Marijuana Venture

AWARD-WINNING NATIONAL BUSINESS MAGAZINE VOLUME 3 / ISSUE 4 M A R I J U A N A

THEVENTURE JOURNAL OF PROFESSIONAL CANNABIS GROWERS AND RETAILERS WINE WEED& Striking parallels reveal strategies for cannabis marketing PEST CONTROL LAWS

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Botany Unlimited West Coast Horticulture Bios UrbanGro Trimpro features 54 WINE AND WEED Marijuana Venture compares the ways cannabis and wine are created, marketed and sold in this multi-part story that features wine entrepreneur Ross Mickel and Jian Malihi of Clarity Farms 76 TENNESSEE HEMP After 70 years, a new generation of farmers has resumed hemp cultivation in Tennessee, but they’ve quickly discovered the regulations are just one of the many challenges 90 QUINCY GREEN High-end and sustainable, Quincy Green takes a conscientious approach to growing cannabis, with a commercial greenhouse and unique product strategy

ABOUT THE COVER: Jessica Corcorran shows off a hefty branch from Clarity Farms’ fall harvest. The Columbia Valley’s prime soil and climate contributed to Clarity’s success. Photo by Gary Delp. Leslie Olson checks out her plants at the Quincy Green grow facility. MJVenture

6 | Marijuana Venture // April 2016 Terpp contents

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LIVING THE DREAM 40 | Shawn DeNae

Marijuana Venture’s goal is to provide the best information possible to the legal, licensed, commercial marijuana business. Our mission belief is that a great business publication will help professionals in the industry create more efficient and profitable businesses.

8 | Marijuana Venture // April 2016 GeoPot Staff

Greg James Garrett Rudolph Lisa Smith Aaron Greenreich Publisher Editor Sales Manager Account Executive Greg founded Topics Entertainment After eight years as a newspaper Lisa is a longtime advocate for Aaron joined Marijuana Venture af- in 1990 and grew it to be the largest reporter, photographer and editor, legal marijuana and feels fortunate ter years of sales account manage- privately held consumer software Garrett helped launch Marijuana to be a part of the industry. She ment in the construction industry company. After graduating from Venture in March 2014. He’s an especially enjoys working with and and management in the music busi- Bellevue High School in 1975, he avid golfer, IPA drinker, sports fan, getting to know our advertisers. If ness. He enjoys all things outdoors, enlisted in the Navy. He was honor- workaholic with a deep love-hate you’re interested in getting your playing music and causing trouble ably discharged after serving from relationship with technology. message out and in front of this with his young sons. 1975 to 1979. He has four kids and new & evolving category, drop her enjoys skiing, hiking, scuba diving, [email protected] a line, we’re certain she can help [email protected] sailing, biking and foreign travel. and would love to hear from you.

[email protected] [email protected]

Marijuana Venture CONTRIBUTORS – Marguerite Arnold Karen Canton Sara Demianycz Ammon J. Ford Alexandra Harrell Martina Jaccarino Patrick Wagner Chloé Mehring Shelby Talmadge Alen Nguyen Staff Writer Graphic Designer Marketing Karli Petrovic Resident avocado enthusiast and Chloé was born and raised in Wis- Shelby is CEO at Tahoma Growers, Katie Podein Street Fighter II champion, Patrick consin, where she graduated from St. a family-owned producer/processor Wagner graduated from the Univer- Norbert College in Media Commu- in Goldendale, Washington. Like Lauren Rudick sity of Washington with a degree in nications and Graphic Design. In her most Pacific Northwest natives, she Brenda Wells communications in 2014. When he free time, Chloé enjoys photography, enjoys hiking with her dog Juno, isn’t making snarky quips around woodworking, exploring the Pacific yoga and “product testing” for the the office, he works on editing, re- Northwest and making incredible farm. She studied history at the searching, writing and the concept grilled cheese sandwiches. University of Washington, a degree of compound modifiers. she has used but once.

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A MESSAGE FROM THE PUBLISHER Running a lemonade stand few years ago, standards with no deviation from formulas A my daughter, who to create consistency is a big leap for many, is now 13, ran a very and we haven’t found anyone who could successful lemonade make that transition successfully.”) stand for several week- In the past, I’ve listened to a few speakers ends in the summer. at the numerous marijuana conventions and She made me proud, shows, and often leave feeling completely because she generated underwhelmed. Many of the so-called “ex- some really decent money and donated all perts” are the same tired speakers who travel of it to a big hospital in town. the show circuit and possess very little re- It was a wonderful way for her to learn al-world business experience. To put it blunt- about business. However, it was also an ap- ly, winning a Cannabis Cup 20 years ago is propriate thing for a 10-year-old to do because not the type of qualification I’d be looking PUBLISHER it wasn’t very complex or difficult. There for in someone to advise me on setting up GREG JAMES [email protected] were no taxes, no employees, no lease (we a commercial cannabis cultivation business. set up in a park), no insurance, no business Recently we published an article on pest EDITOR license, no inspections, and it was all cash. In control written by Suzanne Wainwright-Ev- GARRETT RUDOLPH fact, her lemonade stand ans. Several readers [email protected] was so simple to oper- commented on her ar- SALES MANAGER ate, that I’d suspect most OPERATING ticle, and thanked us LISA SMITH 10-year-olds could run for publishing content [email protected] one successfully (with A LEMONADE from a highly-qualified ACCOUNT EXECUTIVE a bit of help from mom- expert on agricultural AARON GREENREICH my or daddy, of course). pests. I found Suzanne STAND IS A STAFF WRITERS I’m guessing a few while researching the CHRIS BAYLEY readers might see where Cultivate’16 show in PATRICK WAGNER I’m going with this. FAR CRY FROM Ohio. For those unfa- Operating a lemonade miliar with Cultivate, GRAPHIC DESIGN CHLOÉ MEHRING stand is a far cry from RUNNING A it’s an annual trade running a real juice show in Columbus, MARKETING REAL JUICE SHELBY TALMADGE business, in which the“ Ohio that is organized competition includes by the American Hor- CONTRIBUTORS heavyweights like Min- BUSINESS ticultural Society. This Marguerite Arnold Alen Nguyen Karen Canton Karli Petrovic ute Maid and Tropicana (owned by Coke and year, it will be July 9-12. For most tradi- Sara Demianycz Katie Podein Pepsi) and various other smaller, but no less tional businesses in controlled environment Ammon J. Ford Lauren Rudick Alexandra Harrell Brenda Wells experienced, competitors like Naked Juice agriculture (CEA), it’s a must-attend annu- Martina Jaccarino and Odwalla (also owned by Coke and Pepsi). al event. If you’re a commercial marijuana MARIJUANA VENTURE VOL. 3, ISSUE 4 When people ask why a fair number of grower, or aspire to be one, I strongly sug- Marijuana Venture (ISSN #2376-0710) is published monthly cannabis businesses are struggling, I use the gest that you investigate Cultivate. At Mar- by MJ Directions LLC. PO Box 1419, Renton, WA, 98057. Phone: (425)656-3621. Website: www.marijuanaventure. lemonade analogy. It requires a vast leap of ijuana Venture, we’ve decided to attend — com. Copyright 2015 by Marijuana Venture. All rights re- served. Reprinting, in whole or in part, is expressly forbidden experience, knowledge and skills for mari- and exhibit — this year because we believe without written permission from the publisher. juana growers who learned their trade from that the future of professional cannabis cul- ADVERTISING the pages of High Times to go from an in- tivation lies outside traditional “pot culture,” For advertising rates, call (425)656-3621 or email Greg@ MarijuanaVenture.com. door, illegal, garage grow to a successful and with the same folks who have run com- SUBSCRIPTION SERVICES commercial ag operation. mercial ag businesses for decades. For subscription services, please call (425)656-3621, visit www. marijuanaventure.com or email Editor@MarijuanaVenture. As tough as it might be to acknowledge, I’m not suggesting you skip the tradi- com. For change of address, please include the old address and it’s no different than my daughter going tional pot shows. However, I’m convinced new address, along with an address label from a recent issue, if possible. Please allow up to three weeks for address to be from running a lemonade stand to manag- that it makes good sense to occasional- changed. If an address is not updated when the magazine is mailed, we are not responsible for delivery of your magazine. If ing a commercial juice factory. ly step out of the comfort zone where the Post Office alerts us that your magazine is undeliverable, we (A few issues back, Tim Smale, co-found- “preaching to the choir” has become stan- will suspend our subscription until a correct address is received. er of Remedy Compassion Center in Au- dard operating procedure. Marijuana Venture assumes no responsibility for any claims or representations contained in the magazine or in any adver- burn, Maine, wrote: “The transition from tisement. All materials contained are for educational purposes and intended for the legal marijuana business where allowed a small cultivation to a sophisticated pro- GREG JAMES by state law. Marijuana Venture does not encourage the illegal duction process where cultivators follow PUBLISHER use of any of the products contained within.

14 | Marijuana Venture // April 2016 Precision Extraction Green Thumb

CANNABIS CALENDAR

Outside of the CEA Learning Center West

More information: indoor.ag.

Course focuses on controlled April 9: Just in time for businesses to start getting details in place, the Alaska Marijuana Industry Association will environment agriculture host a trade show and job fair April 9 at SOUTH WINDSOR, Conn. — Growers sales manager John Kozlowski said. “We the Dena'ina Center in Anchorage. Supply will host its next CEA Hands-On want to share that knowledge with these The one-day event, co-hosted by the Na- Workshop on April 27-29 at the Growers growers.” tional Cannabis Industry Association, will Supply CEA Learning Center West in South Industry experts will also be teaching run from 10 a.m. to 5 p.m. It will feature a Windsor, Connecticut. The event will be the courses on aquaponics. business-to-business trade show with ven- fourth installment of the company’s ongoing There will be six more workshops held dors, speakers and presentations, along with series of workshops planned for 2016. during the course of 2016: May 17-19, Sept. cannabis-related companies that are looking The three-day series will educate attend- 13-15 and Nov. 8-10 at the Growers Supply to hire employees. People who need to ac- ees about the latest in growing techniques Learning Center in Dyersville, Iowa, and quire a marijuana handlers card, which is and technology. The workshops will be on June 15-17, Oct. 12-14 and Dec. 7-9 in required by the state for some positions, can taught by Growers Supply experts and in- South Windsor. receive training at a discounted rate. dustry specialists. The $995 ticket price for the three-day The event is open to the public, but “The workshops are really intended for event covers the hotel stay, lunch and the people are encouraged to sign up as mem- growers of any experience level — anyone complete course workbook. All attendees bers with the AMIA. that is looking to broaden their knowledge receive a $995 credit that can be used toward More information: www.alaskamari- of, or experience with, controlled environ- the purchase of any controlled environment juanaindustry.org. ment agriculture,” assistant marketing man- product. Tickets are available now. ager Justin Dunham said. More information: www.farmtek.com. April 10-11: The inaugural CannMed It will start with a crash course on the ba- 2016 is set for April 10-11 at the Joseph sics of hydroponic crop production, where MORE EVENTS B. Martin Conference Center inside the attendees will learn the benefits of different April 5-6: The fourth annual Indoor Ag- Harvard Medical School in Boston. The hydroponic systems. Other subjects will Con will be taking place April 5-6 at the conference is dedicated to showcasing include various concepts of plant nutrition, Las Vegas Convention Center in Nevada. professionals and companies working with calibration, nutritional testing and supple- The event highlights the driving technolo- the endocannabinoid system and concep- mentation. gies behind the agriculture industry. Indoor tual practices for the use of cannabinoid The workshop will move into more com- Ag-Con will feature two full days of con- therapeutics in neurological disorders. The plex territory with hands-on classes focused ferences and speeches tailored to corporate show will open with a dinner reception on on controlled environments, covering topics executives from all facets of the agriculture April 10. A full-day conference will be such as controlling temperature and humidi- industry. The show has an expanded exhi- held the following day. Conference topics ty, sizing a greenhouse, integrated pest man- bition hall for vendors and an after-hours include the applications of cannabinoid agement and more. party for networking opportunities. therapeutics in neurological disorders. “The company has been involved in the Tickets and sponsorship packages are More information: medicinalgenomics. horticulture industry for over 40 years,” available now. com/cannmed2016.

18 | Marijuana Venture // April 2016 Air-Pot CANNABIS CALENDAR

April 24: The Oregon Marijuana form attendees about the legal rules cover- tors looking to contribute to the growing Business Conference will be at the Hil- ing a myriad of subjects like on-boarding, cannabis market. Similar to previous con- ton in Eugene, Oregon on April 24. The termination, leave requirements, wage and ferences, the event will also be home to an single-day event will feature topics sur- hour laws and best practices to avoid law- expo hall for vendors. Retailers, growers rounding the Oregon market as the Liquor suits. The presentation will start at noon. and processors are invited to participate in Control Commission has already begun Registration is available now. roundtable discussions, and attendees are being accepted by the Oregon Liquor More information: laborlawyers.com/ welcome to join the Q&A and panel ses- Control Commission. Formerly known as canna-businesses. sions hosted by industry experts. Attend- the Oregon Medical Marijuana Business ees will also have additional networking Conference, the event plans to address May 7-8: The CannaGrow Expo will opportunities, including a crash course for the politics, activism, business and cul- be in San Diego on May 7-8 at the Paradise industry newcomers, a women’s breakfast ture of Oregon’s cannabis industry. This Point Resort & Spa. The expo will focus on and a legalization benefit. event is specifically targeting current and education for cannabis growers, dispensa- Tickets are available now. Use the pro- future retailers, processors and cultiva- ry owners, grow managers and enthusiasts mo code ThanksMJVenture50 at checkout tors throughout the state by catering the who are looking for the newest and best in to receive $50 off ticket purchases. show’s content to attendees and what they technology, tools and techniques. The expo More information: mjbizconference.com. can expect as they begin the application will feature 18 different educational ses- processes. Tickets are available now. sions hosted by expert growers. Single-day May 12-13: The annual NCIA Lobby More information: oregonmbc.com. access passes are available now for $189 Days returns to Washington, D.C., on May and two-day passes are available for $369. 12-13. The NCIA invites members from April 27: Employment Law Essentials More information: cannagrowexpo.com. across the country to hit Capitol Hill to for Canna-Businesses is a presentation show the nation’s decision-makers the face hosted by Fisher and Phillips LLP at SoDo May 9-11: The Spring 2016 Marijua- of legal cannabis. The NCIA wants mem- Park on April 27 in Seattle. It will cover the na Business Conference & Expo will be bers to lobby for the progression of the rec- fundamental concepts cannabis business at the Gaylord Palms in Orlando, Florida reational and medical cannabis industries owners and managers should know about on May 9-11. The show will host more by telling their stories to representatives, employment law. The presentation will in- than 3,000 industry executives and inves- urging them to fix the national issues that

KES Science

20 | Marijuana Venture // April 2016 Imperious Cannabis Business Expo CANNABIS CALENDAR have continued to plague the industry. The ets are available now with a special dis- itor space and tickets are available now. event is for NCIA members only. count for NCIA members. More information: imperiousexpo.com. More information: thecannabisindus- More information: cannabisbusiness- try.org. summit.com. Sept. 22-23: Canncon, a scientific -or ganization dedicated exclusively to canna- June 15-17: After a pair of success- July 9-12: AmericanHort presents bis testing and research, will be holding a ful shows in 2015, the Cannabis World Cultivate‘16 at the Greater Columbus conference in Portland, Oregon on Sept. Congress & Business Expo will return Convention Center in Columbus, Ohio on 22-23. Not to be confused with the trade to the Javits Center in New York City to July 9-12. The all-industry horticultural show of a similar name in Seattle, this two- kick off the summer. The expo is set for trade show will host more than 120 edu- day conference will bring testing experts June 15-17 and plans to deliver business cational sessions throughout the four-day together with attendees who are looking connections, workshops and education- event. The eight-acre show floor will be to learn more about testing processes, can- al seminars. The show’s organizers have home to various networking opportuni- nabis science and research. Topics will also announced a follow-up to their Los ties, product announcements and vendors include sample preparation, chromatogra- Angeles event for September 2016. from across the country. Registration for phy, mass spectrometry, terpene profiling, More information: cwcbexpo.com. the event opens March 8. contamination analysis (pesticides, resid- More information: cultivate16.org. ual solvents, microorganisms and heavy June 20-22: The Cannabis Business metals), genetics/genomics, regulations, Summit and Expo will be held June 20- July 20-21: The Imperious Cannabis legalization, scientific methods/standards 22 at the Oakland Marriott City Center Business Expo will be hosting its two- and medicinal cannabis. A venue for the in Oakland, California. The NCIA show day event at the Tacoma Dome in Tacoma, event has yet to be announced. Registra- will include a network of 3,000 growers, Washington on July 20-21. The show will tion is available online now. dispensary owners, senators, congressio- be geared toward the medical cannabis in- More information: canncon.org. nal representatives, processors and NCIA dustry, including everyone from start-ups members. The show will also include to seasoned veterans. The show will feature To submit an event for inclusion in the more than 30 industry sessions, Cannabis a number of industry specialists, exhibitors Marijuana Venture calendar, email Edi- Carnival III and industry speakers. Tick- and keynote speakers. Sponsorships, exhib- [email protected].

DCG

22 | Marijuana Venture // April 2016 High Caliper Growing System MARKET WATCH POWERED BY A look at business metrics from the legal cannabis market, with information provided by FrontRunnerData.com

20152015 Monthly breakdown percentage of non-flower of non-flower sales sales byin inventoryWashington type 20.00%20%

18.00%18%

16.00%16%

14.00%14%

12.00%12%

10.00%10%

8.00%8%

6.00%6%

4.00%4%

2.00%2%

0.00%0% JanuaryJanuaryFebruary March MarchApril AprilMay May June July AugustAugust SeptemberSeptember OctoberOctober NovemberNovember DecemberDecember Extracts Edibles Liquid Edibles Topical Extracts Edibles Liquid Edibles Topical

Percentage Percentageof sales by of sales day by of day the of weekthe week in Washington

SundaySunday

MondayMonday

TuesdayTuesday

WednesdayWednesday

ThursdayThursday

FridayFriday

SaturdaySaturday

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% % of Sales Percentage of Sales

24 | Marijuana Venture // April 2016 Dear Electric BUSINESS PROFILES

Company: Euphoria Wellness Location:Las Vegas, Nevada Owners: Joe Lamarca and Larry Doyle Employees: 39 Operations: 20,000-square-foot cultivation facility using

The exterior of the Euphoria metal halide and high- Wellness dispensary/delivery pressure sodium lights; center in Las Vegas. 2,000-square-foot- dispensary Inside the dispensary patients take advantage of the Euphoria’s well-staffed sales floor.

While delivery services are an interesting facet of Euphoria’s operation, the business is set up to capture the tourist market of Las Vegas. Residing in the most famous gaming city in the world definitely yields some perks when it comes to security — the dispensary has a direct camera feed to the local police department. It’s also created higher expectations for consumer experiences. “We’re aspiring to be the Nordstrom of cannabis,” Ferrence said. “So you’ll see that in the look of the dispensary and that’s what we’ve aspired to be — high-end, sophisticated, but also safe. Overall we have to be a Euphoria Wellness combination of Nordstrom and Fort Knox.” The opening of Euphoria Wellness was Long-time advocates move into legal cannabis frontier the culmination of 30 years of advocacy By Patrick Wagner by Lamarca and co-owner Larry Doyle. LAS VEGAS — Marijuana delivery spokesman Jim Ferrence said. Lamarca and Doyle knew the process for services have typically been seen as the “They appear to be legal, in nature, but opening a dispensary in Nevada would grayest of gray areas, even in states with they are just not,” he said of the prevalent be long and drawn out, so they opted to cannabis-friendly laws. black market distribution channels. “That’s keep the overhead to a minimum. Eupho- But as more legislators look at pro- the transition that we’re trying to make.” ria Wellness has been able to fund the gressive approaches to curbing the black Ferrence and owner Joe Lamarca worked infrastructure of the cultivation facility market, states like Oregon, California and with the Clark County sheriff to ensure through the proceeds of the dispensary. Nevada are developing regulated deliv- Euphoria’s delivery service complied with After the state Legislature determined ery services. Nevada lawmakers recently state law. Specifics like GPS monitoring, in 2015 that licensed cannabis businesses paved the way for cannabis delivery, and a state-approved safe for product storage could transfer ownership, Euphoria Well- Las Vegas’ first licensed dispensary has and a manifest tracking each delivery were ness began actively looking to expand embraced the new, legal opportunity. just a few of the requirements. Although throughout Nevada. Before Euphoria Wellness established Nevada dispensaries offer reciprocity to “We immediately went into expansion its delivery system, many consumers out-of-state patients, deliveries can only mode,” Ferrence said. “Every year there is didn’t realize they were receiving deliv- be made to Nevada residents at their reg- at least another 150,000 out-of-state card- eries from an illegal process, dispensary istered address. holders that are coming to Las Vegas.”

26 | Marijuana Venture // April 2016 Confidence Analytics BUSINESS PROFILES

The two-story dispensary, located next door to Rogue Farmers.

A sample of the flower procured by Talent Health Club.

Edibles remain “patients only” in Oregon.

what they are looking for and just want to Talent Health Club get in and get on with their day.” You can take the couple out of Wall Street … The company plans to add digital displays, sniff jars of product and racks of By Patrick Wagner industry-specific clothing to peruse. TALENT, Ore. — Jamin Giersbach backdoor into the cannabis industry. The Above the sales floor is the Giersbachs’ managed a computer department for a cannabis growers who had bought sup- office where they manage Talent Health major health care company on Wall Street plies from Rogue Farmers were adopted Club, Rogue Farmers and Highly Distrib- before he and his wife, Melissa, decided as vendors when the Giersbachs opened uted, a wholesale distributor that supplies to move out west for a slower pace of life. the Talent Health Club medical dispensa- more than 140 dispensaries with product The Giersbachs left the crowded metrop- ry. from local growers and processors. olis behind in 2005 for Southern Oregon, Located next door to Rogue Farm- “To be successful I think competing but the easy-going lifestyle didn’t quite ers, Talent Health Club features a against yourself is the best way to keep take. 1,450-square-foot sales floor with three people honest,” Jamin said. “I have a lot “We were having a lot of fun out here points of sale, a velvet-roped area for of exclusivity here that I set up early on for a few years, but we got a little rest- medical patients and a rotating gallery with some of the best growers in the state. less,” Jamin said. “My wife and me — we of local art stretching I set brands up with like a lot of activity around us.” nearly 30 feet from our wholesale compa- Together the Giersbachs started Rogue the floor to the -ceil Company: Talent Health ny and our wholesale Farmers, a 3,000-square-foot growers ing. Club company now sells to supply store in Talent. Since opening, the “We are going to Location: Talent, Oregon all of the other oper- store has more than doubled in size and is actually have an ex- ations around here in now among the largest grow stores in the press checkout lane Owners: Jamin and Southern Oregon. It Pacific Northwest. because I know that Melissa Giersbach really keeps me on “What started off as something that some people can re- Employees: 8 my toes and keeps was going to be incredibly small and ba- ally camp out at the me working hard to sically run just by me and Jamin is now register,” Jamin said. Top vendors: TJ’s Organic search out all of the a multi-million-dollar business,” Melissa “We have a lot of reg- Gardens, Proof Cultivar, other hottest prod- said. ulars — repeat cus- Dirty Arm Farm ucts and to bring them Rogue Farmers inadvertently became a tomers that just know down south.”

28 | Marijuana Venture // April 2016 Clear Choice BUSINESS PROFILES

Terpene Station co-owner Pat DeCastro (right) and budtender Sole Fiumefreddo.

Clockwise, from top: The waiting room lobby at Valley Healing Group; Maturing plants inside the grow room; Zuleika Segovia at Valley Healing Group escorts product to be weighed and packaged.

40,000 people. Valley Healing Group “You can’t get the same personal re- Business model based on community fuels Arizona dispensary lationships if you’re seeing hundreds of people,” he said. “The wholeness with the By Patrick Wagner community allows us to interact with pa- BULLHEAD CITY, Ariz. — Valley different strains on its shelves. tients and actually listen to their problems Healing Group doesn’t view other dis- The owners of Valley Healing Group and genuinely try to help them and guide pensaries in Arizona as competition. The opened the dispensary just 20 miles east them toward the right product.” non-profit dispensary sees a brighter fu- of the Mojave Desert in 2013. Since then, Wholeness with the community is ture for itself by following a more com- the non-profit has expanded to include a something that Abramian said has been munal business plan. 25,000-square-foot indoor growing facil- incorporated into the design of the store, “Instead of looking at them as com- ity and an extraction lab. A commercial not just in the aesthetics, but in the entire- petition, I like to look at them as team- kitchen has been added into the fold, and ty of the consumer experience. mates,” director of operations Alfred will be ready for business as soon as the “This is home. Everybody who comes Abramian said. company ensures all in here, we already With nearly 80,000 qualified patients the ingredients are know their name,” he in Arizona, Abramian believes there’s organic and locally Company: Valley Healing said. “A lot of these enough business for every dispensary. sourced. Group people are on a heart- Abramian said Valley Healing Group ac- “The food itself Location: Bullhead City, to-heart basis with the tively lines its shelves with products from needs to be healthy Arizona budtenders.” neighboring producers and retailers, who to begin with,” He said it’s a com- then reciprocate the business. Abramian said. Employees: 20 pletely different expe- “We all do business together,” he said. He said having a Operations: Dispensary, rience than a lot of oth- “We all share product. People should deeper connection er dispensaries offer. have the option of figuring out what is the with patients is para- 25,000-square-foot in- “It’s cozy like it best medicine for them.” mount for a business door, hydroponic grow would be at your Valley Healing Group stocks about 60 in a city with less than home.”

30 | Marijuana Venture // April 2016 VC999 PRODUCT SPOTLIGHT

Urban-gro Urban-gro has introduced several new products geared toward serious cannabis cultivators. The company developed the Soleil 315-watt ceramic metal halide fixture to specifically address growers’ needs during the vegetative stage. The customizable mounting system ensures easy installation, and the fixture utilizes patented P.L. Light Systems reflector technology. The system complements the P.L. NXT2 double-ended high-pressure sodium fixtures designed for flowering. Meanwhile, the company has also introduced a line of horticultural LEDs for growers looking for a more efficient approach than traditional high-intensity discharge bulbs. “Urban-gro has been tracking LED technology closely, and P.L. Light’s HortiLED is a game-changer,” said Shelly Peterson,- Ur ban-gro’s vice president of lighting sales. “HortiLED will finally offer growers an effective LED solution with the perfect combination of high performance and energy savings.” Urban-gro said the LED bulbs are 42% more efficient than 1,000- watt high-pressure sodium counterparts. The HortiLED line features three different products: HortiLED Top is a versatile LED fixture -suit able for top lighting of all types of crops; HortiLED Inter is for high-wire cultivation of greenhouse vegetables and has a reflector designed to Rx Green Solutions distribute light evenly on the top of the leaves; HortiLED Multi is for BULK and ENERGY are two new additives in multi-layer cultivation, growth chambers, air-conditioned containers, the Rx Green Solutions family of products. The tissue cultivation and dimmable experimental set-ups. base line of nutrients provides a complete pack- “The new HortiLED products are designed to deliver the best pos- age of macro- and micronutrients required by sible lighting performance to maximize yield and benefit from LED’s plants, but for growers who want more control energy-efficient attributes,” Peterson said. “We know how important over certain aspects of the process, BULK and it is for growers to have a cost-effective, power-saving light with the ENERGY are designed to help plants reach their correct intensity to maximize plant yield.” maximum potential. Urban-gro also recently merged with Cannabis IPM Solutions to ENERGY contains natural ingredients de- offer commercial pest management options. signed to stimulate soil microbes, improve chlo- “I look forward to educating Urban-gro’s extensive customer base rophyll production and increase plant biomass. on how to control powdery mildew, spider mites, root aphids and oth- Using molasses, yucca, kelp and humic acids, er pests in this rapidly changing regulatory environment,” said John ENERGY contains organic components as well Chandler, Urban-gro’s vice president of cultivation technologies. “Al- as traditional minerals to increase soil fertility, though we offer both synthetic and organic product solutions, many enhance nutrient uptake and boost plant im- cultivation operators are looking for organic solutions because they munity and disease resistance. These benefits want to stay on the right side of the regulators.” lead to a healthier and stronger plant in the More information: www.urban-gro.com. vegetative stage, which supports greater bud development in the flower stage. In the flowering stage of the plant, additional phosphorus and potassium are often needed to produce optimum flower density and quality. BULK uses plant-derived amino acids and carbohydrates to increase photosynthesis. The natural ingredients in BULK, coupled with essential minerals, provide a highly bioavailable source of nutrients for the flowering plant’s increased energy demands. Rx Green Solutions focuses on providing safe, food-grade plant nutrients for cannabis growers. BULK and ENERGY were developed specifically for cannabis at the company’s testing facility in Denver. More information: www.rxgreensolutions.com.

32 | Marijuana Venture // April 2016 Crew Consulting PRODUCT SPOTLIGHT

SneakGuard SneakGuard is a locked, vacuum-sealable storage container designed to keep marijuana and other medications away from children or pets. Founder Graeme Gordon came up with the idea when he discovered how easily his young daughter could open a child-resistant bottle of painkillers. It was only when states began legalizing marijuana that he got the idea of using SneakGuard to prevent cannabis from being consumed unintentionally. After placing marijuana or medications in the container, the built- in pump can be used to remove air from the chamber to maintain freshness. The container can be locked with a custom combination that can easily be changed. More information: www.sneakguard.com.

Centurion Pro Silver Bullet The Silver Bullet might just be the luxury model of commercial trimmers. Not only does it have the same precision, quality and speed as the award-winning original Centurion Pro trimming machine, but it also incorporates a marine-grade Bluetooth stereo, large-capacity fold- ing hopper and a silencer that reduces leaf collector noise by 30-40%. The company says the machine is capable of re- placing more than 20 employees at the job site by trimming up to 12 pounds an hour dry or 60 pounds an hour wet. More information: www.cprosolutions.com.

Cannabis Training Institute One of the leading online cannabis educators recently announced the addition of two new courses. Cannabis Training Institute’s Dispen- sary Workers Health and Safety course covers employee rights, potential factors for workplace-related injuries and robbery awareness. The course also includes a supplemental segment on substance abuse. and safety courses are digitally delivered customer service possible.” “The safety of patients and staff is a through an in-site learning management The Cannabis Training Institute also top priority for marijuana dispensary system and viewable from any desktop, added a new course that covers medici- owners,” Cannabis Training Institute laptop or mobile device, making it a con- nal uses of marijuana. spokesman Luc Nelson said. “Like all of venient and effective way to train techs More information: www.cannabis- CTI’s gold-standard training, our health so they can deliver the best and safest traininginstitute.com.

34 | Marijuana Venture // April 2016 CCTV PRODUCT SPOTLIGHT

an evaporator chamber at reduced pressure and with limited exposure to heat,” Helderpad president Derek Houston said. “Basically, it allows users to make what we believe is the cleanest cannabis oil on the market.” Helderpad provides four standard refining systems ranging from the smallest, which can process anywhere between 200-5,000 milliliters of crude oil per hour, to the larger commercial systems capable of processing 150 li- ters per hour. The systems are scalable and modu- lar to allow for single or multiple stages of processing in a single pass. Helder- pad also provides processing services for clients who want to take advantage of the company’s refining tools on a contractual basis, without purchasing the machinery outright. The Helderpad team consists of processing specialists with nearly four decades of experience working in various sectors of the cannabis industry. The team works with veteran chemical processing company Chemtech to continue the advancement of processing technology tailored for the cannabis industry. “We pretty much saw the development, the continued increase of existing scientific applications in the cannabis world,” Houston said. “So we went to some engineers that were already spe- cialized in vacuum distillation and said Helderpad pure, potent oil. ‘Let’s combine our talents and create High-tech processing equipment “Short-path wiped-film distillation some systems that are specified for can- manufactured by Helderpad utilizes is a technique that involves separating nabis and provide the most efficient re- short-path distillation to turn even the and preserving sensitive molecules by fining tools for the cannabis industry.’” most useless cannabis extract into a passing them a short distance through More information: helderpad.com.

Marijuana Horticulture Fundamentals For growers of all experience and skill levels, Marijuana Horticulture Fundamentals walks readers through every step of the cultivation process. It is the first and only grow book ever written by Kenneth Morrow, founder of Trichome Technologies. Morrow shares tricks and tips he’s discovered in his 20-year career as a culti- vator and breeder. Marijuana Horticulture Fundamentals is one of the most comprehensive grow books on the market with more than 400 pages covering a wide range of subjects, including grow security, choosing cultivars, grow room basics, lighting, watering, seed ger- mination, cloning, hash-making techniques and troubleshooting. Whether you’re looking for something basic like advice on choosing a growing medium or something more in-depth like way to optimize your facility, Morrow’s book features something for everybody. The book was published by Green Candy Press, and is available through Amazon and other retailers.

36 | Marijuana Venture // April 2016 Vessel Verde "We're losing badly the War on Drugs. You have to legalize drugs to win that war. You have to take the profit away from these drug czars." Donald Trump, at a luncheon hosted by the Miami Herald in 1990. Source: The Sarasota Herald-Tribune.

"I say it's bad. Medical marijuana is another thing, but I think it's bad, and I feel strongly about it.” Republican presidential candidate Donald Trump, speaking at the 2015 Conservative Political Action Conference. Source: The Washington Post.

“This is certainly going to help some folks, but next year we’re going to have a request by somebody to make provisions for people to grow pot.” Virginia state Senator Mark Obenshain (R-Rockingham), on a recently passed senate bill to allow cannabis oil for epilepsy. Source: The Washington Post.

“I want to thank the Senate for their courage in voting to end the failed War on Drugs policy of marijuana prohibition. When this debate began a month and a half ago, there were many who said it had no chance of passage in either chamber. Today it passed the Senate.” Vermont Governor Peter Shumlin, in support of a bill that would legalize cannabis for adult use. The bill was approved by the Senate, and now awaits a vote by the House of Representatives. Source: Vermont.gov.

“I’m proud to be a cultural pioneer at the forefront of another wave of progress! And we’re proud of the city of Santa Ana as we continue to move into the era of recognizing cannabis as the natural, therapeutic, herbal substance medical science has proven it to be.” Roseanne Barr, on the opening of her Santa Ana dispensary, Roseanne’s Joint. Source: Orange County Register.

“No one has ever gotten cancer from pot. But, sadly, I think we will see cancer patients in a few years who got sick from the pesticides in their pot. I really wish we had done better from the beginning.” Cannabis advocate Muraco Kyashna-tocha, regarding recent reports of illegal pesticide use among two Washington growers. Source: The Stranger.

38 | Marijuana Venture // April 2016 Hydrobuilder Living the Marijuana Venture sought out a group of professionals to tell the trials and tribulations of everyday DREAM life in the legal marijuana industry. adding more expenses. square feet); fractured cannabis activists Washington Bud Company In the meantime, we are making the have finally come together, so the Liquor transition ourselves, unclear of which and Cannabis Board and lawmakers are rules will remain. Do we have to rede- better able to hear the aligned voices; a bill SHAWN DENAE sign our packaging to allow for a pesti- that will protect confidential information Snohomish, Washington cide statement sticker? How long will from public disclosure is moving forward; getting new fingerprints hold us up? It’s the market seems to be a bit more stable; like building a business on top of a train, and, finally, I have some excitement about hoping it will survive as we barrel toward the future of our fragile business venture, more tunnels, twists and turns. now that it’s our turn to climb aboard. But I do see a light at the end. A small Even though a majority of Americans group of us began the task of forming the agree that cannabis should be regulated, nation’s first Cannabis Commission. Like as opposed to continuing to make it part the apple, hops and wine grape commis- of the War on Drugs, lawmakers are slow sions, cannabis agriculture could finally to represent that majority. Legalized can- be researched to establish standards for nabis is far from a given liberty; there is the very best and safest growing, har- resistance everywhere. If you are even vesting and packaging practices. The thinking about jumping on the marijuana commission assessments will also pay for industry train, start with your local gov- fact-based education platforms for both erning bodies and begin the education consumers and decision-makers. Infor- process. It’s a long journey, and hopefully here is a freight train full of an- mation can be found at www.washington- worth the high costs of the ride. ticipation, doubt, hope and worry statecannabiscommission.com. thundering ahead as more states Other bright spots are: The city of Ar- Shawn DeNae is the CEO of Washington Tjump on the route to legalize cannabis. lington has shown that welcoming the Bud Company, an aspiring applicant for a A long list of shenanigans and good cannabis industry provides more jobs than producer/processor license. She is one of the intentions abound along its bumpy aerospace (one job for every 250 square founding members of the Marijuana Busi- tracks: A former IRS agent from Seattle feet compared to one job for every 450 ness Association Women’s Alliance. was sentenced to prison for bribery after a medical marijuana dispensary turned him in to authorities; two prominent growers in Washington are under inves- tigation for unlawful pesticide use; the Washington State Liquor and Cannabis Board lost applicants’ fingerprints, including ours; state lawmakers allowed a home grow bill to die in session, making those who grow their own weed de facto criminals; the city of Seattle has jumped the gun for transitioning medical stores into the regulated system by giving three-week notices to begin the process now or close their doors, despite the laws giving a July 1 deadline; the Liquor and Cannabis Board held its final hearing on the 90-plus pages of rule changes, only to realize it may have to go back to the drawing board due to the strong outcry from licensees regarding proposed rules that seem to serve no purpose other than

40 | Marijuana Venture // April 2016 Vuber INNOVATIONS

REIDMoisture INSTRUMENTScontent is a critical measurement DL-4000 for marijuana applications, which ultimately led Reid to develop the tabletop cultivators. Growers must keep moisture within specific limita- DL-4000 model, which is preferred among cannabis farmers. tions to satisfy state requirements, but since cannabis is sold by “It’s pretty cool, to be honest. I’m really impressed with Tom weight, overly dry product means lost revenue. Reid and how he’s been able to develop this little niche,” said Tom Reid, an engineer and entrepreneur from Eastern Wash- Tim Statler, vice president of American operations for Hydro- ington, recognized the need for producers to accurately deter- nix. “He’s the only customer of Hydronix in the world doing mine proper moisture content during the curing process, and for something like this. To our knowledge, there’s nothing else out consumer packaging. Reid’s solution was the Reid Instruments there that’s able to do this, and give (farmers) the kind of con- DL-4000, a tabletop unit that utilizes groundbreaking micro- sistent readings they’re looking for. Every step of the way, from wave technology to precisely measure moisture content. curing to the packaging to the rehydrating to everything else, it’s The heart and soul of the DL-4000 is a sensor developed proving to be a very useful piece of equipment.” by Hydronix, a UK company that has been developing mois- The machine is simple to use and far more accurate than de- ture-measuring technology for more than 30 years. The concrete termining moisture by feel, Reid said. Cannabis in a plastic bag industry is Hydronix’s largest customer base globally, but the is gently compressed and placed over the sensor faceplate. At company started expanding into the agricultural market about the touch of a button, the moisture is measured and stored in 10 years ago. the system’s memory. Several instant readings can be taken and The agricultural side has been a challenge, because the equip- averaged for the best possible results. The process is non-de- ment isn’t cheap. The ideal product is a high-value crop with a structive, so there is no product loss. critical moisture content … or something exactly like cannabis. Reid worked with Scott Masengill, of TumbleWeed Farm, to Reid Instruments originally licensed the Hydronix technology determine the machine’s viability for the cannabis industry. to build the DL-6000, which has been popular in the hops industry Masengill said the DL-4000 takes the subjective guesswork since about 2008. The organic similarity of hops cones and canna- out of moisture evaluation, while delivering real-time data to bis flowers made for an ideal transition between the two agricul- drive harvest and packaging processes. tural products. The handheld DL-6000 was too large for certain More information: www.reidinstruments.com.

42 | Marijuana Venture // April 2016 Northwest Harvesting Co INNOVATIONS

HEADSETAfter creating one of the most popular consumer websites in should be carrying based on consumer demand and profitability. the cannabis space, the founders of Leafly have moved on to “It really all comes down to maximizing your revenue per square test the B2B market. They recently launched Headset, a business foot,” Scott said. “We’re able to do this by bringing in data from a intelligence platform for cannabis retailers after selling Leafly to variety of publicly available sources. It gives retailers a good visibil- Privateer Holdings. ity to what’s happening in the space around them.” “We’re serial entrepreneurs,” Headset CEO Cy Scott said. Headset also uses each store’s point-of-sale data to bolster the “After five years with Leafly, we decided it was time totry information. something else.” Washington business owners will be able to take advantage Having spent a lot of time with retailers and product manufac- of Headset first, but a national roll-out is planned for the near turers during the development of Leafly, Scott said he realized future, which will include all businesses throughout the supply most cannabis companies don’t have access to good systems and chain in both medical and recreational markets. information to help them operate their business more effectively. “For product manufacturers, it’s also about optimizing, but During the short time frame since Colorado and Washington le- they have a different set of problems,” Scott said. galized adult-use cannabis, retail operations have grown increas- Unlike information that comes from state sources, information ingly more sophisticat- provided by Headset ed; now they need the for a specific retailer business intelligence is only for that retailer. to match their pack- “We don’t share that aging and marketing data,” Scott said. efforts, Scott said. The goal of Headset Headset is a plat- and its founders is to form designed to help move the marijuana retailers maximize industry away from their inventory, and anecdotal numbers better understand their and into the realm of breakdown of brands real business intelli- and prices. It provides gence. retailers with insights “We want every- about the market one to succeed,” Scott around them, what their said. “If they do, the competitors are doing industry will continue and what brands they to grow.”

44 | Marijuana Venture // April 2016 Futurola Growth by Design ViPova HOPEFUL IN

VERMONT Who needs an election? Local lawmakers could make Vermont the fifth state to legalize adult use cannabis ― ― ― Story by PATRICK WAGNER Photos by MICHAEL TALLMAN

ermont recently took a significant step toward “With over 80,000 Vermonters admit- ting to using marijuana on a monthly ba- legalizing cannabis, but the fate of Senate Bill sis, it could not be more clear that the cur- 241 lies in the hands of the House of Repre- rent system is broken,” Shumlin said in a sentatives. press release. “I am proud that the Senate SB 241 was approved 17-12 by the Ver- took lessons learned from states that have gone before us, asked the right questions, mont Senate in late February. The legislation and passed an incredibly thoughtful, com- would establish a licensing and regulatory structure for mon-sense plan that will bring out of the adultV use marijuana sales. If it survives House scrutiny, shadows an activity that one in seven Ver- monters engage in on a regular basis.” Governor Peter Shumlin, an outspoken cannabis sup- At this point, advocates say there’s porter, is expected to sign it into law. about a 50-50 chance Vermont will be-

48 | Marijuana Venture // April 2016 CannaSol come the fifth state in the U.S. to legalize Vertical integration would be prohibit- Above: Senate Bill 241 adult use cannabis. It would be the first to ed for newly licensed, for-profit cannabis would allow existing dispensaries to continue do so through the state Legislature, as op- businesses. However, existing medical producing edibles without posed to a voter initiative. dispensaries would be allowed to continue additional licenses. “The real question is: Can we get this using a vertically integrated model. Busi- Right: Chef Amy Bacon through each of these committees we need nesses licensed for the recreational mar- prepares a batch of to get it through?” said Matt Simon of the ket would also be limited to one license, themed edibles for Marijuana Policy Project. “If it gets to the whereas the medical dispensaries are cur- Southern Vermont floor, I think we’ll have enough votes to rently allowed multiple licenses. Wellness and Champlain pass it. But there are some committees that Vermont’s strict medical marijuana laws Valley Dispensary, two of Vermont’s nonprofit we don’t have the votes on. We have some that Lynn helped establish would remain dispensaries. convincing yet to do.” intact. Nonprofit dispensaries would con- Simon remains cautiously optimistic, tinue to operate without the mandatory but it’s far too soon to celebrate. Sever- 25% sales tax for adult use operations. al weeks of wall-to-wall testimony and “This is why I support this,” Lynn said. hearings are expected next, and the Senate “It’s moderate and yet we still get what we victory could very well be negated if the need in the medical market to succeed.” House rejects SB 241. Lynn operates two of the four state-li- “It’s really been an uphill climb all censed dispensaries and was instrumental along,” Simon said. “We were able to get in the program’s launch three years ago. it done on the Senate side, but there’s no Even though his operation is tiny com- real guarantee on the House side.” pared to businesses in the West, he’s re- Shayne Lynn, director of Champlain garded as one of Vermont’s foremost ex- Valley Dispensary, praised SB 241 as a perts in the cannabis industry. moderate way to implement more progres- After observing the changes made to sive cannabis laws in Vermont. If it passes, medical programs in Washington and Or- it will create a licensing structure for culti- egon, Lynn said his chief concern with SB vators and retailers. 241 is avoiding the boom-and-bust cycles The state would allow up to 27 grow- that have plagued western states. ers and 15 retailers to be licensed in 2017; A study published by the RAND Cor- those numbers could double the following poration in January 2015 estimated about year. Growers would be categorized into 80,000 regular cannabis users in Vermont four tiers — the smallest being licensed supporting the black market. The estimat- for up to 1,000 square feet, and the largest ed annual value of those illicit sales is limited to 10,000 square feet. $175 million.

50 | Marijuana Venture // April 2016 www.marijuanaventure.com | 51 “It’s awfully difficult to estimate usage in a completely illicit market, and that is obviously where we are in Vermont,” Simon said. “The RAND Corporation’s numbers, which were published about 13 months ago, are still the best estimates that anybody has.” If RAND’s estimates are accurate, the state of Vermont could collect more than $40 million in annual tax revenue through cannabis sales. “The question of what to do with those From top to bottom: Chris estimates and what kind of policy to make Williams inspects the drip system around them is something we really wres- for Champlain Valley Dispensary; tle with,” Simon said. “Nobody will know No walk-ins allowed. Visits to entirely what this situation is until we reg- dispensaries in Vermont are by appointment only; Todd Tomasi ulate this market. That’s what it’ll take to fine-tunes extraction equipment get good data.” inside a processing facility. Vermont is just one of several New En- gland states where advocates are looking to repeal prohibition. Voters in Massachu- setts are expected to decide on an adult use initiative in the fall, while Rhode Island lawmakers will consider a bill sponsored by a state representative. Advocates in Maine attempted to send a legalization initiative to voters, but the Secretary of State’s Office invalidated about 17,000 signatures from the petition, leaving the initiative about 10,000 signatures short of the required 61,123. The Campaign to Regulate Marijuana Like Alcohol issued the following statement after Maine’s announcement: “We are very disappointed by the Secretary of State’s determination. Based on docu- ments they have provided, it appears that more than 17,000 valid signatures from registered Maine voters were excluded from the count because the signature of a single notary — whose notary commission has not expired — did not exactly match the signature the state has on file for that notary. We are exploring all legal means available to appeal this determination, and we sincerely hope that 17,000-plus Maine citizens will not be disenfranchised due to a handwriting technicality.” Vermont is clearly pushing the envelope of drug law reform, but it could be several months before questions are answered. Lynn said he’s just excited that state representatives are even discussing the pros- pect of legalization. “It’s not happening via referendum – these are elected officials and they are making decisions to legalize cannabis,” he said. “I’m still kind of scratching my head about this.”

52 | Marijuana Venture // April 2016 Twister Trimmer WINE

here are some amazing similarities between cannabis and wine. They’re both widely Tavailable and sold at a variety of price points. Brands often utilize extremely divergent and creative marketing campaigns. Both are well-known for their rich history, culture and variety. But from a retail sense, wine is the tried-and- true stalwart, making it a great subject for cannabis entrepreneurs to study, particularly when it comes to developing sales techniques, packaging and marketing. Marijuana Venture compares and contrasts the ways cannabis and wine are created, marketed and sold in this multi- part story. Part one gives a winemaker’s perspective on the rapidly-growing cannabis industry, and how burgeoning marijuana brands can learn from the highly competitive wine market. Part two visits the heart of Washington’s wine country to meet a cannabis grower who’s planted roots in the rich soil of the Columbia Valley.

54 | Marijuana Venture // April 2016 WEEDwww.marijuanaventure.com | 55 – A Winemaker’s Guide to – Cannabis Marketing

Similarities in pricing strategies, the cultivation process and label design make wine and marijuana remarkably similar in terms of brand development ― ― ― Interview by GREG JAMES Photos courtesy ROSS ANDREW WINERY

oss Mickel understands the challenges and complexities of developing a successful marijuana brand. But Mickel isn’t a cannabis grower or retailer. He isn’t a marketing guru or a so- called branding expert. Mickel is the founder of Ross An- drew Winery, a family-owned Washington business that set its sights on crafting distinctive and unique wines when it launched in 1999.

“I’ve been blessed to have employ- one of the more celebrated brands to ment experiences with true industry come out of Washington. Among numer- leaders and visionaries,” says Mickel, ous industry accolades, Ross Andrew who points to his close relationships produced Wine Spectator’s highest-rated with Canlis, Betz Family Winery, DeL- Washington Cabernet Sauvignon. Mick- ille Cellars and Rosemount Estate as the el recently shared his insight about how roadmaps for Ross Andrew’s success. cannabis companies can take advantage Today, Ross Andrew is looking ahead of knowledge gained through the wine to its 17th harvest, and continues to be industry.

56 | Marijuana Venture // April 2016 Surna Marijuana Venture: What similarities do you see between the wine business and the marijuana business?

When recre- Ross Mickel: ational cannabis launched in 2014, I started thinking about all the parallels between the two industries, beyond just the general — albeit important — questions you need to ask when starting a business. But to me, one of the most important things to realize (not factoring in cannabis as a medicine) is that we are vying for people’s discre- tionary income. A first question to answer: Are you capable of building something sustainable with that in mind? While I’d like to argue otherwise, people don’t require wine or cannabis to live. We all know that water, love, hunting and great butter are the pillars of a true and rich life, but wine and cannabis are very subjective consumer products. By that, I mean what one person thoroughly enjoys, another may not. And that doesn’t mean it is bad, just that it doesn’t align with their palate. There is also the word-of-mouth component that extends from those experiences — first impressions are a big deal. The non-consumable experience of the product can be a make-or-break for many consumers. Do they like and understand your brand identity? How are packaging and marketing tied in, and do they intrigue people, getting them to ask questions and spend their money on your products? Are they able to connect to the people running the business? How are you going to educate retailers and consumers? The product needs to be good, which can vary from acceptable to truly exceptional, but they will often buy in to the brand and pay doing differently to make it a better prod- Ross Mickel testing a more for the experience because of that uct/experience for the buyer? red inside the winery. ‘connection.’ I see this every day in the wine busi- How has being part of a bigger ness. Of note: One significant sales chan- MV: organization — or brand family nel not available to the cannabis indus- — helped? try is a tasting room. Until that changes, you’ll need to lean heavily on the bud- There are many advantages of tenders to sell your brand. Forget about RM: having an association with a them selling your product. Whether it is bigger organization. The first being the high-end or every day, consumers need to ability to scale — not just in terms of believe in the brand, especially since the production volume, but in your pricing consumer can’t experience it until they for dry goods/packaging, sales and mar- leave the premise. Many growers produce keting efforts, back-end office support great cannabis, but what is it that you are (accounting, compliance). You also have

58 | Marijuana Venture // April 2016 Forever Green a number of people in-house that you can reach out to quickly for support — people who intimately understand your brand. There are also a number of tran- sitional questions you’ll need to consider to decide if that is the right move for your brand — but this will have to wait for another article.

What significance do assets like MV: labels and brand names have in the wine business? Do you think the same applies to marijuana?

They are critical, and I think the RM: same does apply to marijuana. I have enjoyed some really great wines in a group blind setting, only to look at the label and be really disappointed with the packaging. So much effort goes into crafting what ends up in the bottle (or container), and to not put that same effort into the packaging can render your efforts moot. The label (and package) needs to look like a real product, not something dreamed up at a dinner party and printed by your best friend’s friend. Retailers and consumers will start to buy in to the quality and brand even before trying the product. While you can always tweak a label over time, it needs to be done thoughtfully and be a part of the bigger picture. Whims don’t work. I’ve had four significant changes over the life of the brand, but they were all based off our original plan and image. We spent nearly 18 months working on our label. That’s not to say you need to take that much time, but put the label and branding past some trusted peers and associates.

What percentage of your reve- MV: nue is spent on promotion and brand awareness campaigns?

This is a tough question to answer, RM: only because there are so many outside businesses dedicated to the support of wine promotion (Wine Spectator, Wine and Spirit, Sip Magazine and The Wine Advo- cate, to name a few) that we don’t have to pay for, other than the cost of submitting through friends and family and build from How do you keep buyers aware samples. There are also local and state orga- there. That said, for marijuana it will be a MV: of your products, and how im- nizations that support our efforts (Washing- little different since tastings are far more portant are things like free samples ton Wine Commission, Woodinville Wine regulated, and difficult to do on a large and promotional items? Country, Walla Walla Wine Alliance). We pay a nominal base fee for mem- scale. I think you use your three-year plan bership. They then offer additional levels and build off that. Make sure it is targeted I chose to make myself the brand. of participation, such as traveling to new and thoughtful. Remember that it needs to RM: That helps quite a bit: When peo- markets. You can always start by promoting fit your model, not your competitor’s. ple meet me, they have an instant connec-

60 | Marijuana Venture // April 2016 tion to the brand, and that is something see my brands be successful. One thing I A few different offerings they are willing to pay for. I work with learned early on was just how many ways from Ross Andrews Winery. great distributors and sales people who people say, ‘No, we aren’t interested in share an excitement for my brand and feel your product.’ like they can sell my wine and me. It’s one thing to follow up; it’s another They help organize tastings, education- to not hear what someone is really telling al seminars and other sales promotions. you. You may have a delicious wine that I align myself with people who want to scores well, but if people don’t like your

www.marijuanaventure.com | 61 brand or packaging, they will tell you ‘no.’ what the market will bear — exclusivity, A budtender needs to get behind the prod- limited availability and unique produc- uct or it will sit on the shelf and you will tion methods. As the winery grew, I sep- just annoy them with your sales calls. You arated the brand into two tiers: premium need to be able to offer them something and every-day drinker. additional if they tell you they don’t know My goal with pricing was to make the how to sell the product. Are they pushing very best wine I could at one end, with no back because it is sun-grown and they feel exceptions or shortcuts. At the other end, indoor is better? Educate them on why that I was able to use my brand recognition isn’t the case (for your brand). to keep our loyal customers enjoying our wine on a daily basis, as well as introduc- How did you come up with your ing new enthusiasts to what I was able to MV: pricing strategy and market put in the bottle. Over time, my hope is position? Did you have a specific goal that they migrate up to my more limited regarding where Ross Andrew was po- and boutique offerings. sitioned price-wise? Is there a big difference between When we first started, I chose to MV: how you would approach a super- RM: position my main wines at the pre- market chain and an indie wine store? mium level, but toward the more approach- able end of that spectrum. My grapes were Over the years, many of the su- some of the most sought-after in the state RM: permarkets’ buying decisions (read: expensive), but I had some unique have shifted from the store floor to re- co-op situations that allowed me to keep gional buyers, and there is a very specific my costs down. I wanted to produce and system for trying to gain shelf space. You craft a premium product, so I treated the still need to have a relationship with the production of it in that way — using new local buyer so they know how to sell your French oak barrels versus adding oak chips product and why they want to push it over to a stainless steel tank, for example. an equal quality, but less expensive wine. Over the years, there is a component of For the indie wine shops, it’s all about

Fogco

62 | Marijuana Venture // April 2016 NanoLux building a relationship, having a solid product and educating them with trips to the vineyards, tastings, etc.

TO BE SUCCESSFUL, YOU NEED SOMETHING DIFFERENT TO “OFFER

What words of advice would you MV: give to a marijuana company trying to establish itself as a brand in a crowded marketplace?

I would start by asking a few ques- RM: tions: Do you have a business plan? Do you really have a business plan? Is that plan on a napkin, or something your mom said sounded neat at Thanksgiving dinner? Have you shared that plan with trusted advisors, mentors and people who have different skill sets than you? If you can answer those in the right way (yes, yes, no, yes), I would answer the next few questions: What does your company want to do? Do you have the time, team, access to capital and general capability to fulfill those plans? Are you doing something unique and different? If the answer is ‘no’ to these last questions, put your money back in your wallet and just buy someone else’s weed. Countless times I have heard people say, ‘I love wine XX, and want to start a winery to make a wine just like that.’ Why bother? It’s already being done. There needs to be some form of differentiation between what you are offering and what your competitors are doing. Do you have better branding and marketing? A higher quality product? A more interesting and truly engaging story? Are you able to over-deliver on a quality-to-price ra- tio because of technology, experience, real estate ownership or some other critical asset? To be successful, you need something different to offer; otherwise, you will go out of business supporting your suppliers. And that doesn’t sound like a very good business plan.

The image at left is an example of Ross Andrew’s marketing, not as a paid advertisement.

64 | Marijuana Venture // April 2016 NanoLux Jessica Corcorran shows one of Clarity Farms’ edges in outdoor growing

66 | Marijuana Venture // April 2016 Delivering CLARITY Washington’s Columbia Valley has near-perfect soil and climate for cannabis cultivation ― ― ― Story by GREG JAMES Photos by GARY DELP

ne of the little-known facts about Washington state is its position as the second-leading wine producer in the United States. California holds the top spot and has long been recognized for its outstanding vineyards. All wine aficionados, often referred to as “cork dorks,” know the legendary California wineries that are widely acclaimed the world over Oas some of the best red wines anywhere: Caymus, Silver Oak, Screaming Eagle, Opus One, Beringer, Sloan and Harlan Estates.

Meanwhile, Washington produces some Valley AVA, where most of the state’s wine world-beating reds, but as is so often the case grapes are grown. Coincidentally, it’s the for number two, they aren’t as well-known same region where Clarity Farms decided to in wider wine circles. Brands like Quilceda grow cannabis with an emphasis on the same Creek, Leonetti, Betz, Mark Ryan, Cayuse techniques and attention to detail that grape and Precept Brands may not yet have the growers use to create world-class wines. name recognition of California’s premiere As the legal market grows and spreads its producers, but they create wines of equal — wings, a lot of the conventional wisdom in if not superior — quality. For example, the the cannabis industry will be supplanted by 2003, 2005 and 2007 Quilceda Creek Cab- innovation and pioneering business models. ernets were awarded 100 points by Robert The entrepreneurs who display a willingness Parker, of The Wine Advocate, an honor that to explore new methods and styles of culti- has rarely been awarded by the world’s most vation today may well represent the future influential wine critic. of a fascinating and quickly evolving new Why mention this? In wine circles, weath- industry. To that end, the Clarity Farms busi- er and soil are widely considered the two ness model stands out as a unique and excit- most important factors that affect the ulti- ing departure from the norm. mate outcome of a wine. California, and Marijuana Venture’s interview with Jian specifically the Napa region, has a classic Malihi, co-owner, head grower and strategist grape-growing environment; warm sunny at Clarity Farms, was an eye-opening discus- days, cool evenings and rich soil composi- sion that centered on his adherence to many tion create ideal conditions. In Washington, of the same growing and marketing strategies the same conditions exist in the Columbia that are common in the wine industry.

www.marijuanaventure.com | 67 The climate, control and curating processes at Clarity Farms yields impressive results.

ricultural land and surrounded by 100- Marijuana Venture: plus acre irrigation pivots. It’s extremely You chose central Washington’s Co- productive land. The area boasts deep lumbia Valley as the farm’s location. loam soils, and a consistent and relative- Is there any particular reason you se- ly predictable growing climate, which lected that geographical area? provides a solid venue for applying traditional agricultural techniques to can- There were a lot nabis cultivation. The aim is to create Jian Malihi: of reasons for a crop program that yields consistent, choosing the site we eventually settled high-quality, unique cannabis that rep- on. The setting is quite different from resents our particular region. that of a traditional, clandestine, tucked- away-in-the-mountains cannabis culti- In the wine business, soil vation site. This facility is smack dab in MV: and climate are huge selling the middle of Washington’s legacy ag- points. Do you see that happening

68 | Marijuana Venture // April 2016 with the marijuana industry? customers with an accurate description of cannabis world? the strain’s ‘flavor and effect’ profile. This At this point, I think measurable type of focused and methodical approach Absolutely. Cannabis strains vary JM: connoisseurship is just starting to to cannabis connoisseurship is certainly JM: greatly by their preferred growing emerge among cannabis users. There are new to me. I predict we will see a lot more conditions, which leads sun growers to no master sommelier-style tests for mar- of this level of discipline used for deter- focus on growing varieties best suited for ijuana like there are for wine. However, mining the value of certain strains. There their particular micro-climate. As knowl- we are starting to see groups apply ‘flavor certainly is the same type of cultural pas- edge is accumulated, this process will get and effect’ metrics to cannabis testing. I sion behind cannabis that there is in the more sophisticated and will continue to know that Confidence Analytics is one wine community, so it seems natural that make different regions known for specific local group venturing into this type of the industry will evolve in a direction that styles of marijuana. discipline. creates products for aficionados. I think we will first see socially-iden- The founders of that testing lab are cre- tified appellations, which we already in- ating a new test that people can conduct Can you see the eventual devel- formally see with common distinctions on their product, which aims to provide MV: opment of appellations in the between indoor and outdoor product. A www.marijuanaventure.com | 69 I THINK MEASURABLE CONNOISSEURSHIP IS JUST STARTING TO EMERGE “AMONG CANNABIS USERS

Clarity Farms head grower and co- owner Jian Malihi stands amid the grow operation along with a faithful companion

70 | Marijuana Venture // April 2016 Jessica Corcorran at work feeding the soil. Below: Healthy colas nearing harvest.

lot must happen before we see an Ameri- of each individual strain and provides a can Viticulture Area (AVA) style system concentrated experience of that flower’s emerge, but we undoubtedly will. flavor profile. The oil from this year’s crop is more nuanced and complex than any oth- You decided to grow in the native er oil we’ve ever produced. This last crop MV: soil of the Columbia Basin. Can season was out first in this particular field, you really taste the difference that native but we feel confident to say that the native soil has on the final product? soil and climate contributed greatly to the flavors of our flowers and oil. We have grown in countless medi- JM: ums over the years, but last season Were there any additional nutri- was the first time we planted in straight na- MV: ents that Clarity used to enhance tive soil. We amended the field lightly and the soil? Does native soil reduce the need then dropped the starts into the ground. The for additives? soil in the basin is very rich, which has a major impact on flavor development across We amended with mint slugs and all crops. Inherently, the basin’s native soil JM: other organic fertilizers. When has more to offer the plants than anything planting in the ground, the key is to feed manmade. the soil and then let the soil feed the plants. The result is especially evident in the You can absolutely use less fertilizer when rich, earthy undertones in the oil that we planting in nutrient-rich soil, and native extract from the buds. We use pure liquid soils vary greatly depending on where they CO2, which preserves the natural terpenes are and the soil type. This, in turn, means

www.marijuanaventure.com | 71 Jian Malihi out in the field.

Just the FACTS – COMPANY: Clarity Farms

OWNERS: FARMING IS RISKY AND ACTION- Scott Griffin, Emery Rhodes and Jian Malihi PACKED, AND UNEXPECTED

LOCATION: EVENTS CAN OCCUR Monroe and Othello, that to really know how to best treat it, being very rewarding. Our clones had to Washington you need to do a professional soil anal- go from a growing medium to native soil ysis. during a record heatwave, and it made for EMPLOYEES: a rough start. Luckily, the plants proved 21 “What challenges did you face to be very hardy and adaptable, and most MV: as sun growers this year? Do of our worries there were unfounded. NUMBER OF STRAINS: you have any advice for others consid- There is a fairly steep learning curve 25 ering the sun-grown route? associated with farming and growing in a style that we were not completely TOP-SELLING STRAINS: It would be easier to ask what comfortable with. My advice for any- Jougordi Kush and JM: challenges we didn’t face. This one deciding to grow in native soils, and was our first year at the Othello site, and utilizing traditional farming methods is Black Cherry Soda everything was unknown except that we to not bite off more than they can chew. knew the soil was excellent, and that the Farming is risky and action-packed, and WEBSITE: Columbia Basin gets lots of sun. Just unexpected events can occur and cause clarityfarms.net about every day presented a new chal- devastation. Simple climatic occurrenc- lenge. es like hail, strong winds or a heat wave CONTACT: Planting in the native soil at first can wreak havoc. Have a plan and stay Jian Malihi: 360-805-8270 seemed to be a mistake, but ended up focused.

72 | Marijuana Venture // April 2016 O2 Vape A colorful cola sprouts beyond What would you do differently the canopy. MV: if you could go back in time? Grow more Jougordi Kush (UW JM: Black ‘84 x Bubba Kush). It is con- noisseur-grade and makes excellent oil.

How have retail stores reacted MV: to the Clarity Farms product line? Are you developing new products?

So far, retailers have been recep- JM: tive to us and report accelerating sell-through and positive consumer reviews across all our lines. Right now we’re focused on improving our current product line of CO2 vaporizer cartridges and slow- cured flower. We are always working to identify and implement improvements to every aspect of our process, and to create a better user experience.

How do you see this business MV: evolving? The biggest thing I see is the push JM: toward scale. It’s one thing to cultivate great cannabis on a garden or hobby scale, and quite another to do it commer- cially on a large farm. Large producers are focused on creating high-quality product at accessible prices to the consumer, and for many it has become a challenge simply because it requires a completely different skill set than hobby growing. Right now though, the industry is moving fast toward producing lots of really great product at affordable prices for a wide consumer audience. This is a good thing because when choice goes up and costs come down, the consumer invari- ably wins. Larger-scale production is bringing with it an accelerated effort from academia to study cannabis on a scientific level. The most important projects involve cannabis genetics. Genetic research has the ability to change every aspect of the cannabis movement from production site efficiency to more effective patient treatment. MV: What keeps you up at night? Steven Stewert Nothing! I work 16-hour days, and Rafael so I usually sleep like a baby. If I Gonzalez tend to JM: colas before taking can’t sleep, it’s because I’m excited about them to dry. the next day’s work.

74 | Marijuana Venture // April 2016 Salient Systems HEMP

TennesseeRevival farmers legally produce industrial hemp for the first time in more than 70 years, battling weather and supply chain challenges — and learning a lot along the way ― ― ― By KARLI PETROVIC

uch like coffee beans and tulips, some crops are simply better produced abroad. Industrial hemp is another plant that could fit this description — but not because of climate or growing conditions. Although it was once a major U.S. crop, hemp has been banned stateside thanks to the federal Controlled Substances Act and other regula- Mtions prohibiting the entire cannabis species.

76 | Marijuana Venture // April 2016 University of Tennessee tobacco specialist Eric Walker stakes out sections of a one-acre hemp field in preparation for herbicide trials in September 2015. The university is conducting research on hemp cultivation at two locations in the state, with plans to expand over the next few years. Photo by Clay Duda.

www.marijuanaventure.com | 77 Of the estimated 55,700 metric tons of uct retail sales totaling an estimated $300 University of industrial hemp grown around the world million each year. Tennessee tobacco specialist Eric annually, China, Russia and South Korea However, despite reticence from the Walker, at front, and account for 70% of the world’s supply, federal government, this is changing. Agriculture Extension according to the Kentucky Department of To date, 13 states — California, Col- director Rob Ellis Agriculture. orado, Indiana, Kentucky, Maine, Mon- inspect a one- In fact, the U.S. is the only industrial- tana, North Dakota, Oregon, South Car- acre plot of hemp slated for herbicide ized nation that prohibits commercialized olina, Tennessee, Vermont, Virginia and trials in Greenville, industrial hemp production. Hemp is used West Virginia — have legal statutes to Tennessee. Photo by to create everything from textiles to beau- establish commercial hemp programs, Clay Duda. ty products. Although it lacks the psycho- according to the National Conference of active properties and high-THC charac- State Legislators. teristics of its cousin marijuana, the U.S. Tennessee is one of the most recent must rely on imports to meet hemp-prod- states to pass such a statute. The state’s

78 | Marijuana Venture // April 2016 Kush Bottles Finola is one of the selected hemp varieties trialed by Still Point Farms. IF YOU DON’T Photo by Harold Jarboe. DO YOUR FIELDS RIGHT, YOU GET DINGED ... IT’S “TRICKIER THAN SOYBEANS AND CORN

2014 Farm Bill allows for industrial hemp production as part of a research or pilot project. For the first time in more than 70 years, Tennessee farmers grew hemp. “Forty-seven farmers applied for more than 1,500 acres in the state (in 2015); however, due to various factors, only roughly 1,000 acres were tested by the Tennessee Department of Agriculture,” said Colleen Keahey, founder of Tennes- see Hemp Industries Association, who explained that the seeds used were imported from Canada. Keahey said most of 2015’s crop was a trial of varieties from Parkland Industrial Hemp, Hemp Genetics Interna- tional and EcoFiber. Of the varieties trialed, Keahey said the Canda variety from Parkland Industrial Hemp performed best. The goal was to experiment with different seed varieties and determine which thrived in Tennes- see’s climate and growing conditions. Because the U.S. had eradicated many of the hemp varieties that grew naturally throughout the country, Keahey said the crop needed to be imported and reestab- lished. Overall, farmers discovered that producing hemp wasn’t exactly easy. “The myth about hemp being able to grow anywhere is just that,” said Har- old Jarboe, chief operating officer for Still Point Farms and Cumberland River Hemp, two companies that grew 180 total acres of hemp for seed and extract. “If you don’t do your fields right, you get dinged,” he said. “We went into it thinking research and development, and we still underestimated what it took to grow large-scale agricultural hemp. It’s trickier than soybeans and corn — but we

80 | Marijuana Venture // April 2016 RX Green Solutions One of the first hemp stalks to be grown on Tennessee soil in 70 years. learned.” Photo by Harold Jarboe. In addition to the challenge of growing hemp, Tennessee farmers faced other ob- stacles. “The Department of Agriculture received shipments of seed later in the season than we had hoped, although all of our licensed growers were able to plant,” explained Corinne Gould, communications director for the Tennessee Depart- ment of Agriculture. The Department of Agriculture applied to the Drug Enforcement Administration for a permit to import hemp seeds in No- vember of 2014, but the DEA held out on issuing the permit until May 2015. This meant farmers were forced to wait until early June to start their crops, missing the ideal late April or early May planting time last year. Aside from the governmental red tape, growers also had to contend with fickle Mother Nature. “If you farm, you can do everything right, but if the weather doesn’t cooper- ate, you can’t grow,” Jarboe said, noting that the state experienced the wettest, coldest weather in 75 to 80 years. The extra moisture meant many farm-

Reid Instruments

82 | Marijuana Venture // April 2016 Hydrologic “I think I would have to describe the first year as historic,” Keahey said. “It I THINK I WOULD HAVE TO was incredibly difficult and there were no guarantees. The first year is always a DESCRIBE THE FIRST YEAR AS risk.” Keahey said the pilot program was HISTORIC. IT WAS INCREDIBLY successful in weeding out varieties that won’t work, but it’s still too early to de- DIFFICULT AND THERE WERE termine whether it’s worth the effort to continue growing industrial hemp in Ten- NO GUARANTEES. nessee. Although some farmers were disappointed with the results of 2015, many “ are dedicated to sticking with the program ers, particularly those who were growing Jarboe described the latter as a chick- and helping it succeed. organic hemp, lost crops to weed pres- en-and-egg problem: Farmers need the “Growing hemp humbled us, and it sure. Because there aren’t currently pes- processing plants to manage the finished made us dog-determined to do it better,” ticides or herbicides approved for use on crop, but companies won’t commit to said Jarboe, one of the farmers committed hemp, farmers were on their own with building processing plants until the crop to growing hemp again this year. “Deep respect to weed management for johnson- is grown well. down, farmers like making good food grass and pigweed. “It’s the Wild, Wild West when it for people. Seed is very important to us, Jarboe said there was a lot of money comes to hemp,” Jarboe said. “There ar- and the demand for seed will continue to lost in Tennessee, but also a lot of infor- en’t a lot of facilities and factories to take grow.” mation gained in the process. the product and do something with it. It’s While Jarboe expects the third year — Some of the knowledge includes tricks expensive for farms to process the hemp 2017 — will be the charm for Tennessee of the trade, like planting denser crops themselves.” hemp producers, he hasn’t ruled out the and diversifying. Logistics, such as learn- While the inaugural year for Tennes- possibility of a banner year beginning this ing how to properly harvest hemp and see hemp sounds underwhelming at best, spring. finding processing facilities to handle the many accept that a learning curve was in- “Of course we’re optimistic,” he said, crop, will take longer to resolve. evitable. laughing. “We’re farmers.”

Heliospectra

84 | Marijuana Venture // April 2016 Empire Susan Driscoll, president of Surterra Therapeutics, holds the company’s first medical cannabis plant ready to be grown at the company’s indoor facility. Photo courtesy Surterra Therapeutics.

Amid controversy, Florida program launches

First authorized nursery begins cultivation of low-THC cannabis, but lawsuits and the program’s limitations create an uncertain future ― ― ― By GARRETT RUDOLPH

t’s not much, but it’s better than nothing. signed into law by Governor Rick Scott in June of 2014, just a few months before That’s the general impression many people have voters ultimately rejected Amendment 2, about Florida’s low-THC medical marijuana pro- a far more comprehensive medical canna- gram, which could start supplying patients within a bis initiative. Despite receiving 58% of the vote, the constitutional amendment few months. needed a 60% supermajority to pass. United for Care, the organization behind IOn Feb. 24, Surterra Therapeutics, one said in a recent press release. “We have the failed 2014 amendment, has regrouped of the five nurseries licensed to grow can- plants in the ground and we are on track and gathered enough signatures to put an- nabis, announced that it officially began to open our first Surterra store in Tampa other amendment on the ballot this fall. cultivation and will have products avail- as soon as June. We are anxious to bring The Florida Right to Medical Marijuana able as soon as dispensaries open. relief and help to the patients of Florida.” initiative addresses critics’ concerns about “Surterra Therapeutics is moving as Most advocates say Florida’s Compas- overly vague language in the 2014 amend- quickly as possible to provide patients sionate Medical Cannabis Act of 2014 ment by specifying epilepsy, glaucoma, with the safest therapeutic cannabis prod- falls woefully short of providing the safe HIV, AIDS, ALS, PTSD, Crohn’s disease, ucts,” Surterra president Susan Driscoll access needed to support patients. It was Parkinson’s disease and multiple sclerosis

86 | Marijuana Venture // April 2016 Uncle Ike’s as qualifying conditions. Hackney Nursery The 2016 proposal would task the state Company Department of Health with registering and regulating caregivers, but it would not allow patients to cultivate their own Chestnut Hill cannabis. Tree Farm However, until further reforms are en- (Southwest) and acted, only patients with chronic seizures, Knox Nursery in muscle spasms, epilepsy or cancer will Winter Garden (Central). Alpha Foliage, the parent company of be able to access state-legal medical can- Knox Nursery nabis through the current program. The Surterra Therapeutics, and its affiliated existing law limits medical marijuana nurseries maintain more than 350 acres to 0.8% THC and requires at least 10% near the southern tip of Florida. The com- CBD, and featured exceedingly steep pany has been growing tropical foliage for minimum qualifications for licensure. more than three decades, and sells about Applicants had to be in business for at 2 million fern baskets annually, according least 30 years and have the ability to grow to a Miami Herald story from 2014. at least 400,000 plants. The license itself Although Surterra is pushing forward cost $150,000. with cultivation, the program and its Costa Once selected for licensing, growers Nursery licensees are not without controversy. were required to post a $5 million perfor- Farms In December 2015, 11 nurseries filed mance bond. challenges to the state Department of Alpha Foliage Twenty-eight nurseries applied. Five nurseries were awarded licenses through Health’s licensing decisions. Three nurs- a merit-based application process to rep- eries followed through with a joint lawsuit against the Department of Health, resent different regions: Hackney Nursery attorney James Chestnut Hill Tree Farm, Knox Nursery Company in Quincy (Northwest), Chest- McKee. and Surterra Therapeutics, claiming the nut Hill Tree Farm in Alachua (North- Surterra received east), Costa Nursery Farms in Miami applications “fail to meet even basic qual- its authorization to (Southeast), Alpha Foliage in Homestead ifications,” according to a press release by begin cultivation on Feb. 12, one day after its Department of Health inspection. It was the first licensee to receive its inspection. Including its cultivation centers and dispensaries, Surterra Therapeutics has plans for more than 15 locations and projects an investment of more than $13 million. “We truly believe that this is a revolution in patient wellness, and Florida is setting the national standard for a responsible, patient-focused program,” Driscoll told the Associated Press in PDI December of 2015. “We see a big shift in patient preferences toward all-natural treatments, and cannabis extracts are at the heart of this trend.” The company expects to create more than 50 jobs over the next several years. Dispensaries are already in the works for Tampa, Miami, Orlando, Tallahasee and Jacksonville. Surterra will utilize an indoor cultivation facility, with an on-site extraction space “to safeguard product quality and safety,” the company said. “Each of the facilities will be maintained in cleanroom conditions to help protect plants from outside toxins or pollutants and to ensure the most natural and pure therapeutic cannabis products.”

88 | Marijuana Venture // April 2016 TraceWeed

Conscientious Cannabis

Quincy Green takes its mission of high-end, sustainably-grown marijuana very seriously ― ― ― Story by GREG JAMES Photos courtesy QUINCY GREEN

n a democratic, capitalist society, con- zlers are marketed as a “low-fat” snack, but only because they’re sumer trends can grow quickly from a 100% sugar. The terms “local,” small movement shared by a well-in- “natural,” “cruelty-free” and formed minority to a fast-moving so- “authentic” are largely left to the interpretation of food manufac- cial tsunami that leads to significant turers. All this has made people lifestyle changes. If there’s a down- who really want organic, natural side to large movements in consumer be- products wondering who they can trust and what the marketing Ihavior, it’s the potential for a lot of overkill departments mean when they use and Madison Avenue excess. terms that invoke verdant farm- land and authenticity. Cynics would say the organ- This gave Big Agro an opportuni- Sadly, the companies often lost ic farming movement has taken ty to take advantage of consum- in the tidal wave are the small pro- such a turn. What was once a er sentiment while not exactly ducers that sparked the movement, cottage industry popularized by being forthright. Log Cabin All and those that stuck to the notion small dairy farmers in Vermont Natural table syrup is all-natural, that a “free-range” chicken should and health-conscious, back-to- but it contains no maple syrup. be allowed to run around the fam- nature types on the West Coast, Instead, it’s made of brown rice ily farm largely unconfined its en- went mainstream a few years ago. syrup, water and sugar. Twiz- tire life, short as that may be.

www.marijuanaventure.com | 91 Just the

Leslie Olson moniters plant growth while FACTS touring her operation. – COMPANY: Quincy Green

OWNERS: Mark and Leslie Olson

LOCATION: Quincy, Washington

LICENSE: Tier 3 producer/processor

SIZE: 21,000 square feet of canopy

EMPLOYEES: 16 during critical times

STYLE: Sun-grown greenhouse and outdoor

PRODUCTION: 75% extraction, CONSCIENTIOUS CANNABIS commercial recreational marijuana. When I first read about Quincy Green, “When Mark and I first talked about the 25% top-shelf flower I admit I was a bit skeptical. The compa- opportunity, we agreed at the onset that ny’s tagline of “Conscientious Cannabis” there would be no expense spared that STRAINS: sounded interesting, but in this day and might cut quality, and no cutting corners 31, divided into age of “healthy” low-fat ice cream, I ex- on things like sustainability and natural five main categories pected a company that probably still emit- farming techniques,” Leslie explained. ted plenty of carbon, created waste and “To us, the undertaking was about more WEBSITE: otherwise acted like most American busi- than making money, or even just produc- www.quincy.green nesses. I would soon learn I was wrong. ing really good marijuana. If we were go- Mark and Leslie Olson first contem- ing to do it, we agreed it would be done plated growing cannabis on a third-gen- our way, even if it meant our costs were CONTACT: eration farm owned by Mark’s family in higher than our competitors. 1-844-747-3360 Quincy, Washington soon after it was an- “A lot of people talk about a labor of nounced that the state would grant licens- love and lowering their carbon footprint, es for marijuana production. Right away but to us we had to put our money where WE AGREED they decided there would be no com- our mouth was,” she added. AT THE ONSET promises on quality or how the product would be cultivated. When I joined Mark FAMILY LEGACY THAT THERE and Leslie to discuss their company, they The phrases “Family Legacy,” “Re- WOULD BE NO both demonstrated a lot of enthusiasm for sponsibly Grown,” “Highest Quality,” an approach they believe will differenti- and “Hand Tended” are prominently dis- EXPENSE SPARED ate Quincy Green from other producers of played on Quincy Green’s marketing col- “THAT MIGHT CUT QUALITY

92 | Marijuana Venture // April 2016 laterals. They are the core beliefs and central driving force behind the operation. So let’s start with Family Legacy: Mark’s family has owned the farm in the small, rural town of Quincy for more than 100 years. It sits on some of the most fertile land in the Columbia Basin, gets 300 days of sunshine a year and is a fixture in the local community. As Leslie explains it, history and community are important to the Olsons. “We love our community, and really wanted to have our neighbors accept this new business,” she said. “So we invited everyone to come by and see what we were doing. We hired local people to work on the farm, and have bent over backwards to be friendly and respectful of our community.” It worked. Their neighbors embraced the new business, and have offered plenty of moral support in the process.

A LOT OF PEOPLE TALK ABOUT A LABOR OF LOVE AND LOWERING THEIR CARBON “FOOTPRINT, BUT TO US WE HAD

TO PUT OUR Quincy Green’s smart MONEY WHERE greenhouse is vital to its sustainable OUR MOUTH WAS operation.

www.marijuanaventure.com | 93 Mark Olson (left) and head grower Steffen Kightlinger (right) outside their snow- covered greenhouse.

HIGHEST QUALITY If this sounds obsessive, it is. But that’s of creating high-quality, low-carbon foot- In the marijuana business, everyone how the Quincy Green farm operates.” print marijuana, and decided it was all or creates the highest-quality pot. Or so they nothing,” Lindsay said. “That even ex- say. In the case of Quincy Green, some RESPONSIBLY GROWN tended to our packaging choices. All our might say its commitment to quality has Lindsay Gatz, the Quincy Green de- boxes are printed on recycled stock with been a bit over the top. Not to Leslie. signer, echoed many of Leslie’s feelings. soy-based ink, and our zip bags are made “It might sound obsessive,” she said, “We thought about the whole process of biodegradable, low-density polyeth- “but we wanted to take the whole con- ylene, certified to be biodegradable 15% cept of really great, boutique-quality in the first year.” marijuana to a new level. For example, The attention to detail with packaging we chose many award-winning strains, IF THIS SOUNDS is just the tip of the iceberg. The Quincy grew them from seed to establish supe- Green facility is basically two different rior phenotypes, and built a ‘smart’ tech- OBSESSIVE, IT IS. farms in one. Outside, there are plenty nology greenhouse to provide a state-of- of big, green, beautiful cannabis plants. the-art grow environment.” BUT THAT’S HOW They are grown naturally and allowed to She explained that last summer, “some develop as nature intended, in a more or of our flowers inadvertently got exposed QUINCY GREEN less unrefined state. While they are wa- to dust. Rather than taking a chance, we tered and cared for with lot of attention, sent that flower to extraction, and sold OPERATES the Olsons’ plan called for their expan- only the perfect buds that were pristine. “ sive outdoor crop to be used primarily for

94 | Marijuana Venture // April 2016 the production of extracts and oils. The true heart of the Quincy Green operation — and the Olsons’ pride and joy — is a state-of-the-art “smart” greenhouse that was custom-designed for them. Instead of using glass, plastic or other traditional greenhouse construction materials, the Olsons used a steel frame structure with a polyethylene weave cover that is designed to filter out harmful UV rays while also allowing just the right amount of PAR ra- diation to pass through. The structure is fully automated and computer-controlled. When put into practice, this means that light, heat, humidity, air circulation and several other environmental factors can be micro-tuned with the touch of a button. It also means that the farm can produce top-shelf product year-round while using a comparatively small amount of power.

HAND TENDED As with everything else at Quincy Green, the flower receives special treatment after it’s dried and cured. Every single bud that goes to market is first hand-trimmed and then carefully sorted according to size. After that, the flowers are visually inspected for any flaws. To say that Leslie is quality-conscious would Canyon Slumber, be an understatement. She made it clear one of the packages from Quincy’s five-color that the buds at Quincy Green are to mar- system. Below: Packages ijuana what Screaming Eagle, Silver Oak ready for shipment. and Quilceda Creek are to wine. In other words, it’s an absolutely uncompromising production environment designed with the goal of providing a premium experience in every package.

CHOOSE YOUR MOOD When the subject turned to strains and their effects, the conversation got really interesting. While it’s widely accepted that different strains provide different experiences, the Olsons wanted to create a system that made consumer choices less confusing. After some input from friends, employees and family, they settled on a simple five-color system that is prominent on all Quincy Green packages, and also acts as a general guide for all the various strains of cannabis. The strain categories are Wild Fire

www.marijuanaventure.com | 95 The finished product. Wild Fire (red) Sativa Experience: Creativity, inspiration, uplifting Strains include: Sour Amnesia, Dirty Girl, Laughing Buddha

Desert Mustang (orange) Sativa inspired Experience: Partying, conversation, laughter Strains include: White Widow, Jack Herer, NYC Sour Diesel

Mesa Tranquility (green) Hybrid Experience: Melt stress, reduce anxiety Strains include: Blue Dream, Girl Scout Cookies, Lavender

Basalt Zone (purple) Indica inspired (red), Desert Mustang (orange), Mesa Experience: “The Stoned Zone,” introspection Tranquility (green), Basalt Zone (purple) Strains include: Mendocino Purp, Tahoe OG, MK Ultra and Canyon Slumber (blue). Each is said to produce a different range of experienc- (blue) es and effects. Canyon Slumber “We love what we do, and we wanted Indica to take some of the confusion out of the Experience: Deep relaxation, blissful dreams decision of what to buy at retail,” Mark Strains include: Bubba Kush, Big Bud, Purple Kush said. “In a sense, you could say it’s not unlike the way top wineries suggest food pairings and cellar times. In our case, we simply wanted to let the consumer know that they could count on a consistent result from any of the many strains in our lines. In other words, if you like what you got from a strain in Mesa Tranquility, you can be certain that another variety in that line will give you roughly the same results. “To us, consumer trust is our number one goal. Without it, you have nothing,” she added.

CONSUMER TRUST IS

OUR NUMBER After harvest, the crop is left ONE GOAL to hang dry until “ ready to trim. 96 | Marijuana Venture // April 2016 MJ Business Conference Going Solar Emerald Pharms represents the culmination of two decades of alternative energy in Northern California ― ― ― By PATRICK WAGNER

n the hills of Mendocino County, before the region The 1,200-square-foot dispensary sits in the heart of John Schaeffer’s Solar became known as the Emerald Triangle, cannabis Living Center, a three-tiered, solar-pow- farmers helped pioneer the solar power industry ered complex dedicated to promoting through their need for off-the-grid living. and supplying sustainable lifestyles. The 12-acre property in Hopland houses ed- Now, decades later, alternative energy and canna- ucational exhibits, Emerald Pharms and bis remain intertwined in Northern California, where the Real Goods eco-store, which originally opened in 1978 and sold the first Emerald Pharms became the world’s first solar-powered photovoltaic panel to a local cannabis Imedical marijuana dispensary when it opened last year. grower, Schaeffer says.

98 | Marijuana Venture // April 2016 GreenBroz A variety of California medical exclusives are available for cardholders to choose from at Emerald Pharms. Photo courtesy Emerald Pharms.

Commercial cannabis farming and the the marriage between green energy and Schaeffer says building a solar-pow- fledgling solar industry formed a symbi- alternative medicine. Schaeffer sought ered dispensary would normally cost at otic relationship. out Martin Lee as a consultant for the least $25,000 more than a traditional- “It’s come full-circle and it’s time to project, because of Lee’s ongoing work ly-powered facility. But since Emerald encourage something like that to come to as the director of Project CBD, a Cali- Pharms was built as an addition to his the Solar Living Center,” says Schaeffer, fornia-based nonprofit dedicated to the complex, the real costs were more a mat- who founded Real Goods and bought it ter of navigating California gray-area back from its parent corporation in 2014. medical marijuana laws. The Solar Living Center is “more “As prohibition is going away, and symbolic than anything,” Schaeffer says. WE ARE 100% now that the regulations are changing, “It’s showing that you’re cutting-edge there’s a lot of needle-threading to do in in terms of fossil fuel footprint because POWERED BY terms of county and state regulations,” we’re 100% powered by the sun,” he he says. “A lot of the regulatory func- says. “You’re not using fossil fuel to keep THE SUN tions were very confusing and tricky.” people off the grid. Cannabis growers are The property lies on a narrow stretch the ones who pioneered the whole econ- medical attributes of cannabis. Lee, who of California’s Highway 101, where traf- omy in the Emerald Triangle, so they’re has also authored books charting the his- fic dwindles down to two lanes and driv- tied in symbolically with each other.” tory of both marijuana and LSD, saw the ers going both directions have a full view Emerald Pharms is somewhat of an value of the project immediately. of the property. Today, the Solar Living homage to Real Goods’ early patrons, Lee says Schaeffer “wanted a dispensa- Center draws almost 200,000 visitors but it serves as a proof of concept for “ry that had a serious medical aspect to it.” each year, making it one of the largest 100 | Marijuana Venture // April 2016 FOR SALE For Sale: Okanogan IDEAL LAND FOR A 502 OPERATION, WITHProperty WATER RIGHTS!

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Kathy Wilcox$497,000 • Okanogan County Realty LLC • 509-826-7130 Schaeffer’s Solar Living Center spans 12 acres and includes multiple tourist attractions. Photo courtesy Emerald Pharms. tourist attractions between the Golden at it like it’s a medicinal herb, just like Emerald Triangle. Teaching people how Gate Bridge and Oregon’s Crater Lake. the lavender in the children’s garden.” solar does meld with cannabis and sort of The dispensary does not include an Schaeffer believes Emerald Pharms integrating the two disciplines together.” on-site grow; however, Lee says there will do more for the center than just add Alongside the heirloom genetics and have been talks of setting up a CBD-fo- customers. assortments of THC- and CBD-infused cused greenhouse as a public attraction. “It’s a more well-rounded offering,” products, visitors have the option to ex- “We just want to position ourselves in he says. “Getting into the health and plore the other compound attractions that a way to reflect positively on the industry healing products and conscientiousness. Schaeffer has been building since 1994. and the community,” Lee says. “We look Supporting all of our local growers in the The center has a variety of art sculp-

Adherence Compliance

102 | Marijuana Venture // April 2016 Growth Products tures lining the shores of its ponds, where walkways take visitors through the various gardens and attractions. The center features a bamboo pyramid, solar calendar, hoops tipi, workshop yurt, camping area and a series of five classic hot-rods staked into place by the trees growing up through the steel frames. “Last December we put in an observation bee hive and we put in a pollinator garden for food for the bees,” Schaeffer says. “We’ve also put in a lavender labyrinth.” The scope of the project has been expanding ever since Schaeffer came to the area in 1971. Since then, Schaeffer has opened two other Real Goods locations. He launched the first ever “Off-the-Grid Day” where U.S. residents are encouraged to shut off all power for two hours to better understand their dependency on the utility grid. Schaeffer was even invited to the White House by President Bill Clinton to help in the “Greening of the White House.” After selling that first solar panel in 1978, Schaeffer saw that his customers were actually refugee hippies from across the country who settled into the Mendocino hillsides for quiet lives as cannabis farmers. “They were part of the early solar movement,” he says. “We’d have executives from ARCO Solar coming up in business suits trying to figure out why this tiny little country store in the hills of Mendocino County was selling hundreds of thousands of solar panels, only to discover it was because the cannabis growers were the only ones who could afford the panels and they couldn’t live off-grid out in the hills without the support of solar.”

GSB Law

104 | Marijuana Venture // April 2016 KNOWLEDGE –––––––– is –––––––– POWER Front Runner Front Runner is Washington’s premier i502 business intelligence website for recreational marijuana data

“You can’t afford NOT to have this information”

www.frontrunnerdata.com LEGAL PAGES

Rico is self-governing, but not completely sovereign, and faces unique challeng- Highlighting slow, steady es and opportunities to those of various tribal nations. However, in January, the progress in the East Puerto Rico Health Department adopted the first regulations allowing cultivation, New York and Puerto Rico have already taken big steps manufacturing and distribution, which By Lauren Rudick will be governed jointly by the Health and Agriculture departments, the Uni- eportedly, legal yet New York patients are plagued by is- versity of Puerto Rico and the local po- Rsales of cannabis sues of affordability. The least expensive in the United States products are more than $100 and month- lice. will reach $6.8 bil- ly costs range from $300 to $2,000 per In some ways, Puerto Rico seems lion in 2016, with month out of pocket. to have taken a page from New York’s that figure expected The Compassionate Care Act permits playbook. Similar to New York, canna- to climb to more than licensees to provide income-based dis- bis will be available in limited forms and $21 billion by the counts to patients who qualify, and sev- only to those suffering from the most end of the decade. eral dispensaries have offered discounts serious medical conditions. Chemical These numbers optimistically assume to low-income patients. Nonetheless, an products, smoking and home cultivation successful legalization efforts in the increasing number of would-be patients are all prohibited. East, including the implementation of are opting out of the program, citing Testing by independent laboratories programs in states where full legaliza- pricing concerns. Patient advocates and and extensive security measures are re- tion is predicted (Maine, Massachusetts investors are working toward a legisla- quired. Early reports predict low patient and Vermont), the expansion of restric- tive fix, following unsuccessful efforts numbers and increasing concern that a tive medical programs (New York and to persuade Governor Andrew Cuomo to slow start will attract “undesirable” in- New Jersey), and the establishment of change restrictions affecting the price of vestors, such as foreign pharmacies that entirely new programs (Pennsylvania, medical cannabis. are already established and in an eco- Ohio and Puerto Rico). Meanwhile, patients and investors in nomic position to garner favor with local As positive data reflects the growth of New York may be encouraged by move- government. cannabis companies and states collect ment within the Shinnecock Indian Na- Nonetheless, the majority of Puerto impressive tax revenues, the pressure to tion, one of eight federally recognized Ricans believe that legal cannabis may satisfy political constituents and create tribal nations in New York. In early Feb- be the ticket to prevent financial ruin and safe, legal access to cannabis is mount- ruary, the Shinnecock Nation voted to a public health care crisis. The U.S. terri- ing. join approximately 15 other tribal nations tory is currently more than $70 billion in There have already been some big that are exploring the business of medi- debt. The current regulations have yet to moves this year in the East, including cal cannabis across the United States. be finalized and may be rewritten by the progress in New York and the launch of Reportedly, the Shinnecock Nation, in next governor. Gaby Pagán, activist and Puerto Rico’s medical cannabis program. consultation with the U.S. Department of owner of San Juan’s popular Monticel- Justice and the state of New York, plans lo Smoke Shop, is optimistic that tight NEW YORK to erect a 32,000-square-foot cultivation regulations will inspire educated and When asked how big New York’s legal facility and dispensary in Southampton. sustainable decision-making, resulting cannabis program can and will be, state That the Shinnecock Nation did not par- in organic, non-toxic medicine. Sen. Diane Savino proudly proclaimed, ticipate in New York’s licensing program Citing Puerto Rico’s proximity to “New York does everything big.” should keep startup costs down, allow- the equator, 12-hour daylight cycle and But “big” is not yet an adjective that ing them to provide cannabis at a lower available tax incentives, Pagán says “the can be used to describe the state’s cur- cost than New York’s existing licensees. cannabis industry looks favorable for rent program, with only the direst medi- The tribe has not entered into a compact external funding without compromising cal conditions qualifying, a maximum of with the state, as was done in Washing- the integrity of local commerce.” five licensed cultivators, mandatory ver- ton, so details concerning the extent to tical integration, 20 total dispensaries, which the Shinnecock Nation may devi- Lauren Rudick represents investors a maximum of five strains per licensee, ate from New York’s regulatory scheme and startup organizations in all aspects unprecedented caps on THC levels, and remain unknown. of business and intellectual property the prohibition of smoking, edibles and law, specializing in cannabis, media and whole plant formulas. Patients and in- PUERTO RICO technology. Her law firm, Hiller, PC, is vestors in New York can only look at the Medical cannabis was effectively le- a white-shoe boutique firm with a track long-term approach. galized in Puerto Rico via executive record for success, handling sophisticat- According to Julie Netherland of the order in May 2015 — an unprecedented ed legal matters including business and Drug Policy Alliance, sales have begun, mechanism. The U.S. territory of Puerto corporate law.

106 | Marijuana Venture // April 2016 Groco LEGAL PAGES Six warning signs of inadequate consulting firms Are they looking out for your business or their own? By Katie Podein onsulting firms provided at an additional cost. Cclaiming to spe- Make it clear that you must give written cialize in the manage- consent before the consultant performs ad- ment and oversight ditional services or spends money on your of cannabis business- behalf. Also, outline deliverables with due es have been rapidly dates and reports if applicable to your busi- increasing in recent ness. This doesn’t need to be included in the years. While some contract; an email exchange should suffice. firms provide invaluable expertise for the • Turn-key solutions for your business: growing industry, others appear to be mere The political atmosphere, physical loca- charlatans attempting to strike it rich. tion of your business, competition and CoolJarz In order to help cannabis business- phase of the business cycle should all be es navigate the potentially destructive taken into consideration. Consultants who minefield of bad consulting firms, here claim to have a turn-key solution for your are six warning signs to look for: business are mistaken. Good consultants • Opportunities that sound too good to know that what worked for one client may be true: If it sounds too good to be true, not work for every client. If the consultant it usually is. The most common and in- is not willing to go the extra mile to pro- jurious claim I’ve found is the promise vide tailored solutions for your business, of a local or state license to operate your then you should find one who will. business. No company can guarantee you • You never hear the bad news: No one will receive a license. Because of the wants to hear bad news, and being the one specific nature of the approval process, to divulge it can be even worse. However, any company that makes this unqualified a consultant’s advice must be based on re- statement is — to put it bluntly — either ality, which includes addressing all the pit- stupid or lying. Proceed with caution if falls of operating in the cannabis industry. If any consulting firm attempts to get your you’re only hearing positive news, then it’s business by making fantastic and un- time to find a consultant who will tell you founded claims. the whole truth — both good and bad. • Undisclosed conflicts of interest: In • Poor communication skills: The cli- regards to licensing, many local authori- ent-consultant relationship can have a ties will only issue a limited number. One direct impact on the success of your busi- question a business owner should ask is ness. A smart consultant understands this whether the consultant has any other cli- and knows how to foster this relationship. ents who are seeking licenses in your city In the initial meeting, consultants should or county. If so, you and the other client freely share their background, qualifica- may be fighting for the same license. Ask tions and skills, as well as those details whether the consultant has a resolution about their staff members. Additionally, for this potential conflict. It’s a glaring there should be an open line of commu- warning sign if the consultant is not pre- nication to ensure your concerns are ad- pared to answer these questions. dressed and goals are met. • A big price tag for an unknown outcome: You should demand to know the ex- Katie Podein is an attorney with Cal- act details of what consulting and advisory ifornia Cannabis Law Group (www. services the firm will provide. The consul- califcannlaw.com). She assists clients in tant should draft a proposal that includes a navigating California’s rapidly evolving price quote, the strategy, steps for imple- cannabis market. She can be reached by mentation and a list of services that will be email at [email protected].

108 | Marijuana Venture // April 2016 Clarity Farms Good Earth Organics CoolJarz P.O.V. is a monthly section in Marijuana Venture showing images of operational cannabis businesses throughout the U.S. and Canada. P.O.V. To submit photos for consideration in future issues email: [email protected].

Ben Wu, president of Kush Bottles, speaks with Aaron Smith (right) of the National Cannabis Indus- try Association at the Cannabis Collaborative Conference. Photo by Ryan Selewicz.

Innovation Agency president Randall Huft (left) speaks to cannabis industry professionals about branding in a regulated industry. Photo by Ryan Selewicz.

www.marijuanaventure.com | 111 P.O.V.

John Petty of Weed TraQR answers questions from CannaCon attendee. Photo by Chloé Mehring.

Marijuana Venture staff members Garrett Rudolph (left) and Patrick Wagner (right) pose for a photo with Karin Roscoe of Clean Green Certified at CannaCon.

Five businesswomen participate in a seminar about the state of the industry during CannaCon. Pictured, from left to right: Crystal Oliver of Washington’s Finest Cannabis, Shawn DeNae of Washington Bud Com- pany, Sharon Whitson of Seattle Hempfest, Danielle Rosellison of Trail Blazin’ Productions and Kristine Morgan of Marijuana Business Association. Photo by Kayla Kliphardt.

112 | Marijuana Venture // AprilMarch 2016 2016 Record attendance at CannaCon 2016. Photo by Chloé Mehring.

Legendary attorney/activist Don Wirtshafter leads a tour of fascinating hemp memorabilia for a group of CannaCon attendees. Photo by Garrett Rudolph.

Kip Vernaglia, of Elem-n-tal Digital, speaks with a potential customer at CannaCon. Photo by Chloé Mehring. www.marijuanaventure.com | 113 P.O.V.

Jessica Jordan, owner of Mari J’s Highway Pot Shop. Photo by Kayla Kliphardt.

Plant Sciences USA reps discuss the advantages of LED lights with a potential customer. Photo by Chloé Mehring.

114 | Marijuana Venture // AprilMarch 2016 2016 Canna Safety

Jay Griffin of the Denver Consulting Group talks with a prospective client at his booth during the Cannabis Collaborative Conference. Photo by Ryan Selewicz.

Break time on the farm: A worker at Clarity Farms kicks back with a copy of the best trade magazine in the marijuana business during the summer of 2015. Photo courtesy Clarity Farms.

www.marijuanaventure.com | 115 The Laws of CROP PROTECTION

Everything growers need to know about regulations on products that combat powdery mildew, spider mites and other common pests and diseases ― ― ― By KARLI PETROVIC

hen battling the pests and diseases that damage and destroy cannabis crops, it’s important to be prepared. Of course, this is easier said than done. While growers who produce ornamen- tal plants can often select any number of chemicals off the shelf at the local garden center, marijuanaW growers must be much more selective.

LEGALITIES AND LABELING LAWS is illegal to use certain pesticides on Although unlikely to be a major sto- marijuana plants. In fact, Colorado De- ryline in a primetime crime drama, it partment of Agriculture spokeswoman

116 | Marijuana Venture // April 2016 Helderpad Christi Lightcap says very few pes- ers legalized medical marijuana in ticides are approved for use on this Washington in 1998. However, it crop. wasn’t until recreational marijuana “The label — the directions for was legalized in 2012 that people use — that comes with each pesti- started questioning what pesticides PESTICIDE- cide is a legal document, and any were being used on the crops, says use inconsistent with the label direc- Erik W. Johansen, the Washington RELATED RECALLS tions is a violation of both Colorado State Department of Agriculture’s law and federal law,” she explains. pesticide expert. Lightcap notes that marijuana is not “At that point, we started working THREATEN MORE listed as a use on any pesticide la- with the EPA and the Colorado De- bels, a situation that may remain un- partment of Agriculture to try and THAN CREDIBILITY changed for some time. figure out what types of products The U.S. Environmental Protec- were allowed for use on marijuana,” Business owners must tion Agency is “unlikely to allow Johansen explains, noting that the understand product liability marijuana on a label until the feder- criteria was finalized in 2013. “Our al status of marijuana as a Schedule first list contained 150 pesticides. ― ― ― I drug is changed,” she says. “This Now we’re up to a little more than By AMMON J. FORD means that only products with very 300 pesticides in late 2015. We’ve broad language on the label can be reviewed more labels and are work- used on marijuana.” ing with the EPA and CDA on a magine receiving a call from one A phrase like “for use on any crop” process for allowing additional pes- of your main suppliers, telling you is one example of broad label lan- ticides on the list.” I something went wrong with their last guage. Of the hundreds of thousands While more than 300 options may shipment. They say there’s a relatively of pesticide products available on the seem adequate, Johansen says the small chance those products could market, the Colorado Department pesticides contain only 70 to 80 ac- cause serious injury to somebody. How of Agriculture has identified a mere tive ingredients, meaning there are do you proceed? 250 that can be used on marijuana. a lot of different brand names for The department hopes to have deter- essentially the same product. For mined and implemented rules classi- example, there are about 20 prod- What is product liability? fying the standards for pesticide use ucts containing indole-3-butyric acid For several months now, marijuana on cannabis by spring of 2016. (IBA). businesses in Colorado and Washing- While Lightcap says these rules Of the allowed products, pesti- ton have been dealing with product re- might further restrict the chemicals cides usually fall into one of two calls due to contamination from banned that can be used, there’s a possibil- categories: biopesticides (which are pesticides. Although there haven’t been ity that certain EPA-registered pes- derived from natural sources such as any reported deaths associated with ticides may be registered for “spe- microbes, bacteria or plant extracts) tainted cannabis products, it’s critical cial local needs and organic pesti- that businesses take every precaution (SLN).” cides. possible. “We have been READ THE Synthetic pesti- Managing risk is tricky in any field, working closely cides are not an op- but in the hyper-regulated cannabis with EPA to figure LABEL tion, because mari- industry, it can be everything. Product out how SLN reg- juana is smoked or recalls are costly. Announcements must istrations can be FULLY AND consumed, thereby be sent out warning consumers and approved by Col- classifying it as a regulators. On a tight production sched- orado with label food crop. ule, businesses might struggle to fulfill directions specific CAREFULLY This is good for demand and shipments will be delayed. for use on marijuana and hemp,” consumers, but synthetic pesticide says Lightcap. formulas tend to be more effective Managers must consider the best “In some cases, research studies against tough-to-tackle pests and interests of their company, their inves- may be needed of the“ pesticide resi- diseases. tors and their communities, but nobody dues left on marijuana before we can “What we’ve heard from grow- wants to live with the possibility of ac- complete a human health risk assess- ers over the past two years is that cidentally hurting or killing one of their ment and make an SLN decision.” the products for spider mites and customers. Although Colorado has led the powdery mildew are not necessari- Poorly handling a product liability issue charge on determining what crop ly what they need,” Johansen says. can lead to unhappy investors and los- protection products are appropriate “That’s why we are getting guidance ing the trust of customers. A dangerous for marijuana plants, Washington on a mechanism for getting addi- product is a legal and ethical problem, and Oregon are following suit. Vot- tional products to growers.”

118 | Marijuana Venture // April 2016

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SAVE YOUR APPLICATION! 509.846.9522 not to mention a public relations night- CONSUMER TRENDS is John Sladek. A cannabis grow- mare. As the states continue to crack er for more than 40 years, Sladek Product liability law applies broadly down on what pesticides can be used originally learned to grow medici- to all consumer goods, and is very on marijuana plants, crop protection nal marijuana on the fly when his strict about making companies pay manufacturers who want to com- wife was diagnosed with cancer in when someone is injured. Courts and pete in the marketplace must create the 1970s. After her death, Sladek lawmakers have written strict product products that account for the tighter continued growing marijuana us- liability laws in order to protect the restrictions. ing organic products for others in public and encourage consumers’ trust “I think everyone, even those in need. in private business. the horticultural world, has a stan- While growers currently have a dard they are trying to achieve,” variety of pesticide options, chang- Most states recognize at least three says Jeff Kline, product manager ing regulations are sure to impact types of product defects: for BioSafe Systems. “A lot of it is the number of products on the mar- • A manufacturer’s defect, where a driven by the consumer being more ket. The onus is on individual states manufacturing error causes the product aware of what’s being put on their to ensure product safety. Kline sees line to malfunction, such as E. Coli in food and flowers. The same thing that as a positive. ice cream; goes for the cannabis industry.” “The states have done a good job • A design defect, where the product, Susan E. Lewis, founder and pres- of paying attention, learning and as designed, is unreasonably danger- ident of Pharm Solutions, notes a changing what’s going on the crops ous, like lawn darts and heroin; similar trend. to make sure people aren’t negatively “Consumers are more aware these impacted,” he says. “It will be inter- • Failure to give proper instructions or days of organic and pesticide-free esting to see how things go forward warnings about known dangers. This products and seek them out,” she from a regulatory perspective.” is why pharmaceutical commercials says. “We believe this is the future include warnings that users “may expe- for cannabis growers as well. Given THE LEARNING CURVE rience suicidal tendencies” and “should the choice, the consumer will choose As pesticide regulations continue not operate heavy machinery.” organic over products sprayed with to be in flux, each state is recognizing If the consumer can prove that a defect synthetic chemicals.” that education and outreach will be caused their injury, then product liability One person who can attest to this essential to ensure safe application of

OBC Northwest

120 | Marijuana Venture // April 2016 Quincy Green can attach almost automatically to com- legal products. Johansen, for exam- and assistance related to pesticide panies throughout the supply chain. ple, is traveling across Washington use. Although the regulations can to meet with marijuana growers, the be a hassle, safety needs to be a top Washington Marijuana Business Al- concern, she says. Managing liability liance and private consultants to talk “I know that, as with any agri- There is no way to entirely eliminate about proper pesticide use. cultural grower, they are selecting your product liability risk; it can only be He says everybody involved rec- products based on effectiveness on managed. As with much of your busi- ognizes the need for disseminating the pest of concern, safety to the ness, the first step is to develop deliber- accurate information. crop, cost and ease of use. However, ate policies and practices. Businesses “That’s why we’re providing they should also read the label fully should stay up to date on regulations outreach to the industry and telling and carefully prior to purchasing the and implement industry-specific best them what they can use and, more product, to make sure they can le- practices. Avoiding a product defect is importantly, what they can’t,” he gally use it in the way they intend,” always the best option, but when one says. “We also want to talk to them Lightcap says. occurs, it’s important to have a docu- about what they can do to get more “The cannabis industry has an mented history of robust due diligence. products added to the list.” ethical and legal obligation to only In Colorado, Lightcap says the use products that are legal to use and Following state law may keep regu- state Department of Agriculture is currently meet the CDA’s criteria for lators at bay, but it will not be enough providing growers with seminars use.” to shield companies from lawsuits. In 1993, Jack in the Box famously paid millions of dollars in settlements after poisoning 182 people with under- cooked hamburgers. The company cooked the burgers exactly to the THE BLACK LIST federal Food and Drug Administration ith increased scrutiny on pesticides being used on cannabis, particularly for standard of 140 degrees, but failed to Wmedical patients, the Washington State Department of Health recently issued satisfy the Washington state standard a list of black-listed pesticides. Although each state has its own guidelines about which pesticides can and cannot be used on cannabis, most follow a similar proto- of 155 degrees. The mistake damned col. Below is a short summary of the pesticides that are banned for use on medical Jack in the Box’s defense; however, marijuana, along with some of the products where they are known to be found. even if such clear evidence did not exist, a jury would most likely have deter- Abamectin mined that the company should be held Found in: Abba, Abathor, Affirm, Agri-Mek, Avid, Dynamec, Epi-Mek, Genesis liable for the four accidental deaths. Horse Wormer, Reaper, Vertimec, Zephyr, Agriflex, Avicta Juries are often very sympathetic to Abamectin or avermectin is an insecticide, nematicide and acaricide widely used innocent, injured consumers, and a jury in agriculture to combat mites. The chemical is extremely toxic to aquatic life and recognized as a reproductive and developmental toxin. verdict that a company poisoned its customers is never good for business Bifenthrin (or an individual’s conscience). Found in: Brigade, Transport, Talstar Nursery, Scotts, Aloft, Capture, Brigade, Conflicting regulations are ubiquitous Bifenture, Ortho Home Defense Max, Athena, Torant, Mustang, Zipak in the marijuana industry. Under federal A pyrethroid class of chemicals used to fight fire ants, cultivators use bifenthrin to battle gnats, mites, thrips, aphids and other insects. Due to its toxicity, bifenthrin law, the cannabis plant itself has no is known as a groundwater pollutant. The chemical is also known to be a repro- accepted medical use and inherently ductive and developmental toxin. poses a “high potential for abuse.” That legal classification alone could be Chlormequat chloride enough persuade a court that cannabis Found in: PGR, Cycocel, Citadel, NuFarm, Aceto products are “unreasonably dangerous” Often referred to as chloride salt, chlormequat chloride is used to control cell by nature, and therefore defective. elongation in plants. Known for its acute toxicity, chlormequat chloride is not approved to use on crops intended for human or animal consumption. Courts have not yet faced a cannabis product liability case. When they do, Daminozide the cannabis business will most likely Found in: Alar, B-Nine, DMASA, SADH, B 995, Kylar, Sad, Dazide need to defend itself against claims that Extremely cancerous and illegal to use on U.S. food crops, daminozide is a plant their products are unreasonably dan- growth regulator once used by Washington farmers to keep apples from falling gerous. Companies must know what off of trees before harvest. laws and regulations apply and follow DDVP (dichlorvos) them, but it’s important to consider go- Found in: Abco, Benfos, No-Pest, Apavap, Cekusan, Verdisol, Fly-Fighter ing above and beyond the legal safety Commonly abbreviated as DDVP, dichlorvos is an organophosphate that has requirements when possible. Liability been widely used as an insecticide since 1961. Due to its effects on humans, it does not stop after a clean inspection. has been restricted from most domestic uses and applications.

122 | Marijuana Venture // April 2016 For Sale: Grow Operation Imidacloprid Found in: Bayer, Winfield, Amtide, NuFarm, Cleary Chemicals, Cheminova, What is the PR problem? Gaucho, Marathon, Merit, Neonic After a product defect becomes known, A systemic insecticide that acts as an insect neurotoxin, imidacloprid belongs to actions speak louder than words. The the neonicotinoids class of chemicals which impacts the central nervous system of steps taken to protect the brand — and insects. more importantly, its consumers — will Myclobutanil depend entirely on the scope, type, Found in: Eagle 20, Chemsico, Ferti-Lome, Dynasty Extreme, Albaugh, Disarm, severity and geographic breadth of the Nova 40w, Nu-flow, Nufarm, Rally, Spectracide, Agristar defect. Companies need to act quick- Myclobutanil has been at the center of media attention for its use on cannabis ly to protect customers from known crops. The chemical is suspected of having endocrine disruptors and has devel- dangers, and reassure them that the opmental or reproductive toxins. company can be trusted. If consumers doubt the safety or ethics of a particu- Paclobutrazol lar company, they may never buy that Found in: Piccolo, Bonzi, Muskateer, Clipper 20, Andersons Golf, Cambistat, brand again. Trimmit, Tide Paczol, Sepro A plant growth retardant and fungicide, paclobutrazol limits stem growth and in- The cannabis businesses in Colorado creases root development. When applied to soil, the chemical stimulates plants and Washington that have issued prod- to early fruition and protects from frost damage. uct recalls have exposed their repu- tations and their wallets. Consumers, Permethrin media and government agencies will all Found in: Ambush, Dragnet, X-lance, Phaeton, Zoecon, Qamlin, Torpedo, Eksmin Permethrin is a neurotoxin widely used in insecticides and repellents. The chemi- watch them closely. cal is a known carcinogen and is considered to be extremely toxic to fish and cats. What is less obvious is that the entire industry is exposed, as well. The year Piperonyl butoxide 2016 is projected to be a historical Found in: Zoecon, Absorbine, Zeta-cyp, Adams, Whitmire, Anvil, Yates, Diversey, turning point in cannabis legalization. Prozap, Sentry As laws change throughout the world, Piperonyl butoxide (PBO) is an organic compound used as a component of pesticide formulations. It is known to have a moderate acute toxicity risk, possible people are forming new opinions about carcinogens and potential ground water contaminants. cannabis. Some of those consumers will judge the entire industry based on Propiconazole the actions of just a few. Found in: Nufarm, Banner, Mantis, Novel, Fathom, Judo, Spectator, Orbit, Re- The legalization movement has mo- store, PPZ A fungicide also known as DMI, propiconazole uses enzymes to stop cellular growth. mentum because it’s winning the battle It is cited for developmental and reproductive toxins, potential ground water contami- of public opinion. nation, endocrine disruptors, possible carcinogens and for its acute toxicity. That industry branding took decades to create and could take just as long to re- Pyrethrins pair if a pattern of preventable injuries Found in: Safeguard 707-B, Buhach, Zoecon, Ofirmotox, Zone Fog, Zurd Pyrethrins are a class of organic compounds that target the nervous systems of emerges. New laws are fragile, and insects. The chemical is naturally found in chrysanthemum flowers and synthet- any scandal could slow down years of ically recreated by industrial methods. The chemical is listed to be a PAN bad progress. actor for its carcinogens and inhalation causes chronic toxicity. To protect themselves, their customers and the future of the cannabis Spinosad Found in: Conserve, Bonide, Entrust, Bulls-Eye, Bug-N-Sluggo, Elector, Natular, industry, cannabis businesses should Tracer, Blackhawk help create and self-enforce robust Spinosad is an insecticide that is relatively benign to the environment, people safety standards that address all and animals. The chemical is toxic to honey bees and butterflies. foreseeable harms. Detailed warnings and ethical decision-making will go a Spiromesifen long way to protecting brands and the Found in: Oberon, Judo, Forbid industry. An insecticide developed by Bayer, spiromesifen was designed to combat white- flies and mites. Spiromesifen is toxic to fish and non-target insects. The chemical is known to have a low risk of acute toxicity from inhalation and through skin contact. Ammon Ford is a law clerk at Gleam Law, a full-service cannabis business Uniconazole law firm in Seattle. He is the founder Found in: Concise, Fine Agrochemicals, Prunit, Sumagic, Valent An fungicide on the EPA’s carcinogen watch list, uniconazole possesses growth and chairman of the Cannabis Law regulator properties and has a slight acute toxicity risk. Uniconazole is also a Society at Seattle University. He is possible carcinogen and potential ground water contaminant. currently earning his JD and his MBA simultaneously at Seattle University. Sources: Washington State Department of Health, Pesticide Action Network, Confidence Analytics.

124 | Marijuana Venture // April 2016 Marijuana Business Operations Fire is one of the most common causes of property loss.

Property Losses: What can happen? Fire and theft pose the most significant threats ― ― ― By BRENDA WELLS

hen analyzing loss exposures, there ings was so confident nothing bad would happen that he didn’t have enough insur- are two things you have to consider: ance to cover the total destruction of both frequency and severity. Frequency is buildings. how often something might occur, and Finally, think back to the devastation of Hurricane Katrina. Who would have severity is how serious and costly it guessed that more than 1,800 people might be if it does happen. It is import- would be killed by a hurricane? Or that ant to never underestimate either of these dimensions, the city of New Orleans would be inac- cessible for weeks? Very few people pre- butW in my experience, people have a propensity to seri- pared for it appropriately. ously underestimate severity of loss. My point is that losses can happen, and they can be a lot worse than what Consider the Titanic. No one dreamed Another example is the World Trade you predict they will be. Optimism is a that the ship could sink, but it did just that. Center. Those buildings were considered wonderful quality to have, but not when The designers were so sure this ship was indestructible, able to withstand earth- it comes to ignoring the potential for loss unsinkable that they didn’t put enough quakes and, yes, even plane crashes. The of your valuable property — specifically lifeboats on it for all the passengers. businessman who invested in those build- your crops, inventory and cash proceeds.

126 | Marijuana Venture // April 2016 Apeks CROPS AND INVENTORY You know better than anyone how valuable your cannabis crop and inventory are. Fire and theft are the two most likely causes of loss. Have you taken steps to prevent them? If not, don’t wait any longer. You need to assume worst-case scenar- ios and do what you can to minimize the risk of loss. Indoor cultivation systems with extremely powerful grow lights present a serious fire hazard. There are several steps Put a stop to toward having the best protection against fire damage. First, have a monitored fire detection system. This guarantees a timely reaction from first responders in the event of a fire. Also, consider installing a sprinkler system in the building if DIVERSION you don’t already have one. It’s a big expense, but so is losing an entire crop of cannabis. The vast majority of theft in the cannabis Another step you should take is to have a professional elec- industry is internal trician evaluate your wiring and grow set-up to make sure it’s ― ― ― safe from overload. By SARA DEMIANYCZ Surveillance camera systems are relatively cheap these days and can go a long way toward preventing theft. One more thought on theft: Do you know who is most likely to steal from you? Your employees. Make sure you know iversion is an issue that plagues all businesses, but and trust the people who work for you. in the cannabis industry, it can lead to more than just loss of profits. In many states, cannabis business op- D CASH erators face serious consequences for diversion, such I can’t stress enough that you need to be careful when it as license revocation or even criminal liability. However, comes to handling cash. People can and will rob you if they security guards and alarm systems may not be enough know you have cash on hand. I have heard it said by industry protection as a shocking 90% of diversion in the cannabis industry comes from employees. Comparatively, experts that everyone in the cash-based cannabis business has non-cannabis retail industries typically report that ap- been or will be robbed. It doesn’t matter how safe or crime-free proximately 43% of diversion is from internal sources. your town is. Sooner or later you will be a target. (Yes, you!) When I worked at a drug store in high school, the store There are many ways employees divert cash or product manager would take the day’s cash proceeds out in a bank from a cannabis business, including theft, sales manip- bag at the close of business. He would drive them to the bank ulation and robbery assistance. Theft occurs in a variety and put the cash in the night depository. How he kept from of types, from trimmers who report lower harvests and getting robbed is a mystery to me, because thieves watch for keep dried flower for themselves, to employees who those kinds of patterns and behaviors. They study their tar- simply grab cash from an open vault and leave the gets, and they find a weakness in the routine that presents the premises. Sales manipulation happens primarily in dis- opportunity to steal. pensaries and occurs when employees provide exces- sive discounts to friends or themselves, apply coupon codes to sales that do not qualify, or otherwise manip- ulate the point-of-sale system to the detriment of the business. Unfortunately, there have also been reported instances of dispensary employees providing internal security protocols and information to assist in robberies of cannabis businesses.

Strict inventory procedures, state-of-the-art surveillance systems and trained security officers certainly help prevent diversion, but business owners must also implement strong business practices in order to combat theft by employees. It is imperative that each retailer, processor and cultivation facility develop a corporate culture with clearly defined expectations and guidelines for employees. This will help ensure that personal responsibility for compliance and inventory control resonates throughout the business.

High rates of diversion often correlate with high employee turnover. Providing staff with benefits, adequate

128 | Marijuana Venture // April 2016 Nexus Greenhouse discounts and opportunities for career advancement My best advice is to use an armored car service to handle will reduce employee turnover and ultimately reduce your money, which will minimize the risk of robbery in tran- theft. Employees who are able to view their position as a sit. But, until the banking industry gets a bit friendlier to the career, rather than a short-term job, will be cannabis industry, you’re more invested in ensuring the success still going to have to of the company and less willing to risk store cash somewhere, being terminated and losing their bene- and that presents a fits. For this reason, business operators INVENTORY AND CASH risk. Follow as many should consider employing the services of these tips as you of a reputable human resource provider SHOULD BE COUNTED can: with experience in the cannabis industry. • Do not accumu- Not only will they make sure you remain BY AT LEAST TWO late large amounts of compliant with state and federal labor cash at one time. The laws, but they can provide guidance EMPLOYEES more you have, the in reducing turnover and improving more likely you are to employee satisfaction. Many human have it stolen. resource providers will also assist in the • Do not accumulate large amounts of cash in one place. creation of an employee handbook to help set expecta“- If you are storing cash, try to divide it into several smaller tions and guidelines for staff members, which increases amounts placed in different locations. accountability and personal responsibility. • Do not give employees access to cash any more than you absolutely have to. Remember, they are the most likely peo- While physical security measures provide a first layer ple to steal from you. of protection against diversion, detailed behavioral • Get a good, heavy safe for storing cash and protect the protocols and procedures for security greatly reduce combination religiously. opportunities for internal diversion. Inventory and cash • Try not to be alone with large sums of cash. Robbers should be counted by at least two employees at each don’t like witnesses and will usually avoid a large group of shift change with any discrepancies investigated immediately. A schedule and procedure for counting inventory people. must be established and strictly followed. • Criminals hate light — so stay in well-lit, visible areas whenever possible.

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130 | Marijuana Venture // April 2016 For Sale: T-1 Discovering the source of inventory discrepancies is much easier when a specific time frame is known and DO NOT LEAVE information is still fresh. Additionally, requiring a manager or other secondary employee to approve all coupons YOUR BUSINESS and discounts at the point of sale can limit opportunities for sales manipulation. This can be time consuming, but reducing diversion is well worth the extra energy. AT THE SAME TIME This step also allows managers to make certain all employees are appropriately trained on the point-of-sale EACH DAY system, and that they are ringing up sales correctly. • If you are transporting cash, make sure you vary your In order to ensure the success of your cannabis busi- routine. Do not leave your business at the same time each ness, remaining in compliance while minimizing opportu- day. Take a different route each time. Again, an armored car nities for diversion is essential. So refine your business service“ is preferable. practices, set clear roles and expectations for employ- • Be aware of your surroundings at all times. Pay attention ees and provide benefits packages. Happy employees when driving to make sure you aren’t being followed. If you are more invested in the success of the company, and think you are being followed, whip into a parking lot, turn therefore far less inclined to steal. The cost incurred from around and go back out in the opposite direction. If you are offering benefits packages and more extensive training being followed, this will usually put a stop to it. will quickly be outweighed by reducing diversion. Brenda Wells is the Robert F. Bird Distinguished Scholar of Risk and Insurance at East Carolina University. During Sara Demianycz is the client resource manager with her career she has taught insurance courses that include Canna Advisors, a nationwide cannabis consulting firm commercial liability, commercial property and insurer oper- based in Boulder, Colorado. She has a degree in biolog- ical sciences with a focus in neurobiology from Colo- ations. She has published articles on the risk management rado State University and has worked in both medical implications of cannabis legalization and is a sought-after and recreational dispensaries. She can be reached at expert in the risk management and insurance field. She can [email protected]. be contacted at [email protected] with questions or suggestions for future articles.

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132 | Marijuana Venture // April 2016 Tamisum Extractors

Pension Builders The Developing Role of the PHARMACIST

Dispensaries can mitigate the risk of being sued by operating less as careless cannabis retailers and more like savvy medical providers ― ― ― By KAREN CANTON and MARTINA JACCARINO

he evolving role of the medical marijuana sales- ployees must think defensively. Documentation is always the best way person, from budtender to licensed medical to protect oneself in a lawsuit. Waivers, professional, is just beginning. consents, disclosures and questionnaires Those who are willing to be at the cutting edge must be part of every sale of medicine, including medical marijuana. However, of the medical cannabis industry need to know education and meaningful communica- how to reduce the chance of their business being in- tion with patients will benefit businesses T in many different ways. Informed patients volved in an expensive tort lawsuit. will have better results, more realistic expectations and take ownership of the out- Within the American legal system, the the law, a “negative outcome” can be any come. These patients will be less likely to standard of care is defined by juries af- effect that does not fall within the narrow sue, and they will return to your dispensa- ter negative outcomes wind their way confines of the patient’s desired outcome. ry in order to maintain that relationship. through the courts. Some of us do not That means any effect can potentially be Additionally, steps taken toward preven- think cannabis can cause a negative out- considered a negative outcome in a court tion will come into evidence if a lawsuit come, but when it comes to medicine and of law. Dispensary owners and their em- does arise.

134 | Marijuana Venture // April 2016 FarmTek

Bud Bar EVERY BENEFIT The Connecticut way TO ONE PATIENT CAN BE DEFINED AS A RISK TO n the same year that Washington– and Colorado legalized cannabis for all adults, the state of Connecticut quietly ushered ANOTHER Iin a new set of standards for medical marijuana. Governor Dannel Malloy signed legislation to allow medical marijuana in 2012, but instead of following the lax rules established by states “Here are some things dispensary own- west of the Mississippi River, Connecticut became the first state ers and their staff can do to minimize the to require a board-certified, on-site pharmacist to dispense all risk of lawsuits: cannabis products. • Keep yourself and your employees up to date on state and local laws and regula- Nick Tamborrino was one of several pharmacists who saw the tions. This is an absolute must. business opportunity behind the rule. He founded Bluepoint Well- • Know all the procedures and proto- ness in Branford in 2013. cols in place to ensure compliance with “I think having the pharmacist involved legitimizes this in a way,” the law. Your attorney should prepare a Tamborrino said in an interview with Pharmacy Today. manual for you and your employees, but it is up to owners and management to cre- New York and Minnesota, which have some of the most restric- ate an environment where staff members tive medical marijuana laws in the nation, have followed suit with actually read the manual. mandatory, on-site pharmacists. • Demand that your employees keep — Garrett Rudolph themselves up to date on the benefits and risks of medical marijuana. Every benefit to one patient can be defined as a risk to

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136 | Marijuana Venture // April 2016 Titan Clearinghouse

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Shimadzu Scientiﬁ c Instruments, 7102 Riverwood Drive, Columbia, MD 21046; Phone: 800-477-1227 cian, for assistance in selecting products. • Get access to Med-Scape or another SCIENTIFIC Counsel patients about drug interactions high-quality information source for sci- and train employees about the best way entific, peer-reviewed, up-to-date litera- STUDIES OF to ensure patients listen to and understand ture to address any patient questions. This the information. information will be admissible in court, THE RISKS OF • Screen patients with a history of and it is probably the only type of answer psychological illness. There is mounting your employees should give in response MARIJUANA evidence that medical marijuana is not to questions about risks. Unfortunately, worth the increased risk of psychosis for every business has to deal with people FAR OUTWEIGH these patients. At the very least, require looking to pursue a fraudulent claim. a referral from their mental health pro- STUDIES OF fessional. Karen Canton has been in the insur- “ • Have the proper waivers in place to ance and bonds business for more than push liability to the doctor because it 35 years. She is a published author and THE BENEFITS is very difficult to pass liability off to hosts a radio show called Grass Roots the patient. Garden variety patients who Marketing. She can be reached at www. another. Furthermore, scientific studies suffer from chronic pain, but are in oth- mmjbonds.com. of the risks of marijuana far outweigh erwise good health, can be treated by studies of the benefits. Serious business a lay person with basic knowledge of Martina Jaccarino is a trial attorney owners will not permit employees to keep cannabis. But any patient taking mul- who has been practicing in Nevada since their heads in the sand. tiple medications needs to be informed 1995. She has completed more than a doz- • Develop — or have your attorney de- about drug interactions, and must sign en jury trials ranging from multi-million velop — a social and medical use ques- additional waivers. (It is not realistic to dollar brain injury cases to professional tionnaire for your providers to complete rely on the fact that doctors have liabili- negligence cases and insurance contract and update with every patient. Your attor- ty for medical issues. Doctors have been disputes. She has recently been heavily ney can help you develop a scale of risks. developing defensive practices for the involved in Nevada’s medical marijua- Any patient with too many risks should courtroom for more than 40 years, and na program. She also holds a license to be referred to a specific staff member, they will be using their own waivers and practice law in Oregon and North Caroli- preferably a registered nurse or physi- other documentation.) na. Her website is www.mjlawvegas.com.

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138 | Marijuana Venture // April 2016 Cannasure

Eden Labs Shifting from bulk cannabis in glass jars to individually packaged products requires more emphasis on efficiency and design ― ― ― By ALEN NGUYEN

ackaging can be fairly new to those entering • Branding: This seems like a no-brain- er, but you’d be surprised how many cul- the recreational cannabis industry, and there tivators overlook this important part of is a lot that can be learned from those who packaging, or wait until the last minute have gone through Washington’s roll-out. before product hits retail shelves. When Packaging has three major components to it the topic of branding has been approached with growers, many have said something in the cannabis world that should receive spe- along the lines of, “I’m not too worried cial attention: branding, compliance and processing. about that. My product sells itself. It’s

P140 | Marijuana Venture // April 2016 Friendly Farms Friendly Farms

Hort Services top-shelf cannabis.” your custom bag. Previously, when growers sold their • Compliance: In the cannabis indus- BRANDING CAN products to dispensaries, cultivators would try, the rules will change fast, often and bring in a bag of XYZ Company’s canna- without notice. This especially applies IMMEDIATELY bis that was a particular strain and potency. to product packaging and labeling, and Then it would go into a large glass jar, and even more so with infused products. This CREATE A HIGHER it was no longer XYZ’s cannabis. When is probably the most important takeaway sold in this manner, it’s now just a Blue from this whole article: Be careful with PERCEIVED Dream that tested out at 20% THC. With- your packaging investment. out branding or packaging, the product I highly advise against purchasing ex- VALUE THAN would have to sell itself on quality alone. pensive packaging equipment that costs The evolving marketplace allows cus- more than $15,000 unless it can produce a COMPANIES THAT tomers and patients to peruse the variety nationally certified child-resistant package. “ of cultivators producing Blue Dream, With all the rule changes, you could invest DIDN’T PUT AS placing heavier emphasis on brand recog- in a packaging machine that produces an nition. Branding can immediately create amazing product and streamlines your MUCH THOUGHT a higher perceived value than companies operations, but becomes an expensive pa- that didn’t put as much thought into their perweight with just one rule change. This INTO THEIR packaging and design. It also allows cus- hedging of risk also provides the benefit tomers to quickly identify your brand, of being able to test out your branding and PACKAGING AND and remember the quality from the last product. Going with inexpensive packag- time they consumed it. Branding serves ing for your first go-around allows you to DESIGN two purposes: gaining a first-time cus- see what types of products are selling and tomer, and keeping that customer. It also which ones aren’t. Then, after getting that convinces customers to try your other feedback, you can be confident that your products based on the branding alone. If capital investment in a packaging machine they’ve tried your flower before, but want will be well worth it. a pre-rolled joint, then it’s an easy choice The easiest way to mitigate your pack- when they see a joint box that matches aging risk is using child-resistant packag-

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142 | Marijuana Venture // April 2016 Zwart

Harvest Excel ing from the very beginning. This meets a national certification, and removes the gray area subjectivity from the regulatory agency. Most legislative requirements indicate this is one specification that will stay in constant compliance. • Processing: Once you’ve got your branding figured out and you’re in full compliance, the next factors that will set you apart from your competition are pricing and operations. Packaging is the largest bottleneck in any cultivation/processing facility. If you can reduce the labor cost of packaging, you’ll be able to reduce the product cost to customers. The type of packaging has a direct impact on efficiency. Certain types of packaging can take twice as long as others to package flower, which impacts your bottom line.

Alen Nguyen is the CEO of Green Thumb Industries (www.greenthumbind.com), a B2B distribution company for the cannabis industry. He has a bachelor’s degree in electrical engineering from the University of Washington and a master’s degree in business administration from Embry-Rid- dle Aeronautical University. He can be reached at [email protected].

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For some businesses, the gut-wrenching challenge of raising capital marks the first step into the cannabis industry ― ― ― By MARGUERITE ARNOLD

he time has never been better to launch new ven- “This is because of pent-up demand, and tures and obtain private capital, despite the linger- the unique situation of having a black market industry migrate into a regulated indus- ing controversy and higher risks associated with try of the size that it is. The result we are marijuana businesses. seeing is an unexpected availability of cap- “The cannabis industry is falling outside of the stan- ital and realistic valuations for early-stage dard deviations of what would normally be available,” businesses. And the game has just started.” That said, it’s important to be aware of says Leslie Bocskor, managing partner of Electrum Partners, the culture of startup capital and the re- Tan investment and strategist firm serving the industry. quirements of venture capital firms. There

146 | Marijuana Venture // April 2016 Drip Store Tokenworks

02 Grow are also some rules of thumb that 30-50% of the market in two years POLITICS CLASH venture-seeking cannabis startups from seed capital, unless you have should follow. the cure for cancer. Be reasonable. To start, keep the business plan The last thing you want is high ex- AGAINST BANKING relatively small, advises Chase pectations. If an investor concludes Wiseman, chief financial officer of that they can make a good return on REFORMS Flowhub, a software company that a whittled down market, or 5-10% raised its startup capital very quickly. of market capture in year one, By Alexandra Harrell “In the cannabis industry, the they’ll make big returns if you sur- written business plan shouldn’t pass your original projections.” hile the marijuana industry is flour- be more than 15 pages, including This goes for business valuations, ishing with technological advances the six-plus pages of projections,” as well. It’s an area that entrepre- and increasing acceptance from W Wiseman says. “This will show pro- neurs should carefully consider as mainstream America, it continues to be spective investors you are focused they put together business plans and plagued by the lack of banking services. and you don’t come across as know- investor pitch presentations. This significant hurdle alienates the ing all the answers.” “Ask any investor or fund in the burgeoning industry in an increasingly Scott Jordan, the director of cannabis space and they will tell credit-based society. The image of peo- business development for Dynam- you the most outrageous thing they ple carrying bulging suitcases stuffed ic Alternative Finance, says entre- see from companies raising money with money and a trail of escaped preneurs looking to raise is the valuation,” Wiseman says. capital should be inter- “Want to know a key to raising viewing prospective in- money fast and not getting beaten vestors just as much as up on this issue? Be conservative.” IF YOU HAVE AN venture capitalists are Some experts say valuations across investigating them. the industry are incredibly high, and ACCOUNT WITH THE “Be prepared to an- many of them are unjustified. BANK, YOU HAVE AN swer and ask ques- “We have had direct experience tions,” Jordan says. with valuations of marijuana-relat- ACCOUNT WITH THE “Have they invested in ed companies and have found that cannabis before? Who there is no rhyme or reason to valu- FEDERAL RESERVE else will they consult ations,” says Aaron Herzberg, part- with before making a ner and general counsel of CalCann decision to invest? What Corp, a California medical marijua- “ sort of time frame do they na holding company. “I have found hundred dollar bills fluttering behind have in mind for a return on their it particularly shocking how high them isn’t limited to mafia movies and investment? Can they bring any the valuations are in the penny stock pop-culture representations of bank additional contacts, expertise or companies that often have little to heists. It’s the harsh reality for thou- introductions to help grow the busi- no real revenue. I’ve seen ancillary sands of marijuana entrepreneurs. ness?” businesses at ridiculously high val- Businesses will keep using elaborate The fundraising process is diffi- uations where there is an unproven banking workarounds, such as perfum- cult, and it takes a variety of skill business model.” ing their cash to avoid suspicion and sets to be successful, Jordan says. The structure of financing is also paying bills with money orders, until It’s critical to have good legal rep- a key point to consider. How much legislative changes clear the path for resentation from an attorney or law control and equity should entrepre- traditional banking. firm experienced at raising capital, neurs be willing to sacrifice for nec- reading the fine print and negotiat- essary capital? A few companies have tried and failed ing reasonable terms. Jordan prefers to focus on debt- to become the first credit union specifi- “It generally takes a team and some based strategies. cally for the cannabis industry. financial resources to prepare for a “As long as you repay the loan, “They weren’t approved because some- pitch to a qualified investor,” he adds. there is no ownership impact and no where down the line, the bank or finan- Wiseman advises an overly con- one telling you how to run your busi- cial institute has to be connected to the servative approach to projections. ness,” he says. “This scenario allows Federal Reserve,” lawyer and business He says most sophisticated inves- you to keep total control, retain eq- advisor Lee Epstein, of CannaServe, tors won’t bet on over-inflated mar- uity and keep your peace of mind.” says. “Otherwise they’d have no way of ket projections. Without a doubt, the investment trading cash in. If you have an account “I would even go as far as to cut opportunities in a completely new with the bank, you have an account all market projections on cannabis industry — at least in the legal with the Federal Reserve, because by one-third,” he says. “Do not sense — has created a fervor. There they can’t hold all that money. The cash ever say you are going to capture is clearly still a great deal of interest

148 | Marijuana Venture // April 2016 HAND CRAFTED Regency for the SOPHISTICATED CONSUMER Group, Blue Roots Inc

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DO NOT Bluerootscannabis.com OPERATE A VEHICLE OR MACHINERY UNDER THE INFLUENCE OF THIS DRUG. THERE MAY OUR PRODUCTS HAVE INTOXICATING EFFECTS AND MAY BE HABIT FORMING. BE HEALTH RISKS ASSOCIATED WITH CONSUMPTION OF THESE PRODUCTS. FOR USE ONLYMARIJUANA BY ADULTS CAN IMPAIR TWENTY-ONE CONCENTRATION, AND OLDER. COORDINATION, KEEP OUT OF AND REACH JUDGEMENT. OF CHILDREN. DO NOT OPERATE A VEHICLE OR MACHINERY UNDER THE INFLUENCE OF THIS DRUG. THERE MAY BE HEALTH RISKS ASSOCIATED WITH CONSUMPTION OF THESE PRODUCTS. FOR USE ONLY BY ADULTS TWENTY-ONE AND OLDER. KEEP OUT OF REACH OF CHILDREN. Hemp Industries Association is transferred to the closest Federal Reserve office. The bank then becomes the target, and they don’t want to make themselves targets, because federally, [INVESTORS] WILL MAKE GOOD they’re dealing with an illegal product and that would be committing a crime.” RETURNS IF YOU SURPASS Even in states where marijuana is legal, banks could still be at risk of money YOUR ORIGINAL PROJECTIONS laundering charges by accepting depos- its related to a federally illegal activity. in innovative retail startups. How- the biggest danger of all could be But not everyone sees the positive as- ever, the entire vertical continues to the 2016 presidential election. pects of allowing marijuana money into grow, especially now that marijuana “The risk that the market be- national banks. Roger Morgan, founder companies are finding more ways to comes completely illegal depend- of the Take Back America Campaign “ legally operate across state borders. ing on which presidential candidate and author of “Marijuana: Brain Dam- That said, multi-state strategies, takes the POTUS seat in 2016 also age. Birth Defects. Addiction,” has been particularly for brick-and-mortar or weighs heavily on the consciences fighting against legalization for more farming startups, are more compli- of investment banks in the public than 20 years. cated and pose higher risks to inves- space,” says Jason Wolf, the CEO “At this point it doesn’t matter if it’s tors. of marijuanastocks.com. America or Mexico or what have you, if “Our focus has been on marijua- Most people see this as highly we legalize this business, the marijuana na licenses in Southern California, unlikely at this stage of the game, use will increase dramatically,” Morgan which is the largest marijuana mar- even if a Republican president takes says. ketplace in the world,” Herzberg office. Yet, that chance remains a In his most recent endeavor, he oppos- says, pointing to the long-term play drag on both industry development es legislation that would allow marijuana of real estate investments that are and private financing at a time when money to be accepted by banks. Mor- entitled to dispensary, cultivation or Oregon and Alaska are coming on- gan’s argument smacks of “reefer mad- manufacturing licenses. line and at least a half-dozen states’ ness” by drawing a correlation between While some investors may be residents will consider legalization marijuana use and mass murderers. more at ease with ancillary compa- initiatives in the coming months. nies, “it has been a challenge to find “We’re fighting for the survival of man- investors who understand technolo- Marijuana Venture editor Garrett kind,” he says. gy investing and are also comfort- Rudolph contributed to this story. While steadily becoming the minority, able with the relation to cannabis,” opinions like Morgan’s have fueled the says Jeremy Carr, the CEO of Blaze War on Drugs for decades. Now, an advertising and data collec- According to Harvard University econo- tion platform. mist Jeffery Miron’s 2010 study, mari- The marijuana industry faces ad- juana prohibition costs state and federal ditional challenges. Not governments $17.4 billion every year. only is the industry still federally illegal, but new So what’s the alternative? businesses in general are Eventually, Epstein says, the federal considered far more risky government is going to have to resched- by investment firms. And ule cannabis, or better yet, remove it completely from the Controlled Sub- stances Act schedule. Regarding the medicinal value of marijuana, Epstein says, “How long is the federal government going to be able to deny it?”

150 | Marijuana Venture // April 2016 Cannabis business law advisors for Michigan Cannabis AAA Aircare Counsel

Honu Cannabis Alliance CWCB Expo April 1, 2016 The Nation’s Trusted News Source Today’s Weather: Partly Hazy

Republican presidential candidate Donald Trump doubled down on his support of the War on Drugs recently, proclaiming he’ll reintroduce guerrilla tactics to eradicate legal marijuana.

Photo by Gage Skidmore

those states. Just because they legalized pot, that doesn’t give them the right to over- Trump vows paraquat ride U.S. law. What’s next? Gay people getting married? Equal rights for minorities? Women in the workplace? I just think this state’s rights stuff is getting out of hand, carpet-bombing of pot and my administration would make some big changes.” Presidential candidate says of bombing the shit out of pot, I’d spray the Mr. Trump made it clear that his own shit out of it with paraquat and other her- previous marijuana use was not an issue: “I something really outrageous bicides.” don’t see what my record in the past has to By Ahmed Adoobi The real estate tycoon echoed earlier do with my qualifications to run for presi- comments about illegal immigrants, mari- dent,” he said. “We live in a free country, NEW YORK — Republican presiden- juana and the 50-foot wall he plans to build. and as such I have every right to do as I tial hopeful Donald Trump reiterated his “We know the devil’s lettuce originated please prior to being elected. Consistency opposition to marijuana legalization today, in Mexico, and we also know that the ma- and honesty are not what the American peo- stepping up his prohibitionist rhetoric by jority of Mexicans in the U.S. smuggle and ple want. They want a strong leader who declaring, “All options are open when I be- use marijuana,” he said. knows how to fight pot use, talk tough and come president.” When pressed further about states like piss off Muslims and Mexicans.” When asked about specific programs and Colorado and Washington, where voters Mr. Trump criticized recent editorials control methods, Mr. Trump suggested that have approved the legalization of marijua- that have characterized him as a racist, xe- he would revive the highly controversial na for both medical and recreational use, nophobic multi-millionaire. spraying of marijuana fields with paraquat Mr. Trump angrily denounced the reporter “How dare they suggest I’m one of those that occurred in the 1970s and 1980s. from The New York Chronicle who asked impoverished losers,” Trump stated, before “Look, I’m the only guy who will tackle the question. reminding members of the press that he saw the tough problems and do what needs to “You’re starting to sound like Megyn weed-smoking Arab nationals in New Jer- be done,” he said. “Pot is a problem, and Kelly of Fox News,” he said. “What kind sey cheering the destruction of the World we know it. My approach would be to do of stupid question is that anyway? I’m not Trade Center towers in 2001. the same thing I’d do to ISIS, but instead going to put up with a bunch of dopers in “I saw what I saw.” 154 | Marijuana Venture // April 2016 DK Law

Subscribe and save 50%! WWW.MARIJUANAVENTURE.COM M A R I J U A N A MARIJUANA VOLUME 2 / ISSUE 8 THEVENTURE JOURNAL OF PROFESSIONAL CANNABIS GROWERS AND RETAILERS

CALIFORNIA PLANT HAPPINESS DREAMIN’ World’s largest cannabis Understanding the science behind economy braces for soil and nutrients major changes VENTURE GREENHOUSE • The fastest growing magazine for the legal REVOLUTION PLUS: Current trends show changes coming to marijuana industry cannabis grow facilities • Articles and ads that focus on the business side of AUGUST 2015 $6.99 Interview with Harborside founder the cannabis industry Steve DeAngelo • Well researched articles that outline professional grow strategies and techniques for both indoor and One-Year Digital Subscription (12 issues) outdoor growers • No consumer or culture articles $19.99 • Monthly features on successful marijuana businesses One-Year Print Subscription (12 issues) in states where it is legal or will be in the near future $39.99 • Legal and accounting advice for would-be cannabis entrepreneurs BEST DEAL! One-Year Print AND Digital www.MarijuanaVenture.com | 425.656.3621 $39.99 A LETTER FROM THE EDITOR Pesticide use embarrassing for the cannabis industry Marijuana businesses can’t afford black marks By Garrett Rudolph onth after been a much bigger priority than, say, Mr. Mmonth, we’re Yuk stickers some people have proposed seeing the pesticide for cannabis packaging. problem continue to It’s easy for me to sit at my desk and grow within the can- cast stones at those companies that have nabis industry. To be been caught using banned pesticides. I completely honest, it’s don’t have any skin in the game. embarrassing. But I think the vast majority of the in- As if marijuana businesses and the dustry recognizes the importance of doing legalization movement need more ob- everything right. They know the War on stacles and opponents, the prevalence of Drugs is far from over. They know watch- banned pesticides is a black eye for both ful eyes are waiting for any slip-up, any CoolJarz the industry and the regulators who are way to gain leverage against legalization. establishing and enforcing rules. They know the 2016 presidential election Denver health officials recently issued could potentially bring a new set of rules, their 20th recall of cannabis products, and that their livelihood hangs in the bal- many of which have been related to the ance. But sadly, the prohibitionists are not use of Eagle 20, a systemic fungicide concerned with separating the good actors with myclobutanil as the active ingre- from the bad; they’d just as soon lump ev- dient. Myclobutanil, for those that don’t erybody into the same category. know, produces hydrogen cyanide gas The need for effective pest control when burned. If growers aren’t concerned won’t disappear, but neither will the news about chemicals in their plants, you can headlines. And at this point, we have a lot bet consumers won’t look too kindly on more questions than answers. this fact when they catch wind of it. This is part of the transition from un- State regulators have been maddening- derground black market product to reg- ly slow to follow suit in both Colorado ulated agricultural crop. The old cultiva- and Washington. tion methods people have used in the past In November 2015, Colorado Governor might not work in today’s market. It’s un- John Hickenlooper issued an executive fortunate that growers haven’t had access order declaring pesticide-tainted mari- to the kinds of resources they need to ef- juana to be a public safety risk. At the end fectively control pests without dangerous of February, the state finally put the exec- chemicals, but that’s changing fast. Just utive order to use by recalling cannabis like other aspects of this industry, suc- products from four different operations. cess will come to those who are willing Meanwhile, Washington saw its first to dive deeper than an Internet chat room two cases of illegal pesticide use, but to determine best practices. rather than issuing any sort of recall or Cannabis might be a special plant to taking significant action, the state lev- those who grow it and consume it, but ied a pair of fines. This comes at a time it’s still just a plant, and people have been when the state is attempting to merge the studying horticulture and botany for unregulated medical market with the rec- ages. There are true experts out there, and reational sector. All along, there’s been many are increasingly willing to work this line about “protecting legitimate pa- with the cannabis industry. But most of tients” as a key reason why the two mar- them don’t spend their hours posting in- kets need to operate under the same rules. formation on online forums. Clearly, if there’s something legitimate patients need, it’s the assurance that their GARRETT RUDOLPH pesticide testing seems like it should have EDITOR

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www.marijuanaventure.com | 159 This issue marks Marijuana Venture’s first foray into blind taste testing of cannabis. We will have our team of three experienced bud tasters try two samples each month. The test is done completely blind. There are no visual cues; no information is relayed regarding the origin of the product or any other factors that might influenceBud the testers. We believe blind testingScores is the only way to get a truly honest score. Paid reviews amount to nothing more than promotional fluff. Knowing details about a sample in advance will undoubtedly allow the tester’s own bias to influence the results.

Each of our testers has been asked to rate a bud sample on five factors: smell, taste, texture (or cure), how it smokes and overall appeal. Each category is rated on a scale of 1-100, with 100 being a perfect score. The results of the five categories for each tester are averaged to determine the Bud Score.

We deliberately did not include the effect or the “high” in the rating, becuase we chose to mirror blind tastings in the wine, cigar and spirits businesses. Each Bud Score is determined according to personal appeal and taste, rather than how stoned it made the tester. We realize that some readers may not agree with this method, and there is some subjectivity involved, but we believe it’s the best way to get an objective opinion of the product being reviewed. Each sample was purchased at a Washington state-licensed retail marijuana store.

Brand: Phat Panda Brand: Green Barn Farms Strain: OG Chem Strain: Super Skunk Total THC: 28.6% Total THC: 15.3% Harvest date: Nov. 12, 2015 Harvest date: Sept. 25, 2015 83.7 81.4

Joy Beckerman is a renowned industrial Shelby Talmadge has developed a new Tera Martin is the general manager at hemp and marijuana consultant and appreciation for cannabis ever since she Green Theory, a state-licensed marijuana policy maven who has been involved in helped start Tahoma Growers. Her role retail store in Bellevue, Washington. Her both movements for more than a quarter as CEO of the farm has furthered her personal experience as a breast cancer of a century. She judged her first High passion for researching different strains survivor and passion as an advocate Times Cannabis Cup in Amsterdam in and terpene profiles. When she isn’t busy led to her founding the Pink Gene 1995, and enjoyed her most recent High coordinating marketing activities or “testing Foundation, which helps young women Times Cannabis Cup judging in SoCal product,” Shelby likes to hike with her dog become proactive in the fight against in 2015 before a wide variety of duties Juno. She graduated from the University of breast cancer by educating, providing overwhelmed her cannacalendar. Washington with a degree in history. resources and offering assistance.

160 | Marijuana Venture // April 2016 Security Camera King Across International