We attended an industry event last night put on by Canopy Boulder. Canopy is a business accelerator focused specifically on ancillary cannabis businesses.
The key note speaker was, Dominique Mendiola, the Director of Marijuana Coordination. She gave an update and implied that the new Polis administration will be fair to the Cannabis Industry in Colorado. Their policies will be guided by data and research.
A few of her main points:
- The research they have reviewed have debunked many common cannabis myths.
- Accidents involving DUI cannabis are actually down
- Teen Cannabis use has not increase
- Organized crime is down
2. SOP's (Standard Operating Procedures) can help dispensaries and other businesses avoid significant penalties. SOP's can be considered a form of supervision and an explicit attempt to avoid the violation.
3. Colorado is the most mature market and a leader in the nation when it comes to effective regulation.
4. 2019 priorities for her division will deal with social consumption, home delivery, and public company investments/ownership in Licensed Cannabis Businesses
They also had 2 industry panels, 1 more established, the other startups.
- The established brand panel was focused on recognizing consumer trends and how that'll affect product innovation.
- The challenge of educating the budtenders enough to be able to communicate the value of a product to consumers. The retail traffic can be high, so they need to be able to break it down to no more than a 30 second pitch.
- The panel also mentioned the challenges of advertising on Facebook. One of the companies was an industrial hemp (Now federally descheduled and legal) that is unable to market on there.
- The STATES act will likely pass, protecting states that have a legal and regulated cannabis market.
- An economic downturn is somewhat likely as China and Europe are showing signs of slower growth. The trade tensions with China and the government shutdown add additional uncertainty to the market.
- The downturn may push other states to end prohibition in the search for additional tax revenue.
- Larger CPG brands will likely start acquiring smaller brands rather than build from the ground up.