CBD OIL

Due to quick progressions in legalization, today’s cannabis industry bears little resemblance to the industry of five years ago. As the cannabis space gains mainstream acceptance, it resembles more “traditional” industries closely. In turn, how we consume cannabis has changed dramatically within this novel legal framework.

A brief visit to a cannabis dispensary quickly illuminates just how much the industry has changed in the past few years.

Within the dynamic of modern cannabis, perhaps no vertical has seen the same advancements as cannabis extracts. It’s precisely the growth of the concentrate category that has given rise to the many branded products that define the legal market.

To give a clear picture of how advancements in extraction have stimulated the concentrate category’s growth, we put together this brief exploration.

Standards & Technology

Before legalization, the production of cannabis extracts was a shady affair done in clandestine and often dangerous ways. Especially concerning BHO (Butane Hash Oil), home-based laboratories have long since been notorious fire hazards. Even more, with a total lack of regulation, black-market extracts are infamous for containing harmful impurities.

In the few short years that cannabis has been legal in Nevada, Washington and other states, extract producers have adopted standards and technology from more professional arenas. By borrowing from the food and pharmaceutical industries, concentrate companies have achieved excellence undreamed of a decade ago.

Good Manufacturing Practices

One of the essential elements in the extracts vertical advancements is the adoption of good manufacturing practices. According to the World Health Organization website, “Good Manufacturing Practice (GMP) is that part of quality assurance which ensures that products are consistently produced and controlled to the quality standards appropriate to their intended use.”

When adult-use cannabis was legalized in markets such as Colorado, cannabis companies were able to come out of the shadows and discuss GMPs with legit businesses. In doing so, they implemented professional controls on extract manufacturing in accordance with “quality standards” of state regulatory agencies.

Supercritical CO2 Extraction

As cannabis businesses adopted GMP from other industries, extract producers also embraced more sophisticated technology. Of these, supercritical CO2 has pushed the cannabis concentrates vertical into the future.

According to the equipment manufacturer Apeks Supercritical, “CO2 is considered to be a safer method of extraction because the solvent is non-volatile. The extract is purer because no trace of the solvent is left behind. It is also versatile and helps protect sensitive terpenes, by allowing cold separation.” By deriving methods from food production, supercritical equipment manufacturers have given cannabis companies a viable option for the commercial production of extracts.

Supercritical technology has helped push the concentrates vertical forward by providing a clean and efficient way to produce cannabis extracts. Nonetheless, supercritical CO2 equipment is highly sophisticated and carries a hefty price tag. Producers can expect to pay well over $100,000 for commercial supercritical CO2 extraction setup.

Products

Just as standards and technology have evolved in the cannabis extracts vertical, we have also seen products rapidly mature. Notably, the legal environment has allowed manufacturers to exchange ideas and methods for the first time. In turn, this dialogue has led to the development of new products, like isolates and live resin.

Isolates

Just as the name implies, isolates are concentrates made from a singular, pure cannabinoid. In today’s market, CBD isolates have grown increasingly popular because people can consume pure CBD without ingesting other cannabinoids or plant materials, including the legal 0.3% THC found in hemp.

Isolates are made by further purifying cannabis extracts in the process of purification, filtration and crystallization. As seen with other concentrates, isolates are used as the base for many cannabis products, such as gummies.

There is also growing interest in CBG isolate, which is another non-psychoactive cannabinoid when consumed orally.

Live Resin

The cannabis concentrate live resin has taken the industry by storm over the past few years. Live resin is a form of extract that is originally sourced from freshly harvested and frozen cannabis plants. The primary selling point behind this extract is the fact that fresh flowers produce much more vibrant aromas and flavors than dried cannabis. Interestingly, this pungency is tied to the preservation of terpenes in live resin.

To make live resin, producers “flash freeze” fresh cannabis plants immediately after harvest. Valuable cannabinoids and terpenes are then extracted from the fresh, frozen plant material using hydrocarbon solvents. This whole process is done at extremely cold temperatures, ensuring no thermal degradation to the precious and volatile terpenes.

In lieu of these intricate steps to preserve the flower and extracts, live resin has continuously gained popularity. Namely because vaping with live resin is the best way to sample fresh cannabis terpene profiles in its most authentic fashion

It is amazing to see how much cannabis extracts have grown and progressed with legalization. Due to such amazing advancements in standards, technology, and products, the concentrates category has exploded on the dispensary scene. In today’s market, flowers have been largely sidelined in favor of concentrate-based products like gummies. These products now adorn dispensary shelves in beautiful packaging replete with purity and testing specifications.

It’s an often-overlooked fact that the purity standards of the legal extracts have made reliable cannabis brands possible in the first place. You cannot develop a cannabis brand without consistent products that customers can rely on; all things considered, it can be said that advancements in extraction have not only stimulated the concentrate category but the entire industry as we know it today.

Back in July of 2020, ASI Global Standards announced the launch of their newest audit standard: The Cannabis Safety & Quality Scheme (CSQ). The scheme is built around ISO requirements and the Global Food Safety Initiative (GFSI) requirements.

In a press release published in December of 2020, CSQ announced they have added a new licensed certification body to the program: QIMA/WQS, which is a provider of independent third-party certification, inspection, and training services for the food industry.

The CSQ program is marketed as the world’s first cannabis certification to meet GFSI criteria, which is expected to get benchmarked in 2022.

The CSQ scheme is built on four standards:

• Growing and Cultivation of Cannabis Plants
• Manufacturing and Extraction of Cannabis
• Manufacturing and Infusion of Cannabis into Food & Beverage Products
• Manufacturing of Cannabis Dietary Supplements

The first CSQ certifications are expected to be awarded this month. Being a licensed certification body for the CSQ program means QIMA/WQS will conduct document evaluations as well as on-site inspections to ensure companies are meeting the CSQ standards prior to certification.

“At QIMA WQS, we see an enormous potential to support and provide quality certification to the entire cannabis supply chain. Joining CSQ and its innovative approach is an exciting step into the diversification of our services and growth,” says Mario Berard, CEO of QIMA/WQS.

Common Citizen, a vertically integrated business in Michigan’s medical and adult-use cannabis markets, brought on Allison Hornev as the company’s chief marketing officer. Hornev arrives from Bell’s Brewery Inc., another stalwart of the Michigan landscape. 

The move is a good example of that bridge between the breweries and cannabis cultivation facilities. Each market tends to connoisseurs and new customers alike, making the story behind a brand incredibly important. Before Bell’s, Hornev worked as Kellogg’s.

“Through Allison’s marketing expertise, she will help our continued efforts to identify and serve the unique needs of every patient and adult-use customer at all Common Citizen retail and wholesale locations as we continue expanding our footprint here in Michigan and beyond,” CEO Mike Elias said.

We spoke with Hornev about her plans for Common Citizen and the cannabis business in general.

Eric Sandy: What brought about your interest in the cannabis space and in Common Citizen?

Courtesy of Common Citizen

Allison Hornev: It’s funny: I wasn’t interested in the cannabis industry. I was very happy working for Bell’s. It’s an amazing company with an amazing culture. But then I met one of the founders [of Common Citizen], and we just started having conversations and started talking about the opportunity. And at that point, I got to know the brand more and know the founders and understand what they’re wanting to do with cannabis and in this very busy market that we’re in. That’s really what turned me on to it: that great opportunity that Common Citizen has to not just sell cannabis but make a difference. You see that coming through our commitment to safety and safe products and the idea of cannabis for humanity: How do we debunk the stigma so people feel comfortable using it to help them, or using it however they choose. That, to me, is really what made the difference. It just stood for more in my eyes.

ES: Common Citizen has some interesting terminology that customers can use, whether it’s “chapters,” “citizen advisers” and, of course, all the in-store categories for different cannabis products. Could you talk a bit about why that is important?  

AH: From a business standpoint, it allows you to stand apart in a very crowded market. But, honestly, it’s going to get more crowded before it consolidates, right? So, it allows you to stand apart, but it also allows you to talk to the people, to the consumers and to our patients from a different voice. And to me, that voice is a more caring voice. That voice is a more passionate voice and a more approachable voice. And I think that is really powerful.

ES: We featured Common Citizen in a piece about the design of their Flint store. Could you talk a bit about how things like interior design can help shape the story of a company?

AH: I think oftentimes it’s overlooked, right? “We’re just going to put up a store and sell some cannabis.” Again, as a lot of things with Common Citizen, it’s more than that. It’s creating an environment that is welcoming, that is very concierge-based and it’s helping the patient or the consumer through that journey and spending time with them. You look at that Flint store and it’s got that area off to the side with the couches, where we can sit down and have a conversation about what it is you’re looking for or what it is you need or what your desires and hopes and dreams are. That’s where we can really get to know you and provide you something that will be beneficial and provide you an experience that you then enjoy—or one that helps you. Then you do feel more comfortable every time you come back. And I think the interior design just builds and allows for that to happen

ES: And certainly a lot of those same ideas are at play over at Bell’s. Is there a helpful sense of marketing crossover that might be a play between craft beer and cannabis?

AH: Yeah, it’s fascinating. On the surface right there, you’ve got the 21-and-plus audience. If you look at craft beer and beer in general and adult beverages—and it is incredibly saturated, there’s a lot of players—and you look at how Larry [Bell] has built this business to stand apart and stand for things for the 35 years he’s been in business. He has built what Bell’s stands for now and its quality and its consistency and its great branding, and it’s continuing to provide new and different things. And then when you come to the cannabis industry, again, it’s so oversaturated and there’s so much out there and it can be, to a consumer, to somebody that’s new into it, overwhelming just like beer. So, how do I take what I learned through my years at Bell’s—and even before that at Kellogg’s—and apply that here to help those consumers in that space and stand for those key things that are so important right now?

For us at Common Citizen, it’s safety. And that leads to quality and that leads to approachable brands that aren’t intimidating—brands for that common citizen, you know? That’s what we’re built off of. Just in talking to you in this conversation, it gives me goosebumps. It makes me smile. But this is something we’re out to do. We’re out to help people and help them feel comfortable with that decision.

ES: I did want to touch on Michigan in particular. What does it mean to have Michigan as a backdrop for Common Citizen?

AH: It provides just tons of opportunities. When you look at Michigan, you see, just in a short time, where we’ve come with cannabis. From medical and then phasing into rec, the future is so incredibly bright for Michigan in this space. Leaning into our roots and being true to where we’ve come from, that’s important. The founders are all boys that grew up in Detroit. There’s such heart there. And it’s such a great story for us as a brand.

I think Michigan is going to be a state to look at in this industry, and it’s going to be sought after. People are going to learn a lot, and other states are going to learn a lot from what we’re able to do here at Michigan.

And I think that’s why it’s so important that we are leading by example and that we are building a GMP facility, even though it’s not necessary to do so in the regulations. We feel that that’s the right thing to do to ensure that safety. If we can lead by example here in Michigan and get some friends to come along and do that with us, I think that will help other states learn from us. That will help other brands learn from us. You look at beer 100 years ago, and they were just coming back online from Prohibition and there was a lot of work to do. I don’t think we’re 100 years back, but there’s a lot ahead of us.

ES: With the new year upon us, what are some of your short-term goals at Common Citizen?

AH: Honestly, I’m still getting my feet wet. Short-term, I’ve got to just be a sponge. It is absolutely my goal to talk to everybody here, from the greenhouse to the executive team, to the investors—talk to our retail locations and our budtenders and talk to our wholesalers and spend time with them understanding the market in general and what the needs are. I believe that there are needs currently unmet, so how can we do that? How can we stand apart? It is absolutely my goal to be the leader in Michigan, and to do that in a couple of different ways. Not just through volume and sales, but through advocacy and through safety and through being that shining star in this very crazy industry right now. That is both long-term and short-term, and I think the team here has already set us up for great success there. Now, it is my job and responsibility to continue to carry us there.

Common Citizen, a vertically integrated business in Michigan’s medical and adult-use cannabis markets, brought on Allison Hornev as the company’s chief marketing officer. Hornev arrives from Bell’s Brewery Inc., another stalwart of the Michigan landscape. 

The move is a good example of that bridge between the breweries and cannabis cultivation facilities. Each market tends to connoisseurs and new customers alike, making the story behind a brand incredibly important. Before Bell’s, Hornev worked as Kellogg’s.

“Through Allison’s marketing expertise, she will help our continued efforts to identify and serve the unique needs of every patient and adult-use customer at all Common Citizen retail and wholesale locations as we continue expanding our footprint here in Michigan and beyond,” CEO Mike Elias said.

We spoke with Hornev about her plans for Common Citizen and the cannabis business in general.

Eric Sandy: What brought about your interest in the cannabis space and in Common Citizen?

Courtesy of Common Citizen

Allison Hornev: It’s funny: I wasn’t interested in the cannabis industry. I was very happy working for Bell’s. It’s an amazing company with an amazing culture. But then I met one of the founders [of Common Citizen], and we just started having conversations and started talking about the opportunity. And at that point, I got to know the brand more and know the founders and understand what they’re wanting to do with cannabis and in this very busy market that we’re in. That’s really what turned me on to it: that great opportunity that Common Citizen has to not just sell cannabis but make a difference. You see that coming through our commitment to safety and safe products and the idea of cannabis for humanity: How do we debunk the stigma so people feel comfortable using it to help them, or using it however they choose. That, to me, is really what made the difference. It just stood for more in my eyes.

ES: Common Citizen has some interesting terminology that customers can use, whether it’s “chapters,” “citizen advisers” and, of course, all the in-store categories for different cannabis products. Could you talk a bit about why that is important?  

AH: From a business standpoint, it allows you to stand apart in a very crowded market. But, honestly, it’s going to get more crowded before it consolidates, right? So, it allows you to stand apart, but it also allows you to talk to the people, to the consumers and to our patients from a different voice. And to me, that voice is a more caring voice. That voice is a more passionate voice and a more approachable voice. And I think that is really powerful.

ES: We featured Common Citizen in a piece about the design of their Flint store. Could you talk a bit about how things like interior design can help shape the story of a company?

AH: I think oftentimes it’s overlooked, right? “We’re just going to put up a store and sell some cannabis.” Again, as a lot of things with Common Citizen, it’s more than that. It’s creating an environment that is welcoming, that is very concierge-based and it’s helping the patient or the consumer through that journey and spending time with them. You look at that Flint store and it’s got that area off to the side with the couches, where we can sit down and have a conversation about what it is you’re looking for or what it is you need or what your desires and hopes and dreams are. That’s where we can really get to know you and provide you something that will be beneficial and provide you an experience that you then enjoy—or one that helps you. Then you do feel more comfortable every time you come back. And I think the interior design just builds and allows for that to happen

ES: And certainly a lot of those same ideas are at play over at Bell’s. Is there a helpful sense of marketing crossover that might be a play between craft beer and cannabis?

AH: Yeah, it’s fascinating. On the surface right there, you’ve got the 21-and-plus audience. If you look at craft beer and beer in general and adult beverages—and it is incredibly saturated, there’s a lot of players—and you look at how Larry [Bell] has built this business to stand apart and stand for things for the 35 years he’s been in business. He has built what Bell’s stands for now and its quality and its consistency and its great branding, and it’s continuing to provide new and different things. And then when you come to the cannabis industry, again, it’s so oversaturated and there’s so much out there and it can be, to a consumer, to somebody that’s new into it, overwhelming just like beer. So, how do I take what I learned through my years at Bell’s—and even before that at Kellogg’s—and apply that here to help those consumers in that space and stand for those key things that are so important right now?

For us at Common Citizen, it’s safety. And that leads to quality and that leads to approachable brands that aren’t intimidating—brands for that common citizen, you know? That’s what we’re built off of. Just in talking to you in this conversation, it gives me goosebumps. It makes me smile. But this is something we’re out to do. We’re out to help people and help them feel comfortable with that decision.

ES: I did want to touch on Michigan in particular. What does it mean to have Michigan as a backdrop for Common Citizen?

AH: It provides just tons of opportunities. When you look at Michigan, you see, just in a short time, where we’ve come with cannabis. From medical and then phasing into rec, the future is so incredibly bright for Michigan in this space. Leaning into our roots and being true to where we’ve come from, that’s important. The founders are all boys that grew up in Detroit. There’s such heart there. And it’s such a great story for us as a brand.

I think Michigan is going to be a state to look at in this industry, and it’s going to be sought after. People are going to learn a lot, and other states are going to learn a lot from what we’re able to do here at Michigan.

And I think that’s why it’s so important that we are leading by example and that we are building a GMP facility, even though it’s not necessary to do so in the regulations. We feel that that’s the right thing to do to ensure that safety. If we can lead by example here in Michigan and get some friends to come along and do that with us, I think that will help other states learn from us. That will help other brands learn from us. You look at beer 100 years ago, and they were just coming back online from Prohibition and there was a lot of work to do. I don’t think we’re 100 years back, but there’s a lot ahead of us.

ES: With the new year upon us, what are some of your short-term goals at Common Citizen?

AH: Honestly, I’m still getting my feet wet. Short-term, I’ve got to just be a sponge. It is absolutely my goal to talk to everybody here, from the greenhouse to the executive team, to the investors—talk to our retail locations and our budtenders and talk to our wholesalers and spend time with them understanding the market in general and what the needs are. I believe that there are needs currently unmet, so how can we do that? How can we stand apart? It is absolutely my goal to be the leader in Michigan, and to do that in a couple of different ways. Not just through volume and sales, but through advocacy and through safety and through being that shining star in this very crazy industry right now. That is both long-term and short-term, and I think the team here has already set us up for great success there. Now, it is my job and responsibility to continue to carry us there.

For having just expanded his dispensary business to sell cannabis product for adult use in December 2020, Casey Kornoelje brings a lot of plant-touching experience to the industry. He’s wielding that knowledge as he and his team work to vertically integrate Pharmhouse Wellness, the first adult-use dispensary in Grand Rapids, Mich., that is owned by a resident of the city.

Kornoelje opened Pharmhouse Wellness as a medical provisioning center in March 2020. But prior to that, he had spent 10 years running a 30-acre cut flower farm north of Grand Rapids, where he also grew cannabis in pole barns.

“In 2008, the state of Michigan rolled out the Michigan Medical Marijuana Program,” Kornoelje told Cannabis Business Times and Cannabis Dispensary. “I immediately enrolled as a caregiver and patient, so I was a patient myself, plus a caregiver of five. That allowed me to grow 72 plants total—72 all in—and I rocked that out from 2008 to this day.” (While the state has ended caregiver sourcing to dispensaries, Kornoelje notes that he is still legally growing for himself.)

Going further back in time, Kornoelje was charged with felony cannabis manufacturing in 2001 and a misdemeanor cannabis possession in 2004.

“As soon as I could discover how to grow the shit, I started growing it,” Kornoelje reflects. “I just wasn’t quite as good at concealing it as I was at growing it. That led to a big disruption in my life. The felony charge has always been on my record and stuck with me. It’s stifled many different opportunities for me throughout the years, both career-, professional-wise and trying to go into the military services.”

But things came around, as Kornoelje moved to the “cottage industry” of caregiver cultivation, then medical dispensing. His prior convictions, caregiver experience and residency in Grand Rapids scored Pharmhouse Wellness points through the state and city’s social equity programs and allowed him to receive zoning priority and fee reductions for its adult-use operations.

“We’re going to reinvest that money back into the local neighborhood,” Kornoelje said. “That could include projects like home ownership training, expungement clinics, business and home façade block grants, public safety and transit enhancements in front of the dispensary. Those are all just things that are on the peripheral, but that’s definitely not the end of it. [Those are] just some things that are hot on our agenda.”

Photo courtesy of Pharmhouse Wellness

COVID-Era Consumption

Pharmhouse Wellness opened as a medical-only dispensary in March 2020—in a standalone 750-square-foot structure that was originally constructed in 1890 as a home, later zoned for light industrial, and which architects and engineers helped Kornoelje facelift.

Within several days, Michigan government officials recognized the COVID-19 threat and prioritized social distancing over confined in-store customer experiences. Pharmhouse Wellness has only offered curbside and delivery for nearly the past 10 months.

A lack of historical data on Michigan cannabis sales made COVID’s impact difficult to examine, Kornoelje said, adding, “My take of it is that people are home more. … You can’t go into the mall as much, you can’t go to the movie theaters, to the gyms. People are home more, and I do believe that that has driven some increased consumption on cannabis.

“But we have noticed a definite slowdown in the fall, as the federal stimulus that was passed back in the summertime—the effects of that eventually ran out. So, we have seen demand be stable, but stable to declining in the fall time.”

Photo courtesy of Pharmhouse Wellness

Setting Sights on Vertical Integration

Pharmhouse Wellness is in the process of expanding, both through increasing its customer base and vertically integrating.

In 2020, Grand Rapids began accepting and approving medical storefronts to expand into adult use. “The city, after [expressing] concern seeing very little local participation in the marijuana market, rolled out their social equity program in summer 2020 to increase participation by local and disproportionately affected individuals,” Kornoelje said.

Recreational sales began in Grand Rapids in October. Pharmhouse held a celebration for its first adult-use sales on Dec. 19, where it hosted a coffee truck, “did swag bag giveaways” and offered specials, Kornoelje said. In addition, Redemption Cannabis owner and former cannabis prisoner Ryan Basore and Grand Rapids city commissioners attended.

The company received a processor license and a Class 3 cultivation license (for 2,000 plants or fewer) in the summer and fall of 2020. It will cultivate and process cannabis in a 4,000-square-foot warehouse on a property located two parcels east of the dispensary. “We are trying to figure out how best to make all those licenses mesh in the relatively confined space,” Kornoelje said. “But the goal is to get the grow going first, and then once we have marijuana to process, then we’ll roll out the processor license last.”

At Pharmhouse, 23 employees are responsible for getting a variety of products into customers’ hands, from flower to concentrates to edibles, topicals and vape cartridges.

Mentioning his caregiver background and experience growing cannabis, Kornoelje said, “We love flower. We try to pride ourselves on having high-quality flower in the store. And knowing that people love flower, too, we’ve tried to link up with the best possible cultivators and people that we align ourselves with—not only from a quality standpoint but from a business-philosophy standpoint and a corporate culture standpoint.”

As it plans to reinvest into the local community, Pharmhouse has engaged in other philanthropic efforts. In October 2020, the dispensary donated a portion of proceeds from Fresh Coast Extracts product to Migrant Legal Aid. And in December 2020, Pharmhouse donated proceeds from Fresh Coast to the West Michigan Cannabis Guild.

Regarding demand for the team’s beloved flower, Kornoelje said, “People seem to want the highest-testing stuff, man, unfortunately, and that seems to be the recurring theme. Unfortunately, the terpenes and the flavonoids seem to fall to the back seat with most of our consumers. I would say some are heady enough to understand that THC is not the whole picture.” Some customer favorites include classics such as Wedding Cake, GMO, GG, Super Lemon Haze and various kush varieties.

In speaking with CBT and CD, Kornoelje offered one dose of civic pride and one of thankfulness to those with whom he’s worked. “Like they say, ‘it takes a village,’ and it truly does,” he said. “There was a huge team of people, from [Pharmhouse’s communications contact] to my planner, who helped me with working on the land-use process, to the architect and the engineers—all the people that I had to work with to make the applications a reality—and then of course the city of Grand Rapids—the city commissioners, the planning commissioners, the mayor—all of them have been super supportive of what is the only locally owned cannabis shop in town.”

For having just expanded his dispensary business to sell cannabis product for adult use in December 2020, Casey Kornoelje brings a lot of plant-touching experience to the industry. He’s wielding that knowledge as he and his team work to vertically integrate Pharmhouse Wellness, the first adult-use dispensary in Grand Rapids, Mich., that is owned by a resident of the city.

Kornoelje opened Pharmhouse Wellness as a medical provisioning center in March 2020. But prior to that, he had spent 10 years running a 30-acre cut flower farm north of Grand Rapids, where he also grew cannabis in pole barns.

“In 2008, the state of Michigan rolled out the Michigan Medical Marijuana Program,” Kornoelje told Cannabis Business Times and Cannabis Dispensary. “I immediately enrolled as a caregiver and patient, so I was a patient myself, plus a caregiver of five. That allowed me to grow 72 plants total—72 all in—and I rocked that out from 2008 to this day.” (While the state has ended caregiver sourcing to dispensaries, Kornoelje notes that he is still legally growing for himself.)

Going further back in time, Kornoelje was charged with felony cannabis manufacturing in 2001 and a misdemeanor cannabis possession in 2004.

“As soon as I could discover how to grow the shit, I started growing it,” Kornoelje reflects. “I just wasn’t quite as good at concealing it as I was at growing it. That led to a big disruption in my life. The felony charge has always been on my record and stuck with me. It’s stifled many different opportunities for me throughout the years, both career-, professional-wise and trying to go into the military services.”

But things came around, as Kornoelje moved to the “cottage industry” of caregiver cultivation, then medical dispensing. His prior convictions, caregiver experience and residency in Grand Rapids scored Pharmhouse Wellness points through the state and city’s social equity programs and allowed him to receive zoning priority and fee reductions for its adult-use operations.

“We’re going to reinvest that money back into the local neighborhood,” Kornoelje said. “That could include projects like home ownership training, expungement clinics, business and home façade block grants, public safety and transit enhancements in front of the dispensary. Those are all just things that are on the peripheral, but that’s definitely not the end of it. [Those are] just some things that are hot on our agenda.”

Photo courtesy of Pharmhouse Wellness

COVID-Era Consumption

Pharmhouse Wellness opened as a medical-only dispensary in March 2020—in a standalone 750-square-foot structure that was originally constructed in 1890 as a home, later zoned for light industrial, and which architects and engineers helped Kornoelje facelift.

Within several days, Michigan government officials recognized the COVID-19 threat and prioritized social distancing over confined in-store customer experiences. Pharmhouse Wellness has only offered curbside and delivery for nearly the past 10 months.

A lack of historical data on Michigan cannabis sales made COVID’s impact difficult to examine, Kornoelje said, adding, “My take of it is that people are home more. … You can’t go into the mall as much, you can’t go to the movie theaters, to the gyms. People are home more, and I do believe that that has driven some increased consumption on cannabis.

“But we have noticed a definite slowdown in the fall, as the federal stimulus that was passed back in the summertime—the effects of that eventually ran out. So, we have seen demand be stable, but stable to declining in the fall time.”

Photo courtesy of Pharmhouse Wellness

Setting Sights on Vertical Integration

Pharmhouse Wellness is in the process of expanding, both through increasing its customer base and vertically integrating.

In 2020, Grand Rapids began accepting and approving medical storefronts to expand into adult use. “The city, after [expressing] concern seeing very little local participation in the marijuana market, rolled out their social equity program in summer 2020 to increase participation by local and disproportionately affected individuals,” Kornoelje said.

Recreational sales began in Grand Rapids in October. Pharmhouse held a celebration for its first adult-use sales on Dec. 19, where it hosted a coffee truck, “did swag bag giveaways” and offered specials, Kornoelje said. In addition, Redemption Cannabis owner and former cannabis prisoner Ryan Basore and Grand Rapids city commissioners attended.

The company received a processor license and a Class 3 cultivation license (for 2,000 plants or fewer) in the summer and fall of 2020. It will cultivate and process cannabis in a 4,000-square-foot warehouse on a property located two parcels east of the dispensary. “We are trying to figure out how best to make all those licenses mesh in the relatively confined space,” Kornoelje said. “But the goal is to get the grow going first, and then once we have marijuana to process, then we’ll roll out the processor license last.”

At Pharmhouse, 23 employees are responsible for getting a variety of products into customers’ hands, from flower to concentrates to edibles, topicals and vape cartridges.

Mentioning his caregiver background and experience growing cannabis, Kornoelje said, “We love flower. We try to pride ourselves on having high-quality flower in the store. And knowing that people love flower, too, we’ve tried to link up with the best possible cultivators and people that we align ourselves with—not only from a quality standpoint but from a business-philosophy standpoint and a corporate culture standpoint.”

As it plans to reinvest into the local community, Pharmhouse has engaged in other philanthropic efforts. In October 2020, the dispensary donated a portion of proceeds from Fresh Coast Extracts product to Migrant Legal Aid. And in December 2020, Pharmhouse donated proceeds from Fresh Coast to the West Michigan Cannabis Guild.

Regarding demand for the team’s beloved flower, Kornoelje said, “People seem to want the highest-testing stuff, man, unfortunately, and that seems to be the recurring theme. Unfortunately, the terpenes and the flavonoids seem to fall to the back seat with most of our consumers. I would say some are heady enough to understand that THC is not the whole picture.” Some customer favorites include classics such as Wedding Cake, GMO, GG, Super Lemon Haze and various kush varieties.

In speaking with CBT and CD, Kornoelje offered one dose of civic pride and one of thankfulness to those with whom he’s worked. “Like they say, ‘it takes a village,’ and it truly does,” he said. “There was a huge team of people, from [Pharmhouse’s communications contact] to my planner, who helped me with working on the land-use process, to the architect and the engineers—all the people that I had to work with to make the applications a reality—and then of course the city of Grand Rapids—the city commissioners, the planning commissioners, the mayor—all of them have been super supportive of what is the only locally owned cannabis shop in town.”