Member Blog: Transforming Your Cannabis Business with Modern Experiences
The cannabis market is growing globally at a considerably good pace. According to studies, did you know that increasing legalization, favorable cultivation norms, and the use of technology are some of the factors promoting the development of the cannabis industry?
Due to this, many researchers are projecting the growth of this market from $43.2 in 2022 to $72 billion in annual sales by 2030. While the industry as a whole is growing, however, some businesses are looking for ways to bring something new to customers.
But the question is, when change is the only constant in this market, how can you do it right? Well, don’t worry because we’re here to help.
This article mentions a few tips and suggestions on transforming your business with modern experiences and growing your profits. Let’s dig in!
Install Kiosks for a Better In-Store Experience
One of the best modern ways to elevate your cannabis store is to introduce user-friendly kiosks. These will help your customers find everything easily in the store.
Moreover, you can also increase the product range with these kiosks. For example, if you sell dry herbs, you can also place a station for pre-roll cones to transform into a one-stop store. You can buy pre-roll cones in bulk and make an addition to your business.
It will increase your customers’ convenience and boost your sales for better profits. So, invest in kiosks to transform the in-store experience and align with today’s shopping trends.
Embrace Technology
Another key player in providing a modernized experience to your customer is leveraging technology for your business. You should invest in user-friendly apps and convenient online delivery services to elevate customer experiences.
It is a great way to tap into the target group that seeks convenience and accessibility. Busy schedules often keep people busy, and they may not get the time to visit stores. Thus, providing an app to place orders makes it easier for them.
Likewise, you can consider further offering 24/7 delivery services to accommodate varying schedules and situations. It will not only increase your customer base but also help you stand out among your competitors.
Workshops and Events
Embrace a fresh approach to your cannabis business transformation by hosting workshops and events. It greatly enhances modern experiences. These gatherings help establish strong customer relationships and bring mutual benefits.
For customers, it’s a chance to learn, explore, and connect with fellow enthusiasts. They gain valuable insights into your products and their uses. Your business, in turn, gains loyalty and trust by offering educational and interactive opportunities.
You can conduct these events online and offline according to the demand. You can also introduce games, outings, and more for the community. Moreover, to enhance it further, you can also offer special discounts to the ones who attend your events. This positive connection leads to repeat visits and word-of-mouth recommendations.
Bottom Line
We hope the above information helps you modernize your cannabis business for success. You can use kiosks for easy shopping, embrace technology for convenience, and host engaging workshops. This builds happy customers and loyalty. These steps cater to changing preferences and show you’re a leader.
America in Miniature Goes Green: Maryland’s Journey to Adult-Use Cannabis | 9.7.23 | Policy Matters
Introducing “Policy Matters” – an insightful new #IndustryEssentials webinar series dedicated to unraveling the intricate world of regulatory and policy dynamics within the cannabis industry. As the cannabis landscape continues to evolve, staying informed about the latest regulations and policies impacting Main Street cannabis operators is crucial for success. Join us for a series of engaging discussions where regional regulators, industry leaders, legal experts, and policy influencers come together with NCIA leadership to shed light on the most pressing issues facing cannabis professionals.
Are you curious about the intricacies of launching an adult-use cannabis market in record time? In the debut episode of our new Policy Matters webinar series we delved into the strategic aspects of designing a thriving cannabis market while meeting regulatory standards. In this exclusive session, NCIA Policy Co-Chairs Khurshid Khoja and Michael Cooper were joined by Will Tilburg, Director of the Maryland Cannabis Administration and President of the Cannabis Regulators Association, to explore invaluable insights into the objectives that drive cannabis regulators and the pitfalls they strive to avoid. Discover the pressing enforcement challenges that are top of mind for cannabis regulators in 2023 and gain a clear understanding of the evolving landscape.
Don’t miss this opportunity to gain an understanding of how policy matters in the fast-paced cannabis sector. Stay informed, stay ahead, and be part of the conversation that’s shaping the future of cannabis policy. Tune in today and empower yourself with the knowledge to thrive in this dynamic industry.
03:40 – Launching an Adult Use Market in 2023 | Were there lessons from the existing medical market and others around the nation that you identified as important, both success stories and pitfalls to avoid?
07:23 – Launching an Adult Use Market in 2023 | What allowed you to move so efficiently and what lessons would you highlight for industry and regulators in new markets rolling-out in the future?
12:48 – Launching an Adult Use Market in 2023 | What are some priorities you have for the months ahead?
16:55 – Launching an Adult Use Market in 2023 | What advice would you give to future regulators on building relationships within the executive branch to prioritize these issues?
22:20 – Social Equity | Can you talk about reserving the first round of adult-use cannabis licenses exclusively for social equity applicants and other recent milestones or developments working with the Office of Social Equity?
28:56 – Social Equity | How has Maryland worked to make its medical cannabis industry more equitable and ensure these goals aren’t undercut as they have been with similar licensing preferences in other states?
34:04 – Enforcement | How did the state set up its enforcement plan? How do you strike a balance in a new market between a complete absence of enforcement and protecting public health?
37:34 – Enforcement | What are some key enforcement priorities for you looking ahead?
41:40 – CANNRA | Can you talk about the Cannabis Regulators Association (CANNRA) purpose, membership, and goals?
44:39 – CANNRA | What are the priorities or goals for your tenure as CANNRA president?
47:20 – Federal Reform & Regulation | What is Maryland doing to address the hemp-derived cannabinoids issue as it relates to protecting public health and unfair competition with adult-use cannabis licensees?
52:10 – Federal Reform & Regulation | As a state regulator, how did you receive the recent HHS recommendation for rescheduling of cannabis to Schedule III?
56:34 – Federal Reform & Regulation | What is the optimal division of labor between state and federal government if cannabis is completely descheduled in the future?
Member Blog: Cannabis Strain, Cultivar, or Variety? What Is the Correct Term?
In cannabis cultivation, one often comes across the terms ‘strain,’ ‘cultivar,’ and, more commonly, ‘variety’ to describe the multiple variantsof this versatile plant. While these terms are sometimes used interchangeably, it is crucial to acknowledge that each carries a unique significance. Accurate communication is truly important in this dynamic field, and gaining a comprehensive understanding of these differences is essential. In this article, we embark on a journey to unravel the dissimilarities among strain, cultivar, and variety in cannabis cultivation, shedding light on the nuances that shape this captivating community.
Strain
Commonly used in the cannabis community, the term “strain” is not entirely accurate when referring to variants of the Cannabis species. In scientific contexts, “strain” is primarily used in microbiology to discuss bacteria, viruses, and fungi (Russo, 2019). For example, in bacteriology, a “strain” refers to a specific genetic variant or subtype within a bacterial species. Each strain may have unique genetic characteristics, such as the presence of specific genes (Dijkshoorn et al, 2000).
However, when it comes to plants like Cannabis and plants in general, the use of the term “strain” is not appropriate, as it is a word reserved for the realm of microbiology. Therefore, we should avoid using it when referring to different variants of Cannabis species.
Variety
The term “variety,” on the other hand, provides a more accurate and appropriate way to describe different cannabis variants. The term “variety” is defined as a species’ adaptation resulting from changes in its habitat due to accidental factors such as climate shifts, soil changes, the presence of diseases, insect attacks, nematodes, and other similar influences (Arévalo et al., 2006). Therefore, when discussing different types of cannabis, “variety” is the most accurate term to use.
Cultivar
To avoid confusion with the botanical term “variety,” the term “cultivar” was coined. It is a combination of “cultivated variety,” shortened to “cultivar” (Arévalo et al, 2006). Unlike varieties, cultivars are not products of natural evolutionary processes. Instead, they are created through deliberate breeding or agricultural techniques to have improved and uniform traits (Tooker et al, 2012). This distinction is crucial, as it highlights the human intervention involved in developing specific plant traits and characteristics.
But, how important is it to distinguish between cultivar and variety in Cannabis? In the context of Cannabis, differentiating between cultivars and varieties is essential. Varieties refer to naturally occurring adaptations of the plant due to environmental factors, while cultivars encompass those that have been intentionally bred and developed by humans. For example, a landrace variant found growing naturally in its native region would be considered a variety, whereas a hybrid variant carefully created through crossbreeding different varieties would be classified as a cultivar.
Finally, why should we care about using the correct terminology? Understanding the distinctions between “strain,” “variety,” and “cultivar” is more than just semantic pedantry; it has practical implications for various stakeholders:
Scientific accuracy→ Employing correct terminology helps maintain scientific integrity and clear communication among researchers, botanists, growers, nurseries, and enthusiasts. All must adhere to precise terminology to communicate effectively, exchange knowledge, and avoid misunderstandings.
Consistency→ Consistent use of the terms “variety” and “cultivar” promotes a unified understanding within the cannabis community and the broader horticultural and botanical fields. Standardizing the usage of these terms will aid in streamlining scientific research, regulatory practices, and consumer education within the cannabis industry.
Preservation of biodiversity→ Understanding and distinguishing between natural varieties and cultivated cultivars contribute to the preservation of Cannabis biodiversity.
In summary, although the terms “strain,” “cultivar,” and “variety” are frequently used interchangeably in the cannabis community, they hold distinct meanings. Recognizing the proper usage of each term is essential to enhance clarity and ensure accurate communication. By understanding the differences between these terms, we can better appreciate the diverse and captivating world of cannabis, as well as the diligent efforts invested in developing unique and desirable cultivars.
References
Arévalo, R. A., Bertoncini, E. I., Guirado, N., & Chaila S.. “Los términos cultivar o variedad de caña de azúcar (Saccharum spp.).” REVISTA CHAPINGO SERIE HORTICULTURA, vol. 12, no. 1, 2006, pp.5-9. Redalyc, https://www.redalyc.org/articulo.oa?id=60912102
Dijkshoorn, L., B. M. Ursing, and J. B. Ursing. “Strain, clone and species: comments on three basic concepts of bacteriology.” Journal of medical microbiology 49.5, 2000, p. 397-401. https://doi.org/10.1099/0022-1317-49-5-397
Mostafaei Dehnavi, Mahboubeh, et al. “THC and CBD Fingerprinting of an Elite Cannabis Collection from Iran: Quantifying Diversity to Underpin Future Cannabis Breeding.” Plants, vol. 11, no. 1, 2022, p. 129, https://doi.org/10.3390/plants11010129
Russo, Ethan. “The Case for the Entourage Effect and Conventional Breeding of Clinical Cannabis: No “Strain,” No Gain.” Frontiers in Plant Science, vol. 9, 2019, p. 434025, https://doi.org/10.3389/fpls.2018.01969
Tooker, John, and Frank, Steven. “Genotypically Diverse Cultivar Mixtures for Insect PestManagement and Increased Crop Yields.” Journal of Applied Ecology,vol. 49, no. 5, 2012,pp. 974-985, https://doi.org/10.1111/j.1365-2664.2012.02173.x
Cracking the Code – Unraveling the Challenge of Coverage for Novel Cannabinoids | 8.8.23 | Committee Insights
NCIA’s #IndustryEssentials webinar series is our premier digital educational platform featuring a variety of interactive programs allowing us to provide you timely, engaging and essential education when you need it most.
In this edition of our Committee Insights series, originally aired on August 8, NCIA’s Risk Management & Insurance Committee explored why insurance for novel cannabinoids can be such a challenging code to crack. Our discussion will help you navigate through liability and legislative loopholes, offering a clearer understanding of your exposure, while considering the patchwork of federal and state requirements.
In case you missed it, in conjunction with this session they’ve also released the third edition of their “Risk Management and Insurance Manual” specifically exploring this subject, which is available for download on NCIA’s website here: https://bit.ly/3OvGtag
You’ll leave with a better understanding of how unravel the complexities of insuring novel cannabinoids and equipped with the knowledge needed to make informed decisions regarding your insurance coverage. Whether you’re a cannabis business owner, a risk manager, an insurance professional, or anyone with an interest in this topic, this webinar will provide you with practical takeaways to safeguard your products, operations, and workforce.
Tune in as we crack the code to safeguard your products, operations and workforce!
As we look forward to the 2023 US Farm Bill, there’s a substantial opportunity to modify the regulations around hemp cultivation and usage. Adjusting these regulations can stimulate the growth of the hemp industry while still ensuring consumer safety. The potential of hemp as an agricultural product is vast, with applications including food, fuel, fiber, building materials, grain, and medical use. It’s important to note that while cannabinoids often dominate the headlines, they make up only a small slice of the industry’s potential size.
Experts predict that incorporating hemp into cosmetics, construction materials, and textiles could catapult the industry to over $1 trillion in annual sales. However, the current regulations pose significant challenges to this innovative industry’s expansion, especially for conscientious farmers. The fear of having their crops destroyed because of slightly exceeding a set THC limit is a serious obstacle.
At present, the definition of hemp rests on a Total THC limit of 0.3%, a figure chosen in the 1970s for classification purposes, not for assessing the plant’s psychoactive effects. Bumping this limit up to 1% Total THC would have a negligible impact on impairment but could have a monumental effect on farmers’ operations.
Research from 2020 by the University of Illinois, University of Wisconsin, Michigan State University, and Purdue demonstrated that more than half of the common hemp varieties could surpass the Total THC limit under certain conditions. However, this research also revealed that only 4% would breach the limit if it were raised to 1%.
Growing hemp that exhibits desirable traits for industrial uses, like a long straight stalk, high fiber, or high seed yield, requires the plant’s full maturation. This maturation is often linked to higher THC profiles. Unfortunately, the current strict conditions and genetic variation restrictions severely limit the plant’s potential applications.
While responsible hemp growers are in favor of state-led regulations for cannabinoid extractions that can cause impairment, it’s clear that an unrealistically low THC limit isn’t the best approach. Other nations, such as Thailand, Mexico, and Switzerland, have already updated their regulations, defining hemp as containing up to 1% Total THC.
By making a small change to the legal definition of hemp, we can unlock the industry’s potential. It will allow farmers across the nation to make the necessary investments to keep pace with an industry set to grow from being worth billions to trillions of dollars. By encouraging this change, we can foster American innovation and boost rural economies, reinvigorating the manufacturing sector in the process. Now is the time to recognize and adapt to the potential of this versatile plant.
How can you help?
Remember, members of Congress are elected to represent the interests of their constituents – that’s you. But they can only effectively do so when they’re fully informed about the issues that matter to you. Your voice is powerful and essential to our democratic process. By speaking up, you can provide important insights and help shape the future of the Hemp Industry.
Member Blog: Securing Your Cannabis Venture – Mastering Inspections with Comprehensive Cannabis Insurance
The cannabis industry continues to blaze a trail of growth and innovation, opening numerous opportunities for entrepreneurs and investors. However, this thriving landscape also exposes businesses to unique risks that demand proactive risk management solutions. Insurance plays a pivotal role in safeguarding cannabis ventures from potential losses, making it an essential aspect of responsible business operations. In this blog post, I will explore the critical role of inspections, the challenges they present, and how partnering with a reliable cannabis insurance broker can protect your business interests while mastering the art of inspections.
Understanding the Need for Inspections
The cannabis industry operates under stringent regulations, and inspections are an indispensable component of ensuring compliance. These routine evaluations, carried out by regulatory bodies or insurance carriers, are designed to assess product quality, safety standards, and adherence to legal requirements. While inspections are vital for maintaining high standards within the industry, they also expose businesses to potential vulnerabilities, particularly theft.
The Perils of Theft: Unraveling Insider Threats
As the cannabis industry expands, so does the risk of theft. A concerning issue arises from potential “inside jobs,” where employees or third-party trusted individuals gather sensitive information on-site, posing a significant threat to the operation’s stability. This situation often leads to confusion and concern for clients regarding third-party insurance inspectors who sometimes come on site without communication or vetting.
Clients frequently encounter uncertainty when dealing with these inspectors. They tend to reach out to operators to schedule appointments without confirming the inspector’s affiliation with the insurance carrier or broker. This results in delayed responses, as these calls are often mistaken for telemarketing and disregarded. Unfortunately, this miscommunication can lead to compliance issues with the insurance carrier.
To address this problem, transparent communication between the insurance broker, inspection company, and operator is essential. For example, many clients now ask me to verify the identity of those contacting them before scheduling appointments. I highly recommend this practice to protect clients’ sensitive information.
In this evolving landscape, ensuring security and effective communication is paramount. By taking proactive steps, we can enhance the industry’s growth while safeguarding its integrity.
Transparent Expectations: Building a Solid Foundation
Open and direct communication, coupled with well-defined expectations, serve as the cornerstone for effective inspections within the cannabis industry. My commitment lies in bridging the gap between clients and inspectors, enabling them to familiarize themselves with one another and streamline the scheduling process. A comprehensive comprehension of the inspection procedure, its aims, and the specific areas subject to scrutiny is imperative for businesses. Simultaneously, transparency on the part of insurance carriers regarding inspection protocols and their protective role is crucial for your business’s security.
Embracing a collaborative approach to inspections fosters a strong alliance between businesses and insurers. This synergy guarantees a seamless process that ultimately benefits all stakeholders involved.
Guarding Behind-the-Scenes Details: Protecting Business Operations
In the fiercely competitive cannabis landscape, certain aspects of business operations must be protected with utmost confidentiality. These behind-the-scenes details include proprietary cultivation techniques, security measures, and intricate supply chain arrangements. Recognizing the sensitivity of this information, leading cannabis insurance brokers take extraordinary measures to safeguard such details.
The integrity of inspection processes begins before any inspector sets foot on your cannabis business premises. Reputable cannabis insurance carriers undertake rigorous vetting of third-party inspection companies to verify their credentials and expertise. This stringent evaluation ensures that inspectors adhere to the highest standards and are committed to protecting your business. In cases where an inspector contacts you directly, it is essential to politely reschedule the inspection and promptly inform your insurance broker.
Aligning Real-Time Risks with Comprehensive Insurance Coverage
Beyond regulatory compliance, inspections serve another vital purpose: assessing real-time risks and aligning them with the insurance coverage outlined in your policy. This strategic alignment ensures that your cannabis business is adequately protected against potential losses. Collaborating with your insurance broker to comprehend the risks inspectors evaluate and their significance empowers you to optimize your risk management strategies. By proactively addressing any coverage gaps, your cannabis insurance policy becomes a reliable safety net, allowing you to navigate the dynamic cannabis industry with confidence.
Addressing Unique Industry Challenges: Tailored Cannabis Insurance Solutions
The cannabis industry operates in a state of constant flux, with evolving regulations and market dynamics presenting ever-changing challenges. These unique complexities demand specialized insurance solutions that cater to the specific needs of cannabis businesses. Leading cannabis insurance providers possess an in-depth understanding of industry intricacies, enabling them to craft policies that safeguard against cannabis-specific risks. From crop damage and product recalls to theft issues, these tailored insurance solutions provide comprehensive coverage, assuring businesses of their resilience in the face of adversity.
Overall, inspections and comprehensive cannabis insurance play instrumental roles in securing your cannabis venture against potential risks and losses. Transparent communication and clear expectations before, during and after inspections build trust and foster collaboration between all stakeholders.
Guarding behind-the-scenes details is of utmost importance, and trusted cannabis brokers go the extra mile to protect your business operations from potential breaches. Vetting inspectors diligently ensures the security of the inspection process, preventing unauthorized access to sensitive information.
By aligning real-time risks with comprehensive insurance coverage, cannabis entrepreneurs gain invaluable peace of mind and the ability to navigate the industry confidently. As you embark on your journey in the dynamic cannabis sector, choose a reputable cannabis insurance broker who understands the intricacies of the industry and can offer tailored solutions to safeguard your business interests.
Remember, mastering inspections and harnessing the power of comprehensive cannabis insurance will be your business’s most potent shield in an ever-changing and promising landscape. Embrace the future of the cannabis industry with confidence, knowing that your venture is secured and protected every step of the way.
Committee Blog: Navigating the 2023 Cannabis Harvest Season – Balancing Labor Costs, Worker Safety, and Automation
As we enter the Fall cannabis harvest season of 2023, several dynamics impacting human resources in the cannabis industry have shifted considerably. Between escalating labor costs and the imperatives of ensuring safer working conditions, the landscape for cannabis industry employers isn’t what it used to be.
Here are three recommendations to help you navigate workflows this harvest season:
1. Proactive Planning Amidst Rising Labor Costs:
Labor costs in the cannabis industry have seen a sharp surge in recent months. Where we saw hourly rates for harvest workers in years past at $12-$20/hour, this range is now closer to $14-$25/hour, depending on the market. This uptick isn’t just a reflection of rising expectations among industry employers, but also a clearer sense of the safety risks involved, what experienced cannabis harvest workers are willing to work for, and the number of such workers who have left the industry entirely in recent months. For cannabis companies, this necessitates early planning. Human resources departments need to remain agile to adapt to these changes in the labor market.
To address this, a multi-pronged strategy is best. If you’re still finalizing your harvest approach, consider a blend of hiring seasonal talent while also investing in some automation. By leveraging the unique strengths of both seasonal and full-time workers, along with automation, you can tap into hands-on expertise, while enjoying the benefits of flexibility and cost-effectiveness.
2. Prioritizing Worker Safety:
The increasing global temperatures, a distressing trend for many cultivators, has implications for outdoor and greenhouse workers. HR professionals need to be proactive in revising Safety protocols to protect workers from the adverse effects of heat. Regular breaks, shaded areas, hydration stations, and training on recognizing heat-related illnesses are no longer optional. In certain areas, you may want to consider having your crew come in earlier than usual, before the weather heats up, as long as you have adequate lighting in place so the team can work safely.
If you operate in remote locations or places farther from urban centers, it becomes even more crucial to ensure nearby amenities and facilities are optimized for the warmer climate. This includes considering air-conditioned accommodations, cool showers, or providing cooling stations on-site. Keep a list of essential nearby services, and ensure they cater to the needs of workers battling higher temperatures.
In light of respiratory concerns, especially in indoor processing settings, invest in premium Personal Protective Equipment (PPE) for tasks like handling kief, resin, and pre-rolls. This PPE can also be used by workers outdoors when there are some air quality concerns due to fire season. It is not safe for workers to be out when air quality is poor. Check with your Worker’s Compensation provider to see what the threshold is for your policy.
If you’re looking for Work Site Safety or OSHA guidance, please reach out to NCIA’s HR Committee for recommendations.
3. Integrating Automation with the Human Touch:
2023 is undeniably a pivotal year for integrating automation in the harvest process. Advancements in technology offer tools that can help streamline multiple stages of the harvest. While there are certain upfront costs involved, there are also long-term benefits to be had in terms of overall profitability and efficiency. While much of the available machinery has a way to go before being as accurate as an experienced Harvesting Tech or Trimmer, especially for growers in remote areas, where there isn’t a large pool of talent, leaning more on automation could make the difference between harvesting your cannabis at its peak, or not.
You can also look to our related NCIA blog post from 2021 for additional suggestions to help you prepare for the Fall harvest. Navigating the harvest this season will require forward-thinking, investment in a combination of seasonal workers and technology, along with a renewed commitment to worker well-being. As challenges continue to mount in our industry, the companies that adapt and prioritize both efficiency and worker safety will undoubtedly reap the greatest rewards.
Member Blog: Adult-Use Cannabis Now Legal in Maryland – A Look at the New Law
In the heart of the East Coast, Maryland stands as a state rich in history and diversity. But now, it’s making headlines for quite a different reason.
In a significant move, the state has crossed one of the biggest milestones of its legislative journey- adult-use cannabis is now officially legal.
Of course, the decision comes after much debate, consideration, and reflection on the impact this will have on society. However, this law is sure to change the way cannabis is viewed, controlled, and used within the state.
The following article explores the details of this landmark law, what it means for Maryland’s future, and how customers can get their hands on adult-use cannabis.
Let’s cut to the chase!
The New Cannabis Law In Maryland: Explained
The journey of legalizing cannabis for adult-use began in the 2022 General Election. During these elections, voters gave a nod in favor of allowing adults aged 21 and older to use cannabis. This came into effect on July 1, 2023.
But what did this mean for the state?
Well, during the 2023 legislative session, lawmakers got to work. They passed a law called House Bill 556/Senate 516, describing the rules for legal sales of cannabis, including how to license sellers and how to tax them.
This change was sealed when the Cannabis Reform Act got the Governor’s signature on May 3, 2023. This Act was like a green signal for licensed shops to sell both medical and adult-use sales. So, by July 1, there was an official marketplace for adult-use cannabis.
But that’s not all! The Act gave more powers to the Maryland Cannabis Administration. They were tasked with issuing more licenses to those growing, processing, and selling cannabis. There was also something new – the incubator licenses. All these licenses were set to be released in two phases.
Highlights of The New Law:
Adults aged 21 and over can legally possess, consume, and grow marijuana for personal use.
The legal limit to possess cannabis is:
Up to 1.5 ounces of flower
Up to 12 grams of concentrated cannabis
The product contains up to 750 milligrams of delta-9-THC.
Public consumption remains illegal.
Driving under the influence of marijuana is still a criminal offense.
Expungement of certain marijuana-related convictions, giving thousands of individuals a fresh start.
Under federal law, cannabis is still prohibited; that’s why transporting or carrying it across state borders is not allowed.
How Can Someone Buy Cannabis Products For Adult-Use?
Purchasing cannabis products for “non-medical” use is pretty easy now. If you or someone you know wish to get their hands on these products, follow this simple guide:
You need to be 21 years old or older. That’s the legal age for buying cannabis products for adult-use in Maryland. Remember to carry a valid photo ID to confirm your age when visiting a dispensary.
Dispensaries or stores have a variety of options to choose from. So, whether you’re interested in edibles, flowers, tinctures, or topicals, it’s essential to check them out to find the product that suits your preferences. You can even ask questions to make a well-informed decision.
Though you don’t require a medical card to buy cannabis, you do have to keep the maximum limit of possession in mind and follow all the state regulations. It will help avoid potential penalties or legal troubles at the federal level.
That’s all! Now, you can enjoy the benefits of this popular herb from the comfort of your home.
What Would Be The Implications Of This Law in Maryland?
Well, just like any law amendment and law regulation, this milestone has also brought along a few implications that include:
Economic Implication
The legalization of adult-use cannabis in Maryland is set to have significant economic implications. Tax revenues from cannabis sales are estimated to bolster state funds, allowing for investment in various public services like education, healthcare, and infrastructure.
The growth of the cannabis industry will likely create new jobs, supporting the local economy and providing opportunities for entrepreneurs and workers alike. Proper regulation can further ensure that the economic benefits are widespread and sustainable.
Social Implications
The state has taken a significant step, and this is because people’s feelings and opinions about cannabis are changing. This is reducing the age-old stigma related to its consumption and other uses.
In addition to this, the new law allows for expungement of prior convictions related to its possession and use. This is a step for righting past wrongs, positively impacting countless lives, and offering them a second chance to build their lives.
Educational Initiatives
Education is one of the key components of Maryland’s approach to cannabis legalization. Basically, the plan is to implement public education campaigns aimed at informing residents about responsible use, potential health risks, and legal boundaries.
These educational initiatives are vital for ensuring that people, especially young ones, understand the new law’s nuances and potential health implications. Such awareness is crucial in preventing misuse and fostering a responsible approach to adult-use cannabis.
Moreover, this will make regulation of the law much easier, transparent, and responsible. In fact, law enforcement agencies have also provided clear guidelines on the legal use of cannabis, emphasizing the continued illegality of driving under the influence, underage possession, and other related offenses.
Key Takeaways: A Historical Moment for Maryland
The decision to legalize adult-use cannabis in Maryland isn’t a minor tweak in legislation. It’s a significant moment, marking the state’s progressive stance in acknowledging changing societal views and personal freedoms.
In fact, it’s about dollars and cents too. With regulated sales and businesses springing up, the state stands to gain from additional tax revenue and job creation. The state has shown foresight. The legalization comes with robust educational initiatives and strict safety regulations.
From ensuring quality control of products to launching public education campaigns, the state is determined to prevent misuse and ensure responsible consumption. Ultimately, it’s a multifaceted approach shaped by careful deliberation, public interest, and a vision for a better future.
Member Blog: How to Avoid the 4 Most Common Payroll Mistakes
To achieve your goals in business, your payroll system must be flawless. It is an aspect in which you must strive for perfection whenever possible. Avoiding payroll mistakes in the cannabis industry is especially crucial due to the highly regulated nature of the industry. Compliance with payroll regulations is essential to avoid legal repercussions and penalties from governing agencies. Additionally, accurate and timely payroll ensures proper compensation for employees, and maintaining precise payroll records promotes transparency and accountability, building trust with employees and stakeholders in an industry where transparency is vital.
It is better to be safe by managing your payroll as thoroughly as possible, if not you would be sorry you didn’t. Most people have most likely made these mistakes and have had minor consequences accompanying them. If these mistakes persist, the business owner often pays dearly for them. These common payroll mistakes have cost some their business.
Having Multiple Records for a Certain Payroll
It pays to have all your payroll information in a single database. This enhances security and ensures that you know where to look for your payroll information. If this has been your practice and your business uses tools like HCM software that helps you manage your employees and other business information, then this shouldn’t be much of a problem.
All you’ll have to do is use that same software to manage and process payroll information. If your business documents are disorganized, be sure to have them all in one place.
Not Updating Needed Information
Ensure that you are not complacent by relying on automated software to do everything. The system is not aware that your employee would be changing addresses therefore such info should be entered manually.
That error could lead to mistakes in filling that employee’s taxes as the bills might arrive at the wrong address. As much as simplifying a process is great, you still need to play your path in getting things done.
It would help you to set timely reminders in the system that should help you avoid the mistake of not keeping up with the latest information.
Weak Security System
Confidential information should remain so. To avoid your system being compromised, you should be using a payroll processing system with strong cybersecurity.
This has got to be the costliest mistake common to payroll processing. Every information concerning your business that is not available on your website and to your customers, is most likely not public information. Private information about your business should remain private.
Information in payroll systems is as sensitive as can be. There’s almost every piece of information you need to know about a person, and as such strict rules should apply to keeping them safe. A weak security measure means a weak business and a weak business means trouble.
Inaccurate or Delayed Tax Payments
In calculating taxes absolute precaution is required. If you are not a tax accountant you are probably not so proficient in this calculation. Your tax accountant (if your business has one) should learn how to adequately use the system to avoid delay or inaccuracy.
Bear in mind that inaccurate tax payment makes your business a tax defaulter. Your business as a taxpayer has the duty of tax calculations assigned to an accountant. Note that taxes ought to be paid within the required time bracket. The systems are programmed to make the tax payments when due.
The human capital management system does not only process payroll information but can also tell when employees qualify for federal or state tax credits.
In Conclusion
To maintain payroll accuracy and timeliness in the cannabis industry, it is crucial to avoid payroll mistakes. By opting for a third-party payroll provider like Tesseon you can benefit from our expertise and ensure that your payroll is consistently accurate and delivered on time, regardless of any industry-specific challenges. The Cannabis industry is both very young and extremely regulated, it is imperative that businesses stay vigilant and proactive to avoid costly mistakes.
Member Blog: The SAFE Banking Act Is Delayed. Again.
Here’s what cannabis businesses can do to make the most out of the current financial landscape.
Companies in the cannabis industry looking to start a relationship with federal banks and credit cards are going to have to wait a little longer. Despite bipartisan support, the Secure and Fair Enforcement (SAFE) Banking Act has stalled in the Senate; caught in minor disagreements, it has missed the opportunity for a vote during the summer session, leaving cannabis-related companies caught in financial limbo. Unfortunately, this isn’t new news: the first version of this bill was introduced to congress 10 years ago.
Politically, the main selling point is that the bill would boost the safety of the cash-heavy industry: Politicians point to an increased number of break-ins at dispensaries as a justification for allowing federal financial institutions to provide services such as bank accounts and credit card transactions to cannabis companies.
An easy political sell, the public safety angle – spelled out in the acronym SAFE – is usually the first (and only) benefit mentioned in the news. Yes, SAFE would allow dispensaries to shift away from cash transactions by permitting credit card companies to service businesses that produce, manufacture, distribute and sell cannabis, despite the fact it is a schedule 1 controlled substance.
But beyond preventing robberies, the bill would start to level the economic playing field for this growing industry that already faces an extremely high rate of federal taxation, on top of other disadvantages, such as higher transaction and banking costs that lead to pricing pressure – and make it tougher to compete with the illicit market.
Because of cannabis’ schedule 1 status, nationwide banks are not allowed to provide any services whatsoever to cannabis-related businesses. Even though the businesses are legal at the state level, national banks operate under a federal charter that prohibits such relationships – not just with dispensaries, anyone who does business with the cannabis industry – web designers, lawyers, marketers, etc.
(I learned that the hard way when, in the early days of working as a virtual CFO for cannabis companies, I had all of my Bank of America accounts – personal and business – frozen and shut down abruptly.)
Since federal banks cannot provide small business loans or even issue checking or savings accounts, cannabis-related businesses are limited to small banks (i.e. credit unions, state banks). They face higher borrowing costs, and receive lower interest rates, cutting them off from many of the privileges other industries enjoy. Best financial practices – like securing a line of credit or keeping operating cash in an interest-bearing account – may seem out of reach.
For cannabis-related companies that had been impatient to take advantage of this new legislation, the news is frustrating to say the least.
But there are lots of ways retailers can work within the current financial landscape. Here’s what I recommend.
Seek an interest-bearing account – The smaller banks and credit unions servicing the cannabis industry typically do not offer these clients interest-bearing products. However, it is possible to find interest-bearing accounts for operating cash, for example through the fintech company Safe Harbor Financial, with rates starting around 1.5%.
Secure a line of credit – With loans hard to come by, cannabis companies often feel as though they have to access capital from private investors, forcing them to give up equity. But seeking non-dilutive funding is possible – and recommended – once you’ve established your target operating cash balance of 10-30% of annual revenue.
Many cannabis friendly banks will offer unsecured lines of credit at rates of base rate +4% – but generally only in limited license states.
Note: although rates can be competitive in some cases, the amounts tend to be lower. However, since these facilities are often based on an amount per tax ID, multiple entities could each carry their own line of credit and increase total borrowing capacity.
Facilitate compliant debit sales – We know cash-only can drive down retail sales and increase risk of theft or employee mismanagement. With credit cards unavailable, two popular, but non-compliant, solutions have been cashless ATMs and Mastercard and Visa debit cards. While cashless ATMs experienced a crackdown last December, the latest news suggests that Mastercard is also cutting off this popular work-around.
Rather than get caught up in the headlines, adopt compliant pin-based debit cards, through products such as Aeropay. Unlike traditional debit card transactions, customers will have a fee, and they’ll also have to set up a specific app to gain access, but as all other cashless options appear to be erased, the benefits outweigh the costs, especially for regulars.
Just make sure you’ve got a point of sale (POS) system with flexibility in terms of their API (application programming interface) – for example Flowhub – so that you can integrate the pin-based debit card payment method.
Don’t pay monthly banking fees – While most banking institutions charge account fees to cannabis businesses, with a little research you can find some that waive those fees, for example Main Street Bank and Safe Harbor Financial.
Keep deposits safe – Although the dust has settled since the collapse of Silicon Valley Bank, cannabis businesses should still keep an eye on managing their banking risk. Since programs like CDARS and ICS are not available to the industry, we recommend cannabis operators keep deposits at multiple banks to keep the highest possible FDIC insured balance.
Despite these financial obstacles and policy roadblocks, the cannabis industry continues to grow, year after year. Accessible banking products are out there – and as we wait for more federal legislative progress, it can be well worth the investment to do a little research to find out which ones best meet your businesses’ needs.
Member Blog: 5 Types of Business Insurance You Should Consider
As the cannabis industry continues to rapidly expand and evolve, entrepreneurs need to be proactive in safeguarding their businesses from potential risks. Insurance is crucial for any business, and the cannabis sector is no exception. In this article, we will explore five important types of business insurance specifically tailored to the needs of cannabis entrepreneurs. By understanding these essential policies, cannabis industry professionals can make informed decisions to protect their investments and future-proof their ventures.
General Liability Insurance
General liability insurance covers the cost of any injury or damage caused by your business. This includes injuries on your premises and injuries to someone while using your products or services. It also covers you if someone is injured while on your property, even if they’re not part of an organized event or program (like a birthday party). General liability insurance will also cover the cost of any lawsuits filed against you for negligence or breach of contract arising out of the above scenarios.
Professional Liability Insurance (Also Known As Errors And Omissions)
Professional liability insurance, also known as errors and omissions insurance, protects you from lawsuits if a client feels you have made an error in your work. This can be anything from a client claiming that you didn’t perform according to the contract terms or did not fulfill their expectations.
This coverage differs from general liability protection in that it only covers claims against professional services like accounting or legal services. If you own a business where your products or services could physically injure customers, you also need general liability coverage (more on this later).
The good news is that most businesses need both types of policies: professional liability for the expertise required for running their business and general liability for protecting themselves against bodily injury incurred by customers using their products/services.
Business Interruption Insurance
A business interruption policy provides coverage for losses that result from the sudden, unforeseen loss of use or operation of your business. For example, if you’re forced to close your doors because a fire destroyed your building, this policy will pay back some of the revenue you lost during that period. Business interruption insurance can be purchased as part of a multi-line or a stand-alone policy.
Workers’ Compensation
The next type of insurance to consider is workers’ compensation insurance. This form of insurance covers the cost of medical expenses and lost wages for an employee who has been injured on the job. In all states, workers’ compensation policies are required by law, but you may want to add additional coverage for your business if there is a high risk of injury among your employees. Your premiums will be higher if you have a larger number of workers or more dangerous jobs than others in your area, so it makes sense to review this kind of coverage before purchasing it.
Employment Practices Liability (EPL) Insurance
Employment Practices Liability (EPL) insurance can be a lifesaver for small businesses, especially when there are multiple employees.
EPL insurance protects your business from sexual harassment, discrimination, and wrongful termination claims. It also provides coverage for defending these types of claims against you.
If you’re doing business in certain industries, EPL policies are often required by law or rely on government contracts to run your business. A few examples include healthcare providers, educational institutions, restaurants, and hotels—though it varies by state, so check with your insurance agent before purchasing a policy.
Conclusion
The bottom line is that you should consider your business insurance needs carefully and ensure adequate coverage. If you’re unsure about what type of insurance to get or how much coverage is enough for your business, please speak with an agent or broker who can help guide you through these decisions.
With recreational marijuana legalized in 23 states, Washington D.C. and Guam, the public continues to broadly favor legalization for medical and recreational purposes. Why then, is it still a challenge for the cannabis industry to access financial services? The short answer: cannabis banking is risky for financial institutions (FIs), and bankers are committed to avoiding unnecessary risk. Historically, FIs have worked to keep funds associated with illegal activity out of their banks and credit unions, so FIs are sensitive to conflicting state and federal cannabis laws. For example, many FIs are regulated by federal agencies, but marijuana is a Schedule I controlled substance.
Navigating the Challenges
However, there are many banks and credit unions that have taken this risk for a variety of reasons, including creating new sources of income, a desire to serve the unbanked in their communities, and supporting the social equity initiatives in the cannabis industry. These FIs are usually discreet about their cannabis banking programs, and it’s often hard to identify them through your typical approach: prowling websites, Google searches or even trade shows (although this has improved over the past 12 to 18 months).
Fortunately, the best approach is also a well-trusted option: word of mouth. Contact lawyers, accountants and bookkeepers in your area. If they represent or work with other local marijuana related businesses (MRBs), they may know who they are banking with or know someone who does. You should also consider contacting the FIs directly, even if you don’t know if they are working with MRBs. You might be surprised to find that they do, and if they don’t, they might redirect you to another FI in the area. Finally, organizations like the PBC Conference team, provide resources to aid your search, including a Cannabis Banking Directory published annually.
Focus your search on credit unions, community banks, and regional banks. We are entering a new phase of cannabis banking with some FIs offering more than just a place to park your cash. A growing number now offer loans, payroll services, business insurance, etc., so take time to see what’s available, compare multiple FIs’ programs, and find the best match for your cannabis-related business’ (CRB) needs.
Be Prepared
Every action taken by an FI, regardless of their location or asset size, is closely scrutinized by state and federal banking regulators, and law enforcement agencies. They want to make sure that banks and credit unions are only working with legitimate and legal state CRBs. Therefore, you can expect an FI to require a combination of the following:
Driver’s license or other acceptable state-issued identification for all account holders
Information on all beneficial owners of the company, not just those who own a percentage of the company above a certain percentage threshold (such as 20%)
Tax returns for the previous year for both the company and the beneficial owners
Financial information such as profit and loss accounts and capitalization tables
A copy of any required state licenses
Operational data such as projected annual sales and number of patients/customers
Corporate formation documents such as articles of incorporation and business plans
Sales transaction data (store reports or invoices) for the past thirty days
Behind the scenes of cannabis banking, FIs must do a lot to ensure that they are onboarding only legitimate CRBs; from collecting and analyzing market transactions to conducting reporting. This means that FIs often have additional staff to fulfill their compliance duties and they invest in software to automate some of their monitoring. FIs invest heavily in banking cannabis and account fees help offset those expenses. This means you can expect to pay account setup fees and monthly account maintenance fees to help cover these costs. Prices have come down in recent years. The days of paying $5,000 per month for an easy deposit account are long gone, but the fees will remain high as long as a lot of oversight and reporting falls on FIs.
Embrace the Journey
FIs are far savvier about detecting MRB activity among their existing customer/member accounts. At this point, it’s not a question of “if” your FI will find out you’re an MRB, but when. Few things are more disruptive to a business than getting a letter from your FI informing you that your account will be closed in thirty days. Don’t put yourself in that position. Additionally, you may be missing out on vital financial and business services by staying “under the radar” and not having a transparent relationship with a bank or credit union. Start looking for a cannabis-friendly bank or credit union today!
Adapting to New Economic Realities | 8.1.23 | Service Solutions
NCIA’s Service Solutions series is our sponsored content webinar program which allows business owners the opportunity to learn more about premier products, services and industry solutions directly from our network of established suppliers, providers and thought leaders.
In this edition originally aired on Tuesday, August 1, 2023 we were joined by Jason Laronde of Vitalis Extraction Technology and special guest Mark Webb (passionate chemist, educator, and extraction specialist better known as The Aroma Science Guy and ) for a session about one of today’s most impactful, yet often misunderstood, solutions for rising production costs: cosolvent extraction using CO₂ and small, metered volumes of ethanol.
Making cannabis products is basically like printing money, right? Well… Maybe in the past. Today, cannabis is bound by the fundamentals of business. The old ways of processing are often too expensive amid rising competition and price compression. In this more mature market, every penny matters. So with extraction and downstream refinement being among the highest operating costs producers face, it’s vital to get things right.
Learn how this novel application of a time-tested process can streamline your operation, improve your profitability, and help you maintain the consistent product quality your customers expect.
Learning Objectives:
• Summarize the economic evolution of the legal cannabis manufacturing industry and the resulting impacts on today’s producers.
• Explain the drawbacks of different solvent extraction methodologies as they relate to a cannabis manufacturer’s operation and bottom line.
• Describe the advantages of using CO₂ extraction with small amounts of ethanol as a cosolvent in cannabis manufacturing.
Panelists:
Jason Laronde
Sales Manager
Vitalis Extraction Technology Inc.
The cannabis industry has seen success and achievement in recent years. However, with this success comes a challenge: counterfeiting. Counterfeit cannabis products pose serious risks to consumers and can damage the reputation of legitimate businesses. To preserve authenticity and protect consumer safety, solid anti-counterfeiting measures can be implemented. One crucial aspect of anti-counterfeiting efforts is using packaging solutions that are both secure and reliable. Let’s take a closer look at the types of counterfeiting and the packaging options available to protect brands and consumers.
What is Counterfeiting?
There are two main types of counterfeiting that we’ll focus on:
Packaging Impersonation: Occurs when fraudsters recreate the packaging of popular and trusted brands. The aim is to deceive consumers into believing they are purchasing authentic products from a brand. Counterfeit packaging can closely mimic the design, colors, and labeling of genuine products, making it difficult for consumers to differentiate between authentic and counterfeit items. This poses a risk to a brand’s reputation if counterfeit products are being sold under their name because these fake products usually do not meet a brand’s standards for safety and quality.
Product Tampering: Product tampering involves attempts to alter, manipulate, contaminate, or compromise cannabis products. This poses significant health and safety risks to consumers, especially if harmful contaminants are introduced or if the potency of the product is affected.
Anti-Counterfeiting Options
To combat packaging impersonation, there are a myriad of solutions available. Most solutions aim at making packaging replication difficult. Using holograms on packaging is one option that will increase the difficulty fraudsters will face when trying to duplicate packaging accurately. Holograms can also incorporate additional security features like microtext and unique serial numbers. This further increases the complexity and uniqueness of the package. The complexity, specialized equipment, and materials required to create convincing holograms may deter counterfeiters from even trying to replicate that specific package, as it increases the cost.
Additionally, color changing inks, specifically tamper-indicating inks, can provide a visible indication of tampering. If someone attempts to move or reposition a label, the tamper-indicating ink is triggered and will display a different color indicating that the product may not be valid. Another type of color changing ink technology is photochromic inks. This color changing ink technology can act as an invisible layer of protection. They are only visible under specific lighting conditions and fraudsters may miss adding these to counterfeit packaging. Lastly, digital watermarking is a great option to combat packaging impersonation. These are not visible to the naked eye, but are embedded within your packaging design, for example in your logo. When these watermarks are scanned with specialized software, devices or cell phones, it can allow for verification of authenticity. Not only do digital watermarks help with authenticity, but can add customer interaction as well. When a customer scans the watermark with their smartphone, they can be taken to the brand’s website, a special landing page, and more. To take the level of protection even further, with digital printing it is possible to put a different code in each package which creates unique IDs for one product. These watermarks can even contain important information such as batch numbers, production dates, and more to enable product tracing.
To combat product tampering, a simple solution is using tamper evident bands on containers. Tamper-evident bands fit snugly around the closure of a container and are applied when the product is sealed. The only way the product can be opened is if the band is removed. Tamper evident bands provide visual evidence of tampering to the consumers and also help prevent the container from being refilled and sold. Similarly, tear notches on flexible packaging provide the same benefit that temper bands do. These are small indentations or perforated areas on flexible packaging that provide a visual indicator to consumers if a product has been opened. Both tamper bands and tear notches instill confidence in consumers by ensuring that the product meets brand’s standards for quality and safety. Lastly, using a tamper-evident seal which incorporates color-changing inks to indicate unauthorized access to a package. When the seal is intact, it will remain the original color, however if someone attempts to peel off or break the seal, the ink changes color providing evidence of potential tampering. This technology helps to safeguard products during storage, transportation, and distribution, providing assurance to consumers and protecting against counterfeit or tampered goods.
Best Practices and Conclusion
In addition to implementing the anti-counterfeiting options above, brands in the cannabis industry should consider adjusting their labels and packaging designs to increase the difficulty for replication. Furthermore, educating consumers about the key elements to observe on a brand’s package or label can enable them to detect subtle indications of tampering. By protecting both the packaging and the product, the cannabis industry can preserve its reputation and ensure the success of legitimate businesses.
Member Blog: Safeguarding Cannabis Businesses – Managing Product Liability and Ensuring Consumer Safety
The rapidly expanding cannabis industry presents unique challenges when it comes to managing product liability. As the sector continues to grow, businesses must prioritize quality control, labeling requirements, and consumer safety to protect their reputation and financial well-being. In this article, I will explore the various risks associated with product liability in the cannabis industry and discuss risk transfer strategies to safeguard businesses from claims related to cannabis products. One of the largest misconceptions I hear is that if a client is not making the product, they do not need product liability. Unfortunately, the reality in the industry is that in a product allegation, everyone through the entire supply chain could be named in a suit.
Quality Control and Labeling Requirements:
One of the key challenges in the cannabis industry is maintaining consistent product quality and ensuring accurate labeling. Product liability claims can arise if a consumer experiences adverse effects due to contaminated or mislabeled products. To mitigate these risks, cannabis businesses must implement robust quality control measures specific to what part of the supply chain.
From cultivation to manufacturing and distribution, every stakeholder should prioritize quality assurance practices. This includes regular testing for potency, contaminants, and pesticides. By adhering to rigorous standards, businesses can minimize the chances of their products causing harm to consumers and reduce the likelihood of product liability claims.
Accurate and compliant labeling plays a critical role in managing product liability risks. It’s vital for cannabis businesses to stay informed about the specific labeling requirements in their market, as laws and regulations vary across jurisdictions. Take California, for instance, where non-manufactured products have their own set of requirements, distinct from those for manufactured products. Whether it’s raw flower or gummies, each product category has its own labeling specifications.
Sadly, there have been instances where products were packaged to attract children or imitate popular snack brands. These cases highlight the deceptive packaging that misleads consumers and targets underage individuals. By ensuring proper labeling, businesses can offer transparency to consumers, building trust in their brand. Furthermore, accurate labeling of THC content is crucial to avoid potential product liability and advertising claims. By providing clear and precise information about THC levels, businesses can protect themselves while also meeting consumer expectations.
Consumer Safety and Education:
Cannabis businesses must prioritize consumer safety by providing clear instructions for product usage and appropriate warnings, especially for edibles and other products with specific dosage instructions. Consumers should be informed about potential risks, possible side effects, and any known allergens present in the product. Accessible information to consumers can help reduce the likelihood of product misuse and associated liability claims.
Insurance Strategies for Product Liability:
Product liability insurance is a critical component of risk management for cannabis businesses. The cost of insurance premiums is typically based on gross sales, meaning that the more products a company sells, the higher the associated risk. However, it is important to note that not all insurance policies cover product liability in the cannabis industry. Therefore, businesses should work with specialized brokers who understand the unique risks and challenges in this sector.
In addition to product liability insurance, implementing further risk transfer processes can play a significant role in reducing the likelihood of being involved in a lawsuit. Businesses should establish clear contracts and agreements between cultivators, manufacturers, and distributors, outlining each party’s responsibilities and liabilities. These agreements help allocate risks appropriately and provide a legal framework for dispute resolution.
Overall, managing product liability in the cannabis industry requires a proactive and comprehensive approach. By prioritizing quality control, adhering to labeling requirements, and ensuring consumer safety, businesses can minimize the risks associated with all aspects of the supply chain when it comes to product liability. Additionally, securing appropriate insurance coverage and implementing additional risk transfer processes can provide further protection and peace of mind. As the industry evolves, staying informed and proactive in risk management will be key to long-term success and sustainability in the cannabis market.
For more information, please reach out toValerie Taylor, Vice President, Liberty Company Insurance Brokers.
Committee Insights | 7.26.23 | Concepts for Regulatory Consideration – Shifting the Conversation from “Cannabis vs. Hemp” to “The Cannabinoids”
NCIA’s #IndustryEssentials webinar series is our premier digital educational platform featuring a variety of interactive programs allowing us to provide you timely, engaging and essential education when you need it most.
In this edition of our NCIA Committee Insights series, originally aired on July 26, we were joined by leading cannabinoid product manufacturers and Cannabis Regulators Association (representing cannabis and hemp regulators across more than 40 states and U.S. territories) to examine different approaches to regulating consumer products containing cannabinoids across the US and discuss the potential for harmonized regulations in the future.
Regulating the cannabinoids is difficult enough, but throw in the challenges associated with cannabinoids derived from marijuana or hemp and the challenges can get even more complicated. Not to mention the debate between intoxicating and non-intoxicating cannabinoids and how to address the risks to public health and safety from these different types of cannabinoids. Then you have the proverbial “cherry on top” with how to address cannabinoids, both naturally occurring and novel, being produced by genetically modified organisms and scientists in the lab. There has got to be a logical way to solve this problem.
One potential solution is shifting the conversation away from cannabis vs. hemp and toward the constituents of concern, the cannabinoids. By regulating the cannabinoids, we can focus the debate on what matters, how to regulate cannabinoid ingredients in a way that is proportional to the level of risk to public health and safety. This ensures we have both a functional and vibrant cannabinoid products market and the means to protect consumers.
Learning Objectives:
• Learn about the similarities and differences between marijuana and hemp regulations for consumer products containing cannabinoids
• Find out what a consumer product containing cannabinoids is and how this concept can be used to promote more common sense regulations
• Listen to new perspectives on the challenges facing the cannabinoid-containing consumer products space and how to more efficiently regulate this marketplace
Curious about the complex world of cannabinoid regulation? Sit back and settle in for an insightful webinar where we delve into the challenges (and solutions!) surrounding cannabinoids derived from marijuana and hemp.
Safeguarding Consumers in the Cannabinoid Product Landscape (Part III):
Know Your Hazards – Occupational Health and Safety Considerations in Cannabinoid Ingredient Manufacturing (Part IV): https://bit.ly/3rEUeKP
Committee Blog: The Best Way to Do the Worst Thing – Quick Tips for Demonstrating Empathy in Layoffs
Layoffs are unpleasant for all involved. Not only is it painful for a supervisor to part ways with someone they have hired and trained to be a productive part of the team, but jarring as an employee to suddenly learn that you are unemployed. Although there is no scenario where a layoff is a positive experience, here are some helpful ways to ensure you approach it with empathy and humanity.
Yes, we know it is business, but it is also personal (especially to the employee being laid off).
Think about each person individually and how to make the situation as comfortable as possible. If they work remotely generally, or have a significant commute, consider a virtual meeting. While in-person has generally always been perceived as better, in today’s flexible work environment some employees might be upset about being asked to come into the office, just to be terminated and then drive back home. Think about the physical location you have the conversation (if in-person), as you do not want to put the person in a position to walk past their peers on their way out and offer to ship their personal things to avoid the public packing of the box. Cater your choices to the person being impacted.
If possible, have HR present and give the employee time with HR after the supervisor delivers the news so the employee can ask specific questions about next steps that they may not feel comfortable asking while on the phone with their now previous supervisor. If your company doesn’t have a HR department, consider contracting with someone who can support you if the layoffs impact more than a few people.
Does your benefit plan run until the end of the month after termination? If so, consider planning the separation date toward the beginning of the month so the employee has access to benefits through the rest of the month. Not every company is in the position to provide lucrative separation packages. However, providing a week or two of remote transition time in addition to the severance paid, provides a better transition for the company and also gives the impacted employee more time to job search.
Start the conversation off with letting the person know the discussion will be a difficult one, as this will provide them the opportunity to prepare for the bad news. It can feel disingenuous to have dialogue about work projects, sports, or the weather, and then get into the topic at hand. It is ok to tell an employee who did a great job and contributed a lot, that you appreciate their contributions and that the layoff is not due to their performance. This can matter when they are later reflecting on what transpired.
The communication shouldn’t end after the termination conversation.
Anticipate that it is difficult to process the news that you’ve lost your job and retain what you’ve heard about next steps. Commit to immediately providing the details over email after the discussion so that they can review them whenever they are ready.
Have a separation package prepared that contains all the important information someone might need post-separation. They will want to know about accessing their W2, rolling over their 401k, how long their benefits are active until, how to use their Health Savings Account funds, how to access your HR or payroll system for pay stubs, etc.
Layoffs impact more than those who left.
Make it safe for employees to reach out to those impacted and offer their support and care. When informing stakeholders of the changes, let them know that you wish their colleague well and encourage anyone that wants to reach out, the opportunity to reach out and offer support.
Promises of safety usually cannot be made during times of uncertainty. Often employees will ask “Is that it? Are we done?” These are tough questions in times of uncertainty and caution should be taken when answering them. The worst thing would be to say that there will be no more layoffs, and then someone else gets laid off or terminated. Even if the termination was performance related, it can impact the credibility of leadership if employees feel like the promise was broken.
Encourage leaders to have personal conversations with their team members about how they are feeling. When you are feeling uncertain, you want to hear from the person you trust most. Of course, this needs to come with guidance and support from senior leaders. Senior leaders should role model this, and then their leaders should pay it forward. Tell your most critical players that their role and contributions are important to the organization. If appropriate, explain why the decision was made to reduce or eliminate certain groups so employees can understand the rationale and decide whether that provides them comfort in their position.
Generally, position reductions result in the remaining employees picking up additional tasks. Handle this with care. Have conversations with employees about their workload and include them in the process of solutioning how to cover the tasks.
Unfortunately, “what not to do” lessons are generally learned the hard way when it comes to layoffs, however, through research and reading employee feedback, you can learn a lot from others’ mistakes. If you lead and plan your layoffs with empathy and compassion, you are more likely to avoid major pitfalls.
Member Blog: Move Over Cannabis ERP – This is How You Breakdown Information Silos
As a licensed cannabis company, managing multiple data sources, systems, and processes that must remain in sync and compliant 24/7 comes with challenges not faced by traditional businesses.
Like every other business, however, you rely on a variety of software systems like inventory management, sales tracking, customer relationship management, financial systems, and more. And when these systems don’t communicate well, several issues you’re probably familiar with rise to the surface.
Maybe you’ve had to manually input data from one system into another or get custom code to get different systems to communicate, but these are time-consuming, error-prone, and inefficient. Let’s take a quick look at some of the other problems you’re likely to run into.
Data Inconsistencies: When systems don’t share information, it creates ‘data silos’ with discrepancies occurring everywhere. For example, your inventory system shows you’re out of a particular cannabis product, but a sales system shows overstock and offers the product at a steep discount. These inconsistencies lead to confusion, inefficiencies and lost profits.
Reduced Productivity: Employees manually entering and transferring data between systems is time-consuming and prone to error– the extra effort kills productivity. Don’t forget, staff need to fix those manually input errors manually when they could be working on more important things.
Poor Decision-Making: Blindspots can seriously impact decision-making without a unified view of your business data. If sales data is kept separate from inventory data, as in the example above, making accurate forecasts and planning for future needs is next to impossible.
Customer Dissatisfaction: Customer data should be shared between systems to maintain customer service. A customer could unknowingly purchase a back-ordered product or receive discount promotions for products they’ve already purchased, or the customer service team might need access to a customer’s full history when dealing with inquiries or complaints. It’s easy to see how conflicting or inaccessible customer data could lead to a bad customer experience.
Regulatory Compliance: In this industry, compliance with regulatory requirements is crucial. When integrated tracking and reporting systems are in play, ensuring compliance and avoiding fines or other penalties is much easier.
Increased Costs: The time and effort needed to rectify data inconsistencies and errors increase operational costs, especially when, for example, a cannabis company tries to add additional software to bridge the gaps between two systems. In the end, those two systems may communicate seamlessly, but you’re still left with data silos everywhere.
Cannabis ERP a Traditional Approach?
Until recently, what recommended solution effectively managed the following cannabis business activities?
Human resources
Accounting
Cultivation
Manufacturing
Distribution
Sales teams
Marketing
Retail
A platform called cannabis ERP, right? But there are a few single-suite disadvantages to an ERP solution by itself:
Difficult to select a single solution that fits the needs of the whole company
Longer implementation
Larger up-front Cost
Longer ROI
Requires shared vision by the entire company
Tied to one vendor’s vision & priorities
While a cannabis ERP may still be a great option for some companies, for a growing number of cannabis operators, cross-platform compatibility is a non-negotiable feature in today’s increasingly interconnected digital landscape. So what is the solution?
The New Approach to Cross-Compatibility
Cloud APIs (aka Application Programming Interfaces) are how you achieve cross-platform compatibility because they provide a set of rules and protocols that govern how different software components should interact. This makes it possible for other software systems, which may be built on various platforms and programming languages, to communicate and work together effectively.
In general terms, cannabis businesses might consider the following integrations for their operations:
Seed-to-Sale Tracking API: This type of API integration facilitates the tracking of cannabis plants from cultivation to the final sale, which is important for regulatory compliance. They can assist with inventory management, plant batch tracking, waste tracking, and sales reporting.
Point of Sale (POS) API: These APIs connect the POS system with other business applications like ERPs, CRM, or eCommerce platforms. They facilitate real-time inventory updates, sales data analysis, customer behavior tracking, and regulatory reporting.
eCommerce API: These APIs integrate online sales platforms with other business applications. They can help manage online orders, update inventory in real-time, and streamline shipping and customer service.
Laboratory Testing API: These APIs are useful for pulling test results directly from third-party labs into the company’s main system. They help ensure product quality and regulatory compliance by tracking potency, contaminants, and other metrics.
Payment Processing API: This type of API integration helps cannabis businesses connect with payment gateways that can handle the unique regulations of the cannabis industry. They manage transactions, refunds, and customer data related to payments.
Regulatory Reporting API: These APIs automatically compile and report data to state or national regulatory bodies. This can simplify compliance with the complex regulations that apply to the cannabis industry.
Customer Relationship Management (CRM) API: These APIs help integrate CRM platforms with other business applications, allowing companies to streamline customer communication, manage leads, track customer behavior, and more.
Supply Chain Management API: These APIs allow cannabis businesses to connect their systems with those of their suppliers or distributors, helping to streamline order placement, inventory updates, and other aspects of the supply chain.
Cloud APIs allow different software systems to communicate with each other in a standardized way, automating the sharing of data and functions between systems. With cloud APIs, operators can significantly reduce data silos, cross-platform incompatibility, and integration challenges and move toward a best-of-breed approach.
So, What’s it Really Mean to be Best-of-Breed?
The best-of-breed phrase describes software or technology considered the best or most superior within its specific category, niche, or industry and implies that a software system excels in features, functionality, and performance compared to its competitors.
So instead of picking an all-in-one software like a cannabis ERP, you can choose any software you want, and cloud APIs will connect them.
Imagine having to assemble a dream team for the Olympics. Not just any team… a dream team. Of course, you’d want to select the best players for each position to create the best possible teams, the individuals who consistently perform for the team. Where would you start?
Choosing the top performers for their respective roles puts your team in a position for the highest chance of success. Think about it, when each player brings a unique set of skills and expertise to their job, they ultimately level up to the team’s overall performance.
Seamless Integration: High-Performing Tech Stack for Cannabis Operations
Integrating your preferred systems for tracking inventory, sales, compliance with regulations, etc., is no longer the same headache it once was. With cloud APIs enabling software, applications, and services, you can operate effectively across multiple platforms and systems.
Communicating between systems is important for several reasons:
Greater reach and accessibility: Cross-platform compatibility allows a software or service to be used by a larger user base as it operates on multiple different systems rather than being confined to just one.
Efficiency and cost-effectiveness: By ensuring their solutions are cross-platform compatible, developers write code once and deploy it across multiple platforms, which saves time and resources in development and maintenance.
Improved user experience: With cross-platform compatibility, users interact with a service or application on the platform of their choice, leading to a better user experience.
Cannabis has so many different verticals within, and so many different pieces of specific software need to talk to each other, you need someone to integrate your cloud, a partner that you can grow with.
It’s a growth strategy, improving decision-making and transparency with software solutions that fit today’s and future needs
Companies can buy software in phases
A modularized software approach grows and changes with you
Supports flexibility and high-growth
Rolled out in non-sequential phases
Departmental decision making
One partner, but not tied to one system
Functional-specific support
The one size fits all methodology has passed with the increased adoption of cloud technology with the Best of Breed approach saving you time and money. With superior levels of accuracy, transparency, and automation, you can finally streamline business processes that allow you to capitalize on growth.
Canna Suite’s single-partner approach for software selection, integration, support, and reporting means you can select different software solutions that fit each department’s needs. If you’d like to learn more about breaking down your data silos, check out our recorded webinar.
Committee Insights | 7.13.23 | Know Your Hazards – Occupational Health and Safety Considerations in Cannabinoid Ingredient Manufacturing
NCIA’s #IndustryEssentials webinar series is our premier digital educational platform featuring a variety of interactive programs allowing us to provide you timely, engaging and essential education when you need it most.
In this edition of our NCIA Committee Insights series, originally aired on July 13, we were joined by members of NCIA’s Cannabis Manufacturing, Scientific Advisory and Hemp Committees for an in-depth discussion highlighting the occupational health and safety considerations to make during the manufacture of cannabinoids and provide recommendations for mitigating risk.
There is no mistaking that manufacturing cannabinoids is here to stay. It is more and more prevalent to see historically plant/naturally derived bulk ingredients being manufactured in a controlled environment in the lab or through innovative processes like precision fermentation. It is likely that bulk ingredient manufacturing of cannabinoids will go this route too.
For cannabinoids like HHC, that do not exist naturally in the plant or in high enough quantities to be commercially viable for extraction, it is most certainly the case that manufacture of these compounds will occur in the lab. To produce these compounds safely, we can luckily look toward existing regulations and occupational health and safety guidelines for producing novel ingredients for use in foods and non-foods.
Learning Objectives:
• Recognizing common occupational safety hazards associated with manufacturing cannabinoids and recommendation to mitigate these hazards
• Learning the different occupational safety considerations between isolation and purification of naturally occurring cannabinoids and the manufacture (synthesis) of cannabinoids in the lab
• Understanding the special safety considerations that processes like hydrogenation and others have and why these are critical to mitigating liability for your business
Safeguarding Consumers in the Cannabinoid Product Landscape (Part III):
Know Your Hazards – Occupational Health and Safety Considerations in Cannabinoid Ingredient Manufacturing (Part IV): https://bit.ly/3rEUeKP
Concepts for Regulatory Consideration – Shifting the Conversation from “Cannabis vs. Hemp” to “The Cannabinoids” (Part V): https://bit.ly/3P3r5AW
Member Blog: Protect Your Cannabis Intellectual Property to Stay Competitive in a Changing Landscape
In 2021, massive China-based e-cigarette manufacturer Shenzhen Smoore Technology Limited (the parent company of CCELL) initiated a proceeding before the US International Trade Commission (ITC) in which it alleged that Advanced Vapor Devices (AVD) and 37 other vape hardware companies infringed upon its patents.
After roughly a year and a half of legal proceedings, the ITC ruled that the vape hardware companies did not infringe on CCELL’s intellectual property related to ceramic core vape cartridges. This was a victory for not only the US cannabis vaping sector but the cannabis industry as a whole.
From our perspective, CCELL’s litigation appeared as an attempt to drain competitors’ resources and eliminate competition. By refusing to stand aside, we were ultimately vindicated by the ITC’s ruling.
The Implications of CCELL’s ITC Proceeding
CCELL alleged that AVD and the other respondents had infringed upon three of its patents. However, the ITC ultimately ruled that one of CCELL’s patents was improperly obtained and the respondents’ products did not infringe on the other two patents. The ITC also determined that CCELL failed to establish a “domestic industry,” which is required for ITC claims since such proceedings are designed to protect US interest in fair trade.
The more worrisome part is that, had CCELL been successful in proving its allegations, the ITC would have barred the importation of the infringing products, resulting in CCELL gaining a stranglehold on ceramic core vaporization technology. This would have had a far-reaching impact on the broader vape industry. By eliminating the competition, CCELL would have placed itself in a position to control the market, pricing, and timing of new product releases. Inevitably, customers would have faced the prospect of higher prices and slower innovation cycles—both natural results of decreased competition.
We firmly believe consumers deserve the innovation, variety, quality, and fair pricing that competition brings. In our view, the industry is large enough to handle fair competition. Commercial success should come as a result of offering better products, service, and prices—not from using litigious tactics to drain competitors’ resources.
How the Vape Industry Fought Back
Our response to the lawsuit involved deep intellectual property (IP) research and engaging the right advisors, without whom we could not have succeeded while shouldering the burden of the litigation. During the litigation, we continued to capture further market share, gain clients and support our current clients by doubling down on our strategy of creating high-quality products and delivering exceptional customer service.
Operating from a cannabis-centric perspective that does not appreciate a bully in the industry, we put together a joint defense group, including The Blinc Group and Greentank, among others. After all, we are competitors—not enemies.
Together, we’re able to cooperate on policy reform, laws and lobbying that benefit the entire industry and prevent monopolies. All while maintaining healthy competition that promotes innovation. When push came to shove, the vape industry proved that cannabis companies could successfully work together in the industry’s best interest.
A Catalyst to Focus on IP Now
The ITC case should be a wake-up call to cannabis companies to focus on developing and protecting their own intellectual property. Developing and owning IP grants companies a competitive advantage in the marketplace that protects their novel inventions.
Companies outside of cannabis certainly understand this. Merely securing a cannabis-related patent does not violate any federal laws. Companies in other industries (pharma, agriculture, CPG, etc.) can and already have started to gain a toehold in cannabis through their IP.
If anything, the ITC case is a preview of things to come. If cannabis companies don’t get ahead of the curve, they may find themselves as the targets of successful infringement proceedings. Worse, this could result in them being unable to bring certain products to market.
Some of these cases will be valid—companies deserve to reap the rewards of real innovation arising from investments in R&D. Some will be trolling. Yet others will be similar to our situation, where a well-capitalized company uses its resources to put competitors through the wringer. To be clear, earning and enforcing patents is, for the most part, good practice. Patents incentivize innovation and stimulate healthy competition by rewarding parties who create novel inventions. Those patents encourage competitors to come up with their own innovations. If a technology is unavailable because it’s patented, competitors are forced to invest more in their own R&D to create their own innovations. This becomes a flywheel as all companies try to out-innovate each other, ultimately benefiting consumers. But it is critical to not abuse the process and not allow others to do so either. Healthy competition promotes true innovation. And that benefits all of us.
IP will be a key factor in shaping the industry’s future. Despite the multitude of present-day challenges our industry faces, it is crucial for companies to prioritize investment in IP if they are aiming for longevity. Many companies look at the costs associated with IP as an operating expense, while it would more appropriately be viewed as an investment. You must devote the resources now to have differentiated, innovative and proprietary products in the future.
Member Blog: Understanding Alfalfa Mosaic Virus – The Four Key Aspects of its Symptoms, Effects, and Transmission Strategies
As a cannabis cultivator, staying vigilant about the health of your crops is paramount. Among the array of plant viruses that can impact your harvest, the Alfalfa Mosaic Virus (AMV) stands out as a considerable threat. This formidable plant virus primarily affects leguminous crops, but it doesn’t spare cannabis. Part of the Alfamovirus genus in the Bromoviridae family, AMV can inflict serious economic losses in agricultural settings.
Four Key AMV Symptoms
Recognizing AMV in your cannabis cultivation starts with understanding the symptoms. Here are the four major signs you should be on the lookout for:
Mosaic Patterns: Watch out for irregular light and dark green areas on the leaves. This mottling gives the foliage a unique marbled appearance, indicating a potential AMV infection.
Leaf Yellowing: One of the classic signs of plant stress, leaf yellowing, can signal an AMV infection in your cannabis plants. This can range from mild to severe and may occur independently or alongside mosaic patterns.
Stunted Growth: Is your cannabis crop not reaching its usual height? This could be due to AMV infection, as it often stunts plant growth.
Leaf Distortion: AMV may also cause cannabis leaves to become twisted, curled, or deformed, disrupting their photosynthetic abilities.
The severity of these symptoms can vary depending on the plant’s developmental stage and the specific environmental conditions. For professional guidance, contact us at (530) 220-8754.
Four Critical AMV Effects
AMV can significantly impact your cannabis cultivation efficiency and yield. The primary effects of an AMV infection include:
Reduced Yield: AMV interferes with normal cannabis growth, often leading to a reduction in productivity and a lower overall yield.
Decreased Crop Quality: Visible symptoms like mosaic patterns and leaf yellowing can impact the visual appeal of your cannabis crops, potentially affecting their market value.
Impaired Photosynthesis: The virus-induced symptoms can disrupt chlorophyll function, causing a decline in the photosynthetic capacity and overall weakened growth.
Weakened Plant Health: AMV can compromise the immune response and physiological functions of your cannabis plants, making them more susceptible to secondary infections.
Four Modes of AMV Transmission
Controlling AMV in your cannabis crops involves understanding how the virus spreads:
Non-Persistent Aphid Transmission: In this type of transmission, aphids act as carriers of the virus without being affected or changed by it. The virus attaches to the mouthparts (stylets) of the aphid and is transferred to the next plant when the aphid feeds. The key aspect of non-persistent transmission is its speed; the virus can be transmitted quickly, usually within minutes to a few hours of the aphid feeding on an infected plant. This type of transmission does not require the virus to enter or multiply within the body of the aphid.
Persistent Aphid Transmission: This type of transmission involves a longer-term relationship between the virus and the aphid. The aphid ingests the virus, which then enters the insect’s body and may even multiply within it. The virus remains within the aphid for extended periods, sometimes for the lifespan of the aphid. The virus is then passed to healthy plants when the infected aphid feeds on them. The transmission process in this case is slower than in non-persistent transmission, often taking hours to days before the virus can be passed on to a new host plant.
Mechanical Transmission: This refers to the physical transfer of the virus from an infected plant to a healthy one, often through human activities. It can occur when farming tools or machinery contaminated with the virus are used across multiple plants, leading to the spread of AMV.
Infected Plant Material: This involves the transmission of the virus via seeds, cuttings, or other parts of the plant that are already infected with AMV. Such materials can carry the viral particles, thus spreading the virus to new plants.
In conclusion, understanding the Alfalfa Mosaic Virus (AMV) is crucial for cannabis cultivators. Recognizing the symptoms, understanding its effects, and knowing its modes of transmission are the first steps to protecting your crops and ensuring a healthy yield. Regular testing, early detection, and proper disease management practices can help you mitigate the impact of AMV in your cannabis cultivation.
Please, ensure you are taking all necessary steps to keep your cultivation safe, as well as our community. Plant pathogens are an enemy we all face, and we all must take responsibility for preventing and educating one another. That’s why we’ve developed a downloadable poster for you to keep your cultivation crew informed about top-tier Biosecurity Measures for Plant Pathogen spread prevention.
Let’s continue to grow safe and healthy cannabis!
Member Blog: Transportation Woes – The Unique Risks Cannabis Businesses Face and the Need for Specialized Insurance
In recent years, the cannabis industry has continued to grow with the legalization movement gaining momentum across the globe. As the market expands, so do the unique risks that cannabis businesses face, particularly when it comes to transportation. From theft and accidents to regulatory compliance, navigating the road to success in the cannabis industry requires adequate insurance coverage. In this blog post, I will explore the specific risks cannabis businesses encounter during transportation and the increasing importance of insurance products tailored to these challenges.
The Rising Threat of Theft
Protecting your valuable cargo from theft is a constant concern for cannabis businesses, especially during transportation. The high value of cannabis products makes them an attractive target for criminals. With high value products and cash amounts involved, the consequences can be devastating. That’s why it’s crucial for cannabis businesses to invest in insurance policies that specifically address theft risks during transportation. These policies can provide coverage for stolen goods, ensuring that businesses can recover from such losses and continue to thrive.
On the Road
Whether a retail delivery or wholesale distributor, transporting cannabis comes with its own set of challenges, particularly when it comes to employee safety, accidents and liability. Cannabis businesses must comply with strict regulations regarding transportation, including proper labeling, packaging, storing, tracking and secure transport methods. Additionally, accidents involving cannabis delivery vehicles can result in property damage, bodily injury, or even fatalities. Insurance products tailored to cannabis transportation risks can provide coverage for these eventualities, protecting businesses from costly lawsuits and providing peace of mind.
Staying Compliant
Navigating regulatory compliance with ever-changing regulations is a top priority and can be a challenge for any cannabis business. When it comes to transportation, the rules can be even more complex. Each jurisdiction has its own set of regulations governing cannabis transportation, such as licensing requirements, transport manifest requirements, and restrictions on the quantity of cannabis allowed per shipment. Failure to comply with these regulations can lead to significant penalties or even the suspension or loss of a cannabis license. Insurance products designed for the cannabis industry can help businesses stay compliant by providing coverage for regulatory fines and legal expenses.
Tailored Insurance
Meeting the unique needs of the cannabis industry and recognizing the unique risks faced by cannabis businesses, insurance providers have developed specialized products to address these challenges. Cannabis transport insurance policies offer elements of risk transfer strategies by providing comprehensive coverages, including theft, auto damage, liability and employee injury, while simultaneously meeting regulatory compliance issues. These tailored insurance solutions are essential for cannabis businesses, providing financial protection and ensuring business continuity in the face of inherent risk.
In general, the transportation of cannabis presents unique risks for businesses operating in the industry. From the constant threat of theft to accidents and regulatory compliance challenges, cannabis businesses must be prepared to face these risks head-on. Insurance products tailored to the specific needs of the cannabis industry offer crucial protection, allowing businesses to navigate the road to success with confidence. Investing in this insurance is not just a wise business decision — it is an essential step towards safeguarding the future of your cannabis business.
Member Blog: The Importance of Storing Cannabis Properly
Cannabis is affected by humidity.
Yes, cannabis is definitely affected by humidity. Cannabis plants are sensitive to changes in temperature and humidity levels, both during cultivation and after harvesting.
During cultivation, cannabis plants need a specific range of temperature and humidity levels to thrive. Too much humidity can lead to the growth of mold and mildew, while too little humidity can cause the plants to dry out and become brittle.
After harvesting, cannabis buds need to be dried and cured to preserve their quality and potency. During this process, it is important to control the humidity levels to ensure that the buds dry slowly and evenly. If the humidity levels are too high, the buds can become moldy, while if they are too low, the buds can dry out too quickly and lose their potency.
In addition, the humidity level can also affect the storage of cannabis. If the humidity levels are too high, it can cause the buds to become moldy, while if they are too low, it can cause the buds to become brittle and lose their flavor and potency.
Therefore, it is important to control the humidity levels during the cultivation, drying, curing, and storage of cannabis to ensure that the buds are of high quality, potent, and safe for consumption.
How can dry cannabis lose potency?
When cannabis is dried and cured, it naturally loses moisture. However, if the cannabis becomes too dry, it can begin to lose potency.
This is because the active compounds in cannabis, such as THC and CBD, are stored in the trichomes on the surface of the buds. When the buds become too dry, the trichomes can become brittle and break off, causing the loss of these valuable compounds.
In addition, when cannabis becomes too dry, it can also affect the flavor and aroma of the buds. The terpenes, which are responsible for the characteristic smells and tastes of different strains, can degrade over time if the buds are too dry.
Therefore, it is important to store cannabis at the correct humidity levels to ensure that it stays fresh and potent. The ideal humidity range for storing cannabis is between 59% and 63% relative humidity. If the buds become too dry, you can try to rehydrate them by adding a humidifying device, such as a moisture pack, to the storage container. However, it is important to be careful not to add too much moisture, as this can cause the buds to become moldy or develop other quality issues.
Cannabis potency versus humidity
The potency of cannabis can be affected by humidity levels. When cannabis is stored at a high humidity level, it can cause the breakdown of THC and other cannabinoids, decreasing potency. On the other hand, if cannabis is stored at a low humidity level, it can cause the buds to become dry and brittle, which can also lead to a decrease in potency.
Therefore, it is important to store cannabis in a controlled environment with the appropriate humidity level. This can be achieved using specialized storage containers, such as airtight jars or humidors, designed to maintain a consistent humidity level. It is also important to monitor the humidity levels regularly and adjust as necessary to ensure that the cannabis stays fresh and potent.
Cannabis taste versus low humidity
When the terpenes are lost, the flavor of the cannabis can become harsh, bitter, or stale. This can make the smoking experience less enjoyable and may also indicate a decrease in potency.
If the buds have become too dry, it is possible to rehydrate them by adding a humidifying device, such as a moisture pack, to the storage container. However, it is important to be careful not to add too much moisture, as this can cause the buds to become moldy or develop other quality issues.
Committee Blog: Defining Legal Hemp – It Isn’t Always Simple Math
If you are a cannabis-related business, and are looking to accept credit cards, it is only possible to do so if you are selling a product that is defined as legal hemp by the 2018 Farm Bill.
The 2018 Farm Bill provides that:
“The term ‘hemp’ means the plant Cannabis sativa L. and any part of that plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta-9 tetrahydrocannabinol concentration of not more than 0.3 percent on a dry weight basis.”
For the most part, it’s pretty cut-and-dry. Marijuana is a schedule 1 drug. Hemp is not. If your product has less than .3% Delta-9 on a dry weight basis, it’s not marijuana, it’s hemp. And since it’s hemp, it’s federally legal. And since it’s federally legal, it can be purchased with checks, credit cards, or debit cards. Hemp products are, reductively, as incendiary as a stick of butter.
Of course, there is the law and there is how acquiring banks—banks that offer merchant accounts—interpret the law. Across the U.S., there are hundreds of acquiring banks. Of those, only six or seven offer merchant accounts to hemp businesses.
That’s it, plus payment service provider Square.
The immediate problem for the few acquiring banks that have, laudably, said, “Yes,” to hemp is, “how do we distinguish products that are .3% Delta-9 or less (and therefore, yawningly legal) from those that are over .3% Delta-9 (and therefore, illegal as angel dust)?”
Enter the Certificate of Analysis, or COA, or lab report. While there is nothing in the law stating that COAs are required to prove that a product is within the federally legal limit, their role is sacrosanct during the boarding process. For every hemp-derived product, there must be a corresponding COA proving that the product being sold is hemp, and not marijuana.
Fortunately, there are labs across the nation. The U.S. Department of Agriculture website lists 85, as of May 2023. Manufacturers and businesses ship their samples to these labs. The labs run their tests and the COAs are issued.
Simple, right?
Not really.
There are no standards in place for these reports. No templates. Every laboratory’s COAs—while substantively providing the same information—look a little different. Furthermore, most bankers haven’t seen a lab report since high school chemistry, and you’ve got a recipe for confusion or misunderstanding (frequently both).
This COA, when it was initially presented to the bank, was rejected. To the underwriter, it was an open and shut case.
When the bank opened its door to offering acquiring to hemp businesses, its policy was to reject anything with greater than .3% Delta-9 by weight.
The top of this COA showed an instance of Delta 9 that read .189%. That passed muster, certainly. However, when he delved further into the analyte detail, he noted additional Delta-9 figures in excess of the .3% limit:
10.368 in the mg/unit cell
1.892 in the mg/g cell
It was not clear to the bank’s underwriter which of the two—per-unit or per-gram—corresponded with the by-weight percentage he was to be mindful of, but both were certainly over the .3% limit.
So, open and shut case: DECLINED
The salesperson that brought the merchant to this bank was surprised by the rejection. He hadn’t looked at the COAs very closely, but it seemed unlikely that this merchant had been selling products on her website that were in excess of .3% Delta-9.
Why? Because if the merchant had been selling products on its website in excess of .3% Delta-9, it would have been engaging in egregious felony drug trafficking. The salesperson doubted that was the case.
The salesperson did something he didn’t normally do: he took out his calculator.
He wanted to know why it read .189% Delta 9 at the top, but 10.368 in the analyte table. He noted the unit size at the bottom of the page was a gummy weighing 5.480g.
For the sake of simplicity, he multiplied that by 1000 to convert it to milligrams. That made it 5480 mg
Then he entered the onerous 10.368mg from the mg/unit figure in the analyte table and divided it by 5480mg. The resulting calculation netted the following total: .0018919.
Next, he converted it to a percent, and found that the result was .189%, which matched the figure at the top of the COA, exactly.
The next day, the salesperson presented the COA to the bank, with the markings and The Equation just as shown here.
It was an open and shut case: ACCEPTED
This situation is an example of why banks and credit unions unknowingly reject compliant hemp businesses from merchant processing solutions. As stated, a simple mathematical calculation was the difference between being accepted or rejected for necessary merchant processing services. Without proper merchant servicing not only are cannabis businesses’ profitability affected because they can only take cash; cash is also not as traceable or auditable as electronic transactions.
In general, businesses providing services to the cannabis industry are often challenged with disentangling legal risks with the benefits of their necessary services providing more transparency. With enhanced knowledge of the cannabis industry and its parameters, the cannabis industry will recognize a greater participation by all businesses necessary for the life of the industry thereby enhancing cannabis businesses’ likelihood to succeed but also enhancing the legitimacy and regulation of the industry.
Member Blog: Exactly How – and When – Does Glove Contamination Occur?
Justine Charneau, Head of Cannabis Industry Sales, Eagle Protect
Cannabis workers who regularly wear disposable gloves have every right to be surprised – shocked even – that the products they’re pulling from an unopened box may be contaminated with any number of harmful pathogens and chemicals, yeast species, or a variety of distinct genera of fungi – all of which are capable of leading to costly product recalls. After all, these gloves just came out of a brand new box, completely unused. But that’s precisely what a multi-year metagenomic testing and analysis study recently uncovered about contamination threats on the interior and exterior surfaces of nitrile gloves.
The threats were present because the gloves were contaminated prior to packing and shipping them to your supplier. contamination occurs during the manufacturing stage due to glove manufacturers operating in sub-standard facilities, compounded by their efforts to cut corners and save costs during the production process. Below, we trace the arc of surface pathogen transmission – from its primary source to the end user.
Polluted Water Sources
How does contamination first enter the manufacturing supply chain? In both a figurative and literal sense – the biggest threat comes from upstream. Many overseas glove manufacturers aren’t operating with clean water sources, using putrid water which can be polluted with agricultural fertilizers and pesticides, as well as industrial wastewater and both human and animal sewage. Glove manufacturing uses an abundance of hot water in several phases of production, so polluted water sources contribute to contamination.
Inferior Raw Materials
Contamination can be introduced with poor quality raw materials. While it saves money, gloves produced with cheap materials can include toxic chemical compounds and other unsafe filler ingredients. Chemical contamination in gloves caused a recent cannabis recall. Inferior raw materials can also greatly decrease the durability and performance of the glove and can easily cause skin irritations for the glove user.
Former Cleaning & Drying
The threat of contamination is further compounded when manufacturers fail to raise the water tank temperatures high enough to kill microbes. Formers, the ceramic, hand-shaped molds used in glove manufacturing, undergo cleaning processes involving hot water and bleach. When the water temperature and chlorine concentration aren’t high enough, or, if the wash water and brushes are not thoroughly cleaned between production stages, microbial contamination can occur.
Inadequate Drying Procedures
Following the former cleaning and drying stage, gloves are vulcanized (heat-treated) in ovens to both strengthen and elasticize them. Gloves are then subjected to the drying process in large industrial ovens that also require routine cleaning. But for some glove manufacturers , simply shortening the drying cycle in tumblers that aren’t routinely cleaned can slash utility costs. The result? These inadequate drying procedures leave products damp, where they’re much more susceptible to airborne microbial contamination.
The Packing Room
After the drying stage, gloves are boxed. New tech manufacturing does this automatically, however, gloves can also be packaged in unhygienic or unsanitary open-air packing rooms where human skin contaminants, including fecal matter, can contaminate gloves. These unsanitary conditions can further expose gloves to contamination, right before they’re packed into boxes.
As you can see, each of the production stages in the glove manufacturing process comes with its own set of contamination risks. If you’re inclined to think that government and industry regulations, oversight, and compliance requirements are designed to prevent such contamination risks, you’re going to be sorely disappointed. But that’s a topic for the next blog in our contamination series, so stay tuned.
Member Blog: Pre-Roll Market Industry Trends and Growth Potential
Having the ability to identify trends in the cannabis industry is vital for producers to build a successful brand, and the biggest trend in ther cannabis industry right now is pre-rolls. Growing at 12% YoY in the US and 38% YoY in Canada, pre-rolls are the fastest growing cannabis product in the world of legal cannabis, and it’s not close.
This trend could be chalked up to a sudden rise in popularity and as something that will decline once another hot trend appears; however, we believe that the rise of pre-rolls is more than just a flash in the pan. In fact, after looking over the sales data we received from Headset, we believe that pre-rolls will not only continue their growth, but they will become the bestselling cannabis products by 2030.
Here’s why!
Prices Fall, Sales Rise, Both Stabilize
Over the past few years, the wholesale price of flower has dropped dramatically in mature markets, and cheaper cannabis costs have allowed producers to source higher quality flower for their pre-rolls. Combined with the advances in pre-roll making machinery, quality pre-rolls are now able to be sold at a lower retail price, which has driven strong growth for the category.
As you can see from the graph, pre-roll sales have steadily increased as prices have fallen, but the last two years have seen both sales and prices begin to stabilize. The pre-roll segment that has seen the most growth during this time is infused pre-rolls. Customers love high THC percentages, and producers are happy to finally be able to offer it to them in an affordable pre-roll form.
Pre-Rolls have the Least Amount of Price Compression
It’s not just pre-roll prices that are falling. Prices are down across the board, but even though prices for all cannabis products declines over time, pre-rolls are showing the least amount of price compression. In other words, if you are in the business of selling cannabis, and you are worried about declining margins, pre-rolls are a category you should be expanding into to maintain and boost profitability.
You can also see from the graph that Canada has actually seen the average price of a pre-roll increase, but there is nuance to this data. This does not mean that pre-rolls are getting more expensive for Canadian consumers. This data shows just how popular infused pre-rolls are becoming. They are becoming so popular that people are choosing to buy them over regular, more affordable pre-rolls, and that change in buying habits has increased the average sales price for pre-rolls.
Pre-Roll Multi-Packs
Another interesting trend we see in the sales data is that pre-roll multi-packs have become extremely popular. In 2018, multi-packs of pre-rolls only made up 27.7% of the market in Oregon, Washington, and Colorado. By 2023, multi-packs make up 47.62% of the market—representing a growth of about 20% over 5 years. Also, Since 2021, we have seen an almost 400% growth in multi-packs that have a volume of 2 or 5 grams as well as steady growth across most other sizes.
Buying pre-rolls by the pack is a lot more convenient for consumers. It means not making a special trip to the dispensary every time a pre-roll is wanted. The rise in their popularity is a sign that consumers are investing in pre-rolls as a staple in their cannabis routine. Because they know they will continue to enjoy pre-rolls, they buy multiples at a time for convenience, and it’s this kind of product loyalty that moves a product from a trend into something more.
Wallet Share by Age
Another interesting thing about pre-rolls is that, when it comes to wallet share, they are the most consistent product segment across all age groups. Other products show a significant increase or decrease in popularity with each new generation; however, pre-rolls steadily hover between 12.8% and 14.5% in each group and even show a slight increase with the younger generations.
It’s also important to note the decline of flower with younger generations. Why this is significant is because, at their core, pre-rolls are a flower product, and they are not following the same decline in sales. They distinguish themselves from loose flower by providing consumers a way to enjoy their flower without extra paraphernalia. In this way, we think pre-rolls could start to eat into the flower market, as they better meet the consumption needs of flower customers.
Pre-Roll Attachment Rates
Another big reason why pre-rolls will remain a dominant product segment in the future is that they are the perfect add-on item at the point of sale. The data shows that, when a person walks into a dispensary, they will add-on a pre-roll 15.5% to 23.3% of the time. In fact, in all product segments, pre-rolls either have the highest attachment rate or are within a single percentage point of the leader.
In other words, no matter what a customer is interested in purchasing, it doesn’t take a lot of convincing to get them to add on a pre-roll. They’re reasonably priced, made with quality materials, and incredibly convenient. Whether they want to consume it right away or want to save it for later, pre-rolls have become something flower lovers like to have on-hand for whenever, and that makes it more than a trend. That makes it a staple.
Convenience Impacting Pre-Roll Purchasing
Cannabis is starting to make its way into mainstream culture. You can’t buy it at your local grocery store, like you can buy wine or cigarettes, but it’s out there. The legalization of cannabis has opened the door to innovation in the cannabis industry, and those innovations are starting to have an impact on everything—especially consumption.
Flower needs paraphernalia to be consumed, and, if you are just trying to enjoy cannabis, sometimes you just don’t want the hassle. Pre-Rolls are unique in that they offer the consumer flower as well as a way to consume it, so it’s not too much a leap to think that pre-roll could keep expanding and start eating into flower sales.
In this way, cannabis can be compared to tobacco. Even though people can buy loose tobacco and roll their own cigarettes or use a pipe, most people are buying pre-rolled products. Even though the tobacco quality, smoking experience, and price point can be better when you buy loose tobacco, most people are choosing the convenient option. It shouldn’t surprise us that cannabis starting to fall into this pattern as the market matures.
Final Thoughts on The Pre-Roll Market
The data lets us know that pre-rolls are doing amazing things when it comes to sales, but it is also giving us hints as to trends in consumption methods. Pre-rolls are a flower product, and it’s clear from the data that flower consumers are buying into the convenience of pre-rolls. This is more than just a trend, but a shift in the preferences around flower consumption. Because of this shift, we can see pre-rolls taking on a more prominent role as the cannabis industry continues its expansion.
For a more in-depth look at the pre-roll industry, be sure to check out the State of the Pre-Roll White Paper, and, if you have any questions, feel free to reach out to the Pre-Roll Experts at Custom Cones USA.
Committee Blog: Optimizing the Cannabis Dispensary Experience – An In-depth Look at Terpenes, Cannabinoids, and THC for Superior Customer Service
The cannabis industry has experienced rapid growth in recent years, with more and more states legalizing its use for medical and recreational purposes. As a result, cannabis dispensaries are becoming increasingly popular, with many people visiting them for the first time. For dispensary owners, managers, and budtenders, it’s essential to provide a positive customer experience to build brand loyalty and attract repeat business. This blog will discuss the importance of focusing on the customer experience at cannabis dispensaries and how understanding terpenes, cannabinoids, and THC percentages can improve the overall experience for both new and experienced users.
Understanding the Customer Experience
What makes a great customer experience at a cannabis dispensary? A positive experience can be characterized by:
Knowledgeable Staff:
Budtenders and other staff members should be well-trained and able to provide accurate and easily digestible information on various cannabis products, including their effects and appropriate dosages.
Welcoming Atmosphere:
Dispensaries should be clean, well-organized, and aesthetically pleasing, making customers feel comfortable and at ease during their visit.
Product Selection:
A wide variety of high-quality cannabis products should be available to cater to the diverse preferences and needs of customers.
Personalized Recommendations:
Budtenders should be able to make personalized recommendations based on the customer’s preferences, desired effects, and level of experience with cannabis.
Terpenes, Cannabinoids, and THC: Key Components of Cannabis
To provide an exceptional customer experience, it’s essential for dispensary staff to understand the key components of cannabis, including terpenes, cannabinoids, and THC percentages. These components play a significant role in the overall effects of cannabis and can help staff make tailored recommendations for customers.
Terpenes:
Terpenes are aromatic compounds found in many plants, including cannabis. They give each strain its unique aroma and taste, and they can also have therapeutic effects. There are over 100 different terpenes in cannabis, with some of the most common ones being myrcene, limonene, and pinene. Understanding the terpene profile of a specific strain can help staff recommend products based on the desired flavor and aroma, as well as the potential therapeutic benefits.
Cannabinoids:
Cannabinoids are the chemical compounds found in cannabis that interact with the body’s endocannabinoid system, producing various effects. Many Cannabis products advertise “full-spectrum” CBD, meaning that the product not only contains CBD, but can also contain the other cannabinoids as well as terpenes, essential oils, and up to 0.3% THC. There are over 100 different cannabinoids in cannabis, with THC (tetrahydrocannabinol) and CBD (cannabidiol) being the most well-known. THC is responsible for the psychoactive effects of cannabis, while CBD has various therapeutic effects without causing a “high.” Dispensary staff should be familiar with the different cannabinoids and their effects to help customers choose products based on their desired experience.
THC Percentages:
The THC percentage of a cannabis product indicates the concentration of THC, which largely determines the psychoactive effects of the product. Generally, higher THC percentages lead to more potent effects. However, it’s important to note that the overall effects of a cannabis product are influenced by other factors, such as the terpene profile and the presence of other cannabinoids. Dispensary staff should be able to explain the significance of THC percentages and guide customers in selecting products with appropriate potency levels.
Educating Customers and Tailoring Recommendations
Dispensary staff should prioritize educating customers about terpenes, cannabinoids, and THC percentages to help them make informed decisions about their purchases. By understanding these components, customers can better tailor their cannabis experience to their preferences and needs.
For example, a customer looking for a relaxing experience may be interested in a strain high in myrcene, a terpene known for its sedative and relaxing effects. In contrast, someone seeking a more uplifting and energizing experience might prefer a strain with a higher concentration of limonene, which is associated with elevated mood and increased energy. Additionally, customers with little to no experience with cannabis may prefer strains with lower THC percentages to avoid overwhelming psychoactive effects.
When assisting customers, dispensary staff should ask about their preferences, desired effects, and experience level with cannabis. Based on this information, they can recommend strains and products that align with the customer’s goals while considering the terpene profile, cannabinoid content, and THC percentage. This personalized approach can help customers feel more confident in their purchases and lead to a more satisfying experience.
For HR Professionals: Training and Development
To ensure that dispensary staff can effectively educate customers and provide tailored recommendations, it’s crucial for HR professionals to invest in comprehensive training and development programs. Training should cover a wide range of topics, including:
Cannabis Fundamentals:
Staff should have a solid understanding of cannabis basics, such as the differences between indica, sativa, and hybrid strains, and the various forms of cannabis product, methods of ingestion and their varying timing of effects (e.g., flower, edibles, concentrates, tinctures, and topicals, vaping, eating, and drinking).
Terpenes, Cannabinoids, and THC:
As discussed earlier, staff should be well-versed in the role of terpenes, cannabinoids, and THC percentages in determining the effects of cannabis products.
Customer Service Skills:
Staff should be trained in effective communication, active listening, and empathy to better understand and serve their customers.
Compliance and Regulations:
Dispensary staff should be knowledgeable about state and local regulations regarding cannabis sales, as well as safety protocols and best practices for handling cannabis products.
By providing thorough training and development opportunities, HR professionals can ensure that dispensary staff are equipped to deliver an exceptional customer experience.
The Role of Technology in Enhancing the Customer Experience
As the cannabis industry continues to grow and evolve, technology is playing an increasingly important role in enhancing the customer experience at dispensaries. In this section, we’ll explore several innovative technologies and tools that can help dispensary owners, managers, and staff provide an even better experience for their customers.
Point-of-Sale (POS) Systems:
Modern POS systems designed specifically for cannabis dispensaries can streamline the sales process and improve the customer experience. These systems can track customer preferences, manage inventory, calculate taxes, and ensure compliance with state and local regulations. By investing in a robust POS system, dispensaries can provide a more efficient and personalized service for their customers.
Digital Menus:
Instead of relying on printed menus that can quickly become outdated, dispensaries can use digital menus to display their product offerings. These menus can be easily updated to reflect current inventory, and they can also include detailed information about each product, such as terpene profiles, cannabinoid content, and THC percentages. By providing customers with easy access to this information, digital menus can help them make more informed decisions about their purchases.
Online Resources and Mobile Apps:
Dispensaries can enhance the customer experience by offering online resources and mobile apps that provide valuable information and tools related to cannabis consumption. For example, they can develop educational content about terpenes, cannabinoids, and THC percentages or create interactive tools that help customers determine their ideal dosage based on their preferences and experience level. By providing customers with access to these resources, dispensaries can support them in their cannabis journey and help them make more informed decisions.
Customer Engagement and Community Building
Another crucial aspect of providing an exceptional customer experience at cannabis dispensaries is fostering a sense of community and engagement among customers.
Events:
Hosting events such as product launches, tastings, and guest speaker sessions can provide customers with an opportunity to learn more about cannabis, sample new products, and connect with other like-minded individuals. These events can also help establish a dispensary as a trusted source of information and a hub for the local cannabis community.
Educational Workshops:
Dispensaries can offer workshops that focus on various aspects of cannabis, such as understanding terpenes, cannabinoids, and THC percentages, cooking with cannabis, or cultivating cannabis at home. These workshops can help customers gain a deeper understanding of cannabis and its various uses, ultimately improving their overall experience.
Social Media:
Actively engaging with customers on social media platforms can help dispensaries stay connected with their audience, provide real-time updates on products and promotions, and gather valuable feedback. Dispensaries can also use social media to share educational content, answer customer questions, and participate in industry-related conversations.
Loyalty Programs:
Dispensaries can implement loyalty programs that reward customers for their repeat business, encouraging them to return and further engage with the dispensary. Loyalty programs can include discounts, exclusive promotions, or early access to new products, and can be an effective way to strengthen the customer-dispensary relationship.
Focusing on the customer experience at cannabis dispensaries is crucial for building brand loyalty, attracting repeat business, and maintaining a competitive edge in the growing cannabis industry. Dispensary owners, managers, and budtenders must prioritize educating customers about terpenes, cannabinoids, and THC percentages to help them make informed decisions and tailor their cannabis experience to their preferences and needs. HR professionals play a key role in ensuring that staff receive comprehensive training and development, enabling them to provide exceptional service and create a positive customer experience. By investing in the customer experience, dispensaries can set themselves apart and thrive in the competitive cannabis market.
Member Blog: Creative Promotion Ideas To Increase The Footfall In Your Dispensary
With the legalization of cannabis in several states, the demand for cannabis-infused products continues to rise. This has led to a surge in the number of dispensaries across the US.
According to recent reports by statistics, there are over 5500 legal dispensaries catering to the growing customer base.
Perhaps, it won’t be wrong to say that the competition level in this industry is fierce. And that’s why you, as a dispensary owner, have to find ways to set yourselves apart and attract footfall to your store.
The question arises: How can you make your dispensary stand out from the rest?
Well, in this article, we will explore creative promotion ideas that can help you boost your dispensary and drive success. So, let’s get started!
Listing Your Dispensary
One of the first steps to promote your dispensary is to ensure it is listed in all the relevant directories and online platforms. This includes popular review websites, local business directories, and cannabis-specific platforms.
Of course, the laws concerning cannabis businesses vary from state to state, so it’s crucial that you adhere to them.
Let’s suppose you have a dispensary in Maryland. In that case, your target customers will probably search online for the best maryland dispensaries and then visit them. They may even place their order online to get the products delivered to their doorstep.
However, if you haven’t registered yourself for these listening sessions, you’ll likely lose potential customers and, thereby, sales.
To avoid such a situation, you must list your dispensary as soon as possible. It’ll increase your chances of being discovered by customers and help you boost your customer base.
Nevertheless, make sure to provide accurate and up-to-date information, such as your address, contact details, and business hours. Also, ensure your patients have medical cards before you sell them any product, and your products have less than 0.03% THC in them.
Create Engaging Social Media Campaigns
Social media platforms like Facebook, Instagram, and Twitter are no longer mere mediums to connect and communicate. These have become powerful tools to promote businesses, including dispensaries.
You can use these platforms to share updates about new products, educational content about cannabis, and any special promotions or events you have planned. In addition, you can encourage target customers to follow your pages and engage with your content by offering incentives such as exclusive discounts or giveaways.
Regardless of the platform you use, each has a few guidelines that adhere to the regulations of specific states. It’s essential to familiarize yourself with these guidelines to avoid legal issues. Some general principles that you can follow include:
No Misleading Claims: It’s important to provide accurate information about your products and services. Avoid making any exaggerated or misleading claims about the benefits or effects of cannabis.
No depiction of consumption: In some states, it is prohibited to depict cannabis consumption in any form. So, be mindful of this when creating visual content for your social media campaigns.
No Image That Might Appeal To Children: Cannabis products can only be sold to people over the age of 21. In order to maintain a professional and responsible image, you must avoid using cartoons, animals, or any other picture that may attract kids.
The key here is to be transparent, informative and focused on building a positive reputation for your dispensary within the boundaries of the law.
Also, be consistent on social media. Regularly post relevant content and respond promptly to comments and inquiries. It’ll help create a positive and trustworthy online presence for your dispensary.
Loyalty Programs
Loyalty programs are a great way to reward and retain customers who regularly visit your dispensary. These programs encourage them to make frequent purchases to get discounts and special perks. At the same time, it makes them feel special, creates a sense of appreciation, and builds a robust relationship with your store.
For example, you can start a loyalty program called “Green Leaf Rewards.” When customers sign up for the program, they receive a loyalty card or a digital account. Every time they purchase at your dispensary, they earn points that collect over time.
Once they reach a certain number of points, let’s say 100, they become eligible for various rewards. These rewards could include discounts on future purchases, exclusive access to new product releases, or free merchandise.
Apart from point-based systems, you can also include referral rewards. This means that when a customer refers a friend to your dispensary, the existing customer and the referred friend receive a reward.
This not only incentivizes your loyal customers to spread the word about your dispensary but also attracts new customers eager to take advantage of the referral benefits.
Hosting Educational Workshops
Last but not least, there are several myths and misconceptions surrounding the use of cannabis. This makes it important to provide accurate information to the public. And hosting educational workshops can be an effective way to bust these myths and offer valuable insights to your target audience.
You can present scientific facts and research findings to help attendees understand the potential benefits and risks associated with cannabis use. Also, emphasize the importance of responsible consumption and the legal guidelines in place to ensure safety.
You can even invite industry experts to your workshops to beat the competition and boost your business credibility. These experts may include healthcare professionals, researchers, or experienced individuals with in-depth knowledge of cannabis. Make sure to foster an open and non-judgmental atmosphere, ensuring that everyone’s perspectives are respected.
Even so, it’s important to note that these workshops are not meant to encourage cannabis consumption but rather to educate individuals so they can make informed decisions. You must advise them to connect with their healthcare professionals, especially if they use cannabis for medical aid.
To Sum It All Up
Cannabis is a growing industry and highly competitive industry. That’s why it’s essential to differentiate yourself from the competition and build your creditworthiness. Fortunately, with the right mix of creative promotion ideas discussed in this article, your dispensary can become a go-to destination for cannabis enthusiasts, fostering growth and achieving long-term success. So what are you waiting for? Try these promotion strategies right away!
Committee Blog: Searching Through the Weeds – Identify, Attract, and Retain the Top Employment Prospects
Cannabis is one of the most heavily regulated industries, which brings a few more challenges that increase the difficulty locating prospects. This can make finding people who have the right skills and experiences a tricky endeavor, often fraught with risks. Small startup endeavors, vertically integrated companies and even MSO’s can run the gamut in terms of who is doing what day to day. Since we do not yet have the type of standardization that exists in more mature industries, it can be challenging to figure out who to hire, and with what titles.
Here are some tips, tricks, and best practices to attract the best prospects and hire suitable candidates that will bring value, commitment, and success to your business.
Try Not to Rush
Whether creating a new position, replacing an employee, or even expanding operations, the tendency is to want to fill a job with someone competent and available as soon as possible. But in order to find the best person, to not only perform the duties of the job but also enhance your workplace culture, grow, and evolve with your business, it takes time.
Clearly Define the Position
When posting a job listing, include more than a simple description of the duties to be performed. Instead, clearly define what the job entails, include what qualities a viable candidate should possess, and outline the culture and values of your business that you believe a potential hire should share. This structure will allow candidates to grasp a complete understanding of the job and match their strengths and interests to the description of the ideal candidate. Producing a clear understanding for both employer and employee about what is expected and how to excel.
Recruit Through Multiple Channels
Since so many qualified candidates could come from a wide range of other industries, it is vital to cast a wide net when searching for potential applicants. There are job boards that specialize in the cannabis industry, such as Viridian Staffing. Others like Indeed are effective places to get a lot of traffic on your job listings. Using social media like Facebook, Instagram, and LinkedIn can raise your visibility and reach those already in the job market. You could also connect with those that may be open to changing their career path but are not aware of the many opportunities available in the cannabis industry. Also, networking through cannabis-related events and membership associations such as the NCIA can also yield knowledgeable and ambitious candidates.
Looking at Comparable Industries and Transferable Skills
Business owners and recruiters can benefit from looking within a highly regulated sector to find talented employees with a solid knowledge base. The banking, pharmaceutical, alcohol, tobacco, and gaming industries have been around much longer than regulated cannabis. Recruiting talent from these comparable industry models can provide your business with relatable business perspectives and best practices that can benefit your workplace and complement your staff.
Much like the consumer-packaged goods industry, the cannabis industry sells products to the public and needs to hire talent in areas including sales, marketing, retail/distribution, HR, finance/accounting and legal/compliance. Some cannabis companies have often recruited and hired professionals who developed their skill sets in other industries.
Perform Pre-employment Screenings
In any industry as highly regulated the way cannabis is, having stringent pre-employment screenings and background checks is essential to ensuring your business remains compliant with all state laws and restrictions. Hiring unqualified employees can result in fines, penalties, and closures, so it is paramount that your business put procedures in place to screen any potential candidate. Pre-employment screenings should include:
A criminal and civil records search.
Restricted party search.
Professional license investigation.
A National Sex Offender Registry search.
A National Record Locator search.
A review of any previous compliance issues at past cannabis-related businesses.
Human Resources
During the recruiting process, identify candidates who have an established personal brand and who differentiate themselves. Employees will need to have a robust work ethic, attention to detail, able to work effectively in a team environment and possess the ability to merge their ambitions with the goals of the team and the company. Identifying and targeting candidates with and without cannabis industry experience can lead to recruiting success. This approach can broaden your recruiting net, differentiate your cannabis company, and provide the ‘edge’ you need to stand out from other potential employers.
Wages, Benefits, and Culture
One of the most essential steps is to ensure that your base salary, bonus structures and benefits packages are current and comprehensive is critical to attracting talented professionals that can take your business to the next level. Cannabis companies should look for candidates who understand the importance of your company’s specific goals and demands.
Training and Engaging
Your core employee onboarding compliance training package and continuing education plan offers a foundation to build upon. Significant areas of the industry are grappling with high turnover rates, particularly among those who do not succeed in the first few months of employment. Employee training and onboarding will help stem those departures.
A safe environment is created by assessing risk and using proper equipment, policies, and procedures to reduce or stop events or situations that could happen. As a security professional in the cannabis market, you will need a solid knowledge of security systems. Understanding the cannabis marketplace and the required security is essential to running a problem-free operation.
Closing
Remember that most people who are being hired don’t have any cannabis experience, or have very limited cannabis experience, or have legacy market cannabis experience. These individuals don’t yet understand all the compliance nuances and requirements that are needed to operate in a licensed business. Sometimes it’s the soft skills, personal qualities, and cultural fit that may make a candidate a better fit for a role than someone with more regulated cannabis-specific experience. A unique approach, clearly defined roles, a wide recruiting strategy, and transferable skills are the name of the game.
Member Blog: What Is New Hire Reporting and Why Is It Critical for Cannabis Companies
Cannabis is amongst the fastest growing industries in America, and it is also one of the most inexperienced. From the individual employee to the entire organization, the lack of commercial and regulatory knowledge can be a real burden for those facing it.
As an employer, one of the most common regulations you are responsible for is the reporting of any new hires to your state, or federal, governing body. Although new hire reporting can become quite recurrent, it is also critical to your business operations.
What is New Hire Reporting?
New Hire reporting is a process by which you, as an employer, report information on newly hired and rehired employees to a designated state agency shortly after the date of hire. As an employer, you play a key role in this important program by reporting all your newly hired employees to your state.
The Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996, known as welfare reform, requires all employers to report certain information on their newly hired employees to a designated state agency.
Who is considered a newly hired employee?
The law defines a “newly hired employee” as an employee who has not previously been employed by the employer; or was previously employed by the employer but has been separated from such prior employment and rehired.
Is the reporting process difficult?
The majority of the information you submit is already collected when your employee completes a W4 form. Still, the reporting process is an additional requirement, which may possibly add time and expense to your company’s operations. To ease the process, states are working together with employers, offering them a variety of reporting methods.
New Hire reporting is one of the many services we offer at Tesseon to reduce your burden and help you to stay in compliance.
Does New Hire reporting benefit employers?
A potential benefit to employers is the reduction and prevention of fraudulent unemployment and workers’ compensation payments. Timely receipt of New Hire data allows each state to cross-match this data against its active workers’ compensation and unemployment insurance claimant files to either stop or recover erroneous payments. States have saved millions of dollars of erroneous unemployment insurance payments because of these cross-matches.
What is done with the New Hire information?
States match New Hire reports against their child support records to locate parents, establish a child support order, or enforce an existing order. In addition to matching within a state, states transmit the New Hire reports to the National Directory of New Hires.
State agencies operating employment security (unemployment insurance) and workers’ compensation programs have access to their state New Hire information to detect and prevent erroneous benefit payments.
In addition, each state can conduct matches between its own New Hire database and other state programs to prevent unlawful or erroneous receipt of public assistance, including welfare, food stamps and Medicaid payments.
How is the data safeguarded after it is submitted?
Security and privacy of New Hire data are important issues for all those involved in this nationwide program. Federal law requires all states to establish safeguards for confidential information handled by the state agency.
All state data is transmitted over secure and dedicated lines to the National Directory of New Hire (NDNH). Federal law also requires that the Secretary of Health and Human Services (HHS) establish and implement safeguards to protect the integrity and security of information in the NDNH, and restrict access to and use of the information to authorized persons and for authorized purposes.
Where and how do companies send New Hire information?
New Hire reports should be sent to the State Directory of New Hire in the state where the employee works. Federal law identifies three methods for submitting New Hire information: first class mail, magnetic tapes, or electronically. For employer convenience, states offer additional options such as fax, email, phone, and website transmissions. Your state New Hire contact can provide you with instructions on where and how to send New Hire information.
Federal employers report New Hire data directly to the National Directory of New Hire.
What information must an employer report?
Federal law requires you to collect and report these seven data elements:
Employee’s name
Employee’s address
Social Security number
Date of hire (the date the employee first performs services for pay)
Employer’s name
Employer’s address
Federal Employer Identification number (FEIN)
Some states require additional data, please check your state’s specific reporting requirements.
Are there penalties for failing to report New Hires?
States have the option of imposing civil monetary penalties for noncompliance. Federal law mandates that if a state chooses to impose a penalty on employers for failure to report, the fine may not exceed $25 per newly hired employee. If there is a conspiracy between the employer and employee not to report, that penalty may not exceed $500 per newly hired employee. States may also impose non-monetary civil penalties under state law for noncompliance.
Is New Hire reporting required for independent contractors?
Some states do require the reporting of independent contractors. However, federal law does not require it. Contact the person identified on the State New Hire Reporting Contacts and Program Information matrix for state-specific requirements.
How soon must I submit a report after hiring someone?
Federal law mandates that New Hires be reported within 20 days of the date of hire. However, states are given the option of establishing reporting time frames that may be shorter than 20 days. You must adhere to the reporting time frame of the state to which you report. Be sure to check with your state New Hire contact to learn your state’s requirements.
What form is used to send New Hire reports?
Reports must be made either on a copy of the W4 form or, at your option, an equivalent form developed by you. Some states have developed an alternate form for reporting, but its use is optional.
Options for multistate employers to report new hires?
If you are a multistate employer, you have two reporting options:
Report newly hired employees to the states where they work, or
Select one state where your employees work and report all your new hires to the selected state.
If you choose to report all new employees to one state (option B), you must:
Register with HHS as a multistate employer
Designate the state that you will report
Submit your new hires electronically or by magnetic tape to the state you have chosen, no more than twice a month (12 to 16 days apart)
There are two ways to register as a multistate employer, either online or by downloading and filling out the designated paper form (PDF).
Once you complete the registration as a multistate employer, report employees to the state that you have chosen.
Need advice for your business?
At Tesseon we understand that your organization may need help getting things done. That is why we offer stand-alone services for areas that can be a challenge to any business. With our in-house expertise and award-winning support we can help you handle any business challenge that comes your way.
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