Search Results for "massachusetts"

New Hampshire Governor Not Ready to Legalize Cannabis

During an interview with WCVB 5 “On the Record” New Hampshire Gov. Chris Sununu (R) said he was still unsure whether the state was ready to legalize cannabis for adult use, although he admitted he likes the bill currently being considered by lawmakers.

Sununu said that he doesn’t think it is the right time to legalize cannabis in the state as officials have just gotten the opioid crisis under control. He noted that New Hampshire is the only state that did not see an increase in opioid-related deaths last year.

“If you’re gonna do it, that’s the way to do it. But I just think we’re seeing – we’re the one state that’s seeing really positive results [from efforts to address the opioid crisis] – we’ve got a long way, of course, I mean almost 400 people died last year [from opioids]. The rest of the country has doubled their opioid deaths, we’re down 18% in the past three years.” – Sununu on “On the Record”

Both of New Hampshire’s border states, Massachusetts and Vermont, have legalized cannabis for adult use. Sales to adults began in Massachusetts in 2018 while Vermont’s initial bill in 2018 legalized possession and use but not sales – a separate bill to allow sales was passed by Vermont lawmakers in 2020 but sales have yet to commence in the Green Mountain State.

New Hampshire lawmakers in 2017 approved a bill to decriminalize possession of up to three-quarters of an ounce of cannabis – which was signed by Sununu – while the state House of Representatives approved a broad legalization bill in January. The passage marked the fourth time in three years the lower chamber has approved the reforms.

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Charlotte Hanna: Building a Vertically Integrated Social Impact Cannabis Brand

Massachusetts was one of the first East Coast states to legalize cannabis for adult use and companies like Community Growth Partners are setting the industry standard as they grow alongside the developing industry. With Community Growth Partners’ first entry into the space, the Rebelle retailer located in the Berkshires, the company is carving out its own corner of the industry through its community-first, woman-focused philosophy.

In this Q&A with Founder & CEO Charlotte Hanna, we talk about her corporate background from before entering the space, how the company learns about and responds to consumer habits, plans for renovating historic Berkshires buildings for the cannabis industry, what the future looks like as they vertically integrate, and more!

Read the full interview below:


Ganjapreneur: After decades in finance, real estate, and philanthropy, why were you drawn to the developing cannabis space?

Charlotte Hanna: Well, there are a lot of reasons that make cannabis appealing — we’re helping shape a completely new industry here on the East Coast and helping change peoples’ hearts and minds about this plant. I see all of us in the cannabis industry as change-makers — and as a woman and a mother, I feel I have a special place in the public discourse about cannabis. We’ve used this plant as a weapon to hurt communities — I’ve seen it first hand in my decades working on homeless and hunger issues. So the prospect of being able to bring a significant focus on social equity and social justice to this emerging industry was a big part of what drew me to cannabis. Conscientious capitalism is our way of doing business — it’s hard work but we’re all dedicated to our social purpose and I’m so fortunate to have a great team all committed to our corporate values.

The Rebelle retail shop is in a renovated, 100-year old farmhouse on a scenic half acre. How did you find this property and what aspects of the space were attractive to carrying out the Rebelle mission?

The Berkshires and other neighboring communities like Litchfield County in Connecticut and the Upper Hudson Valley all make up a big growing region in the Northeast. It has always drawn artists, wellness seekers and more recently many entrepreneurs have started decamping to the area to set up or expand businesses. I wanted to be part of not only this new industry — cannabis — but also a broader growth story that I saw emerging in the region. For example, Miraval spa — which is based in Sedona, AZ — recently joined Canyon Ranch to open a luxury spa not far from our store. For all these reasons, I felt the area was a perfect location to put down roots and share the wellness attributes of this plant that has been celebrated by cultures around the world for centuries. We bought an old farmhouse — in need of some TLC — and transformed it into what I’m proud to call one of the most beautiful, warm, and inviting dispensaries in the Northeast. I love finding something that hasn’t had the proper attention paid to it and bringing it back to life and giving it a purpose. We’re doing the same thing with an old mill building we’ve renovated and are turning into our cultivation and manufacturing site too.

The Danish concept of ‘hygge’ is the inspiration point behind the interior design at the Rebelle retail shop. How have you leveraged a comfy, cozy interior design to influence consumer habits?

I’ve found that many dispensaries often have a sterile feel — probably vestiges of the original medical marijuana days. But as the times change and more consumers enter the market it’s important to present alternative types of design aesthetics to appeal to different types of consumers. I’ve always been attracted to the Danish concept of hygge which refers to finding comfort, pleasure, and warmth in simple, soothing things such as a cozy atmosphere or the feeling of friendship. This was the vibe I wanted to create in the store to further normalize cannabis and show what a welcoming part it can be to anyone’s life. I felt this would make us memorable. In addition, it really does influence the way people shop — being able to browse and interact with the products while feeling comfortable has resulted in customer loyalty. The overall feel and experience support our philosophy that we are not here just to transact, we are here to help, educate and serve. We are your friends in cannabis.

Does the retail store map consumer habits to improve the overall experience? What kind of changes have you made as a response to consumer feedback both in-store and online?

Our retail store is definitely consumer-driven, we try to let our customers speak to us and do our best to listen and put the feedback into action. For instance, we’ve remodeled our browsing station to reflect consumers preferences to both shop the shelves and a digital menu. We continually gauge reactions to interior displays and evolve with the customer. We believe the experience is just as important as the product, so we encourage customers to reach out through our digital platforms, our call center and of course by just stopping in and speaking with one of our experienced sales associates.

Community Growth Partners (CGP) plans to be a vertically integrated cannabis company. What kind of cultivation methods will you use to grow Rebelle flower?

We’re completing construction at our 28,000 square foot cultivation, manufacturing and delivery distribution facility in Northampton, MA which we expect to open this spring. We’ll be initially growing indoors since high quality exotic indoor strains command higher prices even when markets mature and prices decline. We’re also introducing some new form factors we’ve been developing with a partner in California. I’m most excited about new product development — and designing ways to consume that feel socially acceptable to newer consumers. More to come on this front this spring. Check back in with us online to learn more!

What inspires your community-driven philosophy as you grow Rebelle into a vertical operator?

I believe that by helping people as part of our growth initiatives and as a way of doing business, you not only help communities but also become part of a new way of doing business. We need to shatter the stigmas that have unjustly crippled so many. Our mission is to make social justice and equitable practices the new norm and to shift the perception of cannabis as a whole. To really understand this approach, we first need to examine the types of changes we want to see in the industry. By becoming ingrained in these communities that have been most affected by the unjust laws and helping to build back from the ground up, we will give people the skills and opportunity they will need to succeed and make a serious change. Our grow operation is closer to Springfield and many other areas of disproportionate impact and will give us the opportunity to provide more jobs, more opportunity to earn stock in the company and make our small contribution to improving the communities where we operate.

Has the Rebelle brand launched any cannabis products? What vertically integrated products are currently in development?

We currently have a team working on product development for a line of wellness products that we anticipate launching this spring. I’m not ready to reveal too many specifics about the product line just yet, but I will say that it will definitely help fill the current gap in the MA market for a thoughtful and expertly engineered wellness collection of cannabis products. I have always believed in the healing powers of this plant and am very excited to expand into this category.

Rebelle sells a line of accessories like ashtrays, rolling trays, and stash bags, how are these products designed and/or sourced?

Rebelle has a wide variety of accessories that we source from multiple vendors from all over the country. They include hand-made bongs, specialty pipes, custom branded rolling papers, and high-performance portable smoking accessories. In addition, we offer a limited edition collection of handmade bags designed by founder Charlotte Hanna. This collection is made right in the heart of New York City and sources the finest materials for the perfect odor-resistant carry case. Travel in style with your favorites ready at all times. It’s the ultimate accessory for an elevated cannabis lifestyle.

CGP identifies as a conscientious capitalist business model, a just capitalist enterprise. What does a just capitalist model look like in application, and why is this distinction essential to the brand mission?

The key differentiator between these two models is that ours aims to truly teach our employees how to generate personal wealth, and aims to make an impact in the community. This also means putting programs in place internally which support these goals. For instance one of our primary components of this is our employee stock program, where all employees can qualify to receive company stock regularly in addition to their paid compensation. Not only does this instill a more tightly knit and committed mentality among the company, but provides a real tangible asset to the workforce. One which they can leverage for their benefit across their entire time at the company.

How does CGP contribute to the surrounding Berkshire County, Massachusetts community?

We have a couple of interesting initiatives we participate in which are aimed at connecting and supporting the community. One of which was our charity donation and accompanying donation match program for our neighbors, Volunteers in Medicine who provide healthcare to those who normally would have limited or no access to it. Beyond our general charitable work and commitments, we also work with a nonprofit called Roca. They provide job placement, support services, and an access point to the industry for young people who have been negatively impacted by the war on drugs. We partner with them as an employer to help open up opportunities in the cannabis industry and aid in establishing career paths for those young people.

Why did CGP establish a partnership with the diversity and equity-driven organization Roca?

Apart from the fact that everything they are doing is everything we believe in, our team and the team over at Roca just meshed on a personal level. We really have values and objectives that are in sync. When you find a partner trying as hard as they are to do the right thing you partner with them, and quickly! I see Roca as an essential piece of the puzzle for us, if we didn’t partner with them or somebody like them we wouldn’t truly be doing our part.


Thank you, Charlotte, for answering all of our questions! To learn more about Charlotte and/or Community Growth Partners, visit CommunityGrowthPartners.com.

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Parallel CEO Apologizes, Calls Out Corporate Cannabis Lobbying in Open Letter

James Whitcomb, CEO of multistate cannabis operator Parallel, published an open letter today decrying systemic inequities in the cannabis industry and pledging to support fundamental changes to make the industry more equitable. The letter highlights a failure by Parallel and other multistate operators (MSOs) to honor the “social responsibility” that comes with operating in the cannabis industry, which was built on tireless advocacy work and which exists alongside ongoing racist and classist drug-related persecution of disenfranchised communities.

In the letter, Whitcomb admits: “we did not take the time to honor the long-time cannabis producers … who laid the foundation for us,” that “we did not follow the path laid out by activists … who fought for our right to participate,” and “we did not understand the [industry’s] responsibility … to use legal cannabis as a tool for restorative justice.”

“As the new CEO at Parallel, I pledge that going forward, Parallel will be a model among all large cannabis operators in bridging the business with the social responsibility of our industry,” he writes.

Referencing the Minority Cannabis Business Association’s (MCBA) recent National Cannabis Equity Report — which analyzes inequity in the industry and provides a toolkit for recognizing and rising to the social responsibility that comes with working in cannabis — Whitcomb pledges to “commit our resources to help advocate for the fundamental changes the report highlights as necessary for the cannabis industry to become truly equitable.”

The letter also seems to confirm suspicions held by many independent cannabis operators that large trade organizations which cater to multistate brands are maneuvering to make the industry difficult to enter for smaller startups and legacy growers. “It’s time for us as a multi-state operator to stop hiding behind the veil of ‘safety and transparency’ that has led to … exclusionary, protectionist policies,” Whitcomb wrote.

Given that Parallel is itself a multistate brand, and one that counts billionaire chewing gum heir Beau Wrigley among its founders, some in the cannabis industry will likely view this move with a healthy degree of skepticism. When asked about this specifically, Whitcomb said, “We have a lot of work to do to win people’s trust. For people who are skeptical, I ask them to pay attention and hold us accountable. If we fall short of the commitments we are making, I want to hear about it.”

Amber Littlejohn, Executive Director of the MCBA, said in an emailed statement to Ganjapreneur, “I commend James and Parallel. This isn’t an MLK post on social media or even a single social equity investment. This is stepping up to lead and call for systemic change to create real equity instead of playing kingmaker to a handful of businesses in an otherwise captured market.

“Markets captured by a few will never out-compete the legacy market that doesn’t carry the extraordinary compliance costs of legal businesses,” Littlejohn said. “Good companies, with good products, who are truly committed to equity should have nothing to fear in opening the industry to others. In fact, they are leveling the playing field.”

When asked how Parallel plans to make this a lasting change, Whitcomb told Ganjapreneur the company will be “implementing several initiatives internally and externally” to help jumpstart the process, but “the most important change … is the way in which we lobby or advocate for expansion of the markets in which we operate.”

“The big operators in our industry must stop pretending that the best way to grow a cannabis market and create opportunities for economic empowerment is by concentrating all the opportunity amongst a few large companies. It hasn’t worked. We will no longer advocate for the exclusionary, protectionist policies that have allowed MSOs to dominate legal cannabis markets, and we hope our fellow large cannabis companies will join us in advocating for the end of an industry structure that has largely blocked people of color from using cannabis as a pathway to economic empowerment.” — James Whitcomb, CEO of Parallel, in a statement to Ganjapreneur

Parallel holds multiple cannabis industry licenses across a mix of medical and adult-use markets — the company operates in Florida through the Surterra Wellness brand, in Texas and Pennsylvania under the goodblend brand, in Massachusetts as New England Treatment Access (NETA), and in Nevada through a joint venture with Cookies.


Read Whitcomb’s full letter below:

If only we knew then what we know now. When we started Parallel (then Surterra) in 2016, those of us jumping into the legal cannabis market for the first time made a number of mistakes: we did not take the time to honor the long-time cannabis producers and suppliers who laid the foundation for us to build our business, we did not follow the path laid out by activists and advocates who fought for our right to participate in this industry legally, we did not understand the responsibility our industry had to use legal cannabis as a tool for restorative justice, including the scope of the opportunity for cannabis to be a true mechanism for social equity, and we did not advocate for an industry structure that would allow those opportunities to be realized in legal markets across the country. Hindsight is unfortunately 20/20.

Cannabis is now legal in some form in nearly 40 states. While I’m proud of so much of the work we have done to increase access to cannabis for tens of millions of people across the country, in hindsight, it’s clear that Parallel has not handled the social responsibility that came with being in such a privileged position in the markets we serve. While I can’t speak for every large cannabis company out there, I can speak for our company when I say, “I’m sorry, it’s past time for us to do better.” So, what does that mean?

As the new CEO at Parallel, I pledge that going forward, Parallel will be a model among all large cannabis operators in bridging the business with the social responsibility of our industry.

Over the past few months my top priority has been to listen and learn from our talented, empathetic, and truly passionate team about the work they are doing and the impact they know we can have. These conversations, as well as conversations our team has been having with activists and advocates in the cannabis community, have led me to the realization that it’s time for leaders of large cannabis companies to take a step back and learn from those who have been in this space a lot longer than we have. That is the only way we are going to realize the industry’s so far unfulfilled promise to be a catalyst for economic empowerment and restorative justice.

Last week, the Minority Cannabis Business Association (MCBA) commissioned a full report on the current inequities in the legal cannabis industry and has put together state and federal policy recommendations aimed at creating a more equitable industry in the future. MCBA’s report focuses on several key parts of the industry; analyzes and confirms how unequitable the industry has become; and provides a toolkit with recommendations on what new and existing legal cannabis markets can do to ensure a more equitable structure moving forward.

We are honored to provide our full support of this report and pledge to commit our resources to help advocate for the fundamental changes the report highlights as necessary for the cannabis industry to become truly equitable. In the states where we operate, we will work with state legislators to advance policies that foster an equitable industry and create real restorative justice measures. In the states we plan to operate in, we commit to providing as many opportunities to communities of color as possible, through financial support to entrepreneurs and a diversified supply line that supports those in ancillary markets.

Many people may ask why we are joining these efforts, given that the report and the partners promoting the report are advocating for a breakdown of the industry we helped create, and which has been built to support the creation of well-regulated oligopolies. Quite simply, it’s because it’s the right thing to do, and will create long-term stakeholder value.

We have an obligation as a participant in the legal cannabis industry to ensure that we are paving a pathway for entrepreneurs of color. It’s time for us as a multi-state operator to stop hiding behind the veil of “safety and transparency” that has led to advocacy for exclusionary, protectionist policies. By working with advocates and activists to expand the industry in an equitable fashion we will develop the next phase of an industry that will create real opportunities for economic empowerment for underserved communities; foster innovation; and expand access to a plant we all believe can create a paradigm shift in health and wellness around the world.

A modern corporation should also understand that becoming more inclusive and equitable, and supporting the communities you serve are key pillars to growing a sustainable business. Doing this work will allow us to grow the industry and innovate, continue to create thousands of jobs by reaching untapped talent and build shareholder value, all by doing the right thing.

Like many large cannabis companies, Parallel has taken a number of meaningful steps —partnerships with local organizations to provide training in communities of color and increase hiring diversity; fostering entrepreneurship by working with the Nu Project, as well as partnering with Black Canna Conference (on the ongoing Hot Box Pitch Competition); supporting regular restorative justice and expungement initiatives to reverse course and address some of the industry’s fundamental issues of inequity. However, it’s been made abundantly clear by our partners that we as operators must have a multifaceted approach to addressing equity, one that includes financial support, a commitment to building a diverse workforce and supporting awareness of inequity, and most importantly and meaningfully, an approach that includes using our voice and our resources to promote legislation and policies that create an equitable industry, rather than one that only benefits a few large corporations. MCBA’s toolkit gives us what we need to advocate for meaningful policy changes at the state and federal level.

Over the past year, instead of funding the cannabis trade organizations who have pushed for exclusionary, protectionist policies at the state and federal level, we are proud to have diverted our resources to consistently support the MCBA’s legislative advocacy efforts. We will continue to use our resources to support advocacy efforts that represent the underrepresented in our industry: communities of color, veterans, small business owners, and patients/customers. We hope our fellow MSOs will join us in abandoning the narrow-minded policies that have put us in such a privileged position and begin utilizing MCBA’s landmark report and toolkit to lock arms and help lift up those who have created this incredible opportunity for all of us.


 

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NECANN 2022 B2B Cannabis Convention Schedule Is Its Largest Ever

NECANN’s 2022 cannabis convention schedule will be the largest ever presented, with B2B events in Massachusetts, Oklahoma, Illinois, Vermont, New York, New Jersey, and Maine.

NECANN has been developing engaging conventions for the cannabis industry since 2014, expanding market opportunities for businesses, entrepreneurs, investors, educators, patients, advocates, and consumers. We feel our approach of creating unique conventions focused on the current state and potential of each local market we come to is a superior alternative to the generic national canna-convention franchises that pop up everywhere. Rather than focusing on what the cannabis industry can do for us, NECANN takes a collaborative approach with the local industries and communities for our conventions, which has resulted in consistently high returns for exhibitors, sponsors, attendees, and the local cannabis market as a whole, allowing everyone to benefit and grow.

“We’re very excited to be back in full swing, and looking forward to connecting cannabis industry businesses to more new customers in all of our markets in 2022, including our first conventions in Tulsa and Albany,” said NECANN Founder and President, Marc Shepard. “With new markets opening up every year this is a great time to be in the cannabis industry, and we’ll be expanding to even more new states in 2023.”

If you’d like to see what NECANN conventions looks like, click on one of the links below for a short highlight reel:

NECANN Boston
NECANN New Jersey

To learn more about joining the NECANN community as an exhibitor, sponsor, speaker, or attendee, please visit us at NECANN.com.

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Joseph Ori: Building a House of Cannabis Brands In Michigan

With nearly one million medical cannabis caregivers licensed in the state, Michigan is an often undersung hub of cannabis culture, cultivation, and industry expertise.

In an interview covering entrepreneurship and the Michigan marketplace, our podcast host TG Branfalt recently connected with Joseph Ori, a career lawyer and entrepreneur who co-founded Michigan’s Six Labs. In the following episode, Joseph discusses his pivot to the cannabis space, the company’s scientific approach to cannabis cultivation, and the advantages of working with a versatile team. The interview also covers Six Labs’ brand-building process, their prioritization of experience-focused cannabis products, and more.

Check out the full podcast episode below! You can also scroll further down to find a full transcript of the interview.


Listen to the podcast:


Read the transcript:

Commercial: This episode of The Ganjapreneur Podcast is made possible by AROYA, a comprehensive cannabis production platform for commercial growers. If you are a commercial cannabis grower, you can use AROYA to level up your production workflow. Featuring a combination of precision instruments and powerful software that help you intelligently cultivate dry and process cannabis, the AROYA cannabis production platform is your ticket to greater yields and consistent quality. Request a quote today online at aroya.io. That’s A-R-O-Y-A.io.

Cara Wietstock: Hi, I’m Cara Wietstock, Culture Editor at Ganjapreneur and host of our YouTube show. Fresh Cut. The best way to understand cannabis business is to speak directly to those who work within it, and Fresh Cut was created to shine recognition on the people who fill these roles. In this interview series, we focus on those with their hands and the dirt, both literally and figuratively, from cultivators to budtenders, educators to advocates, activists to lobbyists.
We aim to illuminate the workers who keep this industry thriving. Enjoy one-on-one conversations with me and guests by watching along on the Ganjapreneur YouTube channel and follow our social channels to keep up with the latest episodes. Have a great day.

TG Branfalt: Hey there, I’m your host, TG Branfalt, and thank you for listening to the Ganjapreneur.com Podcast, where we try to bring you actionable information in normalized cannabis through the stories of ganjapreneurs, activists, and industry stakeholders. Today, I am joined by Joseph Ori. He’s the co-founder, General Counsel, and Government Relations for Six Labs, one of Michigan‘s largest craft cannabis cultivators with a complete focus on quality and precision and a passion for advanced research development and technology. How you doing this afternoon, Joseph? A pleasure to have you.

Joseph Ori: I’m doing great, TG. Thank you for having me. Really appreciate it.

TG Branfalt: As a lot of our listeners know, I actually spent a year in Detroit. I love the city. I was there when they legalized cannabis, but was not there when they actually started sales. I did go to a Cannabis Cup there, which is a story for another day that has been posted to the website, but before we discuss Six Labs and craft cannabis, which is really exciting, tell me about yourself, man. You obviously wear many hats for Six Labs, so tell me about what you do there and your background. How’d you end up in the cannabis space?

Joseph Ori: Well, the cannabis space sort of called out to me, I think, but I have a background. I played sports competitively my whole life, and most of it was spent playing football toward the latter part of my teens, and then I ended up playing college football and I actually ended up with two back surgeries while in college. Back in the ’90s, they were giving out Percocet and Oxycontin like it was candy and we, obviously, didn’t know any of effects of those substances and the addictive quality. I was one of the lucky ones because I didn’t react well to them and I was in an extreme amount of pain all of the time. I mean, I’m talking back since I was… I don’t want to date myself, but since I was 20.

I stumbled upon cannabis in college and, you know… Whereas, most people were using it just recreationally to have some fun. I started to notice that it was mediating my pain. Whereas, you drink alcohol and I’d feel like shit the next day. I mean, I was completely dehydrated. My back would kill me even more. I’d worry it was cannabis. It wasn’t, so I became sort of self-medicating myself over the years. Then, as this industry grew and they started to actually acknowledge that there were medicinal qualities and sort of at the same time the parabola was going downward for opioids and all of the negative exposure that they rightly received, I said, “I’m a believer in this.”

The opportunity presented itself to… You know, I’ve been an investor in cannabis separately before Six Labs, and so an opportunity presented itself that Six Labs, I’m sorry, that Michigan was opening up to a new set of rules and they were going to open up larger cultivators and go recreational legal, and my partners and I saw an opportunity. We bought some land out there and we got it approved locally. We raised tons of money and got this thing off the ground. We’re all in our… The challenge we had was… I tell people this a lot is that we’re all in our 40s, so we’re seasoned businessmen, and one of the things that comes with that is that you know what you’re doing, how to run a business, and by that point in time in your life you know some people who’ve got some wealth.

We were able to raise money and we were able to put together this company relatively easy in the sense that we all had a role. The challenge was that once it started to take off, we all had to leave our careers. My main bread-winning background was that I’m a trial attorney for 25 years and I’m also, again, a restaurateur. I’ve owned record labels, been a sports agent. I’ve done a lot of things in my life, but this was basically saying, “Okay, you have to sort of take a step back from what we’re doing every day.”

My law firm, I’ve had to put some people in place because I’m the founder and owner of that law firm, but I’ve had to put some people in place to sort of help me out and bring some younger attorneys up and make them partners and share the piece of the pie, so to speak, so it’s been a journey. I mean, it’s exciting and we’re really happy with where we’re sitting right now, but obviously, we say that in cannabis every year is like a dog year, I mean, every month is like a dog year, so we’ll see how it goes.

TG Branfalt: No, I mean, this is a really incredible journey. Going back a little bit, you said that you were an investor in cannabis companies before you launched your own. Tell me about the… maybe not the companies that you invested in per se, but what drew you to those companies in that early stages.

Joseph Ori: Well, so what happened was is that Illinois got in the game. I’m not going to say they were the first ones, but the medical aspect of cannabis in Illinois was pretty early on. I was approached by several entities that was a couple of which are massive companies now and trying to get me to invest in their company, which I did. Then, I got approached by some other groups that actually wanted to do what we did, which is actually take a role in the company and get it off the ground and get licensed in Illinois and sort of see where it took you.

I at that point in time was too ingrained in what I was doing professionally as a trial attorney and I had some very… I represent people who can’t represent themselves, so I do catastrophic injury and I represent a lot of people who would never be able to pay me if they had to. I work for free unless I win, representing infants that are injured at birth and things like that and construction workers who are severely injured on the job. And I was ingrained in a lot of big cases. I couldn’t walk away.

I kind of had that itch back then, and then sort of as I found myself five, six later with this opportunity in Michigan, it just made sense to do that at that time because I had surrounded by partners. My partners are guys I’ve known for many, many years and it was really odd because one of the things as an entrepreneur as I’ve learned is it’s one thing to have a great idea.

It’s one thing to have a great plan and to get funded, but to have yourself surrounded out of the gate with people who you know and you trust… Also, I mean, if I tell you this you probably wouldn’t believe it, but so what do you need to run a business? You need, well, we need an attorney. You’re going to build something, you need a builder. If you’re going to have finances, you need an accountant. If you need operations, you need a guy in those operations.

Well, all five of my partners, my other partners, had these. One of my partners is a certified accountant. He’d had a background in banking. I’ve got another partner who was a builder and left his career as a builder to [crosstalk] build our facility. We’ve got other guys who fell into place that were also key critical roles in the company, so we didn’t really have to go outside of us to sort of have at least the nuts and bolts of building a business.

Now, learning cannabis space, totally different animal, and we needed to bring in the right people to sort of roll the cannabis and know what the market was. Funny thing is we have most of our partners are in our 40s. I actually turned 50 recently, but we have a young guy who’s like 30 years old. He started with us when he was 27 and he’s our cannabis guy, you know, so [crosstalk] he’s our cannabis expert.

TG Branfalt: When you were searching for that cannabis guy, was the majority of the people younger?

Joseph Ori: Yeah, so one of the things that we learned right out of the gate, and this goes along with some of the things you and I were discussing before the podcast just separately, the image of this industry has changed. We started going out to find head of cultivation and head flower managers and veg managers. We first went and what we did was an immense amount of due diligence. Before we even stepped foot into this industry, we toured all over California, Colorado, Oregon. We went to… We knocked on doors. We went into all the facilities we could get into, the cultivation facilities, crossing facilities, dispensaries. We wanted to know what was working and what wasn’t working.

I’m not going to name any names, but we saw some pretty deplorable situations out there and we said, “Okay, so how are we going to separate ourselves from all of these people?” We took notes and said, “Okay, these are the things that seem to be working, and then let’s look at where the new frontier is going to be in this industry.” One of the things we were leaning toward was possibility, still exists, of the federal government legalizing it. We thought, “Well, if the federal government legalizes it and the FDA gets involved in as much as it addresses the medical side of this product,” I don’t even know if we call it a product, I guess we can call it a commodity, “Then, we’re going to have to meet certain standards.”

We basically said, “Let’s build a facility that’s forward-thinking and it may cost us more money than we want and most of these other facilities would cost us, but let’s build it with forward-thinking technology. Let’s build it. It could be retrofit with futuristic technology if need be.” That’s what we did. We did an extraordinary amount of homework and to be able to create and… I brag about this because we haven’t been told anything differently. I mean, we have people come through our facility from other states and guys who know cannabis way more than the five of us when we started out, we’ve been in the business for 10 years or so, they’ve never seen anything like our facility. We continually get these accolades from people.

It’s helped us because we’ve landed some big licensing deals just based off of our operations and the way our facility appears. We’re saying basically, to sum it up is, if the FDA gets involved and our cannabis doesn’t pass whatever those regulations may be, then no one else’s is, and we said, “So that’s what we wanted to do,” and then [crosstalk] you know, that’s what we’re trying.

TG Branfalt: To your point with the FDA, I mean, I’ve always sort of maintained that everyone’s, “Oh, we want federal legalization,” but I believe that they’re just going to make it more onerous and a much sort of harder for current operators in states because federal regulations are going to be far behind those of the states at that point.

Joseph Ori: Yeah. I think it’s really odd because I thought maybe with this new administration there was going to be a major push right away to do something and it’s a little bit lagging more than I thought it was going to be. What I thought it was going to be, you know, federal legalization, I think what they’re going to do is just they’re going to ultimately reschedule it and they’re going to leave it up states to do what they have to do, what they’re currently doing, which is allowing their inside operations, the companies that are in their state, to build their industry. Then, I think it will be somewhat like… The real question will be interstate commerce, you know?

TG Branfalt: Yeah.

Joseph Ori: If you have Illinois, which is weird because we’ve actually talked about this, so we have Illinois and Michigan, but we’re not contiguous except unless you cross Lake Michigan. You have to go through Indiana to get to Michigan-

TG Branfalt: Yeah.

Joseph Ori: … and Indiana’s not, you know, not going to go legal anytime soon. We’re like, “Okay, if we open up interstate commerce, are we’re going to be able to cross over into Illinois through Indiana? Or can we take boats across Lake Michigan and go to Illinois and sell product? I mean, those are legitimate questions that-

TG Branfalt: Yeah.

Joseph Ori: … we have no idea, you know, what what’s going to happen because barring true federal legalization where they just say, “Okay, we’re taking over control of this and here’s what’s going to happen,” you don’t really know how it’s going to play it’s self out.

I mean, alcohol sales have been largely kept outside of federal preemption. I’m not trying to get too legal with you, but federal preemption basically says federal laws preempt state laws. Now, there’s been exceptions to that. One of those has been alcohol. If you compare cannabis to alcohol, at least from a recreational standpoint, it would follow that they’re going to leave it up to the states. This state says it’s 18 years old, that state says it’s 21, this state has restrictions on… and local municipalities on what can be sold, what times it can be sold, who it can be sold to and when and where. It still looks like it’s always going to be maintained within the confines of each state, at least from my perspective.

TG Branfalt: No, and they’ve done the same thing with cigarettes now in New York. It’s 21, so to your point, I do want to sort of switch gears a little bit and talk to you about sort of craft cannabis. Tell me how Six Labs and yourself defines craft cannabis.

Joseph Ori: That’s a great question, so it’s not synonymous with top shelf cannabis. Craft cannabis, we feel, is defined by four qualities, which is smell, flavor, experience, and appearance. Top shelf, usually we say the top shelf cannabis has to have at least high, high rankings on three of those fours. Whereas, craft cannabis, we’ll have all four of them. The most important one, I think, is experience, and there’s other distinguishing features that will make craft cannabis separate itself from top shelf, which is the terpene profiles, the potency, the cannabinoid profiles, and tolerance. When you get into tolerance is where I really think the difference is, is craft cannabis we say is like a craft wine. It’s got different features.

Now, what we try to do is we say, “If you can create batches of cannabis that are consistent in smell, flavor, appearance, and most importantly experience, and also try to create profiles that will keep the user from growing a tolerance to it,” so meaning if you take it… if you are an edible fan, you’re taking a 10 milligram edible that’s from flower. It’s born of flower that it was craft flower. Or, you smoke a half gram pre-roll. Are you going to get the same effect and the same level of experience today as you will six months from now? Or, are you going to have to start smoking a whole gram? Or are you going to have to take two edibles?

We’re trying to… We’re basically saying the craft cannabis is always going to be, we believe, that it always will be special. It’ll always have its own place, so what we kind of set out to do is said, “You know, we’re going to try to spend and we have the ability with our facility to do that. We’re going to try to make craft cannabis at a larger scale. We’re going to try to compete with the guys who are making… who have a 3,000-square-foot grow or 5,000-square-foot grow, focus on a couple of strains and say, ‘This is the craft cannabis, the best quality that you can possibly have.”

We said, “We’re going to try to do that in a larger scale. We’re going to get that much attention. We’re going to give it that much time, energy, and create a climate and an environment where we can do that at a larger scale.” It’s very challenging. We’re trying to make it precise and as clean as possible, and precision is the main goal of our company.

TG Branfalt: You’re the first person that I’ve ever spoken to who put such an emphasis on experience. When you have these conversations with people, which you must do in order to be meeting these sort of goals, when you ask them, “What experience are you looking for?”, something like that, what’s the response that you get most often?

Joseph Ori: I guess to answer that question, it’s like if you’re at a dinner party and you’re with some friends and the subject of cannabis comes up, you’re likely not talking about strain names because it gets confusing. One of the things, and I can say this, I’ve been a customer for years and I was like, “Okay, what does this even mean?” It’s basically trying to say, “Okay, do we have the ability right now to say that you will have this specific experience from this strain?” No, and what we’ve learned, too, is that sativa, indica, and hybrid is really… There’s no true sativa [inaudible]. Everything is sort of a hybrid. There’s no true indica.

To say, “Okay, well, one’s going to kind of make you sleepy or tired and chilled out, the other one’s going to give you energy, will allow you to maybe focus better,” just based on strain is not really the truth. What they’re realizing is the entourage effect of certain levels of terpenes and ratios of cannabinoids. THC is not necessarily the main thing. It’s like it’s still I see that there’s… You can grow THC, high-potency THC product and you’ll get tons of money for it even at the wholesale level. Everybody wants 28%, 30%, and I don’t think that this industry’s moving toward that. I think it’s moving away from that. I think, you know-

TG Branfalt: Right.

Joseph Ori: … people don’t want to get blown out of their minds necessarily. They would prefer to have an experience, so while we can’t say that we have reached the point where I can tell you, “Hey, buy this and you’re going to feel this,” I think that what we are moving forward and we’re working on a product line that’s coming out.

We’re a house of brands, so we have five products and we’re working on a sixth. One of our products we’re saying is going to be geared toward allowing you to select it based on what you want to do and to heighten that experience. If you’re going to go… If you want to be creative, we’re going to say, “This is going to help you be more creative. If you want to just chill out and watch a movie and not think, then this, this a strain… this is a product, not a strain, but this is a product that will heighten that experience. If you want to explore, this is a product that will heighten that experience.”

Frankly, I think that there’s something to be said for the possibility that there would be heightened sexual experiences with certain products. What we’re trying to do is not tell because you can’t, I don’t think you can yet, like you tell the end user, “You are going to feel this way,” every single one of them. I do think that we’re at the point where we can say that, “If you’re going to do this occasion-based, occasion-based, this is the product. You will have a better time doing this with that.” That’s what we’re aiming for.

TG Branfalt: How do you R&D this, man?

Joseph Ori: Well [crosstalk] so you do… You know, you test it on your many employees. You sample a product. That’s what we do, and it’s not just simply that. We’re… Israel has got a lot of research that comes out of there. They’ve very, very passionate about it. More toward the medical, I’ll be honest, but-

TG Branfalt: Yeah.

Joseph Ori: … but you learn a lot from the medical that you can garner and sort of follow the process of if you have a particular strain that is more leaning towards sativa and you can combine the terpene profiles and the CBD ratios because those work against each other, and you can combine them together and consistently grow it with that ratio. You’re going to… Like I said, you may have eight out of 10 people who use it and say they had a bad experience, and to be fair, it’s like, okay, when I gave you my example with my opioid experience, I’m one of… They’ll give you a million things what the drug can do to you. Most people are just going to feel what it’s supposed to, and they didn’t tell you that a vast majority of people become addicted, but they also… Some people just don’t feel well and some people have nausea and vomiting.

I don’t think there’s a single substance out in the world that’s even been tested and approved by the FDA that can guarantee a specific feeling, but if you can do it to the extent where there’s a vast majority of expectation, that you’re likely to have this sensation when you utilize this particular product and you can rely on that and it works for you. I mean, let’s face facts. The one beauty is that I think I read something recently that there’s still not a single account of anyone dying from overdosing on cannabis.

TG Branfalt: Yeah. No, it’s basically impossible.

Joseph Ori: Basically impossible, so you may have to try it and you may have to go out and buy it and say, “Okay, well, hey, Six Labs is telling you they’ve got this line of cannabis out here and this is what this is for your occasion-based.” You say, “I’m going to try it.” We think your result will be satisfaction. I think that’s we’re aiming for,

TG Branfalt: Moving things on a little bit, when I said at the top I’ve been in Michigan and it was still medical and I went to a Cannabis Cup and I did get blown out of my mind by somebody with dabs. To your point, I do think that we are moving away of that sort of high-test stuff. I’m a guy who’s been smoking… using cannabis since I was 15, 16 years old, and now I much prefer five-milligram, 10-milligram edibles. Either I’m getting old or I don’t like to be as fucked up anymore.

Then, they legalized in 2016 the first Midwestern state to legalize recreationally. Obviously, they didn’t get up and running before Illinois because Illinois just… Pritzker was like, “We’re doing this, we’re going it now.” Tell me about Michigan’s industry seven years after voters have approved the reforms. Is it where people think that it should be as an operator? Is it a satisfactory business climate?

Joseph Ori: You know, that’s a tough question to answer and is broad of a term. Legal cannabis particularly in Michigan has in the initial stages struggled under the weight of pressure of scaling cultivation and led to quality issues on the larger cultivation level, which allowed caregivers to sell to dispensaries directly because they were the only ones who were making cannabis, creating cannabis that was available and that could be used.

It took a while to get the cultivators up and running, the larger cultivators, and the entire sector was slow to deliver the results that they expected. A lot of it… I think at one point in time not so long ago, about 70% of the larger cultivator cannabis wasn’t passing testing, so [crosstalk]-

TG Branfalt: 70%?

Joseph Ori: 70, yes-

TG Branfalt: That’s unreal.

Joseph Ori: … so while the challenges were most pronounced then, I think today there’s a difference. It’s different now. THere’s a lot of larger cultivators online. It’s robust competition, but Michigan is like… Nobody understands this, man. Michigan has a long history rooted in cannabis. I mean, you know, when you-

TG Branfalt: Ann Arbor itself, I mean-

Joseph Ori: Yeah. It’s unbelievable, man. It’s almost like California. It’s wild how deep-rooted cannabis use is in Michigan. The funny thing is like we’re being challenged by a black market. There’s the seizures at the border. I give it a little bit of fact. The seizures at the border in 2019 and 20, I’m sorry, in early 2020 to late 2020 increased like 1800%. They were seizing massive truckloads of commercial-grade cannabis at the border coming in from Canada because Canada can’t get their shit straight.

They have so many companies out there that have so much product because they have a huge black market problem that they’re shipping their high-quality packaged goods through the United States, the border of Michigan in Windsor. They’re getting seized and guess what the penalty was in 2020? I don’t think it’s any different, not, man, in 2019. It was $5,000 fine per ton.

TG Branfalt: Per ton?

Joseph Ori: Per ton, so I mean, I like my chances. All right, if I’m up in Canada, I’m like, “Well, you know what?” Nobody was arrested according to these accounts I’ve read and they were just sent back up to Canada and their passports were revoked to come to the United States, so I’ll take my chances all day. That’s what you’re competing with, but you still see the sales going through the roof. We kind of look at it and we’re like, “Man, if they could just,” so it’s like everybody says about 70% is still black market cannabis being sold in, you know, in the United States in general, and then pretty close to that ratio in Michigan.

You’re like, “Okay, if we could just chip away 10% of these people,” and the sales are still robust. Imagine what it would really be. We’re hoping that with education will come people saying, “Okay, we’re going to shift. We’re not going to buy it from this black market dealer down the street. We’re going to buy it from a licensed entity where it’s highly tested, highly regulated and, oh, by the way, this company Six Labs says, ‘Hey, we might have stuff that’s more sensation… more occasion-based for you and you can rely on it and you can always know the consistency and you can always know the cleanliness.'”

That’s what we’re hoping changes, but it’s going to be some time before that changes. We look at alcohol. We’re like, “Okay, after Prohibition, there were still people making whiskey, moonshine.” It took a long time and some government regulation and brands to really come out to do away with that type of mentality. I think we’re a ways away, but it’s growing in the sense that there’s… I mean, I think in Illinois we’re actually waiting for our grow license award, which has been over a year since we had it pending and COVID and a bunch of host-

TG Branfalt: Yeah.

Joseph Ori: … of other issues in Illinois have north allowed us to find out whether we want our grow license here. I mean, their taxes on cannabis, and granted their taxing the hell out of it here, which doesn’t help to fight the black market, either, but in 2020, the taxes of cannabis beat alcohol sales taxes [crosstalk] you know, it’s amazing.

TG Branfalt: Well, I understand your frustration as an operator about the illicit market, but part of the problem is taxes because I can go to my boy down the street, get an ounce for $200. If I go to Massachusetts, I’m dropping 450.

Joseph Ori: Correct.

TG Branfalt: That’s a hard pill to swallow.

Joseph Ori: Oh yeah, so we actually have some friends on the border of Indiana and Michigan, which is really… They only drive through Indiana for about 30 miles to get to Michigan, so from Illinois. You make that turn around the east part of the lake and you’re in Michigan. We had guys who were and still are going taking the drive to Michigan to buy commercial-grade tested cannabis rather than buying it in Illinois because Illinois’ tax is like 40% almost and Michigan’s isn’t that bad. Michigan I think… Actually one of the beautiful things that separates Michigan from a lot of other states is that the tax isn’t as great, so that helps us, but you’re still… If you’re budget conscious, no matter where you’re at, I think you’re doing exactly what you just said.

You’re going to go buy your cannabis to get a higher quantity rather than quality to save yourself some money, and especially if it’s something you’ve been doing for years. The funny thing is, TG, is that I kind of tell people this all of the time. It’s like all the years of consuming cannabis and you’re just like, “Okay, we didn’t know where the hell it came from half the time,” and it was all probably grown outdoors. Who knows what they were using and are still using on it to kill the infiltrates and to get rid of pests. I’m thinking to myself, “Because of what we’re doing indoors, we can control all of the climate. Every single aspect of everything is dialed in.”

It’s still challenging to do it the right way and keep it clean. It’s not like just pushing a button, man. It’s a lot of work. It’s a lot of attention to detail, and so I tell people, “I can’t imagine what was in the shit that we were smoking when we were younger.” I mean, and I went to school in New York City and there was… Who knows where it was coming from? It could have been coming from any one of 10 different places. I can’t imagine that they were caring too much, you know, that Rafael Cantana down in Mexico or somebody out in Humboldt County was caring too much about what they were using to kill the pests. I just… I don’t know.

TG Branfalt: I mean, growing up, for sure, I definitely smoked some mildew-y products.

Joseph Ori: Yeah.

TG Branfalt: When you’re 18, it doesn’t matter what you put in your body anyway, does it?

Joseph Ori: Yeah, yeah.

TG Branfalt: We talked briefly about sort of the history of cannabis in Michigan. We didn’t really get into it, but if I’m not mistaken, Ann Arbor was one of the first cities in the United States to legalize it medically and-

Joseph Ori: Yeah [crosstalk]-

TG Branfalt: … part of the history. Some people have began calling Michigan The Second Emerald Triangle, and so I’m wondering if you could sort of speak to why it’s gotten this moniker?

Joseph Ori: Well, I think, like I said, because of how deep-rooted cannabis has been in the state and there’s been a lot of private growing and there’s 30,000 caregivers who many of them who are very, very highly experienced growers and been doing it for… some, for generations, I think, prior to becoming legal. We have a robust set of strains that can compete with any state and, obviously, we don’t have our enfamed Humboldt County as California has for The Emerald Coast or whatever, but we do have every bit of the competition that California does. I mean, we have… That I would say is one of the greatest features of Michigan which separates it is that because there’s such competition, that the quality of the strains and what people are trying to do and the innovation that’s coming from that is I believe for Michigan at the forefront of the Midwest at a minimum.

I can’t necessarily say that we will overtake California, but I do think that we have a very strong hold on number two at this point based on those factors. I think that as… We’re only a little bit over a year and a half, two years into recreational, the strides that the state has made are amazing compared to other states. I don’t think it’s an unfair moniker to place on it.

TG Branfalt: Do you think eventually it’ll be they may change the name of Detroit from The Motor City to The Canna City or something?

Joseph Ori: I mean, if the car companies continue to do what they’ve been doing over the years, which is pulling out, coming back, pulling out-

TG Branfalt: Yeah.

Joseph Ori: … I think that that possibly could be the case. There’s… One of the things that Michigan has that’s a little strange is that there’s a lot of municipalities that haven’t opted in, so-

TG Branfalt: What’s the ratio there? I know in Maine it’s pretty out of control. It’s like 2:1.

Joseph Ori: Yeah. It’s pretty close to that. I haven’t checked the numbers, but I know that there have been… There’s I don’t want to say numbers because I haven’t checked in a while, but there were some 300 municipalities that still hadn’t-

TG Branfalt: Wow.

Joseph Ori: … opted in. Yeah, and only 200 or so that had. That’s the numbers that stick in my head, but like I said, I don’t want to…

TG Branfalt: Well, I’m sure that also affects the illicit sales. I mean, when you have all these communities that have no access, right?

Joseph Ori: Yeah, exactly.

TG Branfalt: You obviously are really passionate about this. You go from being a successful trial lawyer to being a successful cannabis entrepreneur. What advice would you have for entrepreneurs and especially people who had careers before they decided to enter the space?

Joseph Ori: I write on this a lot and I published some articles recently about different subjects. The first thing I would say is that you’re never too old to be an entrepreneur, and the only thing that the difference is between a younger entrepreneur versus an older one is that younger guys, in their minds they have less to lose. It’s sort of the youthful exuberance of blind, you know, understanding that. I started my law practice the day that I graduated law school and I read a book while I was studying for the bar exam called How to Start Your Own Law Firm and Not Miss a Meal. I read the book and I’m like, “Wow, I could do this. I could do this. I could this.”

Then, I get to the last chapter and the last chapter basically tells you, “Okay, so I’ve been practicing law for five to seven years now. Go out and do it.” I’m like, “Holy shit, wait a minute.” I was  because it was basically assuming that you knew a little bit about being a lawyer, that you were going to do that. I was like, “Oh, I was like, “Shit.” I said, “I can’t go do this,” but you know what I said? I said, “Listen, I can figure this out. I’ll out how to be a lawyer along the way.” I went and applied the same equation in how they told you how to go about getting to that point of opening your own law practice. I did exactly what it said, and so in the beginning, I had to co-op a lot with older lawyers who I met and said, “Okay, I’ve got this case. I’ll give you a cut of this if you help me with it.”

I made it work, but I could see how now that same guy is like… If I’m reading that today, I’m like, “Damn, that’s super risky. You know, I’ve got a good job.” I’m like, “Am I really going to be able to pull this off?” When in reality, you have a way better shot at pulling it off because you know about being a lawyer. You actually know how do the cases yourself. A lot of it depends on your risk tolerance, and I read an article the other day in Psychology Magazine about resilience.

Resilience is something that people think is you’re born of it. Sure. Are there some character traits that you might be born with that make you somewhat… give you the ability to be more resilient? Sure, but resilience is based a lot upon your social setting and your surroundings and who you are in bed with, sometimes literally and figuratively. Who is your support group? Who are you surrounded by? Who’s going to pick you you if you fall? Entrepreneurship is an incredibly cool concept and everybody wants to talk about it, but the reality is is that you have to be able to pivot, man.

That’s the one thing that I will tell you, anybody who’s doing it. If you have a plan, you say, “This is my plan. This is what I’m going to do. This is what the book said.” Shit doesn’t go that way, man, and if you don’t have the ability to say, “Okay, that didn’t go exactly how they book said it was going to go. I’m going to figure it out, though.” If you don’t have that ability, if you’re somebody who’s just linear, you’re going to have a tough time being an entrepreneur because very, very rarely, and I’ve yet to see anyone who says, “I read the book. I applied what it said, and it worked out exactly how it said it was.”

You have to be able to be resilient and you have to be able to pivot, and if you’ve got those qualities and you’re not afraid to lose and to pick up the pieces and try to keep it going, then you’re built for it. That’s what I would tell people.

TG Branfalt: I… That’s really, really great advice, man, and you can just sort of tell even before you read the book when you get injured playing football and that doesn’t really work out and you still end up going on to be successful. I mean, being an attorney and then a sports agent and all of these sort of things. I mean, it’s a really, really incredible story and I’d like to definitely get into those details with you at some point a little bit more, man.

I really thank you for sharing your story, and I know that we may not have gotten… talked too much about craft cannabis as it were, but it’s a really incredible story and I loved having you on the show and appreciate you coming on. Where can people find out more about you and more about Six Labs?

Joseph Ori: Just go to @sixlabscannabis and we have all of our updates. We have several brands that are out right now. We have Six Labs Flour we sell direct. We have Candela, which is a line of solvent lists concentrates that we recently just won the Michigan Cannabis Cup. We have MI6, which is your no frills quality brand available in larger quantities. Popcorn and shake. You can get strollers, which are mini, mini high-quality pre-rolls that are smaller than your average one, because that’s why they’re called stroller. Or, if you take a little walk on the beach or walk your dog. We definitely thought that’s the perfect one where you can actually smoke the entire thing and finish it-

TG Branfalt: Dog walkers.

Joseph Ori: … and yeah, yeah, dog walker. In fact, with… Then we have… We’re working still to bring out what we discussed earlier, which is ritual, which would be the occasions/sensation-based. We’re hoping to have that to the point where we can say, well, what discussed earlier that you can rely on this giving you this for this particular occasion.

That’s where we’re at and, you now, obviously, six-labs.com and, obviously, six-labs.com. I’m on Twitter and Facebook and LinkedIn and all those places. I publish a lot of articles. I do a lot of these podcasts. So hopefully your listeners will start following us.

TG Branfalt: That’s Joe Ori, man, and really, I appreciate you coming on. I had planned to make it back to Detroit one day and we’ll definitely take it… Be on the lookout for the lockout for the dog walkers, especially-

Joseph Ori: Yeah, sure

TG Branfalt: … that dog likes to walk.

Joseph Ori: Well. Yeah, for sure, and if I make my way up skiing in the Lake Placid area, I’m going to definitely hit you up.

TG Branfalt: Oh, it’s a… Then, by the then, cannabis should be completely legal and what I grow in my backyard is no longer a crime. He is Joseph Ori, the co-founder. General Counsel and Government Relations for Six Labs, one of Michigan’s largest craft cannabis cultivators with a focus on quality and precision and an obvious passion for advanced research, development, and technology. Joseph, thanks again, man. We’ll talk soon.

Joseph Ori: All right, TG. Thank you, buddy. Thanks for having me. Bye, bye.

TG Branfalt: You can find more episodes of the Ganjapreneur.com Podcast in the podcast section of Ganjapreneur.com on Spotify, and in the Apple iTunes store. On the Ganjapreneur.com website, you’ll find the latest cannabis news and cannabis jobs updated daily, along with transcripts of this podcast. You can also download the Ganjapreneur.com app in iTunes and Google Play. This episode was engineered by Trim Media House. I’ve been your host, TG Branfalt.

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Curaleaf Settles 10 Lawsuits Related to THC-CBD Product Mix-Up

The multi-state cannabis operator Curaleaf has settled 10 lawsuits over CBD drops it sold in Oregon that contained THC, the Oregonian reports. Employees at the company’s Portland facility had mixed up the company’s THC and CBD Select products which made their way to consumers and prompted a recall by state regulators last September.

Curaleaf, which is based in Massachusetts, agreed to a $50,000 payout for Ayuba Agbonkhese, an Air Force veteran who said he was taken to the emergency room after using the Select CBD tincture. He told the Oregonian that the company has not apologized.

“It was important for me to make sure that the company, as well as other companies like this, become more accountable. I want a safer community. That is my main reason for doing this in this way. … I want them to be better and I want the industry to be better. And I want a safer community.” Agbonkhese to the Oregonian

At least four other people reported they had to go to the emergency room after consuming the products, which they thought contained only CBD. Terms of the other nine agreements were not disclosed while three cases remain unresolved, including a wrongful death lawsuit filed last month.

The Oregon Liquor and Cannabis Commission (OLCC) is still investigating Curaleaf for the mix-up. The company said the failure was due to “human error” and that it has changed its manufacturing process to prevent similar problems in the future.

The OLCC estimated that about 630 units of the product were sold beginning June 29, 2021.

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TJ Stouder: Reimagining Cannabis Consumption with MyHi

As cannabis becomes more and more ubiquitous in social circles and even in public spaces, it’s important for new cannabis products to collectively drive the industry’s innovation and acceptance by more mainstream audiences. MyHi is especially in tune with that fact as a company and has dedicated a significant portion of its launch and brand identity to centering the conversation about social and convenient cannabis use.

In this episode of the Ganjapreneur.com Podcast, our host TG Branfalt connects with MyHi’s founder and CEO TJ Stouder to discuss the inspiration behind MyHi’s patented stir STIKs, the benefits of being able to add its fast-acting and nano emulsified THC powder to any beverage, and how the product is changing perceptions of social cannabis use and the role cannabis should play in social drinking circles. The pair also discuss emerging cannabis markets and trends from around the country, strategies for building a brand in the whirlwind cannabis industry, tips for entrepreneurs who are considering their own cannabis venture, and more!

Listen to the full interview below. You can also scroll further down to find a transcript of the interview.


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Read the transcript:

Commercial: This episode of the Ganjapreneur Podcast is made possible by AROYA, a comprehensive cannabis production platform for commercial growers. If you are a commercial cannabis grower, you can use AROYA to level up your production workflow, featuring a combination of precision instruments and powerful software that help you intelligently cultivate, dry, and process cannabis. The AROYA cannabis production platform is your ticket to greater yields and consistent quality. Request a quote today online at aroya.io. That’s A-R-O-Y-A.io.

Cara Wietstock: Hi, I’m Cara Wietstock, culture editor at Ganjapreneur and host of our YouTube show, Fresh Cut. The best way to understand cannabis business is to speak directly to those who work within it, and Fresh Cut was created to shine recognition on the people who fill these roles.

In this interview series, we focus on those with their hands in the dirt, both literally and figuratively, from cultivators to budtenders, educators to advocates, activists to lobbyists. We aim to illuminate the workers who keep this industry thriving. Enjoy one-on-one conversations with me and guests by watching along on the Ganjapreneur YouTube channel, and follow our social channels to keep up with the latest episodes. Have a great day.

TG Branfalt: Hey, there, I’m your host, TG Branfalt, and thank you for listening to the Ganjapreneur.com Podcast, where we try to bring you actionable information and normalize cannabis through the stories of ganjapreneurs, activists, and industry stakeholders. Today, I’m joined by TJ Stouder, he’s the founder and CEO of MyHi, a line of water-soluble calorie- and sugar-free THC powder stir STIKs.

This is a product that I’m really excited about as somebody who doesn’t really consume much alcohol and have used many different products to try to bridge that non-drinker gap with my drinking friends. I’m really excited to have TJ on the show to let me know more about himself and this product. How you doing this afternoon, man?

TJ Stouder: Very well, TG, TJ, thanks for having me. This is going to be fun.

TG Branfalt: Hey, and I’m screwing it up already.

TJ Stouder: That’s great.

TG Branfalt: I’m really stoked to have you on the show, as I said at the top and as we were talking about before, I don’t really drink that much, so to have a product that is water-soluble, it can be mixed with most anything. But before we get into all that, man, let me know about yourself. You have a really interesting background.

TJ Stouder: Awesome. Thank you. Yeah. In a nutshell, I was a kid born in Indiana that was a cannabis consumer for most of my life. I like to call it the home of the stigma to put it simply. Not a good place to be a cannabis consumer. Left Indiana, grew up professionally at Procter & Gamble working on a myriad of big brands and kind of around the world on different budgets, brands and marketing of building consumer products.

I learned one big insight throughout that entire experience, which brand consumer connections go a lot deeper than a point of sale purchase. I like to use the example of throughout quarantine we still wash our clothes with Tide because it’s part of who we are, not how we wash our clothes. That’s how P&G thought about building a brand and really how, let’s call it, I grew up thinking about brands.

Left P&G on a mission to find something closer to home, a product or something that would work closer for me. As I said, long-term cannabis consumer, didn’t think that was the answer, believe it or not, despite the green rush and everybody going that way. I ran into some close family issues that needed CBD and/or any form of cannabis that they could get into and saw light basically in my mom’s eyes that she needed a root, like a brand, like what I just discussed, to open up that world of cannabis to her.

It’s, as I said, the home of the stigma. It runs very deep and people are afraid of this plant. That nice branding, that approachability, the product design for your life has really become crucial to people discovering this plant and really what I dedicated myself to and all of my skills, and now I’m in cannabis for the last three years. Super excited to be here.

TG Branfalt: You talked about your time at Proctor & Gamble, can you tell me a little bit about moving from the more corporate culture at a multinational company to the cannabis space and what some of your challenges were?

TJ Stouder: Definitely. It was a fun journey. I’ll say it’s not as far as it would seem apart. The biggest challenge is really … it’s been built bottoms up on how corporate structure works. However, it works really well. It’s just … Let’s call it, P&G they call it proctoids and you learn exactly how to be a P&Ger from day one to the end, which is impressive and it works and good teams, strong teams. You get brilliant people across all their roles.

Stepping out of that, we walk into cannabis where it’s a very differently trained environment of corporate world, however motivated, ambitious, sticking to the things that work and really focusing on blocking and tackling of getting stuff done. You see a lot of parallels. I’d say biggest challenge is timeliness of meetings. You ask what I’m doing today, I have no idea.

I hope I have at least 10 important meetings coming up after this, but it’s always fluid and you got to adapt. I think we share an awesome passion for wellness for consumers that drives us all to work 24/7, work harder than any industry I’ve ever worked in. Again, super excited about the momentum of cannabis, but some of the blocking and tackling we’ll still have to work on.

TG Branfalt: You had said too that going from Proctor & Gamble you didn’t exactly see yourself going into cannabis. You mentioned briefly your personal story. Was there something personally that you saw preventing you from getting into the space or what was your thinking at that time?

TJ Stouder: Good question. I’ve never answered that one. I’d say honestly, I never worked on spirits for a reason. I believed in the products I worked on and that they truly brought wellness or some better good to the consumer’s life. I saw cannabis like I saw spirits. It’s recreationally okay to go out and exit work, throw out some stress, have a party on a weekend, go to a concert, whatever it might be, but it’s not a way of life.

I don’t drink alcohol as part of who I am. It’s not something I do as you said, as a non-drinker. We evolve from our college days of how much can I drink? Versus, okay, I’ll have a social beverage with a friend or a business meeting, something like that. I think what I learned through my family members and my mom’s wellness journey was there’s a lot more to this plant. I was a recreational consumer that didn’t see the downside of it.

I was more than excited to consume cannabis myself, but I didn’t see the upside and how in important that can be as a product to consumers and really bringing this product into their everyday life. That’s where I really saw it as a career when I learned about the wellness upside of this plant and frankly, the recreational side is wellness.

As I watch states look at medical versus rec, it’s a happy hour is wellness for a consumer. It’s stepping out of your stresses from the day and getting ready to go into your evening and hopefully enjoy your family time, whatever that may mean. It’s more than getting as drunk as you can get at a bar.

TG Branfalt: Yeah. I mean, that’s something that during my tenure covering this industry, I realized that yeah, I consumed recreationally. I never had an interest in getting a medical card, but then realized, “Well, I’ve been medicating this whole time.” To your point, I mean, I think even for people who have consumed cannabis for a long time, that we end up there in that thinking, if you know what I mean.

I want to talk to you about MyHi. When I first saw this product, the first thing I went to personally as a guy who really loves candy and sugar was Pixy Stix, man, just THC Pixy Stix, and that excited me. Then obviously I started reading a bit more and I was like, “Wow, this is sort of a game-changer in many ways.”

Because as a non-drinker, I go to the bar, I order a soda and then I have to go outside, smoke a joint, or rip a vape or eat 30/40 milligrams of edibles before I get in there. It was something that excited me. Tell me and the listeners a little bit more about MyHi and what really differentiates it from other edibles in the space.

TJ Stouder: Awesome. Well, and thank you for telling a bit of the story through your own experience, because it’s exactly MyHi, how you said it. We like to say MyHi, my way. I am a cannabis consumer who finds a lot of points in my day that are tough to consume. Products don’t fit, as you just explained. I’m out with my friends for a drink and stepping outside to smoke a joint takes me away from my friends.

I miss a couple of toasts. I miss some news update, friend’s pregnant, et cetera. I’m outside smoking a joint. I take that edible before I go in. I’m not high when I get to the bar, an hour later I’m too high and it’s managing that experience. For me, it’s a product that fits in between all the others for those moments where you can’t consume for the cannabis consumer.

Secondly, and as you get to Pixy Stix, it’s that experience for a consumer that differentiates our product and bringing it back to like a cocktail, mixing up a drink at the table when your friends are having an alcoholic cocktail or elevating your alcoholic cocktail as you prefer. It’s that experience of stirring it in that makes cannabis cool to everybody at the table and you don’t have to separate to smoke.

You don’t have to eat the gummy under the table. You’re back in the middle. Lastly is that nanoemulsified powder is crucial to that experience. I choose flower as a consumer because it’s manageable, controllable. I know exactly where I’m going to go and how far. That’s why I like flower and I find with other discrete products, it’s often tough to manage some of that curve. With the nanoemulsion, it hits in we say 15 minutes conservatively.

Some of our consumers come back with faster, really like a cocktail would. You can have one every 30/45 minutes as you’re out or have one quickly on the go and you know exactly how far you’re going to go. Really MyHi, my way puts that experience back in the consumer’s hands to enjoy the product at their pace out and about.

TG Branfalt: Well, I mean, as most people know and you know, and I know, is the average edible, I mean takes 45 minutes to an hour, especially somebody my size, 6’3″, over 200 pounds, it can take a while. What type of cannabis consumer is MyHi aimed at? I know you say MyHi, my way, but for older consumers generally we say start low, go slow. Start with little 2.5, five milligram edible, if you’re going to go there. You talked at the top about marketing and brands, who is the end-user in your opinion for MyHi?

TJ Stouder: Awesome. A lot of people, I think. I like to say America drinks and I want to make that mean something different.

TG Branfalt: Interesting.

TJ Stouder: I mean, right now I have three beverages in front of me on my table that fits into my routine. It’s a water, a coffee and a juice from my breakfast that’s sitting here ready to be infused. I think the target demographic is really somewhere between the non-canna curious and I’ll explain what that means to me, and what we obviously know, the canna curious.

Non-canna curious to me is I live in Colorado and 75 to 90% of my friends don’t go to a dispensary more than once a year. That’s concerning for me as a category participant, investor and believer in the growth numbers behind this category. A developed market like Colorado, and I have a pretty good group of friends, that don’t see the need to go into a dispensary.

That for me, we get super excited about the current cannabis consumer. We all have friends that say, “I don’t smoke, or, eh, I had an edible one time and I was glued to the couch for the next three days. I’m not trying that.” I think encouraging that non-canna curious, who’s seen so many barriers about why to go in dispensary or really the intimidation about the products there, it’s approachable, it’s branded, it’s fun.

It’s something they can do that’s more like other things they consume in a beverage and a cocktail. I think that differentiator for the non-canna curious is most important for all of us to share what we believe are the upsides of this category with the new consumer. However, again, the flower I buy announced, and I don’t look at any other products.

I believe this stick elevates that experience in a way that me, as nearly that consumer, I put one of the sticks in the water, and enjoy a bowl or a joint next to it, really elevating that high to another level from an experience standpoint and because of that nanoemulsion, fast-acting, getting the high more elevated than it would’ve been on just a joint.

I didn’t even get to the caffeine element, which I should mention, but we do 30 milligrams of green coffee bean extract that truly elevate the experience versus I think many disappointments with sativa.

TG Branfalt: Yeah, and we are going to talk about the recipe a little bit later on, but I do want to just touch onto your point that I’m one of those people, I mean, I live in New York. We don’t have dispensaries. When I go to dispensaries, I’m primarily looking for edibles, metered-dose edibles so I know what I’m going to get.

So to have a drinkable product which are not … or a product that can be mixed with drinks, in an immature markets such as Massachusetts that doesn’t have a strong canna beverage presence, I think is something that I personally, a long-time consumer who really does like edibles would gravitate toward to that product. To your point about the non-canna curious, how overall does your product fit into the canna beverage market, which I said is mature some places, immature other places?

TJ Stouder: Super excited for canna beverages across the board. I think the category speaks to a lot of what I’m looking to … excited about on our product and how it hits the demographic. A lot of them are ready-to-drink beverages, which I think for a consumer has a place and a time and you know what you want to drink. I’m at a convenience store in a normal beverage, I pick my favorite juice and I’m ready to go.

What our product provides is the ease and convenience of infusing whatever you’re drinking, wherever you’re drinking, which I think the biggest benefit for consumers is it doesn’t have calories and it doesn’t have sugar. If I put it in a water, it’s a refreshing water that gives me my dose without anything else. If I want to make a hightail, I can get creative and make whatever I want.

I think as I look across the beverage markets, a lot of them are ready to drink and exciting and I think we’ll have a great place in that consumer’s refrigerator. We’re hopeful to be in every pocket, in their hats, behind your ear, easy, ready to go, convenient because our consumers are on the go. They live multitasking lives everywhere they go.

TG Branfalt: I’ve never heard the term hightail before.

TJ Stouder: That’s new. We’re working on coining it. The thought is replacement for a cocktail or elevating another mocktail and really MyHi-tail.

TG Branfalt: I like that too. What do you anticipate or expect the beverage market to look like when it’s fully mature?

TJ Stouder: Great question. I think full spectrum, the markets we look at today, beverage is small and growing rapidly. The rationale for that in my mind is they’re nascent markets with consumers like me that are hard to convince to change their product. I have my flower in my cabinet. I’ll check something else out here and there but I know my routine at the end of the day.

I think the emerging markets are super exciting from Las Vegas to New York, let’s call that the emerging side of the country, not fully developed, where new consumers aren’t used to smoking flower. They don’t understand concentrates. They’re a bit more connoisseur, whatever it might be. I think the new products and especially beverage are going to have a big way.

Then lastly, as I mentioned, markets like that, social lounges will be game-changers for cannabis. It’s the fact that happy hour at a cannabis type bar with no alcohol is going to be a new concept that I’ve experimented a lot with, but I know most of the country has not.

That’s the most exciting part for me, because waking up the next day at 5:00 AM to run and go to work is a new feeling for an alcohol drinker himself when you’ve had a long night out. I think that’s the growth market and I think it’s going to be a much larger portion of the national category split.

TG Branfalt: Well, and if I’m not mistaken, Colorado just recently passed social use legislation, is that accurate?

TJ Stouder: Correct. But it’s small and there’s a few licenses. Again, in a nascent market, I know how to consume at home. It’s bringing me out into the … And again, look where alcohol is. It’s everywhere from the ballgame to the park, to the kid classes on the weekend, alcohol has found its way to be our social life. Cannabis is not there in any market with social use. It’s separate from what everybody else is doing.

TG Branfalt: Have you had any potential social use licensees reach out to you yet?

TJ Stouder: Not yet. We’ve talked to a few that are working on plans for the back half of this year in California. We’ve only launched in California to date, but writing’s on the wall coming very soon. We are talking to some people in New York that are … It sounds like they’re going to aggressively move to the lead in social use. I think things are going to come in 2022 for sure.

TG Branfalt: I have to ask you this question and recently there’s been other products that have gotten a little bit targeted for their marketing practices we shall say. I’m not going to name names here, but what your product is essentially, it is a powder. Do you anticipate, or have you experienced any pushback for a powdered cannabis product?

TJ Stouder: It’s a great question and nowhere you see the risks of powders and I know why some of these companies are receiving backlash, at least in my opinion. We try to tailor our entire experience around that beverage delivery and it all starts with our stick itself, which is it’s designed off the Mai Tai umbrella. MyHi, you start to see ordering a bar and a drink, it sits nicely on top and looks like an umbrella in your drink.

Really everything we communicate is about infusing safely above 21, 18 with a medical card, beverages and really even we stay away from alcohol trying to manage that experience. As you said, with microdosers, learn how you infuse four ounces of water, learn how that 15 to 30 minutes goes and really learn how it works with your body first.

Really again, we’re a wellness-focused company that sees a recreational high as part of a wellness routine and everything we do in our product follows that nature. I’ve seen some of the others that are going different roots with powders that frankly, again, because I believe in cannabis as a category, I believe in the wellness nature, I think we need to be overly cautious with everything we do ensuring that people are consuming safely.

As a company, we believe in that. We continue to push. I’d say the biggest backlash we receive is really from buyers and dispensaries that are learning the category and new formats and how the science behind the actual pattern itself delivers to the consumer that is an educational curve for the category that we think we can get around with great marketing, a great delivery device that really differentiates versus that crowd.

TG Branfalt: In the three years that you had said that you’ve been in this space, how much of that has been focused on educating people about your product?

TJ Stouder: A lot. We do it very simply because we do it via trial. We sell all of our products in one, singles. So you can try it first and assume it works for you. Biggest for us is check this out. We do it as cleanly, safely and with this technology very transparently as possible, give it a shot. It’s a lot of people, like you said, are exploring beverages in the early days, even the more connoisseur consumers, but it might be the first beverage they’ve ever tried.

It’s really experiencing that first stick is what we try to get everybody a chance to do via everything from events to sampling. Education is transparency in my book because I think the category in total is learning by the day. We give that consumer promise that we’re going to stay ahead of the curve and really vet the right technologies and ensure your experience is top notch.

TG Branfalt: Talking about the experience, we spoke briefly about the recipe earlier. Tell me about the process of coming up with that recipe, which includes green coffee bean extract, L-theanine, theanine. I’m not a science, man, and monk fruit, which I think is very interesting. Your background isn’t necessarily in food, beverage, so tell me about your experience coming up with the recipe and what that process was like.

TJ Stouder: Awesome. Number one is transparency and know your lane. I never try to be smarter than I am and I find somebody smarter than me when you need something like formulation. However, it started with an insight and as I mentioned earlier, better than a sativa. I’m disappointed by sativas and I think we all know the … or at least the more experienced cannabis will know the seeds aren’t what they used to be and sativas and indicas are mostly a myth.

There’s mostly hybrids available and the mix of terpenes on that plant will greatly affect your experience, especially state to state, et cetera. A lot of those challenges of flower. Sativa, I always find myself grabbing a coffee next to a sativa to actually give myself energy, “That’s not what you promised sativa,” is what I say as a consumer.

Really what we did, we picked a hybrid extract to really capture the essence of that THC nanoemulsion that goes into your bloodstream faster, really delivering a more elevated experience naturally. Then green coffee bean extract, which is pure all-natural green coffee bean, 30 milligrams. That’s about a third a cup of coffee. It gives you a nice social awake high next to your THC and it’s really energizing, productive.

It’s funny, the influencer is coming back to us when they run out of samples saying, “I got so much stuff done while I have my MyHi.” It’s a new category of high. We’re saying that kind of asking people to prove us wrong, but it’s a different experience versus other products we personally have tried. It’s energetic, it’s awake, it’s social and it’s buildable as you have a couple of them next to each other.

Green coffee beans, the core that you’re actually going to feel, the next one is L-theanine which really is anything negative anyone gets from coffee, jitters, drowsiness coming down, things like that, L-theanine kind of balances that out and really L-theanine means balance, focus in general, an all-natural let’s call it brain supplement.

It’s a nice next to that caffeine and THC, keeps you balanced and focused, which a lot are feeling, especially on those longer evenings of enjoying MyHi. Lastly, monk fruit is critical for the no sugar piece and no added artificial sugars, et cetera. Monk fruit … I don’t know how it was discovered recently.

I just wanted to learn more about monk fruit myself, but I’ve been using it in everything and anything I can. It’s all-natural sugar. It doesn’t spike your sugars for diabetes. It is a super fruit that we’ve been missing to sweeten nicely. It’s only 10 milligrams, but it gives a nice little sweet refreshing edge on the end and keeping that no sugar, no artificials.

TG Branfalt: Interesting.

TJ Stouder: I didn’t actually answer your question. I got all that from Google. I started with literally the insight and I said, “What’s the best way to naturally do this stuff?” I think it’s funny that we work so hard in a lab to come up with complex long formula cards that the consumer can’t understand, and that’s how the consumer actually finds wellness.

For us, we’re starting very simple. THC is at the center of our product. Everything else is to help that feeling along, but innovation path is strong and we’re planning on doing minor cannabinoids, other formulas, terpenes, et cetera, to really bring different moods, different taste profiles and whatnot to MyHi. It’s just a start, let’s start with energy.

TG Branfalt: Is there a particular terpene that you’re more excited to work with or a specific cannabinoid? I mean, you seem like you’ve done a whole of thinking about this.

TJ Stouder: Lots and lots. I’m excited for cannabis. I mean, what we don’t know is what I’m most excited for. I’ll give you an example on the terpene front. We study about 40 terpenes out of over … I’m not even going to quote a number. I’ve heard over a hundred thousand as the safest number I’d say known terpenes on the planet, most concentrated in cannabis as a plant.

For me, what was destroyed over years of stigmatization and prohibition of cannabis is too sad to think about and what’s yet to be discovered because we’ve only really started researching the depth of this plant is too much to dream of. Really crafting that experience with some of the scientists who actually do the work behind me being a googler with insights, there’s huge upside.

It’s just really tailoring that experience up to fast-acting and long-releasing that can do it 15 minutes by 15 minutes where you’re going to go all via this stick.

TG Branfalt: Again, I hate to harp on it, but it’s one of these products and you’re just so interesting in the way that you present it, that a lot of times I don’t really get to … What’s the word I’m … I don’t want to say excited again, but I’m normally not super stoked on these things. Now that New York’s legal, I do hope that it is something I am able to find on the East eventually.

What states are you most excited about entering? You said that you’re right now only in California, what’s the future look like?

TJ Stouder: We have a small team that’s very focused. California’s the largest market with the most brands, frankly, is why we’re starting there. We want to prove it against the big guys and again, that we can grow a cannabis consumer’s basket size, the guy who’s buying flower concentrates and edibles already, plus a MyHi.

As well as drive new traffic into every one of those stores to look at cannabis for the first time, because they saw a product like this or see that’s something that might be approachable to their world. We believe after proving that in California, looking at a multi-state operator that has multiple states quickly, three to five to 15. We provide a unique standard operating procedure that gets up and running quite quickly.

It’s the patented delivery device of the stick itself, the consumer brand that’s ready to plug and play into any market and really hit that demographic provides a differentiator versus cannabis. There’s, as you say, kind of … And I don’t know how to put this in the nicest way. I’m a consumer that loves going into dispensary and I see the excitement of every consumer in there. The products we got to step it up.

As I look at the counter and I see one after another of things that look a lot alike and don’t motivate me to consume it, it’s … I love cannabis. I’m happy to buy it because it’s something there, but how do I find which product’s going to change my life? How do I find the one that if I’m going into quarantine, I need to stock up for a year and a half because there’s no chance I’m running out of this product?

I think we, as a category need to continue to push ourselves that just because the consumer’s willing to buy it, doesn’t mean it’s our best effort. We got to push for better and better and better and more innovative. I get excited about as more states come on board, as federal legalization looms, better and better products are coming.

It’s exciting to see the innovation for me as a consumer, beyond our product, and I say this to all of us as motivation. It’s exciting to see new products, new consumption, new consumers.

TG Branfalt: I mean, I really appreciate your insight. Your background’s very different than a lot of people who enter the space, and you’ve obviously chosen a very successful team. One that shares your vision, which you’ve clearly stated and I think is very worthwhile in this space at the very least. What advice would do you have for other entrepreneurs looking to enter the cannabis space?

TJ Stouder: Excellent. I think number one is find what you do best and find how to do it in cannabis. I think the world we see in cannabis today is a very small portion of what it will be in the future. I talked about things like social lounges and hospitality. They don’t exist yet in cannabis. I get a lot of people that come and they do something completely different from what cannabis today looks like, which I felt like that person.

I’m a consumer brander that came from P&G and worked on fine fragrances down to detergent and it’s, how do I play a role in cannabis? There’s no brands, there’s no scaled consumer products, et cetera. Ah, this is a consumer product that we need to scale and the industry needs you with your well-meaning mission to come aboard.

It’s finding how cannabis grows into the world you live in because it’s going to, as legalization comes in, as more consumers come on board as part of their daily routine. Find what that is and put your all into it. You really want in, there is plenty of space to grow this category.

TG Branfalt: Finally, my man, where can people find out more about MyHi and maybe find out more about you?

TJ Stouder: Awesome, getmyhi.com, G-E-T-M-Y-H-I.com, that’ll be in the show notes, is the best place, check it out. Now, all of our information my team’s done a phenomenal job with the website in our early days of launch. There’s plenty there.

TG Branfalt: The marketing is really something special.

TJ Stouder: That’s where we start obviously, and then come to California. We’re starting there, but hey, get out there this summer. It’s the summer of ’21. People are traveling again. I think we’re hopefully past this pandemic. Check us out in California. Would love to hear your thoughts if you get some product. If not, ask your local budtenders, write to your governor wherever you are in cannabis. We’ll come to your state hopefully soon.

TG Branfalt: Brilliant. That’s TJ Stouder. He’s the founder and CEO of MyHi, a line of water-soluble, calorie- and sugar-free THC powder stir STIKs. Thank you so much my good man for being on the show and I really look forward to one day finding MyHi in New York or Massachusetts, or basically anywhere on the East Coast now that we are opening up. Thank you so much for being on the show.

TJ Stouder: Awesome. Thanks TG.

TG Branfalt: You can find more episodes of the Ganjapreneur.com Podcast in the podcast section of ganjapreneur.com on Spotify and in the Apple iTunes Store. On the ganjapreneur.com website, you will find the latest cannabis news and cannabis jobs updated daily, along with transcripts of this podcast. You can also download the ganjapreneur.com app in iTunes and Google Play. This episode was engineered by Trim Media House. I’ve been your host, TG Branfalt.

End


Green Thumb Industries Acquires One of Two Minnesota Vertical Licensees

Chicago, Illinois-based Green Thumb Industries Inc. last week closed on its acquisition of LeafLine Industries, marking the firm’s expansion into Minnesota. The deal gives Green Thrumb one of two vertical licenses in Minnesota, an operating cultivation facility, and five open retail locations.

The takeover also increases Green Thumb’s national presence to 15 states with a total of 73 operational retail locations. The deal gives Green Thumb the opportunity to open up three more additional retail locations in Minnesota.

In a statement, Green Thumb Founder and CEO Ben Kovler noted that Minnesota regulators had recently approved infused cannabis products, including gummies and chews, for the state’s medical cannabis program. State officials have also indicated that rulemaking for flower products is currently underway.

Green Thumb said there are about 29,000 registered medical cannabis patients in the state.

“We are excited to enter the Minnesota medical market and broaden access to cannabis products for Minnesota patients. We look forward to caring for LeafLine’s existing patients while ensuring a seamless transition.”  Kovler in a press release

Green Thumb indicated that, with the acquisition, the company has cannabis operations to serve more than half of the U.S. population, including California, Colorado, Connecticut, Florida, Illinois, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, and Virginia.

Last summer, Green Thumb acquired Dharma Industries one of Virginia’s four medical cannabis processing companies.

The terms of neither the LeafLine nor the Dharma transactions were disclosed.

End


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Cannabis Stocks Soar After Cannabis Rescheduling News

Cannabis company stocks surged on Tuesday following reports that the Drug Enforcement Administration (DEA) would move to reschedule cannabis from Schedule I to Schedule III under the Controlled Substances Act (CSA), Forbes reports. Canopy Growth Corporation shares surged more than 65% to… Read More

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Ganjapreneur: your source for daily cannabis news and business insights.

Welcome to Ganjapreneur, your go-to platform for the latest cannabis industry news. Our mission is to provide operators in the legal cannabis space with the information they need to succeed in this rapidly-evolving industry. Since 2014, we have been dedicated to keeping cannabis founders, activists, and investors up-to-date on the latest policy news from the US and internationally, as well as providing a wealth of resources to help them navigate the complex landscape of legal cannabis.

At Ganjapreneur, we believe that the legalization movement is about much more than just generating profits. Cannabis has been used as a medicine for thousands of years, and its legalization is an important step towards correcting the historical wrongs of cannabis prohibition, and could provide safe and affordable relief to people around the world suffering from a wide variety of health conditions. In addition to keeping the product accessible and affordable for those who need it, we believe that cannabis commerce should be accessible to people who have been persecuted by the War on Drugs, and that cannabis prisoners around the world should be released and have their records expunged.

Want to join the cannabis industry? First, understand its context.

The history of cannabis prohibition in the USA is a long and complex one, with roots stretching back to the early 20th century. One of the earliest attempts to criminalize cannabis in the US came in the form of the 1915 Harrison Narcotics Tax Act, which regulated opiates and cocaine but also included cannabis as a taxable drug. However, it wasn’t until the 1930s that cannabis began to be widely demonized in the media, with newspapers like William Randolph Hearst’s San Francisco Examiner publishing sensationalized stories linking the drug to violent crime and insanity.

Around the same time, Harry J. Anslinger, the first commissioner of the US Treasury Department’s Federal Bureau of Narcotics, launched a campaign to criminalize cannabis on a federal level. Anslinger noted that cannabis use was more common among minority communities and stated that their appreciation of “Satanic music” (i.e. jazz and swing) was a direct result of marijuana use. He also believed that marijuana use could cause white women to “seek sexual relations with Negroes, entertainers and any others.” In 1937, the Marijuana Tax Act was passed, which effectively made cannabis illegal on a federal level.

Despite these efforts, cannabis use continued to be relatively widespread throughout the 20th century, particularly among marginalized communities. In the 1960s and 70s, the counterculture movement helped to popularize cannabis use among a wider swath of the population, leading to increased pressure to decriminalize or legalize the drug. However, it wasn’t until the late 1990s and early 2000s that the first states began to seriously consider legalizing cannabis for medical use.

Cannabis Legalization Timeline:
  • 1996: California becomes the first state to legalize cannabis for medical use
  • 2001: Canada legalizes medical cannabis for authorized patients
  • 2012: Colorado and Washington become the first states to legalize cannabis for recreational use
  • 2013: Uruguay becomes the first country to fully legalize cannabis
  • 2014: Oregon and Alaska legalize recreational cannabis; Illinois becomes the 20th state to legalize medical cannabis
  • 2015: Puerto Rico legalizes medical cannabis
  • 2016: California, Nevada, Maine, and Massachusetts legalize recreational cannabis; Ohio, Pennsylvania, and Florida legalize medical cannabis
  • 2017: West Virginia and Louisiana legalize medical cannabis
  • 2018: Vermont becomes the first state to legalize cannabis for recreational use through the state legislature, rather than a ballot initiative; Oklahoma legalizes medical cannabis
  • 2019: Illinois becomes the first state to legalize recreational cannabis through the state legislature; New Jersey, New Mexico, and New York legalize medical cannabis; Colombia legalizes medical cannabis exports
  • 2020: Arizona, Montana, New Jersey, and South Dakota legalize recreational cannabis; Israel legalizes medical cannabis exports
  • 2021: Virginia becomes the first southern state to legalize recreational cannabis; Mexico legalizes recreational cannabis, becoming the world’s largest legal cannabis market by population; Ireland legalizes medical cannabis
  • 2022: France legalizes medical cannabis

Despite the growing momentum towards legalization, the US federal government has yet to fully embrace the movement. Cannabis remains illegal on a federal level, and businesses operating in the industry face significant legal and financial hurdles as a result. However, with more and more states legalizing cannabis each year, it seems only a matter of time before the federal government takes action as well.

Want to stay informed about the latest legalization news?

Subscribe to the Ganjapreneur community newsletter for our daily cannabis news updates and start getting your briefings!

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Social Equity: What Is It, And Is It Working?

In the cannabis industry, we often read about “social equity” and we see countless headlines discussing cannabis prohibition, America’s long history of injustice against marginalized communities, and thoughts for rectifying the past through equity programs. But while understanding our past and providing solutions for the future is core to change, I often wonder if a… Read More

How to Get the Most Out of B2B Cannabis Events

Business-to-business (B2B) cannabis conferences are an extremely useful resource for cannabis entrepreneurs at any stage of launching and/or operating their business. Whether you are attending your first-ever cannabis conference this year or you are returning to the events circuit after a pandemic-driven hiatus, this is a guide to help you get the most out of… Read More

Live Resin vs. Live Rosin: What’s the Difference?

Cannabis concentrates have proven to be one of the most rapidly-growing segments of the cannabis industry. Over the years, discoveries in cannabis extraction have largely driven industry expectations when it comes to determining a high-quality product — for example, the first CO2 extracts were praised as a replacement for butane-based products, while those same butane… Read More

Chris Ray: Navigating Change In Alaska’s Cannabis Industry

Alaska was one of the very first U.S. states to legalize cannabis after voters there embraced the reforms in 2014; the market was also the very first to get state-wide regulations for social cannabis use, although some towns have passed stricter local regulations than others. But while Alaska’s cannabis market is one of the oldest in the country, its immense size and inherent isolation make doing cannabis business more complicated than many other state-legal markets.

In the latest episode of the Ganjapreneur.com Podcast, Chris joins our host TG Branfalt to discuss the early days of Alaska’s cannabis marketplace, Chris’ transition from working in cultivation to the retail side of the industry, and strategies he implemented at The Tree House for improving foot traffic and the overall cannabis retail experience. The interview also covers unique Alaskan cannabis industry experiences, like flying on commercial airlines while carrying tens of thousands of dollars worth of cannabis products — because sometimes that’s the only option — and the benefits of getting to know your customer base on a more personal level.

You can listen to the interview through the media player below or through your favorite podcasts app, or keep scrolling down to find a full transcript.


Listen to the podcast:


Read the transcript:

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Cara Wietstock: Hi. I’m Cara Wietstock, culture editor at Ganjapreneur and host of our YouTube show, Fresh Cut. The best way to understand cannabis business is to speak directly to those who work within it and Fresh Cut was created to shine recognition on the people who fill these roles. In this interview series, we focus on those with their hands and the dirt, both literally and figuratively, from cultivators to bud tenders, educators to advocates, activists to lobbyists, we aim to illuminate the workers who keep this industry thriving. Enjoy one on one conversations with me and guests by watching along on the Ganjapreneur YouTube channel and follow our social channels to keep up with the latest episodes. Have a great day.

TG Branfalt: Hey there, I’m your host TG Branfalt and thank you for listening to the ganjapreneur.com podcast, where we try to bring new, actionable information and normalize cannabis through the stories of ganjapreneurs, activists, and industry stakeholders. Today, I have finally completed my near five-year mission to get somebody from Alaska on this show. I’m delighted to be joined by Chris Ray. He’s the general manager of Anchorage, Alaska’s Tree House. Chris has worked in the state’s cannabis industry since August of 2016. How you doing man?

Chris Ray: Good. How are you?

TG Branfalt: I’m very, very well. Like I said, it’s great to have somebody representing Alaska finally on the show. I have a lot of questions that I think a lot of people have been sort of asking me about so I finally get to have answers for them. But before we get into that, man, tell me about out yourself, your background, and how you ended up in the cannabis space.

Chris Ray: Yeah, before we hopped on here, like I was telling you, I started doing the retail thing after I went to college. I went to University of Idaho for a year, tried to figure out what I wanted to do with life. Realized a four year school wasn’t really for me so I kind of bounced around between Washington, Hawaii and then I ended up in Missouri. Just started working retail down there for a few years then I got a call from one of my old basketball coaches from back in my high school days and he said that he was starting a cannabis retail in Fairbanks and he wanted my help. And so August of 2016 rolled around, I moved up there, helped him out in the cultivation and then helped him out in the retail. Got that going October, 2016 and then I was with them until about April of 2017.

And then I went over and joined Grass Station 49 in Fairbanks. They started off with just one location. We expanded to two more in Fairbanks, so three total within the first two and a half years. And then we opened a store in Nome shortly after that. And then once we opened up that store in Nome, I got a call from a buddy of mine here in Anchorage who was starting up a retail and he had already had a cultivation going. He’s big in the local hiphop scene, which really kind of gained my interest and my attention. And then that’s when I came down here and started working for the Tree House. And so we just opened up in July of last year, so 2020. Haven’t been open for a year yet. Just been kind working through the kinks and trying to get everything going. That’s kind and where we’re standing now.

TG Branfalt: You say that you started in sort of the cultivation, retail and now you’re helping sort of build a store as a general manager. What were some of the challenges for you when you were making that transition?

Chris Ray: I think the biggest challenge is it’s never been done before, the cannabis retail. Essentially everything that you’re doing and learning, it comes with taking some L’s here and there. Some learning lessons. I think the hardest part though for me, is trying to find like the right people to fit in. Because I think everyone who smokes and who’s a stoner wants to be in the industry but you’ll notice that everyone that smokes and a stoner usually doesn’t have the work ethic or the know-how’s to show up on time or to do things like that. The little simple things. That was a big eye opener realizing that everyone isn’t going to really fit that mold. But once you get around the whole staffing because we’re in Alaska so there’s not very many people.

There are people but there’s not a whole lot like you would say in New York or in California to pick from. Getting around that, once you get around that, just trying to find the product too because we’re a big state, not a whole lot of people. There’s a lot of cultivations but you’re talking about anywhere from when I was in Fairbanks, for instance, having to get stuff from Valdez, that’s a whole day and a half trip, a drive down six to eight hours and then you’re talking about getting the product there. Well now you’re not going to drive back because you’ve been driving all day. Now you’re waiting for the next day to come back. If there’s any construction, which in the summer in Alaska, they call it construction season, stopping all the time. Wintertimes you’ve got the snow, snow storms where you can’t travel through. It makes it really difficult when it comes to the whole transportation and I’d say the hiring aspects of things.

TG Branfalt: Well, I had read once this very unique story about somebody, it was when the Alaska market was first sort of coming online and I guess a lot of places in Alaska, you can only get to by aircraft.

Chris Ray: Yeah. A lot of those other places like Juneau or Ketchikan. My buddy Jason, he runs Frog Mountain CO2 Extraction. I’ve been working with him for a few years now and he’s got a fly to Anchorage twice, three times a month just to get product to people. At that point, now you’re trying to get on schedule with all these retails to see when you can deliver, when you can’t deliver. And if you know anything about ordering and stuff like that, sometimes you got money. Sometimes you don’t. Someone’s like, “Hey, I’m coming up on the 30th,” but you just put in two huge orders for the 25th. It’s like, all right, now I got to kind of juggle these around because he’s only coming up this one time. The next time you’re going to see him is on the 15th or on the 20th. Flying by air is crazy.

TG Branfalt: Has anyone come into any issues with sort of regulatory bodies or anything because cannabis remains federally outlawed and you have to get on a plane with it? Or is there anything like that?

Chris Ray: From my experience and doing the transports and what I’ve run to with the airlines, as long as you’re straight and up front with them and you have all your paperwork and it’s all manifested and you have it on your persons, they’ll go through, they’ll take you to a room, they’ll check you out, make sure everything’s good to go. As long as your paperwork is correct, they send you through. At that point, when I go through TSA, I feel like they’re looking for explosives. All the necessaries that they should be looking for when I’m trying to do my job and run a business and I have paperwork from the state that says I’m legally allowed to fly through or transport this, there’s nothing they can really do about it. Now of course they can stop us and be like, “Hey, we don’t feel this is safe for you flying today.”

But I haven’t seen that happen with anyone. I popped on one of the local airliners with 20, $30,000 worth of concentrates and, “Oh yep. All good.” And I’ve got families on the plane sitting in front of me and behind me and I’m just loading up all this stuff on the aircraft and it is what it is.

TG Branfalt: That’s unlike any, no one else, no other operator in any other state has to deal with something like that. Can you tell the audience a bit more about Alaska’s cannabis law and what if anything sets it apart from some of the ones in the continental United States?

Chris Ray: I think the thing where we’re very different is in California, for instance, when you have medical, you have shops that are accessible to go get your medicine and to do what you need to do. In Alaska medical passed years, years ago, I want to say 96, I could be wrong but it passed years ago and we have no medical setup to where anyone can go and buy their own stuff. Everything’s like, all right, you’re medically set up. Here’s a card. You can grow. But in the state of Alaska, it’s already legal for you to grow so the only thing it’s really doing is if you’re a minor and you need it, then you can have someone grow for you. But you still can’t be like, hey, I need to go to the shop. Here’s my med card. Do I get a percentage off? Or is there a certain selection that I can go to? We don’t have any of that.

In Alaska, if you’re 21, you have a legal ID, you can come shop. Your medical card means nothing. And even if you have a medical card, you can grow but guess what? Me and my buddy, we’re legally 21, we’re allowed to grow in the house. It’s very different in that aspect, you would think there’d be something set up to where people could actually use that medical card to go use it and do something positive with it. But all they can really do is what they’re already allowed to do. But other than that, the regulations, we’re allowed to buy up to seven grams of concentrate per purchase per day. I know in Washington, you’re not allowed to do that. We’re allowed to get these cool little baller jars with seven grams of concentrate, in Washington they only get these little itty bitty ones.

TG Branfalt: Yeah. In Massachusetts, it’s the same way you can’t get more than a gram.

Chris Ray: Yeah. Which, if you have someone who smokes a lot, you’re going to be done with that gram by the time lunch is over.

TG Branfalt: Basically. Now you say that you grow your own and you have to grow indoors. Is there an outdoor growing season for cannabis in Alaska?

Chris Ray: Yeah. We have legal outdoor grows. There’s one in Fairbanks. What is it called? Fox Creek Farms or something like that. Rosie Creek Farms. They’re outdoor. They only harvest once at the end of the summer. That’s all they do. Entire wintertime they just clean up, process, make six packs, make joints. Me personally, I don’t think it’s very lucrative but then again, I don’t have an outdoor grow, so what do I know? But I just know in Alaska, once that permafrost sets come end of summer and it starts getting cold, if you don’t have that stuff planted in time right now where it’s still getting cold out in the springtime, you’re not going to be able to harvest in time. But some people do have the greenhouses that are enclosed, that get the sunlight and then it’s fixated with the AC inside so if it gets too hot, it can cool down a little bit. There are some assisted grows like that. Lots of people that are just locals grow outdoor if they have a big backyard or autoflower plants on the back deck are very popular. I know lots of people who do that.

TG Branfalt: Are you allowed? In some states you can’t sell clones? Is that something you’re allowed to do in Alaska?

Chris Ray: Yeah. Yep. If you’re a retailer and you have a cultivation, you’re allowed to sell your clones. I know some places do it on the regular. Some places don’t do it at all because they don’t want that risk of you taking a clone and going home and be like, oh man, you gave me spider mites or oh man, I got PM. And I didn’t get PM till I brought home this clone. And then they blame it on the retail or the cultivation for that matter.

TG Branfalt: Got you. We’ve talked about some of the challenges that you face, when I asked you earlier about the flying and that sort of stuff, what are some of the unique benefits to you think running a cannabis shop in Alaska?

Chris Ray: I feel like you get a lot more personable with the customers because you have your select fan base, not fan base, but customer base that like your store. In California, I’d imagine you’d probably have somewhere closer to 500 to a 1,000 transactions a day at a busy shop in town. You’re probably looking at like 200 to 400, maybe. Those people that are coming in, you’re seeing the same faces every day. You’re able to get up close and personal with those people, learn about them, really find out what they’re like and what they’re looking for and really cater to their needs versus just on a huge, corporation scale, buying everything on the map that you can because it sells or because the computer tells you that it’s doing good. I’d say that’s one of the main, big benefits about being in Alaska.

TG Branfalt: Well, and you talk about the computer and you do use data at the Tree House and could you tell me a bit about how you use that data and how that data translates to enhance the customer experience?

Chris Ray: Yeah, so right now we use GrowFlow for a point of sale. I started using it back in, I want to say 2018 is when we switched over at Grass Station when I was there. My biggest thing for a bud tender to come in and to use the system is I need it to be simple and I need it to be like their iPhone for instance or their Android. They can get on it, they can find their text messages, type it out. It sends, it’s done. When we use GrowFlow to find out those analytics and that information that we need for the retail, using their insights tool that they have to tap in to see all right, when are our most transactions going through? Is opening up at 8:00 AM on Saturday, Sunday worth it?

We found out that it wasn’t on the weekends for us but Monday through Friday we have a bunch of early risers that are there right at 8:00 AM as soon as we open up the doors, almost like getting their morning coffee. From that aspect that really helped us tap in with that and get that opened up because we were wasting a bunch of payroll hours on certain shifts and certain days where we had three people scheduled to where we look at GrowFlow and say, “Hey, from noon to 1:00 you’re only doing this much. Maybe you only need two people instead of three.” It’s been really good in that aspect.

TG Branfalt: Was it surprising to you that you had a bunch of people sort of waiting outside at 8:00 AM during the week?

Chris Ray: For me, no, because when I was in Fairbanks, that was one of the first big changes that I did was I was like, “Hey, it’s cool to open up at 10:00. I get that but there’s people who wake up at 6:00 AM that run out of weed the night before, wake up at 6:00 AM and only have a bowl and they got to be at work at 9:00 so when we open up at 8:00 they just got their coffee. Now they’re here. Let me get a couple of pre-rolls real quick.” Or some folks only have a 30 minute lunch so when they get on a lunch at 12:00, they don’t want to spend 10 minutes driving to the shop, waiting in line for five to 10 minutes and then trying to whizz back to work. If they can come in at 8:00 AM and get what they need, now they can enjoy that lunch that they have at 12:00, smoke that pre-roll. All right, I got 10, 15 minutes to eat my food now and to recover and to go back inside.

That was one of my big eye-openers right there and kind of why I knew it would work. It was just on the weekends. People go out Friday night, get hammered or whatever they might do, smoke a whole lot and then they don’t wake up till 9:00, 10:00 AM the next morning, especially if it’s their day off.

TG Branfalt: Yeah, nowhere in New York, we just went legal we don’t have shops yet and so we go to Massachusetts but they don’t open in Massachusetts until at least 9:00, most of them 10:00, 11:00. I wonder how much they might be doing the same thing you are trying to figure out when the best time for them to be open. Is there any other way that using the data has changed your operations?

Chris Ray: Yeah. With the top sellers and the top suppliers, when I first started using it, it was top brands. And then I know I talked, I can’t remember who I talked to within the company, but I was like, “Hey, like we really and use the brands portion. But if you could make it top suppliers, that would be 10 times helpful.” Because everything that pulls in through Metrc is going to pull the supplier name and the cultivation. Off the rip, if you can do something with suppliers that are doing the best, that’ll tell me which ones I need to really order from. And then that really helps out with your whole ordering on a big scale. You know who you need to spend what money with or who’s getting the large orders and who’s getting the smaller orders because a cultivation might have eight strains but only one of them is selling really well in your shop, which there’s nothing wrong with that. I just know that I need to buy lots of that one and have that one so it’s never running out because that’s one of the top five sellers.

Same thing with the products, whether it be a vape cartridge or shatter live resin, whatever it might be. I really might like refined and live resin but if it’s only selling 2,000 to $3,000 worth of stuff in the shop per two weeks, but Frog Mountain or someone else is selling five to six and that’s not my favorite and that still tells me that I need to go with Frog Mountain a little bit more versus what I like, which at the retail side, that’ll kill anyone quicker than something else was just ordering what you like. It’s like going to a restaurant. There’s 20 things on the menu for a reason. You know what I mean? You might not like pasta but someone else might come in and that’s what they’re looking forward to.

TG Branfalt: You’ve been in the industry since, for basically for what? Seven years now or six years.

Chris Ray: Yeah, I was Pakalolo’s first employee.

TG Branfalt: What do you think is or what have you noticed is, through the data, is the most popular sort of form maybe not brand, but is it flowers? Is it concentrates? Because state by state it differs.

Chris Ray: Pre-rolls.

TG Branfalt: Pre-rolls.

Chris Ray: Yeah, I would’ve thought, me personally, I love buying flower and rolling it up myself but there are so many people on go in Alaska, whether they’re going fishing, camping, whether they’re driving on a six hour trip to go somewhere up north or going on a road trip. Because everywhere in Alaska, you got to drive to get there. You’re looking at no less than an hour drive somewhere. I feel like people just traveling a lot and being on the go, those six packs and those four packs that we sell and just pre-rolls and all just take over the market. There’s lots of good flower out there and there’s lots of good concentrates, but people from concentrates there’s only a select few that use them.

TG Branfalt: Yeah. You mentioned people having to travel and as we discussed before we went on here, Alaska’s one of those places that I really would love to visit. Very much considered moving there at one point. What portion of your customers are tourists? And what role does tourism play in your bottom line ultimately?

Chris Ray: When I was in Fairbanks, tourism played I’d say during the summertime about a good 30 to 40% of your customers are tourists.

TG Branfalt: That much.

Chris Ray: Because you got people coming up. They’re trying to just see what it’s like in the summertime, trying to enjoy themselves. In the wintertime, I’d say it dies down a little bit because not many people want to come deal with the cold but they want to see the lights, especially in Fairbanks. Now, when I got to Anchorage, we kind of opened up right before the pandemic so the whole tourism thing, it really hasn’t kicked into full gear or I don’t even know if it will this summer. I know Alaska’s offering the vaccine to anyone that comes to Alaska that wants to get it. That might bring some tourism up. But at the Tree House, I really haven’t seen that in full scale yet but from Fairbanks in that summertime, I’d say a good 30 to 40% in the summertime. And then probably about 20, maybe 25% in the wintertime. But a lot it’s just your diehard locals that want to come through and support local businesses.

TG Branfalt: Do you guys have that corporate culture up there that have sort of permeated in other states?

Chris Ray: We have a couple of shops up here that have kind of taken that bigger, all right, we’re going to take a larger footprint. We want three cultivations. We want four retails. There’s a couple like that. Not a whole lot. I’d say for the most part with us being in Alaska, everything still seems small craft for the most part. But I hope it doesn’t come in here like that.

TG Branfalt: No, you’re super fortunate because the idea of an entire market being a craft market is it’s really unheard of down here.

Chris Ray: Now, there are a lot of cultivations to where I feel like there’s a lot more midgrade weed that it outweighs the good weed that’s out there for sure. And some of those guys that have two, three cultivations, that they’re putting out a lot of mid grade stuff. Those smaller guys that only have the one cultivation, sometimes they get overlooked.

TG Branfalt: And you find them through data, right?

Chris Ray: Oh, you have to, you have to, yeah.

TG Branfalt: You mentioned that the Tree House just opened around the time that COVID hit. The pandemic obviously didn’t change your operations that much at the Tree House. But when that did hit, what did you have to do? What did the industry have to do in Alaska to deal with that?

Chris Ray: The industry actually opened up curbside pickups. They didn’t open up for delivery but they did allow us to do some curbside pickups. Us at the Tree House where we’re at, we didn’t feel comfortable doing the walking outside with product and dropping it off to people. We kind of just went with the whole social distancing, cleaning on the hour, every hour, wiping down everything. Thankfully with our shop, we only have about 10 to 12 employees so keeping everyone safe and healthy for the most part, we were good. We didn’t have anyone break out with any cases or anything like that.

But the industry as a whole, with them doing the curbside pickup, I feel like it helped out a lot of shops because a lot of shops don’t have the floor space that we do to where people can come in and be distanced. For them to walk out real quick and all right, here you go, boom, boom, boom. You already paid for it. All right. Thank you. Make it real quick for them. I feel like it made some of the customers and the consumers feel safer about coming to get their product but once it kind of laxed up a little bit, I feel like people they’re looking forward for things to opening back up and being able to come back in and see the big jars of weed and smell them and have a more hands on experience. Because I feel like that’s why most people come to the shop is to have that hands on experience.

TG Branfalt: Yeah. It definitely had to sort of change the way that people were buying cannabis. Did you notice any sort of?

Chris Ray: Yeah, we thought sales might slow down a little bit because people not wanting to leave the house or whatever it may have been but with us being an essential worker in the state of Alaska, business stayed the same if not got better. A lot of people came out, they were willing to spend more money because they only wanted to come once or twice a week versus the four times they were coming. You had some people who were just at home more so they weren’t going out as much so they were smoking more. I’m sure anyone who’s a smoker knows how that goes. If you don’t have to leave the house or go check in or meet with anyone, you’re just smoking up because it’s there. No, business stayed pretty steady. Pretty good. It was a good time. It definitely had some learning lessons as far as how to pivot when a pandemic hits. That was definitely my first time working through something like that. Just following the guidelines of the state of Alaska and stuff like that.

TG Branfalt: And as general manager, you were the one that basically had to implement all this stuff.

Chris Ray: Yeah. And it’s tough, when some places are going overboard with it to where they’re only allowing five people in store at a time to where some shops were like, all right. people can come in as long as we’re distanced. Kind of putting it on the bud tenders a little bit like, “Hey, if you see it getting packed in here, ask some people to wait outside in the hallway.” But thankfully our bud tenders are pretty good. They’re pretty quick. Keeping the constant flow within the shop and we have an entrance one way and an exit the other way. Just kind of keeping that traffic streamlined and not having a whole lot of people pass by each other was a good thing.

TG Branfalt: Has the pandemic affected sort of your ability to keep, get or retain the employees because down here it’s, everybody is hiring all the time now because the unemployment check is good. Has that been something that you faced as well?

Chris Ray: No. The only thing that we really face is some employees they might get a job offer from a job that offers them medical benefits or something like that, to where it’s like, “Hey, I’m going to go take this job because I need the benefits,” or, “Hey, I’m going to go take this job because I only have to deal with five people now instead of 200.” But never did I have anyone be like, “Hey, I don’t feel safe working because of the pandemic or COVID or anything like that.” Like I said, we have a lot of space in our shop so even the bud tenders, from register to register, there’s a good four to six feet. And then from the customer to the employee, it’s already a good four feet. Just add another two feet to that, I feel like it made everyone feel pretty safe.

TG Branfalt: It’s good to hear that you guys did particularly well, just with health and being able to manage the pandemic. One of the things that I always found interesting about sort of Alaska’s cannabis law was that they were early adopters of allowing or eventually allowing social use. And a lot of states have since then either enacted their own law or included it in their own reforms. How do you think lounges will affect the industry?

Chris Ray: I’m very curious to see how it’s going to go. One of the first ones just opened up in Fairbanks but I don’t know if you know but it kind of varies from city to city with the rules on which you can consume. In Anchorage, they put it out to where, all right if you get an endorsement for the onsite, you’re only allowed to consume edibles. Well, in Alaska, the max for edibles is 50 milligrams per package. Exactly. I don’t see very many people be like, “Oh yeah, I’m going to go over here today and go buy some cookies and go sit down and eat these cookies.” I just don’t see that being lucrative to anyone. But in Fairbanks, they have it to where you can buy up to a gram of flower from that place and you can smoke it there.

The place in Fairbanks that’s open, they have, you can walk in there, there’s a cafe, TVs, it’s an old Chili’s building so kind of imagine a Chili’s. Walk in there, you get you your coffee or your smoothie or whatever, you buy a pre-roll, one gram pre-roll or buy one gram thing of flower and you can roll it up yourself. Smoke that and then leave. I’m just kind of curious though, if cops are going to sit around the corner, like they do at new bars when new bars open up or something like that and kind of camp out. I think it’ll be cool but I’m very curious to see how it’ll all pan out in the end.

TG Branfalt: I love the idea of an old Chili’s being able to smoke weed at an old Chili’s.

Chris Ray: Yeah. It’s got to grow in there. It’s got a little cafe and then they got the retail on the other side. It’s pretty big.

TG Branfalt: That’s great use of space, man. There’s an old Pizza Hut here. I hope they do the same thing here. Are you guys planning? You said you have a big space, are you guys planning to try to get that endorsement?

Chris Ray: I think if Anchorage were to ever change it to where you could smoke flower or consume concentrates, then I think it would be worth the conversation but just how it right now with just the edibles I don’t think it makes sense because you have to have a state of the art ventilation but I don’t know why you’d have to have a state of the art ventilation if there’s only edibles allowed. It just doesn’t make sense right now.

TG Branfalt: Is the beverage game strong up there?

Chris Ray: In comparison to Washington, it’s pretty weak or like California it’s pretty weak. There are a couple of good beverage companies up here, like Fire Eater, they make a few different sodas. Red Run makes a lemonade that a lot of people tend to like but other than that, there’s really not very many drinks. And again, that counts as an edible so the entire soda can only be 50 milligrams. I know most people are looking for a 100, 250 milligram drink because they want to drink half of it and store the rest of it for later or something.

TG Branfalt: Yeah. In Michigan when I was in Michigan, the max was actually 10 milligrams.

Chris Ray: Wow.

TG Branfalt: Yep. On a beverage. And that was actually medical too. But then you could get at the same time, you could also get basically syrup that was 500 milligrams a bottle and that was a good time.

Chris Ray: Yeah. We have the syrup but again, the syrup it counts an edible so it can only be 50 milligrams. There’s a public comment out right now to raise that from 50 to a 100 to see how that goes. I’m hoping they do. Enough people have voiced their opinions about it. I think that’s on the next meeting or the next agenda to see if they’re going to push that through. And if that does, I think that’ll open up the edible game a little bit to where more people want to come in and experiment with edibles and try them. Because I know right now, 50 milligrams to a 200 pound man, it’s really, it’s not going to do much.

TG Branfalt: Yeah. On the flip side though, if you’re worried about police also sitting around outside, you get someone who’s not used to it at all and 50 a hard.

Chris Ray: It’s a good amount.

TG Branfalt: It’s a hard ride.

Chris Ray: For sure. For sure.

TG Branfalt: You’re a young dude in this industry, you’ve been in your position now for a little under a year but you’ve been in the space since 2016, really at the beginning in Alaska. What’s some advice that you would have for someone looking to get into the industry, man?

Chris Ray: Be willing to come in and get your foot in the door any way that you can. When I first came up, I came up to help run the retail so I was the assistant store manager. When I left there, I had to go to a new company and just to get my foot in the door there, I just came in as a packager. If you’re good at your job and you can voice your opinion here and there and the right people are willing to listen, they will. But that would be my biggest thing is just be willing to get your foot in the door some way. A lot of people don’t want to come in and bud tend or package but a lot of the people that I know today that are in their top positions at certain companies within the state of Alaska, they all came in and they bud tended for a year, a year and a half, they packaged or they watered and trimmed for a year.

They did the little things to kind of study the people around them moving and making the bigger decisions so when the time came to where they needed someone else to make those decisions, they kind of already been watching and it’s a lot easier to teach. I feel like a lot of people come in on their high horse and want to be a manager or a key holder, someone of importance right away instead of coming in and just taking it easy and learning a little bit. It’s a brand new industry and a lot of places there’s a lot of room to grow and companies are just going to keep popping up right and left. If you’re doing your job at the one place, and they got nothing but good things to say about you, a lot of these other places are going to come to you, knocking at your door, looking to build with you instead of just having you be someone come in, making 15 an hour, showing up for 30 hours a week and clocking in and clocking out.

TG Branfalt: And maybe have showed up on time, right?

Chris Ray: And you hope so. Man, you’d be surprised, dude. You’d really be surprised.

TG Branfalt: I worked in the bong industry for a very long time, you can’t be surprised.

Chris Ray: Man, it’s just like, people want more and they want to raise or something but you can’t show up on time six out of the six days out of the week, seven days out of the week. It’s really not hard to show up five minutes before your shift. If you’ve got it to where you’re flexible and you can show up whenever, then by all means do that. But usually when you’re a bud tender or a packager, it’s like, hey, your shift starts up 4:00 so be ready to work at 4:00, not show up at 3:59, take your hat off, take your jacket off, go use the bathroom and then by the time you come out in front to count your drawer, it’s 4:10. It’s like, dude, where you been?

TG Branfalt: That will not get you far in the cannabis industry in Alaska or anywhere else I don’t think. Where Chris Ray can people find out more about you and more about The Tree House?

Chris Ray: All of my social medias are @shawnhemp_, that’s Shawn, S-H-A-W-N-H-E-M P_. That’s my weed moniker. I’ve been rolling with it for a little bit now but that’s pretty much where I post anything that I like, local cannabis, lots of buddies of mine that grow lots of rec stuff that I try for the first time, stuff like that. I’m pretty active on there. But the Tree House, all of our social medias are TheTreeHouseAK. And then we have our website, thetreehouseak.com. That pretty much has our deals, our menu, what we’ve got going on. We try to keep that up to date. And then just story on Instagram for the Tree House is pretty active and always shows what’s going on in the store and stuff like that.

TG Branfalt: Well, if I ever make my way to Alaska, I’ll know where to land the plane.

Chris Ray: Yeah. If anyone is coming to Alaska and they want to see some shops or smoke some good weed, come hit me up, shoot me a message on Instagram, reach out. Everyone in Alaska is super friendly, man. That’s the one thing I love about it here. It’s not like going to Vegas or California, there are some sheisty people in Alaska, don’t get me wrong. But for the most part, everyone who is involved with the weed game, they’re pretty good people.

TG Branfalt: Well, I really thank you for taking the time out and coming on the show and giving me this sort of perspective and insight because it’s been a long time that I’ve been trying.

Chris Ray: I’m surprised it took you five years. That’s crazy to me, man. There’s two or three podcasts up here that talk about marijuana on the local scene. There’s 30 shops. I’m just, I’m surprised no one’s reached out.

TG Branfalt: You guys are sketchy of us mainlanders.

Chris Ray: Oh, see man, I learned all my experience down there on the mainland. I was right down between Kansas City and St. Louis for about three, four years down there in Columbia.

TG Branfalt: Columbia. I’ve never been, man. I’ve never been.

Chris Ray: Yeah. It’s an interesting place, man. It’s like a tunnel between Chicago, Memphis, Kansas City and St. Louis.

TG Branfalt: Chicago’s a great city.

Chris Ray: It’s right where the University of Mizzou’s at. A lot of people come through there, a whole lot of different walks of life.

TG Branfalt: That’s Chris Ray. Thank you so much again. Hopefully you can keep me posted on whether or not that push works to get the level of THC in edibles raised. And hopefully we’ll talk again soon, man. I really appreciate it.

Chris Ray: Yeah. Yeah. Reach out whenever.

TG Branfalt: You can find more episodes of the Ganjapreneur.com podcast in the podcast section of ganjapreneur.com, on Spotify and in the Apple iTunes Store. On the Ganjapreneur.com website, you’ll find the latest cannabis news and cannabis jobs updated daily along with transcripts of this podcast. You can also download the Ganjapreneur.com app in iTunes and Google Play. This episode was engineered by Trim Media House. I’ve been your host, TG Branfalt.

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MSO Set to Acquire Chicago’s Last Independent Dispensary

Florida-based cannabis company Ayr Wellness on Monday announced it will acquire Illinois-based Gentle Ventures, LLC, which owns and operates Dispensary 33, in a $55 million deal. Dispensary 33 has two locations in Chicago in the Anderson and West Loop neighborhoods.

Jonathan Sandelman, founder, chairman, and CEO of Ayr, said in a statement the deal builds on the company’s “existing foundation” in the state, which Sandelman said Ayr “began building just a few months ago” when the company announced an agreement to acquire Herbal Remedies Dispensaries, LLC, which operates two dispensaries in Quincy, for $30 million.

Sandelman also noted that its social equity partner, Land of Lincoln, had been recently selected for a dispensary license in Bloomington.

“In any market where we operate, our goal is to develop scale and meaningful presence,” Sandelman said in a press release.

Dispensary 33 had been the last independent operator in the Windy City, according to a Chicago Sun-Times report. Bryan Zises, Dispensary 33’s co-owner, said the company has passed up on about a dozen other offers from multistate operators before deciding to sell to Ayr.

The company was also the city’s first medical cannabis dispensary, according to the Sun-Times.

“This offer that we’ve accepted wasn’t the highest price, but it was the best fit for what we believe is in the best interest of the people that work for us and for the city as a whole. We did not think that we would find a partner who was a good fit, and so we were prepared to go it alone for as long as necessary. But this was really a partner who made us feel very comfortable about their approach and what they want to do.” Zises to the Sun Times

Ayr currently has dispensaries in Arizona, Florida, Massachusetts, Nevada, New Jersey, and Pennsylvania, according to the company’s website.

The deal to purchase Gentle Ventures is expected to consist of $55 million upfront, including $12 million in cash, $3 million in sellers notes, and $40 million of stock, the company said in the announcement. An earnout is payable if certain adjusted EBITDA performance is achieved through the third quarter of 2022.

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Medical Cannabis Retailers to Follow HIPAA Guidelines in Illinois

New guidance in Illinois published by the Department of Financial and Professional Regulation (IDFPR) requires medical and co-located dispensaries in the state to protect patient information in accordance with the privacy and security rules set out in the federal Health Information Portability and Accountability Act (HIPAA) statute and attendant regulations, JD Supra reports.

Under the guidance, dispensaries that sell medical cannabis including those with adult-use licenses must complete a HIPAA security risk assessment by December 1. That risk analysis includes identifying areas of high-security risk for Electronic Protected Health Information (ePHI); an evaluation of the likelihood and impact of the risks; implementation of security measures to address the risks; and documentation of the measures and their rationale.

Among other regulations, HIPAA requires that covered medical providers complete initial and then recurring assessments of risks to their IT infrastructure, and undertake certain physical, administrative, and technical safeguards to safeguard patient information, the report says.

Illinois required that patients were given notice of Privacy Practices for Protected Health Information by August 1, according to the guidance. The rules also require dispensaries that have had patient information breached notify the IDFPR of the breach within 60 days of discovery. The guidance notes that in the event of a theft of dispensary computers that are encrypted, businesses are not required to report the theft but are “strongly encouraged” to file a report with the agency.

Illinois is not the first state to protect medical cannabis patient information; Massachusetts also requires that dispensary workers are trained on patient privacy and confidentiality and have records systems that are configured to protect patient privacy.

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Guam Chooses Metrc to Track Medical Cannabis Program

Guam has chosen Metrc as its seed-to-sale tracking system, bringing the U.S. territory one step closer to rolling out its medical cannabis program, the Governor’s Office announced on Monday. Department of Public Health and Social Services (DPHSS) Director Arthur San Agustin said with the selection of a seed-to-sale provider, officials “now can begin to build the framework of Guam’s cannabis regulatory system.”

Guam Governor Lou Leon Guerrero said, “the cannabis industry will benefit [the Guam] community by funding expanded public services in health and public safety, and providing alternative treatment and rehabilitation for people who need it.”

“Over the last decade, we have seen substantial evidence that cannabis has medicinal benefits. With the final review by our Cannabis Control Board on the rules and regulations for the industry, we can more efficiently control recreational use and ensure safe and regulated products.” Gurrero in a statement

Metrc holds exclusive government contracts in states with medical and adult-use cannabis programs, including Alaska, California, Colorado, Louisiana, Maine, Maryland, Massachusetts, Michigan, Missouri, Montana, Nevada, Ohio, Oklahoma, Oregon, Washington, D.C., and West Virginia.

Jeff Wells, CEO of Metrc, said the firm is “excited to rise to the challenge of this unique regulatory opportunity.”

“We look forward to working with both regulators and licensed business owners to implement the island’s first regulatory track-and-trace program,” he said. “We are proud to play a leading role in ensuring the safety and security of the nation’s legal cannabis market.”

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Curaleaf Set to Acquire Western Operator Tryke for $286M

Massachusetts-based cannabis multi-state operator Curaleaf on Monday agreed to acquire Tryke Companies, which operates in Arizona, Nevada, and Utah, for $286 million. The cash and stock deal is expected to close in the second half of next year, following regulatory approvals.

In a statement, Curaleaf Founder and Chairman Boris Johnson said the deal would expand the company’s U.S. presence into the three western states where Tryke operates “while yielding meaningful benefits” to Curaleaf stakeholders. Tryke owns and operates two retail dispensaries in Arizona and four in Nevada under the Reef brand. The company’s brands are sold in over 50 locations throughout the company’s operating footprint.

Under the terms of the agreement, Curaleaf will pay $40 million in cash at closing, with the remaining $75 million in cash paid in equal installments on the first, second, and third anniversaries of the closing. The stock portion of the transaction consists of 17 million subordinate voting shares of Curaleaf and will also be paid in three equal installments on the three anniversaries of the closing. An incremental earnout of up to 1 million Curaleaf shares may be paid in 2023 based on the business exceeding certain EBITDA targets for the previous year.

In a press release, the companies note that Tryke has “compelling” EBITDA margins in excess of 35% and is expected to record nearly $110 million in full-year 2021 revenue.

Last month, Curaleaf completed its acquisition of Los Sueños Farms, the largest outdoor cultivation operation in Colorado, in a $67 million deal.

Last March, Curaleaf announced it would acquire EMMAC Life Sciences Ltd., Europe’s largest vertically integrated cannabis company, for approximately $286 million.

The Tryke deal still requires the approval of the Nevada Cannabis Compliance Board.

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Leafly Report: Cannabis Fifth Largest U.S. Crop

Cannabis is the fifth most valuable crop in the U.S., according to Leafly’s first-ever Cannabis Harvest Report. The report looked at cannabis production numbers in the 11 states where both medical and adult-use cannabis are available to customers and found 13,042 cannabis farm licenses in those states grow 2,278 metric tons (5.02 million pounds) of cannabis annually.

That is the equivalent of 57 Olympic-size swimming pools or more than 11,000 dump trucks stretching 36 miles and over 2 billion joints the report says. The $6.175 billion worth of cannabis produced annually in the U.S. puts the crop ahead of cotton and peanuts.

The authors note despite these staggering numbers, cannabis sales are rarely tracked by state or federal officials.

“Our goal with the Leafy Harvest Report is to quantify annual cannabis production in operational adult-use states, just like the USDA’s Economic Research Service does for all non-cannabis crops. This is the first time anyone’s done this, as far as we know. Voters, lawmakers, and industry leaders need these basic facts to make informed decisions.” Leafly in a press release

The report found only corn, soybeans, hay, and wheat topped cannabis’s cash crop numbers. Although still federally illegal, cannabis ranked number one in value in Alaska, Colorado, Massachusetts, Nevada, and Oregon; and its crop value ranked no lower than fifth in the 11 states analyzed. Colorado sells the most cannabis annually, 657 metric tons, while California is close behind with 514 metric tons in yearly sales, the Leafly harvest tally found.

The paper highlights the inadequate banking and insurance options available to cannabis farmers and the enormous amount of money and time spent navigating regulatory roadblocks even before the plants are in the ground.

“America’s adult-use wholesale cannabis crop returned a mind-boggling $6.175 billion to farmers last year, ranking it as the 5th most valuable crop in the United States. Yet, due to federal prohibition, America does not treat cannabis farmers like farmers,” said David Downs, the report’s lead author, and Leafly’s California Bureau Chief. “They are subject to more state and federal taxes, regulations, and stigma than any other type of farmer. These barriers hurt small legacy farmers the most. This plant is helping generate wealth, employment, and community investment around the country, and our legislators need to recognize the opportunity cannabis presents for Americans today.”

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Rhode Island Awards Five New Medical Cannabis Dispensary Licenses

Rhode Island officials on Friday awarded five new medical cannabis licenses for new dispensaries, WPRI reports. The lottery selected five companies from geographic zones in order to spread out the new providers.

RMI Compassion Center won the license for Woonsocket, along with Pinnacle Compassion Center in Central Falls, Green Wave Compassion Center in Foster, Solar Therapeutics in Cranston, and Plant Based Compassionate Care in South Kingstown. None of those municipalities currently have a dispensary as there are currently just three in the state in Providence, Warwick, and Portsmouth, the report says.

The lottery for a sixth zone was not included in Friday’s announcement due to an ongoing lawsuit by Atlas Enterprises LLC, which was disqualified because its application is for Newport which has banned cannabis operations. Atlas is appealing the disqualification and the lottery for the zone will take place once the case is adjudicated.

Another applicant was disqualified after admitting to paying a bribe to former Fall River, Massachusetts Mayor Jasiel Correia. In September, Correia was sentenced to six years in prison for extorting cannabis companies in exchange for non-opposition letters to allow cannabis companies to open shop in Fall River.

The lottery comes two-and-a-half years after lawmakers approved expanding the number of dispensaries in Rhode Island from three to nine. Lawmakers are also close to a deal to legalize cannabis for adults in the state, the report says, noting that the Senate passed the reforms earlier this year but it competed with Gov. Dan McKee’s proposal, and now key officials from the House, Senate, and Governor’s Office are negotiating a compromise.

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Steven Van Zandt Launches Cannabis Pre-Roll Line

Actor and musician Steven Van Zandtor Little Stevenis launching a line of pre-rolls in partnership with Canna Provisions called Underground Apothecary, Asbury Park Press reports. Van Zandt is a Rock and Roll Hall of Fame inductee, a member of Bruce Springsteen’s E Street Band, and was featured in “The Sopranos.”

“The United States may be the only country in the world that considers health care, both physical and mental, as an afterthought. Little Steven’s Underground Apothecary was created to help combat that issue by focusing on natural, holistic remedies. Some will help relax you, some will help energize you, all will help you take charge of your own wellness.”Van Zandt in a statement via the Park Press

Ten percent of the proceeds from the line will be donated to the National Organization for the Reform of Marijuana Laws (NORML).

“We need to help spread cannabis education, destigmatization, and stop unjust criminalization for a plant that not only does a lot of good but has proven during COVID to be almost as essential as art to people’s well-being and quality of life,” Van Zandt said in a statement

The products will be exclusively available at Canna Provisions store in Massachusetts.

Canna Provisions and its CEO Meg Sanders has previously partnered with musician Willie Nelson’s estate on his line of cannabis products, Willie’s Reserve.

“Little Steven wanted to be sure to have an approachable, low-THC and high-CBD cannabis that is less about the recreational high, and more for people seeking the benefits of cannabis and cannabinoids like high-CBD cannabis on the body and mind,” Sanders said in a statement.

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Danielle Schumacher: Recruiting Talent for a Diverse Cannabis Industry

There are more new jobs and employment opportunities in the cannabis industry now than ever before. But for many stakeholders, the paramount concern is building a more fair and inclusive industry — THC Staffing was founded to address the disproportionate opportunities for women and BIPOC entrepreneurs and employees in the cannabis space.

We recently interviewed THC Staffing’s founder and CEO Danielle Schumacher about her company’s founding mission, the benefits cannabis companies can expect from working with a professional recruiter, and reactions and success stories from her many years in the industry. This interview also covers the many first-of-their-kind projects that THC Staffing helps manage, including the Women of Color in Cannabis CannaCareers project and the Second Chance Hiring Initiative, which is the first national cannabis job pipeline for people with previous convictions.

Read the full interview below!


Ganjapreneur: Why did you found THC Staffing in 2014?

Danielle Schumacher: Despite BI&POC communities being disproportionately impacted by the drug war – including thousands still incarcerated and millions disenfranchised by felony convictions – the vast majority of cannabis businesses are owned by white men, and there is also a glaring lack of diversity in the workforce.

THC Staffing was the first staffing firm to center diversity, equity, and inclusion in recruiting for the cannabis industry. Building a diverse and inclusive company culture is not only proven to be better for a company’s bottom line; it’s the right thing to do. We offer advisory services to cannabis companies seeking to adopt more inclusive recruitment efforts.

What sectors of the cannabis industry do you serve?

All; however we have ample experience recruiting and matching specialized managers in cultivation, extraction, manufacturing, lab testing, and dispensaries. My hands-on work experience in cultivation, dispensary, and nonprofit operations is very helpful when matchmaking for these sectors.

What is the mission at THC Staffing, and what initiatives are you working on to fulfill this mission?

Our mission is to build a diverse and inclusive cannabis industry by prioritizing employment and ownership for communities most impacted by the War on Drugs – particularly women, people of color, LGBTQI, formerly incarcerated individuals, people with disabilities, across all ages, regardless of citizenship or primary language.

We prioritize diverse candidates throughout every step of our recruiting process — from helping companies navigate fair hiring processes and job description messaging, to identifying the most qualified applicants. We also help companies craft and implement social impact plans, community engagement initiatives, and inclusive HR practices.

Also, we donate 10% of our income to nonprofits who share our values.

We are a founding partner of WOCC CannaCareers, a free career services program of Women of Color in Cannabis; we are the staffing partner for Supernova Women’s EquityWorks! Incubator; and we are working with Illinois Equity Staffing on their Second Chance Hiring Initiative.

What are the benefits of hiring a recruitment firm to fill open positions?

Recruiters who understand the industry and the company’s needs make the hiring process more efficient and less stressful. Recruiters specialize in how to craft and promote job listings to draw the best candidate pool. When candidates feel supported in the process, the interviews are more meaningful and productive. Especially in an emerging and highly regulated field like cannabis, many of the most qualified candidates prefer to work with a third party recruiter who can help them navigate the options and negotiations. Good recruiters will also stay in close contact with the people they place, which helps with retention and conflict resolution.

What results have some clients seen after consulting with you and your team?

Companies often remark that they don’t know how we found such a diverse and qualified candidate pool. They also notice that our candidates are more prepared for interviews and easier to onboard and train. I am very proud that most of the people we place stay with the company for years and make a noticeable contribution to the team. Many of our candidates are social justice advocates and can work respectfully with all kinds of people, which are major benefits for cannabis companies.

Companies who work with us on building inclusive HR policies and procedures can see and feel the culture change and overall growth and retention. In some cases, working with us has made the difference in whether a company is compliant with regulations that require successful implementation of diversity hiring, community engagement, and social impact plans.

Do you look for anything specific (either on a resume or in person) when recruiting someone?

Integrity, attention to detail, and willingness to learn – 3 of the most important qualities for all sectors of the industry – can be demonstrated through a resume and in person. Resumes should be engaging, easy to read, and in an organized and consistent format. I also pay close attention to how candidates communicate throughout the process i.e. email responses are prompt and thorough and all communication is respectful.

When did you partner with Oakland, California social equity incubator Supernova Women, and what services do you provide them?

In late 2020, I began assisting Supernova Women with recruitment for the workforce development cohort of their social equity incubator. I promoted the opportunity for paid training to my network, and processed all applications. I led the interview process, and was also liaison to the City of Oakland. I also advise on retention and job placement.

What is the Illinois Equity Staffing? How do you contribute to this initiative?

Illinois Equity Staffing provides recruiting, HR, and training for cannabis companies. They invited me to assist with their Second Chance Initiative, which is the first national cannabis job pipeline for people with past offenses, charges, or backgrounds. This includes people who have previously been incarcerated and people who have had their record expunged. I build relationships with re-entry groups and other community groups who work with justice-impacted individuals, and assist advocates and candidates throughout the hiring process. I also help Illinois Equity Staffing and participating employers navigate the legal and cultural context of recruiting and hiring second chance candidates for cannabis jobs.

What is your role as a founding partner in the Women of Color in Cannabis CannaCareers platform?

During the early months of the pandemic, I began researching virtual events and came across WOCC’s monthly sessions. I was really impressed with their mission and programming and reached out to offer support. We began meeting and quickly realized that I was uniquely qualified to help them realize one of their long-term goals of providing cannabis career services tailored for women of color. After several months of planning, we officially partnered with Ashley Boucher of Quality Control Analytics (a Massachusetts certified trainer), and Ann Brum of Joint Venture Co. As a team, we have developed a vetted job board and a webinar series that walks through the job descriptions and qualifications of each sector of the industry. Each webinar also includes resume and cover letter advice and how to find job openings and prepare for interviews. Myself and Amber McDonald offer free resume reviews.

Why did you launch the mentoring program, and how many mentor & mentee partnerships are in the first cycle?

Our first-of-its-kind mentoring program provides an opportunity for experienced cannabis professionals to guide job seekers and entrepreneurs in developing practical skills and a community-based network. The Program’s mission is not only to help a diverse range of individuals access industry knowledge but also to provide a fair chance to underserved communities and those who are negatively affected by the war on drugs and have not had pathways to employment and ownership in the cannabis economy. We encourage women, POC, LGBTQ+, formerly incarcerated individuals, and people with disabilities to participate. The Program is free to participate in and includes individual and team mentoring. Through a culmination of decades of networking and relationship-building with diverse industry professionals from across the nation, our pilot program connected 50 mentees with a mentor and monthly group sessions.

How do you pair mentors and mentees to best support positive growth? Are there any qualifying factors to take part on either side of the program?

Matches are based on a mentor’s relevant professional experience to meet the mentee’s career goals, and also shared identity and interests. Mentors and mentees accept or decline the match. Participants attend a group orientation before meeting 1-on-1. We require everyone agree to a robust Code of Conduct, and we provide a workbook and ongoing support for mentors and mentees.

What is your best piece of advice for someone hoping to start a career in the cannabis space?

All experience is transferable. However, if you feel overwhelmed or don’t know where to start, I recommend figuring out what you don’t want to do. If you don’t want to do customer service, don’t apply for budtending or sales jobs. If you don’t want to or can’t do physical labor, don’t apply for cultivation or manufacturing jobs. If you don’t want to work for corporations, research and network with ancillary and small businesses. It’s important to know your limits and restrict your search accordingly.


Thanks so much, Danielle, for taking the time to answer our questions. To learn more, visit THCStaffingGroup.com.

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Cannabis Mergers & Acquisitions Heat Up With Three $60M+ Deals in One Week

Cannabis firms Ayr Wellness Inc., Curaleaf Holdings Inc., and The Parent Company each announced acquisition deals on Monday for $80 million, $67 million, and $65.2 million, respectively.

Miami-based multistate operator Ayr announced the close of its purchase of PA Natural Medicine, LLC, which operates three dispensaries in Bloomsburg, State College, and Selinsgrove, Pennsylvania. Those dispensaries will be rebranded to “Ayr” by the end of the year, the company said.

The terms of the deal include upfront consideration of $80 million, including $35 million in cash $25 million in seller notes, and $20 million in stock. An earn-out based on 2021 Adjusted EBITDA, is payable in the first quarter of next year.

Ayr now operates in Arizona, Florida, Massachusetts, Nevada, and Pennsylvania.

Massachusetts’ Curaleaf also on Monday said it had completed its acquisition of Los Sueños Farms, which at 66 acres is the largest outdoor grow in Colorado. In a statement, Boris Jordan, executive chairman of Curaleaf, said the “deal provides Curaleaf with a high-quality, efficient, and low-cost supply of biomass to support our wholesale and retail customers in Colorado.”

“And, once interstate commerce is allowed, on a regional scale. Overall, our newly expanded cultivation capacity will allow us to better serve Colorado’s $2.2 billion annual cannabis market opportunity.”Jordan in a statement

The $67 million deal includes land, equipment, a 1,800 plant indoor grow, and two retail cannabis dispensaries.

The $62.5 million deal announced also on Monday by California-based The Parent Company (TPCO Holding Corp) is for 100% equity of the retail dispensary and delivery operator Coastal Holding Company, LLC, for $16.2 million in cash with considerations of up to $40 million in equity of The Parent Company upon the completion of milestone events, the company said in a press release. The deal also includes a $9 million option to acquire the remaining equity of a dispensary that Coastal currently holds a minority interest in.

Once finalized, the acquisition will increase The Parent Company’s current California retail store and delivery depot footprints to 11 and six, respectively. The company said it will position it with the second-largest operating retail dispensary and delivery hub in the Golden State with an expanded reach to more than 80% of the state’s population.

The deal still requires approval from state regulators and the NEO Exchange which is expected next year.

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Justin Bieber Reveals ‘Peaches’ Cannabis Pre-Rolls

Canadian singer and former teen idol Justin Bieber has partnered with Los Angeles-based cannabis company Palms to release “Peaches,” a product line of cannabis pre-rolls named after a song on his latest album, according to a Forbes report.

Palms, or Tres Palmas Inc, specializes in cannabis pre-rolls with its flagship product line currently available in the California and Nevada marketplaces.

The Peaches pre-rolls are available starting today in three adult-use markets — California, Nevada, and Massachusetts — as well as Florida. The packages cost between $50 and $60 per pack and contain seven half-gram joints featuring fruity and citrus flavors (note: Florida-based Peaches products will only contain five pre-rolls as per the state’s restrictive medical cannabis rules).

While the financial details behind Palms’ and Bieber’s partnership were not disclosed, a portion of Peaches profits will reportedly be donated to cannabis support groups including Veterans Walk and Talk and the Last Prisoner Project.

“I’m a fan of Palms and what they are doing by making cannabis approachable and helping to destigmatize it — especially for the many people who find it helpful for their mental health. I wanted to make sure that I was doing something with them that felt genuine and Peaches felt like a good place to start.” — Bieber, in a statement

Bieber has previously been candid about using cannabis to manage his own mental health.

Tres Palmas Inc. co-founder Noah Annes told Forbes that Bieber’s “vulnerability and openness about his mental health struggles” had impressed the company. “With Justin’s help shining the spotlight on these important topics, we hope to inspire others to talk more freely about both mental health and cannabis consumption,” he said in the report.

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Jon O’Connor & Amy Cirincione O’Connor: Humboldt Cannabis Tourism

As cannabis reforms become more and more widespread, the traditional tourism industry has unfortunately been slow to accept the cannabis community. Even in Humboldt County, California — which is world-famous for its expert cannabis cultivators and cannabis-friendly climate — travelers can find it difficult to legally appreciate the region’s most archetypal crop.

In our latest podcast episode, our host TG Branfalt interviews Jon O’Connor and Amy Cirincione O’Connor, who co-founded Humboldt Social earlier this year on a mission to deliver cannabis-friendly lodging, dining, and event opportunities. This podcast episode covers their company launch, the latest cannabis tourism trends as society emerges from COVID-19 restrictions, California’s limited opportunities for social use, and more!

Tune in to the interview via the media player below or scroll further down to find a full transcript of the podcast.


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Read the transcript:

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Cara Wietstock: Hi, I’m Cara Wietstock, culture editor at Ganjapreneur and host our YouTube show Fresh Cut. The best way to understand cannabis business is to speak directly to those who work within it and Fresh Cut was created to shine recognition on the people who fill these roles. In this interview series, we focus on those with their hands and the dirt, both literally and figuratively. From cultivators to bud tenders, educators to advocates, activists to lobbyists. We aim to illuminate the workers who keep this industry thriving. Enjoy one-on-one conversations with me and guests by watching along on the Ganjapreneur YouTube channel and follow our social channels to keep up with the latest episodes. Have a great day.

TG Branfalt: Hey, there, I’m your host TG Branfalt and thank you for listening to the Ganjapreneur.com Podcast, where we try to bring you actionable information and normalize cannabis through the stories of ganjapreneurs, activists, and industry stakeholders. Today, I’m joined by Jon O’Connor and Amy Cirincione O’Connor, founders of Humboldt Social, a California hospitality and wellness brand that is incorporating cannabis into its current business model. Jon has been a founding COO and board member of Dosist, a globally recognized cannabis wellness company, and is a member of the founding team of cannabis wellness brand, Papa & Barkley. How are you doing this afternoon, Jon and Amy?

Jon O’Connor: We’re doing great.

Amy Cirincione O’Connor: Doing great. Thank you.

TG Branfalt: So, before we get sort of in the details of this really, really, really cool project you guys have going on tell me about yourselves and tell me about Humboldt Social.

Amy Cirincione O’Connor: Let’s see, I am a licensed clinical social worker who came into this industry, I think accidentally. I would think as Jon and I got together and started kind of planning out our future, realizing that the path of AirBnb and investing in properties that could also be revenue streams for us would give us so much flexibility in terms of our life, right. It would give us opportunities to travel and to just see the world in a really different way, and maybe not be locked into a 9:00 to 5:00 job for the rest of our lives.

TG Branfalt: Who wants that?

Amy Cirincione O’Connor: Exactly. And so that was really the sort of axy. I think we were just thinking, we would just dip our toes into hospitality by renting out a spot that we owned and living out of backpacks for a while, and then we’ve just sort of grown and grown and grown. And for us, I think integrating cannabis came in just seeing a real lack of integration and recognition of cannabis, not just the plant, but also the community within the hospitality industry. We just so much of a, especially in an area like Humboldt where cannabis and tourism are really the twin drivers of the economic engine up here, for us it just felt really natural and kind of obvious to join them together. And so, I don’t… unlike Jon, I don’t have any formal business background, but like I said, it’s kind of obvious. I think some of the things that need to get done and so just been learning along the way.

TG Branfalt: And how about you, Jon? Tell me about how you came into all of this.

Jon O’Connor: Yeah, well, look, I’ve been in Humboldt County for about 21 years now. I came here after college and the interesting thing is I’m still not local, after being here for over half my life. But I’ve very much appreciated the culture and the people. I started out doing tourism, so I ran zip lines. I was a river guide, all sort of surrounded redwoods in Humboldt. And after we sort of continued to build that business, Amy and I started doing vacation rentals and then we started opening some bars. We opened up an oyster bar. And then we kind of realized that not everyone needs to go zip lining or river rafting, but everyone needs to sleep.

So lodging was a little bit more effective for us on the sales front. And then we also realized everyone needs to eat. But then even after that, everyone has vices. So after opening up some bars and connecting people with adult beverages, started looking at cannabis. I was introduced to cannabis as a profession about six years ago when one of the ex mayors of Arcata, which is kind of in the center of Humboldt County, introduced me to a farmer and broker and said, hey, this guy wants to do a cannabis tourism center. You might be a good connection to help him out. Very shortly thereafter, we started meeting with some investors in the Bay Area, and before we knew it, Dosist was launched. We had a marketing firm out of the East Coast.

They came in as a partner and then boom, it exploded, and then the founders started taking each other out and then I resigned. And just as I was resigning, Papa & Barkley was launching and needed a home for manufacturing. So we connected with the founder who’s Amy’s second cousin, who dropped a bunch of money in our bank account and we started finding manufacturing spaces and got one of the first licenses in Eureka to do manufacturing for Papa & Barkley. And then kind of speed forward a couple years now to the pandemic, we got so busy with our careers and lives, we either needed to grow our hospitality business because we have a couple hotels and bars and restaurants, so we needed to sell it. And we wanted to lean into cannabis and hospitality and do it together.

Humboldt County is… there’s 15,000 cannabis farms in Humboldt County. There’s 4,000 wineries in California. So we have almost four times, three to four times as many cannabis farms as we do wineries. And the California wine industry produces 80% of the wine that the nation consumes, but there’s only two to 3000 licensed cannabis farms in Humboldt. So the rest are traditional market. So it’s interesting that even the hotels in Humboldt County don’t lean into cannabis. So our mission is to normalize cannabis and hospitality. We’re doing that by bringing people into our hotels and you can go straight and go to the restaurant, go right to the bar or turn left and have a consumption experience in the hotels.

We’ve also partnered with Papa & Barkley where we’re creating sort of immersive hospitality and cannabis experiences. So you walk in and there’s a gift shop, a wellness shop that’s unlicensed. So you can get everything from CBD products to wellness products in the very start, of the very beginning of the dispensary. You go in and you get that licensed experience and you go outside and there’s a full food truck and outdoor restaurant. You go a little bit farther back, and there’s a consumption lounge where you can consume. And then if you want a medicated activated massage, you can… There’s one or two massage therapists that are there every day, doing cannabis infused massages, or CBD infused massages, you can choose.

TG Branfalt: So you’ve built heaven.

Jon O’Connor: We’ve built what everyone assumes is in Humboldt County. So what’s interesting about hotels in Napa Valley and Sonoma is you don’t walk into the hotel and there’s not pictures of wine all over the place. You walk into the hotel and it’s just normal hotel. It’s just in the center of all this cool wine experience and they have wine as well. So we are creating really cool boutique hotel experiences and cool restaurants and acknowledging that we’re in the center of the cannabis universe with 15,000 farms.

TG Branfalt: So tell me about… I mean, I can’t describe to you how much I really want to go there right now, as it snows in upstate New York, but what are California’s social use policies? I mean, when I go to, or when I was able to go to Montreal pre-pandemic, you could buy cannabis, no smoking in the hotels. You could smoke in public places, so long as you’re not near school. So we did a lot of smoking in the parks and in the street, but what are California’s policies?

Jon O’Connor: So let me tell you how New York is doing it right and then I’ll tell you how California’s done it wrong. So New York right off the bat on day one, they decriminalized it. So you can walk down the street in New York, even at Central Park, you can light up and you can smoke. Anywhere that you can legally smoke cigarettes, you can smoke cannabis. Beautiful, simple. They’re also expunging people’s criminal records. They’re really trying to do it well. What California did is they didn’t figure out consumption. So what that means is for people that don’t own their own home, there is nowhere for them to legally smoke. You can’t smoke in your car, you can’t smoke in public and you can’t smoke in a building that doesn’t expressly allow it.

So that leaves visitors to Humboldt County in the region that produces more cannabis per square acre than anywhere else in the world. You can legally go into a dispensary and buy it, but then if you ask a police officer or anyone in the state, what to do with it, they say, well, smoke it legally. Where can you smoke it legally? In a private residence that you own that you’re allowed to do it? So there’s a couple loopholes here. One, the state has said, hey, whatever local jurisdictions say about consumption, you can do. So that’s where we’re working with Papa & Barkley. We created a consumption lounge, totally legal.

We’ll give the people the opportunity to consume both edibles, beverages and smoke, and smoke cannabis onsite, totally legal. We just have to encourage them to have designated drivers or encourage them to take Ubers or taxis or something like that. So that’s what we’re doing there. At our hotels, we are working it out with the regulators right now. So you’re legally allowed to smoke on private property in areas that’s not available to the general public. So we’re working with that very specific rule to solve it. Right now, you can have cannabis delivered to any hotel in California.

Some hotels are encouraging that by putting menus on the bedside tables, other hotels are not. So we are working within the existing rules and framework to solve it. That said, we’re not building a bud and breakfast or cannabis hotel. We’re just acknowledging that this is a powerful plant. It’s about two thirds of our economy in Humboldt County and there’s 15,000 farms. So why wouldn’t you be leaning into this in the same way that businesses in Napa and Sonoma has created their whole world around the wine industry.

TG Branfalt: So one of the things that you guys are in the process of doing is opening these… you’re opening dispensaries. Can you tell me about sort of the challenges in opening dispensaries as opposed to the model that you have now, the hospitality model?

Jon O’Connor: Yeah. So my job for Papa & Barkley was real estate and compliance. So what I did for the company is I found them real estate. I got building permits. I licensed the real estate for cannabis activities and then I… that I opened them up. So as I was starting to exit Papa & Barkley and start to build Humboldt Social, or continue to build it and scale it, I already had gotten two dispensary licenses for the company. So I approached the company and said, hey, these are underutilized resources, what if I utilize these licenses, manage them for you, give you a percentage of sales and turn them on. Here’s the ideas, here are the concepts. Eight months later, we had not active agreement, started rolling.

And so that part was easy, but that’s also because that’s what I did for my job. So I did renovated buildings, worked with contractors, got permits and then worked with the different regulatory authorities. So in California you have to get local jurisdiction to approve your cannabis permit first, and then the state will approve it second. So what that means is if anyone wants to do business in California, you find a city or a county that has loose or easy regulations or permits, and there still are cities and counties that you could walk up, pay five to $15,000 and get a permit and then money to the state and also get a permit. There’s no wait in line. There’s no lotteries. There’s other cities where you gotta do a lottery. They’ve limited it. But California is still a place where if you go to these small jurisdictions or small cities or counties, you can still get a license.

So for us, that part was easy. And in Humboldt County, our plan is proof of concept this year. So it’s about making it easy for the cannabis consumer and new cannabis consumer to learn about cannabis, buy cannabis, and consume cannabis, whether it’s on our properties, adjacent to our properties, or at these dispensaries that we’re working on. And then next year’s all gonna be about scaling and going to other locations and grow in the business.

TG Branfalt: And Amy, you’re an educator and Jon just brought up education. How important is that to you, to have this element within your model?

Amy Cirincione O’Connor: Oh, so important. I mean, I think we love our cannaseurs. We love the folks that are coming to Humboldt explicitly to experience the variety of the cannabis products that we have, the different strains, the different farms, the sun grown versus indoor. And those are always fun customers to have, but what we’ve experienced being in partnership with Papa & Barkley is that many consumers are super new to cannabis as a whole, right? So one of the things that we experienced with Papa & Barkley when Jon first started working there was we would have these contractors on site, right, doing construction. And these are old Humboldt guys, right? These are old mill workers. These are contractors, these are old loggers. They would never smoke a joint, right. This is not what they’re going to do, but they have chronic pain.

They’ve been working, their bodies have been their tools for so long and so is out there with the patches, right? He’s like giving them patches, he’s giving them cream. And then now we have these 56 year old men who would never be a druggie, right, but they are loving the relief that they’re getting. And it’s also, it’s introducing them to the healing properties and reducing the stigma of key cannabis. And so that’s a huge… That’s definitely a market for us, is folks that are coming. Maybe they’re just seniors on their RV trip, right? And they’re coming through the redwoods and they’re going to stop at a place like Papa & Barkley Social. And it’s not this narrow, dark windowless space with huge neon green Buddhas outside, that’s clear. That sends a message that this is not for you, right?

Whereas Papa & Barkley social is going be this… is an inviting light filled, warm, beautifully designed space that’s for anybody. So I think that’s one really powerful piece of education. And I think for me personally, right, I’m a mom, I’m a teacher, I’m a professional. And I have been realizing in the last few years that even as a bar owner, alcohol is not really a super healthy component of my life, right. I’m getting older. I have a couple drinks, I wake then up the next morning and I feel it, right? I see it in my skin. I feel the hangover. I’m moody, Jon can attest to that in the morning, right? So I’m trying to figure out, okay, well, what is my… how is my lifestyle?

How am I still going to find relaxation? How am I going to socialize while also trying to shift the role that alcohol plays? And for me, that’s all been about exploring in a different way, my relationship with cannabis. And when I was younger and I was consuming cannabis, it was like, get as blazed as possible. This is amazing, right. It was a huge part of my identity. And now that my life is fuller, and I live in cannabis country where I’m actually like an educated consumer, I’m realizing that micro-day-dosing is amazing, right. Being at the river here all day with a couple beers is one thing, but being out like having half a gummy and being on the river is like, in my mind, a peak Humboldt experience, like everyone should have it.

And so that’s really exciting for me, is having folks come in that are… Can learn all of the different ways that they can experience cannabis to elevate whatever experiences. They’re looking for. They’re looking for relaxation. Are they looking to go on an amazing hike and just maybe be more tuned in? Are they looking to get physical relief? Are they looking to socialize, right? And teaching them all the different ways that cannabis can be a part of that experience.

TG Branfalt: And what kind of people are, are you seeing most often? I mean in Massachusetts, when I go to a dispensary, the predominant age group are people my parents’ age and they’re 50s and 60s. And with legalization that occurred just the other day in New York, the secretary at my job, the administrative assistant, she said, well, I think I’m going to try it now. And this is a 62-year-old woman that had never, in our conversations previously, had never said, hey, could I get a gummy. Because she knows I’ve got them in my pocket, right. So what is the people that you’re seeing experience your experiences.

Amy Cirincione O’Connor: Yeah. So I would say so we, in our branding and brainstorming, we created this archetype of Hannah. This is our customer profile, right.

TG Branfalt: How interesting.

Amy Cirincione O’Connor: And I’ll just say, it’s not a lie that Hannah’s like loosely based on me, right Jon? Right?

Jon O’Connor: There are a variety of Hannahs and you were one of them. We had some consultants stay with us at the beginning of COVID and there was also another, I think Jewish social worker that was also named Hannah. So you were a… who also consumed cannabis. But yeah, no, you should definitely talk more about Hannah.

TG Branfalt: I want to talk all about… I want to know everything about Hannah.

Amy Cirincione O’Connor: Hannah is dope, first of all, you want to hang out with Hannah. So Hannah in many ways is really inspired by some of the customer profiles that we see in our hospitality business, right? So we see that the majority of the folks that are booking our rooms are working professionals. Are professional women working. They’re not necessarily… They could be traveling in groups. They could be traveling with a partner, they could be traveling with their families, but they’re really the ones that are driving the travel vacation planning for their families or their groups, right. They’re super media, social media savvy. They know what they’re looking for and they rely on social media, but also print media to looking for experience that really are going to efficiently and effectively deliver what they’re looking for, right?

These are working women, typically I would say age like late twenties all the way up until late fifties. And they don’t have a lot of time, right? And so when they’re… Even if they’re planning a two-week road trip, they’re trying to do get the most out of every day, right. And these are folks that are… They’ve got their tagged posts on Instagram, they’ve got their Pinterest albums and they’re also, when they’re traveling through a region like Humboldt, they’re also talking to… They’re talking to their bartenders and their wait staff and even the folks at the grocery stores asking recommendations. And so, those are the folks that come and stay with us over and over again, they’re the ones that find us through other posts on social media. Someone posts a great experience that they have with us and then their friends come and visit.

And they’re very conscious consumers. And so when we looked at that customer base hospitality, it felt like a really natural segue into the cannabis elements of the business, right? These are folks, women that yes, they’re absolutely looking to relax with the other responsibilities and they got a lot that they want to get done in the there travels in Humboldt. And so being able to find… make really specific, targeted recommendations of products that can pair well with the travel experiences that they’ve already planned and that can really maximize, I think, whatever their goals are in terms of states, right, but also will… But also have nice packaging and have a well curated social media presence because they’re looking for products that aren’t just fun to consume, but also they’re looking for sustainability. They’re looking for social responsibility and they’re looking for cuteness.

Jon O’Connor: And TG, Hannah haunts me because as we are building this business, it’s all about Hannah. So as we are building who’s going to be our partner for the massage space and what amenities do we need to support? And Hannah’s fancy and she likes her nice things. So like we had to buy a $40,000 honey wagon bathroom for Hannah but I think it’s been really important for us because like Hannah’s is design forward. And I also want to convert Hannah. So there’s going to be Hannahs that are daily smokers or daily consumers of cannabis. There’s a lot of them. But there’s also going to be Hannahs that show up for the massage or up for our outdoor restaurant, because it’s on Yelp and or because they did an Uber Eats pickup and they’re going to arrive at this location and they’re going to be surprised that, oh, they can walk right into this dispensary and where other dispensaries have armed security guards, while we have security guards sort of behind the scenes, watching the cameras, we also have our staff welcoming Hannah at the front desk offering every Hannah and their plus ones a warm towel to enter the space. Instead of welcoming them with a gun and a badge, we’re welcoming them with a warm towel and a inviting environment, surrounded by plants and in a comfortable setting.

TG Branfalt: Jon, is there also a lot of crossover? I mean, you started this sort of outdoor adventure in that sort of space. Is there a lot of crossover with those customers or that sort of population with your experiences?

Jon O’Connor: I mean, I think it is. I mean, I was very much in the adventure industry and business as a lifestyle. I loved being on the rivers. I loved being up in the redwood trees and as I got married and as we had kids, I very much recognized that the lifestyle wasn’t the only things. And creating college funds for our kids and having savings and buying a house. And all of those other things were also important as lifestyle. So those customers very much varied and some of them were Hannahs with their families and some of them were Hannahs with their girlfriends, but it was very much a shotgun approach to customers in the outdoors. So the customer service is the same, whether you’re dealing with a Hannah and the outdoors or you’re dealing with them in a hospitality setting, but everyone’s got to sleep, everyone’s gotta eat and everyone has their vices. And those tend to make a little bit more money and are more sustainable as a business than, than just pure sort of adrenaline or a serene experience in the redwoods.

TG Branfalt: I have to ask, has anyone shown up for one of your experiences, a massage or something, and been like, what, cannabis is involved, and just took off?

Jon O’Connor: So we are just launching on 4/20. So while we have had an existing hospitality business for the last eight or nine years, we are just merging it with cannabis this year. So we’re just we’re halfway through our fundraising round. So anyone out there that loves this idea, hit us up. But we’ve had a lot of people that have been shocked, especially with Papa & Barkley’s hero product, their Balm, because it’s a product that doesn’t get you high but it’s also a product that has a tremendous amount of efficacious properties where it’s both a pain reliever and an anti-inflammatory. So giving it to people that have never tried cannabis before, it’s the perfect sort of first product.

And then they can get in tinctures and pre-rolls and vape pens and sort of… And even beverages now. So we are about to merge and give this business a real go starting 4/20 at Papa & Barkley Social in the Old Kmart in Eureka, in the center of Humboldt County.

TG Branfalt: Well, you mentioned the beverages and beverages is my favorite I think sort of product, because I don’t drink alcohol really. And so when I’m with friends and especially in Michigan, when I could get THC-infused root beer, I mean, it was fantastic. I could sit around and feel like I’m having a drink with friends, which hasn’t happened for me in a very long time. And then you guys also own a bar, right. And so what role do you guys think that that beverages or what segment of the market do you think beverages are eventually going to be in the cannabis space?

Jon O’Connor: Yeah, so beverages are exploding and we are creating our own beverage line. So we’ve got a subbrand called Social Nature that we’re building. It’s basically like our house brand for our dispensaries and it’ll be the core products that you can get delivered to our hotels. But we’re leaning into beverages because of what you just said, TG, is it’s just that focus on the social experience. So what we’re trying to build is the social experiences that people have experienced in hospitality and transition it to cannabis. So at Papa & Barkley Social, you can get a normal sparkling water.

You can get a Spiked Seltzer or you can get a CBD-based drink like Recess, and you can consume any of those three. And you can sit at the outdoor restaurant or you can sit in the consumption lounge and have that same social experience. But our goal is to normalize those experiences and basically do exactly what you said you liked, of having that social experience without having to drink alcohol.

TG Branfalt: For you, Amy, you said that alcohol is sort of being disengaged from your life or something of that effect. What’s your take on beverages?

Amy Cirincione O’Connor: I think they’re so exciting because I think it’s an amazing replacement activity, right? So we all know that it’s not just like the chemical composition of alcohol that’s addictive, right, it’s also the ritual of it and the process. So I think it’s every… A lot of us who have a relationship with alcohol, it’s not just the sensation of drinking, right, or even the onset of getting buzzed or even drunk. It’s like the whole thing, right? It’s the social experience, or it’s the sensation of having like a cold can in your hand or the fizziness and all those things. And I think that CBD and THC activated beverages are just a phenomenal way of replacing so many components of that ritual with something that’s healthier. And I think, I also just think like kind of method of delivery-wise, the way that there is so many ways that you can experience the high, right? You can just like, when you smoke, it hits real quick, and then often there’s also the side effects of sometimes dry eyes or dry throat that come with that.

And then there’s edibles, but then you’re waiting around, right. And some of us have had the experience of having an edible, forgetting about it, and then suddenly you’re like, wait, what is happening right now? Right. But my experience, and I think the folks that I know that are regular consumers of CBD or THC drinks, it’s a fairly similar onset process to drinking a beer, right, or drinking a Seltzer. I think that’s also a key thing is that owning a bar and seeing the way that seltzers, hard seltzers, have taken off and is that’s such a comparable consumption experience to some of these the can beverages.

And so I’m really excited to see that, to be able to provide those. And I’m also excited eventually to have more of a mocktail experience and playing with non-THC, non-CBD tincture, but also some that are, and just really focusing on all the therapeutic that properties that come with honestly hydrating, right, which is what should we all should be doing. And you can have that experience and have it taste good and have it feel good and not end up drunk or hung over I think.

TG Branfalt: Is that something that you offer in the consumption lounges, is sort of mixed mocktails made with cannabis or is that something that is being considered widely. Are we going to see sort of cannabis bars?

Jon O’Connor: We are absolutely going lean into that in phase two. So for our launch right now at 4/20, we already are doing four big things. So you’re coming in, you have a non-cannabis retail experience in the front because in California, you can’t even buy a t-shirt in a dispensary without getting it approved by the state of California. So for us to have an unlicensed space in the front, just gives us a lot of flexibility because cannabis dispensaries can’t even sell water. They are prohibited by the state. So we are sort of working within the rules and construct to have a separate entity in the front of the building that is using a separate point of sale system to sell whatever you want. And then you have the traditional dispensary and then the consumption lounge, and then the outdoor restaurant, and then the massage activity. So, our goal and when we launch is to integrate that experience, normalize it, and then absolutely add onto it.

So when COVID slows down, we’re very interested in leaning into events, when the world opens back up and absolutely building a a non-alcohol bar and I think people will be pretty excited for that.

TG Branfalt: So what do you guys think that your model will be able to teach others interested in incorporating cannabis into their existing hospitality or tourism business?

Jon O’Connor: I hope that people in Humboldt County who continue to lean into cannabis because it is surprising how much of a stigma cannabis still is. The local Visitor Bureau doesn’t even promote cannabis. I mean that’s how terrible the stigma still is, so.

TG Branfalt: Do you think they will eventually? I’m sorry to cut you off, but I mean, do you think that that’ll happen eventually?

Jon O’Connor: When all of these old fuckers die, excuse me.

Amy Cirincione O’Connor: Okay. Okay. So the marketing will change. I think it’s going be too late, right? By the time Humboldt is actively marketing, there, we’re going to be four counties behind. Mendocino is going to be there, Santa Barbara is going to be there. There are just so many more sophisticated, innovative marketing concepts coming out and it just going to be a real shame for Humboldt is out on it, because we are so well-positioned. We should be at the forefront and we’re not. And I think what I’ve seen here is a really powerful growers association that’s really been putting the pressure on our county and local authorities saying, this is what we need, our products are here. Our services are here, we are ready to provide these services. We just need you to put the message out there. And so, I think we, like a lot of these other growers, we are doing the messaging ourselves. Okay, thank you very much. We’d rather our tax dollars not go to you, but they do. And in the meantime, we’re just going to create our own budgets for these things.

TG Branfalt: I mean, it does seem just slightly ridiculous. I mean, I know Jon makes the joke, but I mean, it does seem slightly ridiculous that Humboldt is synonymous with cannabis. I’ve known about Humboldt County since I was 15 years old, and it’s because I was reading High Times and to talk about Humboldt branded products then. So I take your point very, very well. And what role do you guys think that cannabis is going to play in how people just book vacations generally? I mean just to, for example, I won’t go to any place on vacation that doesn’t have legalized cannabis, not going to. So am I sort of the hardheaded exception or what do you guys see in… from a hospitality perspective?

Jon O’Connor: Well, I think that hospitality is going to continue to slowly embrace cannabis. Our goal for our business is the normalization of it. So for part of the normalization to work is you need cannabis, heavy cannabis forward businesses doing things all around you. So for us to be cannabis, supportive cannabis, embracing, and hospitality connected, we need the bud and breakfasts, we need the smoke-filled, bong-filled rooms. Because there are serious cannaseurs that will only travel and will sort of create their life around that. We support that. However, our establishments we are really focusing on Hannah, and that’s who we’re building it out towards. So we hope our sort of next phase in 2022 and beyond is partnering with existing hospitality business is to bolt on Humboldt Social to that. And that’s after we prove our concept this year, that’s really where we’re going to go. So looking at those legal states or pre legal states to bolt on that infrastructure and show how hospitality and cannabis can come together.

Amy Cirincione O’Connor: Yeah. I think if we’re doing our job and we’re bringing our vision to fruition, we’re not going… We will cater to some guests who are cana-centric in their travel planning, but for many folks, it’s just going to be part of the experience. That’s what integration for us means, that you’re going to come and part of your… Yes, the Humboldt experience is our rivers. It’s our redwoods, it’s shopping. It’s the local food movement, it’s our makers and creative community and getting to meet those folks. It’s cannabis, it’s wine, it’s beer and spirits, like it’s all those things. And so I think I would like to see other, at the very east hotels using the word cannabis on their websites. That would be a huge win to just acknowledge that it’s here and know that they can do that and that doesn’t mean they got to… It doesn’t mean that their lobby needs to have cannabis air fresheners in it, so that that’s the forwards, what you smell when you first walk in.

It’s a part of what we do. I think that some of the stigma around it locally is that there’s a lot of folks here who believe that we need to fight against our reputation and our association with cannabis, and that’s limiting for us. I feel like in the last decade, that’s just really been proven to be incorrect. From a marketing perspective, that’s not the move. The move is toward it. The move is alongside it, not against it.

TG Branfalt: So in the last couple of minutes here, I mean, you both have these very diverse backgrounds and you’re both incredibly smart. But you are in the thick of building, something that I’ve never seen done before. So what advice do you guys have for entrepreneurs in this space?

Jon O’Connor: First advice is come visit us. We will share our limited knowledge for free. And then secondly, make a plan and start going for it because this is the time — the best ideas are built in depressions and at the bottom. So we’re currently in this interesting place with COVID and our economy, but also this massive explosion of cannabis and this weird hemp thing going on with CBD. And we personally think that’ll go away and cannabis will be… hemp and cannabis is the exact same thing. It’s just one has less THC and the other one has more THC. So, we think it’ll come around and if you embrace the plant and the culture is it’ll work.

TG Branfalt: What about you, Amy? What advice would you have for entrepreneurs?

Amy Cirincione O’Connor: So when we first, when we renovated our very first building, we had a very… Innovative is a nice way to say it. We had a very innovative vision for what we want to do with the building. We had no construction experience, no design experience. This was our very first purchase. And we had a very different idea for what we wanted to do. And we met with lots of reputable, contractors and engineers, and talked about what we wanted to do. And in the beginning, I was the one who was meeting all those folks on the job site. I was coming from my full-time job during lunch, my lunch breaks. I was meeting these folks and people would take one listen to me at the space, listen to me for about a minute and often just be like, no, that’s not possible.

Or, oh, that costs $300,000, or kind of pat me on the head, okay, little girl, goodbye. And I would come home and talk to Jon about it and be like, yeah, it’s just not possible. And Jon’s like, of course it’s possible. We just have to find… We just haven’t found the right person. We just haven’t found the right contractor. And he said, the goal is to get to the, yes. Keep on talking, keep on asking until you find the right person who, and their answer is going to be yes. And I think that that mantra has served us incredibly well through all of our businesses, because it is our… It is the rule, not the exception that people tell us that our ideas are terrible or that they’re going to fail, or that they’re impossible. That’s been our experience every single time.

And now I’m confident enough that people say that to me, I’m like, okay, so not with you, right? So you won’t be our customer, or you’re not going to be our contractor as opposed to doubting the integrity or the possibility of our ideas. And I think that that’s, if you want to be an innovator, especially in the cannabis space right now, just keep talking, just keep asking questions, keep finding the people and get to the yes.

TG Branfalt: I’ve done this podcast since I think 2016. I mean, some of the best advice that I’ve really ever heard. Thank you so much for sharing that with me. Where can people find out more about Humboldt Social and you guys?

Jon O’Connor: Yeah. So the best place to start is humboldt-social.com. And then that has sort of our family businesses on there, and they could stay with us tomorrow at humboldtbaysocialclub.com and stay at our current site. And then look for Scotia Lodge on June 15th and you can also, if you’re driving through Eureka, check out Papa & Barkley Social at the old Kmart on the way in the town.

TG Branfalt: I would love to talk to you about this Kmart if we had time, honestly. I love old repurposed buildings. In Burlington, Vermont, they just turned a Macy’s into a high school. I mean, it’s brilliant. So thank you guys so much for being on the show. I am very excited to see how this plays out and maybe at some point, get on a plane and go to Northern California spend a night in what sounds like heaven for somebody like me.

That’s Jon O’Connor and Amy Cirincione O’Connor founders of Humboldt Social, a California hospitality and wellness brand that is incorporating cannabis into its current business model. Thank you guys again so much for being on the show. It’s really been a pleasure.

Jon O’Connor: Thanks a lot TG.

Amy Cirincione O’Connor: Thanks TG.

TG Branfalt: You can find more episodes of the Ganjaprenuer.com podcast and podcast section of Ganjaentrepreneur.com on Spotify and in the Apple iTunes Store. On the Ganjaprenuer.com website, you’ll find the latest cannabis news and cannabis jobs updated daily along with transcripts of this podcast. You can also download the Ganjapreneur.com app in iTunes and Google Play. This episode was engineered by Trim Media House. I’ve been your host TG Branfalt.

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Nick Denney: Growing Craft Cannabis at Scale

Cultivation consistency can be an issue for any cannabis operator but for multi-state and vertically integrated companies like Holistic Industries, it requires extra levels of effort and expertise.

For our latest Q&A, we’re picking the brain of Holistic’s Regional Cultivation Manager Nick Denney, who oversees the company’s cultivation efforts across multiple state markets. This interview covers the benefits of a formal agriculture education for cannabis growers, how Holistic utilizes technology to enable craft cultivation at an industrial scale, strategies for crop steering and selecting new phenotypes, and more!

Read the full interview below.


Ganjapreneur: Before Holistic Industries you earned a Master’s degree in industrial, commercial agronomy from the University of Florida. Would you recommend a formal education for people wanting to work in cannabis cultivation?

Nick Denney: ​It’s hard to replace what you can learn from a formal education in agriculture, but harder to replace experience in the field. I’ve seen plenty of people without degrees that could run circles around PhDs. If someone has the opportunity and resources to seek out formal education in agriculture, I definitely recommend it, but make sure to pick a program that fits the path you want to take in your career. The best thing they can take away from formal education is to be better equipped to solve problems in the field using a more scientific approach.

How does growing cannabis compare to growing other flowers and niche vegetables in a controlled environment?

​I’ve found that a lot of the skills and methodologies that I learned growing greenhouse veggies have seamlessly transferred over to cannabis. Climate and nutrient management are very similar, including the control systems, water treatment, and fertigation. Integrated pest management has many similarities but cannabis is more limited, especially as the flowers begin developing.

There are some key differences such as cannabis being a dioecious crop, meaning it has distinct male and female plants. Promoting pollination on tomatoes in order for fruit to set is essential, but pollination is avoided on female cannabis plants grown for smokeable flower. Another key difference is the postharvest process. Cannabis flowers are dried and cured in preparation for the end-user, while veggies are typically picked and sold fresh.

What tools are essential in marrying craft cultivation and industrial agriculture?

​In order to grow craft cannabis at scale, we need a high level of control, data collection, and management. The spaces that we grow in must be designed and engineered to keep the plants in balance at all times. Most of that is done through the building management systems (BMS), which control climate and fertigation.

We like to grow a lot of variety in each facility, but all cultivars have specific needs. We can’t treat them all the same and always expect the best phenotypic expression. The BMS is used to break up irrigation and dimming zones within rooms to give us the flexibility needed to give each cultivar exactly what it wants. We use AROYA to closely monitor cultivar-specific habits and performance is key to achieving consistent high quantity and quality harvests. We use the information from AROYA to build crop registration forms, which are essentially recipe books for each cultivar that we grow. The growers creating those forms and learning each cultivar’s habits are the most important piece of the puzzle. I’m fortunate to get to work with a great team of growers who have a shared passion for bringing the best possible expression out of the plants.

How has switching from HPS to LED systems changed the cultivation environment, process, and output? ​

Switching to LEDs has allowed us to significantly increase the average light intensity over the canopy. Light intensity is directly correlated to yield (to a point) and a good rule of thumb is “1% more light = 1% more yield.” However, this logic assumes that you have balanced all of the other variables such as temperature, humidity, CO2, substrate water content & EC, etc. to meet the new demands of the crop.

While we have transitioned smoothly away from HPS, we had to take a different approach under LEDs. In order to keep the leaf surface temperature elevated, we tend to target a higher ambient temperature under LEDs to make up for the lower heat fraction from the fixtures. We’ve also noticed the plants demanding a higher concentration of feed, especially at certain stages of maturity.

The increase in light intensity under the LEDs has led to a significant rise in output per square foot of canopy and the ratio of saleable flower to trim.

What is crop steering, and how have you applied this growing method to Holistic Industries’ cultivation workflow? ​

Crop steering is the use of climate, irrigation, or plant management cues to encourage a specific type of morphological growth. Vegetative cues are used to promote the growth of stems and leaves, as well as bulking the flower. Generative cues are used to focus plant growth on flowers, decrease internodal spacing, and ripening of the flower prior to harvest. At Holistic, we have built a standard crop steering suggestions table for each week of the growing process. This is a good foundation for the growers to start with, but under the expectation that each cultivar will require moderate adjustments to the chart based on how those cultivars perform in our facilities.

What software and technology have assisted your team in crop steering large-scale cannabis grows? ​

Although our BMS systems help us control climate and fertigation programs, the implementation of AROYA in all of our facilities has been a critical component to efficiently scaling production across states. I can use my computer or phone to view what is happening in every zone in every state. It has also helped us gather and store information that we did not previously have. We use the data from AROYA to make more informed climate and irrigation decisions on a day-to-day basis, leading to a healthier crop and a greater phenotypic expression.

How often do you pheno-hunt? Where do you look for new genetics to test in the grow rooms? ​

We try to start new seeds about once a month, but we are constantly looking at ways to increase that frequency. Pheno hunts start with selecting seeds with strong genetics. There are so many talented breeders, but we have a few favorites that we like to focus on. There is a lot of research that goes on in the background to make sure we are selecting seeds that have a good chance of meeting our expectations in final flower form. Pheno hunting takes plenty of time and effort that we don’t want to waste on bad seeds.

When introducing new flavors, how many new phenotypes will make it to the product line? What factors determine which strains will continue with the brand?

​It is very difficult to pick just one pheno out of some of these hunts. There are often several in each hunt that could be winners in many gardens. The majority of the time we are only keeping one in order to save valuable real estate in a veg room. Krome White (Swamp Boys Seeds) said it best: “Like the movie Highlander, there can only be one.” If there’s a situation where we really can’t decide, we will run them through our flower rooms again to see which one works best for us. The general traits that we like to observe are smell, taste, yield, effects, cannabinoid/terpene percentage, flower/plant structure, flowering time, pest/disease resistance, and how the plants respond to our horticultural practices. Usually, the pheno that checks the most boxes ends up being the winner.

Where is Holistic Industries cannabis available for purchase? Are products available outside of the vertically integrated Liberty retail shops?

Cultivation is operational in Washington DC, Maryland, Massachusetts, and Pennsylvania and soon to be in Michigan, Missouri, West Virginia, California, and more. Our products can be found in stores outside of Liberty in dispensaries across each market.


Thanks, Nick, for answering our questions! To learn more, visit HolisticIndustries.com.

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Former Mayor Sentenced to Six Years in Prison for Extorting Cannabis Brands

The former mayor of Fall River, Massachusetts, Jasiel Correia, on Tuesday was sentenced to six years in prison for extorting cannabis companies during his time in office. U.S. District Court Senior Judge Douglas Woodlock also imposed a three-year sentence of supervised release for the disgraced 29-year-old, who was convicted in May on charges of wire fraud and extortion.

Correia was arrested in 2019 for extorting cannabis companies in exchange for non-opposition letters, which are required under state law in order for cannabusinesses to open in a municipality. He was initially indicted in 2018.

Woodlock on Monday overturned tax and wire fraud convictions related to bilking investors in his SnoOwl app. The judge determined that prosecutors didn’t prove those charges but left the extortion convictions in place.

Correia had solicited bribes ranging from $75,000 to $250,000 in cash, campaign contributions, and other payments from cannabis industry operators and in exchange provided the non-opposition letters.

Nathaniel R. Mendell, acting U.S. attorney for the District of Massachusetts, said that the former mayor “lied to investors, sold his office, and has no remorse for his crimes.”

“Jasiel Correia was a corrupt and deceitful politician who could only be stopped by federal prosecution. Now he is a felon and will be a federal inmate.” – Mandell in a press release

Joseph R. Bonavolonta, special agent in charge of the Federal Bureau of Investigation, Boston Division, described Correia “as a pervasive liar who has shown absolutely no remorse or empathy for his victims.”

“Jasiel Correia’s conscious decision to fleece investors, extort hundreds of thousands of dollars in bribes, and cheat on his taxes has now cost him his freedom,” Bonavolonta said in a statement.

Corriea had maintained his innocence even after his conviction and has said he would file an appeal.

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Former Fall River Mayor Facing 11-Year Sentence for Cannabis Extortion

Federal prosecutors are seeking an 11-year sentence for the former mayor of Fall River, Massachusetts after he was found guilty in May of extorting cannabis businesses, the Associated Press reports. Jasiel Correia, 29, was arrested in 2019 on charges of extortion and fraud and was ultimately found guilty on all of the 21 charges levied against him.

In court documents filed last week, prosecutors also asked a judge to order the former mayor to pay nearly $300,000 in restitution to investors and more than $20,000 to the IRS, and forfeit more than $560,000, the report says.

Correia has appealed the conviction and, following the May verdict, was confident he would win the challenge.

“There were no facts that were brought forward, there was no overwhelming evidence. Unfortunately, there was a couple things that didn’t go our way that were technical today and that’s where we’ll be on grounds for appeal and we’ll win that appeal and I will be vindicated, and my future will be very long and great.”Correia, following his conviction on May 16, 2020, via the New York Times

In the sentencing documents, prosecutors argued that Correia is “remorseless and without empathy for his victims.”

“The betrayal of people who considered him like family, the pervasive lying, cheating, stealing, and blame-shifting, and the egregious breaches of the public trust must be met with a sentence that thoroughly repudiates the defendant’s abhorrent conduct and deters both this defendant and others like him from doing it again,” prosecutors wrote in the documents.

Correia solicited bribes ranging from $75,000 to $250,000 in cash, campaign contributions, and other payments from cannabis industry operators. He also bilked investors in his app, SnoOwl, out of at least $360,000. He was first elected in 2015 at just 23-years-old. In 2019 he was both removed from his Massachusetts office and voted back in during a special election in March. He would ultimately lose his re-election bid in November 2019 to Paul Coogan.

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