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Jazz Pharma Acquires GW Pharma for $7.2 Billion

February 3, 2021 by CBD OIL

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In a blockbuster deal to kick off the 2021 international cannabis M&A season, Jazz Pharmaceuticals has inked a deal to acquire GW Pharmaceuticals, manufacturer of the FDA- and DEA-approved Epidiolex, to the tune of $7.2 billion. As Bloomberg noted, GW’s stock skyrocketed about 46% Wednesday morning as the headlines hit the wires.

The transaction maintains a spotlight on the pharmaceutical side of the international cannabis market.

“Jazz Pharma’s acquisition of GW Pharma, at a significant premium, demonstrates that pharmaceutical companies are recognizing the value and future potential of cannabinoid based medicines,” said Jason Wilson, cannabis and banking expert at ETF Managers Group, the issuer of $MJ. “It is also another example that the cannabis industry is continuing to normalize and evolve beyond the traditional cultivation of flower, with potential well outside of our borders.  For investors, the acquisition of GW Pharma is another reminder that investing in cannabis touches many verticals globally, requiring a diverse approach beyond traditional cannabis cultivation companies.” 

RELATED: DEA Greenlights Epidiolex. What’s Next for CBD and the Cannabis Industry? 

So, who is Jazz Pharmaceuticals? From the team at Bloomberg: “Jazz has an array of medications for cancer and other conditions and diseases, but is best known for its high-priced narcolepsy treatment Xyrem, which had sales of $1.64 billion in 2019. However, with the drug due to lose exclusivity soon, revenue from it was expected to peak at $1.75 billion in 2020, according to analyst estimates compiled by Bloomberg.” The company is based in Ireland.

The cost to Jazz will be borne by a mix of cash and debt financing. For GW Pharma shareholders, the transaction will deliver $200 in cash plus $20 in Jazz stock per share.

Kyle Detwiler, CEO of multi-national operator Clever Leaves, provided a comment on the far-reaching scope of this deal: “This is a sign pharmaceutical cannabis is here to stay. I think this helps signal that global private equity and institutional inventions are increasing their focus on the space.”

It’s an acquisition that will surely play a role in how international cannabinoid markets develop over the next year.

Jazz CEO Bruce Cozadd added, "We are joining two teams that share a passion for, and track record of, developing differentiated therapies that advance science and transform the lives of patients. This will help facilitate a successful integration and bring added capabilities to Jazz. Given the strength of our balance sheet and the meaningful financial drivers of the transaction, we are confident in the value we can deliver to both companies’ shareholders and patients. We look forward to welcoming the GW team to Jazz to build an even stronger company."

 

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Filed Under: Cannabis News

Cannabis Conference Returns to Las Vegas, Announces 2021 Advisory Board

February 3, 2021 by CBD OIL

LAS VEGAS, NV (February 3, 2021) – Cannabis Conference, the cannabis industry’s leading conference for cultivators, retailers, extraction specialists and hemp growers—will return to the Paris Las Vegas Hotel & Casino from August 24-26, 2021. Presented by award-winning media brands Cannabis Business Times, Cannabis Dispensary and Hemp Grower magazines, Cannabis Conference will bring together current and prospective cannabis business operators, university professors, consultants, technology and solutions providers and more for three dynamic days of education and expo.

“We look forward to reconvening at our annual event in-person this August and offering valuable networking opportunities that will push this rapidly evolving industry forward,” Group Publisher Jim Gilbride said. “Our team at Cannabis Conference works diligently to offer the highest level of education for attendees, coupled with the most relevant exhibitors that will help improve their day-to-day operations and bottom lines.”

Cannabis Conference’s education program will address the most pressing issues plant-touching businesses face, as well offer tangible solutions operators can implement into their own businesses. Sessions are being crafted with the assistance of Cannabis Conference’s 2021 Advisory Board, including:

  • Salpy Boyajian – Executive Vice President/Board Chairman, Flower One
  • Sjoerd Broeks – Genetic Development/R&D Director, THE PHARM
  • Debby Goldsberry – Executive Director, Magnolia Wellness and Flor; Co-Founder, Berkeley Patients Group collective
  • David Holmes – Owner & CEO, Clade9
  • Colin Kelley – Operating Partner, Merida Capital; Board Member, LeafLine Labs 
  • Emily Kowalski – Director of Cultivation, LeafLine Labs
  • Claudio Miranda – Co-Founder, Guild Enterprises
  • Kenneth Morrow – Owner, Trichome Technologies
  • Alisia Ratliff, PMP – Chief Executive Officer & Founder, Victus Capital Ventures LLC
  • Anna Shreeve – President, Urban Paragon, Inc., Targeted Intent, Inc. and The Bakeréé
  • Mason Walker – Co-Owner/CEO, East Fork Cultivars
  • Hope Wiseman – Owner, Mary & Main Dispensary

“We simply would not be able to provide the level of programming we offer without the help of our esteemed and experienced advisory board members, who are constant sounding boards about the current challenges and opportunities in the cannabis industry,” Editorial Director Noelle Skodzinski said. “Whether you are planning to enter or new to the industry, or an experienced plant-touching business, you’ll come away with valuable lessons to help you and your business succeed by attending Cannabis Conference’s educational sessions.”

In addition to dozens of sessions on everything from cultivation to facility buildout, operations, and retail and cultivation business strategies, Cannabis Conference will also feature 100+ exhibitors on its trade show floor, including experts in: horticultural lighting, nutrients, growing media, pest control, structures, drying and storage, IT services, marketing solutions, accounting and finance, POS software, packaging and labeling, and much more.

For additional information about Cannabis Conference 2021, including registration information, a current list of exhibitors and sponsors and more, visit www.cannabisconference.com.

 

About Cannabis Conference
Cannabis Conference 2021, presented by Cannabis Business Times, Cannabis Dispensary, and Hemp Grower, is the leading educational provider for plant-touching businesses in the legal cannabis and hemp markets. The three-day event will be held at Paris Las Vegas Hotel & Casino in Las Vegas, Nev., on August 24-26, 2021.

The Cannabis Conference exhibition hall will feature industry-leading technologies, solutions and services for the professional cannabis cultivator and retail businesses.

For more information, visit www.cannabisconference.com.

Filed Under: Cannabis News

Alabama Senator Introduces Medical Cannabis Legalization Bill

February 2, 2021 by CBD OIL

VANCOUVER, British Columbia, Feb. 2, 2021 – PRESS RELEASE – Eteros Technologies, owner of Mobius Trimmer, a top brand of high-end cannabis and hemp processing equipment, has acquired California-based Triminator, a pioneer in harvesting equipment for professional growers of cannabis and hemp. The acquisition provides the Canadian-based Eteros Technologies with a broader product range and increased access to the U.S. market. Financial details were not disclosed.

The Mobius and Triminator product lines combine to form the world’s largest manufacturer of cannabis and hemp harvesting and processing equipment. Eteros Technologies, parent company of the Mobius line, plans to retain Triminator employees and leadership, and the company said both brands will continue to operate independently. Working in synergy, each will marshal greater engineering, sales, training and support resources to offer customers a comprehensive suite of processing solutions. This acquisition also means that the full Canadian designed-and-built Mobius line and full U.S.-built Triminator product line will be stocked and available across North America.  

“Just like Mobius, Triminator has built an amazing business from the ground up,” said Aaron McKellar, CEO of Mobius Trimmer. “Using innovation and ingenuity, Triminator’s team created machines that helped define the post-harvest process in modern cannabis and hemp agriculture. We look forward to building upon each other’s strengths to help even more farmers increase the efficiency of their harvest.”

The two product lines complement each other precisely because of their differences. Each is focused on providing full support to a specialized market. Triminator is committed to the cannabis and hemp farmer by building a community of hands-on brand ambassadors who have their own farms and can mentor other end-users on the craft of processing. The Mobius line has been focused on equipping and supporting growers who are operating in a large-scale, highly regulated environment, where SOPs and often GMP requirements drive processing operations and investing heavily in developing the training resources and technical documentation necessary to serve these end-users.

“This acquisition could not be a better fit from our perspective,” said Dana Mosman, CEO of Triminator. “We equip some of the most advanced farms across the globe and maintain our commitment to supporting farmers. Now our options to help these cultivators just increased exponentially. We look forward to continuing to meet the needs of the farming community, to help growers increase productivity and profitability in the rapidly evolving cannabis market.”

Each brand serves different customer segments. Mobius is one of the most technologically advanced harvesting options available, holding a number of patents in trimming technology and the largest market share in Canada among large-scale cultivators. Triminator has focused on the agricultural sector and small-to-midsize cultivators. The acquisition will give Mobius access to these businesses while providing Triminator access to Mobius’ customer service and technology.

For more information on the product lines, visit www.mobiustrimmer.com and www.thetriminator.com. 

Filed Under: Cannabis News

Learning from the First Wave Part 1: How Law Shapes the California Cannabis Industry

February 2, 2021 by CBD OIL

As a cannabis lawyer, I spend a lot of time thinking about the ways that regulations affect a cannabis company’s bottom line. Since I’m in California, the ways are many.

In late 2017 I became the chief compliance officer for an Oakland startup that carried out delivery, distribution, cultivation and six manufacturing operations. A big part of my job was preparing my company, along with several equity cannabis companies, for California’s First Wave of cannabis licenses.

For the most part, First Wave licensees came from California’s essentially unregulated medical cannabis market, and/or from California’s by-definition unregulated “traditional” market. When California began issuing licenses in January 2018, many First Wavers were unprepared because their businesses practices had evolved in an unregulated market. A big part of my job was to help them adapt to the new requirements. As a result, I saw the regulations, and the effects of regulations, in sharp relief.

Regulation touches virtually every aspect of the legal cannabis industry in California. So anyone who wants to understand the industry should have at least a basic understanding of how the regs work. I’m writing this series to lay that out, in broad strokes.

Some key points:

  • The regulated market must be understood in relation to the previous unregulated (medical) market as well as the ongoing traditional market.
  • Regs define the supply chain.
  • Regs are designed to ensure product safety and maximize tax revenue.
  • Many regulations mandate good business practices.
  • Local enforcement of building, health and safety codes tends to be zealous and costly.

A Tale of Three Markets

California’s regulated cannabis market can only be understood in relation to the medical market that preceded it, and in relation to the traditional market (illegal market) that continues to compete with it.

The Before Times

California’s legal medical cannabis market goes back to 1996, when the Compassionate Use Act passed by ballot measure. One fact that shaped the medical market was that it was never just medical – while it served bona fide patients, it also served as a Trojan horse for adult-use (recreational) purchasers.

Another fact that shaped the medical market was a near complete lack of regulation. On the seller’s side, you had to be organized as a collective. On the buyer’s side, you had to have a medical card. That was it.

Meanwhile, the cannabis supply chain was entirely unregulated. This tended to minimize production costs. It also meant that a patient visiting a dispensary had no way of verifying where the products had been made, or how.

The Regulated Times

Licensing under the Medical and Adult-Use Cannabis Regulation and Safety Act (the “Act”) began on January 1, 2018. It was the beginning of legal adult-use cannabis in California. It was also the beginning of the Regulated Times, as the Act and accompanying 300-plus pages of regulations transformed the legal cannabis market.

 For example:

  • The Act defines the cannabis supply chain (as a series of licensees).
  • Across the supply chain, the internal procedures of cannabis companies are subject to review by state agencies;
  • Cultivators and manufacturers cannot sell directly to a dispensary – they must go through a distributor;
  • All cannabis must be tested for potency and a long list of contaminants by a licensed testing laboratory before it may be sold to consumers;
  • And beginning in 2019, all licensees were required to participate in the California Cannabis Track and Trace (CCTT) program, which is designed to track all cannabis from seed to sale.

Just as importantly, the Act establishes a dual licensing system – that is to say, in order to operate, a cannabis company needs a local permit (or other authorization) as well as a state license. In fact, local authorization is a prerequisite for a state license. And your local jurisdiction will have its own rules for cannabis that apply in addition to the state rules, up to and including a ban on cannabis activities.

Needless to say, operating in the Regulated Times is a lot more complicated and expensive than it was during the Before Times.

Especially when you consider the taxes. For example, in the City of Los Angeles, sale of adult-use cannabis is taxed at 10%, which means that any adult-use purchase in L.A. gets a 34.5% markup:

  • 15% state cannabis excise tax, plus
  • 10% Los Angeles Adult Use Cannabis Sales tax, plus
  • 5% sales tax.

Note that the distributors must collect the excise tax from the retailer, so the 15% markup is not necessarily visible to the consumer. Similarly, consumers are generally unaware that there is a cultivation tax of $9.65 per ounce (or about $1.21 per eighth) of dried flower that the distributor has to collect from the cultivator.

Theoretically, all of this might be unproblematic if licensed retailers were only competing with each other. Which brings us to:

The Traditional Market

The traditional market is the illegal market, which is to say, the untaxed and unregulated market.

Legalization of adult-use cannabis was supposed to destroy the traditional market, but it hasn’t. As of early 2020, the traditional market was estimated to be 80% of the total cannabis market in California. This is not surprising, since the traditional market has the advantages of being untaxed and unregulated.

The traditional market has a pervasive negative effect on the legal market. For example, the traditional market tends to depress prices in the legal market and tends to attract talent away from the legal market. Some of these effects will be discussed in the following articles.

This article is an opinion only and is not intended to be legal advice.

Filed Under: Cannabis News

Kansas Governor Says State Should Legalize Medical Cannabis to Expand Medicaid

February 2, 2021 by CBD OIL

VANCOUVER, British Columbia, Feb. 2, 2021 – PRESS RELEASE – Eteros Technologies, owner of Mobius Trimmer, a top brand of high-end cannabis and hemp processing equipment, has acquired California-based Triminator, a pioneer in harvesting equipment for professional growers of cannabis and hemp. The acquisition provides the Canadian-based Eteros Technologies with a broader product range and increased access to the U.S. market. Financial details were not disclosed.

The Mobius and Triminator product lines combine to form the world’s largest manufacturer of cannabis and hemp harvesting and processing equipment. Eteros Technologies, parent company of the Mobius line, plans to retain Triminator employees and leadership, and the company said both brands will continue to operate independently. Working in synergy, each will marshal greater engineering, sales, training and support resources to offer customers a comprehensive suite of processing solutions. This acquisition also means that the full Canadian designed-and-built Mobius line and full U.S.-built Triminator product line will be stocked and available across North America.  

“Just like Mobius, Triminator has built an amazing business from the ground up,” said Aaron McKellar, CEO of Mobius Trimmer. “Using innovation and ingenuity, Triminator’s team created machines that helped define the post-harvest process in modern cannabis and hemp agriculture. We look forward to building upon each other’s strengths to help even more farmers increase the efficiency of their harvest.”

The two product lines complement each other precisely because of their differences. Each is focused on providing full support to a specialized market. Triminator is committed to the cannabis and hemp farmer by building a community of hands-on brand ambassadors who have their own farms and can mentor other end-users on the craft of processing. The Mobius line has been focused on equipping and supporting growers who are operating in a large-scale, highly regulated environment, where SOPs and often GMP requirements drive processing operations and investing heavily in developing the training resources and technical documentation necessary to serve these end-users.

“This acquisition could not be a better fit from our perspective,” said Dana Mosman, CEO of Triminator. “We equip some of the most advanced farms across the globe and maintain our commitment to supporting farmers. Now our options to help these cultivators just increased exponentially. We look forward to continuing to meet the needs of the farming community, to help growers increase productivity and profitability in the rapidly evolving cannabis market.”

Each brand serves different customer segments. Mobius is one of the most technologically advanced harvesting options available, holding a number of patents in trimming technology and the largest market share in Canada among large-scale cultivators. Triminator has focused on the agricultural sector and small-to-midsize cultivators. The acquisition will give Mobius access to these businesses while providing Triminator access to Mobius’ customer service and technology.

For more information on the product lines, visit www.mobiustrimmer.com and www.thetriminator.com. 

Filed Under: Cannabis News

Minnesota Lawmakers Reintroduce Adult-Use Cannabis Legalization Bill

February 2, 2021 by CBD OIL

VANCOUVER, British Columbia, Feb. 2, 2021 – PRESS RELEASE – Eteros Technologies, owner of Mobius Trimmer, a top brand of high-end cannabis and hemp processing equipment, has acquired California-based Triminator, a pioneer in harvesting equipment for professional growers of cannabis and hemp. The acquisition provides the Canadian-based Eteros Technologies with a broader product range and increased access to the U.S. market. Financial details were not disclosed.

The Mobius and Triminator product lines combine to form the world’s largest manufacturer of cannabis and hemp harvesting and processing equipment. Eteros Technologies, parent company of the Mobius line, plans to retain Triminator employees and leadership, and the company said both brands will continue to operate independently. Working in synergy, each will marshal greater engineering, sales, training and support resources to offer customers a comprehensive suite of processing solutions. This acquisition also means that the full Canadian designed-and-built Mobius line and full U.S.-built Triminator product line will be stocked and available across North America.  

“Just like Mobius, Triminator has built an amazing business from the ground up,” said Aaron McKellar, CEO of Mobius Trimmer. “Using innovation and ingenuity, Triminator’s team created machines that helped define the post-harvest process in modern cannabis and hemp agriculture. We look forward to building upon each other’s strengths to help even more farmers increase the efficiency of their harvest.”

The two product lines complement each other precisely because of their differences. Each is focused on providing full support to a specialized market. Triminator is committed to the cannabis and hemp farmer by building a community of hands-on brand ambassadors who have their own farms and can mentor other end-users on the craft of processing. The Mobius line has been focused on equipping and supporting growers who are operating in a large-scale, highly regulated environment, where SOPs and often GMP requirements drive processing operations and investing heavily in developing the training resources and technical documentation necessary to serve these end-users.

“This acquisition could not be a better fit from our perspective,” said Dana Mosman, CEO of Triminator. “We equip some of the most advanced farms across the globe and maintain our commitment to supporting farmers. Now our options to help these cultivators just increased exponentially. We look forward to continuing to meet the needs of the farming community, to help growers increase productivity and profitability in the rapidly evolving cannabis market.”

Each brand serves different customer segments. Mobius is one of the most technologically advanced harvesting options available, holding a number of patents in trimming technology and the largest market share in Canada among large-scale cultivators. Triminator has focused on the agricultural sector and small-to-midsize cultivators. The acquisition will give Mobius access to these businesses while providing Triminator access to Mobius’ customer service and technology.

For more information on the product lines, visit www.mobiustrimmer.com and www.thetriminator.com. 

Filed Under: Cannabis News

Integrating a Culture of Quality Into the Cannabis Industry

February 2, 2021 by CBD OIL

The culture of the cannabis industry is filled with passion that many envy, and for valid reasons. The roots of the cannabis plant go back thousands of years. As of this writing, there are no documented human deaths that were caused by a phytocannabinoid overdose. However, it is not all rainbows and unicorns.

Before breaking ground, fundraising, proper facility design, competitive application and permitting requirements are just the start. Once operating, businesses struggle to stay current with regulations that continue to evolve. Cannabis cultivators struggle to scale while mitigating pest infestations, which is a part of life in the conventional agricultural industry. A lack of consistent products frustrates consumers, while regulators and policy makers continue to struggle on the best way to regulate a commodity that has seemingly endless demand. The reality is dizzying!

However, amidst all of the challenges and opportunities, a continually overlooked tool stands out: a Quality Management System (QMS). Merriam-Webster defines a system as “an organized set of doctrines, ideas, or principles usually intended to explain the arrangement or working of a systematic whole.”

A QMS documents processes, procedures and responsibilities that ultimately direct an organization’s activities to meet customer and regulatory requirements as well as continually improve its effectiveness and efficiency. In other words – it steers innovation through the collection of data while ensuring products are safe for the consumer. For further reading, the American Society for Quality (ASQ), now over 70 years old, is an excellent resource and provider of resources and formal training programs that are recognized and revered around the world.

Step 1: Define your stakeholder requirements

This all starts with knowing your stakeholder (e.g., customer, regulatory body) requirements. For simplicity’s sake, let’s start with your customer; at a fundamental level, they expect safe, consistent and reliable products that impart a certain experience.

How does that translate into specifications? Let’s look at them one at a time.

What does “safe” mean? For an edible, safe means the product is free of physical, chemical and microbial hazards. Knowing what potential impurities could be in your product requires understanding your raw materials (inputs) and the manufacturing process. To take a deeper dive, some of the aspects of safety and quality, product specifications and testing considerations are discussed in this recent Cannabis Industry Journal article by Dr. Roggen and Mr. Skrinskas here.

An example of a compliant label in Oregon

What does “consistent” mean? This builds off and complements the safety profile. It could mean a consistent fill level, an acceptable range of cannabinoid concentration, and so on. For example, in the US Pharmacopeia’s peer-reviewed article about quality attributes of cannabis inflorescence (commonly known as flower or bud), they recommend 20% as the acceptable variance in cannabinoid content. For a product labeled as having 25% THC, the product will actually test to between 20% and 30%. This may be surprising, and discomforting for some, but the reality is that products on the market consistently fail to meet label claims.

What does “reliable” mean? That could mean that you always have inventory of certain products on the shelves at your dispensary. Defining “always” as a SMART goal – perhaps it means that you will have your top 3 products in stock at least 90% of the time. Customers need to feel like they can rely on your business to provide them with the products they want. Take the time to capture the data on what your customers want and work to satisfy their needs and you’ll watch your business really accelerate.

Step 2: Build your processes to meet these expectations

This is where your written standard operating procedures (SOPs), forms and records come into play. Your SOPs serve to memorialize your operations for consistency. Most SOPs in the cannabis industry are not written by the actual operators of a process. Rather, they are written by the legal and compliance team without review by the operators to confirm that what they are stating reflects operational reality. The audience needs to be the operators. Without effective SOPs that are utilized by your employees, your business will struggle to meet the established specifications. Cannabis businesses in Colorado, the oldest regulated adult-use cannabis market in the United States, continue to see 1 in 8 of their products fail final product testing! Cannabis businesses that understand their processes, document them in SOPs and have records to prove they follow their SOPs (see Step 3) are able to reduce errors that ultimately lead to costly rework and product failures.

Consistency in quality standards requires meticulous SOPs

Step 3: Monitor and improve

You have your requirements, you have your process, but how do you know that they are being adhered to? By the time you have results from a third-party lab, it’s too late. Look internally. Records and logs that show preventive maintenance was performed, room and canopy temperature and humidity checks, inventory reports, production records, extraction equipment report and employee training records shouldn’t be filled out only to be filed away. These records are data, which is your most valuable tool. Unfortunately, records are one of the most overlooked assets in today’s cannabis business. A team independent from operations (typically a Quality Unit) should be regularly reviewing these for inconsistencies and trends that can alert you to catastrophic failures before they occur.

Initially, the additional expenditure and learning curve may make this seem like an added burden, but keep in mind that succeeding in today’s cannabis industry requires long-term customer retention. By biting off one piece at a time, you can slowly implement a QMS that will improve your business, increase customer satisfaction, and ensure your brand is a staple for years to come. Remember, quality and compliance is a journey, not a “set it and forget it” situation.

The definition of a Quality Management System includes ‘continuous improvement’. Look forward to a future article which will discuss the importance of tools like a CAPA Program – Corrective Action Preventive Action (which all cannabis license holders in Colorado are required to have in place as of January 1, 2021) and how they complete your QMS, keeping you compliant and mitigating your business risks!

Filed Under: Cannabis News

Triminator Joins Mobius as Part of Eteros Technologies

February 2, 2021 by CBD OIL

Many might expect that the wine industry shares similarities with the cannabis market, from the strict regulations to brand development strategies, but few might think to compare cannabis with window treatments.

However, according to Allison Siegel, the former president of Next Day Blinds and a former information technology and marketing executive for Total Wine & More, both roles provided valuable experience and expertise that will serve her well in her new position as chief operating officer for CULTA, a Maryland-based, vertically integrated cannabis operator.

RELATED: How CULTA’s Jay Bouton Works: Cannabis Workspace

At Next Day Blinds, Siegel grew accustomed to owning the customer experience from manufacturing to sale to installation, which is not unlike overseeing the cultivation, manufacturing and sale of medical cannabis products. And, she adds, the cannabis industry is growing rapidly like the wine industry once was, which makes Siegel excited to lend her talents to another quickly evolving market. 

Here, Siegel shares more about her professional background, how her experience guides her perspective of the cannabis market and her overall goals for CULTA as the company continues to grow in Maryland.

Melissa Schiller: Can you describe your background and previous experience with Next Day Blinds? What did your previous role entail?

Photo courtesy of CULTA

CULTA Chief Operating Officer Allison Siegel

Allison Siegel: Most recently, I was president of Next Day Blinds, a Maryland-based, vertically integrated, direct-to-consumer business with 400-plus employees. I ran the day-to-day business until I led the company through a strategic sale to a national competitor. Prior to president, I was chief revenue officer, responsible for sales and marketing. While at Next Day Blinds, my team significantly improved top- and bottom-line financial results and we had a fun time doing it! We implemented a full technology replacement, upgrading our systems while enabling a thorough omni-channel experience for our customer. We also increased our gross margin through our manufacturing plant while increasing customer satisfaction. We did all of this while improving employee engagement scores, too.

Prior to Next Day Blinds, I worked for Total Wine & More for 10 years. I built and ran the IT Applications & Business Process teams for Total Wine for many years, and then spent my final three years there building a [customer relationship management] (CRM ) system, a loyalty program and a consumer insights group within the marketing team. 

I also worked for a number of years at Anderson Consulting (now Accenture), mainly focusing on strategy and technology implementation of product-based companies. 

I studied industrial and operations engineering at University of Michigan in Ann Arbor. Go Blue!

MS: How will your background and previous experience benefit you in your new role as CULTA’s COO?

AS: My experience at Next Day Blinds running the day-to-day operations will help me both understand and implement the process, people and technology needs to effectively run the operations at CULTA. Even though the product is very different, Next Day Blinds was a vertically integrated company, owning the customer experience from sale to manufacturing to installation. That experience will help me here at CULTA as we are a seed-to-sale vertically integrated operator.

The focus of customer experience at Next Day Blinds is also something that mirrors the CULTA business. We at CULTA believe the customer experience always needs to come first, focusing on a quality product and always being transparent with our customer. In addition, my years of experience in retail will help me support our growing dispensary business.

Wine has a lot of similarities to cannabis, especially around the intense regulation, taxing and brand development areas. In addition, the extreme growth I was part of at Total Wine & More closely mirrors CULTA’s growth. Managing and keeping up in a growth culture isn’t for the faint of heart. I have already experienced it and loved it at Total Wine & More. I am excited that I get to be part this similar explosive trajectory at CULTA. 

MS: What attracted you to the cannabis space, and to CULTA specifically?

AS: My path into this space was not a traditional one. While exploring what I wanted to take on after the sale of Next Day Blinds, I met one of the members of our board of directors. We met (in his backyard due to COVID restrictions) and spoke a lot about the challenges that go along with the excitement of operating growing businesses, as well as the lack of business (non-government) leaders in the Baltimore-Washington, D.C. area. At some point in the conversation, he asked me if I would be interested in consulting for a cannabis company in the area. After speaking with Mackie Barch, CEO of CULTA, as well as one of the other directors on our board, they quickly won me over with CULTA’s story, growth and vision. I agreed to consult with them for a few months. 

Once I was consulting, I got a tour of the CULTA Cambridge campus and realized, this is a real business. What made me decide to come on board full time was three-fold:

1. I have never seen a company where the employees are so proud, happy and fulfilled.  If you walk into any space occupied by CULTA employees, you can feel them living and breathing the CULTA culture. They have a sense that they not only are part of the culture, but that they were part of defining and building it. And they take the role of preserving that culture very seriously. 

2. I am inspired by people who are the best at what they do. People who you always feel are at the top of their game and, even then, they continue to evolve, learn and grow. This is one of the things that drew me to CULTA. We have the best people, those that are true experts in their field, and they are open to new ideas and always ready to learn.

3. I can help. My expertise, background and passion are areas where there was an obvious hole that was created as the company went from start-up to growth mode.

MS: What is exciting to you about Maryland’s medical cannabis market in particular, and CULTA’s operations in the state?

AS: There is so much exciting about the U.S. cannabis industry, and Maryland is just a microcosm of that excitement. It’s an incredible opportunity for me to drive growth at CULTA, while also help to normalize cannabis, both medicinally and politically. 

I am a Maryland girl at heart. I grew up in Baltimore and currently live in Rockville, Md. It is exciting for me to be part of the change in Maryland around [the] acceptance of cannabis as a mainstream medical treatment. The community here has made huge strides from where we were just a few years ago.

CULTA has had a positive impact on Cambridge, Md., where we are located. Our operation has brought new jobs to Cambridge and we are so happy to be able to make a difference in this community.

Our dispensary business is continuing to evolve, as well. While we already have a loyal following, we are continuing to invest in the dispensary business and the team. We will continue to ensure we are able to service our patients with the best products, most knowledgeable budtenders, and a clean and enjoyable dispensary experience. 

MS: CULTA seems to be in the middle of a growth spurt, with a new headquarters and additional new hires, such as Vice President of Retail Sales Jonathan Lassiter. How do you plan to help support this growth in your new role, and where do you see the company headed over the course of this year?

AS: A growth spurt would be putting it lightly. This company is still in its infancy, yet it is growing leaps and bounds month over month. This company went from start-up to growth mode over an 18-month period. The board of directors and the current management team have recognized that in order to continue [the] amazing growth, additional talent is needed to complement the current players. 

In my role, I am going to help drive the growth using more mature methods than are used during a company’s start-up phase. Over the course of this year, we will embark on a number of projects that will take this company to the next level. Through CULTA’s growth in 2020, the current team proved that CULTA was able to keep the products’ quality high while increasing supply. We now need to continue to dial in our production while implementing our plan for continued growth. 

When you are in a growing, immature market, everything looks like blue waters. We need to ensure we have a strong plan for our growth, focus on the blue waters that we can own at CULTA and be able to pivot when we try something and fail. I am here to help support and drive those efforts and ensure our team members all feel engaged and fulfilled.

MS: What are some of your other shorter- and longer-term goals in your new role with CULTA?

AS: Short term, I need to spend a lot of time learning about the cannabis space—both what we are doing at CULTA and what the rest of the country is doing, especially in the more mature markets. I am also very cognizant that I need to be a steward of our culture. We need to keep the quality of our culture and our product at the forefront of all of our decisions, even as we grow. While the bottom line of a business is important, we can’t let short-term financial goals erode the long term, which would happen if we don’t ensure our culture and quality stay No. 1. I also have a short-term goal to start to understand the political and social landscape as it pertains to cannabis. This goes hand in hand with this industry and I need to educate myself in these areas.  

Longer term, my goal is to make this the best, most admired cannabis company in Maryland. At Next Day Blinds, I helped transform it into a top-tier brand in the Mid-Atlantic. I’m excited to contribute to CULTA’s similar growth. Luckily, all of the foundation is already in place here—I just have to build on top of it.

Editor’s Note: This interview has been edited for style, length and clarity.

Filed Under: Cannabis News

CA Health and Safety Warning Laws Have Changed: Are You In Compliance?

February 2, 2021 by CBD OIL

A new California Proposition 65 mandate took effect on January 3, requiring health warning labels for all cannabis products sold in the state. Failure to comply with the requirements can and will result in enforcement against cannabis producers and sellers, resulting in hefty penalties. Here’s what you need to know.

Some Background on Proposition 65 and Cannabis

California’s Proposition 65, also known as the “Safe Drinking Water and Toxic Enforcement Act of 1986,” requires various parties in the supply chain for consumer products to provide warnings on products they sell in the state if exposure to certain chemicals in those products will pose a significant risk of cancer or reproductive harm. Proposition 65 applies to any company that sells products in California, regardless of whether the business is headquartered or manufactures products in California.

This is an example of a Prop 65 warning label. They might look familiar because we tend to see them on a lot of common goods and products.

“Cannabis (Marijuana) Smoke” was listed under Proposition 65 in 2009 because of the potential that it contains ingredients or emits chemicals known to cause cancer. These chemicals include toxins such as arsenic, benzene, cadmium, formaldehyde, lead and nickel. In January 2020, Delta-9-Tetrahydrocannabinol (THC) was added to the list of toxic chemicals under Proposition 65 because of THC’s potential to cause reproductive harm. Now, both THC and cannabis smoke are listed under Proposition 65 and require warning labels.

What This Means for You and Your Company

The updated chemical list, which includes THC, became effective January 3, 2021, so the clock to come into compliance is ticking if you are not already complying. Many cannabis companies selling in California already comply with Proposition 65 by including warnings on their products that emit cannabis smoke. However, now companies that have previously issued a consumer warning regarding cannabis smoke must expand their warnings to include both the potential risk of cancer and the potential risk of reproductive harm. Additionally, products that previously did not require a warning for cannabis smoke will now be subject to Proposition 65 for exposure to THC.

The listing of THC implicates a broader range of cannabis products because it affects any product that contains detectable levels of THC, including products that contain less than 0.3% THC in compliance with the 2018 Farm Bill. Under the THC listing, a wide range of cannabis and hemp-derived CBD products, including products that do not emit smoke, such as edibles, topicals and other concentrates are subject to the Proposition 65 labeling requirements.

The agency that oversees Proposition 65 has provided so-called “safe harbor” levels for many listed chemicals that allow companies to forego a warning label if exposure to the chemical occurs at or below a certain threshold. However, no safe harbor level has been established for cannabis smoke or THC, and so the burden falls to the business to determine if the levels of the chemical pose a significant risk to the consumer. This determination typically requires extensive and costly testing that is not practical for most businesses. Thus, parties in the cannabis supply chain should work to properly label all cannabis-related products at this time. Failure to do so is risky. Proposition 65 “bounty hunters” team up with individuals to enforce Proposition 65 by sending notice of violation letters and then often filing lawsuits against businesses they believe are in violation of the statute. Many of these demands and lawsuits settle, as the cost to litigate is expensive. Settling, though, can be expensive, too.

Filed Under: Cannabis News

Wine, Window Treatments and Cannabis: Q&A with CULTA COO Allison Siegel

February 2, 2021 by CBD OIL

Many might expect that the wine industry shares similarities with the cannabis market, from the strict regulations to brand development strategies, but few might think to compare cannabis with window treatments.

However, according to Allison Siegel, the former president of Next Day Blinds and a former information technology and marketing executive for Total Wine & More, both roles provided valuable experience and expertise that will serve her well in her new position as chief operating officer for CULTA, a Maryland-based, vertically integrated cannabis operator.

RELATED: How CULTA’s Jay Bouton Works: Cannabis Workspace

At Next Day Blinds, Siegel grew accustomed to owning the customer experience from manufacturing to sale to installation, which is not unlike overseeing the cultivation, manufacturing and sale of medical cannabis products. And, she adds, the cannabis industry is growing rapidly like the wine industry once was, which makes Siegel excited to lend her talents to another quickly evolving market. 

Here, Siegel shares more about her professional background, how her experience guides her perspective of the cannabis market and her overall goals for CULTA as the company continues to grow in Maryland.

Melissa Schiller: Can you describe your background and previous experience with Next Day Blinds? What did your previous role entail?

Photo courtesy of CULTA

CULTA Chief Operating Officer Allison Siegel

Allison Siegel: Most recently, I was president of Next Day Blinds, a Maryland-based, vertically integrated, direct-to-consumer business with 400-plus employees. I ran the day-to-day business until I led the company through a strategic sale to a national competitor. Prior to president, I was chief revenue officer, responsible for sales and marketing. While at Next Day Blinds, my team significantly improved top- and bottom-line financial results and we had a fun time doing it! We implemented a full technology replacement, upgrading our systems while enabling a thorough omni-channel experience for our customer. We also increased our gross margin through our manufacturing plant while increasing customer satisfaction. We did all of this while improving employee engagement scores, too.

Prior to Next Day Blinds, I worked for Total Wine & More for 10 years. I built and ran the IT Applications & Business Process teams for Total Wine for many years, and then spent my final three years there building a [customer relationship management] (CRM ) system, a loyalty program and a consumer insights group within the marketing team. 

I also worked for a number of years at Anderson Consulting (now Accenture), mainly focusing on strategy and technology implementation of product-based companies. 

I studied industrial and operations engineering at University of Michigan in Ann Arbor. Go Blue!

MS: How will your background and previous experience benefit you in your new role as CULTA’s COO?

AS: My experience at Next Day Blinds running the day-to-day operations will help me both understand and implement the process, people and technology needs to effectively run the operations at CULTA. Even though the product is very different, Next Day Blinds was a vertically integrated company, owning the customer experience from sale to manufacturing to installation. That experience will help me here at CULTA as we are a seed-to-sale vertically integrated operator.

The focus of customer experience at Next Day Blinds is also something that mirrors the CULTA business. We at CULTA believe the customer experience always needs to come first, focusing on a quality product and always being transparent with our customer. In addition, my years of experience in retail will help me support our growing dispensary business.

Wine has a lot of similarities to cannabis, especially around the intense regulation, taxing and brand development areas. In addition, the extreme growth I was part of at Total Wine & More closely mirrors CULTA’s growth. Managing and keeping up in a growth culture isn’t for the faint of heart. I have already experienced it and loved it at Total Wine & More. I am excited that I get to be part this similar explosive trajectory at CULTA. 

MS: What attracted you to the cannabis space, and to CULTA specifically?

AS: My path into this space was not a traditional one. While exploring what I wanted to take on after the sale of Next Day Blinds, I met one of the members of our board of directors. We met (in his backyard due to COVID restrictions) and spoke a lot about the challenges that go along with the excitement of operating growing businesses, as well as the lack of business (non-government) leaders in the Baltimore-Washington, D.C. area. At some point in the conversation, he asked me if I would be interested in consulting for a cannabis company in the area. After speaking with Mackie Barch, CEO of CULTA, as well as one of the other directors on our board, they quickly won me over with CULTA’s story, growth and vision. I agreed to consult with them for a few months. 

Once I was consulting, I got a tour of the CULTA Cambridge campus and realized, this is a real business. What made me decide to come on board full time was three-fold:

1. I have never seen a company where the employees are so proud, happy and fulfilled.  If you walk into any space occupied by CULTA employees, you can feel them living and breathing the CULTA culture. They have a sense that they not only are part of the culture, but that they were part of defining and building it. And they take the role of preserving that culture very seriously. 

2. I am inspired by people who are the best at what they do. People who you always feel are at the top of their game and, even then, they continue to evolve, learn and grow. This is one of the things that drew me to CULTA. We have the best people, those that are true experts in their field, and they are open to new ideas and always ready to learn.

3. I can help. My expertise, background and passion are areas where there was an obvious hole that was created as the company went from start-up to growth mode.

MS: What is exciting to you about Maryland’s medical cannabis market in particular, and CULTA’s operations in the state?

AS: There is so much exciting about the U.S. cannabis industry, and Maryland is just a microcosm of that excitement. It’s an incredible opportunity for me to drive growth at CULTA, while also help to normalize cannabis, both medicinally and politically. 

I am a Maryland girl at heart. I grew up in Baltimore and currently live in Rockville, Md. It is exciting for me to be part of the change in Maryland around [the] acceptance of cannabis as a mainstream medical treatment. The community here has made huge strides from where we were just a few years ago.

CULTA has had a positive impact on Cambridge, Md., where we are located. Our operation has brought new jobs to Cambridge and we are so happy to be able to make a difference in this community.

Our dispensary business is continuing to evolve, as well. While we already have a loyal following, we are continuing to invest in the dispensary business and the team. We will continue to ensure we are able to service our patients with the best products, most knowledgeable budtenders, and a clean and enjoyable dispensary experience. 

MS: CULTA seems to be in the middle of a growth spurt, with a new headquarters and additional new hires, such as Vice President of Retail Sales Jonathan Lassiter. How do you plan to help support this growth in your new role, and where do you see the company headed over the course of this year?

AS: A growth spurt would be putting it lightly. This company is still in its infancy, yet it is growing leaps and bounds month over month. This company went from start-up to growth mode over an 18-month period. The board of directors and the current management team have recognized that in order to continue [the] amazing growth, additional talent is needed to complement the current players. 

In my role, I am going to help drive the growth using more mature methods than are used during a company’s start-up phase. Over the course of this year, we will embark on a number of projects that will take this company to the next level. Through CULTA’s growth in 2020, the current team proved that CULTA was able to keep the products’ quality high while increasing supply. We now need to continue to dial in our production while implementing our plan for continued growth. 

When you are in a growing, immature market, everything looks like blue waters. We need to ensure we have a strong plan for our growth, focus on the blue waters that we can own at CULTA and be able to pivot when we try something and fail. I am here to help support and drive those efforts and ensure our team members all feel engaged and fulfilled.

MS: What are some of your other shorter- and longer-term goals in your new role with CULTA?

AS: Short term, I need to spend a lot of time learning about the cannabis space—both what we are doing at CULTA and what the rest of the country is doing, especially in the more mature markets. I am also very cognizant that I need to be a steward of our culture. We need to keep the quality of our culture and our product at the forefront of all of our decisions, even as we grow. While the bottom line of a business is important, we can’t let short-term financial goals erode the long term, which would happen if we don’t ensure our culture and quality stay No. 1. I also have a short-term goal to start to understand the political and social landscape as it pertains to cannabis. This goes hand in hand with this industry and I need to educate myself in these areas.  

Longer term, my goal is to make this the best, most admired cannabis company in Maryland. At Next Day Blinds, I helped transform it into a top-tier brand in the Mid-Atlantic. I’m excited to contribute to CULTA’s similar growth. Luckily, all of the foundation is already in place here—I just have to build on top of it.

Editor’s Note: This interview has been edited for style, length and clarity.

Filed Under: Cannabis News

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