CBD OIL

ES: It seems like this speaks to the broader “normalization” conversation, too.

TT: It does. One of our taglines is, “Drink your cannabis.” Our founder, about 10 years ago, started telling people that the two major forms of human interaction over the development of our history had been smoking and drinking. Everyone, in 2010, was focusing on the smoking aspect. He wanted to solve the drinking segment. He thought that would be a really interesting way to go about this, and a way for it to be normalized. His 94-year-old grandmother was one of the first people who ever tried one of his original Keef Colas. She took a sip, and she said, “Is this cannabis?” She took a sip and looked at her husband and said, “You just said I couldn’t smoke it.” And then she took another sip.

It was like a company genesis story that really helped us focus in on what we were trying to accomplish. And it’s taken longer, I think, than anybody ever plans—and most things do. There have been a couple of false starts on the anointing of beverages as the next big thing. But I think what we’re seeing is a solid acceptance from the mainstream audience of at least trying it and understanding, “What are some of the benefits? What are some of the things that they need to consider?” And that’s really all we can ask for.

ES: How does tourism fit into this? Meaning, when folks visit Denver or LA, it would seem like beverages offer a more discreet, casual way to check out this new market without buying a bunch of flower for a weekend trip.

TT: We’ve gotten that feedback from numerous people who have come from in from out of state. When we’ve gone into other states, they said, “Oh, I’ve been to Colorado. I’ve had your brand in Colorado. This is great. We love that you guys are here.” It’s a great alternative to just the traditional methods of consuming cannabis. One of the things that we’ve really tried to focus on over the past few years is making sure that we’ve got the right quality controls in place so that the Keef that you have in LA tastes the same as a Keef that you have in Maine.

ES: What’s next for Keef Brands this year?

TT: Our two key focuses this year are that we wanted to accelerate the velocity and go deeper with our product lines in our existing markets—specifically in Colorado—and really work toward normalizing a purchase of a four-pack versus just a single can. By and large, it’s been very well received, and we’re able to do some volume discussions and have it be normal. It’s like a grocery store or a liquor store experience. That’s thanks to the adoption and the acceptance of the general public.

And in Q1, like I said earlier, we launched in three new markets. We were very heads-down. Our next launch will be with Canada. Our partner there is gearing up. We think we’ll be on the market if not by the end of Q2, early Q3. That’s a really big focus of ours. We’re also looking at the new states that are coming online. Generally, I would say we’re looking toward expanding some more states over the course of the next six months.

ES: As far as those partners on the ground, what are the traits you’re looking for?

TT: I’ll use Buckeye Relief in Ohio as an example. We do our homework, and we speak with other brands. We actually co-located with Wana Brands in a couple of different facilities, and they had nothing but good things to say about the Buckeye Relief team. We were able to confirm that in every one of our interactions. When you’re in cannabis, every manufacturing relationship has unique pieces to it because every state is different. But the core qualities are, transparency, a desire to continually improve the product and a commitment to consistency. Those are the key aspects of this, and Buckeye has been great in that regard.

Following New York legalizing adult-use cannabis in March, one university is already working to meet the growing demand for qualified and educated professionals in the emerging industry.

University College at Syracuse University, the academic college of continuing education and professional studies, has partnered with Green Flower, a cannabis education association, to offer four programs where individuals can receive non-credit certificates in Cannabis Education.

The four programs are: Healthcare and Medicine, Cannabis Law and Policy, The Business of Cannabis, and Cannabis Agriculture and Horticulture. Each course is six months and includes three eight-week online classes.

Individuals do not have to be a student at Syracuse to enroll in the course. University College Dean Michael Frasciello said the university expects the primary student population to be individuals already in the industry looking to upskill and further educate themselves or people looking to enter the industry. However, he suspects that more university students will show interest in the programs over time as the cannabis industry continues to expand.

Frasciello gives a general overview of each program:

The Cannabis Law and Policy program will cover business practices, U.S. Food and Drug Administration (FDA) regulation, future opportunities in related career fields, intellectual property, social equity, labor law, environmental law and consumer law, including advertising, labeling and packaging, he said.

“What we expect that we’ll see interest in this program from lawyers who are practicing but want to build expertise in this area within their practice,” he said. “Certainly, paralegals, or others in specific areas of the industry like advertising, labeling and packaging, that need to have a [better] grounding in some of the legal and policy aspects of it.”

The Business of Cannabis program will cover a wide range of topics, from business to the fundamentals of cultivation. Some cultivation topics include processing, extraction, manufacturing, lab setup and protocols and distribution. While the business side covers retail, delivery, licensing, business ethics, marketing, human resources, sales, accounting, how to scale business operations, real estate, innovation, investment and more, he said.

“The interesting thing I think about this program is that students create a business portfolio,” he said. “Basically, the portfolio is [students] set up [their] own company and create a very high-level business plan. They will look at risk analysis, operations, project management and lots of case studies.”

The Health and Medicine program is specific to understanding medical cannabis properties, he said. The course will cover human physiology, health care ethics and law, the use of cannabis in health care practices for practitioners and more. 

“Similar to where the business program has the portfolio, in this program, students [will be] partnered with integrated medical centers in the areas where they’re located or facilities to learn more about dosing, titration, administration—sort of drug interactions,” he said. “So, it [covers] some interactions that [they may] need to be aware of from a pharmacological perspective.”

The Agriculture and Horticulture program is the most “straightforward” of the four programs, he said. 

Students run through how to engage in production effectively and sustainably, which includes management cultivation as well as statutory and administrative laws.

Similar to the other programs, Agriculture and Horticulture is also project-based, and students will be required to do case studies specific to their state on local jurisdiction for cultivation, he said.

“There is a chemistry or scientific component to the program [as well],” he said. “Students will cover plant chemistry, disease and threats, techniques and processes for harvesting and drying, trimming and processing, storage, and there’s a module on industrial hemp again. So, we are trying to attend to all of the opportunities within the industry.”

Frasciello added, “Our decision to make this a non-credit as opposed to a credit program is that the non-credit program allows us to customize better [the program] to meet workforce demand. When you attach a credit to something, there’s a lot of governance on the backend that has to come into play, and we felt that with the non-credit certificate, we could be more agile and responsive to the demand and interest as it increases.”

Essentially, the non-credit aspect gives the university the freedom to make changes to the curriculum as the industry evolves.

“There were some folks on my team that had the foresight to identify that the cannabis industry is one of the fastest-growing industries in the country,” he said. “Then we determined that we probably should be moving into space with a continuing education program, which is where Green Flower came in.”

Green Flower faculty members with years of experience in different aspects of the cannabis industry designed and developed the curriculum. The university worked with them to ensure that the curriculum aligned with the “tenets of rigor and excellence” that the university is known for in the online space, Frasciello said.

Following New York legalizing adult-use cannabis in March, one university is already working to meet the growing demand for qualified and educated professionals in the emerging industry.

University College at Syracuse University, the academic college of continuing education and professional studies, has partnered with Green Flower, a cannabis education association, to offer four programs where individuals can receive non-credit certificates in Cannabis Education.

The four programs are: Healthcare and Medicine, Cannabis Law and Policy, The Business of Cannabis, and Cannabis Agriculture and Horticulture. Each course is six months and includes three eight-week online classes.

Individuals do not have to be a student at Syracuse to enroll in the course. University College Dean Michael Frasciello said the university expects the primary student population to be individuals already in the industry looking to upskill and further educate themselves or people looking to enter the industry. However, he suspects that more university students will show interest in the programs over time as the cannabis industry continues to expand.

Frasciello gives a general overview of each program:

The Cannabis Law and Policy program will cover business practices, U.S. Food and Drug Administration (FDA) regulation, future opportunities in related career fields, intellectual property, social equity, labor law, environmental law and consumer law, including advertising, labeling and packaging, he said.

“What we expect that we’ll see interest in this program from lawyers who are practicing but want to build expertise in this area within their practice,” he said. “Certainly, paralegals, or others in specific areas of the industry like advertising, labeling and packaging, that need to have a [better] grounding in some of the legal and policy aspects of it.”

The Business of Cannabis program will cover a wide range of topics, from business to the fundamentals of cultivation. Some cultivation topics include processing, extraction, manufacturing, lab setup and protocols and distribution. While the business side covers retail, delivery, licensing, business ethics, marketing, human resources, sales, accounting, how to scale business operations, real estate, innovation, investment and more, he said.

“The interesting thing I think about this program is that students create a business portfolio,” he said. “Basically, the portfolio is [students] set up [their] own company and create a very high-level business plan. They will look at risk analysis, operations, project management and lots of case studies.”

The Health and Medicine program is specific to understanding medical cannabis properties, he said. The course will cover human physiology, health care ethics and law, the use of cannabis in health care practices for practitioners and more. 

“Similar to where the business program has the portfolio, in this program, students [will be] partnered with integrated medical centers in the areas where they’re located or facilities to learn more about dosing, titration, administration—sort of drug interactions,” he said. “So, it [covers] some interactions that [they may] need to be aware of from a pharmacological perspective.”

The Agriculture and Horticulture program is the most “straightforward” of the four programs, he said. 

Students run through how to engage in production effectively and sustainably, which includes management cultivation as well as statutory and administrative laws.

Similar to the other programs, Agriculture and Horticulture is also project-based, and students will be required to do case studies specific to their state on local jurisdiction for cultivation, he said.

“There is a chemistry or scientific component to the program [as well],” he said. “Students will cover plant chemistry, disease and threats, techniques and processes for harvesting and drying, trimming and processing, storage, and there’s a module on industrial hemp again. So, we are trying to attend to all of the opportunities within the industry.”

Frasciello added, “Our decision to make this a non-credit as opposed to a credit program is that the non-credit program allows us to customize better [the program] to meet workforce demand. When you attach a credit to something, there’s a lot of governance on the backend that has to come into play, and we felt that with the non-credit certificate, we could be more agile and responsive to the demand and interest as it increases.”

Essentially, the non-credit aspect gives the university the freedom to make changes to the curriculum as the industry evolves.

“There were some folks on my team that had the foresight to identify that the cannabis industry is one of the fastest-growing industries in the country,” he said. “Then we determined that we probably should be moving into space with a continuing education program, which is where Green Flower came in.”

Green Flower faculty members with years of experience in different aspects of the cannabis industry designed and developed the curriculum. The university worked with them to ensure that the curriculum aligned with the “tenets of rigor and excellence” that the university is known for in the online space, Frasciello said.

What makes scaling up your process so difficult?

There are many factors that can lead to the challenges people face when scaling up their processes. These challenges are not unique to the cannabis/hemp industry, but they are exacerbated by the consequences generated from decades of Reefer Madness. In my time operating in the cannabis/hemp space, 15+ years, I have seen established equipment vendors and sellers of laboratory supplies, like Sigma-Aldrich (now Millipore-Sigma), Fisher-Scientific, Cerilliant, Agilent, and others, go from reporting individuals inquiring about certified reference materials to setting up entire divisions of their companies to service the needs of the industry. Progress. But we are still a fledgling marketplace facing many challenges. Let’s look at a few specific to process scale up.

Darwin Millard will deliver a presentation on this topic during the Cannabis Extraction Virtual Conference on June 29. Click here to learn more.Equipment Availability: Lack of available equipment at larger and larger process scales can severely impact project timelines. Making not only equipment acquisition difficult, but also limiting the number of reputable equipment manufacturers you can work with.

Non-Linear Expansion: NEVER assume your process scales linearly. Perhaps one of the most avoidable mistakes during process scale up. You will quickly find that for many processes you cannot just put in a larger unit and expect a proportional increase in output. This is because as process equipment increases so to must utilities and other supporting infrastructure, but not only that, process vessel geometry, proportions, and design are contributing factors to process efficiency as your scale of operations increases.

Hazardous Material Quantities: Just as important to the process as the equipment are the solvents and reagents used. As your scale of operations increases so does your demand and production of hazardous materials; solvents including carbon dioxide (CO2), ethanol, and liquid petroleum gases (LPG) like Butane and Propane are obvious hazards, but so too are the refrigerants used in the chillers, fuels used to power generators, steam created to heat critical systems, and effluents and wastewater discharged from the process and supporting systems. Not every municipality wants thousands of gallons of flammable substances and hazardous waste being generated in their backyard…

Contractor/Vendor Misrepresentation: Finding out in the middle of you project that your contractor or equipment vendor has never set up a system at this scale before is never a good feeling. Unfortunately, contractor and vendor misrepresentation of qualifications is a common occurrence in the cannabis/hemp space.

If all this was not bad enough, all too often the consequences of improper planning and execution are not felt until your project is delayed or jeopardized due to misallocation of funds or undercapitalization. This is especially true when scaling up your production capacity. Now let’s look at some ways to avoid these mistakes.

The Rule of 10

When scaling up your process, NEVER assume that a simple linear expansion of your process train will be sufficient. It is often the case that process scale up is non-linear. Using the Rule of 10 is one way of scaling up your process through a stepwise iterative approach. The Rule of 10 is best explained through an example: Say you are performing a bench-top extraction of a few grams and want to scale that up to a few thousand kilograms. Before jumping all the way to your final process scale, start by taking a smaller jump and only increase your bench-top process by a factor of 10 at a time. So, if you were happy and confident with your results at the tens of grams scale, perform the same process at the hundreds of grams scale, then the thousands of grams scale, tens of kilograms scale, and so forth until you have validated your process at the scale of operations you want to achieve. By using the Rule of 10 you can be assured that your process will achieve the same yields/results at larger and larger scales of operation.

Scaling up your process through an iterative approach allows you to identify process issues that otherwise would not have been identified. These can include (but by no means should be considered an exhaustive list) improper heat transfer as process vessels increase in size, the inability to maintain process parameters due to inadequately sized utilities and/or supporting infrastructure, and lower yields than expected even though previous iterations were successful. However, this type of approach can be expensive, especially when considering custom process equipment, and not every processor in the cannabis/hemp space is going to be in the position to use tools like the Rule of 10 and instead must rely on claims made by the equipment vendor or manufacture when scaling up their process.

The Cannabis/Hemp Specific Process Equipment Trap

How many times have you heard this one before: “We have a piece of process equipment tailor-made to perform X,Y,Z task.”? If you have been around as long as I have in the cannabis/hemp space, probably quite a few times. A huge red flag when considering equipment for your expansion project!

Unless the equipment manufacturer is directly working with cannabis/hemp raw materials, or with partners who process these items, during product development, there is no way they could have verified the equipment will work for its purported use.

A good example of this are ethanol evaporation systems. Most manufacturers of evaporators do not work with the volumes of ethanol they claim their systems can recover. So how did they come up with the evaporation rate? Short answer – Thermodynamics, Heat Transfer, and Fluid Mechanics. They modeled it. This much surface area, plus this much heat/energy, with this much pressure (or lack thereof), using this type of fluid, moving through this type of material, at this rate of speed, gets you a 1000-gal/hr evaporator or some other theoretical value. But what is the real rate once an ethanol and cannabis/hemp solution is running through the system?

For a straight ethanol system, the theoretical models and experimental models are pretty similar – namely because humans like alcohol – extensive real-world data for ethanol systems exist for reference in designing ethanol evaporators (more accurately described as distillation systems, i.e. stills). The same cannot be said for ethanol and cannabis/hemp extract systems. While it is true that many botanical and ethanol systems have been modeled, both theoretically and experimentally, due to prohibition, data for cannabis/hemp and ethanol systems are lacking and the data that do exist are primarily limited to bench-top and laboratory scale scenarios.

So, will that 1000-gal/hr evaporator hit 1000-gal/hr once it is running under load? That’s the real question and why utilizing equipment with established performance qualifications is critical to a successful process scale up when having to rely on the claims of a vendor or equipment manufacturer. Except this is yet another “catch 22”, since the installation, operational, and performance qualification process is an expensive endeavor only a few equipment manufacturers servicing the cannabis/hemp market have done. I am not saying there aren’t any reputable equipment vendors out there; there are, but always ask for data validating their claims and perform a vendor qualification before you drop seven figures on a piece of process equipment on the word of a salesperson.

Important Takeaways

Improper design and insufficient data regarding process efficiencies on larger and larger scales of manufacturing can lead to costly mistakes which can prevent projects from ever getting off the ground.

Each aspect of the manufacturing process must be considered individually when scaling your process train because each element will contribute to the system’s output, either in a limiting or expansive capacity.

I go further into this topic in my presentation: Challenges with Process Scale Up in the Cannabis/Hemp Industry, later this month during Cannabis Industry Journal’s Extraction Virtual Conference on June 29^th, 2021. Here I will provide real-world examples of the consequences of improper process scale up and the significance of equipment specifications, certifications, and inspections, and the importance of vendor qualifications and the true cost of improper design specifications. I hope to see you all there.

Until then. Live long and process.

HUB International, a leading insurance brokerage serving the cannabis industry, just announced today their new U.S. cannabis specialty leader. Bradley Rutt, senior vice president at HUB and Cannabis Industry Journal contributor, will now take the lead on cannabis insurance for the brokerage.

Rutt will work alongside Jay Virdi, another frequent CIJ contributor and chief sales officer of cannabis specialty at HUB to support the practice strategy on a national level. Rutt’s role will put him in charge of expanding HUB’s growth in the cannabis space as well as “enhancing cannabis insurance solutions and risk services, further developing cutting-edge resources for clients to support their needs, and attracting and retaining talent to deepen knowledge and expertise to help cannabis clients thrive.”

Rutt’s role as senior vice president has been to specialize in cannabis executive liability, working with public and private management services organizations to develop insurance and risk management programs. “Brad is an industry leader, and his diverse experience and deep understanding of the cannabis industry to insure its unique risks will play a critical role in continuing to strengthen our practice,” says Jay Virdi. “More importantly, we continue our commitment as trusted advisors to our clients to provide them with relevant support and solutions to help them continue to grow.”