called 10DLC Campaign Registry. 10DLC Campaign Registry is too much to cover in this blog but you can find out more here 10DLC Campaign Registry.
If you’re soliciting anything to your existing customer base you must have consent, see the TCPA and CAN-SPAM acts. The best practice for this is what is called a “double opt-in”. A double opt-in is having the customers’ consent twice. The first form of consent is typically in some marketing waiver that is signed or checked during the buying process, it’s no different than getting consent to call or email promotions. The second opt-in is during the texting process. Typically, the first text received will have a message that asks the customer to reply “YES” to continue to receive texts. You usually see this with keywords that ask the person to text a word to a specific number, when that happens an automated message will then ask the person to reply with “YES” to continue to receive messages.
Another form of compliance is opting out. You must always have a “please reply “STOP” to stop receiving texts…” message in your messages. The first question you should ask about any SMS/texting solution is if this is built into it, meaning if someone replies back with STOP at any time, does it remove them from your marketing list even if you don’t have the wording in the text? If the answer is no, it’s not a system you want to use. Once again the TCPA and CAN-SPAM acts mandate that you give the consumer a way to opt-out of receiving messages from your business. And you’ll want a system that captures and can report on this as well.
Something to understand is that certain things are still illegal to promote via text, i.e cannabis. Mobile carriers (the companies that transport the SMS messages) like ATT, TMobile, and Verizon have filters that are looking for hot button or trigger words. So words like cannabis, marijuana, weed, edibles, and ganja are going to get flagged. This doesn’t mean that you can’t still use text message platforms. It just means that instead being obvious about what you text out you become a little more vague. Your customers will still know there is a sale on edibles if you say something like “2 for $20 on ABC brand yummy treats this week”.
Compliance doesn’t have to be all doom and gloom. Make it fun. The most successful businesses do an initial promotion or giveaway to get folks to opt-in to their text marketing. Another great tip is to put your business’ name at the front of the text with a colon so everyone knows who the text is coming from. i.e. ACME: Acme widgets on sale this week 20% off! Remember your customers want to hear from you, they want to stay informed of any new products or promotions… that’s why they’re your customers. They just don’t want to be bombarded with SPAM on their personal devices at all hours. So be courteous and make sure the number of text promotions is not too much and are being delivered at appropriate times.
Additional Use Cases
By now most folks are aware of the two most prominent use cases for business texting, 1) marketing and 2) appointment reminders. But there is a wide world of other use cases for texting that you may not have even thought about. And these use cases can help separate your business from others by delivering a “wow” customer experience.
Customer Service
Instead of phone calls, why not answer questions about your product or service using texts? The advantages of using text for customer service are:
Customers don’t have to wait on hold for the next agent
There is always a record for that customer to refer to
Your employees can handle multiple chats at one time unlike voice calls
You can automate answers to the most frequently asked questions.
Sales
Yes, this is different from marketing because marketing is one-way. With two-way texting you can interact with your customers the same as you would in-person or via a phone. Your sales force can provide the presales support that your customers expect but with the convenience of a text or picture message.
Delivery Notices
If you’re in the business of deliveries or in-home service these are a must for a great customer experience. Send pictures of your delivery driver in advance. Let your customers know when their package will be or has been delivered.
Alerts
During the COVID-19 lockdown, almost every business’ processes changed. Masks needed to be worn, social distancing observed, and a lot of businesses went to calling or texting when a customer or patient could be seen. The businesses that had an SMS platform ready to go didn’t miss a beat. There were signs like “Text our main number to let us know you’ve arrived” for things like veterinarian offices, healthcare, retail stores, and restaurants.
Business SMS is still relatively new, but the use cases continue to grow. Communication has moved to a person’s mobile device now and we don’t check or pay attention to email like we used to. People expect real-time alerts and notifications on their phones. Leveraging business SMS in multiple ways can provide a memorable customer experience to your patrons which will, in turn, create repeat customers.
Matt Hostacky, Regional Sales Manager, Flex IP Solutions/Cannabiz Text
Matt Hostacky, an IT and telecommunications industry veteran, takes a consultative approach to solve real-world business challenges with technology solutions. He serves as Regional Sales Manager for FlexIP Solutions Inc., a provider of managed communications services customized for businesses of all sizes and optimized for best value and performance. Hostacky advises customers on communications and collaboration strategies that leverage solutions, such as Cloud PBX, Unified Communications as a Service, Contact Center as a Service, Collaboration as a Service, SIP Trunking, Secure SD-WAN, Business Continuity and Disaster Recovery, and Business Text Messaging.
Immerse Your Business at #CannaBizSummit
by Madeline Grant, NCIA’s Government Relations Manager
The National Cannabis Industry Association (NCIA) will be holding its 7th Annual Cannabis Business Summit & Expo next month in San Francisco, California. From December 15-17, don’t miss the opportunity to network, engage with hundreds of exhibitors from the cannabis ecosystem, and immerse yourself in educational content. Also, you can discover the industry’s most exciting brands and next year’s best-sellers at the all-new BLOOM: A Brand Experience, debuting at #CannaBizSummit. For the first time at the nation’s most influential cannabis industry event, attendees will have the opportunity to see, touch, and smell products from dozens of brands specializing in flower, pre-roll, vapor, edibles, and more.
Are you a member of NCIA? Then use your benefits!
Depending on the tier of membership, don’t miss the opportunity to use your discounts and complimentary tickets for #CannaBizSummit.
Seeding members receive $100 discount on admission to NCIA trade shows
Blooming members receive five complimentary tickets to NCIA trade shows
Evergreen members receive ten complimentary tickets to NCIA trade shows
What educational content will be available?
Rest assured that there will be no shortage of educational content from speakers around the country. As the cannabis industry is ever-evolving, it is important to keep engaged and educated. This year, your ticket gives you access to all panel discussions and keynote sessions. You’ll get to join discussions on a range of subjects spanning cultivation, business services, licensing, compliance, retail, distribution, advocacy, and much more. Here are a few of the panel topics to check out:
Pathways to Federal Legalization: An Update from D.C.
Harmonizing Federal and State Cannabis Policy
Transparency, Values, Authenticity: The Principles for Successful Leadership
Wellness in Action: Elite Athletes as Cannabis Advocates
Founded in 2010, NCIA is the oldest, largest, and most effective trade association representing legal cannabis businesses. Through education and networking, you’ll discover new insights that help and grow your business all while meeting hundreds of industry professionals from around the country. With representation of all cannabis sectors and all business sizes, there is opportunity for attendees to gain invaluable knowledge.
Are you an NCIA member or interested in getting your business more involved?
Along with our annual trade shows, NCIA offers a wide range of membership benefits to help businesses become stronger, smarter, and more prosperous by working together to defend and expand the responsible cannabis industry.
I encourage you to meet with one of the NCIA staff in San Francisco to discuss how to fully utilize your benefits as a member. Membership with NCIA offers opportunities in marketing, business resources, policy, advocacy, networking, and education. Additionally, your support as members continues to propel our mission to promote the growth of a responsible, sustainable, and inclusive cannabis industry and work for a favorable social, economic, and regulatory environment. Please email Madeline@thecannabisindustry.org to set up a time to chat.
Are you interested in getting more involved in policy and advocacy work?
NCIA’s priority is to defend and advance the interests of the responsible cannabis industry in our nation’s capital. Central to our mission is the belief that our members should be treated fairly under federal law and that the cannabis industry much like any other legitimate business sector in this country. NCIA launched the Evergreen Roundtable for leading businesses looking to make a meaningful investment in shaping policy for the cannabis industry. Evergreen Member companies receive exclusive access to private briefings from members of Congress, inside information from NCIA’s government relations team, and many more opportunities to participate in the national conversation around cannabis policy. If your company is interested in supporting at this level please fill out the form HERE to set up a meeting with our Government Relations team.
Let’s Recap…
If you are an NCIA member, make sure you utilize your membership benefits. Find a refresh of your benefits HERE.
If you are not yet a member of NCIA and are interested in learning more please send an email to madeline@thecannabisindustry.org.
Don’t miss out on the opportunity to immerse your business and employees at #CannaBizSummit.
There is a lot of work to be done to ensure a value-driven, responsible cannabis industry and NCIA appreciates your support.
Video: NCIA Today – Friday, November 19, 2021
NCIA Deputy Director of Communications Bethany Moore checks in with what’s going on across the country with the National Cannabis Industry Association’s membership, board, allies, and staff. Join us every Friday on Facebook for NCIA Today Live.
Thoughtful Legislation: States Reform Act Introduced
Photo By CannabisCamera.com
By Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
Recent polling from Gallup showed that an astonishing 68% of Americans believe that cannabis should be legal. And while support spans age groups and party lines, cannabis is usually thought of as an issue Democrats champion – but one woman is looking to change that.
This week, freshman GOP Congresswoman Nancy Mace (SC) officially threw her hat in the cannabis reform ring with the introduction of the States Reform Act. Notably, this is the second comprehensive cannabis bill introduced by a Republican member of Congress (the other was sponsored by Rep. Dave Joyce, one of the co-chairs of the Cannabis Caucus).
According to Rep. Mace’s office, here are some of the things the bill does:
Ensures that no state or local government will be forced to change its current cannabis policies by removing cannabis from Schedule I and deferring to states.
Regulates cannabis federally like alcohol under USDA for growers, ATF/TTB for cannabis products, and FDA for medical use.
Institutes a low 3% federal excise tax on cannabis products to fund law enforcement, small business, and veterans mental health initiatives.
Ensures the safe harbor of state medical cannabis programs and patient access while allowing for new medical research and products to be developed.
Outlines the federal release and expungement for those convicted of nonviolent, cannabis-only related offenses. This will not include cartel members, agents of cartel gangs or those convicted of driving under the influence (DUI). Mace’s office estimates that approximately 2,600 releases will be expected at the federal level. State level releases and expungements will be left to each state to determine.
Protects military veterans by ensuring they will not be discriminated against in federal hiring for cannabis use or lose their VA healthcare benefits.
Protects children and young adults under the age of 21 from cannabis products and advertising nationwide. Incentivizes states to make cannabis illegal for anyone under the age of 21, with a medical exception for prescribed use. Provides funding to the Substance Abuse and Mental Health Services Administration to ensure protections for minors are being considered.
Protects medical cannabis for the following uses: arthritis, cancer, chronic pain, sickle cell, HIV/AIDS, PTSD and other medical uses per a state’s specific cannabis regulations.
NCIA applauds Rep. Mace for introducing this new and carefully thought out piece of legislation. There are many provisions in the bill that we support: low tax rates and barriers to entry, allowing states to lead – but also many areas with room for improvement like those pertaining to criminal justice and trade. NCIA will continue to work with Rep. Mace’s office to improve this bill and attempt to find common ground across political parties in order to advance cannabis policy reforms.
Member Blog: How Can Hemp Businesses Better Self-Regulate?
The hemp industry is still in its early stages, especially when it comes to emerging products like delta-8 THC. While there is some regulation for hemp products, it’s much less than for legal cannabis, and this gives companies some freedom in terms of how they operate and what they do. For the most part, this is a good thing, but there is a downside too. Our report into the industry found that 76% of delta-8 THC products contained illegal quantities of delta-9 THC. This is terrible for consumers, but it also poses a risk to the industry: if you keep raising red flags, the government will eventually swoop in and take action. This is why self-regulation is a crucial concept for hemp businesses going forward.
Why Self-Regulate?
Self-regulation is crucial for hemp businesses because of the scrutiny the industry faces and to improve consumer confidence. Although CBD is generally accepted, this is especially important for companies selling something like delta-8 THC, which attracts more scrutiny because of its psychoactive nature. With states like Texas attempting bans on the substance and the findings of our report showing that the vast majority of products break legal limits for delta-9, the industry is in serious danger of attracting the attention of more lawmakers who may opt for an outright ban. In fact, there are already 18 states with some form of ban or restriction on the substance.
Jayneil Kamdar, PhD from InfiniteCAL Labs commented to us that: “The current delta-8 THC products on the market are very concerning because there is no regulatory body monitoring the safety of these products.”
In our report, we also found that companies tend to undercut customers on delta-8, that only 14% of companies perform substantial age verification checks and that two-thirds of companies don’t test their products for impurities.
It isn’t that self-regulation would be a cure-all, but if companies opt to act responsibly, it is much less likely that they will attract attention from lawmakers. In addition to this, though, self-regulation sends a strong message to consumers that you care about them and that they will get what they wanted when they buy your products. When this doesn’t happen,people will tell others about it.
The more the industry can mirror the regulations of regulated cannabis companies, the better things will go in the long run.
How Can Companies Better Self-Regulate?
However, “self-regulation” can’t just become a vague, catch-all term for generally responsible business practices: clear recommendations are essential in making this goal a reality. Luckily, our in-depth investigation of the delta-8 industry and other similar investigations into the CBD industry have revealed some key areas companies can focus on.
Provide Transparent Lab Reports with QR Codes
Lab reports are a vital part of building consumer trust, and you should ensure there is a QR code on the report so it’s easy for consumers to verify the report on the lab’s website.90% of CBD companies already do this, based on our industry analysis.
Offer a Lab Report for Every SKU
Many companies, however, only offer a COA for the base distillate, rather than every specific type of product it produces. If you sell vape cartridges, for instance, you should have a report available for each variation in flavor, strain, and potency.
Choose Credible Labs for Your Report
Not all labs are equal. If you get a report from a questionable or unknown lab, savvy consumers will still be wary of your product, and in some cases, the results may be unreliable. It’s best to choose a lab with a strong reputation, such as ProVerde, Anresco, SC Labs, InfiniteCAL, and CannaSafe.
Test for Impurities
With two-thirds of delta-8 companies not lab testing their products for impurities, this is a good way to stand out in the marketplace as well as good practice in general.
Verify Customer’s Ages
With most CBD companies not performing robust age verification checks, using a credible age verification system such asAgeChecker is a great step towards self-regulation. They stay up to date with FDA requirements, state laws, and merchant account policies, so you can set it up and then continue basically as normal. This is especially important for delta-8, but it’s also crucial for higher-strength CBD products too.
Label Your Products Accurately
What you claim on the label should be what’s in the product. Lab reports help you verify that this is the case.
Warning and Caution Labels
Only about 55% of hemp delta-8 companies use a warning label, but this is another key part of self-regulation. Suggested verbiage includes:
This product should be used with caution when driving motor vehicles or operating heavy machinery.
Use this product under the guidance of a physician if you have a medical condition, are pregnant or lactating.
Keep out of the reach of children.
This product was manufactured from hemp material that meets federal requirements for hemp products; however, consumption may be flagged by some drug tests.
This goes hand-in-hand with the above, but also, having your products that looklike a bag of Cheetos or anything along these lines is not a good look.
Avoid Medical Claims
Although many people opt to use delta-8 and CBD for medical purposes, if you’re selling the products, making medical claims that might not meet official organizations’ standards of proof is simply a terrible idea. Leave it to your consumers to determine.
Get Industry Certifications
Getting certified by an organization like theU.S. Hemp Authority is a great way to show your customers that you’re one of the responsible companies.
Conclusion
Self-regulation really just means taking a few basic steps to establish to both customers and politicians that you’re running a legitimate business which does what it claims to and is socially responsible. It might increase costs in the short-term, but over time and especially as consumer knowledge increases, it will pay off many times over. And the next time there’s a situation like what happened recently in Texas, the industry will have a much easier time defending its practices.
Lee Johnson is a writer at CBD Oracle who has been covering science, vaping, and cannabis for over a decade. He focuses on research-driven deep dives into topics ranging from medical uses for CBD to industry and user statistics, as well as general guides and explainers for consumers. He is a passionate advocate of both CBD and cannabis, and a strong believer in informed choice for consumers.
CBD Oracle is a consumer research company working to improve the safety and transparency of cannabis products, producing in-depth statistics on CBD and cannabis, detailed research pieces and analysis of social and legal issues.
NCIA Announces Incoming Board Members
The National Cannabis Industry Association (NCIA) is announcing a slate of incoming members of its Board of Directors today, including six incumbent Board members and two new nominees selected by the organization’s Nominating Committee to serve for the Board’s 2022-24 term.
The organization’s Nominating Committee selected six incumbent board members and two new nominees to serve on the board for the 2022-24 term. The newly-selected board nominees are MadisonJay Solutions Managing Member and NCIA Policy Council Co-Chair Michael Cooper and The People’s Ecosystem CEO and Chair of NCIA’s Diversity Equity & Inclusion Committee, Christine De La Rosa.
“We’re pleased to welcome the new and returning members for the next board term. Their leadership will be instrumental in advancing our vision for a legal, well-regulated, and inclusive cannabis industry,” stated NCIA CEO, co-founder, and Board member Aaron Smith.
As the longest running trade association for cannabis businesses, NCIA has been advocating on behalf of the cannabis industry since 2010. The organization has always maintained a transparent and representative leadership selection process in order to reflect its diverse membership, composed primarily of small businesses in the burgeoning industry.
“As the only broadly representative trade association representing the cannabis sector at the national level, we will always lead with integrity and advocate for the policies that are best for the industry as a whole, not just a handful of operators,” continued Smith. “That means always standing up for policies based in equity, restorative justice, inclusive markets, and against protectionist policies such as arbitrary license caps. I’m confident our board will continue to exemplify those core values in the year ahead.”
The incoming slate of Board members will join directors already serving on the Board for the 2021-23 term. The full list of current Board members and their bios is available here.
Bringing the Beltway to the Bay at Cannabis Business Summit & Expo
by Madeline Grant, NCIA’s Government Relations Manager
There is no doubt that we’ve missed the in-person, one on one interactions in the cannabis industry. For anyone that attended the Midwest Cannabis Business Conference in Detroit in September, it was refreshing to connect with friends and meet new friends in the cannabis industry. Fortunately, we have the chance to meet in person again at the 7th Annual Cannabis Business Summit and Expo (CannaBizSummit) in San Francisco, California. From networking with California-based cannabis companies to meeting new companies in the industry, there is no lack of connections to make at CannaBizSummit.
Pictured Right: NCIA member Sonny Antonio with Sunshine Design and I at MJBizCon at NCIA’s booth.
The National Cannabis Industry Association (NCIA) has been hard at work in Washington, D.C. With the introduction of the Cannabis Administration and Opportunity Act draft legislation, there had been an undeniable excitement to support momentum towards cannabis policy reform. The Government Relations team submitted comments to the sponsoring offices on behalf of NCIA’s members and will continue to work to support members’ best interests. We appreciate your support of NCIA and the missions we continually work to achieve.
At #CannaBizSummit there will be opportunities for educational panels on federal cannabis policy and opportunities to connect with cannabis professionals in all sectors of the cannabis industry. Below are just a few of the education panels and “Lightning Lessons” that will be taking place throughout the conference:
You can find more information and details on the agenda and sessions HERE.
NCIA is honored to welcome our 2021 #CannaBizSummit Keynote Speaker, Troy Datcher, CEO of The Parent Company. Leading a new generation of c-suite innovators, Chief Executive Officer Troy Datcher, together with Chief Visionary Officer Shawn “JAY-Z” Carter, helms a cannabis business for the post-prohibition era The Parent Company. Combining best-in-class operations with leading voices in popular culture and social impact, the company focuses on building brands that will pave a new path forward for a legacy rooted in equity, access, and justice.
Beyond the panels and educational resources, attendees will be able to meet others from around the country. From cannabis cultivators to cannabis retail owners, there is no shortage of potential to network. At NCIA, we continue to support our members’ best interests by providing a continued understanding of the political landscape of cannabis policy reform. It’s our goal to support value-driven reform and support a responsible cannabis industry. Remember, if you are an NCIA Blooming or Evergreen member, you have a number of complimentary tickets to our trade shows.
If you have any questions regarding your membership or the CannaBizSummit please reach out to me via email, Madeline@TheCannabisIndustry.org. There is a lot to be excited about this year and I hope to see you out in San Francisco this December!
Honoring Our Veterans – Cannabis Research and Legislation
Photo By CannabisCamera.com
by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
Every November, Americans around the world honor our armed service members on Veterans Day. While the holiday first appeared after the conclusion of World War I in 1918 as Armistice Day, it was later renamed Veterans Day in 1954. This week, we’re remembering all the veterans in our lives (shoutout to my Dad, a Navy veteran!) and providing you with the latest update on cannabis and veterans legislation from D.C. Let’s take a look to see what’s been happening:
H.R. 2916: VA Medicinal Marijuana Research Act
Sponsored by Congressman Lou Correa (D-CA), this bill would require the Department of Veterans Affairs (VA) to conduct clinical trials of the effects of medical-grade cannabis on the health outcomes of covered veterans diagnosed with chronic pain and those diagnosed with post-traumatic stress disorder. Covered veterans are considered as those who are enrolled in the VA health care system. The trials must include a control group and an experimental group that are of similar sizes and structures and represent the demographics of the veteran population, and the data collected in the trials must be preserved to facilitate further research. Importantly, under this bill, participation in the clinical trials does not affect a covered veteran’s eligibility or entitlement to other VA benefits.
The bill had a hearing in October where Dr. David Carroll, Executive Director at the Office of Mental Health and Suicide Prevention at the Department of Veterans Affairs (VA) essentially testified that the VA does not support this bill. I’d also like to highlight the statement Rep. Correa submitted for the record, which you can find here.
Most recently, just last week, the House Veterans Affairs Committee held a markup on the bill, where it passed by a vote of 18-11. It was a party line vote with just one Republican, Rep. Mariannette Miller-Meeks, voting in favor. Now that the bill has passed out of committee, its next stop could be the House Floor – stay tuned!
NDAA, cannabis, and veterans
As you may know, there’s been much discussion around cannabis policy and the upcoming must-pass NDAA. While we’ve already expanded upon that concept as it relates to banking, more recently, there’s been developments surrounding the NDAA, cannabis, and veterans. Late last week, Sens. Brian Schatz (D-HI), Bernie Sanders (I-VT), Tim Kaine (D-VA), Jeff Merkley (D-OR), Ron Wyden (D-OR), Jacky Rosen (D-NV), Alex Padilla (D-CA) and Gary Peters (D-MI) filed Schatz’s Veterans Medical Marijuana Safe Harbor Act as an amendment to the larger package. This amendment would federally legalize medical marijuana for military veterans who comply with a state program where they live and allow physicians with the U.S. Department of Veterans Affairs (VA) to issue cannabis recommendations. Further, it would require VA to study the therapeutic potential of marijuana for pain and reducing opioid misuse. Under current federal policy, VA allows its physicians to talk about cannabis use with veterans, but they’re prohibited from issuing recommendations that would allow their patients to obtain medical marijuana from state-legal markets.
It’s unclear whether either of these provisions will be enacted into law, however, we applaud our congressional champions for never forgetting about those who have served. NCIA will continue to lobby in favor of legislation that will provide our veterans with relief. Do you have a veteran in your life you’re honoring this week? Hop over to NCIA Connect and let me know!
Video: NCIA Today – Friday, November 5, 2021
NCIA Deputy Director of Communications Bethany Moore checks in with what’s going on across the country with the National Cannabis Industry Association’s membership, board, allies, and staff. Join us every Friday on Facebook for NCIA Today Live.
On the latest episode, Bethany announces the keynote speakers at #CannaBizSummit this December in San Francisco, shares a bit about Exspiravit this month’s Member Spotlight recipient, and covers compliance and extraction.
Registration to the Cannabis Business Summit in San Francisco is now open with special limited-time super early bird pricing on tickets available, head to our website for more information today.
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Pictured Right: NCIA member Sonny Antonio with Sunshine Design and I at MJBizCon at NCIA’s booth.
