These stats will be a boon to the nascent cannabis business. A survey of 1,000 Americans conducted by Clever, a real estate research and data company, found that 56% of Americans would consider buying a home that was next door to a cannabis dispensary, and that 72% percent were okay with living within a mile of one. Read the full story in Chain Store Age: https://chainstoreage.com/survey-half-americans-would-buy-house-next-door-cannabis-dispensary

New Jersey Announces Technical Assistance Program for Cannabis Entrepreneurs

TRENTON – The New Jersey Cannabis Regulatory Commission has made a recommendation to the Department of the Treasury to fund the Cannabis Training Academy.  The program is to be run by the Department of State’s Business Action Center (NJBAC) to provide technical assistance to entrepreneurs establishing cannabis businesses in New Jersey.

The NJ-CRC’s Audit Committee recommended that funds from the Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization (CREAMM) Fund be allocated to the Business Action Center to establish a new program to provide free educational courses, technical assistance in building business plans and completing other aspects of license applications, and mentorship to cannabis business owners.

Commission Vice-chair Sam Delgado, who sits on the Audit Committee, expressed his pleasure with the program that will launch in 2023.  “We have emphasized equity and accessibility in the application process and this program will help ensure aspiring entrepreneurs have the optimal business know-how to give them the best chance for success in the cannabis space.  The Cannabis Training Academy will begin the needed training and guidance that will help individuals, and assist the budding market’s stability and success.”

“Supporting these new entrepreneurs to be successful is critical to ensure equitable representation of small and diverse cannabis businesses and owners,” Secretary of State Tahesha Way added. “This assistance is essential to help people and communities that were targeted during cannabis prohibition to achieve greater equality, access and participation and improve their lives, families and communities.”

The NJBAC’s proposed curriculum includes modules designed to help participants decide if a cannabis business is right for them and will include business plan development as well as a Legacy to Legal course.  Some program resources will be targeted to “Specially Designated Categories,” which include social equity businesses, diversely owned businesses, microbusinesses, and Impact Zone businesses.  There will be a 10-week accelerator track to take conditional license applicants through the initial application process, and a separate track to them convert to annual licenses.

“Classes in the academy will be taught by faculty who are in or have taught or consulted to the cannabis industry,” said NJBAC Executive Director Melanie Willoughby. “For 40 years, NJBAC has provided real-time assistance and support to businesses to help them navigate state government and connect with helpful resources. We look forward to building on our small business advocacy work to support this emerging marketplace.” 

Joshua Belle, an advocate for legacy cannabis entrepreneurs, applauded the announcement. “Having this program designed specifically for cannabis business owners is going to be major for a lot of entrepreneurs who have the heart and the commitment for the industry but could use some help with the technical training.  It is great that it is free too. Starting a business is expensive enough and there are too many consultants and such taking advantage of cannabis business owners.”

The New Jersey Cannabis Regulatory Commission establishes and enforces the rules and regulations governing the licensing, cultivation, testing, selling, and purchasing of cannabis in the state.

#DailyCannabis Exclusive

Cannabis Business – Not for the Faint of Heart;

But with Determination, Business People will Thrive

In the cannabis/hemp industry’s latest evolutionary phase, if you’re a clever businessman with a record of successful startups who’s eyeing to move into this profitable though tricky market but lack specific skills, don’t stumble in blindly but also don’t give up – you’re in luck.

Narrow-focused service companies – MSOs – that provide a range of crucial cannabis-specific business, financial, real estate, marketing, accounting, legal, insurance, grower and other services that have calculated the potential profits have expanded into the cannabis/hemp space to help small businesses reach new highs.

I witnessed at the Real Cannabis Entrepreneur Conference on October 21-22 at the Doubletree Hotel adjacent to Newark International Airport that those companies are not robber barons jumping on the bandwagon of extra sales and profits driven by a new product but rather their expertise and services are genuinely needed because of the web of regulatory complications and lack of legal uniformity that could trip up even seasoned businessmen.

If you’re considering getting into the cannabis/hemp market for the fun of dabbling in a former illegal substance then you’re setting yourself up for failure. It’s a wild west out there and you need to be prepared. Nonetheless, despite the complications, the legal and business environment bodes well for savvy business people an industry which is characterized by enthusiasts as maturing.

West Coast states are quite mature while New York and New Jersey have just begun to get involved in the market, pointed out exhibitor Ken Tays, co-founder of Green Leaf Marketers, www.greenleafmarketers.com. “From a maturity level, we’re still very much in a growth phase. New states should look at old states to see what worked and what didn’t and then incorporate their best practices,” Tays pointed out.

While there are good opportunities in many market segments from leaf touching to dispensaries and ancillary businesses, Tays advises newcomers to study markets that aren’t saturated, where they’ll find their niche. He said prospective entrepreneurs must know what the saturation level of new licensees is today and what it is expected to be in the future.

Tays, who worked as a bank regulator for 12 years and then in financial services, understands the demands of the laws and regulations on cannabis small business owners. His company, which deals in marketing, mailings, etc., has established a compliance program for the benefit of his clients. Its framework has been designed for each state where they send mail, which is also reviewed by lawyers before dispatching circulars and parcels.

“In this business, safe, effective and legal are the cornerstones for success,” he said.

Angelo J. Amato, vice-president, retail banking, Financial Resources Federal Credit Union, https://myfinancialresources.org/, that specializes in the cannabis industry, concurs that this blossoming industry is still in its infancy, “but as it becomes more legal, we will see it grow and that’s a positive trend. We’re seeing more people accepting the industry and seeing the potential that it can have for the future.”

Amato agrees with the opinion of other exhibitors that cannabis and hemp products should be regarded as high-end products that should be marketed in boutique dispensaries and that’s his credit union’s mission. “We want to make sure that we’re helping and guiding the new business people, seeing that they’re starting out right with preliminary licenses, conditional ones or annual ones. We want to guide them through the entire process,” he said.

With cannabis banking new in the Garden State, Amato’s financial institution is striving to be the first with all of the answers to newcomers’ questions. “Right now they may understand cannabis, but we want them to understand the business of cannabis,” he added.

Insurance brokers are also part of the excitement and Rud Niles, president of East Coast Cannabis Insurance, www.EastCoastCannabisInsurance.com, sees growth by the increasing calls for quotes and letters of intent. Proof of the industry’s growth is also the booming number of ancillary, support companies that have emerged. “I also like that the stigma of being a marijuana user is going away. They’re no longer users but rather consumers,” he said.

But perhaps more so in this industry than others, entrepreneurs are getting bogged down in startup bureaucracy. “Very often they’ve gotten their license and spaces and they’re talking about building it out when local hiccups slow them down. The business people are ready but they’re not opening up their doors as quickly as they’d like.”

A myriad of challenges exist for the beginners. Tyler A. Reedman, financial advisor with HFM Investment Advisors LLC, www.HFMadvisors.com, listed two of them: capital and aligning yourself with trusted partners that are cannabis friendly, a term that was echoed by other exhibitors. Legal hurdles are massive and confusing, he added.

Nonetheless, the relaxation of regulations in New Jersey has spurred the opening of new companies. “As a result, we’re adding mature services such as 401k to legitimize their business so they can take care of their employees,” Reedman said, noting that any company that has employees or even not can open a 401k.

“It’s about retaining employees, reducing turnover and minimizing taxes. We’re seeing many people that are ready to become involved in this business. They know the hurdles and there are many of them but they’re ready to take the leap of faith,” Reedman said.

Industry advocate, Harry Carpenter, partner and co-practice leader, CitrinCooperman, www.citrincooperman.com, is very passionate about the cannabis industry as he recounts his reasons for having been involved in to for the past six years. “The reason this industry is catapulting is because it’s not just a business. There’s a passion behind this business. Maybe you see this as a plant that provides medicine, or you have someone in your family who is addicted to opioids, or you don’t like the opioid epidemic in this country, or you don’t understand why we don’t have looser laws in this country for cannabis, or maybe you or someone in your family has been incarcerated for small amounts or cannabis,” he detailed.

Carpenter continued by saying that this industry has been long time in coming to its current legal status in the United States even though it is safer than alcohol and cigarettes while providing a lot of jobs and opportunities, tax dollars for states and municipalities, medicine to people, as well as opportunities for women and minority entrepreneurs.

He expanded the list of challenges presented previously with the following points: competition, securing a location, municipality and zoning restrictions, planning board approvals, winning a license, capital and not being taken advantage of by the sharks.

Despite the seemingly tedious tasks, Carpenter is optimistic about future. “This business is a community of people. This is a $10 billion industry that will be $80 billion in 2030,” he said.

The mushrooming presence of ancillary companies was also touted by Teresa Kearney, vice-president of sales at Panacea Payroll, www.PanaceaPayroll.com.

“This tells me that the cannabis business is finally beginning to be a valid business. It is fun but it has to be run like a business. You have to pay attention to details and little things that go into running any business but more so because the IRS and states are keeping their eyes out for you,” Kearney said.

Everyone has someone is some business that could be called upon for help, but when it comes to finding a location for your dispensary, Imani Johnson of Berkshire Hathaway, www.foxroach.com, advises not to consult your uncle. “I’m in charge of locating properties so I go through zoning regulations and ordinances to locate properties where people are able to operate their cannabis business,” she said.

Her task is to help clients overcome the ton of local challenges in a very difficult process. When it comes to cannabis property, she notes that the usual automated real estate process is still done manually.

“The biggest challenge is finding the space and that’s where I come into play. Licenses and applications are straight forward but finding the property is difficult because of local ordinances, maps zoning and the uncertainty of the current owner or manager,” Johnson said.

I’ve seen food applications for cannabis at previous expos but at this one I encountered a vendor who produces cooking spices and flavors under the label “Green Panther” and has personally experienced its anti-inflammatory benefits. Jasmine “Chef Jazz” Moore, www.houseofpanther.com, is a graduate of the Baltimore International Culinary College, author of “More than a Cannabis Cookbook,” and a Crohn’s survivor. Chef Jazz’ kitchen aids are applicable in foodservice as well as retail.

Accordingly, she observes, “I want to align cannabis and food for health and happiness. I focus on the anti-inflammatory benefits, not the psycho-active ones. I just want to be healthy without the slew of medications that people take.”

Consequently, her motto is “Educate, Entertain, Empower.”

Another proponent of the high-end boutique charisma of cannabis products is Mary Sonntag of MaryBud Chocolates. A chocolatier by avocation and vocation, Sonntag refreshed her skills before marketing her confections. She also reviewed the market prices for top-shelf Belgian chocolate and added a markup for cannabis infusion.

“I developed a luxury brand of confections that appeals to older chocolate aficionados who want to spend a little more money and have fun,” Sonntag explained. “I want to take cannabis out of the shadows.”

She’s not afraid that her high prices – or those of other infused products – will scare away consumers because that image can only benefit the burgeoning industry. “Why shouldn’t there be space for a high-end product that people aren’t afraid of? After all, there’s room for a Rolls Royce,” Sonntag insisted.

In searching for a payroll company, Panacea’s Kearney recommends entrepreneurs check first if the firm is cannabis friendly – a challenge in itself is. A good payroll company needs to work with all MSOs for the success of the newfound business.

“For example, there’s very little that a cannabis business can write off on their taxes. Consequently, you want a payroll company that knows the ins and outs of that whole system so they advise about all write offs possible.  If definitely benefits business owners to have all of those pieces in place such as attorneys, accountants, payroll, real estate and others,” Kearney said.

Afterwards, she cautioned, will be too late. “Playing catch up later is not a good idea and it interferes with successfully operating the business,” she added.

All of these MSOs came full circle to Rutgers Law School, go.rutgers.edu/CLBCert, announcement of a six-month Certificate in Cannabis Law and Business that will launch in January 2023. This non-credit program brings together expert faculty from across Rutgers Law School, Rutgers School of Business – Camden, Rutgers School of Environmental and Biological Sciences, and Rutgers School of Communication and Information, alongside industry experts and guest speakers. It will provide business owners with a thorough grounding in the rules and regulations of New Jersey’s cannabis industry as they pertain to every aspect of running a business, ensuring that people entering the market have the information they need to run legally compliant businesses.

This is the first program that Rutgers Law School has developed to support participants who are not J.D. students or legal professionals. The curriculum has been developed specifically for New Jersey’s legal cannabis industry, making it highly specific to the needs of the local community.

Rutgers Law School Co-Deans Kimberly Mutcherson and Rose Cuison-Villazor said, “This new certificate is exactly the kind of work that we want to be doing as New Jersey’s state law school. Now that the state legislature has legalized the cannabis industry here, we want to ensure that we can provide crucial information to the citizens of N.J. who want to enter this business, especially those from communities that traditionally bore the brunt of punitive outcomes before legalization.”

The full six-month certificate costs $2,695. Individual modules can also be purchased for between $600 and $850. A limited number of scholarships will be available for people who have received, or who will be applying for, Social Equity business licenses through New Jersey’s Cannabis Regulatory Commission. Applications for these scholarships will open in October. Additional partnerships with community organizations will also be announced.

One more issue that attracted resounding support from the attendees that I spoke with was a future establishment of a cannabis-hemp trade organization from cultivator to boutique dispensary along with the MSOs. This type of an institution would look after the needs of the industry, train and educate the participants, assist with developing standards, and protect their interests in Washington, D.C., and states’ capitals.

Daily Cannabis

Evidence of Maturing Cannabis Industry Abounds

The wholesale and retail cannabis and hemp industry, once outlawed, reviled and shunned, is estimated to ring up in the near future billions of dollars for businesses from growers to distributors to small retailers across the country. With that vast accumulation of dollars in a relatively short amount of time, supplementary businesses and services, previously associated with developed, Main Street companies, have emerged. Some of them have transitioned from other industries while some offer services exclusively for cannabis and hemp firms.

It’s no longer, “Psst, I have some weed.” Cannabis and hemp products for legal applications are a high-end, top-shelf product available in boutiques, not on seedy urban streets. And in order to grow, the businesses need financial, marketing, tax, legal and other advice.

As an example of these opportunities, in at least one state, Colorado, marijuana sales since 2014, when it was legalized in the Rocket Mountain market, have grown to $13.4 billion, according to the Colorado Department of Revenue. Understandably, a portion of that number also ends up in the state’s tax coffers, which in the case of Colorado amounts to $2.3 billion.

The CannaOne, https://cannaone.com/,  NJ Cannabis + Investment Expo at the New Jersey Convention Center in Edison on October 10-12 was an suitable venue to witness this expanding interest and trend. Additionally, exhibitors touted wares that are natural, ecologically friendly and fast acting.

With the issues of business and sales growth touching all levels of management, including CEOs, the presence of service firms means that the industry is maturing, believes Sandy Suchoff, CPA and founder of The CannaCPAs, https://thecannacpas.com/, with offices across the country. The firm offers a range of financial and tax services dedicated to make cannabis companies more profitable.

“The cannabis and hemp industry is becoming a ubiquitous industry because it has become legal in many states but not yet on the Federal level,” Suchoff said. She noted that the company can help with legitimate strategies to mitigate negative effects of the federal and local tax code.

“We can design a plan to grow profits, set targets and use analytics to align with those targets. We set objectives to grow because, after all, cash is king from farm to retail,” Suchoff said.

According to Dope CFO, www.dopecfo.com, cannabis service companies seek to assist budding firms along the entire supply chain to “make sure that they get a bite out of the market,” observed Malvina Kay. She explained that the future of the industry depends on loosening of federal and local regulations so that sales of the legal version of cannabis and hemp can grow organically.

With consumer demand for cannabis surging, the question of where to find a small business becomes problematic. One solution is an app called Weed Maps, http://weedmaps.com. This downloadable aid assists consumers in connecting with retailers by zip code. As consumer interest grows about a product that is not going to go away, this app resolves the question of where to buy legal weed, observed Bianca Endersby, trade show and evens manager.

Realizing the need to control cannabis absorption by the body to avoid unexpected highs and lows, Azuca, https://azuca.co/, which translates into sugar, developed a time-infusion product that transforms ingestible cannabinoids into fast-acting ingredients for edibles. Alex Archuleta said the company is a manufacturer of the product that works in 5-15 minutes. Licensee relationships are available. He too believes that the industry’s growth hinges on the speed of adopting supportive laws and regulations.

With the industry’s supply chain beginning with growers, the assurance of adequate growing conditions is vital. For those that choose to grow the plant indoors, Trane, www.trane.com, offers a system that establishes and monitors the correct interior environment, observed Richard Dulski, New Jersey account manager. The benefit is that the supply chain is assured of a good product from grower to retailer, Dulski said.

For locations that permit the tobacco or smoking version of cannabis, Tuxedo Paper Co., www.tuxedopaper.com, offers a range of premium rolling paper from the Czech Republic. Ryan Yoon, marketing representative, imports ecologically friendly paper as a competitive edge to the first tier providers. He said this product will satisfy the demands of this growing market.

Devon Darden, financial services representative for Capital Strategies, www.csomtx.com, observed that the industry is riding the beneficial wave of cannabis’ social acceptance. The stigma is evaporating, the industry is maturing, the product is more acceptable, regulations are changing, all of which Darden said is a boon for the supply chain.

“Five years ago I couldn’t speak about this with my mother. Today, cannabis and hemp are acceptable products,” Darden noted.

As cannabis usage and sales become legalized across the country, Amorette Mason, Accounting Buds, www.acctbuds.com, said the need for service companies in this growing industry will be greater.

Drug arrests – even minor ones – still figure negatively on a jobseeker’s employment searchers. President Biden’s recent support for decriminalizing even minor busts is a step in the right direction but exhibitors said it’s not enough. But the personal stigma persists. Cannabis Equity Employment, www.cannabisequityemployment.com hopes to change that. The firm emphasizes social equity, impartiality, fairness and justice for all people as a social policy. Consequently, former inmates should not be denied employment. “We’re looking to create an even playing field so that formerly affected people could get back into employment,” explained Adrian Clarke, chief operating officer.

As with any budding industry with recognizably large sales projections, quality assurance, standardization and industry monitoring eliminates the need for dubious “trust me” marketing. Industry self-regulation is a process whereby members of an industry, trade or sector of the economy monitor their own adherence to legal, ethical, or safety standards, rather than have an outside, independent agency such as a third party entity or governmental regulator monitor and enforce those standards. Understandably, ingredients, top-notch salesmanship and the absence of unregulated knock-offs are essential attributes of this process. Dr. David L. Nathan of Doctors for Cannabis Regulation, www.dfcr.org, is working toward that goal. In this context, regulation does not have a negative connotation but rather a positive one.

Presently Nathan is working to develop a consensus of standards among companies across the supply chain, beginning with the business activities’ logo that is approved by the ASTM International. As with other industries, standards and unanimity ensure that everyone is operating under the same terms and symbols. The promotion of such an industry-wide good policy ensures success and profitability for all participants.

Due to the importance of this issue, we’ll be returning to it regularly in the future.

Hope to see you at the next educational/informational event, the Real Cannabis Entrepreneur LIVE Conference 2022, https://realcannabisentrepreneur.com/, Double Tree Hotel, Newark, NJ, Friday and Saturday, October 21-23.

DAILY CANNABIS

MA Cannabis Commission Marks 5^th Anniversary

The Massachusetts Cannabis Control Commission celebrated its fifth anniversary, marking five years since the appointment of the inaugural Commission on September 1, 2017. In that time, the regulatory body built a new independent Commission and legal industry from the ground up; the agency now has nearly 90 employees and a new slate of Commissioners, including the September 1 appointment of Chair Shannon O’Brien, with 434 adult-use and 98 medical-use licensees operating across the Commonwealth and over 30,000 registered agents working in the regulated industry.

“I am incredibly proud of our Commissioners and staff, past and present, whose contributions over the last five years have created the agency you see today. We accomplished building a brand-new agency while at the same time regulating a marketplace that is not new to Massachusetts but is safer and more effective thanks to our collective efforts,” said Executive Director Shawn Collins. “We have made great strides towards our equity mission as an agency and industry, but we all acknowledge there is more to do. We are not intimidated by the challenging and important work that remains, and I look forward to seeing the progress we achieve in the next five years.”

On November 8, 2016, Ballot Question 4 “Legalize Marijuana” passed with 53.6% of the vote in the Commonwealth. At that time, Massachusetts joined seven other states, plus the District of Columbia, that had legalized marijuana for adult use (also known as recreational use). That number has since increased to 18 states as well as some territories. The resulting law in Massachusetts, Chapter 334 of the Acts of 2016, The Regulation and Taxation of Marijuana Act, which was amended by Chapter 55 of the Acts of 2017, An Act to Ensure Safe Access to Marijuana, created the Commission and delegated oversight of the adult-use cannabis program to the regulatory body.

On August 11, 2022, Governor Charlie Baker signed into law Chapter 180 of the Acts of 2022, An Act Relative to Equity in the Cannabis Industry, a major reform bill enhancing provisions within the initial statute, after several years of advocacy by Commission members past and present. In August 2021, Commissioners voted to implement a process for Legislative and Executive Branch outreach and then voted unanimously to support a state-administered fund comprised of public and private resources offering zero- or low-interest loans or grants to equity applicants and licensees. Commissioners also supported a technical change allowing social consumption as well as greater authority to regulate host community agreements.

Since Massachusetts’ first two Marijuana Retailers opened in 2018, 235 more have received notices from the Commission to commence operations statewide and are in the process of opening. Another 166 Marijuana Retailers with provisional or final license approval are completing the Commission’s inspection and compliance procedures towards that end. In total, the Commission has licensed 1,155 Marijuana Establishments, including Cultivators, Product Manufacturers, Retailers, Independent Testing Laboratories, Microbusinesses, Marijuana Couriers, and more.

In addition to regulating the adult-use cannabis industry, the Commission has overseen the Medical Use of Marijuana Program (Program) since it was transferred from the Department of Public Health in December of 2018 as required under Chapter 55 of the Acts of 2017. The Program has grown from approximately 58,000 patients to almost 100,000 patients, as the agency has implemented several enhancements since assuming Program oversight.

DAILY CANNABIS

New Jersey Cannabis Regulatory Commission to hold in-person meetings

Meetings will be held at 44 S Clinton Avenue, Trenton starting on October 20th 

TRENTON – The New Jersey Cannabis Regulatory Commission will now host their public meetings in person.  Starting with the next scheduled one on Thursday, October 20 at 1 p.m., the meetings will be held in the hearing room at the Civil Service Commission building, 44 South Clinton Avenue in Trenton. The meeting will also be livestreamed on the Commission’s YouTube channel.

With the change to in-person meetings, those who register to speak during a public comment period will need to be present at the meeting.  The Commission will not be able to accept public comments virtually. Comments will continue to be accepted in writing on NJ-CRC’s website.

The meeting venue (map attached) is conveniently located less than a block from Trenton Transit Center, close to bus stops, and close to US 1. Paid parking is available on the surrounding streets and in an adjoining parking garage. 

With limited seating capacity in the meeting room, interested parties are encouraged to watch the meetings online, unless they wish to speak during the public comment period or have other specific reason to attend in person. For public safety, no one will be allowed to enter if the meeting room is at capacity. Everyone entering the building is required to show government-issued photo identification.

The New Jersey Cannabis Regulatory Commission establishes and enforces the rules and regulations governing the licensing, cultivation, testing, selling, and purchasing of cannabis in the state.

DAILY CANNABIS

Hemp & Cannabis: Vibrant Growth Opportunities for Small Businesses

Once criminalized, stigmatized and otherwise shunned by society, the cannabis industry is on the cusp of massive growth in business in the United States.

Buoyed by a beneficial legal climate on the Federal, state and local levels, growers, processors & formulators, distributors and retailers are taking advantage of enthusiastic consumers’ interest in therapeutic and recreational cannabis – the basis of marijuana.

But first, a few definitions of comm
only used terms:

Hemp: Also known as industrial hemp, is a botanical class of Cannabis sativa cultivars grown specifically for industrial or medicinal use. It can be used to make a wide range of products. Along with bamboo, hemp is among the fastest growing plants on Earth.

Cannabis: Also known as marijuana among other names, is a psychoactive drug from the Cannabis plant. Native to Central and South Asia, the cannabis plant has been used as a drug for both recreational and entheogenic (psychoactive substances) purposes and in various traditional medicines for centuries.

CBD: Cannabidiol is a phytocannabinoid discovered in 1940. It is one of 113 identified cannabinoids in cannabis plants, along with tetrahydrocannabinol, and accounts for up to 40% of the plant’s extract.

Tetrahydrocannabinol (THC): Together with cannabidiol (CBD) are the two primary cannabinoids that occur naturally in the Cannabis sativa plant, most commonly known as cannabis. Both of these substances interact with the cannabinoid receptors found in the human body and brain, but they differed dramatically in their effects.

Delta-8 THC is one of over 100 cannabinoids produced naturally by the cannabis plant but is not found in significant amounts in the cannabis plant. As a result, concentrated amounts of delta-8 THC are typically manufactured from hemp-derived cannabidiol (CBD).

Apparently many of the exhibitors and attendees at the White Label World Expo at the Javits Center in New York last Thursday and Friday, September 29-30, were in the know about this expanding market segment. A majority of the 250 exhibitors are involved in some form or another in the cannabis industry. Attendees were able to discuss the latest trends with growers or famers, processors, formulators and packagers, wholesalers and retailers. Many were eager to accommodate inquiries about developing a white label relationships, private label, or off-the-shelf products.

But still, the vast array of ideas, developments and applications was mind boggling to the unsuspecting visitors. Also, note that the smoking version of cannabis is not legal everywhere across the country, even for medicinal use, so consequently some exhibitors only showed it in large sealed glass containers.

What’s driving this market? For one thing, it’s a new industry that recently emerged from the shadows.

I asked Dr. ZaLonya Allen, president of the National Entrepreneurs Association, for her opinion of what’s going on. “This is new and it’s part of a multi-billion industry. Businesses are jumping on this bandwagon in hopes of making a lot of money. There will be a lot of opportunities to grow profitable businesses,” she opined.

Many exhibitors expressed the same hope. They indicated that in the past three - five years, business has skyrocketed up to 200 percent. Official figures corroborate that expectation. The US cannabis market size was valued at $10.8 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 14.9% from 2022 to 2030, according to Grand View Research.

While there’s money to be made, it’s not that easy. For one thing, there isn’t a single national law on how to buy and sell cannabis. Rules and regulations continue to roll out but in the meantime businesses may encounter different and contradictory laws among Federal, state or local governments.

“It’s not like selling chocolate bars,” observed Ken Tays, founder and president of Green Leaf Marketers, www.greenleafmarketers.com. While the company handles the full gamut of marketing tasks solely about cannabis and hemp products – except logo design, advising clients whether or not their products will sell in specific locations is its crowning service. Without Tays’ knowledge of the laws and regulations, which he honed as a postal employee, companies could be stopped dead in the water with nowhere to go for their misjudgments.

“You have to know the regulations before you sell and ship your product because each state is different,” Tays said, noting that he first submits product specifications to compliance lawyers to protect the client.

Today’s range of end uses for cannabis and hemp include therapeutic as well as recreational  products such as topical creams and other applications, infusible formulations, beverages, candies and also apparel. Many companies are amenable to white or private label relations. With the negative stigma surrounding cannabis evaporating, consumers can be neatly divided into two categories: over 30 years of age up to the later years of their lives that seek these products for their therapeutic benefits of which there are reportedly many, and under 30 who enjoy their recreational and calming properties.

Growers, processors and retailers emphatically warned that knockoffs should be avoided at all costs because of inherent dangers that could threaten not only lives but also the industry’s success. They also pointed out that the related products should not be marketed to consumers in gasoline station convenience stores or corner candy stores but rather should be offered solely in high-end boutiques.

Ashley Shafer, operations director of DNA Hemp, www.dnahempllc.com, a hemp grower in Wisconsin, described her product as an ancient plant with therapeutic benefits. “It’s a seed to soul plant that can help small businesses grow their sales,” Shafer said. “We are passionate about soil to soul practices by respecting the plant, its diversity and intended purposes.” The company features hemp flowers, CBD edibles, CBD oil and topicals. Like other exhibitors, it emphasizes that the products are third-party lab tested.

Mario Irizarry, coo of Treehouse CBD, https://treehouse-cbd.com, said he and his partners launched the company in response to the growing demand premium CBD products over the past five years. With stores located in the Metro-Detroit area and shipping nationwide, Treehouse CBD provides novel CBD solutions; including CBD gummies, topical CBD ointments, CBD salves and CBD pet products. Irizarry is convinced that CBD products can help a small business expand sales because they have come of age for a wide range of consumers.

What’s Your Treat, www.whatsyourtreat.com, took its 60 years of expertise in marketing candy and two years ago expanded it into CBD candies, according to James Bivens, co-owner and CFO. It’s top sellers include fudge, taffy, gummies, chocolate pops, and caramels. For its customers it can create its own brand, design packaging, build product line, package products and ship to retail location. The company can also infuse its products with customers’ flavors, Bivens added. “It’s a hot topic. In the past two to three years, we’ve seen 100-200% growth, he said.

Alabama-based Wagon Trail Hemp Farms, www.wagontrailhempfarms.com, works with local farmers in producing an assortment of hemp products. It offers white label marketing opportunities, according to Shelly Bullard. The company formulates its products or helps with formulating them according to client specs. Deregulation and positive consumer health awareness have been a boon to sales growth, Bullard said.

The diversity of CBD therapeutic applications was pointed out by Mara McCalmon, director of operations, Thumb Coast CBD, www.ThumbCoastCBD.com. It can be given to pets as well as children. “We’ve seen the therapeutic benefits of CBD for years even when we couldn’t study it in American universities,” she said. “We’ve been fighting the bad connotations and now it’s become the latest health tonic.” As states open their doors to sales, growth will follow, McCalmon added.

Bayou City Hemp Co., www.bayoucityhemp.com, is following the hemp profit trail in still another direction. According to Karen Trotter, CFO and investor relations, 50% of the recreational cannabis market will be in beverages. But is that different or better than regular whisky? Trotter explained that cannabis beverages relax and contribute to socialization without the day after alcohol effects. The company is working with a beverage manufacturer to produce cannabis on tap.

David Binder of the Doylestown Hemp Co., www.dhempco.com, opined that the market is currently saturated with topical and therapeutic products so he believes the future is moving toward industrial products such as sublingual tinctures, topical muscle, joint and pain gels as well as hemp soaps, candles and wax melts in a variety of aromas and decorative botanicals.

Capitalizing on the therapeutic benefits of cannabis and hemp, WellBeing Farms, www.wellbeingfarms.com, forthrightly announces this in its tagline “Nature’s Medicine.”

Stiffyz LLC, www.stiffyz.com, is another company that offers natural cannabis alternatives to promote feel-well living. One product, as the name implies, is to boost male sexual prowess, and the other, explained Darin Wells, CEO, is for relaxation and sleep in a black tin and the other, in a red tin, for a psychoactive high that allows you to go throughout your day.

One of the few overseas exhibitors, Irish Gold, www.irishgoldcbd.com, growers of organic hemp on their own farms, is sure its product will be successful on this side of Atlantic because “It’s Irish and everyone loves Irish,” quipped Oscar Burns, director. He added that his company knows how to market to small businesses because it’s also a small business.

In these unstable economic times, the savvy business person shouldn’t overlook this new, potentially profitable opportunity to grow sales.

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