As the cannabis industry continues to evolve, so do the discussions around regulations, particularly concerning flavor additives in inhalable cannabis products. This blog post represents the members of NCIA’s State Regulations Committee current reflections on the successes and shortcomings of existing cannabis vape regulations, focusing on flavor limitations, safety considerations, quality specifications, and labeling practices. While technical, this topic has a tremendous impact on cannabis brands and consumer safety.
First, for those who might question the need to add flavors to cannabis vapes, it’s essential to highlight the following points regarding why flavors are added and the benefits they bring:
Restoration
In some cases, such as with cannabis distillates, processing or manufacturing techniques can alter or remove natural cannabis flavors from vape liquids. Adding cannabis flavors back simply returns the final product back to nature’s intended taste profile, providing consumers with a comprehensive vaping experience.
Mimicking Smoking Sensation
For individuals transitioning from traditional smoking to vaping, flavors can mimic the sensations and tastes they are accustomed to, making the switch more enjoyable and satisfying.
Customizing Preferences
Consumers have diverse preferences, and adding flavors allows them to customize their vaping experience based on their personal taste preferences, whether they prefer fruity profiles or classic cannabis flavors. Akin to aromatherapy, consumers may also predict the mood impression they will experience by vaping a particular flavor.
Providing Consistency
Consumers often expect certain flavors in products based on their product familiarity so it is important for brands to be able to deliver a consistent vaping experience wherever their product is sold despite changes that the consumer may otherwise notice due to harvesting variability of the cannabis or limitations on strain availability across borders.
Meeting Market Demands
The vape industry is driven by consumer demand for a wide variety of flavors. Adding flavors allows vape manufacturers to meet market demands and cater to the preferences of different consumer segments. In regions where certain flavors are restricted or banned due to regulation, the legal vape industry is challenged to compete with the illicit market, where flavors would continue to be available. However, these illicit market alternatives may not undergo the same safety and quality standards as legal vape products, potentially posing risks to consumers’ health. By offering a wide range of flavors, the legal vape industry can provide consumers with safer alternatives and help combat the proliferation of potentially unsafe, unregulated products.
Personal taste aside, the dangers of unsafe flavors in unregulated products are real, as was demonstrated in 2019 through cases of EVALI (E-cigarette or Vaping Associated Lung Injury). As detailed in this piece, manufacturers need to follow best practices to protect vaping consumers no matter if they are in regulated cannabis, unregulated cannabis, or the CBD/hemp markets.
Flavor Limitations
Overall, the addition of flavors to cannabis vapes is not just about enhancing taste but also about meeting consumer expectations and improving consumer safety. Flavors create consistency in products and are common across consumer products we already enjoy daily. Consumers are trained to expect flavor variety and consistency in traditional e-cigarettes, and cannabis vapes should be no different.
What’s Working?
We commend states like Oregon for taking a pragmatic approach by allowing a broad range of natural, artificial, and cannabis-specific flavoring ingredients while rightly prohibiting scientifically known inhalation hazards. This approach provides broad room for innovation while protecting the public from valid safety risks.
What’s Not Working?
Conversely, restrictions on flavor ingredients to only natural sources, as seen in states like Nevada, California, and New York, are unnecessarily limiting and not scientifically justified. Further limiting flavoring terpenes to being cannabis or hemp-derived, like in Connecticut, also hinders creativity, imposes higher costs, and potentially pushes consumers towards unregulated alternatives. Likewise, enforcement actions to prevent adolescent access to vapes should be prioritized over regulations to limit flavors or labels thought to be more appealing to adolescents.
Safe Flavors
Everyone’s goal should be to provide consumers with the safest possible experience when using inhalable products containing flavors. What’s safe to eat isn’t always safe to inhale.
What’s Working?
Responsible suppliers implementing robust quality and regulatory pre-qualification measures for all flavor ingredients is a positive step. Vendors should be vetted, approved, and responsible for the products they supply. Encouraging manufacturers to develop comprehensive toxicological programs tailored for inhalation safety is also crucial.
What’s Not Working?
Requiring flavors or flavor ingredients to be listed on the pharmaceutical FDA IID for inhalation is inappropriate and does not guarantee a safer flavor. The only reason flavors or flavor ingredients may be in the FDA IID is because they already exist in pharmaceutical products that went through a safety review process. However, the flavors themselves haven’t been evaluated independently for inhalation safety (emphasis added).
Instead of mandating a specific database of flavors, it’s more appropriate to regulate the process of sourcing and validating ingredients.
Quality Specifications
Once a desirable and suitable flavor has been identified, manufacturers need to understand how to maintain quality.
What’s Working?
Adhering to the approach of FDA’s Food Safety Modernization Act (FSMA) for quality plans is best practice, ensuring hazards are identified and controlled by qualified individuals at each manufacturing stage.
What’s Not Working?
Overly broad testing requirements for non-cannabis-derived flavors or multi-ingredient cannabis products are redundant and economically unviable, particularly when hazards are effectively controlled through quality plans at earlier or later stages of a supply chain.
Labeling Practices
Finally, it’s important to examine how manufacturers should disclose when flavoring has been added to products. Consumers have a right to understand if a product is flavored.
What’s Working?
Simple, consumer-friendly labeling, such as using common terms like “Natural and Artificial Flavors,” aligns with other industry standards and will be recognized by the common consumer. Adopting labels familiar to the conventional Consumer Packaged Goods (CPG) industry effectively bridges the gap between industries and aligns with how consumers already make these decisions across all products they buy.
What’s Not Working?
Listing the chemical names of all flavoring ingredients, as mandated in Oregon, New York and Missouri, is excessive and may confuse or intimidate consumers. Consumers are not qualified to assess risk from formula information. Unregulated products that do not list flavor ingredients may become more appealing to some consumers that are intimidated by the chemical names on the flavor label of the licensed product.
Recommendations
Having reasonable and consistent regulations across the country will help to create a safe and level playing field for manufacturers and brands to compete for consumer market share. While nuanced, these regulations materially impact the ability to bring a product to market or make a product economically viable.
Starting with flexible flavor definitions allows for a wide range of internationally recognized flavor ingredients, including natural, artificial, and cannabis-inspired isolates.
Banning known risks is common sense best practice. This process must be dynamic and listen to science. For example, Diacetyl, once a popular popcorn flavoring, was banned after research concluded it was unsafe for inhalation. A known, published inhalation hazard list is critical.
Implementing a safety certification policy based on thorough toxicological risk assessments specific to inhalation exposure ensures accountability.
Finally, adopting simple and recognizable labeling terms like “Natural and Artificial Flavors” and aligning allergen disclosures with established FDA and EU regulations make sense and protect intellectual property. We are advocating for consistency.
These effective regulations prioritize safety without stifling innovation or burdening stakeholders. We welcome ongoing dialogue and collaboration to develop pragmatic, science-based regulations that benefit consumers and the industry.
Committee Blog: Harnessing the Potential of Partnership Between the Cannabis Industry and Academia
Although cannabis companies are limited in the scope of their business activities awaiting much needed descheduling, it hasn’t stopped the need for educating and preparing the cannabis workforce. For some states cannabis tax dollars are appropriated to education, violence prevention and workforce development and often developed through the lens of social equity. Ohio,Colorado, Illinois, and Michigan for example, each invest in cannabis literacy in some way. Cannabis programs such as Oaksterdam University offer learners certificates or degrees for every aspect of the supply chain. Departments shape cannabis curricula with the support of faculty members and subject matter experts from both the private and nonprofit sector. These diverse educators instruct to prepare employees to fill the expected 1.5 million to 1.75 million cannabis jobs by 2025 as estimated by the Bureau of Labor Statistics.
Partnering with academia
Legacy growers and professionals from more mature markets like California and Colorado find themselves advising academic partners on the type of information most needed by the first generation of cannabis employees. Amanda Reiman, PhD MSW serves as the Chief Knowledge Officer for New Frontier Data and instructor of Implications of Legalization of Cannabis: Policy and Compliance for Excelsior University, she believes legacy knowledge, paired with academic research, will help address the gaps in knowledge created by prohibition.“For decades, academic institutions had to stay an arm’s length from cannabis due to its legality. Now, with state laws changing, it has opened up an opportunity not only for academic institutions to offer coursework to support the emerging industry, but to learn from those who have been growing and working with cannabis prior to legalization,” Reiman says.
Using the state laws as a baseline for cannabis literacy, programs structure certificates and degrees to prepare learners to understand the complexities of the cannabis industry. For cannabis businesses working with the academic sector is a way to keep the pulse on emerging local talent, remain aware of the effectiveness of educational approaches and in some instances, earn an income. Positioning your business in academic networks is best when it’s both mutually beneficial and ethical.
It is important to keep in mind that programs can lead to good-paying jobs for those who’ve suffered from the war on drugs and justice-impacted populations.
Some programs are of no cost to students, while others compensate students for their participation. Certifications and degrees however don’t ensure employment. Most importantly cannabis businesses providing subject matter expertise must also continue to learn how to have a favorable impact on student populations that require learning how to serve them best.
Teaching
When teaching cannabis student populations will vary. It is important to approach the various topics with a sensitivity to the historical injustices and disparities that have existed within the cannabis industry. Some students may have faced disproportionate barriers to entry into the industry due to systemic discrimination and lack of resources. Other students may have different experiences related to health and wellness that when discussing need to be facilitated with great diplomacy, discretion and protection of privacy.
Instructors must provide accurate and unbiased information about cannabis, but sourcing materials may be challenging. It is recommended to identify the most credible and accessible resources for courses.It is also important to acknowledge the potential for exploitation and exploitation of vulnerable communities in the cannabis industry, and to educate students on how to navigate these challenges and protect their rights.
“I came into cannabis from teaching urban ecology, urban agriculture and environmental justice concepts and I was quite familiar with learning and teaching novel concepts to diverse audiences. But what I noticed is that it was challenging for my peers. I had helped write our Illinois legislation and also had a professional cannabis network. Industry experts were invaluable for me to be successful in teaching this material and without those trusted peer mentors I doubt I would have been able to create meaningful coursework and identify high quality resources to do so,” shared Mila Marshall, PhD, NCIA Education Committee Chair.
Furthermore, it is crucial to empower social equity students to advocate for themselves and their communities within the cannabis industry. This may involve providing resources and support for networking, business development, and community engagement that are embedded in the course material and syllabi.
“Teaching is a skill above and beyond knowing the subject. For subject matter experts to be effective teachers, they should gain knowledge around differential learning styles, student engagement and effective communication,” shared Dr. Reiman. She contends that being a cannabis expert is only part of what is needed to be an effective teacher in the cannabis space. Overall, teaching cannabis with social equity students should be approached with an ethical and inclusive mindset, recognizing the unique challenges and opportunities that these students face in the industry. By promoting transparency, empowerment, and social responsibility, educators can help to foster a more equitable and just cannabis industry for all. Instructors play a key role in unlocking the potential of cannabis learners and there is a learning curve for instructors. Dr. Hemant Kumar has worked many years as a medical cannabis educator and is the Program Director of M.S. in Biotechnology and Office of Online Education and Expanded Programs at Morehouse School of Medicine. He has realized that it’s important to understand the student audiences and their level of knowledge of cannabis. He promotes remaining aware that academia is just as susceptible to the dynamic and fast paced nature of cannabis as an industry. “Scientists are globally publishing cannabis discoveries daily, shared Dr. Hemant. We see there also is a fast growing demand for business and entrepreneurial courses with potential for career pathways; manufacturing, tech start-ups, data analytics, marketing and even healthcare,” Dr.Kumar shared.
Advisory councils
Programs benefit from the strategic advice of cannabis businesses and social equity advocates. Advisory councils are often informal in nature and independent from state regulation oversight. Council members provide insight on everything from hiring of educational professionals to establishing events and bringing in additional resources to construct greenhouses or implement hands-on internships. Commitments can vary from a single semester to an entire year or more.
Academic Advisory councils provide feedback and direction for long-term goals and strategic planning. With cannabis more in the academic spotlight than ever, it is crucial we start developing programming and educational strategies to highlight cannabis career opportunities.
As cannabis is a continually evolving industry, there are opportunities for subject matter experts to collaborate with the academic community. The cannabis industry intersects with so many different aspects of the workforce that span multiple sectors and academic degrees. Yet there are often missed opportunities for securing talent from junior colleges, trade schools, and research universities.
Cannabis organizations’ presence at career fairs ideally should be used for visibility and awareness in the cannabis space. This allows future employees and the canna-curious an opportunity to view this industry as a legitimate career path with ample employment opportunities. It closes the communication and educational gaps and offers opportunities for subject matter experts to collaborate with the academic community.
Cannabis companies, like other industries, are part of our nation’s workforce. To normalize our booming industry, it’s important to spread awareness that the medical cannabis space is a thriving industry in need of graduates, interns, and talent from all walks of life, to help fill a myriad of different positions within the cannabis space.
Our industry is unique in that it encompasses so many different fields of study across such a vast range of subject matter. Educating academia is crucial to paving the way for research and the normalization of this industry. We must empower and support entrepreneurs and their communities by creating an equitable and sustainable cannabis industry. By aligning with academia, we unite with community and industry leaders to achieve cannabis normalization for our communities.
In any industry, whenever we try to optimize a process, the first step is to collect data to understand the dependencies and identify bottlenecks. In cultivation, we are still lagging behind, and we accept an average process loss of 10-20%. How can we change that?
Cannabis cultivators will lead this transformation in cultivation
Cultivating and growing plants to their full potential takes experience and specialized skills. Cannabis is no different, and many would argue, can be even more difficult to grow compared to other plants; that is because cannabis is cultivated for multiple reasons. The majority of people know that cannabis is grown for recreational and medicinal use. However, cannabis is also grown for its hemp fiber to create paper, clothing, biofuel, and food. Cannabis is an extremely fast-growing plant. The plant attracts and is susceptible to many pests, including several types of insects, fungus, and bacteria. Another challenge with cannabis is the fact that it has not been grown at scale or studied to the extent of other crops. The legal cannabis industry has only been around since 2012, when Colorado and Washington were the first states to legalize recreational use. Growing cannabis is basically like driving a race car for the first time without knowing the course ahead. Good luck. Wouldn’t you want to know more about your race car, your team, and the uniqueness of the track in order to navigate with precision and skill? That’s exactly why data is such a powerful asset in cultivation, especially for cannabis cultivators.
Switch from qualitative to quantitative data
A lot of stress, miscommunication, and conflict in cultivation operations are due to the subjective nature of data collection. We rely on humans to assess a crop’s state and remember it when comparing historic results. “It looks better than last time.” or “It looks good.” – imagine if you could rely on numbers when making such statements: “We have 10% larger flowers than last cycle” or “This cultivar stretched until day 25 compared to the other cultivar which stopped stretching around day 30”. These are statements that are easy to agree on and hard to challenge since they are objective facts.
Capture a comprehensive set of data
The other important aspect to know about data is that data becomes exponentially more valuable the more complete and comprehensive it is. If you are baking bread and you only measure the flour but not the salt, water, or yeast, there is not much value to this information. The question we need to answer is what data allows us to draw a comprehensive picture of a garden. What data do you need to remotely steer a crop and guide a team on the ground? Cultivators heavily rely on the visual feedback of plants when assessing plant health. Being able to see the plants will be key but also to get a sense of plant health in numbers to allow for quantitative comparisons. Obviously, measuring environmental parameters like air temperature, relative humidity, light intensity, and CO2 is key to operating a cultivation facility. One of the most critical parameters to optimize is the Leaf Vapor Pressure Deficit or Leaf VPD. It provides information on how the plant is transpiring and, thus, how efficiently it can grow. In order to calculate the Leaf VPD, one also needs to know the leaf temperature. Substrate properties are another key piece of the cultivation puzzle. Water content, EC, and pH are important factors to navigate. Finally, it is important to know if any pests, molds, fungus, or viruses are present in the environment. And other factors are obviously key to measuring and understanding when operating a cultivation facility, like airflow, power consumption, etc. The more data you can capture the better you can consistently bake and optimize your favorite bread.
Leverage automation and AI to capture and process the data
However, when collecting data we need to keep in mind that all environmental parameters affect the same plant and, thus, they are all intertwined – in general, changing one parameter requires the adjustment of all other parameters as well. At the same time, the impact of these decisions is often only assessed by looking at the final yield, which makes it impossible to derive what influence each decision had on the respective result. Like in many other fields, modern automation and artificial intelligence are fueling the transition to data-driven decision-making in cultivation. And Cannabis, as one of the highest margin crops, is at the forefront of this evolution. Automated, intelligent systems can monitor your crop 24/7, allowing you to focus on fixing the issues rather than identifying them. They can measure properties across the full canopy, which have not been accessible before, like leaf temperature, bud count, plant stress, pests, and other crucial factors. They enable your team to assess the garden and to discuss its state remotely as well as to compare historic data across growth cycles.
Investing in data collection means making more money
The lack of data obviously results in inconsistencies and even crop loss—in cannabis, the industry average is 15% crop loss. Translation: millions of dollars lost, which goes even higher the larger the facility. That’s a significant amount of revenue that is lost instead of being deployed in other areas for expansion or optimization. In a highly competitive industry, implementing features such as data collection to minimize crop loss and optimize yield pays off quickly and can play a huge factor in a business’s long-term success.
Update from D.C.: The Latest on Marijuana Rescheduling and the Farm Bill
There were two major cannabis policy developments from Washington, D.C. last week: language of the proposed rule for rescheduling became available (accompanied by a video from the President reaffirming his commitment to reform) and the long anticipated text of the farm bill was released.
The text of the proposed rule confirmed that the Attorney General is seeking to move marijuana from Schedule I of the Controlled Substances Act (CSA) to Schedule III. Doing so would provide tax parity for the cannabis industry by ensuring legal businesses would no longer be subject to an arcane provision of the U.S. tax code — Section 280E — that prohibits deductions associated with “drug trafficking.”
The Department of Justice asked for public comment on various topics, including:
Facts and expert opinion on different forms, formulations, and delivery methods
Dosage and concentration information
Data on marijuana constituents, routes of administration, and impact of Delta-9 THC potency
Information regarding the scope, duration, and significance of marijuana abuse
Comments on the practical consequences of rescheduling marijuana to Schedule III under the relevant statutory frameworks
Comments on the economic impact of the proposed rule
Information on how rescheduling may impact “small entities”
The public comment period is officially open and will conclude on July 22. NCIA will be submitting comments during the rulemaking period on behalf of the hundreds of small businesses we represent in the legal cannabis industry.
In addition to this exciting announcement, the House Agriculture Committee also released the text of the overdue 2023 farm bill (the bill’s original deadline was September 30, 2023, but was extended for one year).
Included in the bill is language regarding hemp and hemp production. The 2018 farm bill legalized hemp by authorizing the production of hemp and removing hemp and hemp seeds from the CSA. Since then, the proliferation of hemp derived products containing various cannabinoids (CBD, Delta-8, THC-A, etc) has become commonplace. The increase of intoxicating products derived from hemp has concerned many — including those in Congress.
During the Committee markup, an amendment was offered by Rep. Mary Miller (R-IL) that would federally ban all ingestible hemp products with any level of THC. The amendment passed via voice vote.
This is an area we at NCIA are keeping a close watch. As the association that represents the entire cannabinoid industry, we are urging Congress to eschew the failed policies of prohibition and to instead move to regulate hemp and marijuana-derived products equally. Make sure you check out our brand new position paper “Navigating the Future of Cannabinoid Regulation: Balancing Safety, Innovation, and Consumer Access”, which delves into the complexities of cannabinoid production, differentiating between plant-extracted and synthesized cannabinoids. It also addresses the challenges posed by the current regulatory landscape and advocates for a common-sense federal framework that emphasizes safety, consistency, and quality across all cannabis-derived products.
Committee Blog: Unwrapping the Complexities – The Plastic Packaging Predicament
Written by: Karen Quinto, MS Environmental Science, Willow Industries
Balancing Protection, Sustainability, and Safety in the Packaging Industry
In 2012, child-resistant packaging legislation prevented access to children while the legal cannabis market began to open up but the issue persists over a decade later and the topic is still controversial to some.
“CR [Child-resistant] packaging on flower products makes no sense. On edibles sure, but flower? Not to mention that alcohol has no CR, and I’d argue is 100x more harmful to a kid who gets into it…. It feels like a piece of legislation to make regulators feel good about themselves but is a frustration to everyone else,” voiced Tyler Works on his LinkedIn page.
Works, the Director of Account Management for Cannabiz Media, is not alone on this sentiment. The delicate balance between protecting products and ensuring consumer safety is continuously challenged by concerns over its efficacy and common sense.
“When we worked on these rules, this was considered but it was more important to satisfy the minds of the people terrified of kids getting into cannabis,” chimed Gus Green, who helped states adopt the Code of Federal Regulations for the Poison Prevention Packaging Act due to cannabis being a Schedule 1 drug, therefore automatically deemed harmful to children. “Now is a better time to breach the subject. The Poison Prevention Packaging Act states that any product deemed toxic for a child under 5 years old should be in child- resistant, and senior-friendly packaging. I worked with state agencies around the country to adopt these. The rule is a bit more specific than that if you dive in though, it’s about the ability for a child to ingest a toxic amount within a specific timeframe…[For example] travel-size Listerine bottles are not always CR, but the large bottles are always CR.My specialty was child-resistant, or specialty packaging. Packaging specialists should be the ones rewriting these rules but I often see committee members with no background in the field attempting to write them.”
CFR 16 PART 1700 refers to Title 16, Part 1700 of the Code of Federal Regulations (CFR), which specifically deals with Poison Prevention Packaging. This regulation focuses on the packaging requirements for substances that are potentially hazardous or poisonous, especially to children. The key objective is to prevent accidental ingestion by children and reduce the risk of poisoning incidents.
The regulation outlines standards and specifications for packaging design and labeling to ensure that products posing a poisoning risk are packaged in a way that makes it difficult for children to open or access the contents. This includes child-resistant closures and barriers to entry. The goal is to enhance the safety of household products, medications, and other substances that could be harmful if ingested by young children. Compliance with CFR 17 PART 1700 is essential to meet safety standards and protect consumers, particularly children, from accidental poisoning.
It seems straightforward enough but there are many problems inherent in adopting a rule that was not specifically made for the cannabis industry.
The Dose Makes the Poison
Works’ earlier sentiment is essentially that “the dose makes the poison”. This fundamental concept in toxicology states that any substance can be harmful in large quantities but may be safe at lower levels.
Proponents of this sentiment argue that cannabis flower contains THCA, which is a non-psychoactive cannabinoid, meaning it does not produce the “high” associated with THC and cannabis use. THCA is a precursor to THC through decarboxylation, which converts THCA to THC with the application of heat, typically when it is smoked, vaporized or cooked. Therefore, ingestion of THCA is unlikely to cause intoxication in a child. Moreover, Works argued that requiring child-resistant packaging for THC flower is inconsistent with the treatment of other potentially harmful household items that are not subject to the same level of regulation, such as bottles of alcohol that do not require child-resistant packaging despite their inherent availability and quantity in a household.
Advocates for the deregulation of child-resistant packaging of flower might suggest that just like for alcohol, home environment control would suffice in controlling cannabis as a safety measure for children. Storing THC flower in an inaccessible location followed by strong educational measures urging parents to responsibly store and prohibit access could be effective in preventing accidental ingestion.
While these points are presented for the sake of argument, it’s important to reiterate that child-resistant packaging regulations are designed to prioritize child safety. The potential risks associated with accidental ingestion of THC or other substances are serious, and any discussion around exemptions should carefully consider the well-being of children. Public health and safety regulations are typically enacted with the aim of preventing harm and protecting vulnerable populations. But this is not the only issue people have in mind regarding packaging.
Child-resistant packaging for flower not only seems problematic because it is incongruent with regulations for other harmful household substances including alcohol but also because it creates trash. A lot of it.
The Single-Use Abuse
The Sustainable Cannabis Coalition estimated that in 2020, the US Cannabis Industry used almost one billion pieces of single-use plastic that mostly ended up in landfills. Research and testing activities–including those for the cannabis industry–adds up to over 12 billion pounds per year. The majority of these plastics cannot be recycled due to their diverse material composition. A whopping 40% of total emissions are attributed to our procured goods and services.
Packaging materials, particularly plastics, are composed of various substrates such as polyethylene, each with distinct properties. Sustainability concerns arise as certain laminated plastics prove difficult to recycle. Challenges persist, especially in the context of single-dose packaging and restrictions on child-resistant reclosable plastics.
“People want to recycle bioplastics but they don’t have good barrier properties,” Gus Green states. “There is also a problem with the idea of biodegradables because they are designed to break down. Biodegradable plastic is not allowed in child-resistant reclosable plastics because the mechanism will fail because the material is frail, but laminated plastics that have great barrier properties cannot be recycled.”
The Sustainable Cannabis Coalition blog announced that in 2021, CULTA, a cannabis company, partnered with The High 5 Initiative, a non-profit company that’s working to keep Polypropylene #5 plastics out of landfills through recycling. Patients can return packaging to CULTA, where the initiative team sorts and processes the materials, recycling over 95% and transforming #5 plastics into Post Consumer Resin (PCR) for manufacturing other products.
Despite the environmental benefits, transitioning to eco-friendly packaging faces challenges, including cost implications. For instance, CULTA notes that switching to eco-friendly cellulose packaging would increase costs, making it economically challenging for cannabis companies, coupled with perceived quality issues with thinner and more pliable cellulose bags (which may seem cheaper, thus impacting consumer acceptance).
The Future of Plastic Waste in Cannabis
New metalized child-resistant compostable cellulose film bags have entered the market for the first time and offer the opportunity for both home and industrial composting, including the cannabis industry.
“In Canada, Wyld has adopted child-resistant compostable pouches. Many edibles brands are moving to an inner-outer pack combo with individually-wrapped pieces inside a mother bag, similar to many traditional candies. Think caramels, Starburst, cough drops, Hershey’s Kisses, Reese’s cups, etc. – cannabis consumers want fresh products, and individual wraps accomplish that. To avoid more single-use plastics, NatureFlex is seeing significant, promising interest,” Elisha Hedin, a regional sales manager from Futamura, manufacturer of NatureFlex explained. “Compostable films can actually have a very good barrier and NatureFlex is an ideal packaging material for both gummies and flower. There’s a perception in the industry that compostable materials are low quality and that’s simply not true.”
Wyld, a Climate Neutral Certified brand, offers the cellulose-based packaging made from cellulose film laminated to a biosealant for their gummies. In home composting, this metalized compostable film degrades completely in 12-16 weeks. In industrial settings, it takes twice as fast to convert the cellulose into water, CO2, biomass, and mineral salts in just 6-8 weeks.
Meanwhile, in the research industry, Polycarbin has touted itself as the world’s only circular economy for single-use lab plastics. This California-based company helps labs achieve their sustainability goals by diverting these valuable materials from landfills and incinerators into the next generation of low-carbon lab products.
“Much like with food-tech and biotech, the cannabis industry is driven by a growing dependence on single-use plastics. From the harvest fields to the QC and QA laboratories, it is more important than ever that this industry consider the carbon footprint associated with its supply chain,” James O’Brien, CEO of Polycarbin emphasized. “Through responsible waste stream management and sustainable procurement, the cannabis laboratories can significantly attenuate the environmental impact of a major source of its scope three emissions—fossil fuel-derived, single-use plastics.”
As the packaging and research industry grapples with the complex interplay of material properties, sustainability challenges, and stringent safety standards, a delicate balance must be struck. Navigating the evolving landscape requires continuous innovation, collaboration, and adherence to regulations, ensuring that the packaging not only safeguards products but also contributes to a sustainable and secure future.
Committee Blog: A Guide to Navigating Cultivation Environmental Requirements
Navigating environmental requirements and reviews can be one of the most challenging and costly aspects of obtaining a cannabis cultivation license. Environmental standards and regulatory requirements differ from state to state and within local jurisdictions. While regulations may vary, cannabis operators encounter similar environmental requirements nationwide. Environmental reviews and impact assessments require an evaluation of cultivation policies and operations for sediment and erosion control, water usage, wastewater discharge, energy efficiency and carbon footprint, air quality, and odor control. This guide will aid operators in establishing the best practices for these environmental concerns to create a smoother environmental review process for the cultivator.
Sediment and Erosion Control
Sediment and erosion control methods are required for outdoor cultivation to ensure the facility has a comprehensive mitigation plan to prevent adverse effects the outdoor crop may cause to the land. Sediment controls are structural measures intended to complement and enhance the implemented erosion control practices and reduce any sediment discharge. Erosion control is a soil stabilization process consisting of mitigating measures to prevent soil particles from detaching and moving into stormwater runoff. Ensuring this compliance may include implementing Best Management Practices (BMPs) for Sediment and erosion control. These BMPs should be implemented before the onset of the rainy season, typically in October. Sediment and erosion control devices and measures should be replaced when they deteriorate.
Sediment Control BMPs
Silt fences
Fiber rolls
Hydroseeding
Sediment Trap
Inspect the trap on a routine schedule for litter and debris
Remove the sediment built up in the trap and sprinkle it lightly over vegetated areas to increase soil fertility
Gravel bag berms
Sandbag barriers
Straw bale barriers
Observation station on the property for visual monitoring of sediment pollution
Add gravel to dirt roads
Add stormwater detention basins
Erosion Control BMPs
Vegetative Swales & Buffers
Swales should be trimmed to prevent restriction of flow
Routinely monitor for any debris and overflow
Buffers should be added to the edges of parking lots and storage areas
Placement of straw mulch over disturbed land
Should be replaced often
Soil binders
Vegetation preservation
Vegetation replacement for any disturbed areas that will not be in use
Seed mixes containing native grass and wildflowers
Hydroseeding
Earth dikes
Waste Usage and Wastewater Discharge
Water usage and wastewater discharge management plans are required to ensure the cultivation facility legally and efficiently obtains its water and that no hazardous water is dumped onto the land surface, directly into the ground, or into another body of water where it could negatively impact the environment. Water usage may require obtaining documentation demonstrating you own the water rights to your facility or property. Cultivations connected to their municipalities’ water district may only need to report that information to meet this requirement. Such a facility may also need to contact its water provider to create a water rights letter showing the operator has the right to use that water. Cultivations that use other water supply methods, like wells, may need to provide a detailed report of their water quality and have well flow testing performed. Depending upon your state, you may also need to show how your water will be conserved. A cultivator may be required to create a water conservation plan detailing the procedures implemented at the cultivation site to conserve water. Wastewater discharging typically will require a cultivation site to apply for a Wastewater Discharge permit. Wastewater discharging plans that thoroughly explain how the cultivation will discharge any hazardous wastewater and what mitigating practices will be implemented to prevent wastewater from entering the environment untreated are also frequent requirements for this process.
Water Conservation Methods
Recycling irrigation systems
Automated irrigation systems
Precision emitters
Watering more frequently throughout the day in smaller amounts
Planting pots
Divert the dehumidifying and cooling system’s piping into a holding tank to reuse the water for irrigation
Use organic mulch around each plant to prevent moisture loss
Rainwater harvesting, if allowed in your area
Substrate sensors to monitor water saturation
Wastewater Discharge Measures
Using planting pots to prevent excess runoff
Vegetative swales and buffers to capture wastewater
Recycling irrigation systems with reverse osmosis and ultrafiltration or thermal evaporation
Recycling systems that don’t have a filtration system can hold any hazardous wastewater in a holding tank and have it transported to an approved wastewater treatment facility
Substrate sensors for the prevention of excess runoff
Stormwater runoff prevention
Store pesticides, chemicals, and fertilizers indoors and away from any outdoor growing areas and in approved containers
Covering wastebins
Divert stormwater away from any stockpiled materials
Energy Efficiency and Carbon Footprint
Cultivation energy efficiency and carbon footprint reporting are becoming more popular among regulators as the country moves toward environmentally friendly practices. Energy efficiency may require the cultivation site to comply with specific requirements for equipment and lighting. Many licensing bodies also require an energy efficiency plan that details what mitigating measures the operator will implement to reduce energy costs. Carbon footprint reporting may require greenhouse gas emission (GHG) reporting, which can require a cultivator to purchase carbon offsets. Green energy plans are sometimes required; these plans demonstrate how the cultivation will utilize green energy options to reduce their carbon footprint.
Energy Efficiency
LED lighting
Automated irrigation systems
Automated blackout curtains for greenhouses
On-site composting
Low-flow fixtures
Split ductless air condition
Chilled water systems for dehumidification
Modulating hot gas reheat forced air systems
Sensor motion lighting in rooms that aren’t frequently entered
Adjust lighting schedules based on the weather if using mixed-light
Installing solar panels
Request an energy efficiency review from your utility provider
Carbon Footprint
Sign up with a clean energy provider that partners with your utility company and reinvests the funds from the program into clean energy initiatives in your state
Avoid generation use wherever possible
Install renewable energy sources at your facility, like solar panels
Replace pesticides with biocontrols using predatory insects
Use recycled or biodegradable packaging, even for wholesale flower
Cultivate companion plants that deter pests and attract beneficial insects
Reduce or eliminate lighting requirements by establishing a greenhouse or outdoor cultivation facility
Air Quality and Odor Control
Air quality reviews may be triggered for cultivation facilities, including the requirement to obtain an air permit. Air permits allow an operator to release a limited amount of pollution within certain restrictions. Air quality reviews for cultivations are triggered by several factors based on the state requirements, some of which may include drying, processing, generator use, fugitive emissions, and pesticide application. If a cultivator is required to obtain an air permit, they will be licensed to perform those activities. Cultivations going through air quality reviews may need to provide an Air Quality Control Plan outlining the mitigation efforts the cultivator will make for air quality pollution. Odor Control Plans are one of the most common regulatory requirements for cannabis businesses. If your environmental review includes odor control and you operate an outdoor cultivation site, you may be required to conduct an odor control study on your facility. These studies use wind patterns to measure the distance the odor from your cultivation will travel. Based on your state or local jurisdiction’s requirements, an odor control study may require you to move the border of your canopy. Conversely, an odor control study may prove that your cultivation will not be a nuisance due to odor pollution, and no mitigating measures will be required. Odor control plans should detail precisely what mitigating measures the cultivator will implement and, if available, data on how effective those measures will be.
Air Quality Control Plans
Wetting the surface of dirt roads during the dry season
Encourage ride-share amongst your employees
Reduce VOCs wherever possible
This can include timing harvesting to reduce ozone impact
Include a chemical usage plan that describes how pesticides, fertilizers, and other agents will be stored and disposed of in alliance with the manufacturer’s recommendations
Detail how you will maintain Safety Data Sheets (SDS) on all chemicals at the facility
Odor Control Plans
Indoor cultivations and greenhouses can implement the following measures:
Use carbon filters
Explain in your plan how carbon filters work, provide data on their filtration rates, which you can locate in the manufacturer’s guide, and how often you will replace them
Use wet scrubbers for indoor cultivation or greenhouses
Explain how the air is treated when it passes through the scrubber
Implement biofiltration measures
Explain how the air will pass through soil, mulch, or other organic matter to filter the air
Use oxidization treatments through your facility’s ventilation system
Explain how the process of oxidization removes odor
Have open communication with your neighbors regarding odor
Explain how you will speak with your surrounding neighbors about any odor concerns and request your neighbors contact you if they do smell odor so you can begin an assessment into structural or equipment failures and, if needed, implement further mitigating measures to your plan
Outdoor cultivations can implement the following methods:
Hire a professional to do an odor study to prove your facility’s compliance
Plant fragrant flowers around the exterior of the site
Use oxidization treatments through high-pressure misting devices around your cultivation area
Explain how the process of oxidization removes odor
All cultivation types should have open communication with surrounding neighbors regarding odor
Explain how you will speak with your surrounding neighbors about any odor concerns and request your neighbors contact you if they do smell odor so you can begin an assessment into structural or equipment failures and, if needed, implement further mitigating measures to your plan
As regulatory requirements vary across the country, cultivators should carefully read their regulations and contact state and local departments for guidance on requirements specific to their operations. A thorough understanding of what plans must be created, studies performed, and special permits obtained will create a smooth environmental review process. Join the upcoming NCIA webinar from the Cannabis Cultivation Committee to dive deep with industry professionals on navigating environmental reviews across the United States.
Committee Blog: Discovering the Potency of Data – How Cannabis Brands Can Harness Audience Insights to Elevate Success
In the rapidly evolving landscape of the cannabis industry, understanding your audience is critical to staying ahead of the curve. For brands, this can be difficult given retailers hold the keys to their customer data. However, through the utilization of digital marketing, cannabis brands have the opportunity to glean invaluable insights from their audience data. In this comprehensive breakdown, we’ll explore how cannabis brands can leverage audience data from programmatic advertising, email campaigns, SEO and more to gain a deeper understanding of their customers and enhance their overall success.
The Power of Data in the Cannabis Industry
Data is the cornerstone of informed decision-making, and in the cannabis industry, with its regulatory restrictions and shifting consumer preferences, its importance cannot be overstated. By harnessing audience data from digital marketing campaigns, cannabis brands can move beyond conjecture and gain actionable insights into their customers’ behaviors, preferences, and needs.
Analyzing Audience Demographics
One of the primary benefits of digital marketing is the ability to gather detailed demographic information about your audience. Through tools like Google Analytics, social media insights, campaign reports, and customer relationship management (CRM) platforms, cannabis brands can paint a vivid picture of their customer base. From age and gender to location and interests, this demographic data provides invaluable insights into who your customers are and how best to engage with them.
Understanding Consumer Behavior
Beyond demographic data, digital marketing campaigns offer a window into consumer behavior. By tracking website traffic, engagement metrics, and conversion rates, cannabis brands can gain a deeper understanding of how customers interact with their brand online. This insight allows brands to identify trends, uncover pain points, and optimize their digital presence to better meet the needs of their audience.
Personalizing the Customer Experience
One of the most powerful applications of audience data is in personalizing the customer experience. By segmenting their audience based on demographic information, cannabis brands can tailor their messaging and offerings to resonate with individual customers. Whether through targeted email campaigns, customized product recommendations, or educational content, this level of personalization not only enhances the customer experience but also drives engagement and loyalty.
Optimizing Marketing Strategies
Audience data also serves as a compass for guiding marketing strategies in the cannabis industry. By analyzing the performance of various marketing channels, content types, and messaging approaches, brands can identify what resonates most with their audience and allocate resources accordingly. Whether it’s investing more heavily in content creation, refining digital advertising tactics, or experimenting with email campaigns, data-driven insights enable brands to optimize their marketing efforts for maximum impact.
Predicting Trends and Forecasting Demand
In addition to informing day-to-day marketing decisions, audience data can also provide valuable insights into larger industry trends and consumer preferences. By analyzing macro-level data trends across their customer base, cannabis brands can identify emerging market opportunities, anticipate shifts in demand, and stay ahead of the curve. Whether it’s launching new product lines, expanding into new geographic areas, or pivoting to meet evolving consumer needs, data-driven forecasting empowers brands to make informed strategic decisions.
Enhancing Product Development
Finally, audience data can play a pivotal role in shaping product development strategies within the cannabis industry. By soliciting feedback from customers through surveys, reviews, and social media interactions, brands can gain valuable insights into product satisfaction, preferences, and needs. This feedback loop not only informs the development of new products but also enables brands to refine existing offerings based on real-time customer input, ensuring that their products remain relevant and competitive in a rapidly evolving market.
Conclusion
In conclusion, audience data is a potent asset for cannabis brands seeking to unlock the full potential of their marketing efforts. By analyzing demographic information, understanding consumer behavior, personalizing the customer experience, optimizing marketing strategies, predicting trends, and enhancing product development, brands can gain a deeper understanding of their customers and elevate their overall success in the cannabis industry. As digital marketing opportunities continue to evolve, brands that harness the power of data will undoubtedly emerge as leaders in this dynamic and rapidly growing market.
Member Blog: Colorado’s Evolving Cannabis Testing Regulations
Among the first two states to legalize and the first market to open, Colorado has had adult-use cannabis regulations in place for more than a decade now and helped set a standard for all the programs that came after it.
But Colorado’s testing regiment, like the industry, is ever evolving, with the state testing for additional pesticides beginning this year, for example. In addition, the state’s new “reduced testing allowance” could make the whole process easier for manufacturers in good standing.
Like many states, Colorado requires testing of the final product, be it flower, edible or pre-roll, which means not only must your flower be clean, but everything else you put into your products as well. In the case of pre-rolls, that means the paper used in the pre-rolled cones, as well as the filter tip.
The “big four” heavy metals (arsenic, cadmium, lead and mercury); and
Cannabinoid potency.
WATER ACTIVITY
Like every state, Colorado testing requires laboratories check for water activity because high amounts of moisture can create an environment with the potential for mold growth.
Any water activity above 0.70 Aw creates the conditions for mold to grow, which can be harmful if consumed, which is why Colorado caps water activity at 0.65 Aw in flower and pre-rolls.
PESTICIDES AND SOLVENTS
Colorado also requires testing for residual pesticides and other chemicals and has been slowly ramping up its required pesticide testing.
For example, on January 1, 2023, the state tested for a total of 13 different pesticides. By July 1, 2023, that number had increased to 28. But new regulations going into effect this year drastically increase that number.
Beginning July 1, 2024, state law requires labs to test cannabis products, including completed pre-rolls, for 99 different pesticides, each with their own actionable limits that can cause a whole batch to be destroyed.
Additionally, the state requires cannabis concentrate products, including those used in infused pre-rolls that combine flower with a concentrate for increased potency and flavor, to be tested for residual solvents.
The state requires testing and provides actionable limits for 13 specific solvents that can be used to make extracts and concentrates, as well as requiring “none detected” for “any other solvent not permitted for use.”
HEAVY METALS
The Centennial State also requires testing for the heavy metals mercury, cadmium, lead and arsenic. All four metals are toxic to humans, even at small doses, and can damage all the body’s vital systems, including pulmonary, reproductive and even the central nervous system.
Testing for heavy metals is especially important because cannabis plants are a well-known bio-accumulator that absorbs and collects heavy metals from the soil in which it grows.
For all inhalable products, including pre-rolls, the state sets the pass/fail actionable level at 1.5 parts per million (PPM) for mercury and arsenic, 0.5 PPM for cadmium and 1 PPM for lead.
MICROBIALS AND MYCOTOXINS
But while heavy metals are dangerous, they do not pose the greatest risk to human health among the testing. That distinction is reserved for microbials and mycotoxins.
Among the microbes – bacteria and fungus – for which Colorado requires testing are salmonella, Staphylococcus aureus and e coli. There is also a total yeast and mold limit.
Mycotoxins are a toxic compound produced by molds, such as Aspergillus, and can suppress the immune system and cause liver damage. Testing for mycotoxins help ensure cannabis products are safe for human consumption.
Colorado requires testing for two classes of mycotoxins, Aflatoxins and Ochratoxin A, each with an actionable limit of 20 PPM. Both have properties that can alter DNA and potentially cause the formation of cancer cells.
PRE-ROLL TESTING
But it’s not just the flower that needs to be tested in Colorado. Products must be tested in their final form, which means that pre-rolls, for example, must be tested after they have been packed, so the paper has to be as clean as the flower. And with no regulations or requirements on the testing of rolling papers themselves, several manufacturers have run afoul of the rules because of untested rolling papers or wraps. And testing by SC Labs, one of California’s licensed testing labs, found that 11% of rolling papers tested during a recent study would fail testing. So even if you are packing your own pre-rolls, it’s important to make sure the paper you choose is tested and clean.
Colorado has also had issues with this in the past, particularly in palm leaf wraps and blunts. In 2022, the states Marijuana Enforcement Division issued a recall for King Palm products due to unsafe mold and yeast levels found in the products.
“Take due diligence to make sure your product is viable,” says Custom Cones USA Compliance Manager André Bayard, noting that manufacturers should work with suppliers that are working to set industry standards. “Any one issue can be detrimental to your brand reputation.”
REDUCED TESTING ALLOWANCE
Recognizing the unique challenges and cost of testing, Colorado has introduced new reduced testing allowances, including one tailored for pre-roll cannabis products. This allowance enables cannabis manufacturers to submit composite samples for testing, rather than subjecting each individual batch of pre-rolls to separate testing.
For example, a manufacturer may achieve a Reduced Testing Allowance for contaminant testing for a specific product, like pre-rolls, if every production batch that it produced during at least a four- to eight-week period passed all contaminant tests. However, if those pre rolls are produced using different input materials, such as a different cannabis category (e.g. flower or trim), different wrapper materials, different processes or different equipment, they must get a separate Reduced Testing Allowance.
Additionally, effective July 1, 2024, to achieve or maintain a Reduced Testing Allowance for microbial contaminants, a cultivation facility must have a Hazard Analysis and Critical Control Point (HACCP) System in place. An HACCP must contain elements defined in ASTM D8250-19: “Standard Practice for Applying a Hazard Analysis Critical Control Points (HACCP) System for Cannabis Consumable Products” that addresses each product type for which a microbial contaminant Reduced Testing Allowance is sought.
It’s important to highlight that not all cannabis products qualify for this reduced testing allowance, and pre-roll manufacturers must meet specific criteria to be eligible for this exemption. For example, to get a reduced testing allowance for microbial testing, a company must maintain cleaning records and maintenance records.
Reduced testing allowances are valid for one year.
It’s a complicated program to be a part of, but well worth it for manufacturers who have their procedures locked in, as well as a supplier that also tests their pre-rolled cones and tubes to the highest standards to ensure passage of these important tests.
FINAL THOUGHTS
Colorado’s pre-roll cannabis testing regulations play a vital role in safeguarding public health and ensuring consumer confidence in the state’s legal cannabis industry. And from a business standpoint, a testing failure can be costly, especially for smaller businesses, and can follow a company and its products even after the issue is corrected.
Make sure your suppliers take the same care as you do to ensure passage of all required tests. And always ask for COAs.
Member Blog: Creating Cohesive Cannabis Teams – How AI-Driven Hiring Promotes Diversity and Innovation
Creating cohesive teams in the rapidly growing cannabis industry involves overcoming unique recruitment and hiring challenges, including evolving regulatory landscapes and societal misconceptions. The shift from traditional recruitment methods to innovative, AI-driven approaches marks a fundamental transformation in how companies identify, evaluate, and onboard talent, promising a more efficient, equitable, and effective hiring process.
Traditionally, the cannabis industry, like many others, relied on posting job openings on industry-specific job boards, sifting through resumes, conducting face-to-face interviews, and relying on gut instincts. These methods, while having their merits, come with significant limitations, especially in an industry as specialized and fast-paced as cannabis. The reliance on subjective assessments and the potential for bias, along with the inefficiency and high risk of overlooking culturally fit candidates, highlight the need for a new approach.
The adoption of AI-driven recruitment strategies represents a significant leap forward. Platforms leveraging advanced technologies can streamline the hiring process and enhance the quality of matches between employers and candidates. For instance, AI platforms such as jobworX ai, can analyze vast amounts of data quickly and accurately, evaluating candidates across various workplace personality factors, and providing employers with actionable insights into candidate capabilities, personality traits, and potential cultural fit. These insights are crucial for aligning recruitment choices with organizational goals and the unique demands of roles within the cannabis industry. For instance, predictive analytics can forecast a candidate’s success in a particular role, while natural language processing (NLP) and machine learning (ML) enhance the efficiency of sifting through applications, identifying top talent based on predefined criteria This comprehensive approach allows for a more nuanced understanding of each candidate’s potential fit within a given role and organizational culture, addressing the unique challenges of the cannabis sector.
AI-driven recruitment strategies reduce reliance on subjective judgments, mitigate the risk of bias, and expedite the selection process. By focusing on personality traits and cultural fit alongside technical qualifications, these platforms enhance job satisfaction and retention rates. This holistic approach is invaluable in the cannabis industry, where adaptability and alignment with the company’s mission are crucial.
Moreover, AI tools facilitate a deeper understanding of market trends and candidate expectations, allowing cannabis companies to adapt their hiring strategies in real-time. This adaptability is essential in a sector where regulatory landscapes and consumer preferences constantly shift. By harnessing the power of AI, cannabis employers can navigate these complexities with confidence, ensuring their teams are not only compliant but also diverse, innovative, and aligned with the company’s mission and values. In essence, AI transforms data into strategic decision-making power, setting the stage for sustainable growth and competitive advantage in the cannabis industry.
Navigating regulatory frameworks and societal misconceptions is a significant challenge in the cannabis industry. AI tools can help businesses make hiring decisions that are compliant, fair, and unbiased. By automating and streamlining the vetting process, AI ensures that all applicants are evaluated against the same legal standards, reducing the risk of non-compliance.
Looking toward the future, several key predictions and trends emerge, highlighting how AI technologies will continue to revolutionize hiring in the cannabis industry. Predictive candidate matching, an enhanced focus on cultural and personality fit, streamlined and efficient hiring processes, increased accessibility and equity in hiring, and data-driven insights for continuous improvement are all trends shaped by AI integration. These advancements promise to reshape the landscape of recruitment and talent acquisition, making the process more efficient, equitable, and effective.
Building cohesive teams and maintaining a strong organizational culture is crucial for success. AI-driven recruitment tools, such as jobworX.ai, are revolutionizing the way companies approach this challenge by focusing on matching candidates with roles that align with their personalities and values. Kristina Etter, a freelance writer and journalist based in Colorado, highlighted in her article, Cannabis Hiring 2.0: jobworX ai’s Game-Changing New Approach, the innovative approach to recruitment within the cannabis industry via jobworX.ai, employing a Personality Assessment tool to match job seekers’ personality traits with the specific needs of cannabis roles. This method boosts job fit, worker satisfaction, and organizational synergy. It highlights the transformative role of AI in modernizing hiring practices by leveraging AI and personality assessments to ensure that candidates are not only technically skilled but also culturally and personally compatible, marking a significant advancement towards more streamlined and harmonious recruitment processes in the cannabis sector.
By leveraging advanced AI algorithms and comprehensive personality assessments, these platforms provide a data-driven approach to identifying candidates who not only possess the necessary skills but also fit seamlessly into the company’s culture. This emphasis on cultural fit is particularly important in the cannabis industry, where passion, innovation, and adaptability are key drivers of success.
AI-driven tools analyze candidates’ workplace personality traits, such as teamwork, leadership, and interpersonal dynamics, to determine their potential for contributing to a positive and collaborative work environment. By prioritizing these factors alongside technical qualifications, companies can build harmonious teams that foster a sense of shared purpose and drive organizational growth.
Moreover, by streamlining the recruitment process and reducing the risk of bias, AI-driven platforms help create a more diverse and inclusive workplace. This diversity of thought and experience is essential for driving innovation and navigating the unique challenges of the cannabis industry.
In conclusion, the integration of AI-driven hiring strategies within the cannabis industry marks a pivotal evolution in how companies approach talent recruitment and onboarding. By moving beyond traditional recruitment methods and embracing AI’s capabilities, the industry is set to revolutionize the way it builds teams, fostering environments that are not only more cohesive but also rich in diversity and innovation.
AI-driven tools offer a more nuanced and comprehensive evaluation of candidates, analyzing a wide range of workplace personality traits to ensure potential hires will contribute positively to a collaborative and innovative work environment. This focus on creating teams that share a sense of purpose is essential for driving organizational growth and maintaining a strong organizational culture amidst the rapid changes and regulatory complexities of the cannabis industry.
The advancements in AI-driven recruitment, including predictive candidate matching, a focus on cultural and personality fit, streamlined hiring processes, and data-driven insights, are set to make the hiring process more efficient, equitable, and effective. As the cannabis industry continues to grow and evolve, integrating AI into hiring practices will be instrumental in building adaptable, innovative teams capable of overcoming the sector’s challenges and seizing its opportunities.
In essence, the future of hiring in the cannabis industry, shaped by AI integration, is bright. It offers the promise of a more strategic, data-informed approach to recruitment that aligns with organizational goals, fosters diversity and innovation, and sets the stage for sustainable growth and competitive advantage. As companies navigate the complexities of the cannabis market, AI-driven hiring strategies will undoubtedly become a cornerstone of successful talent acquisition and management, ensuring that the industry remains at the forefront of change and innovation.
Member Blog: How to Build a Sustainable Cannabis Packaging Solution
According toNielsenIQ, 92% of consumers say sustainability is important when choosing a brand today. Packaging can play a significant role in helping brands meet their sustainability goals and attract eco-conscious consumers. Designing and manufacturing sustainable packaging requires a holistic approach that includes understanding the actual container, the manufacturing process, transportation and energy requirements, carbon footprint, and government regulations. When it comes to the cannabis industry, packaging solutions must also meet requirements around child resistance, tamper-evidence, opacity, resealability, label design, and more. Despite the complexities, sustainable cannabis packaging can be compliant, functional, and beautiful. Cannabis brands have many eco-friendly pathways to consider.
Compostable
Compostable packaging refers to packaging that will decompose into nutrient-rich organic matter, CO2, and water in a controlled environment in the home or commercial composting facility. According to theU.S. Composting Council, compost diverts waste from ending up in landfills, conserves water, improves soil health, promotes plant growth, and combats climate change. Because of their organic composition, cannabis products are an emerging application for compostable packaging made from hemp and other plant-based materials. Compostable products must meet strict testingrequirements for decomposition, such as specific environment, specific time frame, environmental toxicity, etc. Compostable should not be confused with biodegradable packaging, which has no such requirements and may contribute to greenwashing. Compostable packaging solutions are available for cannabis products, including pre-rolls, flower, and edibles.
Recycled Materials
Beyond using recyclable packaging, today’s brands are increasingly using recycled materials like post-consumer recycled (PCR) plastics, ocean-bound plastics, and recycled paperboard to demonstrate a commitment to the environment. Post-consumer recycled content in packaging contributes to a circular economy by extending material life cycles. According to theUS Plastic Pact, it reduces landfill waste, conserves natural resources, saves energy, and lowers greenhouse gas emissions. Adding PCR content to packaging decreases its carbon footprint (reduced energy use, greenhouse gas emissions, extraction of finite natural resources, and landfill disposal) compared to using 100% virgin materials, helping brands meet their sustainability goals. In addition to consumer demand, government regulations are also driving the use of PCR materials. New York introduced requirements for PCR plastic use in cannabis packaging. The Marijuana Regulation & Taxation Act (MRTA) states, “cannabis product packaging cannot be made of any plastic, unless that plastic contains a minimum 25% post-consumer recycled content.”
Reusability
Reusable shopping bags, refillable water bottles, and metal drinking straws are just a few reuse initiatives people have worked into their everyday routines over the past several years. Reusability reduces single-use packaging waste and promotes a circular economy. Consumer packaged goods brand owners – including those in the cannabis industry – are beginning to capitalize on the growing refill and reuse mentality by introducing reusable packaging. Reusable cannabis packaging can be refilled with more cannabis or used for other purposes. Material selection is essential to ensure reusability is practical and sustainable. Glass containers and high-quality, durable plastics are long-lasting and well-suited for reuse. Food-safe packaging solutions provide added functionality and additional usage occasions. Dockside Cannabis dispensaries feature seven ways to repurpose old cannabis containers.
Paper, Inks & Labeling
Secondary packaging, label components, and decoration can also play a role in a brand’s sustainability story. UsingForestry Stewardship Council (FSC) certified paper for shipping cases, secondary cartons, and inserts helps protect healthy, resilient forests. Several cannabis brands use FSC paper for their rolling papers. Inks may not be top of mind when considering eco-friendly packaging, but even seemingly minor details can have a significant impact. Inks, dyes, and coatings can inhibit recyclability and/or reusability, so using soy-based, water-based, or vegetable-based inks contributes to the lifecycle of a package.Soulshine Cannabis uses paper sourced from sustainable PNW forests and prints with vegetable-based inks as part of its commitment to be an environmentally conscious cannabis company.
Shipping Efficiencies
For a packaging solution to be truly sustainable, it needs to perform at every stage of its journey, from the warehouse to the consumer. Shipping is a big part of a package’s journey and an important part of its carbon footprint. According to theEPA, greenhouse gas (GHG) emissions from transportation account for about 29% of total U.S. greenhouse gas emissions. When it comes to transportation – and cannabis – size matters. Sizing is an essential factor when selecting the proper cannabis packaging, as it can impact the quality of the product. However, right-sizing your package to ensure it’s not larger than it needs to be can reduce the environmental impacts of shipping. Light-weighting – reducing the weight of your package by rethinking the size, material, or unneeded components – can also make a difference. Efficient packaging can reduce fuel consumption and emissions associated with shipping.
When it comes tosustainable cannabis packaging, there is no one-size-fits-all solution. Brands should consider a variety of tactics including material, size, weight, decoration, and more to find the most effective and impactful package for their product.
Committee Blog: The Importance of Insurance and Risk Management for Early State Applicants
2024 is shaping up to be a bang-up year for cannabis whether its constant news about the potential for federal action regarding rescheduling, or multiple states expanding their current cannabis markets or entering the cannabis space for the first time. As exciting as all this is for prospective cannabis business owners and operators, there’s an issue which we in the cannabis industry often encounter time and time again.
There’s plenty of businesses seeking to enter the industry who overlook the importance of insurance and risk management. This may not be the most exciting topics when thinking about cannabis, but its one of the most important and often sidelined. Here, we’ll dive into how insurance and risk management can impact your cannabis business and why it’s important not to delay this vital step in your business development.
Insurance and Cannabis
Due to the current federal illegality of cannabis, just the process of getting insurance for your cannabis business can be a headache. But just because it can be frustrating to get, doesn’t mean that this important business step should be forgotten about or ignored. If anything, starting early on your cannabis insurance path will help set you apart from others in early licensing phases and can often help with getting a license itself.
All states which have their own cannabis market require some form of insurance, and many require insurance documentation as a requirement for the licensing process. This can often be any form of insurance—from fire protection to property—so long as it’s up to date and follows the state regulations and guidelines.
What Are the Risks?
Perhaps no bigger risk in working with cannabis nowadays is the federal side of business. While we are eager about the prospects for rescheduling and with that, hopefully, some banking regulations such as some version of the SAFE Banking Act, there is always the federal risks. The odds are low that the federal government is going to step in and shut down all cannabis operations in states, but they aren’t entirely eliminated risks either.
Of course, when it comes to risk management, the federal government and their response to cannabis business isn’t the only thing business owners need to be concerned with. There’s the risks of theft of cash, diversion of cannabis and cannabis product, and even high turnover of staff. These are all inherent risks that should be managed and assessed when pursuing a cannabis license. This is also the case for businesses which may be up and running, though it is most critical to assess the risks and your own handling of them as early as possible.
Early Steps to Take
Let’s say you’re interested in opening your cannabis business. Maybe you’ve received a provisional license from the state, or perhaps you’re waiting for an application licensing round to open. What should you do when it comes to insurance and risk management?
Simple; start sooner than you anticipate. Over the years, clients have asked me countless times, “When should I get to work?”. It never hurts to be over-prepared, but it can torpedo your chances at licensure or opening a compliant cannabis business if you delay or rush some of the most important and necessary business functions. Insurance and risk management may not be what gets people into cannabis (I’m a nerd and think both these areas or interesting but even *I* wouldn’t say they’re what got me into this industry!) but they are essential. Start early and begin doing your own research in these areas.
Thankfully, there are insurance providers who will work with “plant-touching” businesses such as a dispensary or cultivation facility. They may not be the easiest to come by, but they are out there and are familiar with cannabis operations and the risks associated with insuring a business like yours.
And when it comes to risk management, identify your own risks through a thorough SWOT analysis (strengths, weaknesses, opportunities, and threats) or a detailed risk assessment. Find professionals who can guide you through this too if needed, as they’ll be the ones who can highlight what are some of the unique and individualized risks your business may have. For example, an outdoor cultivator has different risks than an indoor cultivator or a hoop-house cultivator.
When it comes to insurance and risk management, it’s never too early to begin discussing and meeting with professionals who can help and this is an area which shouldn’t be ignored or put onto the back burner for too long.
Committee Blog: Crash & Grab – Hitting the Brakes on a Cannabis Burglary Trend
Haley Glover, Senior Security Consultant at Sapphire Risk
So, you run a cannabis business. You’ve spent years and years going through the licensing process, finding a suitable facility, hiring qualified employees, and growing top shelf buds to impress sophisticated buyers.
It hasn’t been easy – and it hasn’t been cheap. But that feeling you get when you help a sick customer find their new favorite medicine – well, that makes it all worthwhile. After all that hard work, nobody wants to see it all slip away in the middle of the night (and sometimes broad daylight) due to theft.
We have long known cannabis businesses’ perceived abundance of cash on hand has attracted criminal activity. This is evident with the industry’s issues of armed robberies and the silent scourge of employee theft, targeting everyone — well-known brands likeCookies to mom & pop shops. This blog will examine a recent trend which has been on the rise, criminals utilizing vehicles to breach facilities in the act of a burglary.
While not a new technique, vehicle rammings have risen in prevalence over the past few years, sparked in part by a TikTok trend known as the Kia Boyz. As the Cannabis Information Sharing & Analysis Organization (Cannabis ISAO) detailed for The Blunt, thetrend starting picking up within the industry in 2022 as social media spread details on how to easily start non push-button ignitions on certain makes and models utilizing aUSB charger.
It is important to understand crime trends like this to evaluate a changing risk landscape, which can impact how resources are deployed. But for this blog, how a criminal obtained a stolen vehicle and breached your outer security isn’t the most relevant question. We will focus both on mitigation strategies, as well as how to respond to such incidents.
Let’s Hear From A Security Professional
With years of experience in cannabis (not to mention jewelry stores and pawn shops), the Sapphire Risk team are bona fide experts in security. Though they prefer to be involved as early as the application/buildout process, Sapphire’s team frequently gets called in after break-ins to help operators fortify their facilities.
We spoke with Sapphire Risk’s Senior Security Consultant Haley Glover, who shared the following advice about preventing unauthorized vehicular-assisted entry. “Implementing physical barriers like bollards or security planters placed strategically around the exterior of the building are great ways to prevent a vehicle from successfully driving through your location.” Bollards can be tremendously effective at stopping an errant vehicle in its tracks. Keep an eye out and you’re likely to notice them around federal buildings, banks, and high-end retail stores!
Another area of concern for cannabis businesses are the entryways. Haley advises, “A business can utilize the strongest and most secure door, but without a frame to match it, the door is useless, so it’s important to consider all aspects of a facility when securing it and identifying where threats and vulnerabilities could be present.” Don’t put a strong door in the middle of some cheap drywall!
Beyond Walls, Bars & Guards
While Warden Norton from Shawshank Redemption felt the only way to spend tax-payers’ hard-earned money was to get “more walls, more bars, and more guards”, adding additional physical barriers is not the only deterrence strategy that cannabis operators should be considering to safeguard their facilities.
Washington State’s Senateunanimously passed a bill that would increase penalties for anyone who utilizes a vehicle to gain entry into a cannabis retailer.Senate Bill 6133, sponsored by state Sen. Jim McCune, R-Graham, would have a new “special allegation” to seek an additional year of custody for the convicted criminal. Prosecutors could also charge the suspect with either first-degree or second-degree robbery – a class A or class B felony, respectively. (A PDF of the bill can be viewed here.)
NCIA’s Risk Management & Insurance Committee recently spoke with Senator McCune’s staff to learn more about this initiative. It is important to note that while this bill’s genesis from legislative recognition of a growing safety problem, there is now a model for industry professionals in other states to help drive legislation that will serve as a proactive deterrent.
While the passing of the Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers (INFORM Act) by Congress last year made headlines as a major win in the fight against Organized Retail Crime (ORC), it’s mainly addresses the problem of reselling stolen merchandise via online marketplaces, which is not the destination of stolen cannabis products. This is further proof cannabis businesses need to lean into their State legislatures to get support that is currently unavailable at the Federal level. Efforts like theRobbery Tracker that has been put together for several years by Uncle Ike’s Ian Eisenberg can help demonstrate to legislators the need for additional crime deterrents.
Dive into Insurance Mumbo Jumbo
Let’s talk about Protective Safeguards endorsements on cannabis property policies. These endorsements will exclude losses if all the described protective safeguards (security guards, alarms, cameras, vault, etc.) aren’t in place and/or properly functioning. Imagine having a house fire and getting your claim denied because you didn’t replace the batteries in your smoke detector. Well, it’s the same thing for cannabis.
Protective Safeguards endorsements can be as simple as a burglar alarm or as demanding as needing a follow car, two way radios, and telematics in place for your cannabis delivery vehicles. Another common provision is for product on display – most insurance policies required product to be stored in a safe/vault while a store is non-operational, with a sublimit only allowing around 25% of stock to be on display at any given time. Whatever the situation, best to make sure you read the policy thoroughly and understand what is required of you for coverage to respond.
One should also be familiar with the coverage sublimits in their policy and adjust them regularly to adequately reflect stock on hand. In another scenario, a cannabis business has all of their security systems and protective safeguards in line. Robbers come by and steal millions of dollars worth of cannabis products — but the business only has a $100,000 sublimit for cannabis inventory! Imagine the frustration of following all the rules and only walking away with a partial reimbursement after a huge loss.
Incident Response
As with any incident, things go more smoothly when you have a plan in place and everyone knows their roles and responsibilities. This can help ensure to both expedite the process, while also making sure vital steps are not overlooked.
Some items that should be contemplated in the plan might include:
Contact local law enforcement
Gather and maintain written event logs
CCTV video storage and maintenance
Appropriate follow-up steps depending on the situation
security weak-spot reviews,
HR interviews,
medical follow-up, or
filing an insurance claim
By having formal guidelines in place for event response, you’ll save valuable time and money getting the business operational again — while minimizing the confusion that your employees face during a time of crisis.
Conclusion
The RMIC advocates for a proactive approach to risk management that emphasizes the importance of informed decision-making. When in doubt, contact a trusted insurance professional and get a second set of eyes on your coverage — and your protective safeguards!
Member Blog: Amazon’s “Hemp” Products Are Lying to You, New CBD Oracle Lab Study Finds
Amazon’s “Hemp” Products Are Lying to You (and Hurting the Industry), New CBD Oracle Lab Study Finds
TL;DR: A CBD Oracle investigation finds that 43% of hemp products sold on Amazon often don’t contain hemp at all, and are deceptively marketed to evade Amazon’s lax enforcement.
The independent investigation of the hemp market on Amazon which was commissioned by CBD Oracle has found that almost half of all products lie to customers and has revealed the challenges faced by both consumers and honest sellers on the platform.
Along with 43% of so-called “hemp” products not containing any hemp at all, companies selling on Amazon.com often report their products being pulled from the storefront while those obviously lying about their contents remain up on sale.
The market is a minefield for consumers and the main benefactors are deceptive fly-by-night companies and Amazon themselves.
A Brief Introduction to Amazon’s Hemp
If you’ve ever bought or sold hemp before, browsing the selection available on Amazon is truly bewildering.
Products promise doses of hemp that are impossible to fit into a gummy, make obvious medical claims and reassure customers that they’re third-party lab tested while usually not making the results available on Amazon or anywhere else. There are so many red flags they start to look like wallpaper.
Amazonpolicy prohibits CBD unless it’s a topical product which has been specifically approved. This was established to prevent unreliable or illegal products from making it onto the site, but the consequence has been just the opposite. Instead, sellers simply don’t mention the word “CBD” anywhere on the product page, and this provides a smoke-screen to companies hoping to sell the expectation of CBD while actually offering nothing of the sort.
“Hemp” on Amazon is not a description, but a purposefully vague euphemism.
Testing the Hemp Sold on Amazon
CBD Oracle purchased 56 of the most popular hemp products on Amazon and sent them toInfiniteCAL for testing. The main results show the impact of the current policies on the platform.
30% of products contained CBD. Although these products violate Amazon policy, they at least offer customers what the listings imply in a basic sense.
62.5% of products contained no cannabinoids at all. Given that the majority of products explicitly promised some amount of “hemp” in milligrams, these products are misleading at best.
43% of products contained no hemp at all, as verified by gas chromatography-mass spectrometry (GC-MS) testing. Every single product in the study promised “hemp,” but even if they meant hemp seed oil, these 43% are still blatantly deceiving customers.
11% of products tested positive for THC, with three products having huge quantities of delta-8 THC. The maximum dose per gummy was 76 mg THC.
96% of products did not provide an accurate dosage to customers. This means that the measured dosage doesn’t fall within 10% of what they advertised.
The Misleading Marketing of Amazon’s Hemp
The lab results show that the hemp sold on Amazon doesn’t meet the expected standard of CBD and hemp products in the modern day. However, customers on Amazon are less likely to be engaged with the industry and probably have less of an idea of what is expected of any hemp product. Combined with some careful marketing, this makes the average Amazon hemp buyer way more likely to pick up an unreliable product.
CBD Oracle’s analysis of the marketing of Amazon hemp reveals many serious problems with the market and the claims sellers make:
52% of products are sold based on unapproved medical claims, often surrounding pain, stress or anxiety relief.
95% of products do not provide a third-party lab report to consumers anywhere online, and none of them are shown on Amazon.
Customer reviews were unreliable in about half of cases. Mozilla’s FakeSpot rated 48% of products D or lower for overall reliability.
There was no reliable, direct method to communicate with the sellers behind 89% of products. 28 products were identified as breaking theINFORM Consumers Act.
Many products make claims which are literally impossible (e.g. 7.7 pounds of “hemp” in a 0.8 pound package), but are not removed when reported to Amazon.
How Amazon’s Hemp Impacts the Wider Industry
Amazon’s hemp market is not only bad for the customers who choose to make purchases through the retailer; it also threatens the perception of the industry at large.
Andrew Livingston, Director of Economics & Research at Vicente, commented to CBD Oracle that:
“One, these products drive consumer[s] away from the entire hemp supplement category for fear that the entire market cannot be trusted or is not properly regulated. This means legitimate businesses with great products that benefit consumers lose out. Second, problematically labeled and branded hemp products indicate to regulators and public officials that the entire category needs more robust and stringent restrictions.”
In short, even though these products come from unknown companies and aren’t widely regarded in the hemp industry, their careless actions threaten to drag the whole industry through the mud with them.
Conclusion: How Amazon Can Solve the Problem
Amazon’s hemp problem is created by a lack of enforcement and a policy which incentivizes companies that lie about their products. In line with this, there are two avenues for a solution.
Firstly, Amazon could simply devote more resources to enforcing their current policy.
Alternatively, and more realistically, they could acknowledge that CBD is sold on their platform, and instead rectify their policy. By allowing CBD products if they are backed up with a certificate of analysis by an accredited third-party lab, honest manufacturers would be able to compete on a level playing field, and virtually all of the products in this analysis would have to prove their claims or be removed from sale.
One thing is certain: the status quo on Amazon is harmful to both consumers and the industry, and it has to stop.
Lee Johnson is the senior editor at CBD Oracle, and has been covering science, vaping and cannabis for over a decade. He focuses on research-driven deep dives into topics ranging from medical uses for CBD to industry and user statistics, as well as general guides and explainers for consumers.
CBD Oracle is a consumer research company working to improve the safety and transparency of cannabis and hemp products, producing in-depth research pieces on cannabis and cannabinoids, along with analysis of social and legal issues.
Empower Your Voice: Unveiling NCIA’s Updated Congressional Scorecard
In just over 200 days, people across the country will head to the ballot box to make their voices heard. As you take the time to consider the issues that matter the most to you and which candidates best align with those values, NCIA is here to help with our recently updated congressional scorecard.
Our scorecard shows how members of Congress have voted and who has supported various cannabis bills over both the previous (117th) and current (118th) sessions.
With more than 500 members, it can be hard to keep track of votes and congressional support on the issues that matter the most to you and your business. During the 117th congress, the House of Representatives voted on both the Secure and Fair Enforcement (SAFE) Banking Act (H.R. 1996) and the Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act (H.R. 3617). There has not yet been any floor votes on these bills (or other) priority cannabis legislation over the course of the current (118th) congress. That being said, our scorecard does show how members of the Senate Banking Committee voted on the SAFER (Secure and Fair Enforcement Regulation) Banking Act during a September 2023 markup of the bill. The scorecard also shows which members of the Senate have signed on as cosponsors of the SAFER Banking Act (keep in mind there are about a handful of members who signed onto the SAFE Banking Act, but have yet to support this newer iteration).
Though it may seem silly, I’m envious of your ability to look at these voting records. As a resident of Washington, D.C., I (along with hundreds of thousands of my neighbors) am subject to taxation without representation and have no voting member of Congress. D.C. has also been unable to fully implement its voter approved 2014 adult-use initiative due to congressional interference, but that’s a story for another blog!
I hope this scorecard helps you continue to hold your elected officials accountable- both at the ballot box and through civic engagement. I also hope this tool will empower you to get involved with government- at any level- whether that be by setting a meeting with one of your representatives’ district offices, attending a town hall meeting, or volunteering on a campaign. Don’t forget to make sure you’re registered to vote, and if you’re unsure about who your elected officials in Washington are, you can click here. Lastly, one of the best (in my humble opinion) ways to make an impact on elected officials is by attending our annual cannabis industry lobby days. Make sure you mark your calendars for May 14-16 and register today to get the best rate!
Member Blog: How to Hire a Fractional Cannabis CFO
Small businesses — from startup to $20 million — face challenges when it comes to hiring accounting and finance staff.
In addition to the budget-breaking cost of an in-house finance team, it’s not easy to find, train and manage the right people within the day-to-day of a growing business. Not to mention the fact that a full-time team likely wouldn’t have enough work to keep themselves busy with a business of that size. That’s why outsourcing has become popular across industries: small businesses can leverage the expertise of bookkeepers, tax preparers and planners, as well as CPAs and financial advisors, at a fraction of the cost.
The advisory role — often referred to as outsourced or fractional CFO services — fills a particularly essential need, providing business owners with a strategic partner to help make financial decisions about their short-, medium- and long-term future at a lower price-point than a full-time Chief Financial officer (whichaverages $229,000 per year not including vacations, bonuses and other benefits).
That’s why businesses between the $3-$20-million revenue mark consider outsourcing the position. Oftentimes these services include a la carte options such as taxes, accounting, payroll, and coding of transactions (essentially bookkeeping), depending on whether the business already has some of these functions in-house.
Three things to look for when hiring a cannabis CFO
There are a variety of ways to access outsourced or fractional financial services, whether it’s hiring an individual, using a freelance match-making service or working with a dedicated team.
Do they provide forward-looking advice?Cannabis companies face unique challenges. Every business could benefit from cash flow forecasting, but in cannabis, where profits are extra tight, a CFO needs to be able to help strategic planning: weighing the cost-benefit of investments, strategizing tomanage overhead and boost sales, and ensure the business stays disciplined as it grows.
Are they involved in the industry?In an industry like cannabis, where regulatory shifts are always on the horizon, you want a CFO is staying on top of policy — bothfederal and local. That means they’ll have the necessary insight to help you plan with those changes in mind, as well as to think about what could happen as a result of all these shifts within your business.Beyond policy, a CFO should be able to help businesses with other industry-specific challenges, like securing merchant services for dispensaries and establishing banking relationships, which is significantly tougher for cannabis businesses to do, in light of current federal policy.
Do they ask strategic questions?A good CFO never tells you what to do. They get to know your business through in-depth questions, identify the non-financial drivers to monitor and improve, and then help you navigate the best path with the information that you have.
When is it time to hire a fractional cannabis CFO?
If you find your business is getting to a point where you’re making decisions but don’t understand the financial impact or don’t know what risks may be out there — especially if you’re in a growth phase — hiring a fractional CFO will help guide you on the financial side and still fit within your budget.
The cannabis industry is at an inflection point. There are so many areas where strategic planning isn’t a nice-to-have, it’s a must-have. As regulations shift, it will be essential to have a financial partner who can help businesses pivot quickly and adopt new technologies that become available to the industry as we move forward with policy progress at the federal level.
Member Blog: Cultivating Safety – Advanced Workers’ Compensation Solutions for Cannabis Businesses
The cannabis industry is experiencing rapid growth, bringing with it unique risks and regulatory challenges, especially in protecting employees. Recognizing the complexities of this industry is crucial for developing comprehensive insurance solutions, particularly in workers’ compensation. This blog explores strategies and insights tailored to navigate the intricacies of cannabis-related businesses.
The Unique Occupational Risks in Cannabis
Occupational hazards in the cannabis industry vary significantly across its different verticals—from cultivation and harvesting to manufacturing, distribution, and retail. Each step of the way introduces specific risks:
Cultivation: Employees may face exposure to pesticides, ergonomic challenges, and the potential for injuries related to manual labor or the operation of agricultural machinery and electrical exposures
Manufacturing: The extraction process involves handling volatile substances, which can pose chemical exposure risks, while the use of heavy machinery introduces the potential for industrial accidents.
Retail and Distribution: Employees in these sectors might encounter security concerns, the risk of theft, and repetitive motion injuries, alongside the unique challenges of delivering products safely.
Recognizing and addressing these varied risks is the cornerstone of an effective workers’ compensation strategy, ensuring that businesses are prepared to support their employees in the event of an occupational injury or illness.
Why Workers’ Compensation Is Essential
Workers’ compensation is not just a legal formality; it’s a cornerstone of your business’s resilience. A well-conceived policy ensures that employees are protected in the event of workplace injuries, which in turn safeguards your business from potentially crippling financial liabilities.
Generic workers’ compensation policies often fall short of meeting the specific needs of the cannabis industry. A focused approach on the unique challenges of cannabis operations, is not only beneficial, but necessary for comprehensive protection. This strategy involves:
Risk Identification and Analysis: Understanding the specific hazards associated with different cannabis industry roles is the first step in crafting effective workers’ compensation policies.
Rapid Claim Resolution: Efficient processing and resolution of claims are vital in controlling costs and supporting injured employees’ return to work. Speedy claim closure not only benefits the employee, but also helps manage the financial impact on the business.
Mitigation and Cost Control: A Proactive Approach
Effective claim resolution and risk mitigation are key for cannabis businesses to control workers’ compensation costs effectively. Leveraging advanced data analytics helps identify claim sources and implement prevention measures, closing claims swiftly and reducing overall insurance costs.
Implementing Robust Risk Management Practices
Significant impacts on the frequency and severity of claims can be achieved with:
Safety Training and Education: Regular programs can help employees avoid injuries and safely navigate potential hazards.
Ergonomic Assessments: Identifying modifications in roles involving manual labor or repetitive tasks can reduce strain and prevent injuries.
Security Measures: Enhancing security can mitigate risks associated with theft, especially important in retail and distribution.
A Case in Point: Swift Resolution for a Cannabis Delivery Company
Consider the case of a cannabis delivery company that faced a workers’ compensation claim when a delivery driver sustained an injury on the job. By employing a focused approach to claim management, including prompt medical evaluation and clear communication channels, Liberty’s intervention led to the claim being settled and closed in under four weeks—a testament to our commitment to fast and effective resolution. This not only minimized the cost to the company, but also allowed the employee to return to work sooner, maintaining productivity and morale.
Beyond Claims: Comprehensive Risk Management
A holistic risk management approach covers all potential risks, from delivery driver incidents to cultivation and retail hazards, ensuring comprehensive coverage.
Choosing a Strategic Partner
Partnering with an insurance provider that understands the cannabis industry’s complexities is critical. Customized strategies in insurance and workers’ compensation can offer unparalleled protection and peace of mind, supporting your business’s growth and resilience.
The Path Forward for Cannabis Businesses
As the cannabis industry evolves, strategic foresight in managing workers’ compensation is essential. Focusing on specific sector needs and prioritizing efficient solutions can create a safer work environment and a more resilient future. With the right strategies and a commitment to safety and efficiency, businesses can navigate these challenges successfully, ensuring protection for employers and their valued employees.
For more information, please reach out toValerie Taylor, Vice President (National Cannabis Practice Leader), Liberty Company Insurance Brokers and Kirk Aguilera, Managing Partner (National Workers’ Compensation Practice Leader).
Member Blog: Wellness at Work – Preventative Healthcare for Cannabis Business Owners
Navigating Challenges in the Cannabis Industry
The cannabis industry finds itself constantly grappling with challenges imposed by federal regulations and government scrutiny. Despite these obstacles, there are numerous strategies available to businesses within this sector that can mitigate fixed costs, save money, and preserve valuable staff positions.
Delivering Tangible Value
Our seasoned team, boasting a track record of saving well over $2 billion for our clients, specializes in pioneering solutions that deliver tangible value. We recognize the unique demands faced by cannabis business owners and have tailored our approach to offer seamless evaluation and implementation of our tools, ensuring minimal disruption and maximum efficiency. This commitment to excellence has earned us the trust and loyalty of nearly half of our clients, who consistently refer us to their peers and associates.
Game-Changing Healthcare Solution
For cannabis operations employing W2 staff, we offer a game-changing solution: a preventative healthcare plan meticulously designed to address the specific needs of the cannabis industry.
Zero-Cost Structure with Significant Savings
What sets our plan apart is its zero-cost structure for employers, coupled with its ability to instantly lower payroll taxes without necessitating any modifications to existing benefits packages. This makes it an ideal solution for businesses looking to enhance employee retention while simultaneously bolstering their bottom line.
Comprehensive Benefits for Employee Well-Being
The benefits offered through our plan are not only financially advantageous but also genuinely impactful. From round-the-clock telemedicine visits to access to hundreds of free generic drugs and preventative screenings, employees gain access to a comprehensive suite of resources aimed at promoting their health and well-being. This not only enhances job satisfaction but also contributes to a healthier, more productive workforce.
Efficient Implementation and Support
Implementing our program is straightforward and efficient, with many businesses up and running in just a matter of minutes. Whether you’re a small-scale operation or a large enterprise, our team is dedicated to providing the support and guidance you need to maximize the benefits of our innovative healthcare solution.
Empower Your Business Today
Take the first step toward transforming your business and empowering your employees by scheduling a brief call with us to learn more. Together, we can pave the way to a brighter, more prosperous future for your cannabis business.
Empower Your Cannabis Business: Join Our Service Solutions Webinar!
Don’t miss out on the opportunity to learn more about how to optimize your cannabis business with our innovative healthcare solution and other service solutions. Join us for our upcoming Service Solutions webinar being broadcast LIVE on Tuesday, May 28th at 3:00PM ET / 12:00PM PT featuring the LG Resources team as they unveil their latest offerings in Preventative Health Care and AI Tax Planning.
Register now to secure your spot and gain exclusive insights from industry leaders. Click here to register for this essential webinar.
Take the next step in elevating your cannabis business to new heights. We look forward to seeing you there!
Member Blog: Unlocking Financial Potential – AI Tax Strategies for Cannabis Business Owners
The cannabis industry finds itself constantly grappling with challenges imposed by federal regulations and government scrutiny. Despite these obstacles, there are numerous strategies available to businesses within this sector that can mitigate fixed costs, save money, and preserve valuable staff positions.
In today’s rapidly evolving landscape, the integration of AI has ushered in a new era of efficiency and optimization across various domains, including finance and taxation. At LG Resources, we’ve embraced this technological advancement to revolutionize tax planning, transforming what was once considered a daunting task into a streamlined and rewarding opportunity for our clients.
Unparalleled Precision: Our AI-Powered Program
Our commitment to excellence is exemplified by our proprietary AI-powered tax planning program, which stands at the forefront of innovation in the industry. This sophisticated software boasts the capability to analyze over 1,500 Federal, state, and local tax programs with unparalleled precision. By leveraging machine learning algorithms, it identifies bespoke strategies tailored to each client’s unique financial profile, thereby unlocking substantial opportunities for tax savings.
Seamless Integration: Merging AI with Expertise
The cornerstone of our approach lies in the seamless integration of AI technology with over a decade of private wealth management expertise. This synergistic combination allows us to offer clients a comprehensive suite of services that not only optimize tax outcomes but also align with their broader financial goals and aspirations. Whether navigating complex tax regulations or maximizing wealth accumulation, our seasoned team of professionals is dedicated to delivering results that exceed expectations.
Adaptive Strategies: Staying Ahead of the Curve
One of the key advantages of our AI-powered tax planning program is its ability to adapt and evolve in response to changing tax laws and economic conditions. Through continuous monitoring and analysis, we ensure that our clients remain ahead of the curve, capitalizing on new opportunities for tax optimization as they arise. This proactive approach not only minimizes tax liabilities but also positions our clients for long-term financial success and security.
Personalized Service: Tailored Strategies for Every Client
Central to our philosophy is the principle of personalized service. We recognize that every client is unique, with their own set of financial circumstances and objectives. As such, we take a tailored approach to tax planning, crafting customized strategies specifically designed to meet the needs and objectives of each individual client. Whether you’re a high-net-worth individual, a small business owner, or a corporate executive, our team is committed to developing a tax plan that works for you.
Proven Results: Empowering Financial Well-being
Our AI-powered analysis has yielded impressive results for our clients, consistently delivering substantial tax savings across a wide range of scenarios. From helping clients save millions of dollars in taxes to securing substantial refunds and credits, we’ve consistently demonstrated our ability to deliver results that make a difference.
Join Our Service Solutions Webinar: Empower Your Business
Don’t miss out on the opportunity to delve deeper into these cutting-edge services! Join us for our upcoming Service Solutions webinar on Tuesday, May 28th featuring the LG Resources team as they unveil their latest offerings in Preventative Health Care and AI Tax Planning.
Discover how these innovative solutions can transform your business operations and financial outcomes.
Register now to secure your spot and gain exclusive insights from industry leaders. Empower your business with the tools you need to thrive in the cannabis industry. We look forward to seeing you there!
Member Blog: The Entrepreneurial Operating System – Industry Agnostic
The EOS model was developed by Gino Wickman, an entrepreneur and author, based on his experiences working with small to medium-sized businesses. The system was introduced in the book “Traction: Get a Grip on Your Business”, written by Gino Wickman and published in 2007.
Today, EOS is utilized by a wide range of businesses across different industries, helping them establish a strong foundation for growth, enhance leadership effectiveness, and achieve greater overall success. The EOS framework’s practical approach and focus on accountability have contributed to its widespread adoption in the business world.
Diving into the six key components of the EOS (Entrepreneurial Operating System) model – Vision, People, Data, Issues, Process, and Traction – and discuss how strengthening the 6 components can increase team health, profitability as well as scalability in a business.
1. Vision:
Define a Clear Vision: Articulate a compelling and clear vision for the organization, involves identifying the core values, purpose, and long-term goals. Assisting in communicating this vision effectively to align everyone in the organization.
2. People:
Right People in the Right Seats: Assess whether the right individuals are in the right roles. Identify strengths and weaknesses, ensuring that each team member is aligned with their unique abilities.
Cultivate a Healthy Culture: This guide helps creating a positive and constructive workplace culture. This involves fostering open communication, trust, and accountability among team members.
3. Data:
Identify Key Metrics: Determine the critical metrics and data points that impact a business. Examples are financial indicators, customer satisfaction scores, or operational efficiency metrics.
Implement Data-Driven Decision-Making: Establishing a system for collecting and analyzing data regularly. Data-driven decision-making helps to enhance overall performance and adaptability.
4. Issues:
Create an Open Issues List: Develop a transparent issues list. This involves identifying and addressing challenges openly, ensuring that no critical issues are overlooked or ignored. Solving issues is an efficient way of bringing issues down to the ground and solving them forever.
Implement Structured Problem Solving: This is designed to be a guide to effective problem solving at the leadership level.
5. Process:
Document Core Processes: Documenting a handful of core processes ensures that everyone understands their roles and
responsibilities, fostering efficiency and reducing confusion.
Continuous Improvement: Encourage a mindset of continuous improvement.
6. Traction:
Set and Monitor Goals: Setting SMART goals (Specific, Measurable, Achievable, Relevant, Time-bound). Establishes a system for monitoring progress.
Implement Regular Accountability Meetings: Conducting regular accountability meetings to track progress, discuss
challenges, and ensure alignment with company objectives.
These tools are part of the EOS framework, which aims to help businesses, in any industry including the Cannabis Industry, become more organized, focused, and efficient in achieving their goals. Each tool serves a specific purpose within each of the 6 key components, contributing to the overall success of the organization.
Member Blog: What I Learned from Serving as an NCIA Committee Officer
The National Cannabis Industry Association (NCIA) is a business-member organization of professionals from every sector of the legal cannabis industry, from seed to sale. I finished my tenure as Chair of the NCIA Education Committee (EC) in December 2023. I joined the EC in October of 2019 as a committee member and sequentially served as committee Organizer, Vice Chair, and Chair. I now have colleagues and friends in the cannabis industry due to networking through the EC, NCIA’s other 13 committees, and my participation in NCIA conferences, regional events, and Lobby Days.
People in the cannabis industry have a passion for their work that is unlike any other I have seen. NCIA members are professionals in their field, working as medical doctors, Ph.D.s, accountants, lawyers, insurance agents, and marketing gurus, among others. Among these professionals, I felt seen and supported.
As a committee, the members were encouraged by the NCIA staff to pursue our interests and direction for the committee. There was no NCIA agenda for our work. As NCIA members, we were free to choose our path for committee projects.
As an officer, I had access to the other NCIA committee officers in our monthly all-committee call. Each committee reported their work-in-progress and announced finished projects in the form of webinars, blog posts, or white papers. The content of the website is driven by the members, and much of the content is publicly available. It takes an army to deliver cannabis products to consumers, and that army forms at NCIA.
I have listened in awe to NCIA members articulate their knowledge, and others have written beautifully. NCIA has a strong voice in Washington for the mission of federal legalization of cannabis. NCIA members write talking points on their areas of expertise and freely share cannabis knowledge for the betterment of the industry. Members have an opportunity to shape policy at the state, federal, and international levels.
Before NCIA, I was not aware of the reality of the steps for passing legislation in Washington. I have learned about the long process and have been encouraged to use my own voice, from contacting my state and federal legislators to participating in lobbying organized by NCIA at their annual Lobby Days in Washington. I walked from congressional to senate office to office with a team to talk with staffers. I found the staffers open to the conversation about legalizing cannabis, and I learned from a few of them. Approaching a lawmaker as a member of NCIA carries more weight than being a lone concerned citizen.
The cannabis industry has businesses struggling to remain afloat, and membership revenue has declined. If your company is not an NCIA member, ask yourself if you are willing to lose your opportunity to shape the future of the cannabis industry. Then, sign up for membership and make a difference.
California Cannabis Regulations: From Policy to Practice | Policy Matters | 02.08.24
Illuminating California’s Cannabis Regulations: Insights from Industry Leaders
Welcome to the fourth edition of our esteemed Policy Matters series, where we embark on a journey through the intricate landscape of California cannabis regulations. This series, made possible by the collaborative efforts of the National Cannabis Industry Association (NCIA) and its dedicated Policy Co-Chairs, Khurshid Khoja of Greenbridge Corporate Counsel and Michael Cooper of MadisonJay Solutions, serves as a beacon of insight and discourse in the ever-evolving landscape of cannabis regulation.
Building upon the foundational discussions initiated by our previous editions, this installment shines a spotlight on California’s pioneering strides in cannabis policy. In this blog post, we’ll delve deep into the dialogues and revelations shared during the recent webinar broadcast hosted by the NCIA, exploring the multifaceted dynamics of policy-making and enforcement in one of the nation’s most influential cannabis markets with Nicole Elliott, Director of the California Department of Cannabis Control.
Brian Gilbert, Deputy Director of Events and Education at NCIA, set the stage for the discussion, emphasizing the importance of dialogue and collaboration in navigating the complexities of California cannabis regulations. With California serving as a focal point, the webinar delved into the multifaceted aspects of cannabis policy and enforcement.
Understanding Cannabis Policy in California & Journey to the Role
Kicking off the conversation by recognizing the pivotal role of Nicole as one of the longest serving and most experienced cannabis regulators in the country, Khurshid & Michael expressed gratitude for her contributions to the industry. Nicole then shared her journey from local government to cannabis regulation, highlighting her commitment to social justice and equity. Her firsthand experiences with the criminal justice system underscored the importance of inclusive policies and community engagement in shaping regulatory frameworks.
An emphasis was placed on the significance of California’s regulatory evolution from a pioneering medical marketplace and its impact on industry inclusivity and diversity. From supporting legacy operators to promoting market stability, California’s regulatory efforts have paved the way for innovative initiatives like the Appalachians of Origin program, reflecting a commitment to equitable industry growth.
Enforcement Strategies and Real California Cannabis Campaign
Throughout the conversation, Nicole emphasized the importance of aggressive enforcement strategies to combat the illicit market effectively. California’s Unified Cannabis Enforcement Task Force spearheads enforcement efforts, targeting illegal activities such as labor trafficking and environmental contamination. The introduction of the Real California Cannabis campaign aims to shift consumer purchases to legal markets, fostering accountability and consumer safety.
Commitment to Social Equity and Compliance
At a pivotal moment, Nicole Elliott acknowledged historical inequities in the cannabis industry, advocating for initiatives beyond licensing solutions. Fee waivers and promising practices are key components of California’s social equity programs, promoting inclusivity and supporting operators from marginalized communities.
With consumer safety at the forefront, the Department of Cannabis Control prioritizes compliance and transparency in enforcement actions. Operators must adhere to regulations to ensure product safety, with penalties imposed for non-compliance. Transparent enforcement actions empower operators to uphold regulatory standards and foster consumer trust.
Challenges and Opportunities, Partnerships and Collaboration
The influx of hemp-derived cannabinoid products presents regulatory challenges at the federal and state levels. Collaborative efforts between regulators and industry stakeholders are essential to address public health concerns and ensure regulatory compliance. Federal rescheduling efforts and cultivator regulations further underscore the need for adaptive regulatory frameworks that prioritize consumer safety and industry viability.
The webinar highlighted the importance of partnerships and collaboration in addressing regulatory challenges and fostering a safe and thriving cannabis market. Organizations like the Cannabis Regulators Association (CANNRA) play a pivotal role in facilitating dialogue and sharing best practices among regulators and industry stakeholders.
Curtains Drawn: Reflecting on Insights, Looking Forward to Action
As we draw the curtains on yet another insightful edition of our Policy Matters series, we extend our heartfelt gratitude to our readers, esteemed speakers, and the unwavering guidance of NCIA’s Policy Co-Chairs, Khurshid Khoja and Michael Cooper. Their steadfast commitment to fostering dialogue and collaboration has been instrumental in shaping the discourse surrounding cannabis regulation and policy.
To delve deeper into these discussions and gain comprehensive insights on California cannabis regulations, we encourage you to view the complete recording of the webinar on our YouTube channel. There, you’ll find a wealth of information and perspectives from our esteemed speakers, shedding light on the complexities and opportunities within the California cannabis regulatory landscape.
From the corridors of Maryland to the rugged landscapes of Maine, and the vibrant markets of Michigan and California, each edition has illuminated the diverse spectrum of regulatory frameworks and industry dynamics shaping the cannabis landscape. As we eagerly anticipate future editions, let us continue our pursuit of knowledge, empathy, and innovation, forging a path towards a more equitable and prosperous cannabis industry for all stakeholders involved.
California Stakeholder Summit: Bridging Policy and Practice
We hope you’ve made plans to join us for our California Stakeholder Summit, taking place later this month on Thursday, February 22nd in Sacramento, CA. This event promises to be a pivotal moment for stakeholders across the California cannabis industry as we convene to explore topics including proposed state legislation affecting hemp-derived cannabinoid products and the impact of federal rescheduling on state-legal markets.
Nicole Elliott will be speaking on a panel alongside Congresswoman Barbara Lee (D-Oakland) and moderated by NCIA Director of Government Relations Michelle Rutter Friberg. Together, they will delve into the complexities of federal rescheduling and its implications for California’s cannabis regulations and dynamic marketplace.
Join us as we bridge the gap between policy and practice, forging meaningful connections and driving forward progress in one of the nation’s most influential cannabis markets. Don’t miss this opportunity to be part of the conversation shaping the future of cannabis regulation in California and beyond. Register now to secure your place at the California Stakeholder Summit 2024.
Navigating the Cannabis Landscape: Federal Cannabis Reform Outlook for 2024
A month into 2024, Congress is (still) grappling with a number of urgent, must-pass bills related to issues like border security, aid for Ukraine and Israel, and the federal budget. At a time when the government seems more dysfunctional than ever, it’s important to remember that this chaos results in cannabis issues (and unfortunately, many others) having difficulty in gaining traction in Congress. As a result, cannabis legislation and priorities have been slow moving so far this year- but I feel confident that there’s light at the end of the tunnel!
SAFE Banking
To recap: the ever-elusive SAFE Banking Act was reintroduced in 2023 by Senators Jeff Merkley (D-OR) and Steve Daines (R-MT) alongside Representatives Earl Blumenauer (D-OR) and Dave Joyce (R-OH). Soon after, the Senate Committee on Banking, Housing, and Urban Affairs held a hearing titled “Examining Cannabis Banking Challenges of Small Businesses and Workers” discussing both the bill and the topic of cannabis banking broadly.
As the momentum for SAFE Banking increased, so did some Senators’ concerns– primarily surrounding a provision that would bar federal banking regulators from taking discriminatory enforcement action against any industry.
As a result, an updated version of the bill called the SAFER (Secure and Fair Enforcement Regulation) Banking Act was introduced, marked up by the Committee, and passed out of Committee by a vote of 16-14 in late September 2023.
That brings us to 2024. Although SAFER has not been scheduled for a floor vote yet, NCIA is cautiously optimistic on its chances this year — whether that be as a standalone bill or attached to another larger financial services related package. That being said, the bill will undoubtedly face an uphill battle no matter how it arrives at the GOP-controlled House of Representatives.
Other Congressional News
Outside of SAFE(R) Banking, there has been some additional congressional cannabis news in 2024 including a Senate letter urging descheduling, a bicameral letter regarding Chinese-related illicit grow operations, and a new Congressional Research Service (CRS) report on the impact of moving cannabis from Schedule I to III in the federal Controlled Substances Act.
In late January, Senators Elizabeth Warren (D-MA) and John Fetterman (D-PA), led nine of their Democratic colleagues (including Senate Majority Leader Chuck Schumer [D-NY]), in sending a letter to Attorney General Merrick Garland and Drug Enforcement (DEA) Administrator Anne Milgram. The letter urged Milgram and Garland to remove marijuana from Schedule I of the Controlled Substances Act entirely, commonly known as descheduling.
Then, just days ago, Senators Joni Ernst (R-IA) and Angus King (I-ME) alongside Congressmen Pete Sessions (R-TX), Jared Golden (D-ME), and David Valadao (R-CA) led 48 of their colleagues in calling on Attorney General Merrick Garland to prevent any national security risk and end any illicit human trafficking connected to Chinese-linked marijuana farms in the United States.
In the bipartisan, bicameral letter, the lawmakers pointed out that Chinese nationals (some with potential ties to the Chinese Communist Party), are operating marijuana farms across the country and even potentially engaging in human and drug trafficking in conjunction with these operations. The lawmakers asked the Department of Justice for a briefing on the topic by the end of the month and posed several specific questions for the agency.
In mid-January, the Congressional Research Service (CRS) released a new report titled “Legal Consequences of Rescheduling Marijuana” that primarily focused on “Legal Consequences If Marijuana Moved to Schedule III” and considerations for Congress. CRS works for members of Congress and their committees and staff on a confidential, nonpartisan basis and is highly regarded here in Washington, D.C.
Biden Administration
In 2022, the Biden Administration announced that it would ask the Secretary of Health and Human Services (HHS) and the Attorney General to initiate the administrative process to review how marijuana is scheduled under federal law.
As a result, in August 2023, news broke that the Department of Health and Human Services (HHS) recommended to the Drug Enforcement Administration (DEA) that cannabis be rescheduled and placed in Schedule III, meaning that it has moderate to low abuse potential, a currently accepted medical use, and a low potential for psychological dependence. Since then, the DEA has been conducting their review of where marijuana should be placed in the Controlled Substances Act, which will then be followed by a public comment period.
To be clear, NCIA supports ending the criminalization of our industry by removing cannabis (including THC) from the federal Controlled Substances Act altogether so that our businesses are treated like all other lawful American businesses. That being said, it’s likely that the DEA will follow the HHS recommendations and choose to place marijuana in Schedule III.
While NCIA continues to draft our response to the inevitable announcement — whatever it may be — we also want to hear from our members about their views on this critical issue. If you are a member of NCIA, check your inbox for a link to our online survey in order to make your voice heard. If your business isn’t yet a member but you want to get off the sidelines of the cannabis reform movement, join today! NCIA is proudly the only organization focused on representing independent businesses in our nation’s capital and the work we do moving policy reforms forward is only possible because of the hundreds of businesses that make up our membership.
It goes without saying that 2024 is shaping up to be a big one for federal cannabis policy reform. Stay connected and engaged by attending one of our upcoming Stakeholder Summits where you can engage and learn from state officials, federal policymakers, and even me!
If you really want to play a bigger role in advancing cannabis policy reform, we hope you’ll also join us in Washington, D.C. for our 12th Annual Cannabis Industry Lobby Days this May. See you there!
Member Blog: Cannabis Convenience – Exploring the Rise of Delivery Services in Local Markets
Remember the long lines and awkward whispers at the dispensary? Those days are fading faster than you can say “indica.” Cannabis delivery services are popping up around the corner, delivering your favorite flower, edibles, and more right to your door. This boom isn’t just about convenience, though. It’s about changing laws, new technology, and a growing desire for discreet, easy access to cannabis.
What’s particularly intriguing is the role of legislation in shaping this landscape. For instance, California voters approved Prop 64 or the Adult Use of Marijuana Act, allowing adults 21 yrs or more to legally grow, possess, and use cannabis for non-medical purposes. This state act not only welcomed statewide legalization but also allowed its 58 counties, including the city of Sacramento, the autonomy to develop their policies and regulations around cannabis retail, manufacturing, and cultivation. This decentralized approach has been instrumental in fostering the growth and diversity of California’s cannabis market, setting the stage for the rise of innovative delivery services.
So, what’s driving this surge in cannabis delivery service? In this article, we’ll dive into this question and discover how delivery services are not just changing the face of cannabis retail but also influencing consumer behavior and nurturing a sense of community among cannabis enthusiasts.
What is Cannabis E-commerce?
Cannabis e-commerce refers to the online retailing of cannabis products. This type of e-commerce operates within the legal frameworks of regions where cannabis is legally permitted for medicinal or recreational use. It involves various products derived from the cannabis plant, such as dried flowers, oils, edibles, and other related merchandise.
In cannabis e-commerce, consumers typically browse an online platform or website that lists available cannabis products. These platforms provide product descriptions, potency levels, usage instructions, and pricing information. Consumers can select products, add them to a virtual cart, and purchase online. The purchased items are then delivered to the consumer’s location, subject to legal regulations regarding delivery and distribution.
But if you are not sure which cannabis seller to trust, look for a seller who prioritizes safe, reliable, and convenient access to a diverse selection of cannabis products. For instance, Nexus Delivers in Sacramento is a notable choice to explore. Their dedication to quality, safety, and variety sets them apart as a trusted option in cannabis e-commerce.
Driving Forces Behind the Rise of Cannabis Delivery
1. Convenience and Discretion
Cannabis delivery brings your order discreetly to your door, on your schedule. Perfect for busy bees or privacy seekers, it’s the hassle-free high you crave. No crowds, no awkward stares, just pure convenience and the freedom to enjoy at your own pace.
Plus, discreet packaging and secure payment methods are essential components of this aspect. It involves ensuring that all transactions and deliveries are conducted with the utmost confidentiality, protecting consumers’ privacy.
2. Enhanced Product Selection and Information
Online platforms boast wider product selections compared to local dispensaries, often presenting detailed descriptions, reviews, and educational resources. This empowers consumers to make informed choices, discover new strains and products, and compare prices with transparency.
So, blast off from the dispensary doldrums and dive into the boundless knowledge and options offered by delivery – your perfect bud awaits.
3. Accessibility and Inclusivity
Accessibility means that consumers, regardless of their location, can easily browse and purchase cannabis products online. It breaks down geographical barriers, enabling those in remote areas or with limited mobility to access the benefits of cannabis.
Inclusivity goes beyond geographical access and emphasizes catering to a diverse clientele. It involves offering a range of products to suit various preferences and needs, including those seeking medicinal benefits. This means sellers can reach a broader audience and sell more.
4. Competition and Market Expansion
Delivery services play a pivotal role in fostering competition and driving market expansion in the cannabis industry. They act as catalysts, sparking a cycle of benefits for both businesses and consumers. By offering convenient and efficient delivery options, dispensaries are compelled to compete vigorously.
This competition has a twofold effect. Firstly, it exerts pressure on prices, forcing dispensaries to lower their rates to remain competitive. Secondly, it incentivizes dispensaries to enhance the quality of their cannabis products and elevate their customer service standards. As a result, consumers enjoy more affordable options, a wider array of top-notch products, and superior service.
Data and Marketing Opportunities
Delivery platforms gather valuable data on user preferences and consumption patterns, enabling targeted marketing and product development. This information forms the foundation for targeted marketing strategies. Dispensaries can personalize customer experiences, offering tailored product recommendations that align with individual tastes and needs.
Additionally, businesses can identify specific demographics and market segments, allowing them to effectively develop and fine-tune their product offerings to cater to these diverse groups.
Evolving Regulatory Landscape
Legitimate and licensed delivery services are emerging, and this transformation is creating a safer and more accountable cannabis industry.
These licensed delivery services play a crucial role in addressing various concerns. They prioritize safety by implementing robust age verification procedures, ensuring that only adults have access to cannabis products. Additionally, these services are actively involved in educational initiatives, promoting responsible consumption.
Conclusion
Remember, it’s not just about avoiding awkward stares at the dispensary; it’s about unlocking a universe of options from your couch. As this market blossoms, let’s keep it chill, responsible, and full of delicious possibilities. After all, who wouldn’t want a world where bud travels to you?
We appreciate your interest and hope you found this article valuable.
The Cannabis Risk Management Series: Cannabis Risk in Retail – The Thorny Issue of Theft Claims
Welcome back to the second chapter of our insightful Cannabis Risk Management series from Valerie Taylor with NCIA Blooming Member The Liberty Company Insurance Brokers. In our inaugural blog, we meticulously examined the art and science of cannabis cultivation, dissecting the unique risks and unveiling strategies to safeguard your valuable assets. Now, our expedition leads us to the dynamic retail sector, where the shadows of theft claims cast a challenging hue on the landscape.
The Nuances of Cannabis Retail Risk
Cannabis retail, often hailed as the face of the cannabis industry, pulsates with its own set of challenges, and at the forefront is the persistent threat of theft claims. In this segment, we delve deep into the intricate risks associated with cannabis retail, emphasizing the need for a robust risk management strategy.
While the theft of cash and actual cannabis products remains a primary concern, the spotlight extends to the vulnerability of operational assets. Tangible tenant improvements (displays, lighting, vault, and security systems), and other essential equipment, constitute not just commodities, but the operational pulse of a cannabis retail space. The financial ramifications of losing such assets extend beyond the immediate value of the stolen item, potentially disrupting the entire business operation.
Protecting against theft demands a proactive stance that transcends traditional security measures. To fortify your retail space, embracing cutting-edge technologies becomes imperative. Smart safes, equipped with biometric access and RFID tagging for inventory offer significant theft deterrence of cash. In general, they can contribute to a seamless inventory management system, minimizing the impact of potential theft incidents.
3. Advanced Surveillance Systems: The Eyes and Ears of Security
Enhancing security measures involves a comprehensive approach, and advanced surveillance systems play a pivotal role. Beyond conventional CCTV, modern systems with facial recognition, real-time monitoring, and integrated analytics provide a more sophisticated layer of defense. These technologies not only deter theft but also offer valuable insights for ongoing risk management.
Mitigating Theft Risks in Cannabis Retail
1. Community Engagement and Public Awareness: Forging Collective Vigilance
Effective theft prevention extends beyond the physical boundaries of the store; it involves creating a community-driven shield against potential threats. Establishing strong bonds with the local community can serve as a natural deterrent. Positive relationships and community engagement foster a sense of shared responsibility for the safety of the retail space, creating a formidable barrier against potential thieves.
2. Employee Training and Incentives: Fortifying the Front Lines
Empowering your staff with the skills and knowledge to identify and prevent theft is a cornerstone in fortifying your retail space. Implementing comprehensive training programs that educate employees on recognizing suspicious behavior, coupled with incentives for maintaining a secure environment, forms a powerful defense strategy against theft.
3. Insurance Tailored to Retail Risks: Beyond Standard Coverage
While standard insurance policies offer a foundational level of coverage, the dynamic nature of cannabis retail necessitates a bespoke approach. Collaborating with a seasoned insurance advisor specializing in cannabis is not just advisable, but paramount. A tailored insurance policy for retail should go beyond protecting the products; it should encompass the essential equipment components for daily operations, ensuring a comprehensive shield against potential financial losses.
4. Data-Driven Risk Analysis: Navigating the Digital Landscape
Harnessing the power of data is a crucial aspect of modern risk management. Utilizing data analytics and monitoring tools allows retailers to identify patterns, potential vulnerabilities, and areas of improvement in their security infrastructure. This data-driven approach not only aids in theft prevention but also enhances overall operational efficiency.
As we prepare for our next exploration into the distribution sector, where we’ll unravel the complexities of risks involving theft, auto incidents, and more, I encourage you to delve deep into the intricacies of cannabis risk in retail. Stay tuned for a wealth of insights and strategies to navigate the multifaceted challenges at every stage of your cannabis business journey.
For more information, please reach out toValerie Taylor, Vice President (National Cannabis Practice Leader), Liberty Company Insurance Brokers.
Committee Blog: Navigating Cybersecurity Risks in the Cannabis Industry
Cannabis Industry Cybersecurity threats are on the rise, and organizations that don’t take a proactive approach to information security may see themselves increasingly targeted. In this blog, members of National Cannabis Industry Association’s Risk Management & Insurance (RMIC) details key considerations to help cannabis organizations enhance their network security. Throughout the blog there are hyperlinks for further information on certain topics, and for those organizations just getting started on their cannabis industry cybersecurity journey, two free resources to consider investigating are the Small Business Administration’s (SBA) Cybersecurity Guide and the Cybersecurity & Infrastructure Security Agency’s (CISA)Cyber Essentials Starter Kit.
A Business Case for Cybersecurity Investment.
Like with any business investment, increasing cyber defense resources must provide a sufficient ROI for the business. When considering cybersecurity, it may be best to define that as Regret Of Inaction. Consider that according to IBM’s2023 Cost of a Data Breach Report the average cost of a breach has reached an all-time high of $4.45M. The old adage, “an ounce of prevention is worth a pound of cure” is certainly applicable to security measures.
Cybersecurity risks are not just applicable to large enterprises,Accenture’s Cybercrime study reveals that nearly 43% of cyber-attacks are targeted at small and medium-sized businesses (SMBs), and 60% of small businesses close within6 months of being hacked.
Cannabis Industry Cybersecurity Starts with People
Any cultural shift at an organization needs to start from the top, and that includes security. Security culture needs to be driven from the top. Adopting proper policies and procedures to properly safeguard organization networks and personnel is key. This includes regular employee training. As many as95% of attacks are caused by human error.
Being a Victim Stinks- Elevate Your Basic Cyber Hygiene
The National Cybersecurity Alliance just completedCybersecurity Awareness Month, where they stressed four of the key principles which can help better secure organizations. We’ll touch on each below, and for additional best practices check out the Cannabis Information Sharing & Analysis Organization’s (Cannabis ISAO)blog from 420 where they asked 4 cybersecurity experts to compile 20 tips for the cannabis industry.
Recognize and Report Phishing. A best practice is to set up a channel in your organization’s chat platform where employees can share screenshots of phishing attempts to raise awareness.
Update software. Don’t forget to include all of the connected Internet of Things (IoT) devices throughout the organization
Navigating Cyber Insurance
The world of business insurance, especially in the cannabis sector, can be quite complex. However, with the insights provided here, you can navigate your policy purchasing process with confidence and ensure your business is fortified against potential risks. By understanding policy forms, adhering to safeguards, and adapting to local regulations, you can lay a resilient foundation for your business’s growth and success.
“In Cannabis, we don’t get many options when it comes to cyber insurance providers, so it’s important we put our best foot forward when seeking or renewing cyber insurance policies. Work with your broker early to understand any changes upcoming to policies and the expectations being set by your insurers. When you can, hire a dedicated team that is focused on securing your digital estate, and leverage well known guidance frameworks such as NIST CSF, CIS Top 20, and HIPAA, and work with an independent party to verify your progress, which help keep your premium costs down long-term and reduce the risk of you having an incident that requires you to file a claim in the first place.”- Chris Clai, Director of Information Security, Green Thumb Industries
Stay up to date on Cannabis Industry Cybersecurity threats and trends
Cyber criminals are opportunistic and will look for any advantage to beat cannabis industry cybersecurity systems or trick employees. Holidays can be a prime time for attacks because of employees taking time off and being more distracted than usual. Holidays and major newsworthy events can also lead to a spike in phishing and other scam activities. In the same way FEMA often warns people to look out for scams after natural disasters, consider what industry news may cause a lot of buzz that could also be used in phishing campaigns. Announcements related to a new state legalizing adult use, or legislative updates around SAFER Banking could all be hiding malicious links.
Being involved in communities that actively sharing information about ongoing threats can be very beneficial. A member of the Cannabis ISAO recently shared details of cash management company who had been avictim of a Business Email Compromise (BEC) which led to fraudulent wire transfer requests being sent out. Days later MJBizDaily reported a similar incident which resulted in the loss of funds totalling nearly $650K for MariMed. Keeping up to date on these types of incidents can help inform employees of the current threat landscape, and boost organizational resilience.
Incident Response
Responding to a cybersecurity incident is not the first time you want to be considering what your response processes are. In response to the recent high profile MGM and Caesars ransomware incidents, National Cyber Security Alliance Executive Director Lisa Plaggemierstated “the best way to deal with a ransomware attack is to practice having one, to do tabletop exercises.” Having plans and procedures in place are important, but it’s equally important to test and validate those plans.
In the event of an incident, it may be necessary to utilize a digital forensic vendor. Consider having one on retainer, or at least establishing a relationship ahead of time to enable a speedy response. In some cases your cyber insurance company may have preferred vendors for this type of work.
Conclusion
The RMIC advocates for a proactive approach to risk management that emphasizes the importance of informed decision-making. By evaluating an insurer’s claims experience, comprehending legal nuances, and staying attuned to the evolving threat landscape, you can empower your business with robust protection, ensuring a resilient foundation for growth and success.
NCIA Welcomes New and Returning Members to its Board
The National Cannabis Industry Association (NCIA) is thrilled to unveil the distinguished individuals selected to join its board for the 2024-26 term. Comprising leaders and innovators from various sectors, the newly appointed board members bring a wealth of expertise and commitment to shaping the future of the cannabis industry.
As the CEO of NCIA Evergreen Member FundCanna, Adam Stettner, with extensive experience beyond cannabis, advocates for strong industry representation, emphasizing the need for varied perspectives, political savvy, and insights from a nationwide service provider, eager to advance the collective cause.
Josh Wurzer, Co-Founder and Chief Compliance Officer at SC Labs, is a pioneer in cannabis testing, having commercially tested medical cannabis since 2008. With roles on various industry advisory groups and boards, including the California Cannabis Industry Association and the U.S. Pharmacopeia Cannabis Expert Panel, Josh brings unparalleled expertise in cannabis science to the NCIA board, championing quality control and safety.
Incumbents Returning for Another Term
The Annual Nominating Committee, consisting of sector committee chairs and select board members, has also appointed six esteemed incumbents for another two-year term:
This selection process, guided by transparency and inclusivity, is a testament to NCIA’s commitment to representing the diverse voices within the cannabis industry.
Leadership for the Cannabis Community
NCIA, proudly recognized as the most inclusive and transparent association in the cannabis industry, emphasizes the significance of leadership chosen by its membership. Board members, selected through a thoughtful and democratic process, serve two-year terms, ensuring a continuous infusion of fresh perspectives.
The eight newly nominated board members will join their counterparts currently serving in the 2023-25 term. This blend of experienced incumbents and dynamic newcomers underscores NCIA’s dedication to fostering an environment that encourages growth and innovation.
A Commitment to Values
As an organization, NCIA is steadfast in upholding the values expected by its members. The board, with its diverse composition, reflects the industry’s dynamism and mirrors the inclusive nature of the association.
For a detailed overview of the board members and their impressive bios, please visit our Board Members Page.
NCIA remains at the forefront of championing the cannabis industry’s growth and prosperity. The 2024-26 board is poised to lead with vision and dedication, ensuring that NCIA continues to be a driving force in shaping the future of cannabis.
Member Blog: Cannabis Industry Predictions for 2024
Presented by the Cannabis Team with BGM, a Seedling Member of NCIA
As we usher in the transformative year of 2024, the cannabis industry stands at the threshold of unprecedented growth and evolution. The Cannabis Team at BGM, a dedicated Seedling Member of the National Cannabis Industry Association (NCIA), invites you to explore the latest insights and predictions for the cannabis sector in their comprehensive blog post. This overview provides a glimpse into the changing landscape, legislative shifts, emerging market dynamics, and the multitude of opportunities and challenges that lie ahead.
Let’s look at the latest insights and 2024 predictions for the cannabis industry. This blog addresses the changing landscape, including regulatory shifts and market opportunities. Continue reading to explore the future of the cannabis industry and learn how your cannabis business can stay ahead in the coming year.
Growth and Expansion
In 2024, the global cannabis market is expected to experience substantial growth, fueled by emerging legal markets, innovative product offerings, and technological advancements. This growth presents opportunities and challenges, especially in navigating complex legal and regulatory landscapes.
Market Dynamics
Projected Market Growth: The U.S. cannabis market is projected to grow significantly. Retail cannabis sales could reach $53.5 billion by 2027, with adult-use sales growing more rapidly. States like New York are working on finalizing details to launch approved programs, contributing to this growth.
Technological Advancements: Blockchain and AI will likely revolutionize supply chain management and compliance tracking.
Product Innovation: The trend toward personalized cannabis products is expected to gain traction as consumers become more educated and discerning. Cannabis companies will likely continue tailoring their products to meet a wide range of individual needs and preferences. However, pre-rolls are projected to continue to be a top product sale item in 2024. As people progress in their exploration and knowledge of cannabis, we believe they will gravitate towards craft cannabis products, and artisanal flower, despite the enduring demand for low-cost and convenient options.
Legislative Predictions
Legalization: We foresee several additional states legalizing recreational cannabis in 2024. Federal legalization of medical or recreational cannabis appears to be a long way off, as demonstrated by the inability of the SAFE Banking Act to pass in Congress.
SAFE Banking Act: This continues to be a pivotal issue, with potential movement expected in 2024.
Federal Rescheduling: Anticipated action by President Biden could reshape the industry’s regulatory framework, impacting financial reporting and taxation.
State-Level Changes: States like Maryland, possibly followed by Pennsylvania and Ohio, may influence regional market dynamics and tax structures.
Industry Trends
Ancillary Services: As the industry grows, so does the demand for financial and ancillary services, highlighting the need for specialized accounting solutions and advisory services.
Canadian Market Resurgence: Canadian cannabis stocks may witness a revival, affecting cross-border financial transactions and investment strategies.
Global Influence: Germany’s role as a market catalyst emphasizes the importance of understanding international financial regulations in the cannabis sector.
State Trends
Maryland and Neighboring States: Maryland’s recent move to full legalization is expected to influence neighboring states. Analysts predict that Pennsylvania might follow Maryland’s lead. There’s also pressure on Virginia to get its program operational in 2024.
Vermont and Mississippi: Farmers in states such as Vermont and Mississippi, which have legalized cannabis, face challenges with federal regulations around hemp cultivation. The U.S. Department of Agriculture (USDA) has rescinded hemp licenses for some farmers who grow marijuana, reflecting the ongoing conflict between federal and state laws regarding cannabis.
New York: The New York Cannabis Control Board anticipates approving additional licenses in early 2024. We will wait to see the progress.
Continued Legalization Trends: More states are likely to embrace broader cannabis legalization, including CBD and Delta 8 THC, enhancing consumer accessibility across the U.S. This trend is driven by legal advancements, ongoing research, and shifting societal views.
To continue reading the full article and explore the remaining sections on Financial Implications, Technology and Data Management, Ethical and Social Considerations, Global Market Integration, and Risk Management, click here to visit BGM’s website. Your journey into the future of cannabis begins now.
Join the Cannabis Movement: Become an NCIA Member Today
As we delve into the transformative year of 2024 in the cannabis industry, it’s crucial to be part of a community that champions growth, innovation, and advocacy. The National Cannabis Industry Association (NCIA) stands at the forefront, shaping the future of the cannabis sector.
Why Join NCIA?
Network with Industry Leaders: Connect with like-minded professionals, industry leaders, and visionaries who are driving the cannabis industry forward. NCIA offers a platform for networking and collaboration that is unparalleled.
Stay Informed: Stay ahead of the curve with the latest insights, trends, and legislative updates. NCIA provides valuable resources and information, ensuring that you are well-informed about the dynamic landscape of the cannabis market.
Advocacy and Influence:Be part of a collective voice that advocates for sensible cannabis policies at the national level. As a member of NCIA, you contribute to shaping the regulatory environment and fostering a thriving, responsible cannabis industry.
Who Should Join?
If you are a cannabis business owner, entrepreneur, investor, or industry enthusiast, NCIA is your gateway to a community that understands the unique challenges and opportunities within the cannabis sector. Whether you’re navigating legislative changes, seeking business connections, or staying informed about market dynamics, NCIA is the ultimate resource.
How to Join:
Becoming an NCIA member is simple. Visit our membership page to explore the benefits and choose the membership level that aligns with your goals. Join the community that is actively shaping the future of the cannabis industry.
Member Blog: Discovering Dank – Unraveling the Mystery of the Cannabis Plant’s Iconic Odor
For decades, cannabis enthusiasts and scientists alike have been intrigued by the distinctive scents emitted by various cannabis cultivars. Particularly, the question that has persisted among many is: which compounds are responsible for the potent gassy and skunky scents so often associated with cannabis?
Abstrax Tech, a frontrunner in cannabis research, has recently made headway in answering this question. Their innovative research, encompassing advanced techniques and collaborative efforts, has brought forward the discovery of an entirely new class of aromatics, Cannasulfur Compounds (CSCs). These compounds, as discussed in Abstrax Tech’s white paper, “The Science of Dank” are the key to understanding the much-debated gassy aroma of cannabis.
The Path to Discovery
To delve deep into the scent mysteries, Abstrax Tech combined advanced Gas Chromatography (GC x GC) with various detectors, allowing for a nuanced detection of compounds. Their collaboration with acclaimed cannabis growers, like Mario Guzman of Sherbinskis and Josh Del Rosso (the original breeder of OG Kush), equipped them with diverse cannabis samples to analyze.
The analytical journey led the Abstrax team to an exciting hypothesis. What if the gassy scent in cannabis is sulfur-based? The team noticed the common occurrence of sulfur compounds in other potently aromatic foods, such as durian and garlic. Validating this hunch, they detected significant correlations between the presence of sulfur compounds and the skunky scent across various cultivars.
Among the discovered compounds, one was identified as 3-methyl-2-butene-thiol or “prenyl thiol”, with others also containing the same functional group, the “prenyl” group. Subsequent chemical synthesis and testing confirmed their role in producing the characteristic scent of cannabis.
The Significance of Timing in Cannabis Growth
But it’s not just about identifying the compounds. Abstrax Tech further explored when these aromatic CSCs are produced during cannabis growth. Their findings were eye-opening. The CSC concentrations skyrocket towards the end of the growth cycle and peak during the curing process, only to decrease rapidly post-harvest. This discovery holds immense value for growers, emphasizing the criticality of timing and packaging to retain the prized scent for consumers.
Cannasulfur Compounds in Cannabis Extracts
Cannabis extracts, popularly consumed in various forms, also raised the question: Do these volatile CSCs survive the extraction process? The answer, as per experiments, is a resounding yes, but with a caveat. The extraction process has to be meticulously executed. Techniques involving cryogenic extraction and minimal heat post-processing proved successful in preserving these aromatic compounds. Meaning that, just like terpenes, heat and oxygen will cause degradation.
Benefits for Cannabis Vape Manufacturers:
For cannabis vape manufacturers, CSCs represent a monumental advancement in the quest for genuine cannabis experiences:
Authentic Flavor Profiles: CSCs can be integrated into vape cartridges, recreating the unique aromatic and flavor profile of cannabis but in a botanical (and legal) format.
Product Differentiation: Emphasizing the presence of these natural compounds can distinguish a brand in a crowded market.
Precise Flavor Replication: With CSCs, manufacturers can precisely replicate specific strain aromas.
Enhanced User Experience: Experienced consumers will get a more accurate cannabis flavor and aroma experience.
Consistency from Batch to Batch: Using CSCs ensures every user gets a similar authentic experience, batch after batch.
Conclusion
Abstrax Tech’s groundbreaking discovery of Cannasulfur Compounds in cannabis is a testament to the endless surprises the plant holds. While the quest to identify the compounds behind the iconic gassy aroma has found its answer, it’s clear that this is just the tip of the iceberg for cannabis research. With each revelation, cannabis continues to unveil its vast potential, promising a future of exciting research and discoveries.
Ready to dive deeper into the fascinating world of cannabis discoveries?
Join the National Cannabis Industry Association (NCIA) and connect with like-minded enthusiasts, researchers, and industry professionals. As an NCIA member, you’ll stay on the cutting edge of groundbreaking findings, just like Abstrax Tech’s exploration into Cannasulfur Compounds. Don’t miss out – click here to join NCIA now and be part of the thriving cannabis community shaping the future of the industry.
Elevate Your Dispensary’s Presence In 2024 Using These Promotion Tricks
As we step into 2024, it’s safe to say that the cannabis industry is not just growing; it’s thriving! The reports reveal that the number of medical marijuana dispensaries in the US has observed a 1.7% jump from the previous year- totaling 5,142 in 2022.
Moreover, the industry is expected to skyrocket, with a projected compound annual growth rate (CAGR) of 14.66% from 2023 to 2028, reaching a market value of US$67.15 billion by 2028. Isn’t that amazing?
In such a booming market, the potential to earn profits is enormous. But how can you capitalize on this opportunity and make your dispensary the go-to place for cannabis products?
Are you also wondering the same? If so, we’ve got you covered! We have compiled a list of effective promotion tricks to help you elevate your dispensary in 2024. Let’s explore them together!
Focus On Local SEO To Maximize Your Visibility
Have you ever noticed that some dispensaries seem to have a never-ending stream of customers while others struggle for the same despite offering similar products and services?
If yes, the reason for such a difference is the savvy use of Local SEO. According to statistics, 46% of people search for local businesses on Google. What’s even more surprising is that around 80% of these local searches result in conversion.
Let’s take a look at this using an example. Suppose you own a dispensary in Buchanan, MI. In that case, if you want your buchanan dispensary to be the talk of the town, you must focus on Local Search Engine Optimization. This includes several steps, and a few of them are given below:
Ensure your Google My Business (GMB) profile is complete and accurate. It includes up-to-date contact details, operating hours, and high-quality images.
Use relevant keywords in your business description, focusing on terms potential customers might use. For instance, “Dispensary in [Your City] such as Buchanan, MI.”
Create localized and reader-friendly content on your website, such as blog posts about community events or local cannabis news.
Have a mobile-friendly website, as most local searches are done on mobile devices.
Build local backlinks by collaborating with other local businesses and participating in community events. It will boost your local search rankings.
Provide Exclusive Deals On The Home Page
After fine-tuning your local SEO, your website homepage becomes a vital touchpoint for capturing visitor interest. Picture this: a potential customer, drawn in by your high search ranking, lands on your site and gets greeted with an offer they can’t resist. That’s the power of providing exclusive offers right on your homepage.
As a matter of fact, these offers do more than just grab attention. They provide compelling reasons for them to stay and explore the entire website. It’s like saying, “We value your visit, and here’s how we show it.”
Now, the question is- How can you craft deals that not only entice but also resonate with your audience? No need to worry; we’ve got you covered! Here are a few types of discounts/deals you can provide to your target customers:
First-Time Buyer Discounts: Offer a special discount for first-time customers to encourage them to make their initial purchase.
Loyalty Rewards: Create a loyalty program where repeat customers earn points that they can redeem as discounts on future purchases.
Seasonal Promotions: Use holidays and seasons like Black Friday, Christmas, and New Year with themed discounts or bundles.
Exclusive Access: Provide early access to new products or special editions for regular customers.
Referral Bonuses: Encourage customers to refer friends by offering them a discount or free product for each successful referral.
Bundle Deals: Create product bundles at a reduced price to promote purchasing new products.
Offer Multiple Purchase Options
It goes without saying that customers prioritize convenience above all, especially when it comes to purchasing options. That means, by providing multiple ways to buy cannabis and related products, you make each customer feel catered to, regardless of their buying preferences.
For instance, some customers prefer browsing online but enjoy the experience of picking up their orders in-store. On the other hand, some value the convenience of home delivery. By providing options like online ordering with in-store pickup, home delivery, and direct purchases at your location, you’re taking steps to enhance their shopping experience.
All in all, if your dispensary can effortlessly meet their needs, you’ll quickly become their go-to choice. Yes, it’s that easy! It builds a bridge of convenience and flexibility, leading to increased customer satisfaction and loyalty.
But there’s a catch – you must understand exactly what your customers want. For this, you can try the following tips:
Surveys and Feedback Forms: Regularly ask for customer feedback through surveys or feedback forms, either in-store or online.
Focus Groups: Conduct focus groups with a diverse set of customers to gather in-depth insights into their preferences and needs.
Customer Service Interactions: Keep track of common queries and requests received by your customer service team.
Sales Data Analysis: Examine your sales data to identify trends and popular products among your customers.
Observational Research: Observe customer behavior and preferences in-store to gain real-time insights into their shopping patterns.
Try Social Media Storytelling
Does your dispensary have a social media account? If so, think about what you often post. Typically, businesses post about product updates and promotions. However, social media is an excellent platform for building an emotional connection with your target audience by sharing compelling stories and experiences.
For example, you can create reels about the journey of your business. Or, post customer testimonials on how amazing your service or products are. This type of content allows your audience to connect with your brand on a more personal level, seeing it as more than just a dispensary but as a community pillar.
In essence, using storytelling as social media marketing helps create a loyal community that resonates with your brand’s values. When they see the dedication and passion behind your products, they feel an intrinsic part of your dispensary’s story.
Having said that here are some elements that you must include in your social media storytelling:
Ensure your stories reflect your brand’s genuine values and mission. Authenticity resonates with audiences.
Include interactive elements like polls, questions, or calls to action to encourage audience participation.
Use high-quality images and videos to make your stories visually compelling.
Create a story that evokes emotions, whether it’s joy, empathy, or inspiration.
Share content that is relevant to your audience’s interests and current trends.
Offer glimpses into the daily operations of your dispensary, showcasing the people and processes behind your products.
Say Yes To Event Sponsorship Opportunities
Saying ‘yes’ to event sponsorship opportunities can open doors you never knew existed. It’s about putting your brand in the spotlight but in a way that feels genuine and community-oriented.
Just imagine your dispensary in Buchanan sponsoring a local music festival, art show, or wellness fair. These events aid you to resonate with your target audience and also position your brand as an active and supportive member of the community.
It’s worth noting that event sponsorship isn’t just about adding your logo to a banner. It’s an opportunity to engage with potential customers face-to-face, showcase your products, and build a positive brand image.
When people enjoy an event and see your dispensary contributing to that experience, they associate those good vibes with your brand. It’s a powerful way to build trust and recognition, turning attendees into loyal customers who remember your name long after the event is over.
Now, you may ask: How to avail such opportunities? Here are a few things you can try:
Collaborate with Local Businesses: Partner with local businesses that share a similar customer base for joint sponsorship opportunities.
Network in Industry Events: Attend cannabis industry conferences, trade shows, and networking events to connect with organizers and other businesses.
Contact Event Organizers Directly: Reach out to organizers of local events, festivals, and community gatherings to inquire about sponsorship opportunities.
Join Local Business Associations: Become a member of local commerce chambers or business groups to access insider information on upcoming events.
Utilize Social Media: Engage with local event pages on social media and express interest in sponsorships.
Tap into Nostalgia Marketing
Have you ever noticed how certain smells, sounds, or sights can transport you back in time? For example, the aroma of fresh pine might remind you of winter holidays spent with family.
This is the essence of nostalgia marketing, a powerful yet underrated tool that can make your dispensary stand out in 2024. By tapping into the fond memories of your customers, you create an emotional connection that goes beyond the product itself.
Now imagine adding similar retro themes to your product lines or store decor. It could be as simple as playing classic tunes from different eras in your dispensary. These subtle nods to the past can evoke warm, nostalgic feelings in your customers, making their experience with your brand more memorable and personal.
Perhaps we can say that this marketing technique is not just a trend; it’s about creating a sense of familiarity and comfort. When customers associate your dispensary with good old memories, they’re more likely to return and share their experiences with others. It’s a unique way to build a loyal community around your brand.
Below are a few nostalgic marketing tips you can try for your dispensary:
Retro Product Packaging: Design your product packaging with a vintage or retro theme reminiscent of past decades.
Classic Strain Revival: Introduce or highlight classic cannabis strains that were popular in past decades.
Throwback Events: Host themed events celebrating different periods, inviting customers to dress up and enjoy era-specific activities and products.
Connect Via Podcasts
Finally, podcasts are another popular way to connect with audiences on a more personal level. Using this tool, you can dive deep into the world of cannabis, discussing everything from the latest strains to the ins and outs of responsible usage.
It’s not just about providing information; it’s about building a community. By featuring guest speakers, such as industry experts or satisfied customers, you add different perspectives and voices to your brand. This approach makes your dispensary more relatable and trustworthy.
In other words, starting a podcast gives you a platform to tell your brand’s story, share knowledge, and engage with listeners who share your passion for cannabis. It’s a unique way to establish your dispensary as an authority in the field while creating a loyal listener base.
With that in mind, here’s how you can start a podcast:
Define Your Niche: Decide on a specific focus for your podcast, like cannabis education, industry news, or strain reviews.
Get the Right Equipment: Invest in a good quality microphone, headphones, and recording software.
Plan Your Content: Outline your episodes, decide on formats (interviews, solo talks, etc.), and prepare talking points.
Record and Edit: Record your episodes and use editing software to refine the audio quality.
Choose a Hosting Platform: Upload your podcast to a hosting platform like Spotify, Apple Podcasts, or SoundCloud.
Promote Your Podcast: Share your podcast on social media, your website, and through email newsletters.
Final Thoughts
In 2024, standing out in the bustling cannabis market requires creativity and connection. By embracing these promotion tricks, your dispensary can attract customers while building a community. Just remember to engage with your audience and adapt to their evolving needs.
Puff, Pass, Prosper: The Insider’s Guide to Operating a Consumption Lounge | 12.20.23 | Committee Insights
The cannabis landscape is experiencing a swift evolution, with one particularly captivating facet garnering considerable attention—cannabis consumption lounges. In a recent webinar titled “Puff Past, Prosper: The Insider’s Guide to Operating a Cannabis Consumption Lounge,” (or Designated Consumption Establishment) hosted by the National Cannabis Industry Association (NCIA), industry luminaries and entrepreneurs convened to exchange experiences, insights, and forward-looking perspectives on the future of cannabis consumption spaces.
NCIA Voices: Insights from Industry Leaders
Brian Hart, a panelist and member of NCIA’s Retail Committee, serving as moderator kicked off the conversation by introducing himself, shedding light on his background in the cannabis industry. Notably, Hart is venturing into the world of hemp beverages with his latest project, Vitam Group. His insights into the challenges of starting a cannabis-related business added a valuable entrepreneurial perspective to the discussion. Another panelist, Brian Anderson, an architect with 29 years of experience and Founding Partner of Anderson Porter Design, shared his extensive involvement in various facets of the cannabis space, including cultivation, manufacturing, and retail. Anderson’s emphasis on the design and architecture of consumption lounges brought a unique angle to the conversation. Richard Fleming, the founder and CEO of Altered State Cannabis Company, provided a glimpse into his journey from the legacy caregiver market to plans for a designated consumption establishment. Fleming’s personal story exemplified the transformative power of the cannabis industry. Ace Castillo, the founder and CEO of Banyan Tree Dispensary in Fresno, California, brought a regional perspective to the discussion. His journey from operating a dispensary under Prop 215 to his current ventures highlighted the evolution of the industry and the importance of enhancing customer experiences in consumption establishments.
Legal Considerations and Operational Challenges
The webinar delved into the intricate legal considerations and operational challenges associated with consumption lounges. The panelists emphasized the diverse landscape of rules and regulations across states and localities, with licensing requirements varying significantly. Federal challenges, including 280E taxes, posed additional hurdles for cannabis businesses.
State-Specific Insights
The discussion took a deep dive into the Californian market, where the Department of Cannabis Control does not directly regulate consumption lounges. Instead, local jurisdictions play a crucial role in granting licenses. The complexity of navigating both local and state regulations was highlighted, shedding light on the intricacies of the Californian cannabis landscape.
Insights into Cannabis Consumption Lounges
The panelists provided valuable insights into the definition and various forms of consumption lounges, ranging from health and wellness spaces to venues hosting diverse events. The panel stressed the importance of defining the underlying business model, reflecting the diverse approaches to operating such establishments.
Customer Experience and Community Building
Creating a positive customer experience emerged as a central theme, with an emphasis on dynamic and engaging environments. Brian Anderson suggested incorporating community spaces and rooms for rent, contributing to the overall positive atmosphere. The concept of consumption lounges as community spaces was explored, highlighting the potential for meaningful social connections.
Urban Environments and Cultural Shifts
Brian Anderson, leveraging his architectural background, provided insights into the demand for community spaces in urban environments. The discussion touched on the cultural shift in the perception of cannabis, emphasizing the role of consumption lounges in normalizing cannabis use. The positive social activity aspect of cannabis was underscored as a key contributor to changing societal perceptions.
Advocacy for Equal Treatment and Responsible Consumption
Advocacy for equal rights and privileges for cannabis consumers compared to alcohol consumers was a recurring theme. The panelists emphasized the responsibility of stakeholders in promoting responsible cannabis consumption. The importance of destigmatizing cannabis through collective efforts was highlighted, with designated consumption establishments playing a pivotal role in this cultural shift.
Community Engagement and Benefits
Engaging with the local community emerged as a critical factor for the success of cannabis-related businesses. Dispelling stereotypes and contributing positively to local economies were emphasized as essential components. The concept of community rooms and public benefits was discussed, showcasing the potential positive impact of cannabis businesses on the broader community.
Funding Challenges and Insurance Considerations
The challenges faced by social equity applicants in securing funding for their businesses were acknowledged. Richard Fleming shared insights into the difficulties of obtaining insurance coverage for consumption lounges, stressing the need for comprehensive coverage and collaboration with underwriters.
Conclusion
In conclusion, the NCIA webinar provided a comprehensive exploration of the complexities, challenges, and opportunities associated with cannabis consumption lounges. The webinar illuminated the legal intricacies, operational considerations, and cultural impacts of consumption lounges. It underscored the importance of responsible consumption, community engagement, and advocacy for equal treatment. As the cannabis industry continues to evolve, the webinar served as a compass, guiding stakeholders toward a positive and inclusive future.
In the spirit of collaboration and collective responsibility, the webinar left participants with a renewed sense of purpose. The journey toward destigmatizing cannabis and integrating consumption lounges into mainstream culture requires ongoing dialogue, engagement, and a commitment to positive change. As we bid farewell to the NCIA’s final #IndustryEssentials educational webinar of 2023, the stage is set for the industry to continue prospering, adapting, and shaping a future where cannabis consumption lounges are not just spaces of leisure but catalysts for positive societal transformation.
Unlock the Full Story: Watch the Full Webinar on NCIA’s YouTube Channel Today
To experience the complete coverage and immerse yourself in the nuances of operating a cannabis consumption lounge, we encourage you to watch the full webinar video on our official NCIA YouTube channel. Whether you’re an industry professional, an aspiring entrepreneur, or simply curious about the evolving cannabis landscape, this webinar offers a comprehensive guide to the challenges, opportunities, and cultural impacts associated with designated consumption establishments.
Unlocking Opportunities: Join NCIA for the 2024 Stakeholder Summit Series
As we wrap up our exploration of cannabis consumption lounges, we invite you to become an active participant in shaping the future of the cannabis industry. Joining the National Cannabis Industry Association (NCIA) offers an array of benefits, including exclusive access to invaluable networking opportunities, educational resources, and a vibrant community of industry professionals.
Networking Opportunities: NCIA provides a platform for you to connect with like-minded individuals, industry leaders, and experts in the cannabis space. Networking is a powerful tool for staying informed, discovering new opportunities, and fostering collaborations.
Educational Resources: Stay ahead of industry trends, legal developments, and best practices with access to exclusive educational resources. NCIA’s commitment to industry education ensures that you are well-equipped to navigate the evolving landscape of the cannabis market.
Advocacy and Representation: By joining NCIA, you contribute to a unified voice advocating for the cannabis industry. NCIA actively engages in policy discussions, lobbies for favorable regulations, and works towards creating a conducive environment for cannabis businesses to thrive.
NCIA’s 2024 Stakeholder Summit Series
Looking forward, NCIA is thrilled to announce the 2024 Stakeholder Summit Series, a collection of events taking place across four different markets throughout the first quarter of 2024 leading up to the 12th annual Cannabis Industry Lobby Days. These summits are designed to provide deep insights, foster meaningful connections, and address the critical issues facing the cannabis industry.
Membership Perks: NCIA members enjoy complementary access to all events based on their membership level.
Exclusive Pricing: Take advantage of discounted pricing on all sponsorship opportunities through the end of the year.
Registration Deadline: Prices for sponsorship opportunities are set to increase on January 1, 2024. Act now to secure your spot at the 2024 Stakeholder Summit Series.
Choose the membership level that aligns with your needs and aspirations.
Complete the online application to kickstart your journey as an NCIA member.
Act Now to Secure Your Spot
If you are passionate about the cannabis industry, committed to fostering positive change, and eager to stay at the forefront of industry developments, now is the perfect time to join NCIA. By becoming a member, you not only invest in your professional growth but also contribute to the collective strength of the cannabis community.
Don’t miss out on the opportunity to attend the 2024 Stakeholder Summit Series, connect with industry leaders, and gain insights that will propel your cannabis-related ventures. Act before the sponsorship pricing deadline on January 1, 2024, to lock in exclusive rates and maximize your visibility at these transformative events.
Join NCIA today and embark on a journey of knowledge, connection, and advocacy within the dynamic landscape of the cannabis industry. Your participation matters, and together, we can shape a future where the cannabis community thrives and prospers.
