Industry Guide Archives | Cannabis Means Business

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October 24, 2023October 17, 2024 By CWCBExpo

6 Interesting Hemp Products That Go Beyond CBD

It’s worth noting that industrial hemp — cannabis plants bred to contain 0.3% or less THC — can be used for way more than just CBD. The plant’s biomass unlocks opportunities to develop a truly staggering array of products that are environmentally-friendly, ultra-strong, and offers uses for several commercial applications. How is this plant set to transform how we fuel our cars, dress ourselves, and eat our breakfasts? Entrepreneurs — as you start eyeing this opportunistic market, get to know interesting hemp products that have the potential to change entire industries.

3 factors shaping the state of the hemp market

Exciting growth is happening within the industrial hemp market throughout the United States. With an estimated market size of $6.63 billion in 2022 and a projected growth to around $32 billion by 2030, innovative pioneers are finding new ways to apply hemp’s benefits and properties to dozens of industries. So, what’s causing this growth?

There’s a growing awareness of hemp’s benefits

Hemp has been a core part of societies around the globe for good reason. This versatile plant can be transformed into a nutritious food source, a textile source, and much more. As more consumers, researchers, and decision-makers learn more about hemp, interest in hemp-based products consequently increases.

There’s a consumer want — and need — for eco-friendly alternatives

Consumer interest in buying eco-friendly products is growing. Hemp may be a more sustainable alternative to items in a number of categories, giving customers the options they want in clothing stores, construction supplies, food sources, and more.

Hemp is in a more favorable regulatory environment

Beginning with the 2018 Farm Bill, which removed hemp and hemp seeds from the U.S. Controlled Substances Act (CSA), the regulatory environment around hemp products has drastically shifted in recent years. While there is still progress to be made, with this major hurdle out of the way, entrepreneurs, farmers, and investors can feel more confident in exploring the opportunities these products can bring to market.

6 innovative hemp products to get excited about

CBD got much of the attention when hemp and hemp-derived extracts were removed from the Controlled Substances Act. But as these products proliferated the market, many hemp uses emerged. Here are six of our favorites.

1. Food products

Eating hemp seeds and using hemp protein powder are not necessarily new, but their market size is growing. As more health-conscious consumers get to know their nutritional profile and health benefits, this category is expected to grow by about 9% in 2023. Hemp seeds are rich in omega-3 and omega-6 fatty acids, making it an excellent vegan source of this essential nutrient. They’re also an excellent source of protein and fiber.

2. Construction materials

Yes, plants can be used to build homes! Also known as “hempcrete,” this mix of hemp, lime, and water that weighs significantly less than concrete.

Hemp-derived construction materials identify a crucial void in the market — the need for greener alternatives in construction. As more architects, builders, and consumers become aware of the importance of sustainable building, there is a growing interest in incorporating these products into projects.

From an environmental standpoint, the use of hemp can offer several significant advantages. Hemp is less expensive to process than wood, and it can absorb 70% more CO2 annually than a forest. Hemp naturally absorbs carbon dioxide during its growth, making it a carbon-negative material. Notably, too, hemp is ready to harvest in a period of weeks or months, where building materials like wood take decades to grow.

3. Fuel

Can hemp really power everyday objects like biodiesel fuel can? Yes! Hemp products offer a unique solution to the fuel crises around affordability and environmental impacts faced globally today.

Hemp oil, derived from industrial hemp seeds, has been in use for centuries for powering oil lamps, and most recent applications have found that it could be a viable alternative to fossil fuels for purposes of powering engines. While hemp may not replace all fossil fuel use, it might play a significant role in reducing dependence on these energy sources.

4. Clothing

In a world dominated by mass-produced fashion and accessories, hemp-based clothing and stands out as eco-friendly alternatives to materials that inevitably make their way into landfills. And in many ways, hemp clothing and accessories get back to one of the plant’s most essential uses for centuries: as a textile.

The hemp clothing market reached $5.66 billion in 2021, and it’s easy to see why. Hemp fabric is stronger and more durable than cotton, with many beneficial properties of its own. Hemp fabric has UV properties, moisture-wicking properties, and is highly breathable. And due to the way hemp is grown — it requires one-third less water than cotton while yielding significant more fiber — its use in making clothing and other textiles can be a practical way for eco-conscious consumers and companies to lessen their impact on the environment.

5. Paper

The first hemp paper appeared in China thousands of years ago. Hemp’s revitalization in the American and global business communities, this ancient use is re-emerging. Paper from hemp is stronger than its wood pulp counterparts and has high quality. Hemp has a relatively short harvesting timeline — compared to the decades it takes to grow a tree — it’s a resource that may be much easier to produce at scale. Hemp could be the answer to help decrease deforestation and set the stage for a greener future.

6. A replacement for plastic

Yep — we can also tackle plastic waste with hemp-based solutions. With its high cellulose content, lightweight nature, and ultra-strong properties, hemp is among the most promising bioplastic alternatives to the oil-based plastic that’s fueling much of the world’s pollution today. As a biodegradable polymer, hemp plastic’s biggest promise may be its reduced impact on the environment: hemp plastic only needs months to biodegrade, where oil-based plastics can take decades or even hundreds of years to decompose.

Can hemp save the planet? It’s certainly possible

Hemp’s economic promise goes beyond CBD lotions and hemp seeds to sprinkle on your morning oatmeal. This ancient plant, embraced by societies around the world for millennia, has a new role in a modern day society grappling with larger questions about caring for the planet. And thanks to a much-improved regulatory environment and heightened public awareness, now is the time to explore the long-term opportunities in hemp.

Curious about hemp? Learn more about CWCBExpo. Now entering its 10th show in New York City, CWCBExpo is the premier B2B destination for all things cannabis — including hemp. Stay in the know by signing up for our email list and following us on Facebook, Instagram, and LinkedIn.

October 11, 2023October 17, 2024 By CWCBExpo

Cannabis Flower Market: By The Numbers

Cannabis flower has become the top seller in the cannabis industry in legal markets throughout the U.S. Although the term “cannabis” has evolved to include a wide selection of products, flower has proven to have immense staying power. Whether purchasing flower in bulk or in ready-to-smoke pre-rolls, flower is a top product for consumers.

Cannabis flower: King of the industry

The dried, cured, and ready-to-use buds of the cannabis plant dominate the U.S. cannabis market, leading the way in sales volume in most legal markets.

According to Statista, U.S. cannabis flower sales are projected to grow to more than $15 billion by 2025, more than double the $7.2 billion flower sales grossed in 2021. (This figure is separate from cannabis pre-rolls, a category that achieved $1.5 billion in sales in 2022 on its own.) Data from cannabis analytics company Headset paints a similar picture of rapid growth, from $2.36 billion in sales in 2018 to $4.83 billion through October 2022.

At the same time, flower’s market share is declining as a wider variety of cannabis products, like edibles and concentrates, gain popularity among consumers. Headset reported a five point decline in flower’s market share from 2018 to 2022, from 45.7 percent to 40.7 percent. And yet, it remains the most popular cannabis product by far. Headset also reported that, as of 2022, edibles accounted for 11.8 percent of total U.S. cannabis sales. The third-largest category, concentrates, accounted for 8.3 percen t.

Factors influencing the cannabis flower market

There are many factors influencing the growth of the cannabis flower market in the U.S., ranging from an expanding variety of cannabis products from breeders, to the launch of new legal markets, to price compression in maturing legal markets. Here’s a closer look at each of these factors and how they may impact cannabis flower sales in the coming years.

Cannabis product diversity

As the cannabis industry matures, a wider variety of product types are reaching dispensary shelves including concentrates, edibles, either, vape cartridges, tinctures, and topicals. Although cannabis flower remains the most popular among consumers in the U.S., these other product types offer alternatives. And as consumers in more markets become familiar with them, they’re increasingly choosing them in addition to flower.

Consumption product trends point to increased sales across flower and these other categories. The introduction of edibles, concentrates, topicals, and tinctures don’t preclude increasing sales of flower, as the data above shows. Expect consumers to continue to purchase flower even as they decide to incorporate other cannabis products into their routines.

New legal markets

Although flower’s market share may decline as new product types catch on, projections suggest that sales will increase. That’s especially true as new legal markets come online. For example, New York’s adult use cannabis market formally opened its doors in December 2022 and started seeing retail shops open in 2023. Grandview Research estimates that the New York adult use cannabis market alone will be worth more than $7 billion by 2025.

And that’s just one new legal market. New Jersey also recently began adult use cannabis sales in April 2022 and the market is similarly poised for growth. From April to December, adult use consumers in the state purchased $329 million worth of cannabis, and the market is estimated to be worth between $1.8 billion and $3 billion already.

As more states consider legalizing cannabis, the value of the U.S. market is only likely to increase. And, since cannabis flower typically holds a significant plurality of the market share in legal states, expect flower sales to increase as well.

Price compression

In many states, the price of cannabis flower is dropping, making it a more cost-effective option for consumers and contributing to profit margins for dispensaries. However, this also means the volume dispensaries need to sell to generate significant revenue has increased.

The average price per gram of flower fell across multiple state markets from 2020 through 2022, including in California, Colorado, and Michigan. Price compression occurs at varying rates in each state market based on supply and demand, and it’s especially volatile since each state must legally have self-contained supply chains.

In Michigan, for example, price compression was most dramatic during this period, with the price of flower falling from just under $14 per gram to nearly $4 per gram, according to Headset data. In California, the decline was less dramatic, with the price dipping from around $9 per gram to about $7 per gram.

Cannabis flower competitive landscape

The competitive landscape around cannabis flower is fragmented, including multi-state operators (MSO) with vertically integrated businesses that include cultivation as well as small, independent cultivators. These are examples of some of the biggest cannabis cultivators in North America, each with more than 1 million square feet of growing space.

Ultra Health: Based in New Mexico, Ultra Health has 9,213,000 sq. ft. of space dedicated to cannabis production, including greenhouses, warehouses, and outdoors growing space.
Mammoth Farms: Located in Colorado, Mammoth farms brings 3,484,800 sq. ft. of cannabis production to the U.S., including its greenhouses, outdoor grow, and warehouses.
Hexo Corp: Hexo Corp is a Canadian cannabis producer, responsible for a 2 million sq. ft. greenhouse operation in Quebec.
Copperstate Farms: Named after Arizona’s state nickname, Copperstate Farms maintains 1.7 million sq. ft. of greenhouses dedicated to the production of cannabis flower.
Los Suenos Farms: The Colorado-based Los Suenos Farms operates 1,428,000 sq. ft. of both outdoor grow space and greenhouses.
Canna Hub: Located in California, Canna Hub’s facilities total 1.2 million sq. ft. of greenhouses and warehousing space.
Village Farms: Village Farms operates out of Canada and has 1.1 million sq. ft. of greenhouse space in British Columbia.

There are many other cultivators, of course, including small scale grows that serve their local markets. In many states, home grow is also legal, allowing consumers to grow their own plants for personal consumption. It’s also worth noting that not all of the cannabis cultivated by the producers above is sold as flower — much of it is used in manufacturing extracts to be sold as concentrates or used as ingredients in infused cannabis products.

Cannabis flower never goes out of style

Despite rampant innovation and consumers’ increasing familiarity with new types of cannabis products, cannabis flower remains a favorite. Expect flower to lead the way as the cannabis industry grows in the coming years. At the center of all the exciting new cannabis products and legal markets coming online is the plant itself, and flower offers consumers one of the closest connections that the plant has.

May 15, 2023October 25, 2024 By CWCBExpo

Industry Deep Dive: Pre-rolls, Papers, and Cones

The pre-roll is one of the most recognizable cannabis products. It’s ubiquitous in many legal cannabis markets, both medical and adult-use. What many people don’t realize, though, is that the rapid growth of this market segment has led to serious innovation. Pre-rolls are no longer the simple 1-gram cones with a filter at the end. You’ll find lots of sizes, infusions, and more.

The types of pre-rolls available, how they are made, and the way they are marketed has evolved significantly since the emergence of the legal cannabis industry. This industry deep dive explores the pre-roll market growth, how the space has changed, and how cannabis businesses can leverage this market.

What does the growth of the Pre-rolls market look like?

Although it’s far from the largest cannabis market segment, pre-rolls represent a significant portion of the U.S. cannabis industry, accounting for 12.7% of market share and generating more than $1.5 billion in sales in 2022. It’s also a fast-growing space, more than tripling in terms of sales revenue since 2018, when the space generated $406 million in sales.

What’s driving that growth, though, may be most interesting. According to Harrison Bard, co-founder of Custom Cones USA, it’s rare that customers stop in just to pick up a few pre-rolls. Instead, they are most commonly added alongside an order as an afterthought or impulse buy.

“Pre-rolls are one of the most attached items,” he said. “[Cannabis] flower is still the most purchased item [in a dispensary] by itself, but pre-rolls have the highest attachment rate. They’re a great add-on item that can increase your customer’s average basket size.”

Leading the way in the space are three California companies Sublime Canna with $33.2 million in sales, Jeeter with $27.2 million, and Lowell Herb Co. with $26.4 million in 2020. The rapid growth of the pre-roll market segment has nearly all brands that produce pre-rolls eyeing expansion in the coming years. According to data from Headset and Custom Cones USA, 95.7% of preroll brands expected to expand following 2020.

The many types of Pre-rolls on the market

As the pre-roll market has grown, the variety of pre-rolls has increased as well. While it’s most common to find 1g pre-rolls in new and developing markets, more mature markets have an entire selection that includes multi-packs of pre-rolls (including two-packs, five-packs, and 10-packs), pre-rolled blunts, 0.5g pre-rolls, and the mini “dog walkers” that range between 0.25g and 0.35g per pre-roll.

Today, 1g pre-rolls remain the most common seller, accounting for 62.6% of the pre-roll center, according to the report from Headset and Custom Cones USA. Close behind are 0.5g pre-rolls at 43.2%, followed by 0.75g pre-rolls at 18.7%, >0.5g pre-rolls at 10.8%, and then >2g pre-rolls at 12.2%.

But it’s not just the size of pre-rolls that’s increasingly varied; it’s the types of pre-rolls available. One type of product, in particular, is becoming a mainstay of the sector.

“We’re seeing infused pre-rolls pick up way more quickly in new markets,” Bard said.

Infused pre-rolls are those that are brushed with extract and, sometimes, rolled in kief, providing an extra potent session. In fact, these types of pre-rolls accounted for 42% of all pre-roll sales in 2022. That’s a marked increase from 2018, when these types of pre-rolls represented just 12.7% of the overall pre-roll market segment, according to the report from Headset and Custom Cones USA.

There are also mixed strain pre-rolls, which include a blend of multiple cultivars (also called strains) designed to accentuate a particular set of effects. Pre-rolled blunts are also rapidly rising in popularity, Bard said.

And each of these product types come in a variety of wraps beyond the conventional refined white paper, such as hemp wraps and flavored wraps. Today, the classic wrap accounts for just 44.3% of the market, followed closely by organic hemp at 35% and unrefined brown wraps at 23.6%, according to the data from Headset and Custom Cones USA. Non-organic hemp is next at 17.1%, followed by natural leaf at 10.7% and cigarette tubes at 8.6%.

It’s also common to find a wider range of quality in more mature markets. A common misconception is that pre-rolls contain mid-shelf cannabis or shake that falls from the buds in transit or during the trimming process, but that’s not always true. While there are certainly lower quality pre-rolls out there, some brands have dedicated themselves to using top shelf flower in their products for consumers who want a more premium experience.

“A lot of companies are emphasizing fresh products. They’re making sure pre-rolls are created to order; they’re not just making 50,000 per month and letting them sit around for ages before going to retail,” Bard said. “I’d liken it to sushi in the grocery store — it’s only good for a few days. After these pre-rolls age too much, they’re processed into an edible or concentrate.”

How dispensaries can make the most out of pre-rolls and paper products

There are a few ways dispensaries can take advantage of pre-rolls (and other paper products like cones) to increase the average transaction size and bolster revenue. Follow these tips to make the most out of pre-rolls and related accessories at your dispensary.

1. Display pre-rolls prominently at the point of sale

Customers are unlikely to buy what they can’t see, and that includes pre-rolls. Just because they’re not the most sought after product doesn’t mean they shouldn’t be prominently displayed. And, since they’re a common add-on item or impulse purchase like a candy bar at the grocery store checkout aisle, placing them close to the register incentivizes your customers to add them to their basket at the last minute. Notably, not every state allows for this kind of product access on the dispensary floor, so you may need to get creative in states where customers can’t pick up the products themselves.

“Think about how pre-rolls are merchandised in the store,” Bard said. “Some dispensaries keep pre-rolls in buckets beneath the counter, but better merchandising increases sales. Make sure they’re eye-level behind the counter so customers are seeing them at the point of sale.”

2. Offer pre-rolls as a way to try out something new

Promoting your pre-rolls as a way to try out a different cultivar or brand can prompt customers to consider purchasing additional products. For example, if you’re stocking a new cultivar that you think will be popular, offering high quality pre-rolls that contain that flower could be a good way to get the word out among your customers and drive sales of that flower in the future.

“Pre-rolls are a good way to try out a brand,” Bard said. “It’s like a little sample, an easy way for someone to try new flower or a brand compared to buying an eighth or concentrate. It’s a great way to get more brand exposure by offering a lower price point to consumers that is more accessible.”

3. Keep a variety of pre-rolls in stock

As the pre-roll market evolves, there are more types of pre-rolls available. Don’t just stock the typical 1g pre-rolls; your customers are likely to expect pre-rolled blunts, multi-packs, and infused pre-rolls as well. Ensuring you have a diversified inventory of pre-roll products increases the odds that your customers will find the type of pre-roll they prefer.

“You definitely want to offer multi-packs and infused pre-rolls,” Bard said. “I would say flavors are important too. Variety is really important for a dispensary, so offer different flavors and strains.”

4. Include pre-rolls in product bundles to boost sales

If you want to encourage customers to purchase larger baskets, consider offering pre-rolls in a product bundle at a favorable price. Your customers will feel like they’re getting a price break on product, and you’ll use pre-rolls to drive larger transaction sizes. This can help boost revenue per customer and move more product, especially when you’re looking to bring in new inventory.

5. Sell rolling papers and cones for customers who roll their own

There are some consumers who prefer to work with flower they’ve purchased in bulk, as well as some who avoid pre-rolls due to a misconception that they are necessarily lower quality products. When it comes to these consumers, it’s good to keep rolling papers and empty cones on hand.

“Flower remains the number one selling category, so for people who don’t know how to roll, cones are really popular, and papers are popular with those who know how to roll,” Bard said. “Also, pre-rolls have this negative stigma that they’re low quality, so some people won’t buy them even though there are high-quality pre-rolls on the shelves. It’s still good to have empty cones for those customers.”

Automation and the cannabis pre-roll market

In the early days of the cannabis industry, it was common for dispensary employees to spend a portion of their day manually producing pre-rolls to sell throughout the dispensary. Now, that’s far less common, as automated rolling machines — some that are quite sophisticated — have become the norm. Automated pre-roll machinery is capable of producing thousands of pre-rolls per hour while freeing up dispensary staff to attend to more pressing tasks.

Paxiom by Canapa Solutions is one such pre-roll automation company that has pioneered this space with units like its JuanaRoll 8-channel, which is capable of turning out 4,000 pre-rolls per hour, according to digital marketing specialist and project manager Val Miller.

“All companies typically begin with hand packaging or semi-automatic volumetric systems,” Miller said. “As companies grow, it becomes very difficult to scale without automation to produce high productivity and consistency.”

Automation at this scale is most likely to be used by manufacturers who are creating high volumes of products to ship to retail locations throughout their state, rather than the dispensaries themselves. They can significantly cut down the time and costs required to produce enough pre-rolls to fill multi-packs at scale, for example. The volume needed to meet that demand can be quite immense, depending on how many dispensaries a manufacturer is selling to.

To improve scalability and meet growing demand, Miller said Paxiom developed the JuanaRoll as a modular solution that could begin as a one channel machine and expand as a company needs up to a maximum of eight channels. There are fully automated and semi-automated models available.

But just because pre-roll production is trending increasingly toward automation doesn’t mean the human element is entirely eliminated, though. Success still requires coordination between manufacturers and the automated equipment vendor.

“Filling and packaging pre-rolls is very difficult and requires a team effort between us, the manufacturer, the cone supplier, our customers and the dedicated people that operate them,” Miller said. “It’s important to work within a cohesive group that have the same goals and can collaborate.”

Pre-rolls are a growing wave of the future

The pre-roll space doesn’t often get as much press as whole flower or concentrated extracts, but it’s just as unique and lively. As pre-roll sales grow well beyond the $1 billion mark, the space has continued to evolve along with the rest of the cannabis industry. Clearly a mainstay for any manufacturer or retailer in cannabis today, pre-rolls are an important hallmark of the industry and will continue to be central to the space for years to come. Whether you’re serving consumers or manufacturing to meet the needs of dispensaries, understanding this growing market and how to best compete can be an important recipe for success.

April 3, 2023March 28, 2024 By CWCBExpo

Industry Deep Dive: Cannabis Testing Laboratories

Sometimes behind the scenes but always important, cannabis testing laboratories ensure all products in a dispensary are safe for consumers. These businesses help cultivators and manufacturers ensure their products are the very best they can be and that they meet state regulatory requirements before consumers can buy them. As a critical part of the cannabis supply chain in every legal state, it is important that producers select the right cannabis testing lab to partner with. This guide explains what to look for in a cannabis testing laboratory and the benefits of choosing the right one.

What do cannabis testing laboratories do?

Cannabis testing laboratories use a range of tests to analyze cannabis flower and manufactured products to understand cannabinoid potency, terpene profile, and whether any contaminants are present. The end goal of a cannabis testing laboratory’s efforts are to make sure that cannabis products are safe, effective, and high quality.

“It’s really important for all consumers and patients to have confidence that [their cannabis] is safe to consume and they have accurate dosage information to help them understand how they might react to the product,” said Sarah Ahrens, founder and CEO of the New Jersey-based laboratory True Labs for Cannabis.

Cultivators and manufacturers are generally required by law to partner with testing laboratories to ensure their products meet state standards before reaching the market. To do so, these labs employ a wide range of scientific techniques such as gas chromatography, mass spectrometry, and high pressure liquid chromatography. These techniques can be used in a wide range of different tests, many of which are required under state laws.

“We perform potency testing, terpene testing, full microbial panel … mycotoxins, heavy metals, pesticides, water activity, foreign materials, and moisture content,” said Alison Dixon, sales manager for Talon Analytical, a testing laboratory based in Long Island, New York.

How much does cannabis testing cost?

A full panel compliance test for cannabis simply typically ranges from $600 to $800, according to Ahrens. The price depends on a few factors, including the type of product to be tested. Cannabis flower testing, for example, typically costs less than testing edibles. Additionally, these costs may be influenced by the specific regulatory requirements in a state, what types of tests are required, and the individual analytes to be tested.

What to look for in a cannabis testing laboratory

When you’re looking for a cannabis laboratory to work with, you can usually find a list of licensed operators and the services they provide. In New York, for example, the Office of Cannabis Management (OCM) maintains a list of labs and sampling firms, Dixon said.

“It’ll show a list of what panels and which testing they offer at this time,” she added, “and you’ll be able to contact them individually, see their policies, and their pricing. So, you can make sure you’re comfortable working with them.”

Not all cannabis testing laboratories are created equal. When choosing a testing lab as a partner, cultivators and manufacturers need to ensure they are working with a reliable and efficient facility. There are a few ways to tell that a testing laboratory will deliver on its promises before paying for their services.

Accreditation

One of the most important things to consider when choosing a testing laboratory is whether it maintains ISO/IEC 17025 accreditation. A laboratory that successfully attains accreditation under ISO/IEC 17025 has demonstrated to an independent third-party auditor that they operate up to a high standard and generate valid, reliable results in which customers can be confident.

“[ISO accreditation] is something that is cross-industry; it’s not specific to cannabis, it’s specific to labs,” Ahrens said. “It helps ensure a lab maintains quality operations.”

Adequate facility and equipment

A laboratory is only as effective as its facility and equipment. It’s important to trust that a lab maintains sterile conditions and keeps its equipment properly calibrated at all times. Before starting a relationship with a laboratory, request a site tour to confirm the lab meets these expectations.

“Take a look at how they are set up and whether they’re clean,” Ahrens said. “Do they have good segregation between types of testing in different rooms to ensure there’s no cross-contamination or interference influencing test results?

“There are labs out there operating in a warehouse that’s poorly ventilated, with no concern for employee safety or OSHA standards, conducting all tests in one room,” Ahrens added.

For cultivators and manufacturers who want to ensure accurate test results, a facility tour is an absolute must. Seeing the actual laboratory before sending samples for testing is highly recommended.

Additionally, laboratories should have proper contingency plans in place so operations can continue should something go awry, said Leah DiGiacobbe, lab manager for Talon Analytical.

“Whether it’s personnel or equipment, if something’s going to go down, a lab should have redundancy plans in place,” DiGiacobbe said.

Experienced staff and leadership

A laboratory is a complex and technical environment, so the staff and leadership should have the credentials to back it up. Additionally, cannabis is a unique space, so it’s important that a testing laboratory’s team knows the plant and the industry.

“Look for experienced staff at the lab and understand their background,” Ahrens said. “How much cannabis testing experience do they have? Who is the lead scientific person and charge … and have they worked in cannabis before?”

In addition, consider the laboratory team’s experience with businesses like yours and the circumstances you might find yourself in. The best testing laboratories will be willing to adapt to your needs and be flexible whenever possible.

“For example, if there are certain terpenes the lab doesn’t look for when running a test and a cultivator or manufacturer is focused on enhancing a particular sesquiterpene, are they willing to provide additional services?” Ahrens said.

Efficient turnaround times

Demand often outweighs supply, and as a result, some labs have extremely long turnaround times before delivering results. During the wait, cannabis products can degrade or become subject to contamination, delaying products from reaching the market or skewing results.

“We’ve seen states coming online where there aren’t enough testing labs, so there’s a backlog,” Ahrens said. “Some labs take on too many customers at once and don’t have enough staff or instrumentation to process quickly, so they end up overpromising and under delivering.

Dixon said a typical turnaround time to expect in New York, for example, is about two weeks.

“Make sure that turnaround time meets your needs and helps you get the product to market,” Dixon said. “Usually, that’s around two weeks right now in New York … but everybody’s a little bit different.”

As the industry scales up, she added, you should make sure you partner with a lab that can handle the increased workload.

“Make sure a lab has enough room to grow,” Ahrens said, echoing Dixon’s sentiment.

Red flags to avoid when evaluating a lab

In addition to the above list of things to look for when considering a cannabis testing lab, Ahrens offered the following red flags to avoid when doing your research into what makes a good testing lab partner.

Lawsuits, fines, and sanctions: If a testing laboratory has been subject to lawsuits, fines, or state sanctions of any kind, their trustworthiness has been called into question in a major way. Consider avoiding any labs with spotty track records that include any of these incidents.

Doing business under multiple names: A testing laboratory that’s doing business under multiple names in various markets may be trying to hide some less-than-stellar history from its customers. Be wary of a testing laboratory that’s going by multiple monikers, unless the leadership team offers a compelling explanation for it.

Lack of transparency: If a testing laboratory refuses you a site visit or won’t explain whether they’re accredited or not, consider it a red flag. Testing laboratories need to be trusted partners, and that means open, honest, and forthcoming communication is a necessity.
Poor responsiveness: If a testing labs leadership team isn’t responsive, consider it a warning. If they’re too busy to reply, they may be too busy to test your samples and send results in a timely manner. Testing laboratories need to offer effective customer service, especially in a sensitive space like the cannabis industry.

If you encounter any of these red flags, reevaluate the testing laboratory you’re considering and determine whether partnering with them is worth the risk.

Benefits of working with a cannabis testing laboratory

When you’ve chosen a reliable cannabis testing laboratory as a partner, you’ll have access to several key benefits, including the following:

Regulatory compliance: The top reason testing laboratories are important is to meet regulatory guidelines in each state. In most states, there is a litany of contamination testing that must occur, including pesticide screenings, microbial analysis, mycotoxin testing, heavy metals testing, and residual solvent testing, to name a few. In addition, most states require cannabinoid potency testing, and some require terpene profiling as well.

Early contamination detection/prevention: Beyond regulatory compliance, cannabis testing laboratories are useful in detecting and preventing contamination before it becomes a problem. For example, a testing lab’s team can monitor a grow environment before plants are introduced to identify microbes like mold and mildew. They can also periodically provide environmental testing services throughout the cultivation process, identifying threats to a crop before they spread. Some testing labs may even offer remediation services should contamination be detected.
Research and development: Testing laboratories can help cultivators and manufacturers perfect their products by giving them deep insights into the compounds in their product. For example, if a cultivator is trying to create a blend of terpenes that give their flower a unique, memorable aroma and flavor, guidance from test results is critical to developing the right profile and a replicable process.

Dixon particularly stressed the importance of R&D testing to make sure your products are on the right track well before you have a large inventory that’s ready to ship.

“Before things are packaged up — maybe 10,000 vapes are all put into their packaging — we think it’s super important for people to send in a test sample and make sure that it would be passing state compliance regulations,” Dixon said. “That’s really a safety precaution that what you’re putting through for final compliance testing, after spending plenty of money and time packaging and getting it ready, has a really good shot of passing.”

Cannabis testing laboratories are often just mentioned when it comes to regulatory requirements, but many go above and beyond to help producers fine-tune their products and ensure their processes yield profitable results.

Don’t cut corners when it comes to cannabis testing

Cannabis testing laboratories represent a layer of quality assurance and validation between producers and consumers. Not only are they critical for passing muster with state regulations so your products can reach the market, but they can help you create a better quality product and build consumer trust. While cannabis testing laboratories represent an added expense, it’s well worthwhile to have a reliable one in your corner. From protecting your cannabis from contamination to helping you create top shelf products, an effective cannabis testing lab is an indispensable partner.

Meet these future partners at CWCBExpo! Held annually in June at the Jacob K. Javits Center in New York City, CWCBExpo is the first B2B show dedicated to cannabis and hemp in the Big Apple. As licensed adult-use dispensaries begin to open their doors and you weigh your options to get involved in the industry, CWCBExpo is just the place to meet your business partners, service providers, and trusted vendors. Registration is now open for our 2023 show!

January 30, 2023March 28, 2024 By CWCBExpo

Industry Deep Dive: Packaging for Cannabis Products

When it comes to cannabis products, much of the focus is understandably on what’s inside, but the packaging is just as important on many levels. From regulatory compliance to branding to merchandising, packaging has a tremendous effect on both the consumer experience and a company’s operations. That’s why it’s vital to think about packaging from the beginning, take time to review vendors, and settle on the right design. In this deep dive, we spoke with Michael Markarian, CEO of Contempo Specialty Packaging, to delve into the world of packaging and the many ways it can help make your cannabis brand a success.

Why is cannabis packaging important?

Cannabis packaging is important because there are explicit regulatory requirements surrounding how you package and label a product in each state with a legal cannabis market. Child-resistant packaging is a must, the colors and opacity of the container may be governed by state rules, and the label is subject to regulations. It’s critical to only use packaging that meets the regulatory standards mandated by the state in which you operate.

Additionally, when you ship a product to market, it becomes the closest link between your customers and your brand. Especially with all the work that goes into creating a cannabis product — cultivation, processing, and testing — it’s important to showcase that product in a package that reflects your brand’s style and draws consumers to it on the dispensary shelf. Memorable packaging can improve the odds that a customer recalls your products in the future, and using high-quality, sustainable materials gives confidence and conveys that the product inside is also high quality.

There’s other considerations for packaging that can play a role on your overall product line. Sustainability and environmental impact are a hot topic, with brands opting for recycled content and other methods for reducing waste. Storage and display are important too, ensuring that packages sit properly on the dispensary shelf.

What to look for in a cannabis packaging provider

When it comes to working with a packaging provider, it’s important to select a vendor you can rely on to deliver results. Markarian offers the below tips for evaluating cannabis packaging vendors.

1. Effective child-resistant designs

Among the top priorities when it comes to cannabis packaging is making sure it is child-resistant. For some types of products, such as squeeze tubes for topicals, this can be challenging, but any good cannabis packaging provider should have these options available for every type of product, from flower to edibles.

“[At Contempo], we started with an R&D mission to create child-resistant packaging for every type of cannabis product,” Markarian said. “For us, it’s how do we make packaging child-resistant and beautiful?”

That’s a unique prospect, Markarian added. In the past, child-resistant packaging for products like aspirin didn’t have such an emphasis on aesthetics. But for cannabis products, consumers expect more eye-catching visuals as they weigh their options.

2. State-by-state regulatory knowledge

The rules governing the cannabis industry can vary greatly from state to state and regulatory compliance is one of the highest priorities facing cannabis businesses. In such a fragmented landscape, it’s important to work with packaging providers that have a working knowledge of your states’ rules — especially if you’re a multi-state operator.

“You’ve got to meet the different regulations in different states,” Markarian said. “That’s very unique to cannabis and you don’t see it in other industries. If you’re launching a product nationwide in Walmart, you’re not going to have to comply with localized laws per state.”

In some states, packaging must be tamper evident. Some states require translucent packaging. Others require it to be opaque and mandate either white or black as the color. Others have more lax rules that allow for more personalized branding. Labeling is also subject to regulatory oversight, including the information on the label, the size of the typeface, and the font used. An experienced packaging provider can help offer guidance on all of these compliance questions.

3. Domestic and overseas manufacturing capabilities

Given recent supply chain challenges, working with a packaging provider who does not have total ownership of their manufacturing facilities overseas can lead to delays and shipping challenges. Consider choosing a packaging provider with at least some domestic manufacturing capabilities in case you need a priority order fulfilled quickly.

“With cannabis, it makes more sense for packaging to be made here [so the supply chain is] more nimble,” Markarian said.

Of course, having the overseas option doesn’t hurt when time is on your side. Generally more cost-effective, having your packaging created overseas can save money when you’re not in a hurry. Look for a provider that offers both options to give you maximum flexibility.

4. Adaptable service based on your needs

No two cannabis companies are alike, so it’s important to choose a packaging provider that’s willing to work within your needs. For example, some brands may have a completed brand and packaging design that’s ready to go, while others need help figuring out what their packaging will look like. Your packaging provider should be able to adapt as needed.

“The needs of a company really vary. If you have a full creative studio and marketing team, you might not need design. But some people don’t have that branding and marketing team, so we have a design studio that can help create it for them,” Markarian said.

5. Long-term, consultative business model

There are packaging companies that will simply fulfill your order and be done with it, and there are those that act more as partners. Those companies who focus on a long-term, consultative relationship will offer better customer service, guidance and advice, and faster service than those that perform a one-off job. If you’re looking to build a cohesive brand, you’ll want to build a long-term relationship with your packaging provider.

“The biggest thing is to align with a partner with a long-term mindset,” Markarian said. “I think packaging companies sometimes get a bad reputation where they want the immediate quick sale and don’t even want to talk to you if you don’t have a huge order you want to buy right away.”

Instead, look for businesses that prioritize relationships and sharing information and expertise. Packaging providers have a unique perspective on the industry, so they should do more than just fulfill orders. They can help you fine-tune the design of your packaging and offer suggestions about order volumes for new products, for example. And having a partner you trust means being able to put faith in those recommendations.

3 things to consider when purchasing packaging

Before you sign on the dotted line, check with your packaging provider for these three important factors.

1. Factor in lead time for design, manufacturing, and shipping

Packaging is not something that can be created overnight. When working with a packaging provider, it’s best to provide up to three months lead time from design to manufacturing to shipping to be sure you’ll receive your packaging when needed, Markarian said.

“It can be difficult for cannabis brands because they’re learning in real-time what their volume is going to be. They might launch a product thinking it’s going to sell 10,000 units in a month and then it sells 50,000,” he said. “That’s why it’s important to have a partner that’s responsive, adaptable, caring, and in it long-term.”

Especially for new products that require particular or custom packaging, the process is more than just designing it and producing it, Markarian said. Adequate lead time is a must.

“If it’s a new product launch, we need to develop, engineer, make sure it passes child-resistant testing — and to actually run that testing, we need 50 kids in a room trying to rip open your package — then manufacturing and shipping,” Markarian said.

2. Look for sustainable packaging options

Sustainability is a hot topic in the cannabis industry, often centering around the energy demands generated by cultivation and manufacturing facilities. Of course, packaging can also be a significant source of waste, making sustainability a key consideration.

Look for packaging providers who offer options like tin packaging and zero plastic, which serve to make their packaging infinitely recyclable. In some states, sustainability is even prioritized in regulations.

“We’re starting to see that in states like New York and Vermont that they’re actually writing sustainability into the regulations,” Markarian said. “Sustainable packaging is also a marketing vehicle … explaining the positive impact your brand is making by moving to that packaging.”

Even though sustainable packaging comes at a higher price point, studies show that consumers are willing to spend more on products they know create a positive impact. According to Markarian, brands can demonstrate their commitment to sustainability by including a QR code on their products’ labeling, which would direct consumers to a short video explaining the positive impact of their sustainable packaging. Markarian calls this concept “video-enabled sustainable packaging” and hopes it will become an important element of cannabis marketing.

“My hope is that a lot of cannabis brands will use video-enabled sustainable packaging and we can begin to position the cannabis industry in a positive light as people who care,” he said. “I’m hopeful packaging can raise awareness, encourage other brands, and be a catalyst [for more sustainable practices.]”

3. Think about replenishment well in advance

Given the significant lead times on packaging, it’s important to plan replenishment at least a quarter in advance, Markarian said. Plan carefully to guarantee you have enough inventory to fulfill your needs while you await your next order.

“By the end of quarter one, you should be ordering for quarter three,” Markarian said. “That way you’re not eating hand to mouth and scrambling.”

In addition, regularly consider your sales volume to see if you’re ordering too much or too little packaging. As you gather sales data over time, compare it to your packaging orders and adjust accordingly to make sure you’re not overspending on orders or underestimating your needs.

Packaging should be more than an afterthought

The packaging you choose for your cannabis products will be a crucial part of your brand. As the primary touchstone between your company and its customers, packaging should reflect how you want the market to perceive you. Taking the time to incorporate thoughtful design, source high quality materials, and bake in sustainability can help position your brand for success as markets mature. When you’re developing your cannabis products, be sure to give serious thought to the way they’ll look on dispensary shelves — it could be the thing that keeps consumers coming back for more.

If you’re looking to build your network in the legal cannabis industry and meet your next partners, join us at CWCBExpo on June 1 – 3, 2023 at the Javits Convention Center in New York City. CWCBExpo is the premier cannabis trade show in the northeast, so come see what it takes to make it here.

January 8, 2023March 28, 2024 By CWCBExpo

Industry Deep Dive: Cannabis Facility Security

Security is a key factor in designing, owning, and maintaining any cannabis facility. Safeguarding multiple threats and concerns including the threat of robbery and the risks of accidents, cannabis cultivation, manufacturing, and retail facilities have a lot to plan for. The necessity for proper security measures goes beyond simple regulatory compliance. This guide explains the many factors that go into cannabis facility security and why it is so important.

Why is security important in the cannabis industry?

Cannabis facilities require significant upfront investment, and when they are operational, they may hold hundreds of thousands or even millions of dollars in product. In addition, because cannabis is a federally controlled substance, many cannabis businesses struggle to access the banking system and have to deal primarily in cash.

For these reasons, cannabis businesses are often major targets for robbery. To keep employees safe and deter theft, dispensaries and other facilities must take proactive steps in securing both the product and cash kept on the premises. The threat of robbery is so great that every state with a legal cannabis market maintains minimum security requirements that all licensees must follow, and many cannabis businesses choose to go above and beyond these requirements to ensure the security of their operations.

What security considerations are important for a cannabis facility?

To protect their assets from crime, cannabis businesses need to consider a holistic and comprehensive security plan. Among those components are the following.

Surveillance

Surveillance includes security cameras, centralized monitoring software, and trained personnel capable of keeping tabs on every facet of a cannabis facility’s operations. Surveillance serves, first and foremost, as a crime deterrent. A robust surveillance system that includes visible security cameras and guards will dissuade most would-be criminals from attempting a robbery.

In the event an attempted robbery does occur, security cameras (seen and unseen) are effective at capturing evidence, while security personnel can respond immediately when alerted. Even if security personnel are unsuccessful in preventing theft, a proper surveillance system is likely to capture enough evidence for local authorities to investigate the crime — and recover any stolen assets, if possible.

Front entry

In any operational cannabis facility, there will be a lot of in-store customer traffic, staff, and security personnel, and outside contractors in the facility at any given time. To closely monitor everyone as they enter and leave the facility, a strict front entry procedure should be enforced. Everyone who enters the facility should present a government issued ID, as well as sign-in and sign-out requirements so there’s a record of who’s in the facility at any given time.

Additionally, front entry security personnel should be able to seamlessly communicate with other security guards on the premises, as well as supervisory personnel within the facility. That way, in the event of an incident, front entry staff can seal the exits to prevent theft or help facilitate orderly exit of the facility in case of an accident, reducing the likelihood of injury.

Inventory management and asset fortification

Strict inventory control is a top priority when it comes to preventing theft. Product, such as harvested cannabis flower, concentrates, and extracts, should be stored in a vault protected with electronic or biometric locks. For added protection, product should be stored in a high-security fireproof burglar safe that meets TL-15 or TL-30 ratings.

In addition, supervisory personnel should develop thorough standard operating procedures (SOPs) that track product from seed to sale. This means every last item should be individually tracked, from the moment the seed is planted to when the customer buys the product. Using inventory management software or a seed-to-sale solution can help manage this process, and in many cases, using this software is required by law.

Cash accounting

Cash must be properly stored and accounted for. This means it needs to be stored in secure tills and safes that are far away from entrances and exits. A bank grade currency counter should be used, as it provides precise counts quickly. Only authorized personnel should have access to rooms where money is stored and, whenever possible, these rooms should be supervised by senior security personnel.

Fire protection

It’s not just robbery that is a threat to cannabis facilities — fire could destroy crops and the cash stored on premises. This is an especially high risk for facilities where hydrocarbon extraction is performed, as solvents like butane and propane are flammable and potentially explosive. Should an accident occur, a fire protection system that includes fire alarms, sprinklers, fire extinguishers, and an emergency response plan could make the difference in saving lives and assets.

Cannabis facility security requirements in New York

While New York’s adult use market is still coming online, there are clear security requirements set for the state’s medical cannabis industry. These requirements are likely to be rather similar, if not the same, as those that will apply to adult use cannabis locations once licensees come online and begin operations. Here’s a closer look at what to expect when it comes to security requirements for cannabis in the Empire State.

Alarms and motion detectors

All cannabis facilities in New York must have a perimeter alarm that communicates with a designated team member in the facility, as well as a third-party commercial central monitoring station when any intrusion is detected.

Additionally, a failure notification system that provides audible text or visual notification of failures in the broader surveillance system must be installed. These failure notification systems must alert a designated team member within five minutes of failure by telephone, text, or email.

Video surveillance

Video cameras must be placed in all areas containing cannabis or cannabis products, as well as all surveillance rooms and all points of entry and exit. Each of these areas must be properly lit for surveillance. Cameras must be directed at any location where cannabis or cannabis products are being handled, stored, or disposed. Cameras at entry and exit points should be angled to capture the identification of people entering and exiting the facility.

Continuous recording during hours of operation is required, especially when cannabis or cannabis products are being handled. Motion activated recording is required at all other times. Cameras should be configured for remote access and recordings stored for 60 days. These recordings must be made available for immediate reviewing by state authorities upon request. All cameras must be able to produce a clear, color still photo, and all recordings must include an accurate date and time stamp that does not obscure the image. Still images must be exportable in standard image formats, including .jpeg, .bmp, and .gif.

Storage

Cannabis facilities in New York are expected to meet strict storage standards. These include ensuring all safes and vaults remain securely locked at all times, with keys, combination numbers, passwords, and biometric data only accessible to authorized personnel. Additionally, cannabis and cannabis products must be stored in these secured areas at all times. All cannabis products must be stored in a manner that protects against physical, chemical, and microbial contamination.

Transportation

Transportation to and from a cannabis facility is also a serious security concern, as cannabis products and cash in transit are generally at their most vulnerable. Prior to transportation, a shipping manifest must be completed in full and sent to the receiving facility at least two days before transportation occurs. A copy of the manifest must be kept in the vehicle during transportation. Copies must also be stored by the shipping and receiving facilities for a minimum of five years.

Cannabis and cannabis products in transit must be locked in a storage compartment not visible from the outside of the vehicle. Drivers are prohibited from making unnecessary stops while transporting cannabis and cannabis products. To further prevent attempted robberies, delivery times must be randomized and a minimum of two employees must staff the transport vehicle. Additionally, one employee must remain in the vehicle at all times so long as it contains cannabis or cannabis products.

Additional regulations

In New York state, detailed visitor logs must be kept for anyone who accesses a secured area. These logs must include the person’s name, date, and time they accessed the area, and the purpose of their visit. In addition, visitor logs must be able to be made available upon request.

Cannabis facility security systems and equipment must be kept in a secure location. The system and equipment must be tested twice per year, and the results of these tests must be kept for a minimum of five years. All equipment must have the ability to remain operational during a power outage for up to eight hours.

Finally, the exterior of a cannabis facility must be kept illuminated at all times. Doorways and windows must be securely locked and protected from unauthorized entry.

Cannabis facility security is a serious matter

Cannabis businesses are unique and lucrative targets for robbery, and proper security measures can deter and prevent these crimes. In addition, in the event a robbery is successful or an accident threatens human life and well-being, a proper security system and well-trained personnel can be the difference between a disaster and a swift, safe resolution. It is not recommended to cut corners regarding security when it comes to your cannabis facility; hire trained professionals to help you devise, implement, and maintain a comprehensive security plan.

November 17, 2022November 17, 2022 By CWCBExpo

What is Green Wednesday? How Your Cannabusiness Can Take Part

As Thanksgiving approaches, so does Green Wednesday, the second-largest sales day of the year for cannabis products after April 20th (4/20). Taking place the day before Turkey Day, Green Wednesday is notable for an annual spike in cannabis sales. This has made the day an unofficial cannabis industry holiday and important day for dispensaries and other cannabusinesses that hope to take advantage of the green rush. If you’re wondering how Green Wednesday could give your business an extra push this holiday season, read on for our tips to make the most of this new holiday.

What is Green Wednesday?

Green Wednesday is the day before Thanksgiving, where many dispensaries offer customer specials for the holiday.

Most dispensaries close their doors for Thanksgiving, giving their employees the day off to spend time with family and friends. In anticipation of the holiday closures, consumers make a stop at their favorite retailers the day before to stock up on supplies ahead of the Thanksgiving feast. The soaring sales that predictably occur each year gave birth to “Green Wednesday,” a day that many dispensaries now celebrate by offering deals and discounts to their customers.

How data led to the origin of Green Wednesday

Green Wednesday was first named by California cannabis delivery service Eaze in 2016, after the company noticed a considerable spike in sales the day before Thanksgiving. That trend has continued each year, with remarkable increases in sales creating a windfall for dispensaries and other cannabusinesses. And now, those sales fuel the continued growth and rise of Green Wednesday.

According to the enterprise software company Akerna, retail cannabis sellers hauled in nearly $98.2 million on Green Wednesday in 2021. Another analytical group, BDSA, found that Green Wednesday had the highest number of daily transactions per store of any day in November 2021. In California, for example, dispensaries saw an average of 280 transactions per store per day on Green Wednesday – about 40% more than the average for other days that month. In other words, Green Wednesday drives a lot more sales.

One of the product types that received the biggest boost on Green Wednesday was edibles, which saw a 67% increase in sales on Green Wednesday in 2021. That boost included cannabis beverages, a product type that saw a whopping 86% increase in sales. Similarly, topicals and tinctures received a 39% boost to sales, while capsule sales grew by 52%.

There are no apparent signs of this trend slowing down either! Retailers and other cannabis companies can get into the green holiday spirit with their own promotions.

5 ways to take advantage of Green Wednesday

Green Wednesday offers a big opportunity for cannabis businesses to boost sales and cultivate customer loyalty. This is especially true for dispensaries and other retail operations. Here are some ways to make the most out of Green Wednesday for your business.

Keep in mind while reading these tips that the marketing activities you can participate in may be restricted by your program’s regulations. Review your state’s laws or consult a cannabis marketing professional.

1. Offer special discounts

Deals and sales leading up to holidays is an easy way to boost sales. There are endless possibilities for promotional deals and discounts that retailers and beyond can take advantage of during the holidays. Consider promoting special offers for products or services in celebration of Green Wednesday to excite customers, from bundle deals and discounts to contests and giveaways.

2. Launch loyalty programs

While loyalty programs can help bring in customers and clients all year long, special holidays are a great way to build excitement and drive new sign-ups. Launching or promoting your customer loyalty programs in conjunction with holidays like Green Wednesday can help boost participation and keep your customers coming back in the future. You could offer bonus points for purchases made on Green Wednesday or offer a t-shirt or accessory for new signups on that day.

3. Plan Green Wednesday marketing campaigns

Take advantage of your network! Running Green Wednesday marketing campaigns is a great way to reach your audience, whether it’s on social media, via email, or on your website. Consider creating holiday gift guides, newsletters and other resources for getting the most out of Green Wednesday. And be sure to remind them that Green Wednesday is their last chance to stock up before Thanksgiving.

4. Promote new products

Green Wednesday is a great time to promote new products to the widest possible audience. With more customers visiting your locations with the intention of spending more money, it could be the perfect opportunity to introduce them to a new product you just got in stock — they might even find that it’s their new favorite. Promoting new products ahead of the holidays is also great for customers looking for gifts for their friends and family.

5. Create in-store experiences

Creating fun and engaging in-store experiences to celebrate industry holidays like Green Wednesday can bring even more customers in and encourage them to spend time shopping at your location. Consider hosting live music on special sale days or food trucks, so long as your events are in compliance with local regulations. Get creative and provide your customers with something fun to mark the start of the holiday season this Green Wednesday.

How retailers can prepare for Green Wednesday

After determining what deals and promotions you want to run, retailers should consider the following tactics to prepare for the big day.

Review last year’s sales: To best prepare yourself for Green Wednesday, it’s helpful to have an idea of what you can expect. Take some time to review your sales from last year and consider how things might be similar this year. This will give you a baseline understanding of how to plan for the big day.

Stock up from suppliers: The last thing you want to do on the second biggest sales day of the year is run out of inventory. Assess which products sold most previous Green Wednesdays and throughout the year to stock your dispensary accordingly.

Run ad campaigns: Advertising the special deals or discounts you plan to run is essential to a successful Green Wednesday. Make sure you start your campaigns early enough so customers know why they should stock up at your location.

Prepare staff: Green Wednesday means there can be quite the rush of customers, most of whom are looking to make big purchases. Make sure your team is trained and prepared for big crowds and a lot of questions, and set your schedule to handle the rush.

Are there B2B opportunities on Green Wednesday?

Green Wednesday is primarily a retail holiday that benefits dispensaries, but that doesn’t mean B2B cannabis companies can’t take advantage of the day as well. If you run a B2B company, consider how Green Wednesday may impact your clients. Don’t be afraid to be creative! Some possible ideas are:

Packaging manufacturers could create Green Wednesday themed packaging for retailers to offer their customers.

Accessory manufacturers, like glass pipe retailers or preroll cone brands, can offer special deals for new retail partners.

Software vendors can bundle useful tools together and offer a Green Wednesday discount, or encourage customers to upgrade to a higher tier at a special price.

Cannabis marketing companies can create content around Green Wednesday that can be used by clients to raise awareness and offer advice.

Although Green Wednesday is mainly about B2C sales, it’s become a landmark day for the entire cannabis industry. Using the excitement of the moment to your advantage can be a great way to build client loyalty and help them to maximize their Green Wednesday sales.

Celebrating the growth of the cannabis industry

Green Wednesday is right around the corner, and it has become a day of celebration and success for the cannabis industry. To make sure your cannabusiness is able to take advantage of Green Wednesday and drive success year round, CWCBExpo offers a bevy of resources to support you. And through the end of November, we’re offering special Green Wednesday discounts for turnkey booths. Contact a sales representative to learn more!

Visit our website for helpful guides and information, and don’t forget to sign up for our next CWCBExpo event at Javits Center in New York City on June 1 – 3, 2023.

November 3, 2022March 2, 2023 By CWCBExpo

What Is A Turnkey Booth? How They Make Trade Show Exhibits Easy

Trade shows and exhibitions are a must for cannabis companies looking to make connections and elevate their brand. Planning for a trade show or conference requires a lot of time and thought.

While there are many ways to exhibit your brand, every company needs a display booth to draw in attendees and start the conversation off the right way. Luckily, there are turnkey booths that take the guesswork out of setting up a booth while ensuring your presence at the show is impactful and memorable.

What is a turnkey booth?

A turnkey booth is one that is already set up and ready to go right when you arrive at the trade show. Turnkey booths generally include all the basics you need for a successful exhibit, including tables and chairs, lighting, cabinets, and a back wall. While some exhibitors prefer full physical and creative control over their display booth, many others opt for turnkey booths as a way to eliminate the upfront work of designing and building their booths, ensuring their display is set up and ready to go on arrival.

Considerations of a Turnkey Booth

Whether you are an experienced or first-time exhibitor, you may be wondering if a turnkey booth is right for your brand. Here are a few of the considerations regarding turnkey booths to help you decide whether one is right for you.

Less work: Most exhibitors opt for turnkey booths to eliminate the hassle of planning and setting up everything from scratch. Turnkey booths are set up on the show floor before exhibitors arrive and are ready for action so you can show up and start networking and interacting with attendees.
Professional setup: A well-designed and appointed turnkey booth can help company’s success at any exhibiting event. Opting for a turnkey booth for any exhibition is a great way to ensure you have a clean, professional setup that’s built to accommodate attendees when they arrive at your booth.
Easy to customize and break down after the expo: Turnkey booths make it especially easy to customize and highlight your company’s brand identity and presence. There is always the option for you to hand-carried items into or have other items shipped to the expo to display in the turnkey booth. Adding your own company logo, special signage and any promotional materials you may have brought to the expo give you an opportunity to enhance the turnkey booth and maximize interaction with attendees.

What to look for in a turnkey booth

If you’re planning on opting for the turnkey booth option, ask your sales rep for a complete account of what a turnkey booth includes. Some key factors to consider when looking for a turnkey booth include the following.

Furniture

It’s important to know that you have enough furniture and table space for your team to properly convey your brand. When considering a turnkey booth, ask how many tables and chairs are included, and whether that table comes with a skirt or tablecloth.

You’ll want to make sure that your seating and tables are set up in a way that is comfortable for your team and also welcoming to guests. This will enhance the likelihood that attendees feel comfortable approaching your booth to have a conversation with you and your team. You’ll also want to make sure that the table is big enough to space out your giveaways and any marketing material you plan to bring.

Lighting

Lighting can make or break an advertising opportunity. While some brands may be able to exhibit successfully using whatever lighting is provided by the event space, other companies require specific lighting to properly display their products. And in the cannabis industry, some companies’ products are the lighting!

For some exhibitors, the venue’s overhead lighting is sufficient, but you may be able to add on extra lights. Companies exhibiting products and merchandise generally require additional lighting to make their offerings stand out. In addition to spotlights and ambiance, lighting possibilities for turnkey booths include everything from neon signs to ring lights for selfie opportunities. It’s always a good idea to check with the exhibition to find out what kind of lighting is available for turnkey booth exhibitors.

Storage

Keeping your exhibit booth clean of clutter demonstrates to attendees and industry professionals that you care about making them feel comfortable and that you want to do business. Always double-check that the turnkey option provides enough storage for your company’s needs. In addition to space for your team members to store their belongings, you’ll always want to confirm there is somewhere to store any overflow of freebies or marketing material that is safe and out of the way. For some exhibitors, the space underneath the provided table (covered by a table skirt) is sufficient.

Branding options

Some turnkey booths include the creation of signage that displays your company name. What this looks like can vary, but you can expect to have your name hanging from the top of the turnkey booth or from the table.

Decor

Prioritizing cohesive decor is absolutely essential when planning an exhibitor booth. Keep in mind that guests and exhibitors will likely be drawn toward displays that are professional, organized, and uniform. Because many turnkey booths include rugs or back walls (sometimes pipe-and-drape covering the wall or booth behind), finding out the color scheme in advance will make it easier to plan your branding accordingly.

How much does a turnkey booth cost?

The costs of turnkey booths vary depending on the trade show or convention you’re attending.

CWCBExpo offers an affordable turnkey booth option. Visit our website to sign up as an exhibitor, or contact our team for more information on turnkey booths for the June 2023 event.

Preparing for success

Planning ahead is the best way to ensure success at any cannabis exposition. Designing or ordering your display up as far out as possible will ensure you are prepared with everything you need, and provide time for any changes before the event comes around. Exhibitor passes and turnkey booths for the June 1 – 3, 2023 CWCBExpo are currently on available for a discounted rate until Nov. 1, 2022.

Precision Quality & Compliance, Jason Thomas

October 20, 2022October 31, 2022 By CWCBExpo

Regulatory Compliance and Cannabis: What Entrepreneurs Should Know

The legal cannabis industry is emerging from decades of nationwide prohibition, even if only on the state level for now. The highly regulated nature of this newly legal industry means compliance is especially important for cannabis entrepreneurs, but what exactly does that mean? This guide offers expert insights on why compliance is key in cannabis and how your business can ensure it stands up to evolving regulatory frameworks and industry standards.

What is compliance?

Compliance refers to an organization’s adherence to regulatory requirements and industry standards. These include laws and regulations from government agencies, as well as guidelines like International Organization for Standardization (ISO) standards or Good Manufacturing Practices (GMP). Compliance serves to demonstrate that a company is operating in a legal manner that takes quality assurance into account, giving regulators, partners, and consumers confidence that they can trust in the products and services a business provides.

Why is compliance important?

Compliance not only demonstrates an organization’s commitment to quality and establishes a strong reputation, but also prevents it from becoming subject to lawsuits and fines. For cannabis businesses, compliance is especially important as the industry is highly scrutinized. According to Jason Thomas, founding partner at Precision Quality and Compliance, adherence across every facet of a business’s operations – from quality assurance to risk management to governance – is “the most critical function in cannabis.”

“Without it, wealth generation and social equity discussions go away. We won’t have a business to pass on if we don’t adhere to compliance,” Thomas said. “We’re already seeing it affect businesses with violations and fines from the NJ [Cannabis Regulatory Commission].”

As east coast markets like New York and New Jersey come online and regulators establish the requirements by which cannabis businesses must operate, entrepreneurs should be focused on establishing strong foundations that set them up for success in the long term, Thomas said.

“Cannabis and hemp play at the cross-section of industries like pharma, food and beverages, food supplements, medical devices, energy, and technology,” Thomas said. “Pulling regulatory standards from these industries into this emerging space … is what the [Food and Drug Administration] (FDA) and international governing bodies will expect.”

What does it take to be compliant in the cannabis industry?

It might sound like a tall order to consider the compliance standards impacting such a diverse range of spaces, but that’s what it will take for cannabis companies to survive and thrive in a global, regulated industry. According to Thomas, this means establishing a sprawling set of compliance standards that impact everything from the way you deal with partners to the way you train your personnel to the way you make products or deliver services.

“Compliance is a differentiator,” he said. “GMP certified companies will get better deals, more shelf space, and have a competitive advantage. It all comes down to project management and having the right skills on your team.”

Contractual compliance

Contractual compliance covers the supply chain your business works with, including the type of contracts and termination agreements you have in place with partners. No cannabis business works alone. Cultivators will have to partner with packaging companies, for example, while dispensaries need to rely on growers and manufacturers to obtain products. Who you work with can impact your overall compliance and quality assurance, so having the right controls, documentation, and processes in place is essential to protecting the reputation of your business.

Operational compliance

Operational compliance is a wide-ranging category that touches all aspects of a business, including accounting, human resources, and quality assurance. Ensuring operational compliance means planning for things like social equity rules and tax rules like adhering to the Internal Revenue Service’s (IRS) Section 280E.

Operational compliance also includes considerations like Occupational Safety and Health Administration (OSHA) guidelines and workplace safety. This is especially important in manufacturing, Thomas said, as cannabis manufacturers often work with potentially hazardous or flammable chemicals.

Thomas recommended creating standard operating procedures (SOPs) for each department to serve as guidelines on how to remain compliant with existing regulatory requirements and industry standards, then hiring internal auditors to put those SOPs to the test.

Data compliance

Technology and data compliance refers to an organization’s cybersecurity standards and how they respond in the event of a data breach. In the age of consumer data privacy laws like the European Union’s General Data Protection Regulation (GDPR) or the California Consumer Privacy Act (CCPA), organizations are responsible for protecting consumer data and alerting users when their information may have been compromised.

Establishing an IT team dedicated to data security and cyberattack response planning, as well as a system for monitoring vulnerabilities and threats, is an important part of compliance even for companies that don’t consider themselves tech-centric. Most businesses accept customer payment information, for example, making them a primary target for hackers whether they are technologically focused or not.

Training compliance

Your compliance program is only as good as your personnel adhering to the SOPs you develop. Ensuring that your new hires are given a thorough explanation of the rules governing their role and why they’re in place – as well as the processes they must adhere to so you can document ongoing compliance – is key to making sure your SOPs are carried out in the workplace.

“Train your people and take care of your people,” Thomas said. “There’s something to be said about having continuity in staff that’s well-trained.”

Consider employing a training manager who oversees the onboarding of new recruits. This person can make sure staff is fully equipped to do their jobs within the confines of the compliance plan you’ve established.

Tips for cannabis business compliance

The following tips can help cannabis businesses develop a comprehensive compliance plan that gets them started on the right foot, even as regulations emerge and evolve.

Know your business model

A common mistake when it comes to compliance planning, Thomas said, is that entrepreneurs are so laser-focused on licensing they forget to thoroughly develop their business model.

“You need to pick a license type, but you should also get more refined,” he said. “You want to be a processor, but what type of processing? Are you making beverages, extracts, or something else? There are different staffing needs, formulation, training for each of these business models.”

Establish a timeline

When thinking about compliance, it’s important to develop a detailed roadmap, Thomas said. This roadmap should include milestones that you target as your business plan rolls out — don’t worry, this roadmap can be adjusted as needed, but it’s important to have one in place.

“You should know when to hire a lawyer, when to hire accounting,” Thomas said. “What are your dependencies, like investors or lending? It’s a living document, but it’s all about that timeline.”

Don’t reinvent the wheel

In most cases, you can make important inferences about the regulatory framework that will impact legal cannabis by looking at other highly-regulated industries and the businesses operating within them.

“Copy frameworks like biotechs and big pharma,” Thomas said. “That will make it easier to slide compliance programming into the regulatory framework and execute it.”

He also recommended looking at what’s worked and what hasn’t in state markets that legalized cannabis earlier to avoid the same pitfalls as other businesses.

“Look at different markets and how to avoid their issues. We’re in a unique position to stand the east coast market up faster,” he said.

Consider facility design

When establishing a facility, it’s important to think ahead. Even if the current regulatory framework doesn’t require considerations like ISO standards or GMP certification, you should design facilities with these likely future requirements in mind. Thomas gave the example that cannabis manufacturers should adhere to the ISO22000 standards used for food safety management, even if it’s not currently a regulatory requirement.

“If you build a manufacturing facility that doesn’t meet ISO22000, and a regulatory body says at a later point in time you have to be certified, you’ll need to stop manufacturing, retrofit your facility, establish new compliance controls, and you’ll be out of business,” Thomas said. “What small business can weather 12 months out of business?”

Thomas advised starting to implement ISO9001 standards now and incrementally building out a facility.

“You can put ISO22000 on top of that, and it makes GMP easier to adopt later,” he said.

Vet your partners

Compliance doesn’t start and end with your organization. It extends to your entire supply chain. When building your supply chain and choosing partners to work with, vet them fully to understand their own compliance and quality assurance processes. Trust your partners to operate to the same standards as your team.

“Partners are critical,” Thomas said. “Put yourself in a consumer’s or patient’s shoes: If I purchase something grown by a great cultivator but processed by a shoddy manufacturer, the product is not quality. Consistency in the supply chain and being able to depend on your partner operators is paramount.”

Never stop working on compliance

Compliance is an ongoing process. Just because an organization is compliant at a moment in time doesn’t mean they will remain that way in the future. Creating a situation where your compliance SOPs are continuously reviewed and updated while your operations are subjected to internal audits will ensure you remain compliant consistently.

“[Big pharmaceutical companies] spend millions training and incentivizing their people; they have lots of people monitoring compliance and making changes daily,” Thomas said. “Take what works about that kind of strategy and scale it down to your business.”

Compliance is comprehensive

Ongoing compliance at every stage of your operations and throughout your supply chain is critical to protect the longevity of your business and the quality of your products and services. Although the race to secure licensing and real estate is top of mind for everyone, only the operators who do so with compliance in mind will survive the maturation of the legal cannabis industry, when agency regulations, ISO standards, and GMP certification become the norm. Ask yourself whether your business has a comprehensive compliance plan in place, and if not, begin working today to establish one.

New York State Cannabis Business Association Exhibit Booth, NY 2022

October 13, 2022October 31, 2022 By CWCBExpo

11 Tips For First-Time Cannabis Expo Exhibitors

Trade shows and exhibitions are an important tool for businesses in any industry, but especially so in cannabis, where face-to-face connections are quite important. In-person expos offer an excellent opportunity for new and old companies to connect with other brands and industry professionals for the mutual benefit of their businesses. If you’re exhibiting at a trade show or other event for the first time, these tips can help you make the most of your time on the show floor.

1. Set goals for your trade show attendance

What do you want to achieve at the show? Think about what you want to get out of your experience before the show starts. This way, you can shape your booth around achieving those goals. For example, if your goal is to grow your contact list by 5%, you may want to offer free items, promotions, or other incentives in exchange for signing up for company emails at the booth.

2. Take inventory of what you need for the show

Planning in advance is essential to ensuring you’ll have a successful experience as a first-time exhibitor. Make a list of exactly what you’ll need and gather these items well before the show date. This advanced planning gives you time to note if anything is missing without having to scramble for it at the last minute. Inventory needs for a trade show can include all furniture, lighting, signage, giveaways, and takeaway materials like business cards or flyers.

Some expos and trade shows offer turnkey booths to eliminate the hassle of planning. A turnkey booth is set up and ready to go right when you arrive. These booths generally include essentials like tables and chairs, so all you have to bring is some literature – and yourself!

If you’re building your booth from the ground-up, it’s smart to begin planning as soon as you decide to exhibit. Larger, custom booths require design and construction that needs to be booked well in advance.

3. Figure out how everything is getting there

If you plan to hand carry your items to booth setup – meaning, you don’t need freight service to bring items to your booth – plan what you need in advance. Make sure all your items fit in your car before you head to the show. This will allow you time to figure out what works and make arrangements for items or supplies that don’t. Be sure to follow the venue’s rules for unloading your items, including time limits and parking instructions.

If you do need freight service, venues are contracted with a specific service to help load your items, build any fixtures if need be, and send everything back to your chosen address when the show is over. You’ll receive this information from the expo organizers when you sign up for your space.

4. Confirm staff scheduling

Having some help at your booth can go a long way. Whether your staff or hired help, knowledgeable people who can speak dynamically about your business help you connect with more attendees. Don’t wait to get this staff in place – schedule your team members or other help in advance. Give everyone at your booth the details they need to have an educated discussion about your company with attendees.

5. Let people know you’ll be there

Once plans for your booth are in place, it’s time to advertise your attendance. Use social media, email marketing, and other channels to let the world know you’ll be exhibiting at the event. You can also come up with marketing strategies to help you meet potential clients.

In addition to advertising through your own channels, following and interacting with the trade show on social media is an easy way to let other attendees and brands know you are exhibiting. Brands looking for extra exposure may also want to consider becoming a sponsor of the event.

6. Promote other exhibitors and speakers

Supporting others is a great way to have them return the favor. If you have someone walking the floor or attending panel sessions, make sure they promote others on social media and tag them along with the trade show. Not only does promoting others generate good will for your brand, it helps let people know you’re attending the show too by giving you a consistent stream of quality content for your own channels.

7. Engage meaningfully with your visitors

You have the opportunity to make thousands of first impressions at a trade show. Greet each person who comes to your booth with sincerity and enthusiasm. Refrain from sitting down too much and avoid focusing on your phone. Rather, watch for attendees looking to speak with you and be ready to interact with them. Try these icebreaker questions to start a meaningful conversation with your visitor:

What brings you to the expo?
Where are you traveling from?
What’s your profession?

How you act at the booth can be a reflection on your company, too. Try to avoid looking down at your phone in between visits, instead saying hello to passersby or offering literature about your company.

9. Walk the show floor

It’s important to remember that networking is just as valuable as having a conversation at your booth. It’s a good idea for at least one person from your team to walk around the show floor, checking out other booths and making connections with fellow exhibitors. This team member is usually responsible for distributing and collecting business cards, as well as conversing with exhibitors and attendees. In addition to connecting and networking with other companies, walking the trade show flow is an easy way to head home with a bag full of useful giveaways.

10. Attend events and after-parties

Most trade shows have events and after-parties, where you can follow up with people you met throughout the day. While these may sound like an optional fun time, it’s where deals get done! It’s always wise to take advantage of these opportunities and attend as many after-parties as you feel up for.

11. Evaluate your experience at the end of the show

Taking time to reflect on your experience once the trade show closes to plan a more successful show the next time around. Sit down with your team to discuss the events of the day. You may even want to survey them about their experience. Some questions to consider asking your team are:

Was the show worthwhile?
Did you generate strong leads or make quality contacts?
What were the most valuable moments for you?

12. Follow up with your contacts

After a trade show, it can be difficult – nor is it expected of you – to remember each and every conversation. That’s where a strong follow-up comes into play. Be sure to send an email or schedule a call with the contacts you’ve made. For best results, try to follow up within a week or two of the event to make sure your conversations are still fresh in the other attendees’ minds.

Ready to rumble?

Ready to exhibit at your first trade show? Exhibitor passes and turnkey booths for the June 1 – 3, 2023 CWCBExpo are currently on sale for a discounted rate until Nov. 1, 2022. Follow these tips to help attract and engage others for a successful exhibition that generates buzz and business for your company.

June 4 - 5, 2025 Javits Convention Center

6 Interesting Hemp Products That Go Beyond CBD

3 factors shaping the state of the hemp market

There’s a growing awareness of hemp’s benefits

There’s a consumer want — and need — for eco-friendly alternatives

Hemp is in a more favorable regulatory environment

6 innovative hemp products to get excited about

1. Food products

2. Construction materials

3. Fuel

4. Clothing

5. Paper

6. A replacement for plastic

Can hemp save the planet? It’s certainly possible

Cannabis flower: King of the industry

Factors influencing the cannabis flower market

Cannabis product diversity

New legal markets

Price compression

Cannabis flower competitive landscape

Cannabis flower never goes out of style

What does the growth of the Pre-rolls market look like?

The many types of Pre-rolls on the market

How dispensaries can make the most out of pre-rolls and paper products

1. Display pre-rolls prominently at the point of sale

2. Offer pre-rolls as a way to try out something new

3. Keep a variety of pre-rolls in stock

4. Include pre-rolls in product bundles to boost sales

5. Sell rolling papers and cones for customers who roll their own

Automation and the cannabis pre-roll market

Pre-rolls are a growing wave of the future

What do cannabis testing laboratories do?

How much does cannabis testing cost?

What to look for in a cannabis testing laboratory

Accreditation

Adequate facility and equipment

Experienced staff and leadership

Efficient turnaround times

Red flags to avoid when evaluating a lab

Benefits of working with a cannabis testing laboratory

Don’t cut corners when it comes to cannabis testing

Why is cannabis packaging important?

What to look for in a cannabis packaging provider

1. Effective child-resistant designs

2. State-by-state regulatory knowledge

3. Domestic and overseas manufacturing capabilities

4. Adaptable service based on your needs

5. Long-term, consultative business model

3 things to consider when purchasing packaging

1. Factor in lead time for design, manufacturing, and shipping

2. Look for sustainable packaging options

3. Think about replenishment well in advance

Packaging should be more than an afterthought

Why is security important in the cannabis industry?

What security considerations are important for a cannabis facility?

Surveillance

Front entry

Inventory management and asset fortification

Cash accounting

Fire protection

Cannabis facility security requirements in New York

Alarms and motion detectors

Video surveillance

Storage

Transportation

Additional regulations

Cannabis facility security is a serious matter

What is Green Wednesday?

How data led to the origin of Green Wednesday

5 ways to take advantage of Green Wednesday

1. Offer special discounts

2. Launch loyalty programs

3. Plan Green Wednesday marketing campaigns

4. Promote new products

5. Create in-store experiences

How retailers can prepare for Green Wednesday

Are there B2B opportunities on Green Wednesday?

Celebrating the growth of the cannabis industry

What is a turnkey booth?

Considerations of a Turnkey Booth

June 4 - 5, 2025
Javits Convention Center