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Member Blog: Securing Your Cannabis Venture – Mastering Inspections with Comprehensive Cannabis Insurance

The cannabis industry continues to blaze a trail of growth and innovation, opening numerous opportunities for entrepreneurs and investors. However, this thriving landscape also exposes businesses to unique risks that demand proactive risk management solutions. Insurance plays a pivotal role in safeguarding cannabis ventures from potential losses, making it an essential aspect of responsible business operations. In this blog post, I will explore the critical role of inspections, the challenges they present, and how partnering with a reliable cannabis insurance broker can protect your business interests while mastering the art of inspections.

Understanding the Need for Inspections

The cannabis industry operates under stringent regulations, and inspections are an indispensable component of ensuring compliance. These routine evaluations, carried out by regulatory bodies or insurance carriers, are designed to assess product quality, safety standards, and adherence to legal requirements. While inspections are vital for maintaining high standards within the industry, they also expose businesses to potential vulnerabilities, particularly theft.

The Perils of Theft: Unraveling Insider Threats

As the cannabis industry expands, so does the risk of theft. A concerning issue arises from potential “inside jobs,” where employees or third-party trusted individuals gather sensitive information on-site, posing a significant threat to the operation’s stability. This situation often leads to confusion and concern for clients regarding third-party insurance inspectors who sometimes come on site without communication or vetting.

Clients frequently encounter uncertainty when dealing with these inspectors. They tend to reach out to operators to schedule appointments without confirming the inspector’s affiliation with the insurance carrier or broker. This results in delayed responses, as these calls are often mistaken for telemarketing and disregarded. Unfortunately, this miscommunication can lead to compliance issues with the insurance carrier.

To address this problem, transparent communication between the insurance broker, inspection company, and operator is essential. For example, many clients now ask me to verify the identity of those contacting them before scheduling appointments. I highly recommend this practice to protect clients’ sensitive information.

In this evolving landscape, ensuring security and effective communication is paramount. By taking proactive steps, we can enhance the industry’s growth while safeguarding its integrity.

Transparent Expectations: Building a Solid Foundation

Open and direct communication, coupled with well-defined expectations, serve as the cornerstone for effective inspections within the cannabis industry. My commitment lies in bridging the gap between clients and inspectors, enabling them to familiarize themselves with one another and streamline the scheduling process. A comprehensive comprehension of the inspection procedure, its aims, and the specific areas subject to scrutiny is imperative for businesses. Simultaneously, transparency on the part of insurance carriers regarding inspection protocols and their protective role is crucial for your business’s security.

Embracing a collaborative approach to inspections fosters a strong alliance between businesses and insurers. This synergy guarantees a seamless process that ultimately benefits all stakeholders involved.

Guarding Behind-the-Scenes Details: Protecting Business Operations

In the fiercely competitive cannabis landscape, certain aspects of business operations must be protected with utmost confidentiality. These behind-the-scenes details include proprietary cultivation techniques, security measures, and intricate supply chain arrangements. Recognizing the sensitivity of this information, leading cannabis insurance brokers take extraordinary measures to safeguard such details. 

Vetting Inspectors: Fortifying Inspection Security

The integrity of inspection processes begins before any inspector sets foot on your cannabis business premises. Reputable cannabis insurance carriers undertake rigorous vetting of third-party inspection companies to verify their credentials and expertise. This stringent evaluation ensures that inspectors adhere to the highest standards and are committed to protecting your business. In cases where an inspector contacts you directly, it is essential to politely reschedule the inspection and promptly inform your insurance broker. 

Aligning Real-Time Risks with Comprehensive Insurance Coverage

Beyond regulatory compliance, inspections serve another vital purpose: assessing real-time risks and aligning them with the insurance coverage outlined in your policy. This strategic alignment ensures that your cannabis business is adequately protected against potential losses. Collaborating with your insurance broker to comprehend the risks inspectors evaluate and their significance empowers you to optimize your risk management strategies. By proactively addressing any coverage gaps, your cannabis insurance policy becomes a reliable safety net, allowing you to navigate the dynamic cannabis industry with confidence.

Addressing Unique Industry Challenges: Tailored Cannabis Insurance Solutions

The cannabis industry operates in a state of constant flux, with evolving regulations and market dynamics presenting ever-changing challenges. These unique complexities demand specialized insurance solutions that cater to the specific needs of cannabis businesses. Leading cannabis insurance providers possess an in-depth understanding of industry intricacies, enabling them to craft policies that safeguard against cannabis-specific risks. From crop damage and product recalls to theft issues, these tailored insurance solutions provide comprehensive coverage, assuring businesses of their resilience in the face of adversity.

Overall, inspections and comprehensive cannabis insurance play instrumental roles in securing your cannabis venture against potential risks and losses. Transparent communication and clear expectations before, during and after inspections build trust and foster collaboration between all stakeholders. 

Guarding behind-the-scenes details is of utmost importance, and trusted cannabis brokers go the extra mile to protect your business operations from potential breaches. Vetting inspectors diligently ensures the security of the inspection process, preventing unauthorized access to sensitive information.

By aligning real-time risks with comprehensive insurance coverage, cannabis entrepreneurs gain invaluable peace of mind and the ability to navigate the industry confidently. As you embark on your journey in the dynamic cannabis sector, choose a reputable cannabis insurance broker who understands the intricacies of the industry and can offer tailored solutions to safeguard your business interests. 

Remember, mastering inspections and harnessing the power of comprehensive cannabis insurance will be your business’s most potent shield in an ever-changing and promising landscape. Embrace the future of the cannabis industry with confidence, knowing that your venture is secured and protected every step of the way.

For more information, please reach out to Valerie Taylor, Vice President (National Cannabis Practice Leader), Liberty Company Insurance Brokers.

Committee Blog: Navigating the 2023 Cannabis Harvest Season – Balancing Labor Costs, Worker Safety, and Automation

As we enter the Fall cannabis harvest season of 2023, several dynamics impacting human resources in the cannabis industry have shifted considerably. Between escalating labor costs and the imperatives of ensuring safer working conditions, the landscape for cannabis industry employers isn’t what it used to be.

Here are three recommendations to help you navigate workflows this harvest season:

1. Proactive Planning Amidst Rising Labor Costs:

Labor costs in the cannabis industry have seen a sharp surge in recent months. Where we saw hourly rates for harvest workers in years past at $12-$20/hour, this range is now closer to $14-$25/hour, depending on the market. This uptick isn’t just a reflection of rising expectations among industry employers, but also a clearer sense of the safety risks involved, what experienced cannabis harvest workers are willing to work for, and the number of such workers who have left the industry entirely in recent months. For cannabis companies, this necessitates early planning. Human resources departments need to remain agile to adapt to these changes in the labor market.

To address this, a multi-pronged strategy is best. If you’re still finalizing your harvest approach, consider a blend of hiring seasonal talent while also investing in some automation. By leveraging the unique strengths of both seasonal and full-time workers, along with automation, you can tap into hands-on expertise, while enjoying the benefits of flexibility and cost-effectiveness.

2. Prioritizing Worker Safety:

The increasing global temperatures, a distressing trend for many cultivators, has implications for outdoor and greenhouse workers. HR professionals need to be proactive in revising Safety protocols to protect workers from the adverse effects of heat. Regular breaks, shaded areas, hydration stations, and training on recognizing heat-related illnesses are no longer optional. In certain areas, you may want to consider having your crew come in earlier than usual, before the weather heats up, as long as you have adequate lighting in place so the team can work safely.

If you operate in remote locations or places farther from urban centers, it becomes even more crucial to ensure nearby amenities and facilities are optimized for the warmer climate. This includes considering air-conditioned accommodations, cool showers, or providing cooling stations on-site. Keep a list of essential nearby services, and ensure they cater to the needs of workers battling higher temperatures.

In light of respiratory concerns, especially in indoor processing settings, invest in premium Personal Protective Equipment (PPE) for tasks like handling kief, resin, and pre-rolls. This PPE can also be used by workers outdoors when there are some air quality concerns due to fire season. It is not safe for workers to be out when air quality is poor. Check with your Worker’s Compensation provider to see what the threshold is for your policy.

If you’re looking for Work Site Safety or OSHA guidance, please reach out to NCIA’s HR Committee for recommendations.

3. Integrating Automation with the Human Touch:

2023 is undeniably a pivotal year for integrating automation in the harvest process. Advancements in technology offer tools that can help streamline multiple stages of the harvest. While there are certain upfront costs involved, there are also long-term benefits to be had in terms of overall profitability and efficiency. While much of the available machinery has a way to go before being as accurate as an experienced Harvesting Tech or Trimmer, especially for growers in remote areas, where there isn’t a large pool of talent, leaning more on automation could make the difference between harvesting your cannabis at its peak, or not.

You can also look to our related NCIA blog post from 2021 for additional suggestions to help you prepare for the Fall harvest. Navigating the harvest this season will require forward-thinking, investment in a combination of seasonal workers and technology, along with a renewed commitment to worker well-being. As challenges continue to mount in our industry, the companies that adapt and prioritize both efficiency and worker safety will undoubtedly reap the greatest rewards.

Member Blog: How to Avoid the 4 Most Common Payroll Mistakes

To achieve your goals in business, your payroll system must be flawless. It is an aspect in which you must strive for perfection whenever possible. Avoiding payroll mistakes in the cannabis industry is especially crucial due to the highly regulated nature of the industry. Compliance with payroll regulations is essential to avoid legal repercussions and penalties from governing agencies. Additionally, accurate and timely payroll ensures proper compensation for employees, and maintaining precise payroll records promotes transparency and accountability, building trust with employees and stakeholders in an industry where transparency is vital.

It is better to be safe by managing your payroll as thoroughly as possible, if not you would be sorry you didn’t. Most people have most likely made these mistakes and have had minor consequences accompanying them. If these mistakes persist, the business owner often pays dearly for them. These common payroll mistakes have cost some their business. 

Having Multiple Records for a Certain Payroll

It pays to have all your payroll information in a single database. This enhances security and ensures that you know where to look for your payroll information. If this has been your practice and your business uses tools like HCM software that helps you manage your employees and other business information, then this shouldn’t be much of a problem.

All you’ll have to do is use that same software to manage and process payroll information. If your business documents are disorganized, be sure to have them all in one place. 

Not Updating Needed Information

Ensure that you are not complacent by relying on automated software to do everything. The system is not aware that your employee would be changing addresses therefore such info should be entered manually.

That error could lead to mistakes in filling that employee’s taxes as the bills might arrive at the wrong address. As much as simplifying a process is great, you still need to play your path in getting things done.

It would help you to set timely reminders in the system that should help you avoid the mistake of not keeping up with the latest information.

Weak Security System

Confidential information should remain so. To avoid your system being compromised, you should be using a payroll processing system with strong cybersecurity. 

This has got to be the costliest mistake common to payroll processing. Every information concerning your business that is not available on your website and to your customers, is most likely not public information. Private information about your business should remain private.

Information in payroll systems is as sensitive as can be. There’s almost every piece of information you need to know about a person, and as such strict rules should apply to keeping them safe. A weak security measure means a weak business and a weak business means trouble.

Inaccurate or Delayed Tax Payments

In calculating taxes absolute precaution is required. If you are not a tax accountant you are probably not so proficient in this calculation. Your tax accountant (if your business has one) should learn how to adequately use the system to avoid delay or inaccuracy. 

Bear in mind that inaccurate tax payment makes your business a tax defaulter. Your business as a taxpayer has the duty of tax calculations assigned to an accountant. Note that taxes ought to be paid within the required time bracket. The systems are programmed to make the tax payments when due. 

The human capital management system does not only process payroll information but can also tell when employees qualify for federal or state tax credits.

In Conclusion

To maintain payroll accuracy and timeliness in the cannabis industry, it is crucial to avoid payroll mistakes. By opting for a third-party payroll provider like Tesseon you can benefit from our expertise and ensure that your payroll is consistently accurate and delivered on time, regardless of any industry-specific challenges. The Cannabis industry is both very young and extremely regulated, it is imperative that businesses stay vigilant and proactive to avoid costly mistakes.

Member Blog: 5 Types of Business Insurance You Should Consider

As the cannabis industry continues to rapidly expand and evolve, entrepreneurs need to be proactive in safeguarding their businesses from potential risks. Insurance is crucial for any business, and the cannabis sector is no exception. In this article, we will explore five important types of business insurance specifically tailored to the needs of cannabis entrepreneurs. By understanding these essential policies, cannabis industry professionals can make informed decisions to protect their investments and future-proof their ventures.

General Liability Insurance

General liability insurance covers the cost of any injury or damage caused by your business. This includes injuries on your premises and injuries to someone while using your products or services. It also covers you if someone is injured while on your property, even if they’re not part of an organized event or program (like a birthday party). General liability insurance will also cover the cost of any lawsuits filed against you for negligence or breach of contract arising out of the above scenarios.

Professional Liability Insurance (Also Known As Errors And Omissions)

Professional liability insurance, also known as errors and omissions insurance, protects you from lawsuits if a client feels you have made an error in your work. This can be anything from a client claiming that you didn’t perform according to the contract terms or did not fulfill their expectations.

This coverage differs from general liability protection in that it only covers claims against professional services like accounting or legal services. If you own a business where your products or services could physically injure customers, you also need general liability coverage (more on this later).

The good news is that most businesses need both types of policies: professional liability for the expertise required for running their business and general liability for protecting themselves against bodily injury incurred by customers using their products/services.

Business Interruption Insurance

A business interruption policy provides coverage for losses that result from the sudden, unforeseen loss of use or operation of your business. For example, if you’re forced to close your doors because a fire destroyed your building, this policy will pay back some of the revenue you lost during that period. Business interruption insurance can be purchased as part of a multi-line or a stand-alone policy.

Workers’ Compensation

The next type of insurance to consider is workers’ compensation insurance. This form of insurance covers the cost of medical expenses and lost wages for an employee who has been injured on the job. In all states, workers’ compensation policies are required by law, but you may want to add additional coverage for your business if there is a high risk of injury among your employees. Your premiums will be higher if you have a larger number of workers or more dangerous jobs than others in your area, so it makes sense to review this kind of coverage before purchasing it.

Employment Practices Liability (EPL) Insurance

Employment Practices Liability (EPL) insurance can be a lifesaver for small businesses, especially when there are multiple employees.

EPL insurance protects your business from sexual harassment, discrimination, and wrongful termination claims. It also provides coverage for defending these types of claims against you.

If you’re doing business in certain industries, EPL policies are often required by law or rely on government contracts to run your business. A few examples include healthcare providers, educational institutions, restaurants, and hotels—though it varies by state, so check with your insurance agent before purchasing a policy.

Conclusion

The bottom line is that you should consider your business insurance needs carefully and ensure adequate coverage. If you’re unsure about what type of insurance to get or how much coverage is enough for your business, please speak with an agent or broker who can help guide you through these decisions.

Committee Blog: Exploring Anti-Counterfeiting Packaging Solutions

The cannabis industry has seen success and achievement in recent years. However, with this success comes a challenge: counterfeiting. Counterfeit cannabis products pose serious risks to consumers and can damage the reputation of legitimate businesses. To preserve authenticity and protect consumer safety, solid anti-counterfeiting measures can be implemented. One crucial aspect of anti-counterfeiting efforts is using packaging solutions that are both secure and reliable. Let’s take a closer look at the types of counterfeiting and the packaging options available to protect brands and consumers. 

What is Counterfeiting?

There are two main types of counterfeiting that we’ll focus on:

Packaging Impersonation: Occurs when fraudsters recreate the packaging of popular and trusted brands. The aim is to deceive consumers into believing they are purchasing authentic products from a brand. Counterfeit packaging can closely mimic the design, colors, and labeling of genuine products, making it difficult for consumers to differentiate between authentic and counterfeit items. This poses a risk to a brand’s reputation if counterfeit products are being sold under their name because these fake products usually do not meet a brand’s standards for safety and quality. 

Product Tampering: Product tampering involves attempts to alter, manipulate, contaminate, or compromise cannabis products. This poses significant health and safety risks to consumers, especially if harmful contaminants are introduced or if the potency of the product is affected.

Anti-Counterfeiting Options

To combat packaging impersonation, there are a myriad of solutions available. Most solutions aim at making packaging replication difficult. Using holograms on packaging is one option that will increase the difficulty fraudsters will face when trying to duplicate packaging accurately. Holograms can also incorporate additional security features like microtext and unique serial numbers. This further increases the complexity and uniqueness of the package. The complexity, specialized equipment, and materials required to create convincing holograms may deter counterfeiters from even trying to replicate that specific package, as it increases the cost.

Additionally, color changing inks, specifically tamper-indicating inks, can provide a visible indication of tampering. If someone attempts to move or reposition a label, the tamper-indicating ink is triggered and will display a different color indicating that the product may not be valid. Another type of color changing ink technology is photochromic inks. This color changing ink technology can act as an invisible layer of protection. They are only visible under specific lighting conditions and fraudsters may miss adding these to counterfeit packaging. Lastly, digital watermarking is a great option to combat packaging impersonation. These are not visible to the naked eye, but are embedded within your packaging design, for example in your logo. When these watermarks are scanned with specialized software, devices or cell phones, it can allow for verification of authenticity. Not only do digital watermarks help with authenticity, but can add customer interaction as well. When a customer scans the watermark with their smartphone, they can be taken to the brand’s website, a special landing page, and more. To take the level of protection even further, with digital printing it is possible to put a different code in each package which creates unique IDs for one product. These watermarks can even contain important information such as batch numbers, production dates, and more to enable product tracing. 

To combat product tampering, a simple solution is using tamper evident bands on containers. Tamper-evident bands fit snugly around the closure of a container and are applied when the product is sealed. The only way the product can be opened is if the band is removed. Tamper evident bands provide visual evidence of tampering to the consumers and also help prevent the container from being refilled and sold. Similarly, tear notches on flexible packaging provide the same benefit that temper bands do. These are small indentations or perforated areas on flexible packaging that provide a visual indicator to consumers if a product has been opened. Both tamper bands and tear notches instill confidence in consumers by ensuring that the product meets brand’s standards for quality and safety. Lastly, using a tamper-evident seal which incorporates color-changing inks to indicate unauthorized access to a package. When the seal is intact, it will remain the original color, however if someone attempts to peel off or break the seal, the ink changes color providing evidence of potential tampering. This technology helps to safeguard products during storage, transportation, and distribution, providing assurance to consumers and protecting against counterfeit or tampered goods. 

Best Practices and Conclusion

In addition to implementing the anti-counterfeiting options above, brands in the cannabis industry should consider adjusting their labels and packaging designs to increase the difficulty for replication. Furthermore, educating consumers about the key elements to observe on a brand’s package or label can enable them to detect subtle indications of tampering. By protecting both the packaging and the product, the cannabis industry can preserve its reputation and ensure the success of legitimate businesses.

Member Blog: Safeguarding Cannabis Businesses – Managing Product Liability and Ensuring Consumer Safety

The rapidly expanding cannabis industry presents unique challenges when it comes to managing product liability. As the sector continues to grow, businesses must prioritize quality control, labeling requirements, and consumer safety to protect their reputation and financial well-being. In this article, I will explore the various risks associated with product liability in the cannabis industry and discuss risk transfer strategies to safeguard businesses from claims related to cannabis products. One of the largest misconceptions I hear is that if a client is not making the product, they do not need product liability. Unfortunately, the reality in the industry is that in a product allegation, everyone through the entire supply chain could be named in a suit.

Quality Control and Labeling Requirements: 

One of the key challenges in the cannabis industry is maintaining consistent product quality and ensuring accurate labeling. Product liability claims can arise if a consumer experiences adverse effects due to contaminated or mislabeled products. To mitigate these risks, cannabis businesses must implement robust quality control measures specific to what part of the supply chain.

From cultivation to manufacturing and distribution, every stakeholder should prioritize quality assurance practices. This includes regular testing for potency, contaminants, and pesticides. By adhering to rigorous standards, businesses can minimize the chances of their products causing harm to consumers and reduce the likelihood of product liability claims.

Accurate and compliant labeling plays a critical role in managing product liability risks. It’s vital for cannabis businesses to stay informed about the specific labeling requirements in their market, as laws and regulations vary across jurisdictions. Take California, for instance, where non-manufactured products have their own set of requirements, distinct from those for manufactured products. Whether it’s raw flower or gummies, each product category has its own labeling specifications.

Sadly, there have been instances where products were packaged to attract children or imitate popular snack brands. These cases highlight the deceptive packaging that misleads consumers and targets underage individuals. By ensuring proper labeling, businesses can offer transparency to consumers, building trust in their brand. Furthermore, accurate labeling of THC content is crucial to avoid potential product liability and advertising claims. By providing clear and precise information about THC levels, businesses can protect themselves while also meeting consumer expectations.

Consumer Safety and Education: 

Cannabis businesses must prioritize consumer safety by providing clear instructions for product usage and appropriate warnings, especially for edibles and other products with specific dosage instructions. Consumers should be informed about potential risks, possible side effects, and any known allergens present in the product. Accessible information to consumers can help reduce the likelihood of product misuse and associated liability claims. 

Insurance Strategies for Product Liability: 

Product liability insurance is a critical component of risk management for cannabis businesses. The cost of insurance premiums is typically based on gross sales, meaning that the more products a company sells, the higher the associated risk. However, it is important to note that not all insurance policies cover product liability in the cannabis industry. Therefore, businesses should work with specialized brokers who understand the unique risks and challenges in this sector.

In addition to product liability insurance, implementing further risk transfer processes can play a significant role in reducing the likelihood of being involved in a lawsuit. Businesses should establish clear contracts and agreements between cultivators, manufacturers, and distributors, outlining each party’s responsibilities and liabilities. These agreements help allocate risks appropriately and provide a legal framework for dispute resolution.

Overall, managing product liability in the cannabis industry requires a proactive and comprehensive approach. By prioritizing quality control, adhering to labeling requirements, and ensuring consumer safety, businesses can minimize the risks associated with all aspects of the supply chain when it comes to product liability. Additionally, securing appropriate insurance coverage and implementing additional risk transfer processes can provide further protection and peace of mind. As the industry evolves, staying informed and proactive in risk management will be key to long-term success and sustainability in the cannabis market.

For more information, please reach out to Valerie Taylor, Vice President, Liberty Company Insurance Brokers. 

Committee Blog: The Best Way to Do the Worst Thing – Quick Tips for Demonstrating Empathy in Layoffs

Layoffs are unpleasant for all involved. Not only is it painful for a supervisor to part ways with someone they have hired and trained to be a productive part of the team, but jarring as an employee to suddenly learn that you are unemployed. Although there is no scenario where a layoff is a positive experience, here are some helpful ways to ensure you approach it with empathy and humanity.

 

Yes, we know it is business, but it is also personal (especially to the employee being laid off).

Think about each person individually and how to make the situation as comfortable as possible. If they work remotely generally, or have a significant commute, consider a virtual meeting. While in-person has generally always been perceived as better, in today’s flexible work environment some employees might be upset about being asked to come into the office, just to be terminated and then drive back home. Think about the physical location you have the conversation (if in-person), as you do not want to put the person in a position to walk past their peers on their way out and offer to ship their personal things to avoid the public packing of the box. Cater your choices to the person being impacted.

If possible, have HR present and give the employee time with HR after the supervisor delivers the news so the employee can ask specific questions about next steps that they may not feel comfortable asking while on the phone with their now previous supervisor. If your company doesn’t have a HR department, consider contracting with someone who can support you if the layoffs impact more than a few people.

Does your benefit plan run until the end of the month after termination? If so, consider planning the separation date toward the beginning of the month so the employee has access to benefits through the rest of the month. Not every company is in the position to provide lucrative separation packages. However, providing a week or two of remote transition time in addition to the severance paid, provides a better transition for the company and also gives the impacted employee more time to job search.

Start the conversation off with letting the person know the discussion will be a difficult one, as this will provide them the opportunity to prepare for the bad news. It can feel disingenuous to have dialogue about work projects, sports, or the weather, and then get into the topic at hand. It is ok to tell an employee who did a great job and contributed a lot, that you appreciate their contributions and that the layoff is not due to their performance. This can matter when they are later reflecting on what transpired.

The communication shouldn’t end after the termination conversation.

Anticipate that it is difficult to process the news that you’ve lost your job and retain what you’ve heard about next steps. Commit to immediately providing the details over email after the discussion so that they can review them whenever they are ready.

Have a separation package prepared that contains all the important information someone might need post-separation. They will want to know about accessing their W2, rolling over their 401k, how long their benefits are active until, how to use their Health Savings Account funds, how to access your HR or payroll system for pay stubs, etc.

Layoffs impact more than those who left.

Make it safe for employees to reach out to those impacted and offer their support and care. When informing stakeholders of the changes, let them know that you wish their colleague well and encourage anyone that wants to reach out, the opportunity to reach out and offer support.

Promises of safety usually cannot be made during times of uncertainty. Often employees will ask “Is that it? Are we done?” These are tough questions in times of uncertainty and caution should be taken when answering them. The worst thing would be to say that there will be no more layoffs, and then someone else gets laid off or terminated. Even if the termination was performance related, it can impact the credibility of leadership if employees feel like the promise was broken.

Encourage leaders to have personal conversations with their team members about how they are feeling. When you are feeling uncertain, you want to hear from the person you trust most. Of course, this needs to come with guidance and support from senior leaders. Senior leaders should role model this, and then their leaders should pay it forward. Tell your most critical players that their role and contributions are important to the organization. If appropriate, explain why the decision was made to reduce or eliminate certain groups so employees can understand the rationale and decide whether that provides them comfort in their position.

Generally, position reductions result in the remaining employees picking up additional tasks. Handle this with care. Have conversations with employees about their workload and include them in the process of solutioning how to cover the tasks.
Unfortunately, “what not to do” lessons are generally learned the hard way when it comes to layoffs, however, through research and reading employee feedback, you can learn a lot from others’ mistakes. If you lead and plan your layoffs with empathy and compassion, you are more likely to avoid major pitfalls.

Member Blog: The Evolution of Cannabis-Friendly Banks and Credit Unions

If you are a cannabis-related business (CRB) looking for banking services, that search is becoming less demanding. With the U.S. cannabis market expected to exceed $70 billion by 2030, financial institutions are increasingly becoming aware of the opportunity to boost their bottom lines, while supporting the safety and economic development of their local communities. As friendlier cannabis banking legislation emerges from Washington, D.C., we expect to see thousands of financial institutions actively serving the industry, up from the approximately 250 banks and credit unions serving the industry today.

Early on, smaller credit unions were among the most prevalent pioneers in the industry. Even today, most banks and credit unions that are cannabis-friendly are less than $1 billion in size. That trend is changing rapidly, though, and with it, an increased level of sophistication is supporting the cannabis ecosystem. In fact, at least two banks with assets larger than $50 billion on the East and West Coast respectively have entered the market and by all accounts, have booming portfolios.

When looking for a banking partner, CRBs should consider a few key questions:

  • Does the bank or credit union have an existing cannabis portfolio?
  • What are the fees for service?
  • Can the financial institution provide ACH services for business-to-business transactions?
  • How does it handle cash deposits?

Deposit taking is the primary focus of cannabis-friendly financial institutions however there is activity in a few key areas relevant to the industry.

Lending

Fast-growing industries like cannabis are always in need of growth capital, and the banking sector has been slow to fill this void. The exception to this is in mature markets (such as Oregon, Colorado, and Massachusetts) where banks and credit unions in search of low-cost deposits are increasingly offering lending to attract legal cannabis operators to their institutions. While interest rates are still higher than typical business loans and generally require personal guarantees, the advent of cannabis lending is a welcomed relief to founders and others who have historically had to part with equity to meet capital needs.

Fortunately, lending is increasingly becoming mainstream. By our estimates, 50 or so banks and credit unions have opened their wallets in this regard, with most of the lending activity tied to commercial real estate. Equipment financing has also become more prevalent, and operating lines of credit are extended rarely to those firms with deep operational experience and more substantial balance sheets.

Payments

Until federal legalization occurs, the payments space will continue to include workarounds created by fintech entrepreneurs and others. ACH wallets tied to loyalty programs are often seen in medical markets, and until the end of 2022, cashless ATMs had widespread adoption on the adult-use side.

Most recently, PIN-based debit solutions running on the regional debit rails are gaining traction, and these options pass compliance hurdles that were not present with cashless ATMs. With their advent, merchants are also seeing an increase in sales of 20% or so as compared to cash-only environments.

Access to banking and financial services in the cannabis industry has come a long way in the last decade yet has a long way to go. There is a real advantage for early movers to provide services and we expect more and more financial institutions to recognize the opportunity and get involved.

Member Blog: Move Over Cannabis ERP – This is How You Breakdown Information Silos

As a licensed cannabis company, managing multiple data sources, systems, and processes that must remain in sync and compliant 24/7 comes with challenges not faced by traditional businesses. 

Like every other business, however, you rely on a variety of software systems like inventory management, sales tracking, customer relationship management, financial systems, and more. And when these systems don’t communicate well, several issues you’re probably familiar with rise to the surface.

Maybe you’ve had to manually input data from one system into another or get custom code to get different systems to communicate, but these are time-consuming, error-prone, and inefficient. Let’s take a quick look at some of the other problems you’re likely to run into.

Data Inconsistencies: When systems don’t share information, it creates ‘data silos’ with discrepancies occurring everywhere. For example, your inventory system shows you’re out of a particular cannabis product, but a sales system shows overstock and offers the product at a steep discount. These inconsistencies lead to confusion, inefficiencies and lost profits.

Reduced Productivity: Employees manually entering and transferring data between systems is time-consuming and prone to error– the extra effort kills productivity. Don’t forget, staff need to fix those manually input errors manually when they could be working on more important things.

Poor Decision-Making: Blindspots can seriously impact decision-making without a unified view of your business data. If sales data is kept separate from inventory data, as in the example above, making accurate forecasts and planning for future needs is next to impossible.

Customer Dissatisfaction: Customer data should be shared between systems to maintain customer service. A customer could unknowingly purchase a back-ordered product or receive discount promotions for products they’ve already purchased, or the customer service team might need access to a customer’s full history when dealing with inquiries or complaints. It’s easy to see how conflicting or inaccessible customer data could lead to a bad customer experience. 

Regulatory Compliance: In this industry, compliance with regulatory requirements is crucial. When integrated tracking and reporting systems are in play, ensuring compliance and avoiding fines or other penalties is much easier.

Increased Costs: The time and effort needed to rectify data inconsistencies and errors increase operational costs, especially when, for example, a cannabis company tries to add additional software to bridge the gaps between two systems. In the end, those two systems may communicate seamlessly, but you’re still left with data silos everywhere.  

Cannabis ERP a Traditional Approach?

Until recently, what recommended solution effectively managed the following cannabis business activities?

  • Human resources
  • Accounting
  • Cultivation
  • Manufacturing
  • Distribution
  • Sales teams
  • Marketing
  • Retail 

A platform called cannabis ERP, right? But there are a few single-suite disadvantages to an ERP solution by itself:

  • Difficult to select a single solution that fits the needs of the whole company
  • Longer implementation 
  • Larger up-front Cost
  • Longer ROI
  • Requires shared vision by the entire company
  • Tied to one vendor’s vision & priorities 

While a cannabis ERP may still be a great option for some companies, for a growing number of cannabis operators, cross-platform compatibility is a non-negotiable feature in today’s increasingly interconnected digital landscape. So what is the solution?

The New Approach to Cross-Compatibility 

Cloud APIs (aka Application Programming Interfaces) are how you achieve cross-platform compatibility because they provide a set of rules and protocols that govern how different software components should interact. This makes it possible for other software systems, which may be built on various platforms and programming languages, to communicate and work together effectively.

In general terms, cannabis businesses might consider the following integrations for their operations:

  1. Seed-to-Sale Tracking API: This type of API integration facilitates the tracking of cannabis plants from cultivation to the final sale, which is important for regulatory compliance. They can assist with inventory management, plant batch tracking, waste tracking, and sales reporting.
  2. Point of Sale (POS) API: These APIs connect the POS system with other business applications like ERPs, CRM, or eCommerce platforms. They facilitate real-time inventory updates, sales data analysis, customer behavior tracking, and regulatory reporting.
  3. eCommerce API: These APIs integrate online sales platforms with other business applications. They can help manage online orders, update inventory in real-time, and streamline shipping and customer service.
  4. Laboratory Testing API: These APIs are useful for pulling test results directly from third-party labs into the company’s main system. They help ensure product quality and regulatory compliance by tracking potency, contaminants, and other metrics.
  5. Payment Processing API: This type of API integration helps cannabis businesses connect with payment gateways that can handle the unique regulations of the cannabis industry. They manage transactions, refunds, and customer data related to payments.
  6. Regulatory Reporting API: These APIs automatically compile and report data to state or national regulatory bodies. This can simplify compliance with the complex regulations that apply to the cannabis industry.
  7. Customer Relationship Management (CRM) API: These APIs help integrate CRM platforms with other business applications, allowing companies to streamline customer communication, manage leads, track customer behavior, and more.
  8. Supply Chain Management API: These APIs allow cannabis businesses to connect their systems with those of their suppliers or distributors, helping to streamline order placement, inventory updates, and other aspects of the supply chain.

Cloud APIs allow different software systems to communicate with each other in a standardized way, automating the sharing of data and functions between systems. With cloud APIs, operators can significantly reduce data silos, cross-platform incompatibility, and integration challenges and move toward a best-of-breed approach. 

So, What’s it Really Mean to be Best-of-Breed?

The best-of-breed phrase describes software or technology considered the best or most superior within its specific category, niche, or industry and implies that a software system excels in features, functionality, and performance compared to its competitors.

So instead of picking an all-in-one software like a cannabis ERP, you can choose any software you want, and cloud APIs will connect them. 

Imagine having to assemble a dream team for the Olympics. Not just any team… a dream team. Of course, you’d want to select the best players for each position to create the best possible teams, the individuals who consistently perform for the team. Where would you start?

Choosing the top performers for their respective roles puts your team in a position for the highest chance of success. Think about it, when each player brings a unique set of skills and expertise to their job, they ultimately level up to the team’s overall performance.

Similarly, a best-of-breed solution is like selecting the top-performing individual software systems for your organization’s specific needs and then connecting platforms to form the best available suite of tools for each function.

Seamless Integration: High-Performing Tech Stack for Cannabis Operations

Integrating your preferred systems for tracking inventory, sales, compliance with regulations, etc., is no longer the same headache it once was. With cloud APIs enabling software, applications, and services, you can operate effectively across multiple platforms and systems. 

Communicating between systems is important for several reasons:

  1. Greater reach and accessibility: Cross-platform compatibility allows a software or service to be used by a larger user base as it operates on multiple different systems rather than being confined to just one.
  2. Efficiency and cost-effectiveness: By ensuring their solutions are cross-platform compatible, developers write code once and deploy it across multiple platforms, which saves time and resources in development and maintenance.
  3. Improved user experience: With cross-platform compatibility, users interact with a service or application on the platform of their choice, leading to a better user experience.

Cannabis has so many different verticals within, and so many different pieces of specific software need to talk to each other, you need someone to integrate your cloud, a partner that you can grow with. 

Canna Suite’s Cloud API is made specifically for seamless communication among your preferred tech stack.

Canna Suite’s Best-of-Breed Advantages

  • It’s a growth strategy, improving decision-making and transparency with software solutions that fit today’s and future needs
  • Companies can buy software in phases
  • A modularized software approach grows and changes with you
  • Supports flexibility and high-growth 
  • Rolled out in non-sequential phases
  • Departmental decision making
  • One partner, but not tied to one system
  • Functional-specific support

The one size fits all methodology has passed with the increased adoption of cloud technology with the Best of Breed approach saving you time and money. With superior levels of accuracy, transparency, and automation, you can finally streamline business processes that allow you to capitalize on growth.

Canna Suite’s single-partner approach for software selection, integration, support, and reporting means you can select different software solutions that fit each department’s needs. If you’d like to learn more about breaking down your data silos, check out our recorded webinar.

Member Blog: Protect Your Cannabis Intellectual Property to Stay Competitive in a Changing Landscape

In 2021, massive China-based e-cigarette manufacturer Shenzhen Smoore Technology Limited (the parent company of CCELL) initiated a proceeding before the US International Trade Commission (ITC) in which it alleged that Advanced Vapor Devices (AVD) and 37 other vape hardware companies infringed upon its patents. 

After roughly a year and a half of legal proceedings, the ITC ruled that the vape hardware companies did not infringe on CCELL’s intellectual property related to ceramic core vape cartridges. This was a victory for not only the US cannabis vaping sector but the cannabis industry as a whole.

From our perspective, CCELL’s litigation appeared as an attempt to drain competitors’ resources and eliminate competition. By refusing to stand aside, we were ultimately vindicated by the ITC’s ruling. 

The Implications of CCELL’s ITC Proceeding 

CCELL alleged that AVD and the other respondents had infringed upon three of its patents. However, the ITC ultimately ruled that one of CCELL’s patents was improperly obtained and the respondents’ products did not infringe on the other two patents. The ITC also determined that CCELL failed to establish a “domestic industry,” which is required for ITC claims since such proceedings are designed to protect US interest in fair trade.

The more worrisome part is that, had CCELL been successful in proving its allegations, the ITC would have barred the importation of the infringing products, resulting in CCELL gaining a stranglehold on ceramic core vaporization technology. This would have had a far-reaching impact on the broader vape industry. By eliminating the competition, CCELL would have placed itself in a position to control the market, pricing, and timing of new product releases. Inevitably, customers would have faced the prospect of higher prices and slower innovation cycles—both natural results of decreased competition. 

We firmly believe consumers deserve the innovation, variety, quality, and fair pricing that competition brings. In our view, the industry is large enough to handle fair competition. Commercial success should come as a result of offering better products, service, and prices—not from using litigious tactics to drain competitors’ resources.

How the Vape Industry Fought Back

Our response to the lawsuit involved deep intellectual property (IP) research and engaging the right advisors, without whom we could not have succeeded while shouldering the burden of the litigation. During the litigation, we continued to capture further market share, gain clients and support our current clients by doubling down on our strategy of creating high-quality products and delivering exceptional customer service. 

Operating from a cannabis-centric perspective that does not appreciate a bully in the industry, we put together a joint defense group, including The Blinc Group and Greentank, among others. After all, we are competitors—not enemies. 

Together, we’re able to cooperate on policy reform, laws and lobbying that benefit the entire industry and prevent monopolies. All while maintaining healthy competition that promotes innovation. When push came to shove, the vape industry proved that cannabis companies could successfully work together in the industry’s best interest.

A Catalyst to Focus on IP Now

The ITC case should be a wake-up call to cannabis companies to focus on developing and protecting their own intellectual property. Developing and owning IP grants companies a competitive advantage in the marketplace that protects their novel inventions. 

Companies outside of cannabis certainly understand this. Merely securing a cannabis-related patent does not violate any federal laws. Companies in other industries (pharma, agriculture, CPG, etc.) can and already have started to gain a toehold in cannabis through their IP. 

If anything, the ITC case is a preview of things to come. If cannabis companies don’t get ahead of the curve, they may find themselves as the targets of successful infringement proceedings. Worse, this could result in them being unable to bring certain products to market. 

Some of these cases will be valid—companies deserve to reap the rewards of real innovation arising from investments in R&D. Some will be trolling. Yet others will be similar to our situation, where a well-capitalized company uses its resources to put competitors through the wringer.

To be clear, earning and enforcing patents is, for the most part, good practice. Patents incentivize innovation and stimulate healthy competition by rewarding parties who create novel inventions. Those patents encourage competitors to come up with their own innovations. If a technology is unavailable because it’s patented, competitors are forced to invest more in their own R&D to create their own innovations. This becomes a flywheel as all companies try to out-innovate each other, ultimately benefiting consumers. But it is critical to not abuse the process and not allow others to do so either. Healthy competition promotes true innovation. And that benefits all of us. 

IP will be a key factor in shaping the industry’s future. Despite the multitude of present-day challenges our industry faces, it is crucial for companies to prioritize investment in IP if they are aiming for longevity. Many companies look at the costs associated with IP as an operating expense, while it would more appropriately be viewed as an investment. You must devote the resources now to have differentiated, innovative and proprietary products in the future. 

Member Blog: Understanding Alfalfa Mosaic Virus – The Four Key Aspects of its Symptoms, Effects, and Transmission Strategies

As a cannabis cultivator, staying vigilant about the health of your crops is paramount. Among the array of plant viruses that can impact your harvest, the Alfalfa Mosaic Virus (AMV) stands out as a considerable threat. This formidable plant virus primarily affects leguminous crops, but it doesn’t spare cannabis. Part of the Alfamovirus genus in the Bromoviridae family, AMV can inflict serious economic losses in agricultural settings.

Four Key AMV Symptoms

Recognizing AMV in your cannabis cultivation starts with understanding the symptoms. Here are the four major signs you should be on the lookout for:

  • Mosaic Patterns: Watch out for irregular light and dark green areas on the leaves. This mottling gives the foliage a unique marbled appearance, indicating a potential AMV infection.
  • Leaf Yellowing: One of the classic signs of plant stress, leaf yellowing, can signal an AMV infection in your cannabis plants. This can range from mild to severe and may occur independently or alongside mosaic patterns.
  • Stunted Growth: Is your cannabis crop not reaching its usual height? This could be due to AMV infection, as it often stunts plant growth.
  • Leaf Distortion: AMV may also cause cannabis leaves to become twisted, curled, or deformed, disrupting their photosynthetic abilities.

The severity of these symptoms can vary depending on the plant’s developmental stage and the specific environmental conditions. For professional guidance, contact us at (530) 220-8754.

Four Critical AMV Effects

AMV can significantly impact your cannabis cultivation efficiency and yield. The primary effects of an AMV infection include:

  • Reduced Yield: AMV interferes with normal cannabis growth, often leading to a reduction in productivity and a lower overall yield.
  • Decreased Crop Quality: Visible symptoms like mosaic patterns and leaf yellowing can impact the visual appeal of your cannabis crops, potentially affecting their market value.
  • Impaired Photosynthesis: The virus-induced symptoms can disrupt chlorophyll function, causing a decline in the photosynthetic capacity and overall weakened growth.
  • Weakened Plant Health: AMV can compromise the immune response and physiological functions of your cannabis plants, making them more susceptible to secondary infections.

Four Modes of AMV Transmission

Controlling AMV in your cannabis crops involves understanding how the virus spreads:

  • Non-Persistent Aphid Transmission: In this type of transmission, aphids act as carriers of the virus without being affected or changed by it. The virus attaches to the mouthparts (stylets) of the aphid and is transferred to the next plant when the aphid feeds. The key aspect of non-persistent transmission is its speed; the virus can be transmitted quickly, usually within minutes to a few hours of the aphid feeding on an infected plant. This type of transmission does not require the virus to enter or multiply within the body of the aphid.
  • Persistent Aphid Transmission: This type of transmission involves a longer-term relationship between the virus and the aphid. The aphid ingests the virus, which then enters the insect’s body and may even multiply within it. The virus remains within the aphid for extended periods, sometimes for the lifespan of the aphid. The virus is then passed to healthy plants when the infected aphid feeds on them. The transmission process in this case is slower than in non-persistent transmission, often taking hours to days before the virus can be passed on to a new host plant.
  • Mechanical Transmission: This refers to the physical transfer of the virus from an infected plant to a healthy one, often through human activities. It can occur when farming tools or machinery contaminated with the virus are used across multiple plants, leading to the spread of AMV.
  • Infected Plant Material: This involves the transmission of the virus via seeds, cuttings, or other parts of the plant that are already infected with AMV. Such materials can carry the viral particles, thus spreading the virus to new plants.

In conclusion, understanding the Alfalfa Mosaic Virus (AMV) is crucial for cannabis cultivators. Recognizing the symptoms, understanding its effects, and knowing its modes of transmission are the first steps to protecting your crops and ensuring a healthy yield. Regular testing, early detection, and proper disease management practices can help you mitigate the impact of AMV in your cannabis cultivation.

Please, ensure you are taking all necessary steps to keep your cultivation safe, as well as our community. Plant pathogens are an enemy we all face, and we all must take responsibility for preventing and educating one another. That’s why we’ve developed a downloadable poster for you to keep your cultivation crew informed about top-tier Biosecurity Measures for Plant Pathogen spread prevention.

Let’s continue to grow safe and healthy cannabis!

Member Blog: The Drawbacks of Doing Your Own Payroll

The cannabis industry is unique in that there are many issues to consider when it comes to payroll. Doing payroll in-house can prove to be a complex endeavor and can have many drawbacks along the way. For instance, it can be difficult to keep up with ever-changing laws and regulations relating to payroll taxes, safety net contributions, and labor law compliance. Additionally, in-house payroll requires comprehensive knowledge to compute withholdings and deductions from employee wages, which can prove to be challenging.

Using a third-party payroll provider can help to improve accuracy and ease the burden of managing employee payroll. Third-party payroll providers can handle all the complexities involved in payroll, such as withholdings, benefit deductions, and payroll tax filings, freeing up valuable time and resources. Furthermore, a third-party payroll provider will be securely monitoring and tracking payroll changes, ensuring compliance with the latest payroll regulations.

In general, doing payroll in-house can be a complex endeavor that requires specialized knowledge and can be a resource-consuming task, but in a heavily regulated industry like cannabis this is especially true. For these reasons, cannabis businesses who switch to a third-party payroll provider often find the benefits far outweigh any obstacles.

Business owners have their minds set on ensuring the growth and stability of their businesses, figuring out modes to cut down costs along the line. Particularly, budding businesses in a bid to satisfy this widespread phenomenon, decide on DIY payroll – choosing to oversee the bookkeeping and accounting arm of their businesses. The common misconception is that payroll outsourcing options constitute a financial burden, contrariwise, the costs incurred from consistent errors (as is always the case) sum up to impact much more extensive financial repercussions on the company.

It is noteworthy that the convincing nature of DIY payroll also bears characteristic flaws which could pose serious threats to your business enterprise. Details on the drawbacks of doing your payroll are highlighted in this article.

Extreme Dependency

Seeing that you and/or another member of your workforce is solely charged with the responsibility in addition to other work-related assignments, chances are that your company finances will take a nosedive if you or the designated other is unavailable for any reason. This isn’t the same if you outsource, as payroll software and service providers are unfazed by such challenges.

Reduced Productivity

Settling financial statements and record keeping are time-consuming processes. Therefore, taking this up yourself would suggest that precious time and labor that could be spent on other vital aspects of the business will be diverted, influencing the work rate and eventual results.

In addition, payroll requires rapt attention to detail, precision, and patience. There is increased stress and the resultant frustration that could result could negatively impact productivity. 

Heightened Susceptibility to Errors

Payroll is a complex system of procedures, requiring well-trained and skillful personnel. Experienced service providers are prone to errors and sometimes make mistakes, the chances, therefore, are that if you handle it yourself, you will make grave errors. 

  • Miscalculating Profits

Inaccurate bookkeeping can lead to miscalculation of profit. Unpaid invoices would remain unnoticed, and the establishment suffers losses.

  • Missing Important Deadlines

The workload makes missing deadlines a high possibility. Poor handling of documents and vital information can result in missing payment dates, ignoring tax information and forgetting payment bonuses and overtime, to mention a few. This could result in noncompliance with government rules and your business might spend a large chunk satisfying fees and fines.

  • Cash Flow Problems 

With inaccurate bookkeeping, there is no adequate knowledge of cash inflow and outflow. This common DIY payroll challenge could lead to payroll issues in the long run and set your business up for a downturn. 

Apprehension by Regulatory Agencies

With DIY payroll, you may have inaccurate books, payment issues, consistent complaints, and noncompliance with state and federal laws. This would ignite the swift actions of government agencies like the Internal Revenue Service (IRS) and your business may suffer grave repercussions.

Indeed, the complications accompanying DIY payroll may outweigh the advantages proposed, hence the need to consider helpful payroll services to ease the burden and help your business focus.

Having an effective payroll system is crucial for Human Capital Management, an important ingredient for business growth and advancement.

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.

  1. 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.

  2. 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.

  3. 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.

  4. 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

Picture of cannabis in a jar

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.

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.

Picture of glove manufacturing factory

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

By Harrison Bard, Co-Founder and CEO, Custom Cones USA

Pre-Rolls More than a Trend

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.

Graph: Pre-Roll Sales and Prices Over Time

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.

Graph: Yearly Change in Equivalized Price by County - Category Price Compression

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. 

Graph: Wallet Share by Age Groups

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.

Graph: Attachment Rate of Cannabis Product Type 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

Image of cannabis retail dispensary

By: Pete Longo, Founder & CEO, The Phinest Kind
Contributing Authors: Larina Scofield, Sweed POS | Nicole Rivers, Northern Light Cannabis Co. | Richard Fleming, Altered State Cannabis Company
Produced by: NCIA’s Retail Committee 

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

by Erika Cruz, Outreach Monks

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

By: Richard Fleming, Founder & CEO, Altered State Cannabis Company
Contributing Author: Tony Trinh, Royalty Grown Consulting
Produced by: NCIA’s Retail Committee 

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

Illustration of paperwork for new hire reporting

Evan Pryor, Director of Sales at Tesseon

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:

  1. Employee’s name
  2. Employee’s address
  3. Social Security number
  4. Date of hire (the date the employee first performs services for pay)
  5. Employer’s name
  6. Employer’s address
  7. 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:

  1. Report newly hired employees to the states where they work, or
  2. 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

Two hands shaking with a digital overlay

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.

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.

THANK YOU

Special shoutout to our partner organizations, all of whom are working tirelessly to advocate for a more equitable industry. This includes: Cannabis Equity Illinois Coalition; Minorities 4 Medical Marijuana; JUSTUS Foundation; National Hispanic Cannabis Council – Tristate Chapter; NYC NORML; Social Equity Empower Network; Service-Disabled Veterans in Cannabis Association; United Latino Cannabis Industry Alliance; Detroit Cannabis Project; NY CAURD Coalition; and Minority Cannabis Business Association

And big thank you to our sponsors, who understand the importance of creating these intimate conversations, for the sake of a resilient and equitable industry. Platinum Sponsor Dao Mastery; Gold Sponsors Grow America Builders and Etain; and Silver Sponsors Zenco Payments, Indiva Advisors, Cova, Jeffrey Hoffman & Associates PLLC, Mary Jane Consulting Group, Illinois Equity Staffing, Mackewich Legal Counsel, and Cannas Capital

Member Blog: What Does The SAFE Banking Act Mean for the Cannabis Insurance Landscape? 

by Valerie Taylor, Vice President (National Cannabis Practice Leader), The Liberty Company Insurance Brokers

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 Taylor, Producer, Vice President and National Cannabis Practice Leader, The Liberty Company Insurance Brokers

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 to Valerie Taylor, Vice President (National Cannabis Practice Leader), The Liberty Company Insurance Brokers. 

 

Equity Member Spotlight – Back to D.C. for Lobby Days

by Mike Lomuto, DEI Manager

For the second time in nine months, NCIA’s DEI Program organized a DEI Delegation as part of our annual Lobby Days on Capitol Hill. 

The DEI Delegation consists of some of the foremost advocates for Social Equity from across the country. Their leadership within their state and local communities, as well as within NCIA’s Committee structure, greatly bolsters the lobbying efforts of our organization as a whole, all year round.

Our Delegates weighed in on the organization’s talking points ahead of the event, and then provided an important perspective on the Hill.  As part of NCIA’s lobbying on behalf of the industry, our members focused on SAFE Banking, 280E Reform, Comprehensive Legalization, Veterans Affairs, and more.

Thanks to TILT Holdings and Evergreen Market for sponsoring this very important initiative. 

As stakeholders in the cannabis industry, it is important that we learn how to also properly advocate for ourselves and for others from diverse communities around the country.

We’ve already begun raising funds for next year’s DEI Delegation. If you want to ensure the return of this initiative, while also receiving year-round recognition, reach out to mikelomuto@thecannabisindustry.org

2023’s Lobby Days DEI Delegation:

Raina Jackson, Purple Raina; DEI Committee Organizer and Policy & Regs Subcommittee Chair
Dr. Adrian Adams, CGO at Northeast Extracts; NCIA’s DEI Committee; M4MM’s NY State Director
Vanessa Valdovinos, HUSH; NCIA’s Marketing & Advertising Committee Organizer
Anthony Jenkins, Next Level Edibles; NCIA’s Cannabis Manufacturing Committee

 

This is your first year as a Delegate. Why was it important to you to participate?

Vanessa:

Participating in Lobby Days allowed me to contribute my personal experiences, expertise, and insights as someone running a small business in a highly regulated market. I wanted to have a voice in shaping legislation related to crucial topics that are important to me like providing an equitable pathway in the cannabis space. By being present at Lobby Days, I could truly contribute to the development of policies that would essentially help shape policies that promote a safe, inclusive, and thriving cannabis industry for the benefit of all.

You were a member of last year’s Delegation. Tell us why you chose to return this year, and how your experience last year influenced your game plan for this year.

Dr. Adrian:

Last year was more about figuring out who in each office was the one driving the cannabis policy car, if you will, meeting them where they were, and schooling them up. This year we did a better job as a small group in each office using each of our bios to tell an impactful story regarding the impact of SAFE Banking and 280E, and tying it to what some offices have done in their home district.

Raina:

It was a wonderful experience to participate in Lobby Days 2023, especially after attending last September for the first time and learning so much. I appreciate that this year’s meetings were extended over two days, following in-person training at the glorious Michael Best Strategies office penthouse.

Like last year, I found that most Congressional staffers are quite open-minded and seek to understand our points of view to correctly convey them to the lawmakers they serve. I learned that we don’t have to agree on every single detail to come to a compromise, especially since the People have spoken and demand some form of safe cannabis access and decriminalization nationwide. Bipartisan efforts must match public opinion.

What were the main takeaways from your experience on Capitol Hill?

Raina:

Most staffers were not familiar with 280E and how it disproportionately burdens cannabis businesses with paying upwards of 50 to 70% of revenue towards federal, state, and local taxes without the tax write-offs other industries enjoy at a 30% standard rate.The new proposed Small Business Tax Equity Act eliminating 280E for cannabis businesses would greatly improve the economic landscape, while still representing a net gain for the national economy. This credit would allow more businesses to stay afloat and continue to pay taxes at a more equitable rate over a longer period. Everybody wins!

Dr. Adrian:

SAFE Banking could potentially happen sooner than I thought if it originates from the Senate side. 

Anthony:

My main experience in Capitol Hill taught me that with planning and footwork, it is possible to reach elected officials, even highly ranked officials like US Senators.  And from the feedback we received from both Democrats and Republicans, most representatives are on board with all 3 (hemp updates, 280e reform, SAFE Banking).

Vanessa:

One of my main takeaways from this experience was the immense value of hearing personal stories that shed light on the diverse perspectives within a highly regulated market. By listening to the struggles and triumphs shared by individuals, I gained a deeper understanding of the challenges we all face on a day-to-day basis. I also realized that by sharing our own truths and insights, we can provide invaluable perspectives that others can learn from. Personal stories have the ability to bridge gaps in understanding and create empathy, which are crucial for the progress of any industry.

Mike:

An important component of Lobby Days is the in-person training session. This year, Reggie Babin provided some great insights. As the former Chief Counsel to Senator Charles Schumer, who worked directly on the Cannabis Administration and Opportunity Act, his words resonated throughout the room and our lobbying efforts over the ensuing two days. One thing that stuck with me is when Reggie compared the ten years it had just taken to get reform through on a non-cannabis issue. That bill had strong sentimental support and near-unanimous public opinion on its side. Given that context, it made it clear that we’re on schedule for SAFE Banking. It also means we need to be pushing on other legislation that may likewise take many years to push through.

He also pointed out how any one conversation that we have could be the one that flips the vote that is the final domino on passing legislation. That’s why our stories are so important.

What did you learn from your experience that you’d like others to know?

Raina:

As NCIA DEI Delegates we must control our own narratives and help illuminate the state of our industry by putting names and faces to our stories and sharing our triumphs and pain points. I’m glad we are revisiting the SAFE Banking Bill, which is vital to public safety and economic growth along the supply chain. It is paramount that the bill is passed in any version initially, with room for amendments to weave PLUS equity initiatives into the fabric. 

Dr. Adrian:

The circle of leaders at the top of the cannabis industry is relatively small and many of those folks attend the lobby days of groups like M4MM and NCIA. Your attendance is good for business as well as for the creation of informed public policy. 

Vanessa:

Another important lesson I learned was the significance of building relationships. Engaging with lawmakers directly and sharing my own personal experiences and insights was a driving force for me. It was inspiring to witness their genuine interest in hearing directly from industry professionals. Establishing meaningful connections with policymakers is key so that our industry is properly understood and represented.

Anthony:

I learned that an impassioned personal message goes a lot further than you think. Which is why we need you next year. Because we need our officials to hear your story, and how these issues affect you, your business, and your family daily.

What’s something you loved about visiting D.C. outside of the Lobby Days activities?

Vanessa:

It was the opportunity to connect with my fellow members on a deeper level that truly resonated with me. During our time together, I had the privilege of hearing their unique personal stories and gaining a deeper understanding of what had motivated them to participate in Lobby Days. These stories were inspiring and just reminded me of the incredible passion and dedication within our community.

The personal stories, the camaraderie, and the bonds we formed have created a network of support and friendship that extends far beyond the event itself. It was a truly special aspect of the trip that I will cherish for years to come.

Dr. Adrian:

Just seeing the unique D.C. cannabis market in action with entrepreneurs like Barry Doyle/Embers and others holding unique events. As Anthony Jenkins from San Francisco put it, “it was like seeing the future of cannabis in the U.S.”

Raina:

I appreciated that this year my group had time between and after meetings to visit D.C. landmarks like the Botanical Garden, the Dr. Martin Luther King Memorial, and the Washington Monument. I even extended my stay to experience the phenomenal National Museum of African American History and Culture.

Anthony:

The botanical garden was dope!

P.S. Something else I’d like to note is that in the weeks leading up to Lobby Days, I embarked on the Equity Workshop Tour, a series of workshops held in four cities, bringing together industry stakeholders, leaders, advocates, and regulators. This experience was highly informative for me to hear all these stories prior to our lobbying work in D.C. It was also great to see some of the same faces that I had seen across the Tour again in D.C!

Member Blog: From Seed to Harvest – A Guide to Successful Cannabis Cultivation

by Erika Cruz, Outreach Monks

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. 

Maintain a temperature of around 70-75°F (21-24°C) and ensure proper ventilation to prevent mold or fungal growth.

Vegetative Stage

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.

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.

by Justine Charneau, Eagle Protect

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

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