The United States has seen 10 states and Washington, D.C. legalize the medical and recreational use of Cannabis. There are 23 additional states (plus Guam, Puerto Rico, and the U.S. Virgin Islands) with medical use legalized. There’s no denying that more states are on their way to joining one or both sides of the fence, Illinois among them (for recreational use). The more States legalize, the more room for Cannabis businesses to emerge and the market is already seeing incredible revenues.
One source states, the U.S. CBD market could hit $22 billion by 2022. Another reports that edibles and beverages accounted for nearly $1 billion in sales in the U.S. (in 2017) and could grow to $4.1 billion by 2022.
Despite the ever-increasing legalization and emerging Cannabis businesses that come with it, there is still a lack of standardization and clarity that make the CBD terrain difficult to maneuver and manage. The U.S. hasn’t seen wide sweeping federal regulations. And with Cannabis employed in a variety of industries – food and beverage; medical and pharmaceutical; recreational; and more – different players may be involved in CBD regulations.
What, then, do those new businesses entering the Cannabis scene need to consider? They need to consider these 5 things:
1. THE REGULATORY ENVIRONMENT OF THEIR STATE
With no national standards or federal regulations, it’s imperative that you follow your State’s environment. “You have to maintain your current knowledge around state laws because that is where all the action is.” Familiarize with the Cannabis issue in your own backyard and encourage legislators to reconcile the challenges still at play. Urge stakeholders to work towards standardized and safe operations; and to consider existing food, beverage, and alcohol categories for guidance around labeling. Do your own research so you’re positioned as a thought-leader and not just a producer in the industry. Bottom line: you have to know what’s happening in your state. This is the fundamental, foundational building block for which your new Cannabis business rests.
2. PRODUCTION MANAGEMENT
While the standards and regulations may be murky, you still need to consider the best way to manage your production, inventory, packaging, distribution, and sales process. You need a solid database and centralized source of information about all areas of your Cannabis business. There are two software solutions we can recommend to help you run your business efficiently while also keeping you compliant: WeedWare and BarTender®. WeedWare is a “’Seed-to Sale’ ERP system,” allowing you to manage your entire enterprise with streamlined business processes. It’s a powerful Cannabis business management software. BarTender® is a barcode and label software that is adaptable to any regulation or business demand you face in your product’s chain of custody.
3. TRACK AND TRACE SOLUTIONS
Like any other product moving through a supply chain, emerging Cannabis businesses need to consider how they’re going to record the inventory and movement of their CBD products from cultivation to sale. A handful of states (California, Colorado, Oregon, Alaska and Nevada) are using Metrc software, but WeedWare and BarTender® can handle this, too. Additionally, you’ll want to determine how you’ll pair a unique identifier (UID) with your products which further protects your business and provides you the track and trace oversight you’ll need.
4. PACKAGING AND MATERIALS
Not every product should be placed in a bag, a bottle, or a vial. And not every kind of package or material may offer the amount of space to include the appropriate disclaimers and information that must accompany your products. As such, it’s imperative that the packaging and materials you use are selected carefully. There are a great many benefits to choosing the best packaging and materials to match the specific products you are selling: protecting the product; adhering to necessary regulations; marketing the product in an eye-catching way; allowing enough space for the right label; cost effectiveness; and shipping and handling. We can help with this. Our Cannabis labels and packaging solutions keep businesses productive and in compliance with the latest Cannabis labeling regulations.
5. AUTOMATION AS THEIR BUSINESS GROWS
Operational efficiency will be imperative to your success as your company grows. You’ll want to consider moving away from manual processes that cost you time and money. Consider solutions that will automate your operations and give you return on those investments – not to mention reduce the possibilities of human error that frequently accompany manual systems. Specifically, consider investing in an automatic bagger and sealer (over hand bagging) which can give you the efficiency and versatility you need to improve your packaging operations while reducing costs. Next, a quality label applicator (over hand labeling) can produce thermal or direct transfer labels and affix them to your products. Lastly, you could move to a scanning system as you pick orders. Mobile terminals and computers are critical to a wireless infrastructure, allowing employees to take them wherever they go and collect data and customer information as they need to, and/or complete business transactions at the point of sales activity.
Continue to watch this space for more information on emerging market considerations and planning for your new Cannabis business.
Remember: get and stay informed. Follow your states regulations – what’s happening now and what’s on the horizon. Use this post as a checklist to get started. And don’t hesitate to get in touch with us for labelling and software solutions that will help you manage from cultivation to sale.
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