Eco Friendly CBD OIL

The Best Eco Friendly CBD Oil

Cannabis News

Green Thumb Industries and California's Cannabis-Infused Beverage Cann Announce Partnership to Expand Nationally

by

<![CDATA[

CHICAGO and VANCOUVER, British Columbia, March 03, 2021 – PRESS RELEASE – Green Thumb Industries, a cannabis consumer packaged goods company and owner of Rise Dispensaries, today announced an exclusive partnership with cannabis-infused beverage brand Cann to manufacture and distribute its line of cannabis-infused sparkling beverages beginning in Illinois this spring. Green Thumb and Cann will expand distribution to additional markets including New Jersey, which recently legalized adult-use cannabis sales.

“The cannabis beverage category is poised for growth. Consumers are increasingly entering the market seeking alternatives to alcohol with familiar consumption experiences,” said Green Thumb Founder and CEO Ben Kovler. “Cann sits squarely in this opportunity, delivers on the consumer need and complements our brand portfolio with entry into the beverage segment. What’s even better is cannabis drinks can offer a superior experience, fewer calories and no hangover compared to alcohol. We are investing in the space and in the Cann team and we couldn’t be more excited to bring California’s #1 cannabis beverage brand to Illinois and beyond.”

Cann’s social tonics are low in sugar and calories and contain no preservatives or artificial sweeteners. Each drink is made of all-natural juice (not from concentrate), herbs, organic agave nectar and micro-doses of cannabis CBD and THC extract designed to be similar in strength to a glass of wine or a light beer. Cann is available in three creative flavors: Lemon Lavender, Grapefruit Rosemary and Blood Orange Cardamom and are sold in 6-packs of 8 ounce cans.

The brand got its start in Venice, California, in 2019 and became a quick local favorite for those in Hollywood due to its appeal to the growing number of entertainers and media personalities looking for healthier alcohol substitutes that still come with a fun social buzz.

“There are a lot of people who want to incorporate cannabis into their lives recreationally without the fear of getting too high,” said Cann co-founder Luke Anderson. “Cann lets you rewrite the ‘bad edible experience’ you had in college and change your social drinking routine at the same time.”

Trends show that cannabis beverages are gaining in popularity faster than other cannabis categories. In California, cannabis beverage category sales grew nearly four times faster than total cannabis market sales between the period of January and December 2020. Over the same time period, Cann rose from fifth in market share to first with over 600% growth in sales (BDS Analytics).

RELATED: THC-Infused Tonics Find Their Place in Cannabis Beverage Market in 2020

“We’re ecstatic to partner with Green Thumb, the nation’s leading cannabis operator and brand innovator,” says Cann co-founder Jake Bullock. “We’re excited that their best-in-class management team believes in our vision to offer a superior alternative to alcohol. Cann social tonics create a refreshing, uplifting social buzz without alcohol’s negative effects. We believe that cannabis beverages will change the way people drink in this country – imagine drinking a few Canns instead of several beers, wine or cocktails and waking up the next day without a massive headache. We offer a much smarter, delicious choice.”

]]>

Thar Process Inc. Announces New Media for All SFC Systems

by

Last week, New Jersey Governor Phil Murphy ended a weeks-long legislative saga that saw cannabis legalization—supported by more than two in three voters in November—finally go into effect. On Feb. 22, Murphy signed a bill to legalize and another bill clarifying penalties for underage possession, a sticking point that had stalled the development of the legal industry. 

Stopping low-level cannabis arrests and moving forward on an initiative the state’s voters approved nearly four months ago is just the start. Those fighting for a fair industry in New Jersey say there’s still a long way to go to ensure the new state market helps correct the previous decades of biased law enforcement.

Racial disparity in New Jersey prohibition

Between 2010 and 2018, Black people were 3.5 times more likely to be arrested for cannabis across the state. In certain counties, that discrepancy shoots up to over 13. And according to the ACLU, the disparity has gotten worse over time—in 2000, Black people were arrested 2.2 times as often.

“New Jersey averaging 32,000 arrests a year for low-level, nonviolent, minor possession of cannabis—and 80% of those arrested were people who look like me—is not a fluke or happenstance,” said Leo Bridgewater, Director of Veterans Outreach for Minorities 4 Medical Marijuana (M4MM) and an advocate in the state’s effort for cannabis reform.

He and others involved in New Jersey’s legalization process, who spoke to Cannabis Business Times and Cannabis Dispensary via email, weighed in on how Garden State lawmakers should proceed from here on out to create an industry that can begin to compensate for many years of racially biased law enforcement.

What will it take for a fair industry?

Recent estimates from The New York Times project that legal cannabis will bring the state of New Jersey more than $125 million in annual revenue. In many other legalized states—from early-movers like Colorado to newcomers like Illinois—markets are dominated by white-owned businesses, who often control 80 to 90% of state industries.

“There have always been glaring social justice concerns and obvious inequity in the high number of arrests of minority residents. Now, finally, this is the time for it to stop,” said Assemblyman Jamel Holley in a statement to the media announcing the bill’s signing.

Proponents of an equitable industry say that New Jersey could end its long-running racial and socioeconomic disparity in cannabis with a few key steps:

Equity licenses

With varying degrees of success, states like Michigan and California have offered special licenses for people from cities and counties hit hardest by cannabis prohibition. Given the disparity in arrests between various counties of New Jersey, this approach is one option upcoming legal market. 

Matt Platkin, partner at Lowenstein Sandler and former chief counsel the governor, said the state intends to follow a similar strategy.

“In drafting this legislation, the governor and the legislature placed a heavy emphasis on those communities that were disproportionately affected by the criminalization of cannabis,” said Platkin. “Priority for new licenses will be given to applicants from those communities, as well as to individuals who reside in New Jersey. The legislation also seeks to issue at least 30% of all new licenses to minority, women or veteran-owned businesses.”

Bridgewater noted that the bill’s text includes the creation of an Office of Minority, Disabled Veterans, and Women Cannabis Business Development to help empower disadvantaged entrepreneurs who still want to participate in the industry. This office will be part of New Jersey’s Cannabis Regulatory Commission (CRC), which will oversee the state’s new industry and the way it creates standards for cannabis licensing.

Funding from tax revenue

Cannabis tax dollars could serve as a boon to state-level economies, many of which are still suffering under the fiscal strain wrought by the pandemic. California recently announced the state has brought in over $2 billion in tax revenue from the legal cannabis industry since the program launched in 2018.  

New Jersey’s cannabis tax structure begins with a 6.6% state sales tax, on top of which can be added a 2% tax for towns and cities. Under the new law, the CRC also has the option to implement a sliding excise tax earmarked for social equity causes. This unique structure varies from $10 to $60 per ounce depending on the retail cost of the product.

Home grow

For decades, supporters of home grow laws have argued that allowing people to grow their own cannabis is one of the easiest ways to ensure universal access. Late efforts to pass a separate bill to allow medical patients to grow were unsuccessful, making New Jersey one of the only states with adult-use and medical cannabis—but no home grow. State officials expressed fears it would keep money flowing into legacy cannabis markets and stall the growth of the legal industry, a claim dismissed by proponents.

“Just because you craft brew or have a pizza oven at home doesn’t mean you won’t grab a beer and a slice of pizza,” said Chirali Patel, a New Jersey-based attorney, cannabis entrepreneur and executive board member on the New Jersey State Bar’s Cannabis Law Committee. “Home grow is a basic right and certainly one for patients at a minimum.”

Looking ahead

Attention in the state’s developing cannabis industry will now shift to the formation of the CRC and the way it chooses to implement its rules and execute on its new mandate. Bridgewater, who predicted adult-use sales will begin in 12 to 18 months, also pointed out the importance of the personnel leading the state’s new cannabis agency. Dianna Houenou, former senior adviser to Murphy and policy counsel for the state’s ACLU chapter, will chair the CRC. Murphy announced the appointment of the final two members of the five-person commission last week.

Above all, cannabis legalization advocates are hoping it will help lead to additional reforms that continue addressing the longstanding racial disparities in New Jersey law enforcement. 

“The intentional targeting and tormenting of people and communities of color in this state has been a massive money maker for the prison industrial complex,” said Bridgewater. “Cannabis legalization only took away one tool out of a box filled with many others. Ending the targeting and tormenting of Black and brown communities for prison profits is how we truly begin to heal together as a state and nation.”

 

CannabizTeam Opens New Offices in Newark

by

<![CDATA[

NEWARK, N.J.,  March 2, 2021 – PRESS RELEASE – CannabizTeam, a cannabis-focused executive search and staffing firm, announced the opening of its new offices in Newark, New Jersey. Newark is CannabizTeam’s 10th office location in the U.S., joining recently opened offices in Denver, previously established branches in Boston, Chicago, Detroit, Dallas, Miami, Orlando and Santa Rosa, California, and the company headquarters in San Diego. 

“CannabizTeam is growing to accommodate the explosive growth of the cannabis industry and leverage talent in top cannabis markets across the country,” said Liesl Bernard, founder and CEO of CannabizTeam. “We expect to see tens of thousands of cannabis jobs created by New Jersey and its neighbors in the tristate area, and predict this developing market will further the case to legalize adult-use cannabis across the East Coast. We look forward to helping new and expanding cannabis companies alike connect with qualified talent that will up their competitive advantage and position them for success as the industry continues to evolve.” 

With the addition of the Newark offices, CannabizTeam now holds 10 offices in eight states across the U.S. Since its inception in 2016, CannabizTeam has matched thousands of top candidates from entry level to specialized C-suite leadership at the leading private and public cannabis companies in North America and Europe. Multi-state clients include TerrAscend, Justice Grown, Ascend Wellness Holdings, Jushi, LEEF Holdings, NewTropic and Benzinga.

“We engaged CannabizTeam executive search to help TerrAscend fill a CFO position and three other executive-level roles in the U.S. and Canada over the last 12 months,” said Jason Ackerman, CEO of TerrAscend, a leading North American cannabis operator with vertically integrated operations in Pennsylvania, New Jersey and California, and operating as a licensed producer in Canada. “We have been highly satisfied with CannabizTeam’s search capabilities and customer service. They evaluated a large number of candidates from inside and related industries, and the quality and depth of the candidates presented was exceptional. We are very pleased with the candidates we chose to hire as they were not only technically qualified, but they are also a great fit for our company’s culture.” 

Cannabis is officially America’s fastest-growing industry as the 2021 Leafly Jobs Report found that the U.S. cannabis industry now supports 321,000 full-time equivalent jobs, a 32% increase over the previous year. As cannabis legalization continues to spread and demand for qualified talent continues to increase, CannabizTeam plans to continue its expansion initiative to meet these needs.

To learn more about CannabizTeam, visit CannabizTeam.com. 

]]>

BDSA Reports Global Cannabis Sales Exceeded $21 Billion in 2020, Forecasts $55.9 Billion by 2026

by

When she worked in the fields of natural products and dietary supplements, policy attorney Amber Littlejohn started doing some work in the hemp and CBD space. And not only for that reason, the career change to serve as senior policy adviser for the Minority Cannabis Business Association (MCBA) in some ways placed her in a comparable atmosphere.

The cannabis and hemp markets are similar to the natural products and dietary supplement industries, Littlejohn said, because all of them are “heavily regulated,” “emerging” and “embattled.”

Photo courtesy of Amber Littlejohn

Amber Littlejohn

“Another really significant overlap [is that] while there are big players, innovation and culture around the products are really driven by small companies,” she said. “And I wanted to make sure that as we’re growing the cannabis industry that there are adequate opportunities for small and especially small minority businesses.”

Littlejohn has now been with MCBA for almost two years, first working on its federal policy program as senior policy adviser, then taking the helm as executive director this past November.

“Our leadership has done an extraordinary job of creating policies and building the reputation of the organization,” Littlejohn said of MCBA’s work. “And so, now, we really want to leverage that to be a strong resource for our community, both in providing the resources that people need to enter and succeed in the industry, as well as driving policy around the country.”

In an interview with Cannabis Business Times, Cannabis Dispensary and Hemp Grower, Littlejohn expands on the importance of strengthening small businesses and businesses owned by people of color—and how it can be done.

This interview has been edited for length and clarity.

 

Patrick Williams: What are you currently most excited about that’s going on at MCBA?

Amber Littlejohn: I am most excited about our growing ability to engage a broader cross-section of our membership and community. We are seeing new opportunities through committees and advisory boards to be able to really leverage the voices and have the voices of both operators and community members become a more meaningful part of the discussion. So often around the country, the voices of minority operators are absent in the discussion. And so, we want to make sure that that’s heard. The large corporate interests—the multi-state operators—do a great job of advocating for their interests. The criminal justice and social justice activists have been doing this for quite some time and are great at advocating for the needs of the community in that regard. But we really want to make sure that economic justice is part of the discussion and that as we are … building any sort of a functioning legal cannabis framework that equity is a cornerstone of that and that equity is inclusive of policies that create and sustain opportunities for small, minority-owned businesses.

 

PW: Could you talk about how the challenges and opportunities surrounding representation and social equity compare when you’re looking at both the state-legal market and the hemp market?

AL: Some of the ways that they’re similar is that there is a gigantic opportunity and resource gap between small minority businesses and some of the larger operators. When you are entering a heavily regulated, capital-intensive industry, there is a gigantic learning curve in terms of making the connections you need to within the supply chain, the technical compliance issues, and even just some of the foundational business knowledge that in the communities that have been most impacted by prohibition are not always there or accessible. And I would say that carries through to the hemp industry as well. I would say the one major difference there is that while access to capital is an issue in the hemp industry, it is an extraordinary issue when it comes to the cannabis industry and to federal prohibition on lending to cannabis businesses.

 

PW: In states where cannabis is fully legal and state-legal programs are set up, could you talk about what social equity programs are doing right and what they’re doing wrong?

AL: One thing that’s happening the right way is that around the country, we are definitely seeing that there is a commitment to equity being a part of any legal framework. And that’s promising, and that’s heartening. I feel one of the biggest challenges, though, is ensuring that the language that’s included and the provisions that are put forth are truly actionable and meaningful. Social equity language can sound good, but if there isn’t funding, if there are extraordinary regulatory hurdles baked into either the qualification or the framework itself, that can yield results that are inequitable. Again, another issue is going to be access to capital, access to properties and real estate, zoning laws—all of these things are hurdles that need to be addressed as we’re going through these frameworks if we want the end result to be equitable and not just the language in the law.

 

PW: Why don’t we see more social equity programs in medical-only states?

AL: So, that’s interestingly enough something that we’re looking at in the state of Virginia, and looking at the possibility of expanding the medical program there with a focus on social equity and small business. [Why] I don’t think we see more of that is that—again, this is baked into the regulations of many medical programs: a requirement to create hurdles that are insurmountable for all small businesses, especially minority-owned small businesses.

So, we want to make sure that when we’re looking at medical programs—either new medical programs [or existing ones]—that they are ensuring that there are opportunities created within that framework that are accessible and sustainable. A good example is extraordinarily high canopy minimums that require tens of thousands of dollars in startup capital. … Also, most states have … medical programs [that] have limitations … [on] who can operate that exclude some of the individuals that have been most impacted by prohibition.

I really do think it’s important that as we are going through the legalization process, that in addition to expanding the medical program—or expanding medical programs throughout the country with an eye towards equity and small business—that we’re also reevaluating existing medical programs to provide opportunity, because what we’re seeing is a push toward co-location of adult-use licenses with medical operators. And this can have—depending on the market, this could have a very [big] impact from completely consuming the market and leaving little for anyone else, as we see in Arizona, to potentially providing the opportunity for medical operators to incubate or support small minority businesses. So, again, it’s something that absolutely has to be revisited because we don’t want to see non-diverse medical operators control any market.

 

PW: Did Americans’ increased outspokenness about systemic racism and police brutality last year shift the focus of the cannabis and hemp industries at all—or highlight how focuses should be shifted—to better suit the needs of people of color?

AL: Yeah, absolutely. We had started to see a shift before that in some circles. But as of last year, we really have seen a recommitment and a recognition that this can’t move forward without equity being a strong element of the program. Last year, MCBA worked with the U.S. Hemp Roundtable to create the Minority Empowerment Committee there, which was an extraordinary step for the hemp industry, in both recognizing its own history as an industry and the need to move forward with a greater focus on diversity. So, we’ve done, again, some great work, both in bringing some new … programming and even shifting the policy priorities of the hemp industry to focus on issues like the drug felony exclusion that’s in the 2018 Farm Bill.

 

PW: Also last year, you joined the board of the U.S. Hemp Authority. Are you working with them on issues of representation as well? 

AL: The U.S. Hemp Authority focuses primarily on standards-setting for the industry. Regulatory compliance and having the ability to have guidance and support in creating safe and effective products is something that is necessary for all businesses. But when it comes to the ability to navigate a crowded market, we want to make sure that we are making accessible to smaller businesses the advantage of third-party certification, [for them] to be able to stand out in that industry, so definitely wanting to reach a broader audience to provide greater understanding on the labyrinth of compliance. We had some individuals from the Hemp Authority participate in some educational events and really helping to better inform the community on [the] … framework that we have for hemp.

 

PW: What types of policy and funding do you feel need to be built into a federal cannabis legalization bill so that legalization helps repair the harms of prohibition?

AL: We need to … incentivize [government] to create frameworks that are supportive and inclusive of the communities that have been most impacted by the war on drugs. We also want to see a significant amount of the revenues directed back into the communities in ways that are beyond just the industry, but working at restoring some of these generational [funds that address] … prohibition and the incarceration that surrounded prohibition. It’s also really necessary to take a look at the framework itself that’s created because again, if you’re excluding from the industry individuals that have been most impacted, that is an unacceptable result. We need to make sure that we are able to [assign] appropriate regulatory burdens to small businesses so that, again, small businesses and small minority-owned businesses are just not buried in costly and unnecessary regulations.

 

PW: We have heard that nonprofits have been compelled to pay taxes in the cannabis industry. How can that be remedied?

AL: So, in 2018, [the government] passed a rule that any organizations that advocate for the cannabis industry are not able to receive a determination letter from the IRS, which means that we can’t get federal nonprofit status. There are some organizations that were grandfathered in, but at that time, MCBA was not officially recognized as a federal nonprofit. So, this means that older, established organizations that had previously completed the [registration] process can advocate, and organizations that advocate against the cannabis industry can receive federal nonprofit status. But organizations like MCBA or any of the newer, emerging social equity organizations, cannot get those same protections. So, it leaves us, firstly, paying taxes on what we raise. And then additionally, it limits contributions from organizations that are looking for opportunities to get to actually federally [recognized] nonprofit [status]. So, it does limit the growth of organizations like ours. We are of the mind that it is pretty clearly unconstitutional, given the fact that it only keeps from nonprofit status organizations that are advocating for, not organizations that are advocating against, [cannabis].

 

PW: What can the cannabis industry do to honor Black history and the history of people of color throughout the entire year and recognize how Black history has led to where we are today? (This interview was conducted in February, Black History Month.)

AL: It’s important to realize that equity is woven throughout everything that we do. Equity is not just D&I [diversity and inclusion]. It is not just a statement that you’re making on social media. And it’s not just narrow, one-off initiatives. It is woven through your practices from seed to sale and beyond. It is your supply chain. It is how you are reinvesting money. It’s about policy. And it’s important that when, especially the larger companies are moving throughout markets and communities that they’re understanding how the policies that they are supporting are going to impact communities. And so, if you’re looking at [supporting] monopolies, that is not promoting equity.

If you are supporting a system or a framework that doesn’t have meaningful opportunities for communities of color, you are not actually supporting and creating equity. If there is not community reinvestment, if you are not focused on ensuring that alongside legalization comes the restoration of communities, that’s not true equity. So, equity needs to be a part of all decision-making, from, again, your events and DEI [diversity, equity and inclusion] policy to your regulatory policy. And so, it’s important that industry is looking for Black voices and voices of color, and representation, throughout the company, and not just in departments that are handling either community outreach or DEI.

New Jersey Finally Legalized Cannabis. What’s Next for Equity in the State’s Industry?

by

When she worked in the fields of natural products and dietary supplements, policy attorney Amber Littlejohn started doing some work in the hemp and CBD space. And not only for that reason, the career change to serve as senior policy adviser for the Minority Cannabis Business Association (MCBA) in some ways placed her in a comparable atmosphere.

The cannabis and hemp markets are similar to the natural products and dietary supplement industries, Littlejohn said, because all of them are “heavily regulated,” “emerging” and “embattled.”

Photo courtesy of Amber Littlejohn

Amber Littlejohn

“Another really significant overlap [is that] while there are big players, innovation and culture around the products are really driven by small companies,” she said. “And I wanted to make sure that as we’re growing the cannabis industry that there are adequate opportunities for small and especially small minority businesses.”

Littlejohn has now been with MCBA for almost two years, first working on its federal policy program as senior policy adviser, then taking the helm as executive director this past November.

“Our leadership has done an extraordinary job of creating policies and building the reputation of the organization,” Littlejohn said of MCBA’s work. “And so, now, we really want to leverage that to be a strong resource for our community, both in providing the resources that people need to enter and succeed in the industry, as well as driving policy around the country.”

In an interview with Cannabis Business Times, Cannabis Dispensary and Hemp Grower, Littlejohn expands on the importance of strengthening small businesses and businesses owned by people of color—and how it can be done.

This interview has been edited for length and clarity.

 

Patrick Williams: What are you currently most excited about that’s going on at MCBA?

Amber Littlejohn: I am most excited about our growing ability to engage a broader cross-section of our membership and community. We are seeing new opportunities through committees and advisory boards to be able to really leverage the voices and have the voices of both operators and community members become a more meaningful part of the discussion. So often around the country, the voices of minority operators are absent in the discussion. And so, we want to make sure that that’s heard. The large corporate interests—the multi-state operators—do a great job of advocating for their interests. The criminal justice and social justice activists have been doing this for quite some time and are great at advocating for the needs of the community in that regard. But we really want to make sure that economic justice is part of the discussion and that as we are … building any sort of a functioning legal cannabis framework that equity is a cornerstone of that and that equity is inclusive of policies that create and sustain opportunities for small, minority-owned businesses.

 

PW: Could you talk about how the challenges and opportunities surrounding representation and social equity compare when you’re looking at both the state-legal market and the hemp market?

AL: Some of the ways that they’re similar is that there is a gigantic opportunity and resource gap between small minority businesses and some of the larger operators. When you are entering a heavily regulated, capital-intensive industry, there is a gigantic learning curve in terms of making the connections you need to within the supply chain, the technical compliance issues, and even just some of the foundational business knowledge that in the communities that have been most impacted by prohibition are not always there or accessible. And I would say that carries through to the hemp industry as well. I would say the one major difference there is that while access to capital is an issue in the hemp industry, it is an extraordinary issue when it comes to the cannabis industry and to federal prohibition on lending to cannabis businesses.

 

PW: In states where cannabis is fully legal and state-legal programs are set up, could you talk about what social equity programs are doing right and what they’re doing wrong?

AL: One thing that’s happening the right way is that around the country, we are definitely seeing that there is a commitment to equity being a part of any legal framework. And that’s promising, and that’s heartening. I feel one of the biggest challenges, though, is ensuring that the language that’s included and the provisions that are put forth are truly actionable and meaningful. Social equity language can sound good, but if there isn’t funding, if there are extraordinary regulatory hurdles baked into either the qualification or the framework itself, that can yield results that are inequitable. Again, another issue is going to be access to capital, access to properties and real estate, zoning laws—all of these things are hurdles that need to be addressed as we’re going through these frameworks if we want the end result to be equitable and not just the language in the law.

 

PW: Why don’t we see more social equity programs in medical-only states?

AL: So, that’s interestingly enough something that we’re looking at in the state of Virginia, and looking at the possibility of expanding the medical program there with a focus on social equity and small business. [Why] I don’t think we see more of that is that—again, this is baked into the regulations of many medical programs: a requirement to create hurdles that are insurmountable for all small businesses, especially minority-owned small businesses.

So, we want to make sure that when we’re looking at medical programs—either new medical programs [or existing ones]—that they are ensuring that there are opportunities created within that framework that are accessible and sustainable. A good example is extraordinarily high canopy minimums that require tens of thousands of dollars in startup capital. … Also, most states have … medical programs [that] have limitations … [on] who can operate that exclude some of the individuals that have been most impacted by prohibition.

I really do think it’s important that as we are going through the legalization process, that in addition to expanding the medical program—or expanding medical programs throughout the country with an eye towards equity and small business—that we’re also reevaluating existing medical programs to provide opportunity, because what we’re seeing is a push toward co-location of adult-use licenses with medical operators. And this can have—depending on the market, this could have a very [big] impact from completely consuming the market and leaving little for anyone else, as we see in Arizona, to potentially providing the opportunity for medical operators to incubate or support small minority businesses. So, again, it’s something that absolutely has to be revisited because we don’t want to see non-diverse medical operators control any market.

 

PW: Did Americans’ increased outspokenness about systemic racism and police brutality last year shift the focus of the cannabis and hemp industries at all—or highlight how focuses should be shifted—to better suit the needs of people of color?

AL: Yeah, absolutely. We had started to see a shift before that in some circles. But as of last year, we really have seen a recommitment and a recognition that this can’t move forward without equity being a strong element of the program. Last year, MCBA worked with the U.S. Hemp Roundtable to create the Minority Empowerment Committee there, which was an extraordinary step for the hemp industry, in both recognizing its own history as an industry and the need to move forward with a greater focus on diversity. So, we’ve done, again, some great work, both in bringing some new … programming and even shifting the policy priorities of the hemp industry to focus on issues like the drug felony exclusion that’s in the 2018 Farm Bill.

 

PW: Also last year, you joined the board of the U.S. Hemp Authority. Are you working with them on issues of representation as well? 

AL: The U.S. Hemp Authority focuses primarily on standards-setting for the industry. Regulatory compliance and having the ability to have guidance and support in creating safe and effective products is something that is necessary for all businesses. But when it comes to the ability to navigate a crowded market, we want to make sure that we are making accessible to smaller businesses the advantage of third-party certification, [for them] to be able to stand out in that industry, so definitely wanting to reach a broader audience to provide greater understanding on the labyrinth of compliance. We had some individuals from the Hemp Authority participate in some educational events and really helping to better inform the community on [the] … framework that we have for hemp.

 

PW: What types of policy and funding do you feel need to be built into a federal cannabis legalization bill so that legalization helps repair the harms of prohibition?

AL: We need to … incentivize [government] to create frameworks that are supportive and inclusive of the communities that have been most impacted by the war on drugs. We also want to see a significant amount of the revenues directed back into the communities in ways that are beyond just the industry, but working at restoring some of these generational [funds that address] … prohibition and the incarceration that surrounded prohibition. It’s also really necessary to take a look at the framework itself that’s created because again, if you’re excluding from the industry individuals that have been most impacted, that is an unacceptable result. We need to make sure that we are able to [assign] appropriate regulatory burdens to small businesses so that, again, small businesses and small minority-owned businesses are just not buried in costly and unnecessary regulations.

 

PW: We have heard that nonprofits have been compelled to pay taxes in the cannabis industry. How can that be remedied?

AL: So, in 2018, [the government] passed a rule that any organizations that advocate for the cannabis industry are not able to receive a determination letter from the IRS, which means that we can’t get federal nonprofit status. There are some organizations that were grandfathered in, but at that time, MCBA was not officially recognized as a federal nonprofit. So, this means that older, established organizations that had previously completed the [registration] process can advocate, and organizations that advocate against the cannabis industry can receive federal nonprofit status. But organizations like MCBA or any of the newer, emerging social equity organizations, cannot get those same protections. So, it leaves us, firstly, paying taxes on what we raise. And then additionally, it limits contributions from organizations that are looking for opportunities to get to actually federally [recognized] nonprofit [status]. So, it does limit the growth of organizations like ours. We are of the mind that it is pretty clearly unconstitutional, given the fact that it only keeps from nonprofit status organizations that are advocating for, not organizations that are advocating against, [cannabis].

 

PW: What can the cannabis industry do to honor Black history and the history of people of color throughout the entire year and recognize how Black history has led to where we are today? (This interview was conducted in February, Black History Month.)

AL: It’s important to realize that equity is woven throughout everything that we do. Equity is not just D&I [diversity and inclusion]. It is not just a statement that you’re making on social media. And it’s not just narrow, one-off initiatives. It is woven through your practices from seed to sale and beyond. It is your supply chain. It is how you are reinvesting money. It’s about policy. And it’s important that when, especially the larger companies are moving throughout markets and communities that they’re understanding how the policies that they are supporting are going to impact communities. And so, if you’re looking at [supporting] monopolies, that is not promoting equity.

If you are supporting a system or a framework that doesn’t have meaningful opportunities for communities of color, you are not actually supporting and creating equity. If there is not community reinvestment, if you are not focused on ensuring that alongside legalization comes the restoration of communities, that’s not true equity. So, equity needs to be a part of all decision-making, from, again, your events and DEI [diversity, equity and inclusion] policy to your regulatory policy. And so, it’s important that industry is looking for Black voices and voices of color, and representation, throughout the company, and not just in departments that are handling either community outreach or DEI.

North Dakota House Approves Adult-Use Cannabis Bill

by

When she worked in the fields of natural products and dietary supplements, policy attorney Amber Littlejohn started doing some work in the hemp and CBD space. And not only for that reason, the career change to serve as senior policy adviser for the Minority Cannabis Business Association (MCBA) in some ways placed her in a comparable atmosphere.

The cannabis and hemp markets are similar to the natural products and dietary supplement industries, Littlejohn said, because all of them are “heavily regulated,” “emerging” and “embattled.”

Photo courtesy of Amber Littlejohn

Amber Littlejohn

“Another really significant overlap [is that] while there are big players, innovation and culture around the products are really driven by small companies,” she said. “And I wanted to make sure that as we’re growing the cannabis industry that there are adequate opportunities for small and especially small minority businesses.”

Littlejohn has now been with MCBA for almost two years, first working on its federal policy program as senior policy adviser, then taking the helm as executive director this past November.

“Our leadership has done an extraordinary job of creating policies and building the reputation of the organization,” Littlejohn said of MCBA’s work. “And so, now, we really want to leverage that to be a strong resource for our community, both in providing the resources that people need to enter and succeed in the industry, as well as driving policy around the country.”

In an interview with Cannabis Business Times, Cannabis Dispensary and Hemp Grower, Littlejohn expands on the importance of strengthening small businesses and businesses owned by people of color—and how it can be done.

This interview has been edited for length and clarity.

 

Patrick Williams: What are you currently most excited about that’s going on at MCBA?

Amber Littlejohn: I am most excited about our growing ability to engage a broader cross-section of our membership and community. We are seeing new opportunities through committees and advisory boards to be able to really leverage the voices and have the voices of both operators and community members become a more meaningful part of the discussion. So often around the country, the voices of minority operators are absent in the discussion. And so, we want to make sure that that’s heard. The large corporate interests—the multi-state operators—do a great job of advocating for their interests. The criminal justice and social justice activists have been doing this for quite some time and are great at advocating for the needs of the community in that regard. But we really want to make sure that economic justice is part of the discussion and that as we are … building any sort of a functioning legal cannabis framework that equity is a cornerstone of that and that equity is inclusive of policies that create and sustain opportunities for small, minority-owned businesses.

 

PW: Could you talk about how the challenges and opportunities surrounding representation and social equity compare when you’re looking at both the state-legal market and the hemp market?

AL: Some of the ways that they’re similar is that there is a gigantic opportunity and resource gap between small minority businesses and some of the larger operators. When you are entering a heavily regulated, capital-intensive industry, there is a gigantic learning curve in terms of making the connections you need to within the supply chain, the technical compliance issues, and even just some of the foundational business knowledge that in the communities that have been most impacted by prohibition are not always there or accessible. And I would say that carries through to the hemp industry as well. I would say the one major difference there is that while access to capital is an issue in the hemp industry, it is an extraordinary issue when it comes to the cannabis industry and to federal prohibition on lending to cannabis businesses.

 

PW: In states where cannabis is fully legal and state-legal programs are set up, could you talk about what social equity programs are doing right and what they’re doing wrong?

AL: One thing that’s happening the right way is that around the country, we are definitely seeing that there is a commitment to equity being a part of any legal framework. And that’s promising, and that’s heartening. I feel one of the biggest challenges, though, is ensuring that the language that’s included and the provisions that are put forth are truly actionable and meaningful. Social equity language can sound good, but if there isn’t funding, if there are extraordinary regulatory hurdles baked into either the qualification or the framework itself, that can yield results that are inequitable. Again, another issue is going to be access to capital, access to properties and real estate, zoning laws—all of these things are hurdles that need to be addressed as we’re going through these frameworks if we want the end result to be equitable and not just the language in the law.

 

PW: Why don’t we see more social equity programs in medical-only states?

AL: So, that’s interestingly enough something that we’re looking at in the state of Virginia, and looking at the possibility of expanding the medical program there with a focus on social equity and small business. [Why] I don’t think we see more of that is that—again, this is baked into the regulations of many medical programs: a requirement to create hurdles that are insurmountable for all small businesses, especially minority-owned small businesses.

So, we want to make sure that when we’re looking at medical programs—either new medical programs [or existing ones]—that they are ensuring that there are opportunities created within that framework that are accessible and sustainable. A good example is extraordinarily high canopy minimums that require tens of thousands of dollars in startup capital. … Also, most states have … medical programs [that] have limitations … [on] who can operate that exclude some of the individuals that have been most impacted by prohibition.

I really do think it’s important that as we are going through the legalization process, that in addition to expanding the medical program—or expanding medical programs throughout the country with an eye towards equity and small business—that we’re also reevaluating existing medical programs to provide opportunity, because what we’re seeing is a push toward co-location of adult-use licenses with medical operators. And this can have—depending on the market, this could have a very [big] impact from completely consuming the market and leaving little for anyone else, as we see in Arizona, to potentially providing the opportunity for medical operators to incubate or support small minority businesses. So, again, it’s something that absolutely has to be revisited because we don’t want to see non-diverse medical operators control any market.

 

PW: Did Americans’ increased outspokenness about systemic and racism and police brutality last year shift the focus of the cannabis and hemp industries at all—or highlight how focuses should be shifted—to better suit the needs of people of color?

AL: Yeah, absolutely. We had started to see a shift before that in some circles. But as of last year, we really have seen a recommitment and a recognition that this can’t move forward without equity being a strong element of the program. Last year, MCBA worked with the U.S. Hemp Roundtable to create the Minority Empowerment Committee there, which was an extraordinary step for the hemp industry, in both recognizing its own history as an industry and the need to move forward with a greater focus on diversity. So, we’ve done, again, some great work, both in bringing some new … programming and even shifting the policy priorities of the hemp industry to focus on issues like the drug felony exclusion that’s in the 2018 Farm Bill.

 

PW: Also last year, you joined the board of the U.S. Hemp Authority. Are you working with them on issues of representation as well? 

AL: The U.S. Hemp Authority focuses primarily on standards-setting for the industry. Regulatory compliance and having the ability to have guidance and support in creating safe and effective products is something that is necessary for all businesses. But when it comes to the ability to navigate a crowded market, we want to make sure that we are making accessible to smaller businesses the advantage of third-party certification, [for them] to be able to stand out in that industry, so definitely wanting to reach a broader audience to provide greater understanding on the labyrinth of compliance. We had some individuals from the Hemp Authority participate in some educational events and really helping to better inform the community on [the] … framework that we have for hemp.

 

PW: What types of policy and funding do you feel need to be built into a federal cannabis legalization bill so that legalization helps repair the harms of prohibition?

AL: We need to … incentivize [government] to create frameworks that are supportive and inclusive of the communities that have been most impacted by the war on drugs. We also want to see a significant amount of the revenues directed back into the communities in ways that are beyond just the industry, but working at restoring some of these generational [funds that address] … prohibition and the incarceration that surrounded prohibition. It’s also really necessary to take a look at the framework itself that’s created because again, if you’re excluding from the industry individuals that have been most impacted, that is an unacceptable result. We need to make sure that we are able to [assign] appropriate regulatory burdens to small businesses so that, again, small businesses and small minority-owned businesses are just not buried in costly and unnecessary regulations.

 

PW: We have heard that nonprofits have been compelled to pay taxes in the cannabis industry. How can that be remedied?

AL: So, in 2018, [the government] passed a rule that any organizations that advocate for the cannabis industry are not able to receive a determination letter from the IRS, which means that we can’t get federal nonprofit status. There are some organizations that were grandfathered in, but at that time, MCBA was not officially recognized as a federal nonprofit. So, this means that older, established organizations that had previously completed the [registration] process can advocate, and organizations that advocate against the cannabis industry can receive federal nonprofit status. But organizations like MCBA or any of the newer, emerging social equity organizations, cannot get those same protections. So, it leaves us, firstly, paying taxes on what we raise. And then additionally, it limits contributions from organizations that are looking for opportunities to get to actually federally [recognized] nonprofit [status]. So, it does limit the growth of organizations like ours. We are of the mind that it is pretty clearly unconstitutional, given the fact that it only keeps from nonprofit status organizations that are advocating for, not organizations that are advocating against, [cannabis].

 

PW: What can the cannabis industry do to honor Black history and the history of people of color throughout the entire year and recognize how Black history has led to where we are today? (This interview was conducted in February, Black History Month.)

AL: It’s important to realize that equity is woven throughout everything that we do. Equity is not just D&I [diversity and inclusion]. It is not just a statement that you’re making on social media. And it’s not just narrow, one-off initiatives. It is woven through your practices from seed to sale and beyond. It is your supply chain. It is how you are reinvesting money. It’s about policy. And it’s important that when, especially the larger companies are moving throughout markets and communities that they’re understanding how the policies that they are supporting are going to impact communities. And so, if you’re looking at [supporting] monopolies, that is not promoting equity.

If you are supporting a system or a framework that doesn’t have meaningful opportunities for communities of color, you are not actually supporting and creating equity. If there is not community reinvestment, if you are not focused on ensuring that alongside legalization comes the restoration of communities, that’s not true equity. So, equity needs to be a part of all decision-making, from, again, your events and DEI [diversity, equity and inclusion] policy to your regulatory policy. And so, it’s important that industry is looking for Black voices and voices of color, and representation, throughout the company, and not just in departments that are handling either community outreach or DEI.

Jane & Leafly Join Forces: An Interview with Socrates Rosenfeld, CEO of Jane

by

As retailers accept the end of in-store shopping as we know it and start adjusting to e-commerce, an improved and more involved customer experience will be imperative for an e-retailer to grow, let alone stay afloat.

Jane recently announced a strategic partnership that combines Jane’s best-in-class product catalog and business tools with Leafly’s consumer marketplace and reach. Together, the companies will build solutions that empower cannabis retailers with fast and simple online shopping experiences that increase consumer purchase behavior. The partnership will seek to help instill consumer trust in the online shopping experience, build stronger customer acquisition tools for retailers, and help dispensaries grow their ecommerce capabilities with consistency and automation.

This strategic partnership comes after a massive year of growth for both Jane and Leafly. In the past year, Jane powered over 17 million orders and $2 billion in cannabis sales, while Leafly has seen more than 4,500 cannabis retailers in North America leverage their platform to bring new customers through the door.

Socrates Rosenfeld, CEO of Jane

We spoke with Socrates Rosenfeld, CEO of Jane to learn more about e-commerce and online marketplaces and how Jane and Leafly came together as partners, rather than competitors. Prior to Jane, Socrates was an Apache helicopter pilot for the US Army later transitioning to consulting with McKinsey.

Aaron Green: Socrates, thanks for taking the time today. What trends are you seeing and following in the industry?

Socrates Rosenfeld: Always happy to chat about the industry. Thanks for having me.

If you were to ask me that question a year ago, I’d say having a digital footprint was something that would give a dispensary or a brand a nice advantage. Today, it’s a must-have for survival. Where it used to be one or the other; online or offline, now we are able to merge the two by replicating a physical store into a digitized form to extend its reach far beyond its walls.

As things become more digitized, information becomes more necessary to run operations. With that we are able to meet the expectations of the consumers who are accustomed to convenience and curation. The omnichannel experience provides the best of both worlds. Access and ease of search with the ability to pick up or have the product delivered the same day from a locally owned and run business.

Reviews are one of the most important aspects of this unification of online and offline. It is something that is lost in solely offline purchases, that we’re now able to collect and organize. This product information allows us to provide customers the purchasing power to make a well-informed decision.

At Jane, we believe it is possible to create wins for the dispensaries, brands and customers – and digitization creates the opportunity for that to happen. I think there’s no better incubator in the world than the cannabis industry to prove that online and offline retail can work in harmony.

Aaron: Jane is the largest e-commerce platform in North American cannabis and Leafly is the largest marketplace in North American cannabis. What’s the difference between an e-commerce platform and a marketplace?

Socrates: Great question. There is definitely some overlap between the two, which is why it makes so much sense for us to collaborate. Ultimately though, our focus and expertise are different. Jane’s ecommerce platform serves as the industry’s digital infrastructure that pushes digital products across various order origination points like a dispensary’s own website, a brand’s own website and now, Leafly’s marketplace. Paired with Leafly’s industry-leading content and market information, together we can complete the entire online cannabis shopping experience – from product discovery through order fulfillment.

Aaron: At first glance, one might think that Jane and Leafly are competitors. How did you see it differently? And how did this partnership come about?

Socrates: Not only is our tech complementary, but we are aligned on mission – to empower consumers, dispensaries and brands with the integrity of the plant in mind.

We want to make it simple for consumers to reach the products that will be most helpful for them. We want to make it possible for dispensaries and brands, regardless of their size, to be able to compete on an even playing field.

It all comes back to being good stewards of the industry. Education and access create a healthy demand for a diverse range of products. That means that the plant stays in the hands of many – safeguarding it from homogenization.

Aaron: How do consumers benefit from the partnership?

Socrates: It really is all about bringing this industry in line with any other retail vertical and meeting the customer where they are. It unlocks more avenues for customers to discover products and access a vast catalog of information and verified customer reviews. Bottom line, this partnership makes shopping for cannabis as simple as shopping online for everything else in the world, while also ensuring the success of the sellers.

Aaron: When you say the sellers, are you talking about the dispensary or the brands?

Socrates: Both, we want to provide value for the entire ecosystem. We can do that directly for dispensaries and brands by enabling an automated ecommerce platform that they can use to power their own website. At Jane, we know that technology can unlock value for everyone, where it is not a zero-sum game and success for one means success for the other. With Jane, both the dispensaries and the brands win.

Aaron: What kind of regulatory challenges do you face through the partnership?

Socrates: There are no real regulatory challenges for the partnership itself. The entire industry operates under regulatory challenges, but it is those regulations that have been the catalyst for innovation. I see the opportunity for legal online payments and national product distribution to play a large role in shaping the industry soon, and a partnership like this will ensure a seamless transition for the industry as things continue to evolve.

Aaron: Final question. What are you personally interested in learning more about?

Socrates: I’ve always been curious about disruptive models. The companies, not just in tech, but any company that has set out to do things differently and has been able to hold true to a vision. That’s what interests me, and I think I will always have something to learn and draw inspiration from. 

Aaron: Excellent, that’s the end of the interview, Socrates!

Socrates: Thanks, Aaron.

LeafLink Partners With Last Prisoner Project to Support Cannabis Criminal Justice Reform

by

Shannon Price | Adobe Stock

Job growth in the cannabis sector doesn’t appear to be slowing down anytime soon.

The legal cannabis industry now supports 321,000 workers in the United States, with 77,000-plus jobs created in 2020, or roughly a 32% increase across the 37 states and the District of Columbia with medical or adult-use markets, according to a report by Leafly.

While cannabis companies were not immune to layoffs and furloughs during the onset of COVID-19, as job growth experienced a lull between March and August, hiring picked back up, and many operations thrived during the pandemic. The year-over-year growth showed that the cannabis sector created jobs at a faster rate than almost any other American industry, according to Leafly.

James Yagielo, the CEO of HempStaff, a recruiting and training company based in Miami that specializes in the cannabis and hemp industries, said the 32% increase reported by Leafly did not leave him open-mouthed. 

“It was not really that surprising because it was essential business, so that really narrowed down a lot of the different industries because a lot of industries are not essential,” he said. “So, I think that may have definitely skewed the numbers in cannabis’ favor. But, additionally, even though last year was a horrendous year for most people, our recruiting numbers pretty much matched 2019. We didn’t get the increase we expected, but we didn’t really get decrease either.”

When September 2020 hit, job growth picked back up in the sector, Yagielo said.

“We’ve kind of had a boom, say, post Labor Day in the cannabis industry in hiring that to [this] day is still going on,” he said. “So, while we did have that few-months lull, it really picked back up once they realized that the cannabis industry was not going to be hurt by the pandemic.”

The 32% increase in job growth in the cannabis sector came at a time when the broader U.S. economy shrank by 3.5% in 2020, according to the Bureau of Economic Analysis.

Although the cannabis industry may have appeared recession-proof to some, Vangst, a Denver-based recruiting platform that connects cannabis job seekers with employees, reported 80% of its clients had to lay off or furlough employees when stay-at-home orders rolled out at the onset of COVID-19, CEO Karson Humiston said.

“Nobody knew how the cannabis industry would respond to really its first economic downturn,” she said. “And, at the end of the day, cannabis was deemed essential and businesses did well, and people continued purchasing, consuming cannabis, but nobody knew that that would happen. And, so, capital stopped blowing into the space, which is a big driver of expansion, and businesses really kind of reined in their growth and expansion plans to see how the year would shake out.”

By the end of the year, companies were back on track with their hiring plans, Humiston said.

“Fortunately, the year went great and the election results were great, and I think that’s setting us up for huge, huge, huge growth potential in 2021 and beyond for jobs and cannabis,” she said.

With the hiring increase experienced in 2020, the U.S. cannabis industry now supports nearly as many jobs as there are firefighters in the country, according to U.S. Bureau of Labor Statistics.

As employment continues to heat up, so are salaries and benefits in the sector, Humiston said. According to Vangst’s 2020 Cannabis Industry Salary Guide released last month, 83% of cannabis companies Vangst surveyed offer paid-time off, 73% offer medical insurance, 63% offer dental insurance, 62% offer vision insurance, 28% offer equity or stock options and 29% offer 401(k) plans—a more than 10% year-over-year increase.

“You have to remember the cannabis industry is a startup,” Humiston said. “The entire industry is a startup. This is one of the most immature market industries in the country, and yet they’re providing these great benefits and every year they keep on getting better. And, so, I think this industry is doing a great job in terms of how it’s paying its employees and in terms of the benefits that it’s providing.”

According to Cannabis Business Times and Cannabis Dispensary’s recent Best Cannabis Companies To Work For research, many employees are not satisfied with their pay and benefits, according to anonymous questionnaires distributed to teams of companies that applied to be in the program. The feedback showed 65% of cultivation employees at Best Cannabis Companies said they agreed their pay was fair for the work they perform, while that number was 59% for companies that applied but did not rank. Those numbers were 78% for dispensary employees working for top companies and 60% for others.

Budtenders, trimmers/post harvesters, packagers and delivery drivers in the 15 select states surveyed in Vangst’s guide made an average wage of $15 to $16 per hour, while some of the higher-paid jobs, like vice presidents of retail operations, manufacturing or sales, and directors of cultivation or extraction, all earned averaged salaries in the range of $105,000 to $160,000.

At HempStaff, Yagielo said the biggest increase in salary his company has noticed is for testing lab managers.

“There’s a lot of testing labs across the country trying to get online, when there’s not a lot of people that are your high-level Ph.D. scientists to get a lab set up,” he said. “So, we’ve seen, you know, salaries of lab managers go up above the $200,000-a-year mark recently. They’re usually looking for a Ph.D. in chemistry or something along those lines.”

When new states enact medical or adult-use cannabis programs, there’s often a big rush to relocate top-level managers to those states, whether it be for cultivation, extraction, manufacturing, retail or testing lab operations, Yagielo said. And once those people are relocated, then they start hiring their staff locally, he said.

“And these newer states tend to bump up salaries to entice people, because you’re going to have not as many growers that want to leave a state like Colorado, that’s totally legal, to go to a Mississippi, [which just passed medical cannabis legalization in the November 2020 election],” Yagielo said.

According to Leafly, more than 35,500 Coloradans are employed by the cannabis industry, where sales began in 2014 and raked in $2.2 billion in 2020. Colorado is only outdone by California, which supported roughly 58,000 cannabis jobs in a $4.4 billion market in 2020.

In New Jersey, where Gov. Phil Murphy signed legislation Feb. 22 to legalize adult-use cannabis following voters’ approval of the constitutional amendment, job numbers are estimated to grow by 25,000 in the sector during the first year it enacts a program, Humiston said.

“That’s a lot of brand-new jobs being created, in addition to all the tax revenue that’s being created,” she said. “I mean, cannabis creates jobs, period, and helps communities help people get to work.”

When asked if some of the more mature markets, like Colorado and California, will level off with future job growth, Humiston said she doesn’t see that happening anytime soon.

“The beauty is that more and more consumers are coming into the market every year,” she said. “There’s a whole population of people that haven’t tried cannabis yet. As those consumers continue to become customers, the businesses continue growing. And, so, we’ve certainly seen a level of consolidation, but, if you look at the market trends, the market has continued to grow every single year since it legalized. And as the market grows, meaning just general cannabis sales, there’s a need for more employees.”

With the need for more employees comes the need for job-seeking candidates, who are not on short supply for many entry-level positions. Yagielo said he sees anywhere from 100 to 300 resumes for each job opening, with the number ranging on the high end for budtender positions. But future demand could come by way of factory jobs, he said.

While cannabis job growth has continued to boom, the United States’ industrial hemp industry has leveled off in the past year or so because of market saturation without enough factories to support it, Yagielo said.

“Until you have more of those factories, unfortunately, there is a lot of hemp just getting moldy in people’s barns,” he said. “When [more infrastructure is created], I think your job market is going to explode, because factories need thousands of people to run them.”

Both Humiston and Yagielo said there’s a direct correlation between more capital entering the space and increased hiring in the industry.

In addition to more states coming on board with cannabis legalization, financing options at the federal level would bring a new round of capital into the industry, Humiston said. The Secure And Fair Enforcement (SAFE) Banking Act—proposed legislation regarding the disposition of funds gained through the cannabis industry in the U.S.—would open those doors, she said.

In other words, some companies that have the financial wherewithal to join space in the industry haven’t yet pulled the trigger without fiscal confidence at the federal level.

“I think the other big factor outside of states becoming legalized is businesses having access to capital,” Humiston said. “As businesses can take on more traditional financing options, that will allow them to grow and expand and hire more people. So, I think SAFE Banking is a big bill that everybody’s kind of paying attention to, hoping that that pushes through.

“And then just as more investors get comfortable with the space, capital will lead to growth, which the No. 1 thing people do when they grow is hire.”

‘A Gigantic Opportunity and Resource Gap’: Q&A with Amber Littlejohn

by

Shannon Price | Adobe Stock

Job growth in the cannabis sector doesn’t appear to be slowing down anytime soon.

The legal cannabis industry now supports 321,000 workers in the United States, with 77,000-plus jobs created in 2020, or roughly a 32% increase across the 37 states and the District of Columbia with medical or adult-use markets, according to a report by Leafly.

While cannabis companies were not immune to layoffs and furloughs during the onset of COVID-19, as job growth experienced a lull between March and August, hiring picked back up, and many operations thrived during the pandemic. The year-over-year growth showed that the cannabis sector created jobs at a faster rate than almost any other American industry, according to Leafly.

James Yagielo, the CEO of HempStaff, a recruiting and training company based in Miami that specializes in the cannabis and hemp industries, said the 32% increase reported by Leafly did not leave him open-mouthed. 

“It was not really that surprising because it was essential business, so that really narrowed down a lot of the different industries because a lot of industries are not essential,” he said. “So, I think that may have definitely skewed the numbers in cannabis’ favor. But, additionally, even though last year was a horrendous year for most people, our recruiting numbers pretty much matched 2019. We didn’t get the increase we expected, but we didn’t really get decrease either.”

When September 2020 hit, job growth picked back up in the sector, Yagielo said.

“We’ve kind of had a boom, say, post Labor Day in the cannabis industry in hiring that to [this] day is still going on,” he said. “So, while we did have that few-months lull, it really picked back up once they realized that the cannabis industry was not going to be hurt by the pandemic.”

The 32% increase in job growth in the cannabis sector came at a time when the broader U.S. economy shrank by 3.5% in 2020, according to the Bureau of Economic Analysis.

Although the cannabis industry may have appeared recession-proof to some, Vangst, a Denver-based recruiting platform that connects cannabis job seekers with employees, reported 80% of its clients had to lay off or furlough employees when stay-at-home orders rolled out at the onset of COVID-19, CEO Karson Humiston said.

“Nobody knew how the cannabis industry would respond to really its first economic downturn,” she said. “And, at the end of the day, cannabis was deemed essential and businesses did well, and people continued purchasing, consuming cannabis, but nobody knew that that would happen. And, so, capital stopped blowing into the space, which is a big driver of expansion, and businesses really kind of reined in their growth and expansion plans to see how the year would shake out.”

By the end of the year, companies were back on track with their hiring plans, Humiston said.

“Fortunately, the year went great and the election results were great, and I think that’s setting us up for huge, huge, huge growth potential in 2021 and beyond for jobs and cannabis,” she said.

With the hiring increase experienced in 2020, the U.S. cannabis industry now supports nearly as many jobs as there are firefighters in the country, according to U.S. Bureau of Labor Statistics.

As employment continues to heat up, so are salaries and benefits in the sector, Humiston said. According to Vangst’s 2020 Cannabis Industry Salary Guide released last month, 83% of cannabis companies Vangst surveyed offer paid-time off, 73% offer medical insurance, 63% offer dental insurance, 62% offer vision insurance, 28% offer equity or stock options and 29% offer 401(k) plans—a more than 10% year-over-year increase.

“You have to remember the cannabis industry is a startup,” Humiston said. “The entire industry is a startup. This is one of the most immature market industries in the country, and yet they’re providing these great benefits and every year they keep on getting better. And, so, I think this industry is doing a great job in terms of how it’s paying its employees and in terms of the benefits that it’s providing.”

According to Cannabis Business Times and Cannabis Dispensary’s recent Best Cannabis Companies To Work For research, many employees are not satisfied with their pay and benefits, according to anonymous questionnaires distributed to teams of companies that applied to be in the program. The feedback showed 65% of cultivation employees at Best Cannabis Companies said they agreed their pay was fair for the work they perform, while that number was 59% for companies that applied but did not rank. Those numbers were 78% for dispensary employees working for top companies and 60% for others.

Budtenders, trimmers/post harvesters, packagers and delivery drivers in the 15 select states surveyed in Vangst’s guide made an average wage of $15 to $16 per hour, while some of the higher-paid jobs, like vice presidents of retail operations, manufacturing or sales, and directors of cultivation or extraction, all earned averaged salaries in the range of $105,000 to $160,000.

At HempStaff, Yagielo said the biggest increase in salary his company has noticed is for testing lab managers.

“There’s a lot of testing labs across the country trying to get online, when there’s not a lot of people that are your high-level Ph.D. scientists to get a lab set up,” he said. “So, we’ve seen, you know, salaries of lab managers go up above the $200,000-a-year mark recently. They’re usually looking for a Ph.D. in chemistry or something along those lines.”

When new states enact medical or adult-use cannabis programs, there’s often a big rush to relocate top-level managers to those states, whether it be for cultivation, extraction, manufacturing, retail or testing lab operations, Yagielo said. And once those people are relocated, then they start hiring their staff locally, he said.

“And these newer states tend to bump up salaries to entice people, because you’re going to have not as many growers that want to leave a state like Colorado, that’s totally legal, to go to a Mississippi, [which just passed medical cannabis legalization in the November 2020 election],” Yagielo said.

According to Leafly, more than 35,500 Coloradans are employed by the cannabis industry, where sales began in 2014 and raked in $2.2 billion in 2020. Colorado is only outdone by California, which supported roughly 58,000 cannabis jobs in a $4.4 billion market in 2020.

In New Jersey, where Gov. Phil Murphy signed legislation Feb. 22 to legalize adult-use cannabis following voters’ approval of the constitutional amendment, job numbers are estimated to grow by 25,000 in the sector during the first year it enacts a program, Humiston said.

“That’s a lot of brand-new jobs being created, in addition to all the tax revenue that’s being created,” she said. “I mean, cannabis creates jobs, period, and helps communities help people get to work.”

When asked if some of the more mature markets, like Colorado and California, will level off with future job growth, Humiston said she doesn’t see that happening anytime soon.

“The beauty is that more and more consumers are coming into the market every year,” she said. “There’s a whole population of people that haven’t tried cannabis yet. As those consumers continue to become customers, the businesses continue growing. And, so, we’ve certainly seen a level of consolidation, but, if you look at the market trends, the market has continued to grow every single year since it legalized. And as the market grows, meaning just general cannabis sales, there’s a need for more employees.”

With the need for more employees comes the need for job-seeking candidates, who are not on short supply for many entry-level positions. Yagielo said he sees anywhere from 100 to 300 resumes for each job opening, with the number ranging on the high end for budtender positions. But future demand could come by way of factory jobs, he said.

While cannabis job growth has continued to boom, the United States’ industrial hemp industry has leveled off in the past year or so because of market saturation without enough factories to support it, Yagielo said.

“Until you have more of those factories, unfortunately, there is a lot of hemp just getting moldy in people’s barns,” he said. “When [more infrastructure is created], I think your job market is going to explode, because factories need thousands of people to run them.”

Both Humiston and Yagielo said there’s a direct correlation between more capital entering the space and increased hiring in the industry.

In addition to more states coming on board with cannabis legalization, financing options at the federal level would bring a new round of capital into the industry, Humiston said. The Secure And Fair Enforcement (SAFE) Banking Act—proposed legislation regarding the disposition of funds gained through the cannabis industry in the U.S.—would open those doors, she said.

In other words, some companies that have the financial wherewithal to join space in the industry haven’t yet pulled the trigger without fiscal confidence at the federal level.

“I think the other big factor outside of states becoming legalized is businesses having access to capital,” Humiston said. “As businesses can take on more traditional financing options, that will allow them to grow and expand and hire more people. So, I think SAFE Banking is a big bill that everybody’s kind of paying attention to, hoping that that pushes through.

“And then just as more investors get comfortable with the space, capital will lead to growth, which the No. 1 thing people do when they grow is hire.”

Virginia Legislature Passes Adult-Use Cannabis Legalization Bill

by

Shannon Price | Adobe Stock

Job growth in the cannabis sector doesn’t appear to be slowing down anytime soon.

The legal cannabis industry now supports 321,000 workers in the United States, with 77,000-plus jobs created in 2020, or roughly a 32% increase across the 37 states and the District of Columbia with medical or adult-use markets, according to a report by Leafly.

While cannabis companies were not immune to layoffs and furloughs during the onset of COVID-19, as job growth experienced a lull between March and August, hiring picked back up, and many operations thrived during the pandemic. The year-over-year growth showed that the cannabis sector created jobs at a faster rate than almost any other American industry, according to Leafly.

James Yagielo, the CEO of HempStaff, a recruiting and training company based in Miami that specializes in the cannabis and hemp industries, said the 32% increase reported by Leafly did not leave him open-mouthed. 

“It was not really that surprising because it was essential business, so that really narrowed down a lot of the different industries because a lot of industries are not essential,” he said. “So, I think that may have definitely skewed the numbers in cannabis’ favor. But, additionally, even though last year was a horrendous year for most people, our recruiting numbers pretty much matched 2019. We didn’t get the increase we expected, but we didn’t really get decrease either.”

When September 2020 hit, job growth picked back up in the sector, Yagielo said.

“We’ve kind of had a boom, say, post Labor Day in the cannabis industry in hiring that to [this] day is still going on,” he said. “So, while we did have that few-months lull, it really picked back up once they realized that the cannabis industry was not going to be hurt by the pandemic.”

The 32% increase in job growth in the cannabis sector came at a time when the broader U.S. economy shrank by 3.5% in 2020, according to the Bureau of Economic Analysis.

Although the cannabis industry may have appeared recession-proof to some, Vangst, a Denver-based recruiting platform that connects cannabis job seekers with employees, reported 80% of its clients had to lay off or furlough employees when stay-at-home orders rolled out at the onset of COVID-19, CEO Karson Humiston said.

“Nobody knew how the cannabis industry would respond to really its first economic downturn,” she said. “And, at the end of the day, cannabis was deemed essential and businesses did well, and people continued purchasing, consuming cannabis, but nobody knew that that would happen. And, so, capital stopped blowing into the space, which is a big driver of expansion, and businesses really kind of reined in their growth and expansion plans to see how the year would shake out.”

By the end of the year, companies were back on track with their hiring plans, Humiston said.

“Fortunately, the year went great and the election results were great, and I think that’s setting us up for huge, huge, huge growth potential in 2021 and beyond for jobs and cannabis,” she said.

With the hiring increase experienced in 2020, the U.S. cannabis industry now supports nearly as many jobs as there are firefighters in the country, according to U.S. Bureau of Labor Statistics.

As employment continues to heat up, so are salaries and benefits in the sector, Humiston said. According to Vangst’s 2020 Cannabis Industry Salary Guide released last month, 83% of cannabis companies Vangst surveyed offer paid-time off, 73% offer medical insurance, 63% offer dental insurance, 62% offer vision insurance, 28% offer equity or stock options and 29% offer 401(k) plans—a more than 10% year-over-year increase.

“You have to remember the cannabis industry is a startup,” Humiston said. “The entire industry is a startup. This is one of the most immature market industries in the country, and yet they’re providing these great benefits and every year they keep on getting better. And, so, I think this industry is doing a great job in terms of how it’s paying its employees and in terms of the benefits that it’s providing.”

According to Cannabis Business Times and Cannabis Dispensary’s recent Best Cannabis Companies To Work For research, many employees are not satisfied with their pay and benefits, according to anonymous questionnaires distributed to teams of companies that applied to be in the program. The feedback showed 65% of cultivation employees at Best Cannabis Companies said they agreed their pay was fair for the work they perform, while that number was 59% for companies that applied but did not rank. Those numbers were 78% for dispensary employees working for top companies and 60% for others.

Budtenders, trimmers/post harvesters, packagers and delivery drivers in the 15 select states surveyed in Vangst’s guide made an average wage of $15 to $16 per hour, while some of the higher-paid jobs, like vice presidents of retail operations, manufacturing or sales, and directors of cultivation or extraction, all earned averaged salaries in the range of $105,000 to $160,000.

At HempStaff, Yagielo said the biggest increase in salary his company has noticed is for testing lab managers.

“There’s a lot of testing labs across the country trying to get online, when there’s not a lot of people that are your high-level Ph.D. scientists to get a lab set up,” he said. “So, we’ve seen, you know, salaries of lab managers go up above the $200,000-a-year mark recently. They’re usually looking for a Ph.D. in chemistry or something along those lines.”

When new states enact medical or adult-use cannabis programs, there’s often a big rush to relocate top-level managers to those states, whether it be for cultivation, extraction, manufacturing, retail or testing lab operations, Yagielo said. And once those people are relocated, then they start hiring their staff locally, he said.

“And these newer states tend to bump up salaries to entice people, because you’re going to have not as many growers that want to leave a state like Colorado, that’s totally legal, to go to a Mississippi, [which just passed medical cannabis legalization in the November 2020 election],” Yagielo said.

According to Leafly, more than 35,500 Coloradans are employed by the cannabis industry, where sales began in 2014 and raked in $2.2 billion in 2020. Colorado is only outdone by California, which supported roughly 58,000 cannabis jobs in a $4.4 billion market in 2020.

In New Jersey, where Gov. Phil Murphy signed legislation Feb. 22 to legalize adult-use cannabis following voters’ approval of the constitutional amendment, job numbers are estimated to grow by 25,000 in the sector during the first year it enacts a program, Humiston said.

“That’s a lot of brand-new jobs being created, in addition to all the tax revenue that’s being created,” she said. “I mean, cannabis creates jobs, period, and helps communities help people get to work.”

When asked if some of the more mature markets, like Colorado and California, will level off with future job growth, Humiston said she doesn’t see that happening anytime soon.

“The beauty is that more and more consumers are coming into the market every year,” she said. “There’s a whole population of people that haven’t tried cannabis yet. As those consumers continue to become customers, the businesses continue growing. And, so, we’ve certainly seen a level of consolidation, but, if you look at the market trends, the market has continued to grow every single year since it legalized. And as the market grows, meaning just general cannabis sales, there’s a need for more employees.”

With the need for more employees comes the need for job-seeking candidates, who are not on short supply for many entry-level positions. Yagielo said he sees anywhere from 100 to 300 resumes for each job opening, with the number ranging on the high end for budtender positions. But future demand could come by way of factory jobs, he said.

While cannabis job growth has continued to boom, the United States’ industrial hemp industry has leveled off in the past year or so because of market saturation without enough factories to support it, Yagielo said.

“Until you have more of those factories, unfortunately, there is a lot of hemp just getting moldy in people’s barns,” he said. “When [more infrastructure is created], I think your job market is going to explode, because factories need thousands of people to run them.”

Both Humiston and Yagielo said there’s a direct correlation between more capital entering the space and increased hiring in the industry.

In addition to more states coming on board with cannabis legalization, financing options at the federal level would bring a new round of capital into the industry, Humiston said. The Secure And Fair Enforcement (SAFE) Banking Act—proposed legislation regarding the disposition of funds gained through the cannabis industry in the U.S.—would open those doors, she said.

In other words, some companies that have the financial wherewithal to join space in the industry haven’t yet pulled the trigger without fiscal confidence at the federal level.

“I think the other big factor outside of states becoming legalized is businesses having access to capital,” Humiston said. “As businesses can take on more traditional financing options, that will allow them to grow and expand and hire more people. So, I think SAFE Banking is a big bill that everybody’s kind of paying attention to, hoping that that pushes through.

“And then just as more investors get comfortable with the space, capital will lead to growth, which the No. 1 thing people do when they grow is hire.”