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How To Get Acquired In Four Critical Steps

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We have all read the headlines and press releases touting an acquisition with a fit so seemingly perfect it feels predestined. It may be true in some cases that two businesses just “found” each other. However, it is more likely that a solid acquisition is the result of a calculated process on both sides of the deal. To put it bluntly: Good acquisitions do not materialize out of thin air. 

Do not depend upon your amazing product or service offering, no matter how revolutionary, to reel in the deals alone. Do not believe that your own hype will raise the interest of potential buyers. Do not feel that you will be one of the rare companies that just “finds” its perfect match. If you are pursuing an exit strategy of acquisition, you had better be thinking with an acquisition mindset and planning to make it occur.  

Developing a roadmap to acquisition may seem a little daunting, but the process can actually be fairly simple—if not easy. It can be summed up in four critical steps which, when followed, will dramatically increase your chances of success. These are the signs that say you are serious about being acquired.

1) Create a strategy.

It might seem like an obvious first step, but you would be surprised by the number of business leaders who do not follow, or even possess, a clear, articulated strategy. I am convinced that without one, any success a company meets is purely by chance. The power of a great idea or an incredible product can only take you so far. You need a North Star to guide you.

But creating a strong strategy that accurately reflects what your business offers and how it can be leveraged for acquisition is not always easy. The temptation to exaggerate strengths and downplay weaknesses can be strong. Your strategy must address what makes your business attractive while honestly acknowledging where it falls short, and how the business can make up for these perceived shortcomings. When developing a strategy that will take you to acquisition, pie-in-the-sky thinking must be tossed aside in place of stone-cold reality. 

Be especially careful not to fall into the trap of blindly trusting your own assumptions without backing them up with evidence. Take advice cautiously and with scrutiny to ensure you are not just listening to sycophants and good-intentioned well-wishers. Create an optimistic strategy, but one with realistic expectations and an honest approach. A plan created through rose-colored glasses will quickly fall apart.

In the cannabis industry, there are some unique, significant challenges that any acquisition strategy will need to address. There will no doubt be numerous competitors in your space, many of whom will also be vying for eventual acquisition. Positioning among a sea of companies all hoping to be acquired can be a tricky proposition. The rapidly changing nature of the cannabis industry requires swift adjustments when they are needed to adapt to sudden change. Be clear that your strategy differentiates your company in the correct ways, and is nimble enough to alter course if necessary. Avoid relying on the personalities of top leadership as a key component of your strategy. And be certain any strategy recognizes and accommodates the financial and regulatory issues the business will face in the cannabis space.    

2) Generate buzz.

Very often, companies neglect or ignore one of the most important tools at their disposal on the road to acquisition: Communication. If your acquisition strategy does not include a communication plan, go back and revise the strategy. An investment in a consistent and sustained communication program is what sets smart companies apart from others, and can make the difference between being acquired and being ignored. In a choice between two equals, the business making the most noise is the one that grabs investors’ interest. A focused communication program with a consistent flow of information reaching the right audiences conveys momentum, purpose and energy. These are three attractive factors any business desires.

But generating buzz does not come without risk. Avoid extravagant marketing excesses that detract from the business. That brand-new Tesla wrapped in the company’s logo probably looks pretty cool, but it sends a frivolous message. Frugality is rewarded above indulgence when it comes to becoming acquired. Use your communication approach to thoroughly research the right events and conferences to attend to get in front of the right audiences, as well as the best organizations with which to associate your business. Utilize your messages to showcase how your product or service solves the problems others cannot or will not address.

Finally, although the competition might be cutthroat, your communication does not need to follow that lead. Engage your competition as a community to encourage a good-natured, if combative, network of like-minded professionals. The competitor of today could be the partner of tomorrow. Go ahead and make a splash, but do so with humility. 

3) Build the right relationships.

As you have most likely done to help build your career, establishing and maintaining relationships with the right people is also a critical part of any acquisition strategy. Your communication plan should clearly outline which audiences are essential for your strategy to succeed, and you should identify how you will connect with and impress these audiences. There are some telling indicators like who sits on your Board of Directors or makes up your Advisory Board that can increase your credibility, and you should be sure these entities communicate the right message to potential buyers. Recruit board members whose industry knowledge and strategic influence suggest confidence in your company’s product and management. Fill advisory boards with experts and influencers who enhance your reputation and increase the validity of your claims. Secure partnerships that minimize your shortcomings and complement your offerings. Finally, communicate all of these attributes to the right media and analyst audiences on a consistent basis to remain top of mind when your sector makes news.

As a cannabis business, it will be critical to establish relationships with experienced experts who can help navigate the often confusing and constantly changing regulatory and legal environment of the industry. Not everyone expected to land in cannabis, and many are ill-equipped to negotiate the hurdles and roadblocks the space can throw at business. Working with the right attorneys, accountants and other professional service providers who know the industry and understand its nuances can prevent deal-breaking errors down the road. Audited financials that reveal a monster tax liability will kill a deal in an instant.

Utilize your relationships to position for the long-term vision of acquisition, as well as to satisfy near-term needs. Examine potential partnerships with an eye toward the future. Those that make sense today may not be compatible with your exit strategy. 

4) Follow up and follow through.

As trite as it might sound, the old business maxim still applies: Plan the work and work the plan. No matter how well researched or meticulously articulated your overall acquisition strategy, there will always be hiccups. Be prepared to stay flexible, recognize flaws in thinking and adapt when necessary. Mistakes will be made and unforeseen industry developments will undoubtedly interfere with your plans, but the ability to respond with agility and quick action will be easier when you are being guided by a sound strategy.

Of course, none of this will guarantee success. However, following these four steps will position you far above other companies competing for the attention of would-be suitors. They are the telltale signs of a business that understands its appeal and is organized and strategic in how it meets its goals. These are the attributes anyone desires in a company considered for acquisition. And they are the ones that grab my attention, as well.

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The National Cannabis Roundtable’s Christopher Jensen Talks 280E, SAFE and Delta-8

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Cannabis beverages are becoming a more visible product category, particularly as dispensaries begin adding adequate cooler space for brands entering the space. For Keef Brands, which has been around for years, the evolution has been steady—moving through medical markets, allowing patients to become acquainted with the product, and then getting familiar with the burgeoning adult-use landscape in the U.S.

Keef Cola originated in Boulder, Colo., in 2010, with a keen eye to the many adaptive shifts that were coming in the cannabis market. Eventually, just based on how humans interact with one another, the market would embrace cannabinoid-infused beverages. With $2.9 million in U.S. sales in Q1, according to Headset, Keef Brands makes up a large part of what remains a small (but growing) market segment.

Travis Tharp was named CEO after serving as president and COO. Here, we spoke with Tharp about the state of the cannabis beverage segment and what we can expect next.

Eric Sandy: What’s the current scope of Keef Brands in the U.S.?

keef cola

 

Travis Tharp: We’re currently in seven states, plus Puerto Rico, and those are Colorado, California, Arizona, Oklahoma, Missouri, Maine and Ohio. We launched our three latest markets of Ohio, Maine and Missouri in the first quarter of 2021, and we’ve been very pleased with the acceptance that those people have welcomed us to in all of these states. We’ve had really great partners in all of these, because we have to work with a manufacturer in each area. You have to set up your entire ecosystem in each state, and we’ve been very fortunate to have some wonderful partners over the years. This latest group is no exception.

ES: How does Keef Brands navigates the differences between medical and adult-use markets?

TT: It’s a really good question because I think it speaks to the evolution of our company over the years. Keef was one of the original edible brands in Colorado, all the way back in 2010, and the first product lines were medical sodas at the 100-milligram level that were targeting medical patients. That was something our founder nailed, because he started working with the folks who were the early adopters—the evangelical people who wanted to be in the industry, who wanted to be a budtender, who wanted to use it for medicinal purposes. We were able to set up a really strong relationship with both consumers and retailers over the first three or four years of medical-only in Colorado, so that when it switched to adult-use and brought out our lower 10-milligram beverages, it was very warmly received.

We had some allies and support in the industry for us bringing out an adult-use option. I’ve seen that happen in a couple of different markets that we’ve gone into. And I think that’s something that we really take to heart. It’s a very significant part of our entry strategy—to take care of the medical patients and have an option for them, providing them multiple options, whether it’s something like the mocktails that are the sugary tasty beverages or something that’s more of a health-conscious, low-sugar, low-calorie option for other medical patients. Since we’ve been able to meet the market in these early stages, we’ve been able to build a really strong partnership with all the retailers and the customers. Being from Colorado and having a lot of people over the years associate a positive experience of coming out here with the brand has really helped us develop. When the new states would come on, you see the acceptance and the brand recognition is happening faster and at a higher rate than in the first couple of markets that we launched.

ES: Dosing is a big part of this conversation. How does Keef position its 10-milligram beverages and the idea of what “10 milligrams” might mean for customers?

TT: We always tell everyone that nobody reacts the exact same. Everyone needs to understand what their correct dosing is. We always subscribe to the “start low and go slow” adage. One of the benefits of beverages and the reason that people are starting to gravitate toward them versus other form factors is that when you drink a beverage, the uptake of THC happens sublingually versus going down and having to process through your stomach and your bladder. It really provides a consistent, sessionable experience that people are used to having with alcohol or something of that nature. You just don’t want people to have a negative experience when they’re trying the product.

In all of the states where we launched, we’ve been on a very aggressive education campaign. We’re in the very early stages of the life cycle of this industry. Look at the last two years, and beverage has gained a lot of from a units and sales perspective. It’s gained a lot, but it’s still a relatively small segment of the overall market with a lot of opportunity to grow. We work together with competitors to try to get the word out. The old “a rising tide lifts all ships” adage really applies in the beverage segment right now.

ES: I was going to ask about the state of the market. Beverages are a small slice of the pie right now, but they seem to be growing quickly.

TT: There’s been a good evolution of adoption of beverage. We always thought that social consumption lounges would be when beverages would start to take off. Ironically, it was during the pandemic—with people having a lot of time on at home—that they tried new products. We saw an acceleration of that, specifically, in the beverage category. You’ve seen some new entrants that are coming with very low-dose offerings, which I think is great. We address a couple of different segments of the market. We don’t address all of them currently.

We know that there’s room in the cooler—and making sure that the cooler actually exists in the retailers is something that’s been a shared endeavor and a shared challenge. Some of the original dispensaries were set up bodega-style. But you can see an evolution in the newer markets where they’re trying to adopt a different type of retail experience that incorporates a larger refrigerator, and that’s amazing,

ES: What’s the on-site consumption situation in the home state of Colorado?

TT: It been passed at the state level, and the cities are starting to implement it. It’s on the way. It’s not where California is as of yet, or some of the other states, but it has been passed and people are gearing up for it.

ES: There’s a lot of talk about “occasion-based consumption” in the industry. Where does the marketing for beverages place this product segment?

TT: Our core brand ethos is welcoming everybody to the party, whether that’s somebody who’s never experienced cannabis before or somebody who’s an old pro. That’s been one of our major points that we always try to stick to: We want people who are experiencing beverages when they’re at a barbecue not to have to go somewhere else and remove themselves from the party. They can stay there with it, with a beverage, and stand next to their friends who are having a beer or some other beverage and still be a part of the party and not have to actually excuse themselves. That’s a really interesting shift. Something that we really try to adopt and educate people on is that it allows you to stay in the social setting. It allows you to really enjoy a different alternative experience to just alcohol.

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.

Higher Education Picks Up Some Cannabis Momentum: Week in Review

by

Cannabis beverages are becoming a more visible product category, particularly as dispensaries begin adding adequate cooler space for brands entering the space. For Keef Brands, which has been around for years, the evolution has been steady—moving through medical markets, allowing patients to become acquainted with the product, and then getting familiar with the burgeoning adult-use landscape in the U.S.

Keef Cola originated in Boulder, Colo., in 2010, with a keen eye to the many adaptive shifts that were coming in the cannabis market. Eventually, just based on how humans interact with one another, the market would embrace cannabinoid-infused beverages. With $2.9 million in U.S. sales in Q1, according to Headset, Keef Brands makes up a large part of what remains a small (but growing) market segment.

Travis Tharp was named CEO after serving as president and COO. Here, we spoke with Tharp about the state of the cannabis beverage segment and what we can expect next.

Eric Sandy: What’s the current scope of Keef Brands in the U.S.?

keef cola

 

Travis Tharp: We’re currently in seven states, plus Puerto Rico, and those are Colorado, California, Arizona, Oklahoma, Missouri, Maine and Ohio. We launched our three latest markets of Ohio, Maine and Missouri in the first quarter of 2021, and we’ve been very pleased with the acceptance that those people have welcomed us to in all of these states. We’ve had really great partners in all of these, because we have to work with a manufacturer in each area. You have to set up your entire ecosystem in each state, and we’ve been very fortunate to have some wonderful partners over the years. This latest group is no exception.

ES: How does Keef Brands navigates the differences between medical and adult-use markets?

TT: It’s a really good question because I think it speaks to the evolution of our company over the years. Keef was one of the original edible brands in Colorado, all the way back in 2010, and the first product lines were medical sodas at the 100-milligram level that were targeting medical patients. That was something our founder nailed, because he started working with the folks who were the early adopters—the evangelical people who wanted to be in the industry, who wanted to be a budtender, who wanted to use it for medicinal purposes. We were able to set up a really strong relationship with both consumers and retailers over the first three or four years of medical-only in Colorado, so that when it switched to adult-use and brought out our lower 10-milligram beverages, it was very warmly received.

We had some allies and support in the industry for us bringing out an adult-use option. I’ve seen that happen in a couple of different markets that we’ve gone into. And I think that’s something that we really take to heart. It’s a very significant part of our entry strategy—to take care of the medical patients and have an option for them, providing them multiple options, whether it’s something like the mocktails that are the sugary tasty beverages or something that’s more of a health-conscious, low-sugar, low-calorie option for other medical patients. Since we’ve been able to meet the market in these early stages, we’ve been able to build a really strong partnership with all the retailers and the customers. Being from Colorado and having a lot of people over the years associate a positive experience of coming out here with the brand has really helped us develop. When the new states would come on, you see the acceptance and the brand recognition is happening faster and at a higher rate than in the first couple of markets that we launched.

ES: Dosing is a big part of this conversation. How does Keef position its 10-milligram beverages and the idea of what “10 milligrams” might mean for customers?

TT: We always tell everyone that nobody reacts the exact same. Everyone needs to understand what their correct dosing is. We always subscribe to the “start low and go slow” adage. One of the benefits of beverages and the reason that people are starting to gravitate toward them versus other form factors is that when you drink a beverage, the uptake of THC happens sublingually versus going down and having to process through your stomach and your bladder. It really provides a consistent, sessionable experience that people are used to having with alcohol or something of that nature. You just don’t want people to have a negative experience when they’re trying the product.

In all of the states where we launched, we’ve been on a very aggressive education campaign. We’re in the very early stages of the life cycle of this industry. Look at the last two years, and beverage has gained a lot of from a units and sales perspective. It’s gained a lot, but it’s still a relatively small segment of the overall market with a lot of opportunity to grow. We work together with competitors to try to get the word out. The old “a rising tide lifts all ships” adage really applies in the beverage segment right now.

ES: I was going to ask about the state of the market. Beverages are a small slice of the pie right now, but they seem to be growing quickly.

TT: There’s been a good evolution of adoption of beverage. We always thought that social consumption lounges would be when beverages would start to take off. Ironically, it was during the pandemic—with people having a lot of time on at home—that they tried new products. We saw an acceleration of that, specifically, in the beverage category. You’ve seen some new entrants that are coming with very low-dose offerings, which I think is great. We address a couple of different segments of the market. We don’t address all of them currently.

We know that there’s room in the cooler—and making sure that the cooler actually exists in the retailers is something that’s been a shared endeavor and a shared challenge. Some of the original dispensaries were set up bodega-style. But you can see an evolution in the newer markets where they’re trying to adopt a different type of retail experience that incorporates a larger refrigerator, and that’s amazing,

ES: What’s the on-site consumption situation in the home state of Colorado?

TT: It been passed at the state level, and the cities are starting to implement it. It’s on the way. It’s not where California is as of yet, or some of the other states, but it has been passed and people are gearing up for it.

ES: There’s a lot of talk about “occasion-based consumption” in the industry. Where does the marketing for beverages place this product segment?

TT: Our core brand ethos is welcoming everybody to the party, whether that’s somebody who’s never experienced cannabis before or somebody who’s an old pro. That’s been one of our major points that we always try to stick to: We want people who are experiencing beverages when they’re at a barbecue not to have to go somewhere else and remove themselves from the party. They can stay there with it, with a beverage, and stand next to their friends who are having a beer or some other beverage and still be a part of the party and not have to actually excuse themselves. That’s a really interesting shift. Something that we really try to adopt and educate people on is that it allows you to stay in the social setting. It allows you to really enjoy a different alternative experience to just alcohol.

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.

HEXO Corp. Announces C$925M Acquisition Agreement With Redecan

by

Cannabis beverages are becoming a more visible product category, particularly as dispensaries begin adding adequate cooler space for brands entering the space. For Keef Brands, which has been around for years, the evolution has been steady—moving through medical markets, allowing patients to become acquainted with the product, and then getting familiar with the burgeoning adult-use landscape in the U.S.

Keef Cola originated in Boulder, Colo., in 2010, with a keen eye to the many adaptive shifts that were coming in the cannabis market. Eventually, just based on how humans interact with one another, the market would embrace cannabinoid-infused beverages. With $2.9 million in U.S. sales in Q1, according to Headset, Keef Brands makes up a large part of what remains a small (but growing) market segment.

Travis Tharp was named CEO after serving as president and COO. Here, we spoke with Tharp about the state of the cannabis beverage segment and what we can expect next.

Eric Sandy: What’s the current scope of Keef Brands in the U.S.?

keef cola

 

Travis Tharp: We’re currently in seven states, plus Puerto Rico, and those are Colorado, California, Arizona, Oklahoma, Missouri, Maine and Ohio. We launched our three latest markets of Ohio, Maine and Missouri in the first quarter of 2021, and we’ve been very pleased with the acceptance that those people have welcomed us to in all of these states. We’ve had really great partners in all of these, because we have to work with a manufacturer in each area. You have to set up your entire ecosystem in each state, and we’ve been very fortunate to have some wonderful partners over the years. This latest group is no exception.

ES: How does Keef Brands navigates the differences between medical and adult-use markets?

TT: It’s a really good question because I think it speaks to the evolution of our company over the years. Keef was one of the original edible brands in Colorado, all the way back in 2010, and the first product lines were medical sodas at the 100-milligram level that were targeting medical patients. That was something our founder nailed, because he started working with the folks who were the early adopters—the evangelical people who wanted to be in the industry, who wanted to be a budtender, who wanted to use it for medicinal purposes. We were able to set up a really strong relationship with both consumers and retailers over the first three or four years of medical-only in Colorado, so that when it switched to adult-use and brought out our lower 10-milligram beverages, it was very warmly received.

We had some allies and support in the industry for us bringing out an adult-use option. I’ve seen that happen in a couple of different markets that we’ve gone into. And I think that’s something that we really take to heart. It’s a very significant part of our entry strategy—to take care of the medical patients and have an option for them, providing them multiple options, whether it’s something like the mocktails that are the sugary tasty beverages or something that’s more of a health-conscious, low-sugar, low-calorie option for other medical patients. Since we’ve been able to meet the market in these early stages, we’ve been able to build a really strong partnership with all the retailers and the customers. Being from Colorado and having a lot of people over the years associate a positive experience of coming out here with the brand has really helped us develop. When the new states would come on, you see the acceptance and the brand recognition is happening faster and at a higher rate than in the first couple of markets that we launched.

ES: Dosing is a big part of this conversation. How does Keef position its 10-milligram beverages and the idea of what “10 milligrams” might mean for customers?

TT: We always tell everyone that nobody reacts the exact same. Everyone needs to understand what their correct dosing is. We always subscribe to the “start low and go slow” adage. One of the benefits of beverages and the reason that people are starting to gravitate toward them versus other form factors is that when you drink a beverage, the uptake of THC happens sublingually versus going down and having to process through your stomach and your bladder. It really provides a consistent, sessionable experience that people are used to having with alcohol or something of that nature. You just don’t want people to have a negative experience when they’re trying the product.

In all of the states where we launched, we’ve been on a very aggressive education campaign. We’re in the very early stages of the life cycle of this industry. Look at the last two years, and beverage has gained a lot of from a units and sales perspective. It’s gained a lot, but it’s still a relatively small segment of the overall market with a lot of opportunity to grow. We work together with competitors to try to get the word out. The old “a rising tide lifts all ships” adage really applies in the beverage segment right now.

ES: I was going to ask about the state of the market. Beverages are a small slice of the pie right now, but they seem to be growing quickly.

TT: There’s been a good evolution of adoption of beverage. We always thought that social consumption lounges would be when beverages would start to take off. Ironically, it was during the pandemic—with people having a lot of time on at home—that they tried new products. We saw an acceleration of that, specifically, in the beverage category. You’ve seen some new entrants that are coming with very low-dose offerings, which I think is great. We address a couple of different segments of the market. We don’t address all of them currently.

We know that there’s room in the cooler—and making sure that the cooler actually exists in the retailers is something that’s been a shared endeavor and a shared challenge. Some of the original dispensaries were set up bodega-style. But you can see an evolution in the newer markets where they’re trying to adopt a different type of retail experience that incorporates a larger refrigerator, and that’s amazing,

ES: What’s the on-site consumption situation in the home state of Colorado?

TT: It been passed at the state level, and the cities are starting to implement it. It’s on the way. It’s not where California is as of yet, or some of the other states, but it has been passed and people are gearing up for it.

ES: There’s a lot of talk about “occasion-based consumption” in the industry. Where does the marketing for beverages place this product segment?

TT: Our core brand ethos is welcoming everybody to the party, whether that’s somebody who’s never experienced cannabis before or somebody who’s an old pro. That’s been one of our major points that we always try to stick to: We want people who are experiencing beverages when they’re at a barbecue not to have to go somewhere else and remove themselves from the party. They can stay there with it, with a beverage, and stand next to their friends who are having a beer or some other beverage and still be a part of the party and not have to actually excuse themselves. That’s a really interesting shift. Something that we really try to adopt and educate people on is that it allows you to stay in the social setting. It allows you to really enjoy a different alternative experience to just alcohol.

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.

Bill to Federally Legalize Cannabis Reintroduced to U.S. House

by

Cannabis beverages are becoming a more visible product category, particularly as dispensaries begin adding adequate cooler space for brands entering the space. For Keef Brands, which has been around for years, the evolution has been steady—moving through medical markets, allowing patients to become acquainted with the product, and then getting familiar with the burgeoning adult-use landscape in the U.S.

Keef Cola originated in Boulder, Colo., in 2010, with a keen eye to the many adaptive shifts that were coming in the cannabis market. Eventually, just based on how humans interact with one another, the market would embrace cannabinoid-infused beverages. With $2.9 million in U.S. sales in Q1, according to Headset, Keef Brands makes up a large part of what remains a small (but growing) market segment.

Travis Tharp was named CEO after serving as president and COO. Here, we spoke with Tharp about the state of the cannabis beverage segment and what we can expect next.

Eric Sandy: What’s the current scope of Keef Brands in the U.S.?

keef cola

 

Travis Tharp: We’re currently in seven states, plus Puerto Rico, and those are Colorado, California, Arizona, Oklahoma, Missouri, Maine and Ohio. We launched our three latest markets of Ohio, Maine and Missouri in the first quarter of 2021, and we’ve been very pleased with the acceptance that those people have welcomed us to in all of these states. We’ve had really great partners in all of these, because we have to work with a manufacturer in each area. You have to set up your entire ecosystem in each state, and we’ve been very fortunate to have some wonderful partners over the years. This latest group is no exception.

ES: How does Keef Brands navigates the differences between medical and adult-use markets?

TT: It’s a really good question because I think it speaks to the evolution of our company over the years. Keef was one of the original edible brands in Colorado, all the way back in 2010, and the first product lines were medical sodas at the 100-milligram level that were targeting medical patients. That was something our founder nailed, because he started working with the folks who were the early adopters—the evangelical people who wanted to be in the industry, who wanted to be a budtender, who wanted to use it for medicinal purposes. We were able to set up a really strong relationship with both consumers and retailers over the first three or four years of medical-only in Colorado, so that when it switched to adult-use and brought out our lower 10-milligram beverages, it was very warmly received.

We had some allies and support in the industry for us bringing out an adult-use option. I’ve seen that happen in a couple of different markets that we’ve gone into. And I think that’s something that we really take to heart. It’s a very significant part of our entry strategy—to take care of the medical patients and have an option for them, providing them multiple options, whether it’s something like the mocktails that are the sugary tasty beverages or something that’s more of a health-conscious, low-sugar, low-calorie option for other medical patients. Since we’ve been able to meet the market in these early stages, we’ve been able to build a really strong partnership with all the retailers and the customers. Being from Colorado and having a lot of people over the years associate a positive experience of coming out here with the brand has really helped us develop. When the new states would come on, you see the acceptance and the brand recognition is happening faster and at a higher rate than in the first couple of markets that we launched.

ES: Dosing is a big part of this conversation. How does Keef position its 10-milligram beverages and the idea of what “10 milligrams” might mean for customers?

TT: We always tell everyone that nobody reacts the exact same. Everyone needs to understand what their correct dosing is. We always subscribe to the “start low and go slow” adage. One of the benefits of beverages and the reason that people are starting to gravitate toward them versus other form factors is that when you drink a beverage, the uptake of THC happens sublingually versus going down and having to process through your stomach and your bladder. It really provides a consistent, sessionable experience that people are used to having with alcohol or something of that nature. You just don’t want people to have a negative experience when they’re trying the product.

In all of the states where we launched, we’ve been on a very aggressive education campaign. We’re in the very early stages of the life cycle of this industry. Look at the last two years, and beverage has gained a lot of from a units and sales perspective. It’s gained a lot, but it’s still a relatively small segment of the overall market with a lot of opportunity to grow. We work together with competitors to try to get the word out. The old “a rising tide lifts all ships” adage really applies in the beverage segment right now.

ES: I was going to ask about the state of the market. Beverages are a small slice of the pie right now, but they seem to be growing quickly.

TT: There’s been a good evolution of adoption of beverage. We always thought that social consumption lounges would be when beverages would start to take off. Ironically, it was during the pandemic—with people having a lot of time on at home—that they tried new products. We saw an acceleration of that, specifically, in the beverage category. You’ve seen some new entrants that are coming with very low-dose offerings, which I think is great. We address a couple of different segments of the market. We don’t address all of them currently.

We know that there’s room in the cooler—and making sure that the cooler actually exists in the retailers is something that’s been a shared endeavor and a shared challenge. Some of the original dispensaries were set up bodega-style. But you can see an evolution in the newer markets where they’re trying to adopt a different type of retail experience that incorporates a larger refrigerator, and that’s amazing,

ES: What’s the on-site consumption situation in the home state of Colorado?

TT: It been passed at the state level, and the cities are starting to implement it. It’s on the way. It’s not where California is as of yet, or some of the other states, but it has been passed and people are gearing up for it.

ES: There’s a lot of talk about “occasion-based consumption” in the industry. Where does the marketing for beverages place this product segment?

TT: Our core brand ethos is welcoming everybody to the party, whether that’s somebody who’s never experienced cannabis before or somebody who’s an old pro. That’s been one of our major points that we always try to stick to: We want people who are experiencing beverages when they’re at a barbecue not to have to go somewhere else and remove themselves from the party. They can stay there with it, with a beverage, and stand next to their friends who are having a beer or some other beverage and still be a part of the party and not have to actually excuse themselves. That’s a really interesting shift. Something that we really try to adopt and educate people on is that it allows you to stay in the social setting. It allows you to really enjoy a different alternative experience to just alcohol.

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.

Keef Brands Continues Expansion of Cannabis Beverage Segment: Q&A With CEO Travis Tharp

by

Cannabis beverages are becoming a more visible product category, particularly as dispensaries begin adding adequate cooler space for brands entering the space. For Keef Brands, which has been around for years, the evolution has been steady—moving through medical markets, allowing patients to become acquainted with the product, and then getting familiar with the burgeoning adult-use landscape in the U.S.

Keef Cola originated in Boulder, Colo., in 2010, with a keen eye to the many adaptive shifts that were coming in the cannabis market. Eventually, just based on how humans interact with one another, the market would embrace cannabinoid-infused beverages. With $2.9 million in U.S. sales in Q1, according to Headset, Keef Brands makes up a large part of what remains a small (but growing) market segment.

Travis Tharp was named CEO after serving as president and COO. Here, we spoke with Tharp about the state of the cannabis beverage segment and what we can expect next.

Eric Sandy: What’s the current scope of Keef Brands in the U.S.?

keef cola

 

Travis Tharp: We’re currently in seven states, plus Puerto Rico, and those are Colorado, California, Arizona, Oklahoma, Missouri, Maine and Ohio. We launched our three latest markets of Ohio, Maine and Missouri in the first quarter of 2021, and we’ve been very pleased with the acceptance that those people have welcomed us to in all of these states. We’ve had really great partners in all of these, because we have to work with a manufacturer in each area. You have to set up your entire ecosystem in each state, and we’ve been very fortunate to have some wonderful partners over the years. This latest group is no exception.

ES: How does Keef Brands navigates the differences between medical and adult-use markets?

TT: It’s a really good question because I think it speaks to the evolution of our company over the years. Keef was one of the original edible brands in Colorado, all the way back in 2010, and the first product lines were medical sodas at the 100-milligram level that were targeting medical patients. That was something our founder nailed, because he started working with the folks who were the early adopters—the evangelical people who wanted to be in the industry, who wanted to be a budtender, who wanted to use it for medicinal purposes. We were able to set up a really strong relationship with both consumers and retailers over the first three or four years of medical-only in Colorado, so that when it switched to adult-use and brought out our lower 10-milligram beverages, it was very warmly received.

We had some allies and support in the industry for us bringing out an adult-use option. I’ve seen that happen in a couple of different markets that we’ve gone into. And I think that’s something that we really take to heart. It’s a very significant part of our entry strategy—to take care of the medical patients and have an option for them, providing them multiple options, whether it’s something like the mocktails that are the sugary tasty beverages or something that’s more of a health-conscious, low-sugar, low-calorie option for other medical patients. Since we’ve been able to meet the market in these early stages, we’ve been able to build a really strong partnership with all the retailers and the customers. Being from Colorado and having a lot of people over the years associate a positive experience of coming out here with the brand has really helped us develop. When the new states would come on, you see the acceptance and the brand recognition is happening faster and at a higher rate than in the first couple of markets that we launched.

ES: Dosing is a big part of this conversation. How does Keef position its 10-milligram beverages and the idea of what “10 milligrams” might mean for customers?

TT: We always tell everyone that nobody reacts the exact same. Everyone needs to understand what their correct dosing is. We always subscribe to the “start low and go slow” adage. One of the benefits of beverages and the reason that people are starting to gravitate toward them versus other form factors is that when you drink a beverage, the uptake of THC happens sublingually versus going down and having to process through your stomach and your bladder. It really provides a consistent, sessionable experience that people are used to having with alcohol or something of that nature. You just don’t want people to have a negative experience when they’re trying the product.

In all of the states where we launched, we’ve been on a very aggressive education campaign. We’re in the very early stages of the life cycle of this industry. Look at the last two years, and beverage has gained a lot of from a units and sales perspective. It’s gained a lot, but it’s still a relatively small segment of the overall market with a lot of opportunity to grow. We work together with competitors to try to get the word out. The old “a rising tide lifts all ships” adage really applies in the beverage segment right now.

ES: I was going to ask about the state of the market. Beverages are a small slice of the pie right now, but they seem to be growing quickly.

TT: There’s been a good evolution of adoption of beverage. We always thought that social consumption lounges would be when beverages would start to take off. Ironically, it was during the pandemic—with people having a lot of time on at home—that they tried new products. We saw an acceleration of that, specifically, in the beverage category. You’ve seen some new entrants that are coming with very low-dose offerings, which I think is great. We address a couple of different segments of the market. We don’t address all of them currently.

We know that there’s room in the cooler—and making sure that the cooler actually exists in the retailers is something that’s been a shared endeavor and a shared challenge. Some of the original dispensaries were set up bodega-style. But you can see an evolution in the newer markets where they’re trying to adopt a different type of retail experience that incorporates a larger refrigerator, and that’s amazing,

ES: What’s the on-site consumption situation in the home state of Colorado?

TT: It been passed at the state level, and the cities are starting to implement it. It’s on the way. It’s not where California is as of yet, or some of the other states, but it has been passed and people are gearing up for it.

ES: There’s a lot of talk about “occasion-based consumption” in the industry. Where does the marketing for beverages place this product segment?

TT: Our core brand ethos is welcoming everybody to the party, whether that’s somebody who’s never experienced cannabis before or somebody who’s an old pro. That’s been one of our major points that we always try to stick to: We want people who are experiencing beverages when they’re at a barbecue not to have to go somewhere else and remove themselves from the party. They can stay there with it, with a beverage, and stand next to their friends who are having a beer or some other beverage and still be a part of the party and not have to actually excuse themselves. That’s a really interesting shift. Something that we really try to adopt and educate people on is that it allows you to stay in the social setting. It allows you to really enjoy a different alternative experience to just alcohol.

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.

Bright Green Corp. to Build $300M High-Tech Cannabis Manufacturing and Research Facility in New Mexico

by

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.

Professional instructors from Green Flower who are currently in the industry will be teaching the curriculum, which is essential to the university, as these individuals can teach from experience. 

While the university was working with Green Flower last fall to get the curriculum approved, the state began to send strong signals that legalization would likely happen in the spring, Frasciello said. “It just aligned really nicely that we were able to get everything approved within the university through our governance process, and then the state announced [legalization],” he said. 

Enrollment is currently open and all courses begin on June 28. Ever since the university released its first press release about it in April, the response has been great, he said. About half a dozen individuals have enrolled in the program and roughly 10 to 14 have inquired about it. 

Designing a program like this to educate individuals on the cannabis industry and prepare them for jobs in the field is essential, Frasciello said, especially as New York and neighboring states move to legalize cannabis. 

“Our mission here is to prepare individuals for success in whatever industry that they’re currently in or the industry or career that they want to move into—that’s our whole purpose here,” he said. “So, it was important for us to move into this opportunity because we want to be able to ensure that there are individuals in the industry who are informed, smart, capable, responsible and good practitioners.” 

The War on Drugs Has Been ‘an Absolute Failure of the Highest Order’: Q&A With Pennsylvania Lt. Gov. John Fetterman

by

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.

Professional instructors from Green Flower who are currently in the industry will be teaching the curriculum, which is essential to the university, as these individuals can teach from experience. 

While the university was working with Green Flower last fall to get the curriculum approved, the state began to send strong signals that legalization would likely happen in the spring, Frasciello said. “It just aligned really nicely that we were able to get everything approved within the university through our governance process, and then the state announced [legalization],” he said. 

Enrollment is currently open and all courses begin on June 28. Ever since the university released its first press release about it in April, the response has been great, he said. About half a dozen individuals have enrolled in the program and roughly 10 to 14 have inquired about it. 

Designing a program like this to educate individuals on the cannabis industry and prepare them for jobs in the field is essential, Frasciello said, especially as New York and neighboring states move to legalize cannabis. 

“Our mission here is to prepare individuals for success in whatever industry that they’re currently in or the industry or career that they want to move into—that’s our whole purpose here,” he said. “So, it was important for us to move into this opportunity because we want to be able to ensure that there are individuals in the industry who are informed, smart, capable, responsible and good practitioners.” 

Challenges with Process Scale Up in Cannabis/Hemp Extraction

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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

Construction drawings for a piece of process equipment.

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.

GMP compliant phytocannabinoid processing facility underconstruction.

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 29th, 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 Announces New Cannabis Specialty Leader

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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.

Bradley Rutt, senior vice president and U.S. cannabis specialty leader at HUB International

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.”