National consulting firm NexTec Group has over 25 years of experience offering tailored business management solutions to various industries, and one of their latest bespoke products was designed with the cannabis industry in mind. The CannaBusiness ERP brings expansive organizational software to cultivators throughout the market, supporting businesses in their pursuit of higher profit, lower overhead, and better products for retailers and consumers alike. 

We sat down with NexTec’s Senior Marketing Manager Dan Wu to discuss the importance of cannabis enterprise resource planning (ERP), how NexTec first developed their winning product, and how focusing on finances is just the start when it comes to boosting business.

Leafwire: How was CannaBusiness ERP first developed?

Dan Wu: The CannaBusiness ERP product was developed as a way to consolidate our efforts in the cannabis industry, which we began to pay closer attention to in 2017. At the time, we were having a lot of success with modifying our ERP products to suit specific manufacturing processes, which we’d been developing with the food industry in mind. 

Around the same time, cannabis legalization began to spread, and growers, distributors, and dispensaries were coming together to form conglomerates and MSOs. We realized the industry was lacking a specific solution for enterprise resourcing and planning, and we saw our product as a perfect fit.

LW: Why is that?

DW: Cannabis and food share similarities and challenges. Crops and livestock all undergo growth, harvest, packaging, and distribution, and the FDA regulations they’re required to follow are not unlike cannabis’s rigorous and ever-changing compliance requirements. It’s very similar to cannabis’s seed-to-sale journey. 

Once we realized that our product fit well in the cannabis industry, we began to modify it even further to really suit the market. We included a lot of additional resources that customize the product to deal with those differences in regulations—any hurdles that are specific to cannabis MSOs. 

LW: What benefits does the ERP bring to the industry?

DW: A lot of cannabis companies we work with are still fairly young. The industry is still going through a growth phase, and a lot of companies have just recently been funded. When you’re a business owner in the process of being purchased by private equity—or you’re seeking investors—your finances and transactions need to be totally transparent to potential investors and stakeholders.

Most of the time, if you don’t have some sort of financial tool similar to what we offer, you aren’t able to keep accurate track of every expenditure, every product that’s come in, the cost of your distribution, etc.—and that process alone can require a team of 10-15 people. 

ERPs help you get a better hold of your financial future without having to spend a fortune on additional labor. The tool grants you financial visibility, which also helps you predict your income and forecast expenditures. MSOs have a lot of moving parts throughout the seed-to-sale journey; an ERP tool can automate much of that for a business, making everything more streamlined and transparent for everyone involved. 

LW: So, do all of the ERP’s benefits revolve around financial planning?

DW: No. That’s what the ERP is the backbone for, but there are a lot of different functionalities that can be plugged into the software. Its basis is financial solutions, but you can also include a warehouse management tool, a logistics tool, crop forecasting, etc. The more functionalities you add, the easier it will be for your business to work together and understand what’s going on throughout the supply chain. 

LW: How has your software played a hand in innovating cannabis cultivation?

DW: As a grower, you want your yield to be as efficient as possible. You don’t want a lot of crops to go to waste, and you definitely don’t want your product sitting on shelves for an extended period of time.

Let’s put it this way: the word “planning” is in “ERP” for a reason. Our product allows your organization to be able to map out your yield according to your projected forecast for revenue and sales. We’re giving you a tool to see the future clearly—or, at least responsibly prepare for it. 

LW: What should cultivators keep in mind when considering ERP software?

DW: If you’re big enough to look for an ERP, you should already be looking forward to your future. There are multiple ERP solutions available to the market; when you’re making your decision, look at the longevity of the company and product. You don’t want to go with someone who cobbled together some poor code for a cheap solution. 

You should also look for products that understand your company and aren’t afraid to work with the cannabis industry. Larger ERP solutions might look fantastic on the surface, but the bigger companies might shy away from cannabis. That’s something for MSOs to be cognizant of. Go with companies that have software that was designed for the industry—and to take it a step further, go with companies who are willing to stand behind the industry and update their software to evolve with regulation changes, which are always something to keep in mind. 

LW: What’s on the horizon for CannaBusiness ERP and NexTec?

DW: We typically do a quarterly release for our products, where changes are pushed out to everyone who is on license via cloud. 

We recently added waste management and waste control to the ERP, and we’re looking to add features and functions designed to deal specifically with the packaging and distribution of products.

In the rapidly growing vaping industry, TPK Ceramics has emerged as a leader in innovation. The company was founded in 2019 by Trey Kavooras, who saw a need for safer, healthier vape cartridges. TPK Ceramics’ products are made with medical-grade ceramic, which is free of heavy metals and other harmful substances. The company also performs rigorous third-party testing to ensure the quality and safety of its products.

In this Q&A, Kavooras discusses the benefits of ceramic vape cartridges, the importance of health and safety in the vaping industry, and his thoughts on the FDA’s recent introduction of the Disposable ENDS Enforcement Act.

TPK has grown incredibly quickly and innovated the cannabis industry along the way — you invented ceramics in vapes. What was the motivation to incorporate ceramics into vaporizers? 

Several factors went into ceramic incorporation. First, states were developing more stringent heavy metals testing, and there was a need to develop a cannabis cartridge that contained little to no metal at all in order for operators to pass third-party testing. Second, there was an open market space to create a cleaner, healthier alternative with elevated aesthetics for concentrate consumers.

How can you maintain the pace of growth and innovation while producing some of the highest-quality products on the cannabis market? Do the two factors contribute to each other? 

This is something we stay extremely cognizant of at TPK. We have had opportunities to increase sales at a more rapid rate but have chosen to make sure we grow slowly and methodically. Increasing production is not an issue, but doing it in a way where quality is not jeopardized most definitely is. We want to continue our pace of innovation while maintaining quality. With all new innovations, even extremely subtle changes, we go through rigorous third-party stability testing to ensure we meet the failure requirements that we hold ourselves accountable to.

Do you work with other companies to refine your manufacturing, packaging or distribution processes, such as by using automation? What are your priorities there? 

Absolutely. We firmly believe in having as many “friends” as possible in the space. We don’t know what we don’t know, and if we can gain knowledge by communicating with automated filling companies such as Thompson Duke Industrial or Xylem, other wholesale partners or even other hardware manufacturers, then we will most certainly learn from them as much as possible.

What health and safety concerns do consumers need to know about the cannabis vape hardware they use? How does TPK Ceramics address these issues? 

The bottom line is that nearly all vape hardware products come from the same part of the world. With this sector being such a fast-growing space, there are many people looking to capitalize quickly in any way possible, leading to a lack of integrity. Unfortunately, there are products being made with harmful materials, unclean work environments and many other issues. It’s extremely important to know who is manufacturing the products. We have taken that responsibility on by performing third-party audits, regularly visiting our international production centers and continuing to test our batches to ensure our stringent guidelines are met.

What are your thoughts on the FDA’s recent introduction of the Disposable ENDS Enforcement Act? 

I think the Disposable ENDS Enforcement Act is extremely vague. To classify any and all vape devices as electronic nicotine delivery systems (ENDS) is simply incorrect. There are thousands of Americans who rely on this form of consumption for their medical needs; This act is preventing access and making it more difficult and expensive to do so.

At TPK Ceramics, stringent health and safety standards are central to the mission. To learn more about how TPK Ceramics is revolutionizing the cannabis concentrate space, click here.

The cannabis industry was founded on the plant’s medical benefits: the first states to legalize did so for patients seeking relief from severe illnesses, and although adult-use has gained a lot of respect and understanding since the early days, cannabis’s medical efficacy continues to be studied throughout the globe.

CanaQuest Medical Corp is a clinical-stage life sciences company that focuses on cannabinoids extracted from cannabis and hemp plants, advancing the industry through drug discovery and development of next-generation targeted therapeutics within the body’s endocannabinoid system and specific brain receptors.

Leafwire sat down with CanaQuest Medical Corp’s President and co-founder Paul Ramsay to discuss the company’s foundation, how their research is innovating the medical cannabis industry, and what they’re currently working on to continue advancing the plant’s medicinal progress around the world.

Leafwire: How was CanaQuest first formed?

Paul Ramsay: Canaquest was originally established as an algae company. After working with a professor at the University of Waterloo, we built an algae bioreactor, and that allowed us to learn all about essential fatty acids (omega-3s), which our bodies don’t produce. 

However, these compounds are still necessary for our health, so we typically have to consume essential fatty acids by consuming fish and/or supplements.

Seven years ago, we were asked if we could extract oils from cannabis. 

After digging into some research, we found that most of us have deficiencies in omega-s (DHA and EPA). Because of that, our receptors (omega-3 index) are not working effectively – or, at all. 

So, if people are taking cannabis – or any medication for medicinal purposes – the benefits will either be nominal or there will be no indications at all.  We wanted to help innovate that space.

LW: What exactly were you looking to contribute to medical cannabis and research?

PR: We wanted to enter the cannabis space from a scientific perspective, and we wanted to help people. 

When we first started building our team, Dr. Steven Laviolette was recommended as the number one neuroscientist in Canada. He had a team of 13 scientists and three decades of experience working on cannabinoids, with a focus on anxiety, depression, schizophrenia, PTSD, and addiction.

We gave a presentation to Dr. Laviolette regarding the combination of DHA and EPA with cannabinoid molecules. He embraced our scientific approach, and we signed an agreement as an industry partner to explore the concepts further. 

LW: How do your services innovate the industry?

PR: After partnering with us, Dr. Laviolette and his team made a breakthrough discovery: a new pathway discovery into the brain to address mental health neurological conditions and mental ailments.

In the study, CBD, DHA, and EPA molecules bonded, worked synergistically, and attached to the PPAR receptors, which facilitated a pathway to cross the BBB to the section of the brain that regulates emotions (like anxiety, depression, and PTSD) with amplified effects and efficacy. 

The team also found a notable reduction in inflammation in the brain, which could be highly beneficial for other neurological conditions. So, not only did this help innovate the cannabis industry, but the findings can be useful for the universal world of science.

LW: What sort of services do you provide to your consumers?

PR: Our formulated product, branded as Mentanine, is available for sale via the CanaQuest store in the U.S. 

We also offer an omega-3 product, branded as Omega-3 Index Booster with a high concentration of DHA and EPA, to help people build the effectiveness of their receptors to improve efficacy of their medications.  

Our e-commerce site is also quite educational for anyone looking to learn more about medical cannabis’s effects.

LW:  Who is your consumer?

PR: Our customers are professionals in the mental health field, such as psychiatrists and healthcare practitioners, veterans, and people who have anxiety, depression, PTSD, and addiction.   

LW: What is on the horizon for CanaQuest now?

PR: We recently signed a Master Service Agreement with Neeka Health. The agreement will encompass multiple clinical studies to evaluate the efficacy of Mentanine® on targeted populations struggling with transitional issues.

It’s important to point out that Neeka conducted extensive due diligence on 97 companies in our space, and CanaQuest was the only company chosen. 

Dr. Hunter Land, CSO of Neeka, who co-led the clinical development of Epidiolex® (FDA approved prescription CBD) for GW Pharma will lead all studies for Neeka and CanaQuest. 

We also plan to continue building our team to educate and help people in need, and ultimately improve their quality of life. 

The vape industry is booming, but nicotine vapes face increasing regulation and scrutiny. Flavored nicotine products are being pulled from shelves and losing favor with consumers. Endexx Corporation, a rapidly growing company making strides in the nutraceutical technology industry, is working to fill that void with non-addictive, plant-based vapes through its recent acquisition of Hyla. 

Hyla is a first-of-its-kind plant-based, non-addictive, and nicotine-free vaporizer using natural ingredients like guarana and L-Dopa. These revolutionary products are poised to offset nicotine-based products as more consumers search for alternatives. 

Today, Todd Davis, Founder, CEO and Chairman at Endexx, talks with us about Hyla’s astronomical success, the challenges and opportunities of this industry, and the future for vape products as a whole.  

What inspired Endexx to acquire Hyla, and how do you see this acquisition helping your company achieve its goals?

The power of plants is built into all of Endexx’s consumer products. Hyla’s unique approach to the vape market harnesses that power, so it was a natural fit.

What made Hyla a compelling investment opportunity, and how did you evaluate its potential in the market? 

Mounting pressure on nicotine-based vape companies has created a void of products that fit consumer demand. Shelf space is at a premium in the market; we have the products to fill that space.

What investment does Endexx plan to make in Hyla’s growth, and how will you measure success in this product line? 

The primary target is introducing Hyla’s innovative products to international and domestic markets. Our overarching mission is to become the dominant player in plant-based vape products.

What are the key challenges you anticipate in growing Hyla, and how do you plan to address them? 

There is a stigma against “flavored vape products” in the market. Ingredients like nicotine should be the target, but the only way regulators can push back on nicotine products is to target flavors. Hyla offers the absolute best alternative in the market to nicotine-based products.

How do you see Hyla contributing to Endexx’s overall growth strategy, and what impact do you anticipate it having on the company’s financials?

The impact has been immediate. In the first two quarters since we acquired Hyla, Hyla’s international revenues have far surpassed any previous year in gross sales of Endexx. International opportunities are opening tremendous cross-market channels as well.

What are Endexx’s plans for international expansion, and how does Hyla fit into this strategy? 

Hyla has established distribution in 13 countries and counting. These markets add tremendous potential for expansion in all of our consumer products.

What message do you want to communicate to investors and customers about Endexx and Hyla? 

Consolidating revenues from Hyla into Endexx exponentially expands top-line revenues by several hundred percentage points. These extraordinary numbers have put Endexx on a three-year projection in excess of 50 million in annual revenues.

How does Hyla differentiate itself from other nicotine-free disposable vape products?

Our high-quality ingredients and unique formulations set Hyla apart from the competition and bring new benefits and experiences to the consumer. Plant-based vapes deliver our natural, non-addictive ingredients in an effective manner.

What role do L-Dopa and Guarana play in Hyla’s formulation, and how do they contribute to the product’s effectiveness? 

Guarana and L-Dopa have unique qualities that bring myriad benefits to the user without the addictive nature of nicotine. Both ingredients are commonly said to enhance focus, aid in relaxation, boost energy, and encourage calmness.

What is your vision for the future of the vaping market, and how do you see Hyla contributing? 

Clinical tests of plant-derived molecules in the clinical setting indicate that vaping is a superior delivery system for low-dose and micro-serving portions of these powerful plant derivatives. A little goes a long way with plant power.

Who uses Hyla and who should use Hyla? What kinds of customers have you seen attracted to these products?

Our early customers primarily enjoy vaping but seek a different experience than tobacco or nicotine-based products. Plant-based alternatives offer a potentially healthier option for people who enjoy vaping.

What kind of feedback have you received from consumers and retailers about Hyla, and how have you used this feedback to improve the product?

Quoting user feedback can be viewed as making claims, so we must be prudent in this case. Many consumers say they experience a sense of calm and a reduction in stress. Some have indicated that there is a significant reduction in the need for nicotine after using Hyla products.

What has been the response to Hyla from retailers and distributors, and how do you plan to continue growing your distribution channels?

Our retailers are reporting rapid sell-through as the customers feel they are getting extreme value with 4500 puffs per device. Customers also love the form factor, flavor profiles, and ease of use.

How do you see the regulatory environment for CBD and nicotine-free vaping products evolving, and what impact will this have on Endexx’s business? 

HYLA’s success is adding exponential growth and increasing revenue for Endexx. The regulatory environment will continue to be challenging as policymakers try to regulate flavor instead of addictive ingredients like nicotine. Our products are non-addictive, and the flavors are derived from plant-based natural sources, separating them from flavored nicotine vapes.

What kind of consumer education efforts will you be undertaking to promote Hyla and its benefits to the market? 

Endexx will separate education from sales to maintain compliance with current regulations. Educating consumers on the potential benefits of individual ingredients will provide a stronger basis for informed decision-making for customers.

How does Endexx ensure the quality and safety of its products — including Hyla — regarding concerns about vape product safety? 

HYLA manufactures its proprietary formulations in American laboratories. Each batch is tested for purity and safety in accordance with current regulatory and compliance standards in the USA.

How do you manage risk and uncertainty in the highly regulated and constantly evolving CBD and vaping markets? 

Compliance and engagement with regulators help keep us at the forefront of regulation. Preparing and ensuring continuing compliance are the investments we make in our evolving markets.

How does Endexx ensure that its products, including Hyla, comply with applicable regulations and laws? 

Endexx constantly monitors rules and regulations in the industry. We work with experienced legal and compliance partners before producing products for the consumer market.

How do you balance the need for innovation and growth with maintaining quality and safety standards for your products? 

Since we launched our consumer product lines, science and compliance have been the cornerstones of Endexx’s development and production. Innovation comes from science, and quality comes through compliance with industry standards across established industry protocols.

What is your approach to product innovation, and how do you plan to continue improving Hyla? 

The vaping device industry offerings have limited value propositions to the consumer. Hyla has designed high-output, long-lasting products that offer a price point and formulation that consumers can support and rebuy over time, creating strong brand loyalty for HYLA.

What lessons have you learned from your experience in the CBD space, and how do you apply them to approaching Hyla? 

Consumers are getting more educated and more interested in high-quality products. CBD Unlimited built and sold the highest quality products on the market. Hyla reflects that exact same model: producing the highest quality products at affordable prices to meet the needs of our consumers.

How do you prioritize and balance the demands of your different product lines?

Not all products can survive in the market. We focus on the products adopted quickly and generate high rebuy rates. In the first six to 12 months, the consumer clearly indicates to us which products they like the most. Once we have that information, business decisions are much easier to make for long-term success.

What kind of partnerships or collaborations do you see as crucial for Endexx’s growth in the nicotine-free vaping and CBD spaces? 

Hyla is targeting the largest and most efficient distributors in each country they pursue. There is a huge gap in the tobacco and vape industry now that nicotine products are being pulled from shelves. Endexx, through Hyla, is here to fill that void and provide an entirely new product that fills the needs of the current market and offers a “Better Product for a Better You.”

Leafwire

We’re here with Karen Lustman, the founder and CEO of Senior-High. Karen is a passionate advocate, patient, researcher and speaker focusing on cannabis and its positive affect on active adults and seniors suffering from chronic pain and all other ailments concerning those of us of a certain age. Senior-High was created by Karen to gather factual information about cannabis products and how they can help active adults alleviate specific health issues using safe, effective medicinal alternatives to expensive and potentially dangerous pharmaceuticals. Armed with a laptop, an AARP membership, and a medical marijuana card, Karen and her team are determined to gather and share the latest developments and research from experts and Active Adults who have found relief by using cannabis. Karen, welcome.

So Karen, why the cannabis industry?

Karen

Almost 10 years ago. I missed a single step leading to the pool at a hotel where my husband and I were staying. I fell hard and flat on my face, knees, elbows and feet. My knees were badly swollen and excruciating painful.

I saw many doctors, each of them prescribing x-rays, pain pills, and therapy. It got to the point where I was taking 8 to 10 pills a day. My husband asked if the pills helped. My reply was “I don’t know, but I’m afraid to not take them.” I tried acupuncture, pain management, and even had a spinal cord stimulator implanted to try to mask the pain but nothing worked. I had to use a wheelchair and walker to get around.

We went to visit my daughter. We were discussing my pain and my son-in-law said he had something in the garage that would help. He showed me how to use his bong. I was 60 years old and had never smoked pot! I inhaled way too much but it was the most life changing experience I had ever encountered. Within a minute my pain was gone. But I was completely stoned. Even in that state, all I could think about was how I could use cannabis to escape the horrible neurological pain I was feeling and function during my workday. I couldn’t live my life high! Was there a way to reduce or eliminate the pain without getting stoned? That set off my journey to wellness.

Leafwire

That’s exciting. It may have been a happy accident but this event led you to create a vision for Senior-High.

Karen

Actually “Senior-High” found me. I immediately started researching cannabis brands, clinicians, dispensaries, manufacturing companies and everyone else with practical knowledge of cannabis. I started following thought leaders regarding any research on medicinal cannabis. I took several certification programs just to educate myself. But still, the information I needed was not available. There was no protocol that would tell me what I needed.

And I found a neurologist who diagnosed my condition, which is called an ataxia. It is not a condition that can be cured by traditional medical science. That was troubling but served to accelerate my research into the application of cannabis for its medicinal value.

So I started learning about the brands, ratios, how to consume and I started sharing that information. I blogged and called my experiments “human trials,” me being the human. I purchased as much as much as I could afford from dispensaries and tried every product, still not understanding how to use THC to relive pain without the psychoactive effects. For the most part, I learned what NOT to do, and shared my mistakes too. But I did learn how to use cannabis to help relieve my pain safely and effectively without getting stoned. It was a revelation!

And the more I learned, I found I was able to create a regimen of tinctures and other cannabis products that helped me cope with my ataxia. Soon I was able to get around much easier. I no longer needed a wheelchair or even a cane. I felt more capable. I felt younger. For the most part, I was able to live my life pain-free. And I still am.

I lived in a senior community in southern California and slowly the word spread that I was using cannabis for my pain and was making some progress. My neighbors started knocking on my door asking me what they should use for arthritis or sleeplessness. I became known as the cannabis lady. They still knock on my door, and I’m still known as the cannabis lady!

Leafwire

Obviously with Senior-High, you’ve created a platform to educate people that’s recognized by the senior community.

Karen

My husband and I realized early on that the color of our hair and my wrinkles allowed seniors to feel safe when we shared our understanding of how this plant had helped me manage an “orphan” disease and my husband’s arthritis from playing guitar for years. We were asked to speak to groups of friends and neighbors. We began Senior-High to provide organization and a formal structure for our efforts.

The numbers of seniors using cannabis has continued to grow at a phenomenal pace. And so has the number of seniors being admitted to ERs due to “greening out.” So we teach them about the importance of the ECS, about cannabinoids, onset times, delivery systems, and dosing. Too often our followers have ingested too much THC or have heard horror stories about their friends who have. Usually the culprit is gummies. They look so innocent, like their grandkid’s candy! But they can be chocked full of THC and can take up to two hours to have an effect. So, they take another one since they think the first one didn’t work. Then they’re off to the races!

THC is really misunderstood. We break it down so that our audience can get the desired affect without getting too high. From my own experience, I need THC to stop the pain but balance it with CBD. I vape and I don’t need the high amounts of THC normally within the products sold in dispensaries. Most seniors don’t.

We give them the education necessary to purchase and use what they need, not just what they are being told they should try.

Leafwire

You mentioned arthritis as one ailment seniors seek relief for. And that’s a good opportunity since topicals are easy to use, effective, and many products don’t even use THC. So there’s no reason to be concerned about getting high, if they’re concerned about that.

Karen

Right. My husband has arthritis in his shoulder and he’s our guinea pig for testing creams and balms that can help relieve the pain. He’s written a number of reviews that appear on our website. We also believe that a combination of the right tinctures combined with a good topical can help relieve the problem from inside and out. Pain can also be a component of sleeplessness, which is the number-one ailment we hear from our clients.

Leafwire

What type of events have you held, and what kind of events do you plan to host?

Karen

We’ve held scores of events during the past five years. When COVID reared its ugly head and our community’s meeting rooms were shut down, we held seminars in our living room, keeping the audiences small and practicing social distancing and masking. As word spread, the volume of people wanting to attend grew and we couldn’t fit them in our living room. That’s when we started getting invited to many community centers, HOA clubhouses and senior centers.  

One of the most fun events we ever did was to take 30 seniors in limousines to a dispensary lounge so that they could experience the environment and perhaps enjoy products they’d heard about but never tried. We had a blast and spent quite a lot of time educating the gang on pre-rolls, gummies, vape pens, cannabis-infused drinks, and flower. We invited brand reps from a few manufacturers to conduct short presentations about their products. Our group started shopping and my husband said, “Look at them, Karen They’re like kids in a candy store.” And, you know, they were! It was an awakening! When the seniors left in the limousines, they all wanted to know what’s next with Senior-High!

It has just been such a wonderful passion project for me. I feel that I’m giving back to the community. I am helping people of our age really enjoy their senior years and it has just been great.

But as Leafwire members know, it’s a challenge infrastructure wise. We’re not even a grower or a dispensary, but we face the same obstacles as they do in terms of working with financial institutions, doing advertising, and getting affordable coverage from insurance companies.

The plus side is that there is a need to talk to seniors about these products and that pushes us to continue doing what we’re doing. In addition to offering a select number of products on our website, www.senior-high.com, we provide tons of useful information for the 55+ crowd. We offer one-on-one consultations either in person, via Zoom meetings or on the phone so we can learn about an individual’s issues, what they have done for treatment, what their goals are, and hopefully set them up on a regimen that will improve their quality of life. And we’ve earned the trust of a local pain management clinic who refers patients to us that they believe can benefit from medical cannabis.

Leafwire

Do you collaborate with some of these brands too that maybe are focused around products that can cater to seniors?

Karen

The senior market is the fastest growing segment of the cannabis-buying market, so it only makes sense to reach out to them through Senior-High. We are funded by the sale of our products. The education is free. So we are consistently seeking partners interested in collaborating.

The products we sell are all highly recommended. Our top-selling products are manufactured by a leading doctor, scientist and thought leader within the industry. I continue my own education through classwork that follows the science.

Leafwire
According to NORML, the percentage of all US adults ages 65 and older who report cannabis use in 2020 increased significantly in recent years to 4.2 percent. They’re already consuming. So why is a platform like Senior-High important?

Karen

Well, like I said, I think we’re offering information so they can determine the appropriate products for their individual conditions, from occasional sleeplessness to pain and inflammation, to mental worry and stress. We’re enabling this enormous market segment to understand retail labels, delivery systems, ratios, terpenes, the entourage effect, and other critical information seniors can’t find elsewhere.

We took it upon ourselves to learn from the experts and pass along that knowledge to our audience. That is our mission – to keep seniors safe and help improve the quality of their lives. We don’t want them to buy products that may not be right for them. We counsel them how to talk to their doctors before they use cannabis, how to use tinctures, balms and capsules and then how to buy products at a dispensary that will work for them.

Leafwire

Any last words?

Karen

Well, first of all, thank you so much for Leafwire’s interest in Senior-High. As more Baby Boomers become seniors, our audience continues to build, both locally and in the growing number of states where medical cannabis has become legal. We hope your audience will come to www.senior-high.com and contact us to develop mutually beneficial relationships. We welcome suggestions to keep improving our brand and our means of helping educate seniors – and their families – to the wonderful medicinal and recreational benefits of cannabis.

In the first installment of Leafwire’s exclusive ‘Ask a Dispensary Owner’ Series, we spoke with Ry Russell, owner of Budz Emporium in Medway, Maine – one of the most northern cities in the entire continental states.

Here are some great insights on the importance of pricing, transparency and truly listening to your customers.

What do you wish you had known before starting the process of starting your dispensary?

There is so much I wish I had known before I started opening the dispensary. I think the most critical is truly understanding your tax obligation. We learn a lot about 280e but until you actually process your taxes it’s hard to truly understand the impact. Taxes eat up roughly 35% of total revenue and you need to prepare for that. Remaining profitable while meeting your tax obligations is ultimately the name of the game.

What surprised me the most about opening a dispensary?

What had surprised me the most about opening a dispensary is the fine attention to detail. I came into this project with an extensive retail background and I felt confident and prepared for this undertaking, however, it is the hardest challenge I have taken on. Balancing vendors and prices with the value your customer expects is no easy task. Creating the ultimate in store experience that brings customers back over and over requires listening and adapting to everything that comes your way. A constant pivot is needed in this industry. 

How have you had to adapt the dispensary due to customer feedback?

The thing I am most proud of when talking about our dispensary is our commitment to customers. When we opened the store we were following the market. Our prices were too high and our selection was too small. We listened to our customers and we fight like hell for the best value and now budz emporium is the first store in the state of maine with a price match guarantee and the widest selection of top shelf flower from across the state. People now drive hours to visit us because we have the best value in the state by far. We wouldn’t have pulled this off if we didn’t have a deep and passionate relationship with our customers. 

What sort of payment challenges have you dealt with and what is working for you now?

Payment solutions is always a challenge. We started out with ATMs and then shortly after we opened the banks pulled them out. We went to a debit pay system and that network was taken offline a month later. Now we have a pin debit solution but we still do not rest easy. We always make sure we have a backup plan in the works in case a system provider goes offline. It is quite a headache and something we must be always paying attention to. 

Have you found any value in using loyalty programs or frequent shopper programs in order to drive loyalty?

Personally, I don’t use loyalty programs. We guarantee the best price in the state. We are often asked if we offer a loyalty program and we usually joke and say “we could, but then we would have to raise prices.” The customer usually understands and appreciates that we are sacrificing huge margins in effort to provide a fair price each and every single day. Honestly, I believe this fair and honest pricing strategy is the main reason we are doing so well. 

What’s some creative marketing efforts that you’ve tried out to generate business?

Marketing for an adult use business is challenging. The state has many restrictions that make it near impossible to communicate with customers outside of your store. However, we have found clever and crafty ways to advertise on the radio while remaining compliant. The radio has been our most significant source of customer acquisition. We do some newspaper advertising as well but the radio is where we see the biggest impact currently. 

Was hiring and managing a staff a bigger challenge than you expected?

Staffing is always a challenge, for any business. However, I think dispensaries have to be extra careful. We don’t have any job applications and I don’t post jobs online anywhere. I go about my day in the community and if I see someone providing extraordinary service I do my best to get to know them and invite them to join our team. I believe the best way to find good people is to observe people doing what they are supposed to be doing out in the world and then rewarding good behaviors. if people are doing their best work when they expect no one is paying attention they will do excellent work for a manager that cares about them! I am very proud of the team we have built at budz emporium! 

Any predictions for what the industry should expect in 2023?

I think mature markets are going to see the price of products continue to drop and the industry is going to have to get extremely invested in their communities in order to stay in business. The more things change the more they stay the same and at the end of the day the community needs to remain the center of attention.

It’s hard enough to run a growing business in a new industry with constantly changing regulations. And then your country is attacked by an invading army.

This is the exact situation that Stuart McKenzie, CEO of Reakiro, a hemp and cbd business, faced when Russia invaded Ukraine.  Many of their employees were able to leave Ukraine and move to Poland where Reakiro had another facility, however, many of their employees stayed in the Ukraine. Reakiro committed to help their employees to find safer places to live and work, but the invasion continues and Reakrio continues to find ways to thrive and serve their growing customer base.

How has the war in Ukraine affected Reakiro? What decisions did you have to make as CEO?

When the war first began, our priority as a company was finding out who wanted to leave Ukraine, who could leave Ukraine, who was going to stay in the country, and how we could support them. Reakiro has a facility in Poland which many of us relocated to as our new home when we had to leave Ukraine

To help those who were staying in Ukraine we helped members of the team move out of apartment blocks and into houses, and out of the city centres and into more rural areas where risk and danger has been considerably lower.

In many ways, the last few years of adapting to the pandemic had prepared us well for working together when we were physically apart, but saying that, one of the bittersweet silver linings from this year is that many of us have been together in Poland living and working close to one another, which has made us that much stronger as a team.

As CEO I knew that we had to find a way to continue as a business through the war. I know that’s not what many people would think about if they found themselves in a warzone, but the reality is we need to make sure the business is solid so that we can continue to support all of our employees through this turbulent and uncertain time.

What challenges has the Reakiro team met this year?

One of the most difficult things we’re dealing with is that no matter what we’re doing these days, we’re always thinking about the people who are still in Ukraine. While many of us managed to leave, there are many who had to stay. 

As I mentioned before, a big group of Reakiro employees relocated to our facility in Poland at the beginning of the war, and as a team we repurposed part of the facility in order to receive and distribute donations such as clothes, food, and medicine, which were coming in from all over Europe to go to those still in Ukraine and to those who had become refugees in Poland. Our staff have been dedicating voluntary hours throughout the day and night to help sort and distribute these items.

In October we were honoured at the World CBD Awards in Barcelona for our charitable work this year, which was a lovely moment for the team to be recognised for everything that they’ve been doing. Now we need to continue to emphasise that the war is ongoing and people in Ukraine need support from those around the world even more than they did at the beginning. We really hope the global attention doesn’t wane as time goes on.

What does the future look like for Reakiro and the CBD industry?

The future of the CBD industry is very, very positive. There’s new legislation coming which will allow new innovation, greater awareness of the capabilities of CBD, and ultimately for the industry to grow. It’s currently near impossible to innovate new products because of the restrictive Novel Food regulations. But as this changes the industry will be receiving more investment from other sectors, allowing reach and awareness to grow hand-in-hand. The momentum of the CBD industry continues to grow and grow as the products continue to bring positive change to people’s lives.

As for the future of Reakiro specifically, we’re looking to move into the medical cannabis space and we’ve partnered with a company in Malta to produce medical grade cannabis to distribute around the world . Medical cannabis products contain CBD and a high THC level and can only be accessed with a prescription. 

The doses of THC in question would be low enough not to make someone ‘high’ but medical cannabis is something that could help so many people experiencing many different conditions including pain management, neurological conditions such as Parkinson’s and Alzheimer’s, and also anxiety and panic attacks. We’re working towards closing the distance between doctors and medical cannabis, to help health professionals understand just how instrumental these natural products could be to helping their patients.

What are the challenges that the industry as a whole faces?

The biggest challenge we’ve always faced as an industry is how people perceive the hemp plant. Hemp is one of the world’s most resourceful plants, it can be used to make houses, batteries, clothes, and superfoods. This was recognised for thousands of years while people used hemp for a variety of reasons, but then when its growth was prohibited for 100 years all of that knowledge was erased. Now it’s our job as an industry to erase the image of a stoner with a joint and replace it with the knowledge of a plant that offers so many resourceful natural solutions. We need to do this in order for all our work in other areas, like product development, to have the true impact it deserves.

What drives and inspires you to continue on this mission every day?

The sense of being on a mission to change the world for future generations is my biggest motivator, and I think this would apply for many people in the industry. This isn’t a sector that people go into to get rich quick; it’s not a sprint, it’s a marathon. We’re thinking about generations and generations ahead, our children and grandchildren, and hoping that the work we put in now is going to make a difference.

I know that sounds like quite a lofty ambition, but we can already see things changing now. In the relatively short time the CBD industry has been truly alive it has shifted firmly into the mainstream and we can see that people’s attitudes, and people themselves, are changing. Not a week goes by that I don’t get a message from someone whose quality of life has dramatically improved since using CBD, whether it’s helping with sleep quality or managing pain and mobility so that they can now do things like go on bike rides with their children with ease; nothing motivates me more than this.

Andy Singh, CEO of Nuvata, Discusses the Cannabis Vape Landscape and the Hurdles to Future-Proofing Your Dispensary Operations

How have the cannabis and nicotine vape markets looked similar or dissimilar over the last decade?

Before technology was where it is today, consumers had to buy e-liquids, juice, and mods in the nicotine market. This was similar to initial dry-herb vapes of the time, which were stationary, less portable, and not super well-equipped. 

In the nicotine industry, we saw technology advance to a place where Juul could be the leader. They came out with portable hardware and interchangeable pods, which were sold separately, revolutionizing the industry. They became a hot commodity and did exceptionally well. Altria, a tobacco giant, invested billions of dollars in them.

While Juul was positioned as the leader, many brands started coming out with disposables. Puff Bar, for instance, blew up because they focused on a few simple concepts: 

• Phenomenal flavors
• Ease of use
• Single-use disposables
• Compact and convenient form factor

Many different players recognized this is where the industry is headed, and many new nicotine brands have originated from that concept. 

Fast-forward a few years. Before getting banned in the United States, Juul was losing their market share because disposables were capturing it, along with other regulatory issues they were facing. Everyone leaned into disposables because of their convenience, flavors, and form factors. 

Simultaneously, cartridges were the only available product in the cannabis industry. A few years ago, there weren’t many disposable cannabis vapes; The focus was primarily on cartridges. When Nuvata launched in 2019, we predicted this trend would change. We didn’t know when, but we knew it would. We were ahead of the game. What we’re seeing today is a testament to this shift.

Now, we’re seeing cannabis disposables trending upwards and becoming more popular. We’ll see this trend remain consistent over the years, and I wouldn’t be surprised if demand for disposables took over cartridges in the future. 

It’s interesting to recognize the parallel between the cannabis and nicotine industries. Traditionally, you have two components: the hardware and pod for nicotine, and the cartridge and battery for cannabis. Now you can package those technologies as single-use and price them similarly.

What has your personal experience in the cannabis wellness space suggested about the importance of mindfulness in the consumer experience?

My personal experiences in the cannabis and wellness spaces inspired me to start Nuvata and define the principles of what we stand for. Personally, when I consume cannabis, I experience this sense of transcendence. My endocannabinoid system is stimulated, and certain parts of the brain are unlocked that may not usually be active without cannabis. 

When you recognize the changes that are taking place mentally and physically when you’re consuming cannabis, you can harness these effects to enhance whatever you’re doing. Cannabis can help you “be a better version of yourself” — be more reflective, slow down, and look at things differently. We’re so self-absorbed that we often forget to be in the moment and instead always live in our thoughts. Cannabis can help alleviate that and bring us a sense of presence. Nuvata’s curated product line is linked to various lifestyles and helps to bring consumers the mindfulness of cannabis in a convenient package. 

Are there any consumer purchase trends pointing to success with certain vape features, such as controlled dosage, disposability or other design elements?

Headset has shown a 15% increase in demand for cannabis disposables in 2021. That should remain consistent in 2022. 

I imagine that as technology advances, you could have a controlled temperature feature on cannabis disposables based on the terpene profile and the ideal temperatures for each of those terpenes. As technology advances, there will likely be a combination of controlled dosage and disposability. A convenient form factor combined with advanced disposable vape technology to allow for the perfect smooth dosed draw will drive the vape market.

Tell me about the hardest lesson you learned from the unpredictability of the cannabis market.

For me, the hardest lesson was recognizing where the limiting factors are in the supply chain. 

If you look at California specifically, the lack of retailers is the bottleneck of the industry. There are not enough retailers to service California, but there are many distributors, cultivators, and manufacturers. Creating that imbalance causes saturation on one end of the market and limitations on the other. Already, you’re positioning the industry for failure by enabling this disconnect. At any given time, regulations can change, hindering businesses and how they operate. You can never anticipate how the industry will shape itself, but you can look at where it stands at the time and position yourself to mitigate as much risk as possible.

Other markets, like New Jersey, limit the number of cultivators but not the number of retailers. We can already predict commodity prices will be high. Product pricing will also be relatively high because there will be a lack of supply. The overabundance of retailers will create a bottleneck because they will compete with each other and fight to survive. The state could always elect to stop issuing retail licenses when the market becomes too oversaturated, or they may allow an influx of cultivator licenses to come online. It’s essential to think about the entire landscape and the economic consequences of a shift like this. The cannabis industry is so dynamic and ever-evolving. Regardless of the state or municipality you operate in, success requires adaptability, analyzing the facts in the moment, and bracing yourself to mitigate as much risk as possible.

We can look at Oklahoma for one more example. There was no cap on licenses in the state, so there are several thousands of cultivators and manufacturers and retailers. You had to realize early on that you have to achieve a certain level of scale to operate with longevity and remain competitive, which is very capital-intensive. Given the regulatory framework, commodity prices will inevitably plunge down, which we are seeing today. You must operate somewhat on an industrial scale to sustain the lower margins required for success, especially if you are a cultivator or manufacturer. If you recognized this supply chain pinch early on, you might have been able to steer your business in the right direction. 

The last two years have been a rollercoaster. How do dispensary owners and operators stay ahead of unpredictable sales cycles?

Dispensary owners have to recognize that the cannabis industry is very dynamic. There could always be some regulatory change that results in reconfiguring how they operate their business. Dispensary operators must be adaptable in this type of environment. 

Many dispensary owners operate on net terms, which is essentially a function of a debt instrument. If a shop operates like that and you experience an economic downturn — be it a  massive sales decline or inflation — it puts them in a bad position and a worse bind. Dispensary owners need to do a few things to stay profitable:

1. Recognize how to operate sustainably
2. Limit the level of debt they operate under
3. Keep the overhead adaptable by syncing overhead with their revenue performance 
4. Budget out 280E implications in real time while operating their business

What’s the biggest hurdle to matching client health and wellness needs to cannabis products in the dispensary setting?

The biggest hurdle is the information flow from brands to customers, which is essentially in the hands of the budtender. That’s why brand education is hugely critical for dispensaries. It doesn’t help that budtenders have a pretty high turnover rate. The budtender staff is constantly rotating because it’s an entry-level position, which makes it even more challenging to keep brand education fresh and consistent. 

Brands must conduct budtender education consistently, either quarterly or semi-annually. Even so, when budtenders educate customers on multiple brands and products, their memorization capacity is limited. Budtenders must keep all this information fresh to best guide customers based on their needs and what they are looking for, which is challenging. 

It would be beneficial if there were a more direct, consistent connection between the customers and the brands, like some sort of in-store pod, catalog, kiosk, or virtual library with brand and product information. Few dispensaries are doing that. Most rely on the budtenders to support and guide the customers, which is a human limitation. 

How does a dispensary figure out how many vape products to carry and identify which are best for their target market?

Many dispensaries position their brand partners in distress by carrying too many vape brands and similar products. Stores are already limited by the number of customers they see, and creating a saturated sales menu makes it very difficult for brands to stand out and be successful.

Dispensaries must be intentional and strategic about their brands, particularly regarding vapes, as products are very similar. If you’re carrying seven or eight cartridge brands with similar potencies and strains, you’re essentially pitting brands against each other. It then comes down to whichever brand can spend more marketing dollars to acquire customers and be successful. That is often not sustainable for the brands themselves. 

Accordingly, dispensaries need to be strategic about the number of brands they carry in each category and how they differentiate between the products. That’s why Nuvata picked the disposable category and why we focused on effect-based flavors; no one was doing this. We were intentional in that sense to differentiate ourselves. We also differentiated ourselves to customers by offering a more guided and tailored experience to make it easier for them to find what they’re looking for with an emphasis on terpene education. 

In a pioneering market like Colorado, what does it take for a cannabis business to become a fixture in the marketplace while growing year after year?

Established in 2010, Native Roots Cannabis Co. is one of Colorado’s most successful vertically integrated medical and adult-use cannabis operators. An independently held dispensary chain, its 20 locations serve thousands of customers every day and has the state’s largest number of registered patient members. Over the years, Native Roots has won national recognition for sustainable business practices, retail design, high-quality products and employment practices. Native Roots creates nearly 50 products, including concentrates, vapes, flower, pre-rolls, shorties, infused blunts and mints; and has three brands: Revel, Spectra and Mr. Moxey’s. 

In this exclusive Leafwire Q&A with Director of Cultivation Operations Jason MacDonald, we discuss how Native Roots stays innovative and competitive through its evolving approach to cultivation, post-harvest processing, research and development, and product effects testing.

Leafwire: What is your background? What led you to growing cannabis?

Jason MacDonald: Believe it or not, I’ve been a grower all my life. It’s in my blood – as far back as I know, there are farmers in my family. I got a degree in biochemistry from the University of Colorado and was on the path to go to medical school. But in 2009, the day before I received my MCAT scores, I got my first job consulting in cannabis. They paid me such a ridiculous amount for something I saw as fairly simple, I decided to switch paths. 

I grew medical cannabis as a caregiver and consulted for companies and individuals looking to grow at home. In 2015, I was hired on the spot by Native Roots to build the irrigation system at the Mothership, our main cultivation facility. Over the next year, I built a nutrient line with the head of sciences, developed strains in the tissue culture program, facilitated product as a bay manager, and landed in the head grower position. Now I am the Director of Cultivation Operations, overseeing all cultivation and post-harvest operations at both of our cultivation facilities. Native Roots has the largest indoor grow operation in Colorado with 75,000 plants when combining both facilities. At the time it was built, it was the largest in the U.S., which was humbling and very exciting to be a part of.

LW: What sets Native Roots flower apart from others in the market?

JM: The brain trust we have at Native Roots includes a lot of really talented individuals operating in the cultivation and post-harvest spaces, and that expertise allows us to stand out. Our teams are constantly researching, growing and testing new strains and techniques. We operate in an atmosphere of trust and cooperation, and the team likes to swing big for the bleachers with innovative experimentation and new products. I am a firm believer in building a team full of individuals that are smarter and more talented than I am in their areas of expertise – this is how we grow and stay competitive as an organization. 

LW: Native Roots recently launched its Gold, Onyx and Green cannabis labels – can you tell us the differences between each? 

JM: For our relaunched labels, we hand-picked and grew each strain with strain-specific cultivation methods to maximize potency, flavor and quality. All strains undergo our proprietary curing process that eliminates rapid terpene evaporation and discoloration, maximizing cannabinoid content. Before being selected, each strain is tested extensively by our team. The final strains selected fall into three flower tiers: Gold, Onyx and Green. Green Label uses all of these growing and post-harvest upgrades to offer higher quality flower at an economical price. Gold and Onyx label strains are hung dry and hand-trimmed to preserve trichomes where high concentrations of psychoactive compounds reside, maintaining beauty and potency. After the curing process, Gold and Onyx strains are hand packed to preserve trichomes. Our premium Gold Label strains are grown from seed and offer a minimum of 24% THC potency. Gold Label flower is packaged in glass drams that block UV rays and are non-porous, smell-proof and airtight, preserving the bud. All strains are available at our 20 locations across Colorado.

LW: Do you have any favorite strains? Why?

JM: I really like Queen Mother Goji. I don’t know what it is about that flower but it gets me ridiculously high. It’s nice to shut down every now and then. We just got the GMO strain, and it’s really tasty, it offers a smooth high that I’ve really enjoyed.

LW: How do you identify the strains you’re going to grow? How is your team involved?

JM: Native Roots has research and development departments at both grow facilities. At one facility, we focus on popping seeds and monitoring each strain/phenotype for specific traits during the grow process. Once we find one that ticks all the boxes in terms of traits, stability, yield, etc., we clone the plant and start testing it for production. The clone is flowered three separate times and each pheno is monitored closely for different traits. Next, the selected clones go to R&D at the Mothership, our main grow. Only a lucky few make the final cut. The team is involved in seed popping, pheno hunting, production testing, consumption testing – every step from beginning to end. The process from seed pop to going into production takes roughly two years. 

LW: What is your approach to cultivation, and how is it different?

JM: My approach to cultivation is constant experimentation. There are 1,001 ways to grow cannabis well. Even if you’ve got something good going, you can always make it better. This industry is very competitive – if you aren’t constantly experimenting, you will fall behind. Stagnation is poison for innovation.

LW: How do you preserve the buds after harvest before they get to the customer?

JM: Buds are only packaged just before going to store shelves so they are as fresh as possible. Prior to packaging, we use a storage bag developed by Grove Bags, which retains the gases we want while releasing the gases we don’t. It is similar to produce bags that keep your peaches fresher longer, except for cannabis. Cannabis in Grove Bags maintains peak quality for several months, but it is packaged and off store shelves much sooner than that.

LW: What is the Mood State Matrix? What led you to go in this direction with your customer experience?

JM: Rather than simply classifying a strain as Sativa, Indica or Hybrid, we wanted to offer our customers a more personalized experience. Now our budtenders can lead customers and patients through the Mood State Matrix, which classifies strains based on effects such as sleep, relax, focus, energize and uplift. The Mood State Matrix was designed by an engineer after a comprehensive digital analysis on cannabis effects descriptions, extensive group testing on each strain, and mathematical modeling around results to ensure consistency and accuracy with the final five descriptors. The Mood State Matrix is a suggested guide and effects cannot be guaranteed. 

LW: What other tech investments has Native Roots made that support growth?

We have made several investments around testing equipment, lighting, water and energy usage. The RADSource uses photonic decontamination technology to ensure flower passes all state testing regulations. We are working on adding a CoGeneration plant that will allow us to produce our own electricity. A CoGeneration plant is more efficient than a conventional power plant since the heat produced during electricity generation is captured and not wasted. CoGeneration means less energy waste, less emissions and lower bills. We are also moving away from reverse osmosis (RO) water–which requires two gallons of water to make one RO gallon–to plain tap water. RO was the industry standard five years ago, but internal research has shown that filtered tap water works just as well for our plants. We are always testing new lighting solutions and a switch to LED systems allowed us to save two megawatts of power per year over our previous lighting solutions. 

How can folks find out more information?

You can follow me on Leafwire. You can also find out more about Native Roots’ products and locations at NativeRootsDispensary.com.