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Congress Wants YOU To Make Safe Products.

By David Vaillencourt
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Recently, Congress requested detailed information regarding the regulation of CBD and other cannabinoids. This comes on the heels of frustration around federal inaction with regards to cannabinoid-containing products produced from Cannabis sativa L. plant extracts that can be classified as “hemp” products amidst the clear need for safety standards that goes above and beyond state minimum compliance requirements.

A Historical Deja Vu?

The author will be joined by his colleagues leading the Seed to Sale Safety Workshop on October 16 at the Cannabis Quality Conference. Click here to learn more. Product safety standards predate the birth of our nation (and many others). From the days of the first pharmacopeias which rival the oldest documented use of the cannabis plant, to modern regulations, the quest for safety has been a constant theme. But as the saying goes “Old habits die hard,” but so do safety issues. From peanuts to thalidomide and tobacco, we’ve seen this movie before – and it is time for a new ending.

A Universal Desire for Safety

Whether you are an investor, executive, technician or anywhere in between – nobody in the cannabis industry (and all its end uses, including industrial hemp) wants to knowingly produce unsafe products. The risks of ignoring safety are real and tangible. Whether it is 20+ years in jail for being an executive of a company that knowingly sold adulterated products and was linked to seven deaths or 10,000+ deformed children, many of whom died at birth because of a drug approved for morning sickness – there is no shortage of case studies we can learn from. Even cannabis has been known to cause injury and death in consumers – not because of the d9-THC, but the impurities. As the industry continues to innovate and develop new product form factors – whether it is new delivery methods of d9-THC in soluble beverage forms, or the rise of manufactured cannabinoids in unregulated marketplaces – it’s critical to understand the risks of your entire production process and to mitigate them. No cannabis company is immune from making costly and dangerous mistakes. It’s not just about compliance – it’s about public health and safety.

Safety Can Be a Sticky Subject

Safety is indeed a complex subject, especially when it comes to cannabis products. For instance, acceptable limits for microbial contaminants for the inflorescence of a Cannabis sativa L. plant are quite literally all over the map. What about the route of administration? Take an inhaled product (like a vape pen) vs. an ingested product (e.g. an edible). Many outdoorsy people like myself may enjoy the smell of cooking s’mores over a campfire, but the particles and VOCs can irritate our lungs, especially when exposed over long periods of time. We aren’t inhaling those s’mores – so the production of the marshmallow, chocolate and graham crackers come with different risks we need to evaluate. It’s not just about the product – it’s how it’s consumed.

Safety Standards – the Fabric of Our Society

Standards are unsung heroes of our daily lives. Whether it’s to keep planes from falling out of the sky, cribs and dressers from crushing young children, preventing train derailments or ensuring the safety of our food and medical products – standards keep us protected – just like grandma’s quilt. The absence of standards can be expensive, and anyone familiar with the accusations of d9-THC lab-shopping and inflated label claims knows that the cannabis industry is the poster child for this.

Congress has long recognized the importance of standards in protecting everyday consumers, as demonstrated by numerous legislative acts. A few notable and relevant ones to cannabis are below:

  • 1848 Drug Importation Act: First major act that combated the importation of substandard – adulterated drugs imported from overseas into the nation which was having a major impact on soldiers of the Mexican-American War.  This Act included legal requirements for drugs to meet the US Pharmacopeia’s standards for strength, quality, and purity.
  • 1906 Food and Drugs Act: After an increase in adulterated and misbranded foods and drugs – made famous by Upton Sinclair’s The Jungle, the relentless work of Dr. Harvey Wiley, a Chief Chemist with the then US Department of Agriculture and his “poison squad” – led to significant oversight of adulterated food and drugs including legal adherence to the US Pharmacopeia and paved the way for the current FDA.
  • 1938 Food Drug, Cosmetic Act: Shortcomings in the 1906 Food and Drugs Act were catalyzed by over 100 deaths after a wonder drug that was analogous to antifreeze led to an outcry that led to the passage of the FDC&A. From factory inspections, to strict marketing and label requirements, to legally enforceable food standards and tolerances for certain poisonous substances – the FDA was given substantial more oversight to protect the growing United States. It also expressly recognized USP quality standards for medicines with USP standards also binding for any dietary supplement manufacturer that labels their products as being compliant with USP specifications.
  • 1994 Dietary Supplement Health Education Act (DSHEA) defined and regulated dietary supplements which carved out significant exemptions for the dietary and herbal supplement industry from most FDA drug regulations. This act has been met with significant controversy as it greatly limited the FDA’s capacity to ban or restrict supplements until evidence of a major safety or adverse event is tied to the product of concern.
  • 1995 National Technology Transfer Advancement Act (NTTAA) – A lesser known act that is focused on standards and technology that requires participation of federal agencies in voluntary consensus standards bodies. Extending beyond foods and medicines – this act covers a broad array of infrastructure and technology regulations that ensure the fabric of our society operates (largely) without issue.

Over 1,000 ASTM standards are incorporated by reference in the US Code of Federal Regulations across nearly 30 federal agencies (searchable here), a demonstration of the value and impact public voluntary standards have in our society.

At the FDA, ASTM standards are used every day to keep us safe. Whether it is to measure the absorbency of tampons (21 CFR 801.430), enforce safety specifications of synthetic and natural wax coatings that are used to coat much of our produce, gummies and more (21 CFR 178.3770), quantifying the impurities in our bottled water (21 CFR 165.110) and many more.They have long been recognized as the de facto minimum standards that balance the need to protect consumers without imposing undue burdens on innovation by industry.

The process of developing an ASTM standard, which was developed and used to keep our trains from derailing 125 years ago, is now the home of 510+ cannabis industry specific standards. Whether it’s acceptable water activity levels in cannabis flower, a truly universal symbol to alert consumers of intoxicating cannabinoids, medical cannabis flower specifications developed in close guidance of the US Pharmacopeia, or how to apply the principles of HACCP to cannabis products, a lot of the hard work has already been done for the industry. It’s simply a matter of knowing where to look and how to use them!

The path to safe and sustainable cannabis products is clear, and the tools are available. It’s time that we learn from the past, apply the standards of the present and mitigate the risks of the future. Now more than ever before, it’s easy to make safe cannabis products and a credible marketplace not just a goal, but a reality.

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Cannabis Industry Banks Still at Risk Without Passage of the Safe Banking Act

By Leslie Bocskor
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Here we are again, crossing our fingers, hoping that the Senate will approve the passage of the Secure and Fair Enforcement Banking Act (SAFE Banking Act). This Act would provide banks with regulatory protections, allowing them to offer critical financial services to cannabis businesses without risking the loss of their banking charter.

As the 2024 elections loom, the stakes have never been higher for passing the SAFE Banking Act.

Cannabis Legalization is On the Rise

As of August 2023, 40 states, four territories and the District of Columbia have legalized medical or adult use cannabis. While some states have moved more slowly, the entire West Coast (including Nevada and Colorado) has voted to pass laws allowing the sale and purchase of adult use cannabis. Most of the East Coast has followed suit; New York, Pennsylvania, New Jersey and Massachusetts have all voted to regulate cannabis. It has become evident that the majority of U.S. citizens are now comfortable with legalized cannabis (156 million people live in jurisdicitons that have legalized adult use).

Banking Roadblocks for the Cannabis Industry

Under current federal policy, banks and other large financial institutions face regulatory restrictions that make it challenging to provide the most basic services to local cannabis companies, regional cannabusinesses and MSOs (Multi-State Operators).

Federal anti-money laundering laws and related record-keeping regulations, such as the Bank Secrecy Act (BSA), have presented complex compliance protocols that prevent banks from meeting the business needs of local growers, manufacturers and dispensaries. Local cannabis business owners are therefore put in a difficult position, as they must balance daily business activity against the potential dangers of operating as a cash-only business.

How Would the SAFE Banking Act Help Banks Serve the Cannabis Industry?

The proposed SAFE Banking Act would protect banks from federal penalties for offering their services to cannabis businesses in states with regulated cannabis industries. Critically, the bill would shield banks from losing their deposit insurance. Without reform through the SAFE Banking Act, financial institutions will remain essentially prohibited from working directly with legal cannabis companies.

What Will It Take to Pass the SAFE Banking Act?

While the bill has successfully passed in the House of Representatives seven times, it has yet to pass in the Senate. Considering the current political climate, the clock is ticking to finally pass the SAFE Banking Act in the Senate.

Policymakers may need to introduce the Act as a stand-alone bill that outlines clear objectives and specifically addresses the issue from a public safety perspective. Cannabis is a hot-button issue, so adding additional legislation will muddy the water and make it easier for Senate members on the fence to vote against the bill.

Cannabis industry representatives and political allies must be strategic in navigating the bill’s potential passage and take the process step by step. First, the SAFE Banking Act must pass to allow cannabis businesses the opportunity to stabilize, grow and prosper. As the sector grows stronger and more accepted by mainstream America, more progressive bills can be introduced and will have a greater chance of successful passage in the House and Senate.

The SAFE Banking Act is an Issue of Public Safety

Every day the Senate chooses to sit on their hands, they put more Americans in harm’s way. This is unacceptable.

Because dispensaries and other cannabis businesses must process daily transactions without basic banking services, they often accumulate large amounts of cash. Dispensaries are, therefore, frequent targets for criminals. Even as the cannabis industry matures and contributes significant tax dollars to State coffers, banks and financial institutions have no choice but to sit with their hands tied, watching with horror as organized criminals literally take aim at dispensary staff.

The passage of the SAFE Banking Act is literally life and death for many cannabis industry employees. How many workers and customers must suffer harm before the Senate wakes up and passes this critical bill? Regardless of their stance on cannabis, members of the Senate must do their jobs, heed the will of the American people and pass the SAFE Banking Act to rectify this increasingly dangerous situation for the good of their constituents.

extraction equipment
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How Automation Drives Performance Advantage in Vaping

By Jacob Haugen
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extraction equipment

The vaping technology market is a constantly evolving landscape, driven by the changing needs and preferences of consumers. Staying relevant in this competitive market requires companies to deliver exceptional vape experiences. Airo Brands has risen to the challenge since its inception, offering a diverse product portfolio that includes multiple vaporizers, pod blends and flavor combinations, all crafted with the latest technology, natural ingredients and intuitive features. Airo Brand’s commitment to delivering state-of-the-art products has resulted in impressive year-over-year growth and expansion into new markets.

Maintaining Consistency Across a Diverse Product Portfolio is Challenging 

With three types of vaporizers and an array of cartridge oil formulations, Airo Brands needed a machine that could accommodate various products, streamline operations and produce consistent, high-quality devices to grow the business. But given Airo’s complex product offering, there were potential challenges with oil viscosity, temperature and dispense control, making it essential to find a reliable machine that could switch between products easily and streamline operations without compromising quality.

Finding an Easy-to-use Machine that Evolves with Time is Critical 

Airo Brands recognized the significance of investing in a machine that could handle product variations, was simple to use and could accommodate their growing footprint. Airo Brands turned to Thompson Duke Industrial, an original equipment manufacturer that creates automated solutions for filling and capping vaporizer cartridges. Early on, our teams worked together to test and revise a custom septum-fill adapter to fit their needs. Airo was impressed with our availability to troubleshoot issues and come up with solutions in real-time. As the industry evolved, Airo Brands updated to a new cartridge design and switched to automated machines, a transition that our machinery and team handled with ease.

With Thompson Duke Industrial’s IZR machine, Airo Brands’ partners can fill a variety of different products, up to 30 variations. The machine’s straightforward design allows its operators to turn over and switch between various products in only a few minutes. The IZR’s simplicity and efficiency with setup, clean-up and maintenance make a huge difference in output. Airo now has the ability to train partners on how to fill their products with one machine versus several, which has also been a huge advantage.

Strong Partnerships Go a Long Way 

As a result of our partnership, Airo Brands was able to implement automatic solutions that evolve with the industry to accommodate its diverse product portfolio and growing footprint. Erik Stewart, COO of Airo Brands said, “Thompson Duke Industrial’s machinery handles viscosity, temperature, and processing challenges with ease – and this is exactly what we need to create consistency and quality across our growing business.”

How to Choose the Right Equipment to Set Up Your Business for Success

When choosing cannabis equipment, it is important to work with a partner who is capable of developing innovative solutions that align with evolving industry needs. In the world of machinery, simplicity is key. Streamlined setup, uncomplicated maintenance processes and quick product turnover enhance operational agility. For companies managing multiple partners, the ability to train teams on a single machine is also an advantage.

As your business expands into new markets, consider your equipment’s adaptability, scalability, and capacity to deliver high-quality consistent products. Airo Brands is an example of how automation can drive unprecedented growth. Due in part to the introduction of efficiencies and speed through automation, they were able to expand their footprint across 17 states and increase their SKUs, rising from 38 to 180.

Cannabis Social Equity: Paving the Path for Inclusive Economic Opportunities

By Annu Khot
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The cannabis industry isn’t a level playing field. It’s disheartening to say. But as someone who has been building a soon-to-open dispensary for the last three years, I’ve experienced this lack of equity firsthand.

It starts with the industry’s foundation. We’re in an era where anyone can start a business. Create a logo, launch a website and upload promotional content on social media. A few clicks and…boom, you’re a business owner. Lovely, but absolutely not the case for the cannabis industry.

Getting started is no easy feat.

Budding cannabis entrepreneurs (pun very much intended) need a ton of capital in order to get started. And as cannabis isn’t federally legalized, entrepreneurs don’t have access to traditional banking loans. They either need to fund their cannabis venture with their life savings or turn to family, friends and their community to fundraise. Unfortunately, not everyone has such privilege or access. This reality contributes to the industry’s unequal playing field – and due to a lack of legalization, shows no signs of letting up.

Jessica Gonzalez

Jessica Gonzalez, a Jersey City-based attorney and cannabis advocate, spoke to this challenge in a recent NJBiz interview. “It’s extremely expensive to enter and survive in this industry, and given the limited capital options, you are forced to seek private investors – which opens a whole can of racial and gender bias. The need to stay capitalized, coupled with constantly changing regulatory environments, expensive service professionals, lack of real estate, a social stigma and IRS tax code 280E, creates high barriers to entry and high survival barriers.”

As Gonzales notes, funding is just one piece of the puzzle. Once you’ve secured said funding and have decided to start a cannabis venture, you’re navigating a minefield of ever-changing regulations. This demands the help of pricey service professionals–attorneys, operators, marketers and more–who remain abreast of current laws and have the subject matter expertise to properly guide you.

The issues with the cannabis industry are clear – funding is difficult to secure, marketing is nearly impossible and pricey consultants are table stakes. On the bright side, operating in cannabis isn’t all doom and gloom. Solutions are ahead–and they’ve been baked into the operating strategy of many fantastic, social-equity led dispensaries, includingSocíale, the soon-to-open Park Ridge, IL dispensary. While getting started is no easy feat, as leaders, we should each take it upon ourselves to empower those wanting to work with this life-changing plant by developing an industry that’s ripe with endless opportunities.

Economically empowering employees should remain top-of-mind.

The lack of equitable wealth creation in the cannabis industry bolsters its inaccessibility. It’s unfair that if a dispensary or cannabis business succeeds, only the entrepreneur wins financially. Yes, employees may get a small discretionary bonus at the end of the year – but they’re not woven into the fabric of the business’s profitability. Employees – and those earlier in the value chain, like growers – are left out in the cold, while dispensary owners seek to profit immensely.

Personally, when I started in the cannabis industry, I thought this dichotomy was blatantly unfair – and vowed to be a powerful force in changing that. At Socíale, profit sharing is a part of our DNA. Employees will take part in dispensary profits from the day they start. This way, everyone wins–and if employees decide to start a cannabis venture of their own, that ambition is more in reach. This is a massive piece of what the cannabis industry preaches when it has conversations surrounding social equity. It’s time the industry and its leaders back up this ideology with a plan of action. Embracing the concept of ownership not only among founders and senior leaders, but among employees at all levels, can provide a valuable taste of entrepreneurship. Situations like these often empower employees economically to create lasting changes for not just the company they’re working for, but for themselves and their families at home.

Social equity license holders should pay it forward. 

Social equity dispensaries should embrace the pay-it-forward mentality among the communities of which they serve, especially those disproportionately impacted by the War on Drugs. It’s unfortunate to see dispensaries falsely advertise with a “social equity” label, merely for the vanity of it all.

Socíale is beholden to certain promises we made to the state of Illinois, who granted us our social equity license. This includes employing people from under-represented communities and advocating for cannabis social justice – two causes that we’re deeply committed to. As we look to shape the future, let’s remain hopeful about what it holds. Collaboration over competition needs to be the motto. If we all partner together to think beyond profits and aim to better the greater cannabis community, we’ll all be better off.

Safety & Compliance in the Absence of Regulatory Clarity & Consistency

By Joel Chappelle
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As the legal landscape surrounding cannabis continues to evolve, the creation of robust, sensible and consistent safety regulations remains stalled. A patchwork of broadly inconsistent state rules and regulations, along with years of federal inaction and policy stagnation have the potential to create significant risks for consumers. Given the industry’s explosive, multi-billion-dollar growth, consumers have access to an ever-increasing number of products produced by an increasing number of actors, pursuant to widely divergent standards and rules. Given this, the industry would be well-served to take on the responsibility of promulgating a coherent regulatory framework with robust (but sensible) safety regulations. The importance of collaboration among cannabis industry stakeholders cannot be overstated if we are to develop and adopt consistent standards that guarantee product safety at every step of the supply chain.

Joel Chappelle, along with several renowned experts, will lead the Seed to Sale Safety Workshop at the Cannabis Quality Conference this October 16 in New Jersey. Click here to learn more. Inconsistencies in safety standards and regulations open the door to a range of potential hazards, including contaminant risk, labeling accuracy, potency quantification and many others. Absent a clear understanding of seed-to-sale risks, many of which are not even mentioned in state regulations, cannabis companies face significant exposure, often without even knowing it.

To mitigate these risks, it is vitally important for the cannabis industry to collaborate in the ongoing development of safety standards. This means understanding and implementing safety measures starting with the cultivation process. Careful consideration should be given to factors such as the use of pesticides and herbicides, soil quality and irrigation methods. Standardized safety testing to ensure uniformity between products for potency, contaminants, heavy metals and microbial organisms is crucial to consumer safety. Accurate and comprehensive labeling is likewise necessary for consumers to be adequately informed.

For as long as consistent state and federal guidelines governing cannabis safety remain elusive, the need for industry self-regulation will be paramount. Cannabis companies must work together to share best practices, establish standard operating procedures and adopt stringent safety measures. By promoting transparency and collaboration, stakeholders can build credibility and consumer trust while fostering a safer and more reputable industry.

As the industry continues to grow, it is incumbent upon all stakeholders to continue prioritizing consumer safety through, among other things, a focus on education and inter-industry collaboration, if we are to continue cultivating a trustworthy and sustainable cannabis market for the future. The path forward will require stakeholders to pursue continuous education, improvement, and collaboration in the development of a holistic safety framework capable of ensuring consumer safety.

Five Ingredients for a Successful Cannabis License Application

By Sara Gullickson
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In the rapidly evolving cannabis industry, in both new and emerging markets, securing a cannabis license is an essential step to establishing a successful business. However, navigating the application process can be complex, challenging and highly competitive.

To help aspiring entrepreneurs and investors in this burgeoning field, The Cannabis Business Advisors founder and CEO, Sara Gullickson, shares her top five ingredients for a successful cannabis license application. According to Gullickson, who has secured more than 75 licenses in over 30 states and five countries, these ingredients, when combined strategically, can significantly increase your chances of obtaining a coveted license and positioning your cannabis business for long-term success. 

1. Real Estate

The author, Sara Gullickson (left) with Maxime Kot (right), president of The Cannabis Business Advisors

Real estate is the foundation of success. One of the key elements in a successful cannabis license application is securing suitable real estate. Many markets require applicants to have a designated location or property before even applying for a license. Finding the right property that complies with local zoning regulations and satisfies the specific requirements of cannabis operations is crucial. Partnering with experienced real estate professionals who understand the intricacies of the industry can be invaluable. By securing a well-suited location, you demonstrate to regulators your commitment to compliance and responsible business practices.

2. Finance

The cannabis industry brings its own set of unique challenges to navigate. The federal illegality of cannabis creates significant obstacles when accessing traditional banking and loans. Therefore, having a smart financial advisor and a comprehensive financial plan is essential for a successful license application. A well-prepared financial strategy, including accurate budgeting, projections and contingency plans, showcases your ability to manage financial resources effectively. It also demonstrates to regulators and investors that you have a sustainable and profitable business model, even amid industry uncertainties.

3. Community Support

Building strong relationships with the local community is crucial for a successful cannabis license application. Engaging with community leaders, neighborhood organizations and residents is a way to demonstrate your commitment to being a responsible and contributing member of the community. Actively seeking input, addressing concerns and incorporating feedback can help alleviate potential opposition and increase your chances of receiving support from local authorities during the licensing process. Community support is a powerful asset that showcases your dedication to fostering positive change and creating economic opportunities within the region.

4. Industry Experience

Value the expertise of the pioneers. While the cannabis industry is still nascent, there are seasoned industry pros who have been navigating its intricacies for over a decade. Leveraging their expertise and industry knowledge can be instrumental in crafting a successful application. Collaborating with experienced consultants and advisors who understand the unique challenges and nuances of the cannabis industry can provide invaluable guidance throughout the licensing process. Their insights into compliance, operational best practices and regulatory requirements can help you develop a robust application that stands out among competitors.

5. Team

The composition of your team is the cornerstone of your success and plays a vital role in the success of your cannabis license application. Assembling a knowledgeable and diverse team with expertise in various aspects of the industry is essential. From cultivation and manufacturing to retail and compliance, each team member should bring specialized skills and experience that align with your business objectives. Demonstrating a well-rounded team with a track record of success increases your credibility and instills confidence in regulators and investors alike. Your team represents your brand and serves as the backbone of your operations, making it crucial to prioritize hiring and cultivating talent.

Securing a cannabis license is critical to establishing a successful business in the rapidly growing cannabis industry. By focusing on real estate, finance, community support, industry experience and a strong team—you can significantly enhance your chances of success in the licensing process. Partnering with experienced consultants, leveraging the knowledge of industry veterans and demonstrating a commitment to compliance and responsible business practices will position you for long-term success in this dynamic and evolving industry.

An Inside Look at the Creation and Growing Popularity of Solventless Cannabis Products

By Tim Nolan
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A top product trend this year is the rise of solventless cannabis products, according to recent statistics from cannabis market analyst firm BDSA. In fact, from June 2021 to June 2022, BDSA research also showed that the category grew an average of 132% each month.

Copperstate Farms

Nearly all cannabis products start with cannabis concentrates, which are made with a solvent that contains the desirable compounds from cannabis. Solventless concentrates however are made from the cannabis flower without the use of any chemicals and are becoming popular among businesses and consumers. This broad category of cannabis products includes everything from hash to live rosin.

Mitch Lindback, Lab Director at Copperstate Farms, has been growing and extracting cannabis for 15 years and has over a decade of experience working with cannabis derivatives. “Solventless is the truest expression of the cannabis plant,” he says.

Copperstate Farms is one of the largest greenhouse cannabis producers in North America and home to 1.7 million square feet of canopy and 40 acres under glass. Here is an inside look into the company’s solventless creation process:

The Harvest

One of the most important growth factors in cannabis is light, so cannabis grown in full-spectrum light often brings the best flower to harvest. In the weeks before harvesting, the lab conducts a test wash on cannabis plants before hand-selecting which will be used in rosin. Plants are selected based on appearance, aroma and test wash results. On harvest day, all flowers are lightly hand-trimmed and frozen within two hours of harvest.

The Wash

The wash system

Using only chilled RO water and minimal ice, our cannabis extraction experts gently break the trichome heads off the fresh-frozen cannabis using a stainless-steel wash system, by gently agitating the flower. Then they collect the 73μ-159μ trichome heads while pushing the immature trichome heads and stalks to pass through collection bags with a cold spray wash.

The Press

After carefully freeze drying, sifting and packing the hash into double-wrapped mesh rosin bags, Copperstate Farms uses rosin presses to gently express the nectar from the trichome heads using a little heat and a lot of pressure.

The Cure

All live rosin goes through a minimum 7-day cure. “We have found through extensive analytical testing that curing rosin for a minimum of seven days increased its terpene content by over 30 percent,” Lindback says.

The final product: live rosin

The extensive process to create solventless cannabis products is time and energy intensive, but leads to quality offerings, like full melt hash and live rosin. In fact, the solventless category is “primed for premiumization and growth in legal cannabis markets,” according to BDSA retail sales analytics. This is especially true in the dabbable concentrate product category and predicted in the vaping concentrate category as well.

With popular annual holidays like 7/10 (the cannabis community’s holiday for celebrating oil products, dabs and concentrates) gaining traction, solventless products are predicted to grow in market share and are worth cannabis companies looking into producing as demand rises among consumers who are always looking for innovative products that feature solventless concentrate.

To learn more about Copperstate Farms, visit www.copperstatefarms.com.

Beyond Compliance: Leveraging Packaging to Build Brand Identity & Loyalty

By Jack Grover
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Ten years ago, “cannabis packaging” didn’t extend very far beyond throwing buds into a plastic baggie – in fact, the term wasn’t even really a recognizable category. The lack of product packaging attention-to-detail was understandable at the time; the industry was still predominantly underground, and brands were much more focused on staying afloat amidst global prohibition and crackdowns.

Fast forward to today’s cannabis landscape, and it’s practically unrecognizable. Brands have figured out that, not only is proper cannabis packaging essential for providing consumers with a safe, reliable product, but it offers businesses an inimitable opportunity for marketing to their audience and establishing brand identity.

Because of this, the legal industry has gotten increasingly creative and playful with their packaging, using the space to connect with their audience, leave a lasting mark and obtain that covetable consumer loyalty the retail world is always hungry for.

The beginnings of cannabis packaging: Preserving integrity in a growing market

I entered the cannabis world as a home grower – exclusively for my brother, who has pretty intense cerebral palsy and gets tremendous medicinal relief from the plant. I’ve been growing for him for years, and in my earlier days I found myself losing a lot of cannabis to the elements as time passed: mold, pests, etc. I figured there had to be a better way to preserve what I was cultivating for long-term storage.

After visiting a dispensary in Colorado to get some ideas, I realized all of their packaging was overkill. It didn’t do anything to actually nurture the plant, or give it what it needs for successful lasting preservation. So, I got even more interested.

I started looking into what chemically happens to cannabis after you dry it and I discovered there was no real information on the topic yet. So, my team and I started looking into how we could contribute to this arena – sort of creating this whole new category and awareness around curating, storage, long-term plant viability, shelf life and conditions for quality cannabis.

We looked at a variety of elements for proper packaging – like UV protection, humidity and moisture control, odor control and oxygen control – and worked hard to develop some materials that would factor in all of these considerations for an end-goal that I believe should be universal.

When it comes to cannabis packaging, the most important thing you should be thinking about is integrity throughout the supply chain: delivering products to patients in the way that it was intended to be delivered from the grower for optimal medical results.

Proper packaging is critical for the industry. It contributes to operational efficiency, eliminates waste, maintains full moisture and humidity rates and helps businesses protect their bottom line.

It allows operators to deliver better, more viable and more potent medicine to patients – and that is absolutely what’s most important. Giving patients the full efficacy of the plant, unadulterated and unmolested by the supply chain.

Utilizing cannabis packaging as a powerful marketing tool

That’s how cannabis packaging was first developed – to protect products and keep them safe and effective for consumers. Since then, the sector has totally evolved to encompass even more elements. There’s a lot more education about drying and curing, and how to preserve the integrity of cannabis as it moves from seed to sale.

Brands have also started recognizing a dual opportunity alongside safe cannabis packaging: an effective means for marketing and advertising. In a space where we’re so restricted on how we market our brands, having great packaging is beautiful, convenient and reminds the patient of the brand behind the product they’re currently enjoying.

This is a critical opportunity for brands to cement their reputation and form a relationship between themselves and their clients. “Consumer loyalty” is a magic term that a lot of brands are chasing today, and the biggest way to achieve that is with consistent, high-quality packaging that allows operators to maintain integrity within a supply chain they just can’t control.

Cannabis packaging is the consumer’s first reaction to your product. It’s the plating. And the way it’s presented has a major effect on how customers view your brand. Think of your packaging as a type of billboard: every consumer carrying around a branded bag of your pre-rolls is a walking advertisement and ultimately an ambassador.

The 12-inch vinyl LP cover art of our generation is the one-eighth flower pack. Just like those records are all music, these packages are all cannabis, but these brilliant creatives all over the world are getting to attack an identical canvas with radically-different approaches and aesthetics.

It’s a ubiquitous thing – like designing a watch. From Timex to Rolex, all of these brands have been creating iterations from the same basic layout to do the same basic thing: tell time. That is constraining, but it also pushes people to get really innovative and imaginative.

In the cannabis realm this is just the beginning of utilizing packaging for brand identity and loyalty. Innovating your cannabis packaging provides an incredible framework for seeing different ideas and inspirations come to life. It’s a cannabis collaboration with artists in its most newborn infancy and there’s a lot of exciting potential there. Beyond a billboard and a brand voice, packaging is a keeper of the quality, consistency and potency your customer deserves.

Retail Shrinkage and Navigating Loss Prevention in the Cannabis Industry

By Dawne Morris
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In the regulated cannabis sector, retail shrinkage is a concern as business owners must navigate tight regulations in an often cash-only environment combined with the usual causes of retail shrinkage, including theft and inefficient operations.

Retail shrinkage occurs when a company loses inventory from causes other than sales—and it’s a problem that costs companies $100 billion annually, according to the National Retail Federation’s (NRF) 2022 National Retail Security Survey (NRSS). The cannabis industry is not immune.

Utilizing Technology to Combat Retail Shrinkage

The 2022 survey estimates that 65% of inventory loss is due to theft, a trend that is expected to continue with the rising cost of goods. Other factors may include administrative and human error. Nearly half of the retail respondents reported an increase in technology spending to combat these threats.

In Q1 of 2023, Proteus 420, an online enterprise resource planning (ERP) system for highly regulated industries, including alcohol and cannabis, saw a substantial uptick in POS software requests, in part attributed to the need for additional automation and auditing tools in order to more easily and accurately monitor and control inventory.

Physical security measures can aid in loss prevention

In the cannabis industry, along with a challenging regulatory environment, retail businesses are facing declining sales. Loss prevention is where dispensaries can protect their bottom line with a targeted approach and the right system in place.

How can cannabis businesses do this? By avoiding antiquated spreadsheets and by having the ability to quickly analyze vast amounts of data. Business owners should be proactive and utilize technology, such as a quality ERP system, to mitigate risk and safeguard inventory.

When choosing a software provider, cannabis retailers should focus on systems that offer day-to-day support and emergency assistance, and systems that can seamlessly monitor employees, cash and inventory. Software, and employees who work with it, should also be able to track and trace compliance, identify suspicious transactions and look at data from multiple locations. Detailed reporting is crucial from a compliance perspective.

Loss Prevention Practices

Because cannabis is a heavy cash-only industry, having the right tools to monitor the physical cash as it moves through your business is necessary to prevent loss. This is done with cash drawer-specific transaction tracking, employee module access, and the ability to open and close drawers at the employee level.

Here are some of our top loss-prevention tips:

  • There should always be multiple eyes on cash and products. Managers and assistant managers should always verify counts of cash and products as a check and balance measure.
  • Make sure employee access to your POS or operational system is granulated. This means that different positions have varying levels of access and capabilities.
  • Have a solid inventory auditing process. To stay on top of this, make sure that your staff and system can do spot inventory audits and can track the audits long-term.
  • Have physical security measures in place. This can include security cameras and alarm systems and a dispensary designed to keep inventory strategically placed.
  • Build a workplace culture that empowers employees to feel ownership in their work and feel accountable for loss prevention in their This includes emphasizing the policies and procedures needed for loss prevention, including consequences for theft. This culture is not an overnight process but develops over time.

The Right Employees Make a Difference

The first line of defense against product or cash loss is your employees

In addition to the right technology and prevention practices, the first line of defense against product or cash loss is your employees. From your budtender to your general manager, you need to make sure the right people are in place in the correct positions for fair compensation.

Some questions you can ask yourself during the hiring process include:

  • Do they have the right experience for the position?
  • Are they motivated, flexible, detail-oriented, team players?
  • Are they passionate about cannabis and want a future in the industry?
  • Have you checked their references?
  • Things move fast in the cannabis sector – are they willing to learn new skills?

Once you have the right people, do they have the standard operating procedures (SOPs) needed to do their jobs? If not, it’s time to create them.

When it comes to loss-prevention, you must trust that your cannabis point-of-sale and operations ERP system will monitor and provide the needed reports. You can also make sure there are additional measures in place to prevent retail shrinkages, such as empowered employees and solid loss prevention practices so that your inventory and cash stay right where they belong until sold.