Member Blog: Transportation Woes – The Unique Risks Cannabis Businesses Face and the Need for Specialized Insurance
In recent years, the cannabis industry has continued to grow with the legalization movement gaining momentum across the globe. As the market expands, so do the unique risks that cannabis businesses face, particularly when it comes to transportation. From theft and accidents to regulatory compliance, navigating the road to success in the cannabis industry requires adequate insurance coverage. In this blog post, I will explore the specific risks cannabis businesses encounter during transportation and the increasing importance of insurance products tailored to these challenges.
The Rising Threat of Theft
Protecting your valuable cargo from theft is a constant concern for cannabis businesses, especially during transportation. The high value of cannabis products makes them an attractive target for criminals. With high value products and cash amounts involved, the consequences can be devastating. That’s why it’s crucial for cannabis businesses to invest in insurance policies that specifically address theft risks during transportation. These policies can provide coverage for stolen goods, ensuring that businesses can recover from such losses and continue to thrive.
On the Road
Whether a retail delivery or wholesale distributor, transporting cannabis comes with its own set of challenges, particularly when it comes to employee safety, accidents and liability. Cannabis businesses must comply with strict regulations regarding transportation, including proper labeling, packaging, storing, tracking and secure transport methods. Additionally, accidents involving cannabis delivery vehicles can result in property damage, bodily injury, or even fatalities. Insurance products tailored to cannabis transportation risks can provide coverage for these eventualities, protecting businesses from costly lawsuits and providing peace of mind.
Staying Compliant
Navigating regulatory compliance with ever-changing regulations is a top priority and can be a challenge for any cannabis business. When it comes to transportation, the rules can be even more complex. Each jurisdiction has its own set of regulations governing cannabis transportation, such as licensing requirements, transport manifest requirements, and restrictions on the quantity of cannabis allowed per shipment. Failure to comply with these regulations can lead to significant penalties or even the suspension or loss of a cannabis license. Insurance products designed for the cannabis industry can help businesses stay compliant by providing coverage for regulatory fines and legal expenses.
Tailored Insurance
Meeting the unique needs of the cannabis industry and recognizing the unique risks faced by cannabis businesses, insurance providers have developed specialized products to address these challenges. Cannabis transport insurance policies offer elements of risk transfer strategies by providing comprehensive coverages, including theft, auto damage, liability and employee injury, while simultaneously meeting regulatory compliance issues. These tailored insurance solutions are essential for cannabis businesses, providing financial protection and ensuring business continuity in the face of inherent risk.
In general, the transportation of cannabis presents unique risks for businesses operating in the industry. From the constant threat of theft to accidents and regulatory compliance challenges, cannabis businesses must be prepared to face these risks head-on. Insurance products tailored to the specific needs of the cannabis industry offer crucial protection, allowing businesses to navigate the road to success with confidence. Investing in this insurance is not just a wise business decision — it is an essential step towards safeguarding the future of your cannabis business.
Member Blog: The Importance of Storing Cannabis Properly
Cannabis is affected by humidity.
Yes, cannabis is definitely affected by humidity. Cannabis plants are sensitive to changes in temperature and humidity levels, both during cultivation and after harvesting.
During cultivation, cannabis plants need a specific range of temperature and humidity levels to thrive. Too much humidity can lead to the growth of mold and mildew, while too little humidity can cause the plants to dry out and become brittle.
After harvesting, cannabis buds need to be dried and cured to preserve their quality and potency. During this process, it is important to control the humidity levels to ensure that the buds dry slowly and evenly. If the humidity levels are too high, the buds can become moldy, while if they are too low, the buds can dry out too quickly and lose their potency.
In addition, the humidity level can also affect the storage of cannabis. If the humidity levels are too high, it can cause the buds to become moldy, while if they are too low, it can cause the buds to become brittle and lose their flavor and potency.
Therefore, it is important to control the humidity levels during the cultivation, drying, curing, and storage of cannabis to ensure that the buds are of high quality, potent, and safe for consumption.
How can dry cannabis lose potency?
When cannabis is dried and cured, it naturally loses moisture. However, if the cannabis becomes too dry, it can begin to lose potency.
This is because the active compounds in cannabis, such as THC and CBD, are stored in the trichomes on the surface of the buds. When the buds become too dry, the trichomes can become brittle and break off, causing the loss of these valuable compounds.
In addition, when cannabis becomes too dry, it can also affect the flavor and aroma of the buds. The terpenes, which are responsible for the characteristic smells and tastes of different strains, can degrade over time if the buds are too dry.
Therefore, it is important to store cannabis at the correct humidity levels to ensure that it stays fresh and potent. The ideal humidity range for storing cannabis is between 59% and 63% relative humidity. If the buds become too dry, you can try to rehydrate them by adding a humidifying device, such as a moisture pack, to the storage container. However, it is important to be careful not to add too much moisture, as this can cause the buds to become moldy or develop other quality issues.
Cannabis potency versus humidity
The potency of cannabis can be affected by humidity levels. When cannabis is stored at a high humidity level, it can cause the breakdown of THC and other cannabinoids, decreasing potency. On the other hand, if cannabis is stored at a low humidity level, it can cause the buds to become dry and brittle, which can also lead to a decrease in potency.
Therefore, it is important to store cannabis in a controlled environment with the appropriate humidity level. This can be achieved using specialized storage containers, such as airtight jars or humidors, designed to maintain a consistent humidity level. It is also important to monitor the humidity levels regularly and adjust as necessary to ensure that the cannabis stays fresh and potent.
Cannabis taste versus low humidity
When the terpenes are lost, the flavor of the cannabis can become harsh, bitter, or stale. This can make the smoking experience less enjoyable and may also indicate a decrease in potency.
If the buds have become too dry, it is possible to rehydrate them by adding a humidifying device, such as a moisture pack, to the storage container. However, it is important to be careful not to add too much moisture, as this can cause the buds to become moldy or develop other quality issues.
Committee Blog: Defining Legal Hemp – It Isn’t Always Simple Math
If you are a cannabis-related business, and are looking to accept credit cards, it is only possible to do so if you are selling a product that is defined as legal hemp by the 2018 Farm Bill.
The 2018 Farm Bill provides that:
“The term ‘hemp’ means the plant Cannabis sativa L. and any part of that plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta-9 tetrahydrocannabinol concentration of not more than 0.3 percent on a dry weight basis.”
For the most part, it’s pretty cut-and-dry. Marijuana is a schedule 1 drug. Hemp is not. If your product has less than .3% Delta-9 on a dry weight basis, it’s not marijuana, it’s hemp. And since it’s hemp, it’s federally legal. And since it’s federally legal, it can be purchased with checks, credit cards, or debit cards. Hemp products are, reductively, as incendiary as a stick of butter.
Of course, there is the law and there is how acquiring banks—banks that offer merchant accounts—interpret the law. Across the U.S., there are hundreds of acquiring banks. Of those, only six or seven offer merchant accounts to hemp businesses.
That’s it, plus payment service provider Square.
The immediate problem for the few acquiring banks that have, laudably, said, “Yes,” to hemp is, “how do we distinguish products that are .3% Delta-9 or less (and therefore, yawningly legal) from those that are over .3% Delta-9 (and therefore, illegal as angel dust)?”
Enter the Certificate of Analysis, or COA, or lab report. While there is nothing in the law stating that COAs are required to prove that a product is within the federally legal limit, their role is sacrosanct during the boarding process. For every hemp-derived product, there must be a corresponding COA proving that the product being sold is hemp, and not marijuana.
Fortunately, there are labs across the nation. The U.S. Department of Agriculture website lists 85, as of May 2023. Manufacturers and businesses ship their samples to these labs. The labs run their tests and the COAs are issued.
Simple, right?
Not really.
There are no standards in place for these reports. No templates. Every laboratory’s COAs—while substantively providing the same information—look a little different. Furthermore, most bankers haven’t seen a lab report since high school chemistry, and you’ve got a recipe for confusion or misunderstanding (frequently both).
This COA, when it was initially presented to the bank, was rejected. To the underwriter, it was an open and shut case.
When the bank opened its door to offering acquiring to hemp businesses, its policy was to reject anything with greater than .3% Delta-9 by weight.
The top of this COA showed an instance of Delta 9 that read .189%. That passed muster, certainly. However, when he delved further into the analyte detail, he noted additional Delta-9 figures in excess of the .3% limit:
10.368 in the mg/unit cell
1.892 in the mg/g cell
It was not clear to the bank’s underwriter which of the two—per-unit or per-gram—corresponded with the by-weight percentage he was to be mindful of, but both were certainly over the .3% limit.
So, open and shut case: DECLINED
The salesperson that brought the merchant to this bank was surprised by the rejection. He hadn’t looked at the COAs very closely, but it seemed unlikely that this merchant had been selling products on her website that were in excess of .3% Delta-9.
Why? Because if the merchant had been selling products on its website in excess of .3% Delta-9, it would have been engaging in egregious felony drug trafficking. The salesperson doubted that was the case.
The salesperson did something he didn’t normally do: he took out his calculator.
He wanted to know why it read .189% Delta 9 at the top, but 10.368 in the analyte table. He noted the unit size at the bottom of the page was a gummy weighing 5.480g.
For the sake of simplicity, he multiplied that by 1000 to convert it to milligrams. That made it 5480 mg
Then he entered the onerous 10.368mg from the mg/unit figure in the analyte table and divided it by 5480mg. The resulting calculation netted the following total: .0018919.
Next, he converted it to a percent, and found that the result was .189%, which matched the figure at the top of the COA, exactly.
The next day, the salesperson presented the COA to the bank, with the markings and The Equation just as shown here.
It was an open and shut case: ACCEPTED
This situation is an example of why banks and credit unions unknowingly reject compliant hemp businesses from merchant processing solutions. As stated, a simple mathematical calculation was the difference between being accepted or rejected for necessary merchant processing services. Without proper merchant servicing not only are cannabis businesses’ profitability affected because they can only take cash; cash is also not as traceable or auditable as electronic transactions.
In general, businesses providing services to the cannabis industry are often challenged with disentangling legal risks with the benefits of their necessary services providing more transparency. With enhanced knowledge of the cannabis industry and its parameters, the cannabis industry will recognize a greater participation by all businesses necessary for the life of the industry thereby enhancing cannabis businesses’ likelihood to succeed but also enhancing the legitimacy and regulation of the industry.
Summer Recess & Cannabis Progress: Cannabis News from the Capitol and Expectations for the August Break
by Michelle Rutter Friberg, NCIA’s Director of Government Relations
After NCIA’s 11th Annual Cannabis Industry Lobby Days concluded in May, cannabis news from Washington, D.C. has been relatively slow. Curious about what’s next before August recess begins? Keep reading to see what may happen ahead of the break and for a recap on where we’re at now.
SAFE Banking
Last month, just before NCIA’s Lobby Days, the Senate Banking, Housing, and Urban Affairs Committee held a hearing titled “Examining Cannabis Banking Challenges of Small Businesses and Workers”. Witnesses included the bill’s lead sponsors, Senators Jeff Merkley (D-OR) and Steve Daines (R-MT), as well as Ademola Oyefes (International Vice President and Director of Legislative and Political Action Department, United Food and Commercial Workers International Union [UFCW]), Michelle Sullivan (Chief Risk & Compliance Officer, Dama Financial), Dr. Kevin Sabet (President/CEO, Smart Approaches to Marijuana [Project SAM]); and Cat Packer (Vice Chair, Cannabis Regulators of Color Coalition).
My takeaways from the hearing: no new talking points from Project SAM, surprised by DAMA’s comments (they’ve since walked their testimony [which many saw as opposition to the bill] back), and most importantly of all: the real need for SAFE so that we can stop talking about access to financial services and start talking about legalizing and regulation cannabis in a smart and equitable way.
As for what’s next? Banking Committee Chairman Sen. Sherrod Brown (D-OH) recently shared that SAFE Banking would be scheduled for a markup after a few other bills received theirs. The good news? That process has begun. The bad news? Still no formal news on when SAFE’s markup will be. I’m expecting it to be after the Fourth of July break but before members leave D.C. for their annual, month-long August recess.
Appropriations
For years, advocates have looked to the appropriations process as a way in which to enact cannabis reform at the federal level.
In 2014, a provision that protected medical cannabis patients, programs, and businesses from federal interference (known as the “Rohrabacher-Farr” amendment) was included in the federal budget and became law. Since then, the provision has been included in appropriations bills and remains the law of the land.
NCIA has (and continues to) lobby on behalf of expanding this provision to include adult-use businesses and to also use the appropriations process to enact other reforms like allowing Washington, D.C. to commercialize adult-use cannabis sales.
House GOP negotiators heightened the stakes earlier this week when they announced they would mark up their FY2024 spending plans to levels lower than the budget caps set as part of a deal struck between President Biden and Speaker Kevin McCarthy (R-CA). This will undoubtedly make the already contentious budget-process even more volatile.
Maryland
On July 1, adult-use cannabis sales will begin in Maryland. Cannabis became legal for those over 21 in Virginia in 2021, while D.C. legalized cannabis for adults via Initiative 71 in 2014 (but have been unable to begin sales due to congressional interference). Legal sales in the District’s neighboring states means that members of Congress will surely be more exposed to the benefits of regulation.
So, while it’s been relatively quiet in D.C. in June, stay tuned in July for a possible first-ever Senate markup of SAFE Banking! As always, NCIA will continue to advocate on behalf of your business and keep you updated on the latest.
Member Blog: Exactly How – and When – Does Glove Contamination Occur?
Justine Charneau, Head of Cannabis Industry Sales, Eagle Protect
Cannabis workers who regularly wear disposable gloves have every right to be surprised – shocked even – that the products they’re pulling from an unopened box may be contaminated with any number of harmful pathogens and chemicals, yeast species, or a variety of distinct genera of fungi – all of which are capable of leading to costly product recalls. After all, these gloves just came out of a brand new box, completely unused. But that’s precisely what a multi-year metagenomic testing and analysis study recently uncovered about contamination threats on the interior and exterior surfaces of nitrile gloves.
The threats were present because the gloves were contaminated prior to packing and shipping them to your supplier. contamination occurs during the manufacturing stage due to glove manufacturers operating in sub-standard facilities, compounded by their efforts to cut corners and save costs during the production process. Below, we trace the arc of surface pathogen transmission – from its primary source to the end user.
Polluted Water Sources
How does contamination first enter the manufacturing supply chain? In both a figurative and literal sense – the biggest threat comes from upstream. Many overseas glove manufacturers aren’t operating with clean water sources, using putrid water which can be polluted with agricultural fertilizers and pesticides, as well as industrial wastewater and both human and animal sewage. Glove manufacturing uses an abundance of hot water in several phases of production, so polluted water sources contribute to contamination.
Inferior Raw Materials
Contamination can be introduced with poor quality raw materials. While it saves money, gloves produced with cheap materials can include toxic chemical compounds and other unsafe filler ingredients. Chemical contamination in gloves caused a recent cannabis recall. Inferior raw materials can also greatly decrease the durability and performance of the glove and can easily cause skin irritations for the glove user.
Former Cleaning & Drying
The threat of contamination is further compounded when manufacturers fail to raise the water tank temperatures high enough to kill microbes. Formers, the ceramic, hand-shaped molds used in glove manufacturing, undergo cleaning processes involving hot water and bleach. When the water temperature and chlorine concentration aren’t high enough, or, if the wash water and brushes are not thoroughly cleaned between production stages, microbial contamination can occur.
Inadequate Drying Procedures
Following the former cleaning and drying stage, gloves are vulcanized (heat-treated) in ovens to both strengthen and elasticize them. Gloves are then subjected to the drying process in large industrial ovens that also require routine cleaning. But for some glove manufacturers , simply shortening the drying cycle in tumblers that aren’t routinely cleaned can slash utility costs. The result? These inadequate drying procedures leave products damp, where they’re much more susceptible to airborne microbial contamination.
The Packing Room
After the drying stage, gloves are boxed. New tech manufacturing does this automatically, however, gloves can also be packaged in unhygienic or unsanitary open-air packing rooms where human skin contaminants, including fecal matter, can contaminate gloves. These unsanitary conditions can further expose gloves to contamination, right before they’re packed into boxes.
As you can see, each of the production stages in the glove manufacturing process comes with its own set of contamination risks. If you’re inclined to think that government and industry regulations, oversight, and compliance requirements are designed to prevent such contamination risks, you’re going to be sorely disappointed. But that’s a topic for the next blog in our contamination series, so stay tuned.
Member Blog: Pre-Roll Market Industry Trends and Growth Potential
Having the ability to identify trends in the cannabis industry is vital for producers to build a successful brand, and the biggest trend in ther cannabis industry right now is pre-rolls. Growing at 12% YoY in the US and 38% YoY in Canada, pre-rolls are the fastest growing cannabis product in the world of legal cannabis, and it’s not close.
This trend could be chalked up to a sudden rise in popularity and as something that will decline once another hot trend appears; however, we believe that the rise of pre-rolls is more than just a flash in the pan. In fact, after looking over the sales data we received from Headset, we believe that pre-rolls will not only continue their growth, but they will become the bestselling cannabis products by 2030.
Here’s why!
Prices Fall, Sales Rise, Both Stabilize
Over the past few years, the wholesale price of flower has dropped dramatically in mature markets, and cheaper cannabis costs have allowed producers to source higher quality flower for their pre-rolls. Combined with the advances in pre-roll making machinery, quality pre-rolls are now able to be sold at a lower retail price, which has driven strong growth for the category.
As you can see from the graph, pre-roll sales have steadily increased as prices have fallen, but the last two years have seen both sales and prices begin to stabilize. The pre-roll segment that has seen the most growth during this time is infused pre-rolls. Customers love high THC percentages, and producers are happy to finally be able to offer it to them in an affordable pre-roll form.
Pre-Rolls have the Least Amount of Price Compression
It’s not just pre-roll prices that are falling. Prices are down across the board, but even though prices for all cannabis products declines over time, pre-rolls are showing the least amount of price compression. In other words, if you are in the business of selling cannabis, and you are worried about declining margins, pre-rolls are a category you should be expanding into to maintain and boost profitability.
You can also see from the graph that Canada has actually seen the average price of a pre-roll increase, but there is nuance to this data. This does not mean that pre-rolls are getting more expensive for Canadian consumers. This data shows just how popular infused pre-rolls are becoming. They are becoming so popular that people are choosing to buy them over regular, more affordable pre-rolls, and that change in buying habits has increased the average sales price for pre-rolls.
Pre-Roll Multi-Packs
Another interesting trend we see in the sales data is that pre-roll multi-packs have become extremely popular. In 2018, multi-packs of pre-rolls only made up 27.7% of the market in Oregon, Washington, and Colorado. By 2023, multi-packs make up 47.62% of the market—representing a growth of about 20% over 5 years. Also, Since 2021, we have seen an almost 400% growth in multi-packs that have a volume of 2 or 5 grams as well as steady growth across most other sizes.
Buying pre-rolls by the pack is a lot more convenient for consumers. It means not making a special trip to the dispensary every time a pre-roll is wanted. The rise in their popularity is a sign that consumers are investing in pre-rolls as a staple in their cannabis routine. Because they know they will continue to enjoy pre-rolls, they buy multiples at a time for convenience, and it’s this kind of product loyalty that moves a product from a trend into something more.
Wallet Share by Age
Another interesting thing about pre-rolls is that, when it comes to wallet share, they are the most consistent product segment across all age groups. Other products show a significant increase or decrease in popularity with each new generation; however, pre-rolls steadily hover between 12.8% and 14.5% in each group and even show a slight increase with the younger generations.
It’s also important to note the decline of flower with younger generations. Why this is significant is because, at their core, pre-rolls are a flower product, and they are not following the same decline in sales. They distinguish themselves from loose flower by providing consumers a way to enjoy their flower without extra paraphernalia. In this way, we think pre-rolls could start to eat into the flower market, as they better meet the consumption needs of flower customers.
Pre-Roll Attachment Rates
Another big reason why pre-rolls will remain a dominant product segment in the future is that they are the perfect add-on item at the point of sale. The data shows that, when a person walks into a dispensary, they will add-on a pre-roll 15.5% to 23.3% of the time. In fact, in all product segments, pre-rolls either have the highest attachment rate or are within a single percentage point of the leader.
In other words, no matter what a customer is interested in purchasing, it doesn’t take a lot of convincing to get them to add on a pre-roll. They’re reasonably priced, made with quality materials, and incredibly convenient. Whether they want to consume it right away or want to save it for later, pre-rolls have become something flower lovers like to have on-hand for whenever, and that makes it more than a trend. That makes it a staple.
Convenience Impacting Pre-Roll Purchasing
Cannabis is starting to make its way into mainstream culture. You can’t buy it at your local grocery store, like you can buy wine or cigarettes, but it’s out there. The legalization of cannabis has opened the door to innovation in the cannabis industry, and those innovations are starting to have an impact on everything—especially consumption.
Flower needs paraphernalia to be consumed, and, if you are just trying to enjoy cannabis, sometimes you just don’t want the hassle. Pre-Rolls are unique in that they offer the consumer flower as well as a way to consume it, so it’s not too much a leap to think that pre-roll could keep expanding and start eating into flower sales.
In this way, cannabis can be compared to tobacco. Even though people can buy loose tobacco and roll their own cigarettes or use a pipe, most people are buying pre-rolled products. Even though the tobacco quality, smoking experience, and price point can be better when you buy loose tobacco, most people are choosing the convenient option. It shouldn’t surprise us that cannabis starting to fall into this pattern as the market matures.
Final Thoughts on The Pre-Roll Market
The data lets us know that pre-rolls are doing amazing things when it comes to sales, but it is also giving us hints as to trends in consumption methods. Pre-rolls are a flower product, and it’s clear from the data that flower consumers are buying into the convenience of pre-rolls. This is more than just a trend, but a shift in the preferences around flower consumption. Because of this shift, we can see pre-rolls taking on a more prominent role as the cannabis industry continues its expansion.
For a more in-depth look at the pre-roll industry, be sure to check out the State of the Pre-Roll White Paper, and, if you have any questions, feel free to reach out to the Pre-Roll Experts at Custom Cones USA.
Committee Blog: Optimizing the Cannabis Dispensary Experience – An In-depth Look at Terpenes, Cannabinoids, and THC for Superior Customer Service
The cannabis industry has experienced rapid growth in recent years, with more and more states legalizing its use for medical and recreational purposes. As a result, cannabis dispensaries are becoming increasingly popular, with many people visiting them for the first time. For dispensary owners, managers, and budtenders, it’s essential to provide a positive customer experience to build brand loyalty and attract repeat business. This blog will discuss the importance of focusing on the customer experience at cannabis dispensaries and how understanding terpenes, cannabinoids, and THC percentages can improve the overall experience for both new and experienced users.
Understanding the Customer Experience
What makes a great customer experience at a cannabis dispensary? A positive experience can be characterized by:
Knowledgeable Staff:
Budtenders and other staff members should be well-trained and able to provide accurate and easily digestible information on various cannabis products, including their effects and appropriate dosages.
Welcoming Atmosphere:
Dispensaries should be clean, well-organized, and aesthetically pleasing, making customers feel comfortable and at ease during their visit.
Product Selection:
A wide variety of high-quality cannabis products should be available to cater to the diverse preferences and needs of customers.
Personalized Recommendations:
Budtenders should be able to make personalized recommendations based on the customer’s preferences, desired effects, and level of experience with cannabis.
Terpenes, Cannabinoids, and THC: Key Components of Cannabis
To provide an exceptional customer experience, it’s essential for dispensary staff to understand the key components of cannabis, including terpenes, cannabinoids, and THC percentages. These components play a significant role in the overall effects of cannabis and can help staff make tailored recommendations for customers.
Terpenes:
Terpenes are aromatic compounds found in many plants, including cannabis. They give each strain its unique aroma and taste, and they can also have therapeutic effects. There are over 100 different terpenes in cannabis, with some of the most common ones being myrcene, limonene, and pinene. Understanding the terpene profile of a specific strain can help staff recommend products based on the desired flavor and aroma, as well as the potential therapeutic benefits.
Cannabinoids:
Cannabinoids are the chemical compounds found in cannabis that interact with the body’s endocannabinoid system, producing various effects. Many Cannabis products advertise “full-spectrum” CBD, meaning that the product not only contains CBD, but can also contain the other cannabinoids as well as terpenes, essential oils, and up to 0.3% THC. There are over 100 different cannabinoids in cannabis, with THC (tetrahydrocannabinol) and CBD (cannabidiol) being the most well-known. THC is responsible for the psychoactive effects of cannabis, while CBD has various therapeutic effects without causing a “high.” Dispensary staff should be familiar with the different cannabinoids and their effects to help customers choose products based on their desired experience.
THC Percentages:
The THC percentage of a cannabis product indicates the concentration of THC, which largely determines the psychoactive effects of the product. Generally, higher THC percentages lead to more potent effects. However, it’s important to note that the overall effects of a cannabis product are influenced by other factors, such as the terpene profile and the presence of other cannabinoids. Dispensary staff should be able to explain the significance of THC percentages and guide customers in selecting products with appropriate potency levels.
Educating Customers and Tailoring Recommendations
Dispensary staff should prioritize educating customers about terpenes, cannabinoids, and THC percentages to help them make informed decisions about their purchases. By understanding these components, customers can better tailor their cannabis experience to their preferences and needs.
For example, a customer looking for a relaxing experience may be interested in a strain high in myrcene, a terpene known for its sedative and relaxing effects. In contrast, someone seeking a more uplifting and energizing experience might prefer a strain with a higher concentration of limonene, which is associated with elevated mood and increased energy. Additionally, customers with little to no experience with cannabis may prefer strains with lower THC percentages to avoid overwhelming psychoactive effects.
When assisting customers, dispensary staff should ask about their preferences, desired effects, and experience level with cannabis. Based on this information, they can recommend strains and products that align with the customer’s goals while considering the terpene profile, cannabinoid content, and THC percentage. This personalized approach can help customers feel more confident in their purchases and lead to a more satisfying experience.
For HR Professionals: Training and Development
To ensure that dispensary staff can effectively educate customers and provide tailored recommendations, it’s crucial for HR professionals to invest in comprehensive training and development programs. Training should cover a wide range of topics, including:
Cannabis Fundamentals:
Staff should have a solid understanding of cannabis basics, such as the differences between indica, sativa, and hybrid strains, and the various forms of cannabis product, methods of ingestion and their varying timing of effects (e.g., flower, edibles, concentrates, tinctures, and topicals, vaping, eating, and drinking).
Terpenes, Cannabinoids, and THC:
As discussed earlier, staff should be well-versed in the role of terpenes, cannabinoids, and THC percentages in determining the effects of cannabis products.
Customer Service Skills:
Staff should be trained in effective communication, active listening, and empathy to better understand and serve their customers.
Compliance and Regulations:
Dispensary staff should be knowledgeable about state and local regulations regarding cannabis sales, as well as safety protocols and best practices for handling cannabis products.
By providing thorough training and development opportunities, HR professionals can ensure that dispensary staff are equipped to deliver an exceptional customer experience.
The Role of Technology in Enhancing the Customer Experience
As the cannabis industry continues to grow and evolve, technology is playing an increasingly important role in enhancing the customer experience at dispensaries. In this section, we’ll explore several innovative technologies and tools that can help dispensary owners, managers, and staff provide an even better experience for their customers.
Point-of-Sale (POS) Systems:
Modern POS systems designed specifically for cannabis dispensaries can streamline the sales process and improve the customer experience. These systems can track customer preferences, manage inventory, calculate taxes, and ensure compliance with state and local regulations. By investing in a robust POS system, dispensaries can provide a more efficient and personalized service for their customers.
Digital Menus:
Instead of relying on printed menus that can quickly become outdated, dispensaries can use digital menus to display their product offerings. These menus can be easily updated to reflect current inventory, and they can also include detailed information about each product, such as terpene profiles, cannabinoid content, and THC percentages. By providing customers with easy access to this information, digital menus can help them make more informed decisions about their purchases.
Online Resources and Mobile Apps:
Dispensaries can enhance the customer experience by offering online resources and mobile apps that provide valuable information and tools related to cannabis consumption. For example, they can develop educational content about terpenes, cannabinoids, and THC percentages or create interactive tools that help customers determine their ideal dosage based on their preferences and experience level. By providing customers with access to these resources, dispensaries can support them in their cannabis journey and help them make more informed decisions.
Customer Engagement and Community Building
Another crucial aspect of providing an exceptional customer experience at cannabis dispensaries is fostering a sense of community and engagement among customers.
Events:
Hosting events such as product launches, tastings, and guest speaker sessions can provide customers with an opportunity to learn more about cannabis, sample new products, and connect with other like-minded individuals. These events can also help establish a dispensary as a trusted source of information and a hub for the local cannabis community.
Educational Workshops:
Dispensaries can offer workshops that focus on various aspects of cannabis, such as understanding terpenes, cannabinoids, and THC percentages, cooking with cannabis, or cultivating cannabis at home. These workshops can help customers gain a deeper understanding of cannabis and its various uses, ultimately improving their overall experience.
Social Media:
Actively engaging with customers on social media platforms can help dispensaries stay connected with their audience, provide real-time updates on products and promotions, and gather valuable feedback. Dispensaries can also use social media to share educational content, answer customer questions, and participate in industry-related conversations.
Loyalty Programs:
Dispensaries can implement loyalty programs that reward customers for their repeat business, encouraging them to return and further engage with the dispensary. Loyalty programs can include discounts, exclusive promotions, or early access to new products, and can be an effective way to strengthen the customer-dispensary relationship.
Focusing on the customer experience at cannabis dispensaries is crucial for building brand loyalty, attracting repeat business, and maintaining a competitive edge in the growing cannabis industry. Dispensary owners, managers, and budtenders must prioritize educating customers about terpenes, cannabinoids, and THC percentages to help them make informed decisions and tailor their cannabis experience to their preferences and needs. HR professionals play a key role in ensuring that staff receive comprehensive training and development, enabling them to provide exceptional service and create a positive customer experience. By investing in the customer experience, dispensaries can set themselves apart and thrive in the competitive cannabis market.
Member Blog: Creative Promotion Ideas To Increase The Footfall In Your Dispensary
With the legalization of cannabis in several states, the demand for cannabis-infused products continues to rise. This has led to a surge in the number of dispensaries across the US.
According to recent reports by statistics, there are over 5500 legal dispensaries catering to the growing customer base.
Perhaps, it won’t be wrong to say that the competition level in this industry is fierce. And that’s why you, as a dispensary owner, have to find ways to set yourselves apart and attract footfall to your store.
The question arises: How can you make your dispensary stand out from the rest?
Well, in this article, we will explore creative promotion ideas that can help you boost your dispensary and drive success. So, let’s get started!
Listing Your Dispensary
One of the first steps to promote your dispensary is to ensure it is listed in all the relevant directories and online platforms. This includes popular review websites, local business directories, and cannabis-specific platforms.
Of course, the laws concerning cannabis businesses vary from state to state, so it’s crucial that you adhere to them.
Let’s suppose you have a dispensary in Maryland. In that case, your target customers will probably search online for the best maryland dispensaries and then visit them. They may even place their order online to get the products delivered to their doorstep.
However, if you haven’t registered yourself for these listening sessions, you’ll likely lose potential customers and, thereby, sales.
To avoid such a situation, you must list your dispensary as soon as possible. It’ll increase your chances of being discovered by customers and help you boost your customer base.
Nevertheless, make sure to provide accurate and up-to-date information, such as your address, contact details, and business hours. Also, ensure your patients have medical cards before you sell them any product, and your products have less than 0.03% THC in them.
Create Engaging Social Media Campaigns
Social media platforms like Facebook, Instagram, and Twitter are no longer mere mediums to connect and communicate. These have become powerful tools to promote businesses, including dispensaries.
You can use these platforms to share updates about new products, educational content about cannabis, and any special promotions or events you have planned. In addition, you can encourage target customers to follow your pages and engage with your content by offering incentives such as exclusive discounts or giveaways.
Regardless of the platform you use, each has a few guidelines that adhere to the regulations of specific states. It’s essential to familiarize yourself with these guidelines to avoid legal issues. Some general principles that you can follow include:
No Misleading Claims: It’s important to provide accurate information about your products and services. Avoid making any exaggerated or misleading claims about the benefits or effects of cannabis.
No depiction of consumption: In some states, it is prohibited to depict cannabis consumption in any form. So, be mindful of this when creating visual content for your social media campaigns.
No Image That Might Appeal To Children: Cannabis products can only be sold to people over the age of 21. In order to maintain a professional and responsible image, you must avoid using cartoons, animals, or any other picture that may attract kids.
The key here is to be transparent, informative and focused on building a positive reputation for your dispensary within the boundaries of the law.
Also, be consistent on social media. Regularly post relevant content and respond promptly to comments and inquiries. It’ll help create a positive and trustworthy online presence for your dispensary.
Loyalty Programs
Loyalty programs are a great way to reward and retain customers who regularly visit your dispensary. These programs encourage them to make frequent purchases to get discounts and special perks. At the same time, it makes them feel special, creates a sense of appreciation, and builds a robust relationship with your store.
For example, you can start a loyalty program called “Green Leaf Rewards.” When customers sign up for the program, they receive a loyalty card or a digital account. Every time they purchase at your dispensary, they earn points that collect over time.
Once they reach a certain number of points, let’s say 100, they become eligible for various rewards. These rewards could include discounts on future purchases, exclusive access to new product releases, or free merchandise.
Apart from point-based systems, you can also include referral rewards. This means that when a customer refers a friend to your dispensary, the existing customer and the referred friend receive a reward.
This not only incentivizes your loyal customers to spread the word about your dispensary but also attracts new customers eager to take advantage of the referral benefits.
Hosting Educational Workshops
Last but not least, there are several myths and misconceptions surrounding the use of cannabis. This makes it important to provide accurate information to the public. And hosting educational workshops can be an effective way to bust these myths and offer valuable insights to your target audience.
You can present scientific facts and research findings to help attendees understand the potential benefits and risks associated with cannabis use. Also, emphasize the importance of responsible consumption and the legal guidelines in place to ensure safety.
You can even invite industry experts to your workshops to beat the competition and boost your business credibility. These experts may include healthcare professionals, researchers, or experienced individuals with in-depth knowledge of cannabis. Make sure to foster an open and non-judgmental atmosphere, ensuring that everyone’s perspectives are respected.
Even so, it’s important to note that these workshops are not meant to encourage cannabis consumption but rather to educate individuals so they can make informed decisions. You must advise them to connect with their healthcare professionals, especially if they use cannabis for medical aid.
To Sum It All Up
Cannabis is a growing industry and highly competitive industry. That’s why it’s essential to differentiate yourself from the competition and build your creditworthiness. Fortunately, with the right mix of creative promotion ideas discussed in this article, your dispensary can become a go-to destination for cannabis enthusiasts, fostering growth and achieving long-term success. So what are you waiting for? Try these promotion strategies right away!
Committee Blog: Searching Through the Weeds – Identify, Attract, and Retain the Top Employment Prospects
Cannabis is one of the most heavily regulated industries, which brings a few more challenges that increase the difficulty locating prospects. This can make finding people who have the right skills and experiences a tricky endeavor, often fraught with risks. Small startup endeavors, vertically integrated companies and even MSO’s can run the gamut in terms of who is doing what day to day. Since we do not yet have the type of standardization that exists in more mature industries, it can be challenging to figure out who to hire, and with what titles.
Here are some tips, tricks, and best practices to attract the best prospects and hire suitable candidates that will bring value, commitment, and success to your business.
Try Not to Rush
Whether creating a new position, replacing an employee, or even expanding operations, the tendency is to want to fill a job with someone competent and available as soon as possible. But in order to find the best person, to not only perform the duties of the job but also enhance your workplace culture, grow, and evolve with your business, it takes time.
Clearly Define the Position
When posting a job listing, include more than a simple description of the duties to be performed. Instead, clearly define what the job entails, include what qualities a viable candidate should possess, and outline the culture and values of your business that you believe a potential hire should share. This structure will allow candidates to grasp a complete understanding of the job and match their strengths and interests to the description of the ideal candidate. Producing a clear understanding for both employer and employee about what is expected and how to excel.
Recruit Through Multiple Channels
Since so many qualified candidates could come from a wide range of other industries, it is vital to cast a wide net when searching for potential applicants. There are job boards that specialize in the cannabis industry, such as Viridian Staffing. Others like Indeed are effective places to get a lot of traffic on your job listings. Using social media like Facebook, Instagram, and LinkedIn can raise your visibility and reach those already in the job market. You could also connect with those that may be open to changing their career path but are not aware of the many opportunities available in the cannabis industry. Also, networking through cannabis-related events and membership associations such as the NCIA can also yield knowledgeable and ambitious candidates.
Looking at Comparable Industries and Transferable Skills
Business owners and recruiters can benefit from looking within a highly regulated sector to find talented employees with a solid knowledge base. The banking, pharmaceutical, alcohol, tobacco, and gaming industries have been around much longer than regulated cannabis. Recruiting talent from these comparable industry models can provide your business with relatable business perspectives and best practices that can benefit your workplace and complement your staff.
Much like the consumer-packaged goods industry, the cannabis industry sells products to the public and needs to hire talent in areas including sales, marketing, retail/distribution, HR, finance/accounting and legal/compliance. Some cannabis companies have often recruited and hired professionals who developed their skill sets in other industries.
Perform Pre-employment Screenings
In any industry as highly regulated the way cannabis is, having stringent pre-employment screenings and background checks is essential to ensuring your business remains compliant with all state laws and restrictions. Hiring unqualified employees can result in fines, penalties, and closures, so it is paramount that your business put procedures in place to screen any potential candidate. Pre-employment screenings should include:
A criminal and civil records search.
Restricted party search.
Professional license investigation.
A National Sex Offender Registry search.
A National Record Locator search.
A review of any previous compliance issues at past cannabis-related businesses.
Human Resources
During the recruiting process, identify candidates who have an established personal brand and who differentiate themselves. Employees will need to have a robust work ethic, attention to detail, able to work effectively in a team environment and possess the ability to merge their ambitions with the goals of the team and the company. Identifying and targeting candidates with and without cannabis industry experience can lead to recruiting success. This approach can broaden your recruiting net, differentiate your cannabis company, and provide the ‘edge’ you need to stand out from other potential employers.
Wages, Benefits, and Culture
One of the most essential steps is to ensure that your base salary, bonus structures and benefits packages are current and comprehensive is critical to attracting talented professionals that can take your business to the next level. Cannabis companies should look for candidates who understand the importance of your company’s specific goals and demands.
Training and Engaging
Your core employee onboarding compliance training package and continuing education plan offers a foundation to build upon. Significant areas of the industry are grappling with high turnover rates, particularly among those who do not succeed in the first few months of employment. Employee training and onboarding will help stem those departures.
A safe environment is created by assessing risk and using proper equipment, policies, and procedures to reduce or stop events or situations that could happen. As a security professional in the cannabis market, you will need a solid knowledge of security systems. Understanding the cannabis marketplace and the required security is essential to running a problem-free operation.
Closing
Remember that most people who are being hired don’t have any cannabis experience, or have very limited cannabis experience, or have legacy market cannabis experience. These individuals don’t yet understand all the compliance nuances and requirements that are needed to operate in a licensed business. Sometimes it’s the soft skills, personal qualities, and cultural fit that may make a candidate a better fit for a role than someone with more regulated cannabis-specific experience. A unique approach, clearly defined roles, a wide recruiting strategy, and transferable skills are the name of the game.
Member Blog: What Is New Hire Reporting and Why Is It Critical for Cannabis Companies
Cannabis is amongst the fastest growing industries in America, and it is also one of the most inexperienced. From the individual employee to the entire organization, the lack of commercial and regulatory knowledge can be a real burden for those facing it.
As an employer, one of the most common regulations you are responsible for is the reporting of any new hires to your state, or federal, governing body. Although new hire reporting can become quite recurrent, it is also critical to your business operations.
What is New Hire Reporting?
New Hire reporting is a process by which you, as an employer, report information on newly hired and rehired employees to a designated state agency shortly after the date of hire. As an employer, you play a key role in this important program by reporting all your newly hired employees to your state.
The Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996, known as welfare reform, requires all employers to report certain information on their newly hired employees to a designated state agency.
Who is considered a newly hired employee?
The law defines a “newly hired employee” as an employee who has not previously been employed by the employer; or was previously employed by the employer but has been separated from such prior employment and rehired.
Is the reporting process difficult?
The majority of the information you submit is already collected when your employee completes a W4 form. Still, the reporting process is an additional requirement, which may possibly add time and expense to your company’s operations. To ease the process, states are working together with employers, offering them a variety of reporting methods.
New Hire reporting is one of the many services we offer at Tesseon to reduce your burden and help you to stay in compliance.
Does New Hire reporting benefit employers?
A potential benefit to employers is the reduction and prevention of fraudulent unemployment and workers’ compensation payments. Timely receipt of New Hire data allows each state to cross-match this data against its active workers’ compensation and unemployment insurance claimant files to either stop or recover erroneous payments. States have saved millions of dollars of erroneous unemployment insurance payments because of these cross-matches.
What is done with the New Hire information?
States match New Hire reports against their child support records to locate parents, establish a child support order, or enforce an existing order. In addition to matching within a state, states transmit the New Hire reports to the National Directory of New Hires.
State agencies operating employment security (unemployment insurance) and workers’ compensation programs have access to their state New Hire information to detect and prevent erroneous benefit payments.
In addition, each state can conduct matches between its own New Hire database and other state programs to prevent unlawful or erroneous receipt of public assistance, including welfare, food stamps and Medicaid payments.
How is the data safeguarded after it is submitted?
Security and privacy of New Hire data are important issues for all those involved in this nationwide program. Federal law requires all states to establish safeguards for confidential information handled by the state agency.
All state data is transmitted over secure and dedicated lines to the National Directory of New Hire (NDNH). Federal law also requires that the Secretary of Health and Human Services (HHS) establish and implement safeguards to protect the integrity and security of information in the NDNH, and restrict access to and use of the information to authorized persons and for authorized purposes.
Where and how do companies send New Hire information?
New Hire reports should be sent to the State Directory of New Hire in the state where the employee works. Federal law identifies three methods for submitting New Hire information: first class mail, magnetic tapes, or electronically. For employer convenience, states offer additional options such as fax, email, phone, and website transmissions. Your state New Hire contact can provide you with instructions on where and how to send New Hire information.
Federal employers report New Hire data directly to the National Directory of New Hire.
What information must an employer report?
Federal law requires you to collect and report these seven data elements:
Employee’s name
Employee’s address
Social Security number
Date of hire (the date the employee first performs services for pay)
Employer’s name
Employer’s address
Federal Employer Identification number (FEIN)
Some states require additional data, please check your state’s specific reporting requirements.
Are there penalties for failing to report New Hires?
States have the option of imposing civil monetary penalties for noncompliance. Federal law mandates that if a state chooses to impose a penalty on employers for failure to report, the fine may not exceed $25 per newly hired employee. If there is a conspiracy between the employer and employee not to report, that penalty may not exceed $500 per newly hired employee. States may also impose non-monetary civil penalties under state law for noncompliance.
Is New Hire reporting required for independent contractors?
Some states do require the reporting of independent contractors. However, federal law does not require it. Contact the person identified on the State New Hire Reporting Contacts and Program Information matrix for state-specific requirements.
How soon must I submit a report after hiring someone?
Federal law mandates that New Hires be reported within 20 days of the date of hire. However, states are given the option of establishing reporting time frames that may be shorter than 20 days. You must adhere to the reporting time frame of the state to which you report. Be sure to check with your state New Hire contact to learn your state’s requirements.
What form is used to send New Hire reports?
Reports must be made either on a copy of the W4 form or, at your option, an equivalent form developed by you. Some states have developed an alternate form for reporting, but its use is optional.
Options for multistate employers to report new hires?
If you are a multistate employer, you have two reporting options:
Report newly hired employees to the states where they work, or
Select one state where your employees work and report all your new hires to the selected state.
If you choose to report all new employees to one state (option B), you must:
Register with HHS as a multistate employer
Designate the state that you will report
Submit your new hires electronically or by magnetic tape to the state you have chosen, no more than twice a month (12 to 16 days apart)
There are two ways to register as a multistate employer, either online or by downloading and filling out the designated paper form (PDF).
Once you complete the registration as a multistate employer, report employees to the state that you have chosen.
Need advice for your business?
At Tesseon we understand that your organization may need help getting things done. That is why we offer stand-alone services for areas that can be a challenge to any business. With our in-house expertise and award-winning support we can help you handle any business challenge that comes your way.
Member Blog: Building Trust for Your Brand in a Distrustful World
by Gary Paulin, VP of Sales and Client Services at Lightning Labels
“Trust,” “like,” and “respect” are three time-tested criteria for deciding everything from friendships to business relationships. Despite all the trendy buzzwords and expensive technology-driven “customer service” programs that purport to increase sales revenues, most buying decisions revolve around trusting, liking, and respecting the company.
It’s that basic. And that human. Too many companies are trying to supplement—or even supplant—the value of human interaction with the latest shiny technology tools. People still matter, in some ways more than ever before in an increasingly impersonal world. Many consumers crave top-notch customer experiences shaped by people doing right by the customer in every way possible.
Key to success is achieving a balance between human and technology interaction where the two support each other. While technology can be a valuable support system in the relationship-building process, it isn’t the solution in and of itself.
For example, technology that automates perfunctory pieces of the customer journey can free up more human resources for personal interactions. One primary example is a call center where much of the intake process is automated, getting more people more quickly into the queue to talk to someone. (In smaller companies, this truly can mean the difference between employees filling much of their time with routine, non-interactive tasks and actually talking with consumers—where human participation is most valuable.)
Technology itself drives—or drives away—trust, likeability, and respect
A report released by Ernst & Young (EY) notes that the technology itself adds to or detracts from customer engagement. In part, it noted: “This isn’t just a question of choosing the right technologies…It’s crucial that digital innovation protects and nurtures the relationship with the consumer. Three things matter here: trust, respect and value. Can people trust you to use technology responsibly and safely? Do they feel you are using technology to help them, or to take advantage of them? Is the value they get from an innovation fair, considering how much your business benefits?”
The EY report continues, “Consumers remain wary about the impact of new technologies…They can become highly reliant on a tool, while also worrying about its risks to their mental and financial wellbeing. For example, people take the constant connectivity of their mobile devices for granted, yet they increasingly want to turn off alerts and reminders because they find that persistent connectivity overwhelming.”
What are key takeaways for cannabis industry purveyors?
Assess what you’re doing well and not so well in the trust, like, and respect categories. If you receive substantial reviews through credible non-curated platforms such as Google, see what people are saying about customer service, product quality, technology interactions, et al. Ask questions when customers are on-site or on the phone to help assess what they feel is working well and what needs improvement. Get them live and in the moment for more authentic information. If you must follow the online survey trend, use responses as part of the total picture. Make sure it doesn’t take respondents too much time, and ask thoughtful, probing questions that address the areas of trust, likeability, and respect.
Synthesize reviews, discussions, and survey results to chart a course for better outcomes. Companies can be too linear. For example, they examine only survey results and base future enhancements on those findings. Get input from multiple sources, then synthesize findings and feedback to chart a course for improvement. It’s not unlike the job of a good reporter. One source provides information. Then, the reporter attempts to verify with at least a couple other reliable sources before coming to conclusions. This is a case where being a good reporter will lead to better outcomes.
It’s way past time to address the tried-and-true cornerstones of how best to build and maintain solid relationships. And understand that enduring solutions come from multiple sources, with technology playing an appropriate support—not be-all, end-all—role.
Step Inside NCIA’s In-Person Events of 2023: An Exclusive Recap
NCIA is thrilled to have brought back our highly anticipated in-person events during the first half of 2023. We extend our heartfelt gratitude to the over 1200 members and supporters from 400+ companies who joined us on the road from January to May. Together, we experienced 10 Industry Socials, the revival of our renowned Cannabis Caucuses, the launch of social equity-focused workshops, and, of course, our 11th Annual Cannabis Industry Lobby Days. Join us as we reflect on the past five months, relive the excitement, and share the key moments from these events that fostered community building, provided education, and advanced our advocacy efforts.
Our event schedule took us to several prominent cities in both established and emerging markets, including San Francisco, Los Angeles, St. Louis, Seattle, Boston, Miami, Portland, OR, New York, Chicago, and Detroit, where we hosted our Industry Socials. These events served as a catalyst for bringing together local cannabis communities, providing them with a platform to network and reconnect with our dedicated NCIA staff and sponsors in a relaxed and informal setting. Besides fostering networking, these events provided attendees with the opportunity to meet and learn from our local Allied Association Program members and regulatory representatives, including MoCannTrade, The Cannabis Alliance, the Cannabis Industry Alliance of Oregon, and the New York Office of Cannabis Management.
During our event in Missouri, Andrew Mullins and Melissa Khan from MOCannTrade provided valuable insights into the recent implementation of legalization in the state. They shared details about the issuance of over 400 licenses, including those for Cultivation Facilities, Manufacturing Facilities, Dispensaries, Testing Labs, and Certified Transporters as well as talked about the yet to be issued Microbusiness Facility Licenses. They also highlighted the historic tax revenue generated during the opening weekend of sales, which amounted to an impressive $12.6 million.
In Washington, Burl Bryson, Executive Director at The Cannabis Alliance, discussed the recent passage of S.B. 5546 in the Senate. Although the bill, aimed at establishing a Washington state cannabis commission, faced challenges in the Appropriations Committee in early April, we encourage you to explore the provided resources, including an Issue Brief, FAQ, and Webinar Wednesday, to gain a deeper understanding of the commission’s purpose.
Photo Credit: The Hood Collective
In April, Jesse Bonteceau of The Cannabis Industry Alliance of Oregon highlighted recent developments surrounding new testing regulations proposed by the OLCC, specifically regarding Aspergillus. Jesse also shed light on the regional industry coalition’s strategy to address this situation. Emphasizing the importance of engaging in both regional and national advocacy efforts, Jesse shared ORCA’s participation in NCIA’s 9th Annual Cannabis Industry Lobby Days and encouraged attendees to join both associations to ensure our collective efforts continue to make an impact.
At our New York Industry Social, Axel Bernabe, the Chief of Staff & Senior Policy Director for New York’s Office of Cannabis Management, discussed the rapid growth of the regulatory office, which now boasts a dedicated team of over 250 employees. Axel also shared updates on the issuance of Conditional Adult-Use Retail Dispensary (CAURD) licenses, marking a significant milestone for legal adult-use cannabis sales in New York State. He also addressed the efforts to combat unregulated cannabis sales, which undermine the legal businesses in the state.
Following a three-year hiatus, we hosted an unforgettable Cannabis Caucus in Denver, in collaboration with the Marijuana Industry Group. The event, attended by over 200 participants, took place at the Chambers Grant Salon space in the prestigious Ellie Caulkins Opera House. It featured a video address by Governor Jared Polis, an in-depth discussion on the regional industry landscape by the Marijuana Industry Group, and a federal policy update by NCIA CEO Aaron Smith. These elements collectively reinforced the necessity of actively safeguarding our industry in 2023. For further details about this event, please read more here, and watch Governor Polis’ address here.
In addition to our dynamic schedule of Industry Socials and Cannabis Caucuses, we launched satellite workshops tailored exclusively to social equity applicants and operators in four cities: Chicago, Detroit, Jersey City, and New York. These workshops, part of NCIA’s Diversity, Equity, & Inclusion program, aimed to provide an immersive learning and networking experience, empowering social equity applicants and operators to strengthen their position in the industry. To delve deeper into these workshops, we invite you to learn more here.
While we celebrate the successful return of these events, the true measure of their impact lies in the testimonials of those who attended. We invite you to read firsthand accounts from the individuals who participated and benefited from connecting with fellow professionals in the cannabis industry.
“I had great conversations with many people from all different areas of the cannabis industry; from seed (or tissue cloning in this case) to sale as they say.”
“I was able to learn more about the industry from the perspective of operators that are at different stages of the cannabis supply chain. Thank you for an amazing event!”
“I made a connection for our product in regular agriculture in addition to cannabis. The quality of the people and the connections made was top tier.”
“Everyone was actively networking which was great. Great venue, food, service and lots of attendees. Best event I have been to post-Covid.”
“I was able to meet new contacts and reconnect with people I haven’t seen in awhile. These events always help me put things in perspective and realize collectively we share similar ups and downs. It’s also important to learn what’s on the horizon for the industry and that our work is pushing the movement forward.”
“I reconnected with multiple folks I hadn’t seen in a while and met many new contacts I’m looking forward to building relationships with. Industry knowledge is so helpful in my line of work and I appreciate the talks.”
Lastly, we culminated our event schedule with the 11th Annual Cannabis Industry Lobby Days in D.C. Over 100 members joined us for this pivotal event, where our dedicated Government Relations team effectively organized attendees into 20+ teams, engaging in over 150 meetings with congressional offices over three days. Through the generous financial support of TILT Holdings and Evergreen Market, NCIA sponsored the travel expenses for four Social Equity advocates, ensuring diverse voices were represented within our delegation.
In addition to the many congressional meetings that took place, our staff organized a briefing for Senate staff on the SAFE Banking Act. Esteemed industry leaders, including Chris Jackson, NCIA Board Vice-Chair & Michigan-based cannabis operator and social equity leader, Monica Gray-Fong, NCIA Board Member & COO of California-based licensed cannabis distribution and delivery service, Nice Guys Inc., Kirk Fredrickson, CEO of 2Accept, a leading payment processor serving the cannabis industry, and Adam Crabtree, Founder & CEO of NCS Analytics, a prominent data analysis firm serving cannabis regulators, shared their experience and expertise during this informative session. You can view the entire briefing here.
During our time in D.C., we also had the distinct honor of recognizing Khurshid Khoja, Principal of Greenbridge Corporate Counsel, with the prestigious inaugural Steve Fox Excellence in Advocacy Award. This award recognizes Khurshid’s unwavering dedication to federal policy reform, and we extend our heartfelt appreciation for his significant contributions throughout the years. Congratulations, Khurshid, on this well-deserved recognition!
Looking ahead, we encourage you to mark your calendars for the upcoming 12th Annual Cannabis Industry Lobby Days, scheduled to take place from May 14-16, 2024. Join us as we continue to drive the cannabis industry forward through collaboration, advocacy, and a shared vision for a prosperous future.
Our events would not have been possible without the generous support of our 20+ sponsoring member businesses. We extend our deepest gratitude to these companies for their unwavering commitment to our cause, which played a vital role in the success of these events:
Are you seeking unparalleled B2B connections within the cannabis industry and fostering strong ties with the NCIA community? Look no further. Take the next step and contact us today to explore sponsorship opportunities with us.
As we continue to champion a thriving and inclusive cannabis industry, sign up for our newsletters to stay tuned for future updates and opportunities. Together, we will pave the way for lasting success. We look forward to seeing you at the next event!
The Equity Workshop Tour: Impactful Conversations with Regulators
by Mike Lomuto, NCIA’s DEI Manager
Part 1 of a Blog Series Recapping the Equity Workshop Tour – Spring 2023
I believe that the cannabis industry needs intimate and dynamic events, particularly if we are to build in an equitable and diverse fashion, and that’s why I embarked on the Equity Workshop Tour, navigating countless obstacles along the way.
After completing the four workshops that comprised the Tour, that belief has been validated, with several additional takeaways.
As part of each workshop, we conducted panel discussions with representatives of state and city regulatory agencies and advocacy organizations.
These conversations were especially illuminating for me, as I got to witness firsthand the ways in which regulators and advocates have been working together in each of these states, with the same mission of equity front and center.
NEW JERSEY
In New Jersey, the Cannabis Regulatory Commission (CRC) recognizes the need for input from stakeholders, and our intimate panel discussion, with a high level of audience participation, offered exactly that.
Hearing the “origin stories” of CRC Vice Chair Samuel Delgado and CRC Commissioner Charles Barker is a large part of why I believe we have a chance at an equitable industry. Because at the end of the day, we have solid allies within the halls of government, who share our mission.
I was very encouraged to learn about a state that appears to be outpacing other states in the drive to stand up an equitable industry. There does, however, appear to be a lot of work that needs to be done on the municipal level. This is where advocacy organizations, like NCIA, and stakeholders must work together to educate local regulators in order for expeditious and equitable permitting processes to unfold. I believe that NCIA’s committees can provide support in this area, as we have previously, by providing written or verbal testimony on specific matters that municipalities are still unaware of.
It was also illuminating to understand the role that service-disabled veterans play in the industry, as pointed out by Osbert Orduna (of NHCC and SDVICA). Nichelle Santos (M4MM) also contributed valuable insights to this panel discussion.
ILLINOIS
Illinois is a state that has drawn the ire of many. While the legislation was the first to include equitable provisions, the implementation has been challenging, and many people have lost a lot.
That said, as opposed to the nascent and scattered approach of advocacy I witnessed here a few years back, it’s very encouraging to see advocacy organizations working together on the same page, developing a collaborative working relationship with one another and the regulators. A big shoutout to Cannabis Equity Illinois Coalition (CEIC) for their role in this. (check out this recent Catalyst Conversation to learn more about their work)
It seems that a consolidation of Cannabis oversight into a singular agency with its own power to regulate the industry is needed. There are currently 17 agencies with a role in Illinois’ industry, and the state’s Cannabis Regulatory Oversight Officer serves as a limited version of a centralized agency, without the power to enact the implementations everyone seems to know are needed.
I encourage you to tap in with CEIC, SEEN, and ULCIA to learn more about how you can help with the priorities they’ve identified are necessary to create an equitable industry in Illinois.
NEW YORK
In New York, there is a need for more transparency, which it seems the Office of Cannabis Management recognizes and is headed in that direction. I’ve said this before, and I’ll say it here. OCM has a difficult job, balancing the directives from those above it, with the needs of the stakeholders. As Tabatha Robinson, OCM’s Deputy Director for Economic Development Policy and Research, pointed out during the panel, OCM is made up of several dedicated people who go above and beyond because they believe in creating an equitable industry. As advocates, our challenge lies in balancing the above understanding while also ensuring that the government is held accountable for its promises
Shanduke McPhatter, a CAURD licensee who represented the NY CAURD Coalition on the panel, said it best when he advocated for greater transparency in the process. He reminded us that patience is not the issue for those who have served time, as they’ve learned patience the hard way already. But while being patient, there is a need for greater transparency from the state. A large part of this has to do with the major lack of transparency from the Dormitory Authority of the State of NY (DASNY), which also impacts OCM and their ability to operate properly. It seems like it’s time for Ruben McDaniels and DASNY to stop playing games, but I’m not stating anything that everyone in New York doesn’t already know.
Lastly, I appreciated Dr Adrian Adams (M4MM) and Scheril Murray Powell (JUSTUS) pointing out the importance of the industry to work together to find creative solutions. These types of discussions are a great starting point, but it’s how we collaborate on action items moving forward that will define our path forward.
MICHIGAN
In Detroit, our panel included NCIA Board Member Rebecca Colett, who has founded the Detroit Cannabis Project (DCP) as a mentorship group to support cannapreneurs on their journey. Thus far, that journey has mostly consisted of staying relevant and advocating properly while the myriad of municipal challenges have unfolded.
What stood out to me was the way in which Kim James and the City of Detroit’s Homegrown Cannabis Office have partnered with DCP, recognizing the need to support mentorship from the municipal level. As Detroit comes online, and as capital markets open back up to fund these new cannapreneurs, the participants in Detroit’s cannabis program will have a leg up on where they would’ve been without this type of holistic support.
Another interesting topic of conversation was led by Scheril Murray Powell, who provided an update on the work to support Legacy operators being conducted by ASTM and the JUSTUS Foundation. This includes advocating for a universal definition of “Legacy operator”, of which NCIA’s DEI Program is very supportive:
“An individual who: 1) Commercially for the majority of their income, or sacramentally, or ceremonially distributed cannabis; 2) Outside of the Legal Framework; 3) During the period of Prohibition; 4) For a minimum of 5 years before legalization.”
As part of the beginning of what will hopefully be a robust dialogue on this topic, NCIA Cultivation Committee member Joseph Smith pointed out the potential challenges for adopting such a standard in the state of Michigan, which had a caregiver program for a decade or so prior to legalization.
I can’t wait to get back out to Michigan to see this constantly-evolving program.
WHAT IT ALL MEANS
My biggest takeaway is that no matter how many of these types of conversations we have, we need to continue having them and to continue pushing the ball forward. Cannabis is going to take several years to stand up properly, and equitably, so dialogue between advocates, business owners, and regulators is invaluable at this stage in the game.
And the more cannabis entrepreneurs realize the importance of advocacy at this early stage, the more an equitable industry is possible.
My hope is that these panels, in the setting of the workshops, provide a forum for the right type of conversations, as well as inspiration for business owners as to how to advocate for themselves and others in a successful manner.
As an insurance professional and broker who worked with more than 70 cannabis clients, I have seen firsthand how the lack of access to traditional banking services has affected cannabis businesses. The cannabis industry has faced many hurdles since its inception, and access to traditional banking services has been one of the biggest obstacles. This has created significant challenges for cannabis businesses, forcing them to operate on a cash-only basis and creating safety concerns.
The SAFE Banking Act is a necessary step toward creating a more supportive regulatory environment for the cannabis industry. The act would provide greater transparency into financial transactions and encourage more insurance companies to enter the market. This would benefit not only the cannabis clients but also the insurance companies by providing greater coverage options.
The current situation has a significant impact on the life of a cannabis business owner/operator. Banking with a cannabis bank can be expensive, driving down profits. Cashless ATMs and payment processing platforms have costs associated with them, which also drive down profits or are pushed onto the consumer. Additionally, accepting cash increases the risk of theft, leading to the need for expensive security measures. What’s more, investing in an adequate safe is required by insurance carriers, which can also be costly and further drive down profits. Due to the cash-intensive nature of the business, insurance companies offer limited coverage on cash.
Passing the SAFE Banking Act could help solve these issues by providing cannabis businesses with greater access to banking services, which would help them manage their finances more efficiently and effectively. This would also provide greater transparency into financial transactions, making it easier for insurance companies to assess risk and provide coverage options.
Moreover, the passage of the SAFE Banking Act would help create a more supportive regulatory environment for the cannabis industry. The current lack of access to traditional banking services has created significant challenges for cannabis businesses, forcing them to operate in a largely unregulated environment. This makes it difficult for them to comply with regulations and puts them at a disadvantage compared to other industries.
The cannabis industry is still in its early stages, and it requires significant capital to operate. Without access to traditional banking services, cannabis businesses struggle to obtain loans or lines of credit, making it difficult for them to grow and expand. Passing the SAFE Banking Act would provide cannabis businesses with greater access to capital, which would help them invest in their businesses and drive growth.
Finally, passing the SAFE Banking Act would benefit insurance companies as well. By providing greater coverage options, insurance companies would be better able to serve the needs of the cannabis industry. Additionally, the act would encourage more insurance companies to enter the market, which would increase competition and drive down costs for cannabis clients.
Overall, passing the SAFE Banking Act is a necessary step toward creating a more supportive regulatory environment for the cannabis industry. It would provide cannabis businesses with greater access to banking services, help them manage their finances more efficiently and effectively, and provide them with greater access to capital. This would benefit both cannabis clients and insurance companies, and I strongly believe that policymakers should take swift action to support this growing industry.
Valerie has over 16 years of experience in the insurance industry with specialized niches in cannabis, real estate, and community associations. With experience working for companies such as McDermott Costa Insurance Brokers, AmWINS Group, Inc., Commercial Coverage Ins. Agency, and Colemont Insurance Brokers, Valerie has developed a love of helping clients navigate the world of insurance by creating an understanding of the value behind insuring their business. In addition to her professional work, Valerie serves as the CREW East Bay Chair on the Programs Committee, is a National Cannabis Bar Association member, NCIA member, and volunteers in East Bay communities with Richmond Grows Seed Lending Library to show people how to save vegetable seeds and grow their own food. In 2021, Valerie received the 2021 and 2022 CREW East Bay Connections Award and was a nominee for the Elevate 2021 Industry Impact award.
With a drive and passion for helping people, Valerie has gone back to her long-standing roots in the plant medicine industry and uses her unique lens of growing up surrounded by cultivators and sellers to validate her client’s business needs. Valerie strives to break the mold of how insurance and cannabis has partnered together to give back to the community she grew up in. With a strong insurance background and an in-depth knowledge of the cannabis industry, Valerie has been a trusted advisor for over 70 cannabis clients.
For more information on Liberty’s National Cannabis Practice Group, please reach out toValerie Taylor, Vice President (National Cannabis Practice Leader), The Liberty Company Insurance Brokers.
Member Blog: From Seed to Harvest – A Guide to Successful Cannabis Cultivation
As the cannabis market continues to experience exponential growth, cannabis business professionals are constantly seeking ways to capitalize on this booming industry.
With the market projected to expand from USD 28.266 billion in 2021 to an astounding USD 197.74 billion in 2028 at (a CAGR) of 32.04%, it’s evident that there is immense potential for success in the cannabis sector.
However, to truly thrive in this competitive landscape, it’s crucial to have a solid understanding of the cultivation process from seed to harvest. That’s why in this guide, we will walk you through the essential steps and best practices for successful cannabis cultivation.
Let’s begin!
Choosing the Right Seeds
The first step in successful cannabis cultivation is selecting the right seeds. With a variety of strains available at a seed shop, it’s important to consider your preferences and goals. Are you looking for high THC content or a strain that offers more CBD? Do you prefer a Sativa or an Indica-dominant plant?
Invest time researching and selecting the best seeds to lay a strong foundation for your cannabis cultivation journey. You can even contact the seed shop and discuss your goal and get their recommendations.
Germination
Once you have your seeds, the next step is germination. It is the initial stage of cannabis cultivation, where the seeds begin to sprout and develop into seedlings. Here, the seeds absorb water, triggering biochemical changes that activate growth.
Start by soaking the seeds in a glass of water for about 24 hours to encourage the process. Then, transfer the seeds to a moist paper towel and place them in a warm and dark environment. Within a few days, the seeds will crack open, and tiny root and shoot structures will emerge, signifying the successful initiation of the growth cycle.
Seedling Stage
The next step is to transfer them to a growing medium. Use small pots or seedling trays filled with light, airy soil mix. Make sure the soil is moist but not overly saturated. Provide your seedlings with 18-24 hours of light daily, preferably using fluorescent or LED grow lights.
During the vegetative stage, your cannabis plants will focus on growing leaves and branches. To promote healthy growth, give your plants at least 16 hours of light daily. You can use specialized grow lights or take advantage of natural sunlight if growing outdoors. Also, maintain a temperature range of 70-80°F (21-27°C) and monitor humidity levels to avoid excessive moisture.
Using nutrient-rich fertilizers with higher nitrogen content is also recommended during this stage. It supports robust vegetative growth and prepares the plants for the subsequent flowering phase. Follow the instructions on the fertilizer package for dosage and frequency.
Note: Ensure the soil is evenly moist but not waterlogged when watering. Overwatering can lead to root rot, so allow the soil to dry out slightly between waterings.
Flowering Stage
After a few weeks of vegetative growth, your cannabis plants will enter the flowering stage. To initiate flowering, you must adjust the light cycle to 12 hours of light followed by 12 hours of complete darkness. (This is also known as photoperiod lighting.)
This change in light schedule signals the plants to begin producing flowers. However, it’s crucial to maintain consistent light and dark periods to avoid stressing the plants. Also, remember that the length of the flowering stage varies depending on the strain, typically lasting 8-10 weeks.
Harvesting
The moment you’ve been waiting for has arrived—it’s time to harvest your cannabis. Look for signs that the plants are ready, such as the appearance of trichomes (tiny, crystal-like structures) on the flowers. Trichomes will change from clear to cloudy or amber, indicating the optimal time for harvesting.
Use a magnifying glass or a microscope to examine the trichomes closely. Once ready, carefully cut the branches and trim away the excess leaves. Keep in mind that harvesting too early or too late can impact the potency and overall quality of your final product. So, be patient and wait for the optimal time when the trichomes have reached their desired color and maturity.
The Bottom Line
Successful cannabis cultivation is a multifaceted process requiring attention to detail, patience, and continuous learning. By following the guidelines outlined in this guide, you can ensure a high-quality yield, positioning yourself as a leading player in the rapidly expanding cannabis industry.
Author Bio: Erika Cruz is a content writer at Outreach Monks, a leading marketing agency known for its innovative digital solutions. With her expertise in crafting compelling copy and engaging content, Erika helps clients build their brands and connect with their target audience.
Committee Blog: How Can Retailers Improve the Customer Experience?
by NCIA’s Retail Committee
Contributing Authors – Ace Castillo, Brian Anderson, Tony Trinh, Pete Longo, Nicole Rivers, John Kent, Larina Scofield, and Brian Hart
In a competitive market the customer experience is one of the biggest factors in the success of a company. This begs the question as to how to improve the customer experience? In one simple word, service. But what can retailers do to provide service to the customers? After consulting several members within the NCIA retail committee, here are a few takeaways.
Education
This applies to both the customer and the employee. While there are certainly customer-facing employees who have strong knowledge and have made a great impression on customers, a common trend is there is a lack of consistency with employee knowledge and communicating information. One can go into a retail location and ask the same question to four budtenders and get five different opinions. This is often a reflection of the lack of standardized and consistent training provided by management. There are certainly challenges regarding the high turnover of employees in the cannabis industry however management needs to find solutions to ensure every employee is trained in the same way so there is a standard of cannabis knowledge. Once that standard is in place, customer-facing employees can provide consistent and well-informed information to the customer. Examples include communicating the properties of the plant like that of the different cannabinoids and terpenes, their effects, and which cannabis products can maximize the desired effect of the customer.
Engagement
Engaging customers and the community improves the overall customer experience. Often when applying for a license a retail location has a community engagement plan that looks promising but doesn’t get executed. It is understandable there are a litany of tasks needed to be performed but if a retail location wants to improve the customer experience, engage the customer and community. Host events where a retail location can get to know the customer and community and provide value in these events through education. Engage community leaders and people who have concerns about a retail location in their area. This does not mean people will change their opinions however if they feel they are being listened to and have respectful communication then the overall reputation of a business will be improved upon. A good business reputation will improve interactions with customers. Also, have retail employees engage customers, this goes back to sharing information about the plants and products.
Process Development
Evaluate and improve the customer experience. If one trains employees and engages customers, leverage these experiences to improve the process. One conversation can provide valuable insight as to how to improve service. Another conversation may provide insight as to what products customers find value in or importantly detract value. It could be that too many customers find the explanations provided by trained retail staff are too detailed or too vague. If that is the case, make the appropriate changes to improve the process. Customers will notice when changes are made for their benefit and this strengthens their desire to return to the retail location.
Data Analytics
Observe quantifiable patterns and this doesn’t need to be over complicated. What are customer flow-through rates? Is there a time of day where there is an influx of customers and could there be a correlation as to what they are buying? Is there a time of day that many customers come in for a specific item and through this observation can changes be made to make the process easier and the overall experience better? It could be that customers at a specific location prefer a specific brand or type of product and by having the right levels of inventory a retail location won’t run out of products and disappoint the customer. Conversely if there are products that are not selling and could potentially serve as an unwanted distraction to customers, it could be possible the customer experience would be improved upon by removing the product. Reviewing data about customers does not need to be intrusive and can be viewed at a high level.
Company Values
Does a retailer have a list of values, are they authentic, and is it followed? Keeping to company values provides direction and commonality between the company and the customer. Is there a retailer that genuinely cares about kindness and is it practiced throughout the company? If the owner of the company treats a manager with kindness and the manager treats customer-facing employees with kindness, there is a greater likelihood the customer-facing employee will treat the customer with kindness. Whatever the values of the company are, they need to be announced and if practiced, customers will see it in everyday interactions and that can make the difference from good to great.
As one may notice, the aforementioned tips are not revolutionary or the first of their kind. Instead, these are ideas that can be practiced daily and make small but incremental improvements. We encourage you to try these tips out and through consistency over time, these incremental improvements will compound and improve the customer experience.
Brian Hart is a consultant and entrepreneur in the cannabis industry and has both academic and practical experience within the cannabis industry. Having written his master thesis using a neoclassical economics model to conduct an industrial analysis of the Colorado Cannabis industry, Brian grew and sold cannabis and has consulted on the industry for several years nationally as well as internationally.
Member Blog: 6 Key Strategies to Succeed in Cannabis Retail
The cannabis industry has seen significant growth in North America since the legalization of recreational cannabis in Canada in 2017. Currently, medical cannabis is legal in 37 US states, while 21 states allow its recreational use. As the cannabis retail industry matures, there are opportunities galore for entrepreneurs, but not every cannabis business will thrive. Opening a dispensary can be a profitable venture, but many businesses also fail because they don’t necessarily follow the secrets to success outlined in Cova’s whitepaper on why some cannabis retailers fail. To grow and flourish in this highly competitive industry, one must follow the following six key strategies used by successful cannabis retailers.
Use Cannabis Retail Data
Successful cannabis retailers leverage data analytics to inform their business decisions. They track inventory metrics such as top-selling categories and products, profit per product, inventory aging, inventory turnover, and shrinkage. These metrics help them buy and stock the right merchandise mix, optimize operations, and reduce capital locked in cannabis inventory.
With AI-powered data analytics, cannabis retailers can collate customer data, including product preferences, eCommerce search history, shopping patterns, and spending habits, and design more successful marketing and engagement strategies to increase sales.
Maintain Strong Relationships
Building good relationships with the community and customers is extremely crucial for success. This includes educating the community about safeguards in place at your dispensary and steps taken to keep cannabis out of children’s hands. Your budtenders must listen to customers and communicate effectively to elevate the customer experience and build brand loyalty.
Employee loyalty is equally important, and they must be treated well. Employee retention promotes deeper product knowledge and stronger customer relationships. Profit-sharing plans at your dispensary can also create a sense of ownership, which encourages everyone to invest more heart and soul into the business.
Manage Finances Efficiently
Effective financial management is essential for the success of any cannabis retail business. This includes budgeting for unexpected circumstances and avoiding common pitfalls, such as failing to research market conditions or regulatory changes. Successful retailers anticipate market conditions and adapt strategically to any industry changes rather than following others or discounting products heavily.
Modern technology can help you make wise business and financial decisions. You can monitor your costs, sales, and profit trends at a glance with the best dispensary management software. If you need a complete financial outlook, you can integrate your cannabis POS with a financial tool such as QuickBooks online or an ERP system.
Optimize Dispensary Operations
Operational efficiency is critical in the cannabis retail industry. Successful retailers invest in advanced technology to simplify operational processes, maintain compliance with regulations, and avoid common failures, such as internet outages, power interruptions, and system crashes.
A POS system with offline mode can prevent sales from stopping when the internet is down and sync inventory information when it comes back online. Automation in seed-to-sale tracking eliminates human error and catches compliance problems that can lead to license forfeiture. Invest in sophisticated technology to coordinate order fulfillment and inventory while maintaining a consistent customer experience across all your sales channels.
Curate Great Customer Experiences
Providing excellent customer experiences is vital to the success of cannabis retail businesses. Successful retailers educate their customers about the products and listen to their needs. They also ensure the safety of customers, especially in high-crime areas, by implementing appropriate security measures.
As consumer behavior evolves, dispensaries are increasingly providing their customers the convenience of buying cannabis online. Also, offering cashless dispensary payments will increase your overall revenue and profits, as most consumers have become used to contactless payments and don’t necessarily carry cash on them these days.
Have a Strong Brand Vision
Having a clear business plan and brand vision is essential for the success of your cannabis retail business. This includes avoiding common pitfalls and adapting to industry or regulatory changes. Successful retailers navigate market fluctuations and master dispensary operations to achieve their goals and support their local community.
In conclusion, the cannabis retail industry offers significant opportunities for entrepreneurs willing to navigate the challenges and risks of strict regulations and compliance requirements. Download Cova’s e-book, “Why Some Cannabis Retailers Fail and The Secrets of Those Who Succeed”, to learn more about applying the principles and best retail practices to grow your dispensary business.
Gary Cohen is the CEO of Cova, the most trusted cannabis POS brand in North America. Having met with nearly 2000 dispensary operators from coast to coast, he leverages expert knowledge to offer cannabis retailers the support they need to get a license, pass inspection, launch a store, assess tech tools, and scale operations. Gary leads seminars on retail technology, compliance, business operations, and cannabis banking laws at the industry’s largest events including NCIA, CannaCon, and MJBizCon.
NCIA Members United in D.C. at Lobby Days! Join Us Next Year!
Photo By CannabisCamera.com
by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
Essentially every industry and association with a presence in Washington, D.C. hosts their own lobby days, advocacy days, or fly-ins – whatever you want to call them – where their members come to the Capitol to lobby Congress on their respective industry and legislative issues.
Thanks to NCIA, the cannabis industry is no different. In fact, just a few weeks ago, more than 100 members of the National Cannabis Industry Association (NCIA) descended upon Capitol Hill for NCIA’s 11th Annual Cannabis Industry Association Lobby Days. Lobby Days are an opportunity to advocate for our industry and tell Capitol Hill staff about the real, lived, on-the-ground experiences that cannabis professionals experience daily.
Planning 150+ meetings over the course of two days with 100+ attendees and 21 teams is about as easy as it sounds. That’s not to mention the multiple events, a congressional briefing, and training sessions! But that’s exactly what the NCIA team does for our members every spring. At lobby days, NCIA members gather to amplify our message and make their voices heard in the halls of Congress, while simultaneously forging strong relationships with the most influential leaders in the cannabis industry.
With more than 80 freshman members in Congress this session and multiple bills that have yet to be reintroduced, we wanted to focus our efforts on educating new members about the issues the cannabis industry – and the people that comprise it – face regularly. Many of these members and their staff have never heard of 280E, haven’t had to vote on SAFE Banking (yet!), and are on the fence about legalization, while others have never even talked with a cannabis professional. As a result, it was incredibly important to us that we reach out to those offices and provide them with the resources they need to best inform their position on the various policy areas that cannabis touches.
After arriving in D.C., attendees were greeted with a tropical vibe at our welcome reception at Tiki TnT & Potomac Distilling Company. This gave teams an opportunity to meet up ahead of meetings and mingle with other professionals who made the trip. The next day, we all gathered bright and (very) early for our mandatory breakfast training ahead of shuttling to the Capitol grounds for our group photo. At the training, attendees were able to grab a quick bite to eat, drink some coffee, get together with their teams, and get the final “do’s and don’ts” for their meetings. After our training and group photo, our teams split off for their meetings and reconvened at the end of the day for our stunning closing reception. There, attendees debriefed after an incredibly productive day and unwound with beautiful views, some drinks, and a dreamy jazz band. On the final day, attendees began their morning with a Senate briefing focused on SAFE Banking, where they rubbed elbows with congressional staff. Post-briefing, teams broke off for their final meetings, and just like that, lobby days 2023 was a wrap!
It’s no secret that the cannabis industry is undergoing significant struggles and we’re feeling that squeeze in Washington, D.C. Many companies have downsized and laid off government relations professionals, while others continue to just hope that Congress will pass reform magically. The truth is that lobbying, advocating, and being active in the legislative process are critical to moving our industry forward. Stay tuned for other citizen lobbying opportunities, and take it to the next level by sponsoring NCIA’s 12th Annual Cannabis Industry Lobby Days in 2024!
Member Blog: Quality Over Quantity – Why Stronger is Not Always Better
by Andrew Kaye, Sweet Leaf Madison Capital
Over the last 15 years, cannabis has seemingly catapulted away from the days of schwag and dirt weed. Today, we are seeing THC levels well beyond percentages that were displayed in dispensaries 10 years ago when cannabis first became legal in certain states. Advancements in technology, a better understanding of growing cannabis, and strain cloning has allowed for growers and chemists alike to fine-tune the plant to offer more bang for our buck – but not everyone needs to blast off every time they light up, right?
Right.
Recently, there has been a shift in the way we approach cannabis use, especially for medicinal purposes – proper dosing is everything. These stronger strains that have been Frankensteined together to ensure a potent one-hit high making it nearly impossible to provide a controlled dose for someone just looking for a chill evening or relief from their chronic pain. Granted, these strains have their place among seasoned tokers, but for others who are novice cannabis enthusiasts or patients looking for a treatment, stronger does not necessarily mean better. More intention should be put toward partaking, and it is as simple as asking yourself a few questions: How do I want to feel? What do I want to do? Where am I going? What hurts? Who is part of the experience?
Realistically, when was the last time you went to the bar to enjoy a casual night out with friends and started throwing back tequila shots until your knees buckled?
Hopefully, you are not recounting a night where that happened, but if so, you can probably guarantee that you would not put yourself in that situation again, at least not right away. Be honest with yourself, answer the questions above and chat with budtenders to find the best solution for you.
Knowledge is Your Best Friend
For a lot of people entering dispensaries for the first time, they see these high THC numbers and equate it to a better high, but the reality is that cannabis potency can be attributed to more than the THC percentage. Terpenes, differing cannabinoids and other compounds found within the plant also play a major role in how strong the strain is and what effect it has on your body and mind. Think of the subtlety of wine versus the kick of jello shots.
This is why it is important to talk with budtenders to better understand which strain is going to work best for what you are seeking. The problem today is that dispensaries are experiencing high turnover rates, as 55% of budtenders who held jobs over the last year left within 12 months of starting, according to a Headset market report. Losing seasoned employees not only impacts the store itself, but customer service tends to take a hit (no, not that type of hit). Inexperienced budtenders might be rushed to the counter without proper training, leading to misguided direction and customers walking away with flower or edibles that will send them to space, or to a space that they did not intend to go. Again, there is nothing wrong with having highly potent strains, but making and distributing them comes with a responsibility toward customer and patient care. As more states migrate to adult use cannabis, many are abandoning the medical dispensary model and focusing on high-profit strains, not curative or palliative care. Dispensaries need to ensure they are properly onboarding and training new employees to provide the best service possible.
The Future of Cannabis
As science improves and technology becomes more refined, cannabis potency is going to continue to go up, but it also means that mid- and low-potency strains will get better. If you look at the craft beer industry, the days of high abv IPAs and stouts are slowly fading and more focus is being put on taste and balance.
Since 2014, there has been an almost “gold rush” mentality where growers were fine-tuning their product at a high rate to offer a better punch than their competitors, but in 2023, after nearly 10 years of legal cannabis, customers are looking to refine their tastes and highs.
For most, the quality of the strain is going to be far more beneficial than the quantity of THC, but at the end of the day it is all preference. So do yourself a favor the next time your supply is low and chat with budtenders – lean on their expertise and compare with your own research. Try different strains along the potency spectrum and really consider taste. No one consumer is the same; make your experience yours. The higher the price is not always the nicer the nice.
Andrew Kaye has been involved in all aspects of the financial services industry, as a fund portfolio investment manager, investment banker, family office investor and attorney. He has worked with start-ups on their first raise through global enterprises undertaking billion-dollar stock offerings, and has significant investment experience in the cannabis industry. Currently, Andrew works as Sweet Leaf Madison Capital’s Chief Commercial Officer. Lending his expertise toward the creation of middle market financing solutions for real estate and equipment financing needs in the cannabis space.”
“Sweet Leaf Madison Capital provides non-dilutive, asset-based lending solutions to the underserved middle market of the cannabis industry by originating real estate loans, equipment financing, securitized term loans, and more for entrepreneurs and businesses. The company is based in Denver, Colorado and has offices in New York City and West Palm Beach, Florida. To learn more or complete a loan application, visit Sweet Leaf Madison Capital online, or continue the conversation on LinkedIn, Twitter and Facebook.”
Andrew J. Kaye is Chief Commercial Officer of Sweet Leaf Madison Capital. He can be reached at akaye@sweetleafmadison.com.
Member Blog: Think Your Disposable Gloves are Clean? Think Again.
For those working in the cannabis industry, disposable gloves provide a protective barrier when working with products during the cultivation, harvesting, and processing stages. The benefit to wearers is essentially twofold. While “food-safe” rated gloves can greatly reduce the threat of cross-contamination between the wearer and products, they also help keep employees safe from dermal threats such as THC exposure, chemicals, fertilizers, and a wide variety of pesticides, especially if utilized during the growing season. In one well-documented incident, the culprit for a costly product recall turned out to be cross-contamination from single-use gloves, when O-Phenylphenol (OPP) – a cancer-causing chemical compound – was discovered in a seemingly pesticide-free cannabis operation.
If cannabis employees are under the impression that all disposable gloves are clean, intact, and contaminant-free right out of the box, you may want to reevaluate your perception.
Recent Study Identifies Glove Contaminants
The recent findings from a multi-year study on the potential for glove contamination revealed some alarming results about new and unused gloves. 2,800 gloves from 26 brands were subjected to four separate metagenomic testing sequences to determine the presence of contamination on both interior and exterior surfaces. Of all the samples analyzed and tested, 50% of the gloves contained traces of human fecal matter. In addition, the testing also detected other harmful pathogens which can lead to cross-contamination in cannabis supply chains. These included various yeast species, and a wide range of distinct genera of fungi – including Penicillium, Cladosporium, and Aspergillus.
How Can This Happen?
You may be wondering how it’s possible for unused disposable gloves to be contaminated right out of the box. Because the contamination occurs during manufacturing, before they are packaged in their box – and there are two root causes that contribute to the potential threat. First, not every glove supplier manufactures their products in a clean and hygienic environment. Putrid water sources, unsafe raw materials, and inadequate processes for quality control plague many of the factories where single-use gloves are produced. Compounding this problem is the lax oversight and enforcement of the FDA’s current regulatory policies, which actually don’t require imported food-compliant gloves to be pathogen-free or tested for performance such as rips, tears, and holes.
All Glove Suppliers are Not Equal
Before you adopt a defeated mindset about the safety and quality of gloves you wear, there are suppliers and distributors that go the extra mile to make sure their product lines are free from harmful contaminants. Glove suppliers that adhere to the highest industry standards for performance, quality, and safety are known for self-policing their manufacturing processes, ensuring that products are produced with proper raw materials, absent of unsafe chemicals, toxins, or microbial contaminants. They also conduct routine audits to test the effectiveness of their manufacturing process, and some have even adopted product traceability to ensure a contamination-free supply chain from initial production to final shipping and delivery.
Buying the cheapest gloves may save you a little on the front end, but also come with elevated contamination risk. In the long-run, premium quality gloves are much more cost-competitive than you think. And you’ll have peace of mind in knowing that your required PPE will probably never be the cause of a costly product recall that can be damaging to your organization’s profitability and reputation.
Justine Charneau is the head of cannabis industry sales at Eagle Protect, a disposable glove supplier dedicated to the responsible sourcing of quality products that ensure customer safety and impact reduction, ultimately mitigating customers’ risk. Eagle Protect is the only global PPE supplier that is a Certified B Corporation, a designation that a business has met the highest standards of verified glove safety and performance, accountability, and transparency. She can be reached at justine@eagleprotect.com
Member Blog: What Does 280E Mean for the Cannabis Insurance Landscape?
The legal cannabis industry is growing at an unprecedented rate, with more and more states legalizing its use for medical and recreational purposes. However, despite this progress, cannabis businesses face a major obstacle: Section 280E of the Internal Revenue Code. This provision is a significant burden on cannabis businesses, limiting their ability to take deductions for basic expenses like rent, utilities, and employee salaries. The result is a higher tax burden and reduced profitability, putting cannabis businesses at a disadvantage compared to other industries.
Section 280E was introduced in the 1980s as a way to prevent drug dealers from taking business deductions on their tax returns. At the time, the provision was aimed primarily at illegal drug dealers. However, when it comes to cannabis businesses, Section 280E has become a significant hurdle. The problem is that while cannabis is legal for medical or recreational use in many states, it remains a Schedule I drug at the federal level. This means that cannabis businesses are still subject to the same limitations as illegal drug dealers when it comes to tax deductions.
The impact of Section 280E on cannabis businesses is significant. Without the ability to deduct basic expenses, cannabis businesses face higher tax burdens and reduced profitability. This makes it difficult for them to reinvest in their operations and grow their businesses. In addition, the provision makes it challenging for cannabis businesses to obtain financing, as many traditional lenders are hesitant to work with them due to the regulatory environment and the industry’s status as a Schedule I drug.
The insurance industry plays a vital role in supporting the cannabis industry. With the help of insurance professionals, cannabis businesses can protect their assets, mitigate risks, and navigate the complex regulatory environment. However, insurance providers also face challenges in the cannabis industry due to the regulatory environment and the industry’s status as a Schedule I drug. For example, some insurance companies are hesitant to provide coverage to cannabis businesses due to concerns about federal prosecution.
Despite these challenges, there are insurance providers that specialize in the cannabis industry and offer tailored solutions to cannabis businesses. By working with these providers, cannabis businesses can protect their assets and minimize risks, while also demonstrating to potential investors and lenders that they are taking the necessary steps to manage their risks.
In addition to the insurance industry, there are other steps that policymakers can take to support the cannabis industry. Revising Section 280E is one of the most critical steps that can be taken. By allowing cannabis businesses to take more deductions on their tax returns, policymakers can help level the playing field and create a more equitable regulatory environment for the industry. This would enable cannabis businesses to reinvest in their operations, grow their businesses, and create jobs.
One could say that 280E could be equally or more importantly about de-scheduling cannabis than about changing a tax code. This a vital step that policymakers can take to remove cannabis from the list of Schedule I drugs. The current classification of cannabis as a Schedule I drug is outdated and based on outdated stereotypes. This is also contributing to a massive roadblock with the potential to destroy many businesses in the legal market, which only helps the illicit market thrive. Removing it from the list of Schedule I drugs would enable researchers to study cannabis more effectively and provide a clearer understanding of its medical benefits and potential risks. It would also allow cannabis businesses to operate more freely and obtain financing from traditional lenders.
Creating a more supportive regulatory environment for the cannabis industry is critical to its success.
With the help of insurance professionals, tailored solutions, and supportive policymakers, the cannabis industry can continue to grow and contribute to the economy. Revising Section 280E and removing cannabis from the list of Schedule I drugs are essential steps that can be taken to support this critical industry.
Valerie has over 16 years of experience in the insurance industry with specialized niches in cannabis, real estate, and community associations. With experience working for companies such as McDermott Costa Insurance Brokers, AmWINS Group, Inc., Commercial Coverage Ins. Agency, and Colemont Insurance Brokers, Valerie has developed a love of helping clients navigate the world of insurance by creating an understanding of the value behind insuring their business. In addition to her professional work, Valerie serves as the CREW East Bay Chair on the Programs Committee, is a National Cannabis Bar Association member, NCIA member, and volunteers in East Bay communities with Richmond Grows Seed Lending Library to show people how to save vegetable seeds and grow their own food. In 2021, Valerie received the 2021 and 2022 CREW East Bay Connections Award and was a nominee for the Elevate 2021 Industry Impact award.
With a drive and passion for helping people, Valerie has gone back to her long-standing roots in the plant medicine industry and uses her unique lens of growing up surrounded by cultivators and sellers to validate her client’s business needs. Valerie strives to break the mold of how insurance and cannabis has partnered together to give back to the community she grew up in. With a strong insurance background and an in-depth knowledge of the cannabis industry, Valerie has been a trusted advisor for over 70 cannabis clients.
For more information on Liberty’s National Cannabis Practice Group, please reach out toValerie Taylor, Vice President (National Cannabis Practice Leader), The Liberty Company Insurance Brokers.
Member Blog: From Hazy to Clear – Incorporating Data in your Cannabis Business
In today’s hyper-competitive cannabis landscape, a data-driven culture can make all the difference. Those who leverage data can confidently estimate the total addressable market, evaluate risk and opportunity, track performance, and execute against opportunities. From day one, cannabis businesses should strive to incorporate data into operations to make more informed decisions, problem-solve effectively, and understand the cannabis consumer and what drives their purchase decisions.
Leveraging Experience vs. Data
Some may look to experience and boots-on-the-ground exposure as justification for not investing in data, which brings up an important question: what’s more important – experience or data? We say both. Having either without the other puts your business at a great disadvantage.
Data provides a concrete base to view and understand a situation without the bias of anecdotes or squeaky wheels. However, data can also be interpreted in several ways for any given context and can take you off course if you aren’t looking at the “right thing”. Experience and instinct overlayed with that data is the key to success.
Let’s unpack some key questions that data can support and where to find data.
Use Cases for Data in the Cannabis Industry
We would be hard-pressed to find many examples of business applications for which you can’t find value in leveraging data. The following are some of the common business questions that data can and should support:
Fundraising – What is the size of my total addressable market (TAM) and opportunity to capture market share?
Pricing Optimization – How should I price given the existing competitive and economic landscape?
Assortment & Purchasing Planning – What products should I make or carry?
Revenue Forecasting & KPI Tracking – What are my revenue goals and how can I track milestones and growth?
Consumer Insights – Who is my target consumer and how do they make their product decisions?
Sales Operations – How can my sales team be more effective?
Marketing Metrics – How can I maximize the return on investment (ROI) of my marketing spend?
Budtender performance – How can I track and incentivize my top-performing budtenders?
Increase grow yields – How can I increase the efficiency and effectiveness of my grow operation?
If you’re asking yourself a question about how to optimize an area of your business, there is almost certainly data available to guide confident decision-making.
Types of Cannabis Data
So you may be asking, how do I get my hands on data?The good news is that data is available for every budget (including no budget) and at every stage of business development. The challenge is identifying and extracting the right data to support your goals and pulling out the insights in a way that makes sense to your target audience – whether that be your customers, partners, investors, or your own team. In other words, the value is not just in the data itself, but what you can do with it.
State Provided Data
Informal Observational Data
Market Retail Sales Data
Point of Sale Data
Consumer Insights Data
Wholesale Data
Market Forecast Data
Availability and Pricing Data
Marketing Data
Context is everything – framing up the data
When citing a data point, would you consider 50% a lot or a little? It depends on the context. A data point generally represents an unanalyzed figure, it only means so much as an independent number. However, once you add context, you may unpack a compelling story.
For example, if evaluating a cannabis product category market share, consider some of the following: What size is the total market? What other categories have more or less share? Is the category growing or shrinking? What time frame is being referenced?
Then, diving deeper into more granular data affords you visibility into WHY. For example, why something might be shrinking so you can address the root cause issue, or why an opportunity is worth investing in. This insight that is derived from the data is where you are likely to find the greatest ROI from data.
By leveraging data and insights, businesses can optimize their operations, identify growth opportunities, and improve customer satisfaction. In the fast-paced and constantly-challenged cannabis industry, companies that rely on data to drive decision-making are better equipped to succeed, adapt to changing market conditions, and remain ahead of the competition.
Headquartered in Louisville, Colorado, BDSA helps businesses improve revenues, reduce innovation risk and prioritize market expansion with accurate and actionable cannabis market data, consumer research, and advisory services. The company provides a holistic understanding of the cannabis market by generating insights from point-of-sale data, market data, consumer research, and market forecasts. To learn more, please visit bdsa.com.
Committee Blog: Hop Latent Viroid (HLV) – Overview of Pathogen Biology, Spread, Control, and Testing
by Sarah Taylor-Laine (NCIA Education Committee, NCIA Cultivation Committee)
Hop Latent Viroid (HLV/HpLV), sometimes referred to as “dudding” or “stunting”, is one of the most pressing biological threats facing the cannabisindustryworldwide. In the United States, HLV was first detected in California in 2017. Subsequent research by Dark Heart Nursery indicated that 90% of Californian facilities tested at the time were positive for the pathogen. The Dark Heart Nursery research team estimated that an HLV epidemic could result in up to US$4 billion in losses to the cannabis industry annually. To add insult to injury, HLV-infected cannabis may be linked to cannabis hyperemesissyndrome (CHS), which affects both adults and children.
Viroids are subviral pathogenic RNA molecules which replicate within host plants and are only approximately 1/50th the size of the smallest viruses. Specifically, HLV is a circular RNA molecule of approximately 256 nucleotides in length, which can assume a rod-shaped secondary structure. In hops, HLV has been shown to interact with other viruses and alter the gene expression patterns of host plants. HLV has been found to not only infect hops and cannabis, but also Dianthus deltoides, Chenopodiastrum murale, Dysphania pseudomultiflora, cowpea (Vigna unguiculata), common bean (Phaseolus vulgaris), and stinging nettle (Urtica dioica). Notably, by subjecting hop plants to heat stress, researchers have been able to induce “thermomutant” HLV variants which could then infect both tomato (Solanum lycopersicum) and Nicotiana benthamiana, opening up the possibility that HLV could spread to new plant species under climate change-induced warming scenarios.
HLV often does not produce obvious symptoms in hops, and where they do occur there may be a long latency period, making control difficult. In hops, HLV is often detected early in the season at the plant base, where it gradually spreads up the plant and can be detected in all aerial tissues by mid-season during the flowering period. In cannabis, HLV causes brittle stems, a horizontal growth habit, and the destruction of flowers and trichomes. In both hops and cannabis, HLV may cause pathology in host plants through RNA interference (RNAi). HLV infection is reported to reduce THC content by 50-70%, which is not surprising as glandular trichomes are the source of THC in cannabis. In hops, HLV infection has been shown to reducethecontentof terpenes and other secondary metabolites in susceptible varieties. It is currently unknown whether HLV infection decreases the terpene content in cannabis, but it is very likely.
In hops, HLV is not readily transferred byseeds, but may be transferred in uninucleate pollen. However, activating pollen nuclease HBN1 was shown to eliminate HLV in mature pollen. “Real world” transmission of HLV appears to primarily occur through the use of contaminatedcutting tools, the use of infected plant materials, or from plant-to-plant. However, as an obligate pathogen, HLV requires living host tissue in order to survive and propagate. HLV has been confirmed to be transmitted between hop plants by potato aphid (Macrosiphum euphorbiae), green peach aphid (Myzus persicae), and hop aphid (Phorodonhumuli), and may also be transferred by other herbivorous insects. Planting cannabis on sites previously planted with infected host plants is likely to be a source of infection, although this has not been experimentally verified.
In hops, chillingplants at 2-4 °C (approximately 35-40 °F) for 8-21 months prior to harvesting meristem tips for propagation has been shown to reduce or eliminate the spread of HLV, although the effect may be variety-specific. In addition, subjecting hop mericlones to heat treatment cycles (25-35 °C/77-95 °F for two weeks) has been shown to reduce HLV incidence by 70-90%. In terms of waste management, anaerobic fermentation at 70 °C (158 °F) causes HLV degradation, although standard ensiling does not appear to be effective. As with most viral and viroid diseases, there is currently no cure available to disinfect mature host plants. However, researchers are currently studying whether RNAi may have utility in cannabis crop protection against viral and viroid infections. Therefore, it is currently recommended to test all stock plants to confirm that they are pathogen free and to destroy all infected materials.
Plant materials can be tested for HLV infection using several molecular techniques, including DNA barcoding, RNA sequencing (RNA-seq), recombinase polymerase amplification (RPA), quantitative real-time polymerase chain reaction (qRT-PCR), reverse transcription PCR (RT-PCR), dot-blot hybridization, tissue print hybridization, in situ hybridization, and enzyme-linked immunosorbent assay (ELISA).
It is unknown how many, and which, lessons learned in hops will be transferable to cannabis. Both susceptibility and control of HLV in cannabis is likely to be variety-specific. To enable the breeding of HLV-resistant cannabis varieties, future research should focus on characterizing the molecular mechanism underlying HLV pathogenicity and host susceptibility. However, the situation remains that HLV is likely endemic in many cannabis growing regions and cultivators should focus on targeted biosanitation efforts to thwart HLV infection in their crops. These efforts should include testing all propagation materials for infection, destroying infected materials, sanitizing cutting tools and work surfaces, and limiting herbivory by sap-sucking insects such as aphids.
Sarah Taylor-Laine is a plant science polymath. Sarah has taught and developed college-level courses related to general biology, plant biology, and cannabis sciences at several institutions, most recently at Beal University. She has also worked across many industries including agriculture, horticulture, and arboriculture, performing diverse work in research, quality control, product development, regulatory affairs, scientific communication, and field-based consulting.
It Takes A Village: NCIA’s Equity Workshop Tour is Developing an Ecosystem
by Mike Lomuto, NCIA’s DEI Manager
The depth and cohesiveness of our networks are what will carry us through to the other side of cannabis prohibition, positioned for ultimate success.
When I started my transition from the legacy space into regulated cannabis about a decade ago, I did so in the silo of the Bay Area. After failing to make that transition successfully, I took a step back and recognized that my network wasn’t what it needed to be in order for me to build the type of long-lasting business I dreamt of.
In order to turn the dream of generational wealth into an actionable plan, I needed to expand my network. That’s when I started getting involved with NCIA. I saw access to a national network as a priceless resource on this journey. So I set out to not only access the network myself but I was also provided the opportunity to build out the DEI Program so that we could create a structure that would allow everyone to plug in.
Like any other network, not everyone is for everyone. But my legacy days taught me all I needed to navigate the network and find the people who were real, and who actually care about the industry’s potential to create a new paradigm, distinct from the normal corporate, colonial systems we see rampant in other industries.
But creating a new paradigm isn’t easy. It takes a village. And then some.
And that’s why I believe the Equity Workshop Tour is so important. It’s an opportunity for us to continue to grow our networks, and to do so with intention in a structured and curated environment, designed to facilitate and accelerate network development, so that real can find real, and folks can not only get the info and insights they need to succeed but make those valuable connections.
The Spring 2023 Tour is four stops – Chicago, Detroit, Jersey City, and Brooklyn. But this is just the beginning. We’re planning something more expansive for our Fall and Winter tours. And we also have some virtual events in the works in between, so that folks who attend the workshops can continue to build together, as well as with fellow attendees from the other workshops across the country.
Partner Organizations Who Are With Us for the Long Haul
You’ll notice that we have several organizational partners signed on for the tour. This isn’t just some slapped-together list. These partners are all organizations that we’ve been building with for some time now and intend to do so for a long time coming.
In Chicago, some of these conversations go back several years to the rollout of adult use. We hosted a Catalyst Conversation in February with Cannabis Equity Illinois Coalition on the power of Community Benefit Agreements. We’ve intersected with SEEN countless times. The United Latino Cannabis Industry Alliance is a new organization, but one whose founders we’ve been building relationships with for years.
And in Detroit, we have to show some love to the Detroit Cannabis Project, as they were also an integral part of our very first Equity Workshop at our Cannabis Business Summit in Detroit in September 2021.
NCIA proudly represents Main Street Cannabis, and this Spring Tour consists of cannabusinesses that reflect that.
Several of our sponsors are represented in NCIA’s committee structure. Meaning they have been volunteering their time, experience, and insights to the movement in more ways than one already. So much of my success in building the DEI Program comes from my regularly leaning into support from our committees.
Grow America Builders and Etain both came on as gold sponsors, and both have been contributing to our committee work for some time now.
I’m also proud to say that Dao Mastery (the coaching & consulting company I co-founded) is the official platinum sponsor for the tour.
All of these companies understand the importance of DEI in cannabis as an integral part of what we’re building toward in this industry in the first place. It’s not an afterthought, but rather something that informs the decisions we make.
It All Culminates In D.C.
This Spring Equity Workshop Tour has also been designed to provide me and our DEI Delegation with lots of insight and fuel as we head to Washington, D.C. for NCIA’s 11th Annual Cannabis Industry Lobby Days, May 16-18. We’ll be bringing with us the stories and the collective power of everyone we workshop with over the coming days. In fact, two of our DEI Delegates, Osbert Orduna and Adrian Adams, have been an integral part of planning this round of the Equity Workshop Tour. Not to mention the fact that two of our other DEI Delegates, Raina Jackson and Anthony Jenkins, were a part of planning the original round of workshops back in 2021.
I hope to see folks while I’m out here on the road this month. This is just the next step in the building of our ecosystem, and it’s an important one.
Anyone who qualifies for Social Equity is eligible to attend these FREE workshops. And if you don’t qualify for Social Equity, but you believe in what it means and stands for, we’d like to connect with you too, so don’t be shy.
by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
Over the last few weeks, a number of cannabis bills were introduced in Congress: the long-anticipated SAFE Banking Act and the CLAIM Act were reintroduced in both chambers, while over in the House, the HOPE Act and 280E legislation dropped. Keep reading to find out more about these bills and the chances of them moving forward:
Finally… SAFE Banking
After the SAFE Banking Act failed to pass into law last session, advocates have been waiting with bated breath for the legislation’s reintroduction – with a particular interest in what changes may (or may not have) been made.
In the Senate, the bill is being led again by Sen. Jeff Merkley (D-OR) and Sen. Steve Daines (R-MT), while the House version is being spearheaded by Rep. Earl Blumenauer (D-OR) and Rep. Dave Joyce (R-OH) – both of whom are chairs of the Congressional Cannabis Caucus.
While the bill does not contain wide-ranging revisions, there were some changes. These changes include adding language to explicitly apply the bill’s protections to community development financial institutions (CDFIs) and minority depository institutions (MDIs), as well as ensuring that workers and operators in the cannabis industry are able to obtain federally backed mortgage loans. In response to concerns raised by some conservatives, this version also includes changes and clarifications intended to ensure that federal law enforcement agencies are able to fully enforce anti-money laundering statutes against unlawful operators.
NCIA is optimistic that the legislation will receive either a hearing or markup in the coming weeks and looks forward to this bill finally passing the Senate someday soon!
HOPE Act
Also recently reintroduced was the Harnessing Opportunity by Pursuing Expungement (HOPE) Act. First introduced last session, the bill was just dropped by Rep. Alexandria Ocasio-Cortez (D-NY) and Rep. Dave Joyce (R-OH).
This bipartisan bill aims to help states with expunging cannabis offenses by reducing the financial and administrative burden of such efforts through federal grants. The overwhelming majority of cannabis-related charges are handled by state and local law enforcement and despite the fact that expungement programs for cannabis-related offenses have recently advanced in states and cities around the country, many criminal record-keeping systems are not ready for or able to support these efforts.
The HOPE Act would address these complications by creating a new grant program under the U.S. Department of Justice, which would be authorized to make grants to states and local governments to reduce the financial and administrative burden of expunging convictions for cannabis offenses that are available to individuals who have been convicted of such offenses under the laws of the State.
CLAIM Act
Yet another bicameral, bipartisan piece of legislation was recently reintroduced: the Clarifying Laws Around Insurance of Marijuana (CLAIM) Act. Introduced in the House by Reps. Nydia Velazquez (D-NY) and Warren Davidson (R-OH) and in the Senate by Sens. Bob Menendez (D-NJ) and Rand Paul (R-KY), the legislation would protect insurers, brokers, and agents from being penalized by federal regulators for providing insurance services to state-licensed marijuana companies.
Assuming that the SAFE Banking Act moves through “regular order” as expected, I would predict that many of the protections in the CLAIM Act get attached to SAFE. This is the third Congress that the CLAIM Act has been introduced.
Small Business Tax Equity Act
Everyone involved in the cannabis industry has heard of 280E, but many people were surprised to learn that legislation addressing the punitive measure was not introduced during the last congressional session.
That changed a few weeks ago when Congressman Earl Blumenauer (D-OR), along with four of his colleagues introduced H.R. 2643: the Small Business Tax Equity Act, which exempts a trade or business that conducts cannabis sales in compliance with state law from IRC Section 280E.
Abolishing 280E is one of NCIA’s main priorities, but unfortunately, the chances of this legislation passing standalone is little to none. We will continue to explore other vehicles which 280E reform may be attached to and seek to provide any tax relief we can to the legal cannabis industry.
The last few weeks have been a whirlwind of activity here in D.C. – and we don’t plan on slowing down ahead of NCIA’s 11th Annual Cannabis Industry Lobby Days being held on May 16-18! Register today so that you’re a part of our virtual training sessions and we can begin planning your lobbying experience.
Equity Member Spotlight: Taking Events to the Next Level
by Mike Lomuto, NCIA’s DEI Manager
Events are a major way in which the culture of cannabis is preserved and evolves. With 4/20 upon us, we felt it appropriate for this column – which is all about staying true to the culture – to focus in on some of our members who specialize in innovative cannabis events.
For this celebratory month of 4/20, we’re checking in with:
Michael Webster, Founder & Managing Member of Falling Leaves Events, and new member of NCIA’s Banking & Financial Services Committee
Toni, Founder of Toni Consulting and Wellness, member of both NCIA’s Health Equity Working Group and Education Committee
And the ladies of HUSH
Kay Villamin, Co-Founder and Creative Director, and Chair of NCIA’s State Regulations Committee
Vanessa Valdovinos, Co-Founder and Director of Events, Organizer of NCIA’s Marketing & Advertising Committee
Michael shares his infused fine dining and networking series. Toni spreads wellness through the community with her movement-based events that balance the endocannabinoid system and educate the mind. And Hush brings an innovative and highly professional approach to elevate cannabis experiences through their immersive events.
We asked these three cannabis companies some questions about their events and the mission behind them. The journey is always part of the destination, and in this spotlight we get to hear about how these industry groundbreakers are bringing positive innovations to the culture, transforming it with each event. Read to the end to find out where to catch them next.
What type of events do you throw?
MW: Our offerings have evolved with the Michigan adult-use market. While our early events were consumer-focused, we’ve become much more industry-focused, situating ourselves as a B2B connector in the event space. Our current event series, The Falling Leaves Infused Dinner Series, brings together operators, influencers, stakeholders, and allies of the Michigan cannabis industry for infused networking and fine dining. We are also working on a B2B cannabis industry expo to connect the many brands, cultivators, and processors here in Michigan.
Toni: I offer wellness events in the community that provide education highlighting the numerous wellness benefits and usages of the plant. My events are rooted in creating community awareness and solutions around the necessity of cannabis health equity policies.
HUSH: We host and produce high-level experiential events focused on providing immersive experiences with cannabis through interactive design, entertainment, and customized activations that provide creative ways to engage with the plant. From networking events to large conference afterparties and trade shows, we produce a wide range of experiences for brands in the industry.
What makes your events unique?
MW: In a word – or two – Form Factor. Our choice to offer consumption via infused food and beverages is what truly sets us apart from other consumption events. Our networking component offers the opportunity to connect with other members of the industry, and has become quite an attractive feature. Our events feature a carefully curated guest list of folks targeted by sponsors to be in the room so the deals can get done. We have replicated the diplomatic dinner table, where, traditionally, wars have been averted, treaties signed, and industry deals secured. Instead of the smoky, tobacco-filled back rooms, we’re providing smoky, cannabis-filled rooms that feature equity and transparency.
Toni: I curate events that provide education in a way that helps to destigmatize the plant while highlighting its various wellness benefits and usage options, delivered through storytelling, movement, stillness, creative expression, and reflective practices.
HUSH: Every aspect and layout of our events is intentionally designed with the goals of innovation and impact. Our guest experience is first in mind from beginning to end – from accepting an invitation to when they leave the doors to go home – we think of every detail involved. We think of how we want our guests to feel when they enter and guide them in their entire journey, as well as how they can interact with the brands and sponsors we work with. We attract high-caliber, global majority leaders in the industry from all over the country.
How do you roll your mission and advocacy into your events?
MW: Beyond our core mission of equity in the regulated cannabis industry, championing normative integration of mindful, responsible public cannabis consumption remains our cause celebre. Having, in some ways, been chased from the licensed, regulated consumption event space by burdensome insurance regulations that render Michigan’s cannabis event organizer license effectively unviable, we have pivoted to the private event space as our front in this war against normalization.
We perform a critical role in the Michigan cannabis ecosystem for the benefit of all. Our push for normalization eases pain points up and down the industry supply chain, from municipal hearings considering licensure to breaking stigmas and gaining acceptance from important community organizations intent on preventing harm outside of the supply chain.
Toni: My wellness events are rooted in creating community awareness and solutions around the necessity of cannabis health equity policies.
HUSH: Whether it’s our own hosted event or in collaboration with another brand, our goal is to highlight, serve, and work with fellow BIPOC and social equity brands in the industry. With this intention since inception, we’ve cultivated an audience that believes in the same mission. As part of our mission, we create world-class experiences that bridge the gap between small and big operators to collectively provide environments where we can normalize the consumption of cannabis.
What can sponsors or attendees expect from the experience?
MW: Expectations from our sponsors and guests are high because that’s exactly where we set them. We operate on the more sophisticated end of the cannabis consumption event spectrum. Much like our dear friends over at HUSH Chicago, we seek to deliver an immersive experience that is powered by cannabis but involves much more. Sponsors can expect the highest level of quality engagement possible with attendees. A quote from Chris Hammond, Senior Sales Director at Kairos Labs, LLC, best captures expectations – “This past weekend I went to an event hosted by Michael Webster MSc. The food was amazing, the ambience was perfect, and I got more quality contacts in one night than I have in a week at MJ Biz. Very excited for the next event!”
Toni: Sponsors and attendees can expect to learn about educational needs and ways to support wellness initiatives in communities most affected by the “war on drugs.” My goal is to spread knowledge for the betterment of communities, utilizing the old African proverb; Each One, Teach One.
HUSH: Sponsors and attendees can expect to have all senses engaged when attending a Hush event. Each experience is different from the next as we create new ways to engage our guests. For our sponsors, we think of creative ways to activate their brand while keeping their goals in mind, and measuring metrics that will prove their return on investment. Guests and sponsors alike can expect a stark improvement on what was once considered a cannabis consumption event. Attendees should expect to pull up to the intersection of cannabis consumption and decadence, be greeted by grown folk maturity, and be prompted that it is indeed time to go home after our event, no matter how much they wish to stay.
How has being an NCIA member helped the development of your events?
MW: NCIA membership has been transformational. The ability to tap into a national network of eco-partners from disparate cannabis markets gets us out of our silos. We are influenced by empathy and shared resources. We are nurtured by the collective and dream with the expectation of an eventual common market in which to operate. Our events truly are the manifestation of the old African adage – “if you want to go fast, go alone. If you want to go far, go together.”
Toni: NCIA has helped me identify the need for cannabis education and wellness initiatives in marginalized communities.
HUSH: Being part of NCIA has allowed our company to extend our reach beyond local and regional markets. Being a member of committees has enabled us to build relationships with a national group of leaders in the industry who became supporters and sponsors of our events. We have also received great mentoring and advice from other members.
When and where should we expect to see you in the coming months?
MW: We continue to operate on a monthly cadence in the Metro Detroit area, but we are expanding into other municipalities in Michigan as well. In May we expect to take our show on the road and into the Show Me state. As a brand-new market, Missouri has tons of potential and can benefit from a healthy event market. Check out our website – fallingleavesevents.com – and follow us on social @fallingleavesevents to learn about our upcoming events.
Toni: I have a new offering every other Tuesday in Oakland, CA at Snow Park. I will be leading Community Wellness Yoga where we experience movement for the endocannabinoid system with a live saxophonist.
April 11th & 25th
May 9th & 23rd
June 6 & 20th
You can also catch me on my youtube channel or follow me on instagram @cannabisnursetoni for healthy-infused recipes, movement, and your daily dose of wellness.
HUSH: We are hosting an afterparty for NECANN in Illinois on June 2nd and we are also excited to be working on a large cannabis career conference with 40Tons to take place at Malcolm X College in Chicago on Jun 19, 2023 Lookout for an announcement for a fun event in Q4 when we will be celebrating our 5th year anniversary!
Video: NCIA Today – Thursday, April 20, 2023
It’s the 4/20 Cannabis Industry Update!
Join NCIA Director of Communication Bethany Moore for an update on what’s going on with NCIA and our members.
Member Blog: Hydrocarbon v. Solventless – Which is Better?
by Jessica McKeil, cannabis writer for Agrify
The cannabis industry regularly pits solventless extraction against hydrocarbon extraction. Across social media and online forums, the debate ranges in both directions. But with a global cannabis concentrate market hitting $1.7 billion USD in 2022 (Market and Research), it’s clear that no single extraction technology is driving this remarkable growth.
Instead, a variety of extraction techniques, including solvent-based and solventless, allow producers to navigate an ever-evolving landscape and pivot as needed in response to consumer demands and market prices.
Rather than asking if hydrocarbon or solventless is the better option, it makes more sense to consider both extraction technologies together as a total, harmonious strategy.
Limitations of a Single Extraction Method
According to BDSA, the top three influences over consumer purchasing decisions are high THC content, taste and flavor, and, finally, low price point. When we apply these considerations to the world of cannabis concentrates, no extraction technique captures all three.
These often conflicting consumer demands layered with other industry influences mean that choosing a single extraction technology to apply across all markets is impossible, especially if long-term growth is the goal.
A new market may prefer the low price points and high THC offered by hydrocarbon extraction. A mature market may demand better flavor and allow for the premium pricing of solventless extracts. But there are nuances within even these basic assumptions. Investing in a single extraction technology will limit your ability to scale and survive in an always-evolving marketplace.
Let’s look at the limitations of hydrocarbon extraction. There is an initial barrier to entry thanks to the significant capital expense for not just equipment, but the buildout of extraction booths, and the requirement for highly skilled staff. Additionally, hydrocarbon extraction is an incredibly competitive category, especially in newer markets. While you’ll have the flexibility to process just about any biomass, it’s more challenging to differentiate by quality to capture a premium price point.
Solventless extraction has lower upfront costs and also eliminates the need for highly skilled engineers, architects, and even the fire marshall inspection required for hydrocarbon facilities. But solventless only works with high-quality flower and a limited spectrum of genetics. Should harvest quality not meet expectations, solventless extractors have little recourse to recoup costs. Plus, not all markets can bear the premium price point of rosin extracts.
Limitless Production: Harmony of Solventless and Hydrocarbon
Cannabis, as a global commodity, is unsurprisingly seeing consistent upward growth. Yet the fluctuations within each product category and each regulatory market are much more challenging to predict. No matter what state we look at, consumer tastes evolve, regulatory and taxation burdens change, and available biomass quality remains highly variable.
A dual approach to cannabis extraction with solventless and hydrocarbon technologies guarantees flexibility and offers a type of production insurance to weather ongoing market volatility.
First and foremost, having both extraction options on the table allows brands to make real-time production decisions in response to the available biomass and whether or not price, high THC, or flavor is driving sales.
If high-quality flower is available and the market can bear the premium price point, solventless is the definitive choice. As per BDSA Retail Sales Tracking, “Rosin’s share of dabbable dollar sales has grown significantly in mature markets (CA, CO, OR, MI, IL), from 8% in January 2021 to 16% in October 2022.” Even in markets with price compressions, solventless can help secure market share.
But, not all markets are ready for high-priced premium extractions, Illinois being a primary example. Despite its relative maturity and the recent numbers from BDSA, the uniquely high flower prices mean that rosin concentrates are priced out of reach for most consumers at roughly $120 per gram. In this case, it may make more sense to focus on selling quantity rather than selling premium quality, which is where hydrocarbon offers a smart alternative.
Hydrocarbon is also a winning strategy for dealing with lower-quality biomass. No matter the quality of the input, provided the extraction process is controlled, hydrocarbon extraction in combination with distillation is an effective crop insurance.
Hydrocarbon extraction is more versatile than its solventless counterpart, allowing for a wider variety of finished products. It’s possible to create an entire range of products, including shatters, waxes, resins, sauces, and more. Plus, hydrocarbon-extracted crude oil is more easily formulated into consumer packaged goods like edibles and vape carts.
Building production around a dual-extraction strategy, combining solventless and hydrocarbon techniques, is a proven approach. The industry’s leading multi-state operators, including Curaleaf, Trulieve, and Viola Brands, to name a few, have already broadened their SKU portfolios to offer both hydrocarbon and solventless products. This has allowed them to adapt successfully to changing consumer tastes, market conditions, and other influences, no matter where they operate.
Jessica McKeil is a cannabis writer for Agrify based in British Columbia, Canada. Her focus on cannabis tech, scientific breakthroughs, and extraction has led to bylines with Cannabis & Tech Today, Terpenes and Testing, and Analytical Cannabis, among others. She is the owner and lead-writer of Sea to Sky Content, which provides content and strategy to the industry’s biggest brands including Agrify.
Agrify includes extraction brands Precision Extraction and PurePressure, which provide extraction technologies to help producers create the products customers want. From planning and equipment to installation and training, they help operators build out flexible, nimble extraction strategies geared toward long-term viability. Precision Extraction offers best-in-class hydrocarbon extraction, ethanol extraction, distillation, and lab equipment plus vacuum ovens by Cascade, along with extraction lab rooms, pods, and design services for any size operation. PurePressure encompasses solventless extraction, from industry leading rosin presses to hash washing equipment and consumables. Together, Precision Extraction and PurePressure by Agrify offer the full array of options needed to nimbly navigate the volatile cannabis market—no matter operator size. For more information visit https://precisionextraction.com/contact-us/ or https://gopurepressure.com/pages/contact-us.
Committee Blog: The Benefits of Partnering with a Security Provider and What to Consider When Choosing One
As the cannabis industry continues to grow, security has become an increasingly important concern for consultants and business owners. From seed to sale, the cannabis industry faces a unique set of security challenges including permitting and compliance, systems design, theft, and inventory loss.
Add to these challenges a myriad of state laws and regulations that need to be followed. But, if you partner with the right security vendor, they can help you navigate regulations to make sure your business is compliant, as well as offer detailed security plans that integrate with your business goals.
Below are some benefits an experienced security provider can offer cannabis consultants and business owners, and tips on how you can choose a partner that’s right for you:
Dedicated Team with Experience in State and Federal Regulations
An important factor to consider when choosing a security provider is their experience in the cannabis industry as well as security as a whole. How long has the company been in business? Do they have a team dedicated to the cannabis industry? How well-versed are they in cannabis laws and regulations? Do they provide comprehensive support from seed to sale? Look for a security provider that has a dedicated cannabis team that understands the regulatory landscape.
Permit Application Support and Permit Drawings
One of the most challenging aspects of the cannabis industry is permitting and design. An experienced security provider can review your state application to verify regulations are met in order to maximize your score. They should be able to provide the narrative for the permit application related to your security plan. Consider if they are able to design a comprehensive security plan showing location of devices, rough-in, power requirements, standard operating procedures and network requirements. Look for a security partner that provides these services, and inquire if these services are free or if there is an additional charge.
Trade Coordination
There’s a lot of moving parts that go into getting a cannabis business up and running…and even beyond. A good security provider can coordinate with builders, construction companies, power companies/utilities, architects, and other partners for streamlined deployment of systems.
Enhanced Security and Asset Protection
Cannabis businesses tend to deal with large amounts of cash and valuable products that make them a target for internal and external theft, as well as other security threats. An experienced security integrator can design, install and implement a comprehensive security plan that includes video surveillance, access control, panic buttons, and monitored intrusion and fire alarm systems. Make sure your security provider can offer a range of products and services that will protect your business and your staff during and after business hours.
Alarm Monitoring
An essential part of security is protecting inventory from internal and external theft as well as environmental threats like fire. Rapid response and quick emergency dispatch arekey should an incident occur. Look for providers that offer 24/7/365 in-house alarm monitoring, redundant communication capabilities, and ask if their monitoring centers are U.L.-listed. They should also have false alarm protocols in place so your business can avoid costly fines associated with false dispatch.
Increased Operational Efficiencies
Working with a security provider can help cannabis businesses increase their operational efficiencies. For example, with a comprehensive security plan in place and a security partner that can proactively advise on best practices, you can focus on running your business knowing that your people and product are protected. Additionally, video analytics can supply valuable data and reporting to help you optimize operations such as identifying areas for improvement, opportunities for growth or additional employee training; spotting violations to help avoid compliance and permitting infractions; and analyzing traffic patterns to maximize store layout performance and ensure adequate staffing during peak business hours.
Access to the Latest Security Technology
The security industry is constantly evolving with new technology being developed to address emerging threats. Working with a security partner gives cannabis consultants and businesses single-source access to the latest products. By leveraging these advanced technologies, you can stay ahead of potential threats. Choose a security vendor that has well-established relationships with trusted equipment manufacturers. Your provider should be able to offer curated devices that integrate with each other and that can be controlled via a single platform, such as a mobile app, so you can control all aspects of your security system anytime, anywhere. Some security providers even have dedicated in-house product teams that continually source and evaluate the latest technologies. Consider how your provider stays on top of new trends and technologies.
Ongoing Service and Support
Even if your business is operational, you’ll still benefit from the ongoing support an experienced security partner can provide. If the security vendor provides a single point of contact, it’s easier to schedule service, inspections, monitoring, and other critical
needs, ensuring your facilities remain fully functional. Ask if your security partnerprovides post-installation service and support including ongoing testing and inspections to remain compliant with the authority having jurisdiction.
Whether you’re a cannabis consultant or a business owner, look for security providers with industry experience; permitting, compliance and design expertise; customized security solutions; reliable alarm monitoring; and cost-effective solutions. By choosing the right security partner, cannabis businesses can mitigate security risks and ensure compliance with state and federal regulations.
Casey Mitchell is an enterprise account manager for Vector Security’s dedicated cannabis solutions team. He has more than 22 years of experience designing security and communications systems for the U.S. Department of Defense and other highly-regulated industries, like cannabis.
Committee Blog: Three Things Your Company Can Do For Sustainability (And Why You Should Care)
Contributors to this article include current and former members of NCIA’s Sustainability Council: lead author Laura Wilkinson Sinton, Shawn Cooney, David Schwartz, Fred Whittlesey, Gabe Cross, Emily Long, and NCIA’s DEI Manager, Mike Lomuto.
“Everyone talks about changing the world. Nobody talks about changing themselves.” – Leo Tolstoy
Sustainability can be a confusing term for cannabis companies. The reality is, in a still- federally-illicit market, individual businesses taking active steps towards reducing their own environmental impact (no matter how small) is the catalyst for systemic change across the broader industry. Does sustainable mean to recycle? Does it mean regenerative farming? Compostable packaging?
It means some – or all – of those things, depending on your industry vertical. It means a collection of all of the seemingly little steps toward a larger collective impact.
Sustainability is the ability to exist and develop in the current generation without depleting our natural resources for future generations.
Here are our top 3 reasons why you should pay attention and take action.
Your future depends on it.
As the cannabis industry seeks legitimacy with both private and institutional investors, institutional and private investors have made it clear that a robust sustainability plan is mandatory. The Security and Exchange Commission (SEC) will be instituting reporting standards for publicly traded companies, and ESG (Environmental, Social, and Governance) reporting will be required. If you are or will be looking for capital and investors in the near future, you need to start reporting metrics today. If you have to play catch up, it may play out like musical chairs – leaving you with a “nosebleed” seat at the money table, if at all. Another point to consider – the number of women in cannabis has been rapidly declining, so pay attention to your hiring practices and be aggressive on inclusion. Women sit on investor boards and will be looking closely at your leadership gender balance metric when you court them. It’s both environmental AND social statistics they’ll be looking for and inclusion gives you a competitive advantage. The inclusion of minorities and those affected by the “War on Drugs” should be on your roster as well.
Your customers are demanding it.
According to a recent Calivate survey, 79% of cannabis retail customers (the revenue drivers) indicate through their purchases that environmentally conscious brands get their preference. Companies like Wyld, with their forward-looking ESG reporting and social justice activism, demonstrate the power of their market positioning. It has become a major competitive advantage for Wyld. You can make it yours, too. The ICR-Spectacle 2021 showed customers prefer to buy their weed from women (46%) and from people of color and veteran-owned businesses (44%). Sustainability and ESG reporting of these types of metrics go hand in hand. It will bring different perspectives (and customer acquisition viewpoints) to your strategy. It’s not just about the cheapest price point or highest THC anymore. And all indicators show that ESG reporting will play an even more crucial role in the future, with both investor and customer loyalty,
It’s actually easier than you think.
Depending on your vertical, you can easily start measuring and setting benchmarks today. Most of these metrics you already measure, but not for sustainability reporting. Efforts to improve them will impress investors with both prudent money-saving strategies and social indicators. Here are a few easy ones to start quarterly or monthly, depending on your company.
Water. Indoor and outdoor grows and most manufacturers already measure water usage. Establish a benchmark of where you currently are and measure quarterly for seasonal changes. Then you can develop strategies to reduce usage, including, as simply as installing low flush toilets and watering less volume but more frequently throughout the day to reduce wasted runoff
Electricity/Power. Everyone, regardless of vertical, pays a power bill. Establishing a quarterly benchmark and implementing reduction strategies (including time of day use and working with local utilities) will save both money and power usage e.g. lower wattage LEDs. Avoid bandaid approaches to environmental controls such as installing more and more systems providing a single function, like additional large dehumidification units. You don’t want to be using diesel generators for your indoor cultivation facility in a major Port of a major California city on the water adjacent to a low-income population area like these guys. It will get you in trouble with every authority, and likely cost you your license (and any downstream customers). The news cycles will hammer you and your brand’s reputation in the worst possible way. Be mindful of the perils of making a quick buck with cheap, polluting energy. It comes at a cost. It’s unsustainable.
Waste. All verticals can measure their waste output. Organic waste with cultivation can be included in the metrics of landfill-waste diversion (and there’s a simple way to calculate this measurement in “cars taken off the road.” Plastic waste – which so many manufacturers must use for child-proof packaging – is a fertile arena for reduction. Several cannabis packaging companies like Sana Packaging use oceanic plastic lids on glass bottles, which are recyclable. Wyld is now using compostable child-proof packaging which is a revolution in our industry. Manufacturers have different takes on waste depending on process type.
The most important thing is to just get started. Even if you think you don’t need it today, you will tomorrow. And make sure your CEO is onboard 100%. If you don’t have the backing of your CEO and investors, you will have an uphill battle that will make your sustainability goals nearly impossible. Make sure you bring them the data and the reasons why your company will benefit financially from these actions and get them to engage in this process. This may mean hiring an environmental sustainability professional or consulting firm to help collect the data to bring to the executives showing the clear financial benefits. If you are a smaller company, try it yourself.
If you feel overwhelmed, try this free sustainability website to input sample data and see instant graphs. It’ll start you on the path, and prepare you for the future of cannabis.
But only if you plan to be around for it.
This site uses cookies. By using this site or closing this notice, you agree to the use of cookies and our privacy policy.
Valerie Taylor, Producer, Vice President and National Cannabis Practice Leader, 
Author Bio:
by NCIA’s Retail Committee
Gary Cohen is the CEO of Cova, the most trusted cannabis POS brand in North America. Having met with nearly 2000 dispensary operators from coast to coast, he leverages expert knowledge to offer cannabis retailers the support they need to get a license, pass inspection, launch a store, assess tech tools, and scale operations. Gary leads seminars on retail technology, compliance, business operations, and cannabis banking laws at the industry’s largest events including NCIA, CannaCon, and MJBizCon.
Andrew Kaye has been involved in all aspects of the financial services industry, as a fund portfolio investment manager, investment banker, family office investor and attorney. He has worked with start-ups on their first raise through global enterprises undertaking billion-dollar stock offerings, and has significant investment experience in the cannabis industry. Currently, Andrew works as Sweet Leaf Madison Capital’s Chief Commercial Officer. Lending his expertise toward the creation of middle market financing solutions for real estate and equipment financing needs in the cannabis space.”
Justine Charneau is the head of cannabis industry sales at 
by Mike Lomuto, NCIA’s DEI Manager
by Mike Lomuto, NCIA’s DEI Manager 
Jessica McKeil is a cannabis writer for 
By Casey Mitchell, 