mg Magazine | December 2024

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Elevating Cannabis Cultivation Globally Through Education And Best In Class Products

26 Years of Cannabis Research Pioneers of 57 Industry Firsts Behind More Cup Wins Than Any Other Brand

Global Network of Growers in 120+Countries

...And the only line to take cannabis anywhere near the peak of its known genetic potential.

The Difference is Clear Why Other Cultivators May Be Making More Money Than You

Strain: Dante’s Inferno
Strain: Dante’s Inferno

Contents Table of

Josh Kesselman

Mr. Rogers is one of his heroes. Celebrities promote his products for free. Many of his inventions are more whimsical than practical, and most of his ideas are a little offbeat. For the creator of RAW rolling papers, everything is inspiration.

Contributors

06 Industry News

Current events, data, trends, forecasts, and other tidbits for the well-informed professional.

Perspective

What working grueling sixty-hour weeks on the sales floor taught one brand president.

Marketing

RICARDO BACA

Formerly the cannabis editor for The Denver Post, veteran journalist Ricardo Baca is founder and chief executive officer at public-relations-and-marketing firm Grasslands: A Journalism-Minded Agency®. In 2023, he was appointed to Colorado’s Natural Medicine Advisory Board by Governor Jared Polis. MyGrasslands.com

DAN SERARD

Advice, tips, strategies, and insight for building brands, creating longevity, and earning trust.

Clever Campaigns

From unconventional partnerships to themed merchandise drops, interactive product launches, influencing influencers, and blowing up multiple platforms at once, we analyze what made eleven marketing ideas work.

Service Providers

Twenty-eight top public relations and marketing firms serving the industry.

Social Equity

It’s time for financial institutions and state regulators to end the war on drugs. 14 26 36 48 54

A six-year veteran of the cannabis industry, Dan Serard is vice president of sales and marketing for Cannabis Creative Group, an award-winning marketing agency. He is a member of professional organizations including the Cannabis Marketing Association, Rolling Stone Culture Council, and the National Association of Cannabis Businesses. CannabisCreative.com

MICHAEL MEJER

With an extensive background spanning more than a decade in publicity, marketing, and sales, Green Lane Communication founder and CEO Michael Mejer is a seasoned professional adept at forging connections between leaders in the cannabis sector and the media. GreenLaneCommunication.com

SHAWNA SELDON MCGREGOR

Shawna Seldon McGregor established Maverick Public Relations in 2018 after two decades at communications agencies in New York and Denver. In addition to some of the top brands in cannabis, she has provided PR support for diverse clients including the Green Inaugural Ball, Smithsonian, The Nature Conservancy, and AARP. TheMaverickPR.com

MAX VANSLUYS

With deep experience in cannabis retail and manufacturing, Dialed In Gummies President Max Vansluys has built a reputation for strategic leadership and enhancing operational efficiency. Previously, he served in management roles at Den Rec and StyleHaul Inc., where he played a pivotal role in defining the role of social media in marketing. DialedInGummies.com

MUNZER SUKHUN

As vice president of business services for Salal Credit Union, Munzer Sukhun leads a business banking team that specializes in serving the cannabis industry. He focuses on helping businesses thrive through tailored banking and lending solutions. Sukhun earned a master’s degree in business administration from Southern Oregon University. SalalCU.org

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Editor’s Letter

Well, we made it to the end of another year—once again with no decisive federal action to provide the industry with the economic relief it desperately needs. Instead, both Congress and the Drug Enforcement Administration seem determined to reset the clock. Their purpose isn’t clear, but expect more of the same next year as a Republican trifecta at the federal level likely will focus on enacting the new president’s agenda for immigration, taxes, and reforming the federal bureaucracy while rescheduling and banking reform continue to languish.

Incoming cabinet picks that could impact the industry are a mixed bag. Robert F. Kennedy Jr., nominated to lead the Department of Health and Human Services, is a bit of a conspiracy kook, but he’s pro-cannabis. That may or may not impact the industry’s potential dealings with the Food and Drug Administration going forward. Agriculture Secretary nominee Brooke Rollins is a Texan, and she’s aligned with the notoriously priggish Republican bloc in charge of that state. That could mean she’ll be inclined to throw up roadblocks to reform proposals for both cannabis and hemp. Scott Bessent, nominated to head the Department of the Treasury—home to the Internal Revenue Service—is a wild card. Wall Street is

excited about his nomination, but the man’s stance on cannabis is unknown.

Worst of the lot is Attorney General nominee Pam Bondi, who served the once-and-future president in a variety of capacities during his multiple courtroom adventures over the past four years. She also did a turn as Florida’s attorney general prior to current Governor Ron DeSantis’s tenure. She was an outspoken opponent of cannabis reform in both positions, which could prove problematic for rescheduling as the DEA will fall under her control.

The industry could face some headwinds over the next few years, which is why creativity will become even more important in budgets, especially where marketing is concerned. In this issue, we take a look at companies that successfully flexed their marketing muscles in 2024. In addition, four long-time players in the public relations, marketing, and branding arenas offer advice, tips, and insight to help brands create and maintain successful long-term strategies. And, because diversity, equity, and inclusion are under attack at the moment, we’ve included a banker’s perspective on how financial institutions and state regulators can help the industry win the continuing war on drugs.

Hang in there, friends. Our federal reform clock may have been set back, but it’s still ticking.

Editorial Director KATHEE BREWER

editorial@inc-media.com

Creative Director ANGELA DERASMO

Digital Editor Jeff Hale

Contributing Writers Anthony Coniglio, Christopher Jones, Danny Reed, Dan Serard, Darren Gleeman, David Kooi, David Sandelman, Gary Allen, Henry Baskerville Esq., Howard Sykes, Jay Virdi, Jess Phillips, Kim Prince, Kris Krane, Kyle Sherman, Lance C. Lambert, Laura Bianchi Esq., Marc Beginin Esq., Max Vansluys, Michael Mejer, Mitchel Chargo Esq., Munzer Sukhun, Rachel Gillette Esq., Rachel Goldman, Ricardo Baca, Richard Proud, Robert T. Hoban Esq., Ruth Rauls Esq., Ryan Hurley Esq., Scott Johnson Esq., Shane Johnson MD, Shawna Seldon McGregor, Stacy Litke, Sue Dehnam, Taylor Engle

Artists/Photographers Proven Media, Christine Bishop, Mike Rosati

Digital Strategist Dexter Nelson

Circulation Manager Faith Roberts

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BRANDI MESTA

Senior Account Executive

Brandi@inc-media.com (424) 703-3198

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mg Magazine: For The Cannabis Professional Vol.10, No.12 (ISSN 2379-1659) is published monthly by Incunabulum LLC, located at 23055 Sherman Way, No. 5069, West Hills CA 91308. Periodicals Postage Paid at Las Vegas Post O ce and additional mailing locations. POSTMASTER: Send all UAA to CFS. NON-POSTAL AND MILITARY FACILITIES: Send address corrections to mg Magazine, 23055 Sherman Way, No. 5069, West Hills CA 91308.

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Industry NEWS

CBN May Modify Architecture of Sleep

CAMPERDOWN, Australia — New research at the University of Sydney indicates cannabinol (CBN) modifies the architecture of sleep. The study, published in the scholarly journal Neuropsychopharmacology, was the first of its kind to use objective evidence to reach conclusions.

“For decades, cannabis folklore has suggested aged cannabis makes consumers sleepy via the build-up of CBN; however, there was no convincing evidence for this,” said Professor Jonathon Arnold, the study’s lead author and director of preclinical research at the Lambert Initiative for Cannabinoid Therapeutics and the Sydney Pharmacy School at the University of Sydney “Our study provides the first objective evidence that CBN increases sleep, at least in rats, by modifying the architecture of sleep in a beneficial way.”

CBN is a non-intoxicating end product of the main intoxicant in cannabis, delta-9 tetrahydrocannabinol (THC). THC is converted into CBN over time,

which means older cannabis contains higher levels of the compound. According to lore, the consumption of older cannabis is associated with a sleepier “high.”

In the United States, highly purified CBN products are sold as sleep aids, but there has been little high-quality scientific evidence to support the application.

The research team at the Lambert Initiative tested the effects of purified CBN on sleep in rats. Using high-tech monitoring, the experiments provided insight into the rats’ sleep patterns, including the amount of non-rapid eye movement (NREM) and rapid eye movement (REM) sleep.

NREM is deep sleep that promotes physical recovery and strengthens memories. REM sleep is associated with dreaming and emotion-processing.

“CBN was found to increase both NREM and REM sleep, leading to increased total sleep time, with a comparable effect to the known sleep drug zolpidem,” Arnold said. “At this stage, our results are confined to testing in rats. Further research is needed to see if this translates to humans.

“The team has now commenced a preclinical drug discovery program around CBN, as well as observing whether the pro-sleep effects of CBN can be further amplified by other molecules found in cannabis or by conventional sleep aids such as melatonin,” he added.

Deep Roots Harvest Buys The Source

Deep Roots Harvest acquired fellow vertically integrated Nevada operator The Source in a deal that included four dispensaries, two provisional dispensary licenses, a provisional lounge license, a cultivation facility, and a distribution license. Financial terms were not disclosed. The dispensaries will continue to operate under The Source brand.

Decibel Acquires AgMedica

Canadian processor and manufacturer Decibel Cannabis Company Inc. acquired AgMedica Bioscience Ltd. from Calisto Capital Corp. in a deal valued at $6.3 million. Decibel expects the acquisition to add as much as $30 million in net revenue during fiscal 2025, primarily due to EU-GMPcertified AgMedica’s international expansion potential.

SNDL Completes Indiva Takeover

SNDL Inc. completed its stalkinghorse takeover of bankrupt Indiva Group by absorbing debt Indiva owed to SNDL, assuming Indiva’s other liabilities, and making cash payments to satisfy priority outside obligations. The transaction, estimated at $22.7 million, included a 40,000-squarefoot production facility and a brand portfolio including Pearls by Grön, No Future, and Bhang Chocolate.

Have a Holly Jolly Holiday Sales Season

The holiday season is approaching, and we have some tips to help you maximize this sales season.

We’ve noticed sales tend to spike the Friday before Christmas day. Delivery and pick-up boast larger cart sizes than walk-in customers. Make sure to diversify your product o erings. ink about creating special bundles, limited edition items, or exclusive holiday strains.

Run targeted campaigns on social media, send out email newsletters, and leverage any other marketing channels you have at your disposal.

Recommendations:

Create a month-long marketing campaign to engage customers with special holiday

and bundles.

Support Remains Strong, Despite Election Setbacks

WASHINGTON — Election night may have delivered a mixed bag of results for a hopeful industry but, according to NORML, public support for legalization and criminal-justice reform remain near all-time highs.

Nebraska voters overwhelmingly approved a pair of ballot measures to provide qualifying patients with access to medical cannabis, but the measures remain mired in legal challenges initiated by the current Nebraska secretary of state and a former state senator.

Meanwhile, in Texas—a deeply conservative state where statewide citizeninitiated ballot measures are not allowed— voters in Dallas (population 1.3 million) and two other cities approved municipal decriminalization measures. Nine other cities and six counties in Texas have decriminalized possession and use.

In Kentucky, voters in 106 municipalities and counties approved local measures to allow medical cannabis businesses to operate in their jurisdictions.

Although Florida’s Amendment 3 failed to reach the 60-percent supermajority required to pass, the statewide measure that sought to legalize adult-use sales

received more than 1.2 million more ‘yes’ votes than ‘no’ votes. Republican Governor Ron DeSantis spent $30 million in taxpayer funds opposing Amendment 3 and a measure that would have codified a woman’s right to choose abortion care (which also failed).

Adult-use initiatives in North and South Dakota also failed to gain majority support. Similar measures in those states previously failed in 2022. South Dakota voters approved an adult-use initiative in 2020 by a significant margin, but the result was invalidated by the state supreme court on technical grounds. Both states have legalized medical cannabis.

Despite the failed 2024 initiatives, “public support for legalization has risen twenty percentage points in the past decade and now sits at 68 percent nationwide,” said NORML Deputy Director Paul Armentano. “Nearly 180 million Americans reside in a jurisdiction where the possession, use, and sale of marijuana by adults is legally regulated.

“No state has ever repealed its marijuana legalization laws and there’s no ‘buyer’s remorse’ among voters,” he added.

Values Chain

Consumers are increasingly mindful of what their spending supports. (Source: Amazon Ads

75% make values-based purchasing decisions

81% buy from brands with values that match theirs

68%

want to see more diversity in advertising

66% actively seek sustainable business practices

W E P U T C A N N A B I S

B R A N D S O N T H E M A P

$10-Million Investment Reincarnates Eaze

LOS ANGELES —Like a Phoenix rising from the ashes, the insolvent delivery service and retail operator once known as Eaze Technologies Inc. has been reborn as Eaze Inc. following a capital infusion of $10 million in Series B funding.

Once known as “the Uber of Weed” and valued at $700 million, delivery-servicecum-multistate-retailer Eaze Technologies was acquired at auction for $54 million by holding company FoundersJT after the latter’s owner, Netscape co-founder James Henry Clark, foreclosed on a previous loan to Eaze. According to the new entity, its predecessor completed more than $1 billion in deliveries during the ten years prior to its demise.

Men and women report varying performance from cannabis products

Here’s the data:

are top for sleep, outperforming tinctures by 18% for women & 20% for men, but men’s optimal dose is approximately twice that of women’s

The Series B investment will fund reopening seventy Eaze Inc. and Green Dragon locations across California, Colorado, Florida, and Michigan. Among the properties are fifty-seven retail dispensaries, eleven delivery hubs, and two production facilities.

Cory Azzalino, who served Eaze Technologies as chief executive officer from September 2022 until the acquisition was complete, will lead the new entity. Expansion into new markets will be a focus, he indicated. The company intends to recruit more than 1,000 employees across its current four-state footprint. Other planned uses for the funds infusion include:

• Doubling production capacity in Florida to 64,000 square feet of flowering canopy.

• Opening new dispensaries and expanding delivery capacity across current markets.

• Launching refreshed brand-marketing campaigns highlighting the company’s newly launched scheduled delivery capabilities.

• Building new brand partnerships across all existing territories and developing additional market-specific product offerings.

“We deeply value the contributions of all those who were part of Eaze Technologies Inc.’s journey and remain committed to creating a company that continues to push forward with innovation and care,” Azzalino said. “The $10-million investment will allow us to strengthen our supply chain ... and set the foundation for long-term success.”

TOP 5 MOST POWERFUL CANNABIS PR FIRM THE OBSERVER

MEET THE CANNABIS PRESS FOUNDERS FOUNDED IN 2015

TOP PR FIRM THE BUSINESS JOURNAL

2025 BEST PR FIRM FINALIST AZ FOOTHILLS

2024 BEST PR FIRM FINALIST THE EMJAYS

DUBBED “STARMAKERS”

NORTH VALLEY MAGAZINE

PR AGENCY OF RECORD MJ UNPACKED

PR AGENCY OF RECORD ARIZONA DISPENSARIES ASSOCIATION

WOMEN TO WATCH MARIJUANA VENTURE

NOTABLE LEADER GREEN MARKET REPORT

MOST POWERFUL WOMAN OF CANNABIS AZ BIG MEDIA

QA &

Q. What are some ways in which you have used cannabis to feel empowered?

I have anxiety, and consuming cannabis helps me feel more comfortable when it comes to being social, being myself, and ultimately being my best self. Other people feed off that energy, so I think it helps all of us in the long run, especially when I’m helping someone discover their connection to the plant. I think it helps my customers trust me more, as well, knowing I have my own relationship with the plant. Cannabis makes me feel empowered because I know it helps me.

Q. What advice would you give to your younger self about being unapologetically you?

I would tell myself to be me 100 percent of the time and not care about anything else. I would tell my younger self, “You will be loved and accepted way more by just being who you are.”

I wish I’d known that at an earlier age—that the best thing I have to offer

Cookies Melrose budtender BREAWNA LEWIS advocates for women, cannabis, and healing.

is me. No one else is me, and no one can replicate me. Once I realized that was my strength, it truly started to shine through. People recognize it when they meet me. Customers come back not because I’m selling them products but because I’m genuine in what I do. That resonates with people. That’s what I always want to be to my customers.

Q. What myth about being a woman in the cannabis industry would you most like to bust?

That we have it easier because of how we look or because we’re “girls.” No, it’s because I know what I’m doing, and I’ve worked hard to get here. I’ve gone home at night and studied; I’ve put in that extra effort. On top of that, I still wake up earlier to make sure I look good, but what makes me stand out has nothing to do with being a female or how I look. I’m going into my ninth year in the industry, and if my experience doesn’t show when you talk to me, then I’m doing something wrong.

Q. How has being an unapologetic advocate for the plant impacted your role?

Every once in a while, a difficult customer will come in with an oldschool bias against cannabis, but their family member brought them in because they know they need it. That family member looks at me like, “Please say the right thing. I need you to give them knowledge and make them feel comfortable.” Those are the toughest moments, but I love them.

Being able to change someone’s perception of cannabis after they’ve had a negative view of it for so long, and then to have them return to the store and say, “It works! You did it!” That is everything for me.

From the coast of California and the heart of two women comes CaliLily, a luxury line of cannabis-infused fruit chews. Made with premium ingredients, award-winning solventless live rosin, and precise dosage, CaliLily edibles provide the right experience every time. CaliLily’s products are designed to be enjoyed for any reason or no reason at all. CaliLilyCanna.com

FROM BUDTENDER TO BRAND PRESIDENT

What grueling sixty-hour weeks behind the counter taught me about running a cannabis company.

In 2019, I left a well-paying corporate career to work as a budtender in Denver. People thought I was nuts, trading in my comfortable life for sixty-hour work weeks on the busy retail floor, but I was driven by a desire to learn the cannabis business from the ground up.

I landed a job at a well-known dispensary called Den Rec, where I soaked up everything about brands and consumer preferences. Within two months, I was promoted to manager of the downtown location, digging deeper into the weeds of the business.

Now, as president of Dialed In Gummies, I often think about those early days behind the counter interacting with customers. I had a front-row seat witnessing firsthand what brands got right as they competed for sales—and what they got wrong. Here are five key lessons I learned.

Scarcity sells

Fear of missing out, or FOMO, is real among cannabis consumers. In my retail experience, I noticed brands that created limited-edition products or collaborations turned shopping into a treasure hunt, with customers eagerly seeking out the rare offerings. They know something special is out there, but they have scarce time to purchase before it’s gone, maybe forever. The strategy creates a purchasing experience that goes beyond the

product itself, making consumers feel part of something bigger. But scarcity is not a cruel trick to manipulate customers. It’s about delivering truly special products. Limited availability reflects genuine uniqueness and quality, giving consumers a chance to experience something exceptional.

At Dialed In, we applied this concept by hand-writing batch numbers on our labels, like “one of 255.” As we scaled and the batches got larger, we had to find other ways to make the experience special for customers. We still rotate through different strain-specific collaborations with various flower providers, creating unique batches that keep our customers coming back to see what’s new and limited.

Collabs build credibility

Collaborations are key, because they can help your brand grow and gain a good reputation. When you partner with an established brand, you expand your reach and tap into new customer bases. You also create superior-quality products neither company could create on its own.

We work with a variety of flower providers, from small brands to influential players in the space, creating unique, co-branded products. We’ve seen our partnerships boost interest in our collaborators’ products

as well as help them expand. Meaningful collabs are about creating a network of brands working together to improve the entire industry.

Community is key

Community-building fosters brand loyalty and growth. In our industry, it’s not just about selling; it’s about adding value for consumers, patients, and other industry folks. As a store manager, I learned how important it was for brands to show up at events, help educate people, and stay visible even after you’ve made it big. This sets you apart in a packed market.

When I started at Dialed In, I used to fill my backpack with T-shirts, hats, lighters, and lanyards and go from event to event, talking directly to consumers, patients, and budtenders. This personal touch allowed me to educate people about our brand and build real connections. It meant a lot to people that someone from the company would show up and engage with them on a personal level. That’s why we still do this today.

Flavor variety drives sales

Back in my budtending days, I realized that when brands changed flavors and product types, customers kept coming back to try new things. While some folks like the same thing every time, many enjoy variety and the chance to experience something different with each purchase. Finding the right mix of new items and reliable favorites appeals to different tastes and encourages repeat buys.

Labels make or break brands

As a budtender, I noticed many brands had impressive in-store displays and merchandising. But for smaller brands that were just starting out, the label was everything. If you don’t have money for fancy displays, how do you stand out on a crowded shelf?

The answer is to create eye-catching, colorful labels that capture attention and communicate your product’s value quickly.

In our first couple of years, when we were still establishing ourselves, focusing on bright, colorful labels helped us compete with bigger brands, but we’ve also learned to simplify over time. We realized we were putting too much information on our labels, potentially confusing customers. Now, we aim to give consumers exactly what they’re looking for.

For example, we initially avoided using terms like sativa, hybrid, or indica on our packaging, preferring our own nomenclature for effects. But after talking with budtenders, we realized this might have been doing us a disservice. We use a QR code on every package that will take consumers to our potency testing so they can see the top terpenes and cannabinoids in that batch of rosin. After we added these familiar terms to our labels, we saw an increase in sales.

When I look back on those early days at the dispensaries, burning the midnight oil (and more), I value them as a crash course in cannabis sales. What seemed like a test of endurance turned out to be the foundation of my success. Sometimes you can get the clearest perspective on an industry not from the executive suite but from the ground floor. That’s a lesson I carry with me every day.

JOSH Kesselman

SOME CALL HIM A VISIONARY. OTHERS CALL HIM “COLORFUL.”

THE CREATOR OF RAW ROLLING PAPERS IS JUST BEING HIS NATURAL SELF.

Of all the challenges companies face in the competitive United States market, building brand allegiance is one of the most daunting. Consumers, both new-to-the-plant and experienced, can be a fickle crowd. As a result, very few brands have a dedicated following. Tight marketing budgets and limited advertising opportunities make building a following even more challenging. But for brands that have cracked the code and carved out a loyal customer base, life is good.

RAW rolling papers is one such brand. By the time Josh Kesselman launched the brand in 2005, he had been buying and selling rolling papers from around the world for many years. He also had researched the materials and manufacturing processes European companies have employed for centuries. Kesselman had a vision for what he wanted to create: a vessel for smoking cannabis that wouldn’t interfere with the unique, delicate flavors and aromas the plant produces. In addition, he wanted the product to be made from unbleached plant material and free of chemicals, additives, and dyes. And, in a market where all the papers were white, he wanted his papers to be brown.

Kesselman realized his vision for a “better” rolling paper might mean producing a niche product that would

appeal only to connoisseurs, but he had faith the old guard and purists would appreciate his work and word would spread: Build it, and they will smoke.

“We got [the papers] into the smoke circles every chance we got and were giving out free packs to people you could tell were real stoners,” he said. “Once the product made it into the sesh circles, people started saying ’Hey, what is this? It tastes different. It hits different. It doesn’t have that chalky residue. What is this?’ There was something about RAW that was different from everything else that was out. It didn’t have certain chemicals that many rolling papers had, and it wasn’t bleached.”

As word spread about the quirky new brown papers, high-profile rappers

including Wiz Khalifa and Curren$y began calling out the brand in their work.

“I was in my car one day, and I got a call from Warner Music that Wiz had done a song about RAW papers,” Kesselman said. “I hadn’t paid Wiz anything. I was sending him papers because his people told me he loved my papers. But I was like, what? Sure enough, they played me the song over my phone. And it wasn’t done for money.

“We did a collab[oration] with him afterwards, but that was more of a thank you rather than ‘hey, I’m going to pay you to do something.’”

Kesselman embarked upon his entrepreneurial journey in the early 1990s when he opened a modest smoke shop in Gainesville, Florida. He would order

INVENTING AND DEMONSTRATING UNCONVENTIONAL DEVICES ALLOWS KESSELMAN TO INDULGE HIS INNER MAD SCIENTIST.

almost anything customers requested and learned about new products from the members of the community who used them. At the time, he was trading rolling papers with collectors in Europe and buying whatever “exotic” papers he could, then reselling them to curious customers who dropped into his store. The experience gave him a taste for running a business … until the store was forced to

“I NAMED MY FIRST BRAND ELEMENTS AFTER THE ELEMENTS USED TO MAKE THE RICE-STYLE PAPER. IT’S AN HOMAGE TO THE PAST.”

close after an employee sold a bong to the daughter of a high-ranking U.S. Customs Service official.

Undeterred, Kesselman followed the prevailing winds and moved to Arizona, which he called “the paraphernalia capital of America” at the time. Shortly thereafter, an encounter with a Spanish businessman at a trade conference proved one of the most significant moments in his entrepreneurial career. The chance meeting led to the creation of Kesselman’s first successful rolling paper brands: Elements and Juicy Jay’s. His experiences founding and growing those brands led to the establishment of RAW.

As anyone who has encountered Kesselman can attest, his enthusiasm for his brands and products is part and parcel of his personality. He especially enjoys dreaming up new products that are meant to be both functional and whimsical and harken back to the wacky paraphernalia he and his friends toyed with in the 1980s. He also takes joy in creating humorous, over-the-top videos for the company’s social media channels. With 3.6 million followers on Instagram, @rawlife247 has one of the largest followings of any company in the industry, and Kesselman is only too happy to keep feeding the masses new content.

On the cusp of RAW’s twentieth anniversary in 2025, Kesselman seems as enthusiastic as ever about his company and as eager to connect the past to the present for consumers who like to roll their own.

What was your first business deal in the rolling-papers

realm?

I was looking for papers and connected at a trade show with an older Spanish man, and I was very young at that point. He said, “Josh, why do you even care about rolling papers?” He was sitting there staring at me because he thought he was going to meet a businessman, but I had long hair and my biker shit on, and he was like, “Who is this kid?”

NO IDEA IS TOO WACKY FOR A TEST DRIVE WHEN KESSELMAN IS IN A CREATIVE MOOD. HIS PLAYFUL SPIRIT OF ADVENTURE KEEPS FANS ENGAGED WITH HIS BRAND.

I could tell I was losing him, so I told him the story about my dad’s magic trick with rolling papers: lighting a paper and tossing it up in the air to make it disappear. The brand my dad used was Marfíl Arroz, which no longer existed.

As soon as I said the brand’s name, [the Spanish gentleman’s] face lit up. He told me his father and grandfather produced that brand. I decided we had to bring it back, and right then was when I had the idea to start making my own rolling papers. I named the first brand Elements after the elements used to make the ricestyle paper. We couldn’t call it Marfíl Arroz, because when mega-tobacco bankrupted the old factory with litigation, they took away the trademarks. Nobody could use any of the names. So, Elements is really just an homage to the past, and it did very well. That was in the late ’90s, and I was thrilled.

Did you run into any challenges getting unconventional rolling papers off the ground?

I remember going to the mills to try to get someone to make this base sheet that no one had ever seen before. I tried talking to the paper manufacturers about what I was looking for—which was this translucent brown, organic-inspired paper that I could only envision in my head— and no one would do it. They’d never done this kind of thing. All I got was “no, no, no, no.”

I was very upset about this, but then I realized I was asking the question the wrong way. So, I went back to one small mill and said to them, “Hey, if I ordered 100,000 tons of this, you would make it, right?” They said, “Yes, of course.” And voilà! The first booklets of RAW were born. We did some test booklets throughout the 2000s, but the first real launch—when we finally got in a real shipment—was in 2005. So, we’re about to hit our twenty-year anniversary.

Your Instagram videos are reminiscent of the Crazy Eddie commercials in the 1980s. Was that part of your inspiration?

My inspiration was Mr. Rogers. Even to this day, if a Mr. Rogers video shows up on social media, I just watch it and listen to him talk. It brings me back into that complete place of stillness [I experienced when I watched him as a kid]. It’s like a kind of meditation.

Crazy Eddie is definitely an influence in my life, too. I have that energy in me, and I’ll tell you why. I grew up with a stutter, and when my grandma took me to a speech therapist, the person was trying to make me feel better and told me, “It’s not that you’re stuttering; it’s that your brain is moving faster than your mouth can work.” I walked out of there and thought about that and realized I just need to talk faster.

Humor obviously is a big part of your social media presence, but what inspires you to make videos promoting your brand? What is your creative process?

I picture Timmy every time I make a video. Timmy is this character I made up in my head, and he lives in a very low-cost place, like some smallish town in Iowa. He works in fast food. He’s really not happy with his life, but he loves getting stoned on weekends with his friends. Obviously, I was Timmy. You get that, right? And so when I’m doing my videos, I’m basically saying, “Timmy, check this out. Here’s a cool thing. Take out this ring and there is a holder in it for your joint, bro.” The videos are really all directed at Timmy, my former self who loved all that stoner stuff.

Where did the RAW umbrella idea come from?

I was out getting stoned in the rain, and I just made a holder on the umbrella. And we realized closing the umbrella would crush it, so I had to build a holder into the handle. We’re just like, “Oh, this [product] would be so perfect. There’s no one else on planet Earth who’s gonna make a stoner umbrella besides me. So I gotta do this, and I gotta make it right.” And since I lived in Arizona, I had to make it for sun and rain. I had to make it something that people were not embarrassed to use. So I made it this metallic gold, because metallics generally reflect solar light, which is something I’ve learned by studying [ultraviolet

“IF YOU WANT TO SEE WHAT’S GOING TO HAPPEN IN THE U.S. AFTER FEDERAL LEGALIZATION, LOOK AT CANADA.”

radiation]. Then I thought, “I’ll put the RAW logo on it so people won’t be embarrassed. It’s gonna be cool. I’m gonna make sun umbrellas cool. This is gonna be awesome.”

And thus, three years later, the RAW sun umbrella was born. Before I launched it, I didn’t understand people drop umbrellas. The little mouthpiece can break if people drop it the wrong way. So then I had to make a version two with a rubber mouthpiece to make sure it doesn’t break and send [one of the new models] to everyone who got a first version.

What qualities make one rolling paper “better” than another?

There’s different ways to make rolling paper, but my preferred way is to make it as minimalist as humanly possible. You adjust the burn based on something called a CORESTA [Cooperation Centre for Scientific Research Relative to Tobacco] unit. CORESTA measures the amount of air you allow to pass through the paper to feed the ember so it doesn’t go out. If you let in too much air, then you’re diluting the hits, and you end up with the “light cigarette” effect where you’re pulling on the joint, the ember lights up, but you’re not getting that much smoke. Instead, you’re getting a lot of air, and that ember can continue to burn for a long time afterward because of all that oxygen.

Big Cannabis would probably love that, because you’re going to waste a whole bunch of weed. But a real rolling paper craftsman is going to hate that, because you’re trying to keep the ember alive long enough to serve for the next puff and for it to go out in a reasonable amount of time. [Manufacturers are] constantly adjusting their CORESTA to try to achieve that effect, which is where art really comes into play. You can add chemicals, which some people do. We do not. In order to control the burn, we prefer do it this simple way of just air flow through the paper.

There are companies using wood, rice, hemp, flax, and other raw materials to manufacture rolling papers. What is the best material, in your opinion?

There is no single best material. It’s really like pairing wine with cheese: It depends on your weed and its moisture content, the actual strain, the way it burns, its oil content. All of this is going to pair differently with different papers. Also, the flavor is going to change. There’s the overall art.

The industry believes the overarching, overall best material, which is used for most cigarettes and most rolling papers, is different forms of soft wood. You have to pick which one actually has the flavor you’re looking for. Hemp is very popular, but hemp can have a little bit stronger, earthier flavor that only pairs with certain strains, whereas a wood-pulp-based paper is more universal in my experience.

What has surprised you the most about the way the U.S. cannabis industry has developed over the past ten or so years?

The thing that made me sad is “frankenweed.” It’s like someone said, “Here’s what I’m going to do: I’m so smart, I’m going to follow what mega-tobacco does.” So, they take the plant—it doesn’t matter if it’s tobacco or cannabis—they take all the actives out of it, and then they add them back in a controlled dose and mash it up into a pulp. It’s almost as if they’re making paper and spreading it out into sheets, spraying the actives or mixing the actives back in, and then cutting it up and shredding it so it looks like something. Maybe they add a green dye back into it, or brown dye, in order to make it look more like what they’re trying to mimic. And now we have this generic, homogenized cannabinoid product. That just pains me. This is a plant that was put here by nature itself. It grew

here for millennia, and now some of us are taking it and just destroying it.

What advice do you give people who come to you with ideas about new paraphernalia products?

My advice to them is this: Is your product truly unique? Does it uplift people and make it easier for them to roll a joint or make it easier for them to grind or fill a joint? Is there a benefit to our culture and our community? If so, what’s the benefit? Show me. That’s the first thing I push them on. After that, is it easy to use? Are people going to figure this out, or is it one of these complex things? Because those break my heart. There’s no way my people are going to figure that out. There’s ten steps? No. It has to be easy. Remove yourself from it for a moment and think, how does this truly benefit our community? And if you can come up with a convincing argument, then I would love to hear it.

Whatever you do, if you are an also-ran, then don’t even talk to me.

What developments do you think we’ll see over the next five years?

If you want to see what’s going to happen in the U.S., look at Canada. You can expect what we’re seeing up there. There’s been a boom and then a bust. It will happen here too.

As soon as we get real federal legalization, there will be a boom and then a bust. There’s going to be even more money coming in and even more money lost. There’s going to be a bunch of scammers out there and—in the end, what happens when the pieces fall down and everything gets settled—consumption rates are going to remain flat to where they were before legalization. If anything, if we follow the alcohol model from the 1920s, consumption actually will go down after legalization.

THE ART OF STORYTELLING

You know that feeling when you’re reading a book that captivates you from the jump and sucks you into the story all the way until you reach the final page? This is the power of engaging storytelling—and it’s not just for fairy tales, spy thrillers, and mysteries.

Storytelling is a crucial aspect of marketing, no matter the industry. But cannabis is more than just an industry; it is also a community—one that understands the struggles of decades past, brings people together from all walks of life and backgrounds, and (ideally, at least) prioritizes people over profit.

That is why storytelling in and about our industry is wildly effective at generating press, gaining brand exposure, and acquiring customers. To put it simply, much like building a community, storytelling creates emotional connections between brands and consumers.

But what is storytelling in the context of marketing? Storytelling in marketing is the practice of crafting a brand narrative that will resonate with target audiences

and drive desired actions. Here’s an example of a brand narrative that tells a compelling story:

Sarah, the founder of a wellness company, was a former pharmaceutical researcher who struggled with chronic pain after a car accident. Traditional medications left her feeling foggy and disconnected, impacting her quality of life. After extensive research, she discovered the potential benefits of cannabis for pain management.

Frustrated by the lack of consistent, high-quality products available, Sarah leveraged her scientific background to create her own line of infused topicals. She spent years perfecting her formulas, focusing on natural ingredients and precise dosing.

Born out of Sarah’s desire to help others find relief without compromising their well-being, our company’s mission is clear: to provide safe, effective, and sciencebacked cannabis products to those seeking alternative wellness solutions.

If we were to dissect this brand-narrative example, we probably would agree: Sarah, the company’s founder, is the main character. The conflict and emotional appeal in the story is her unmanaged chronic pain after an inciting incident: the car accident. The rising action is Sarah’s decision to create her own cannabis-infused topicals. The climax is the launch of her wellness company. And the resolution is that Sarah and her company now are helping people who can relate to her chronic pain by providing them with alternative wellness solutions.

Using plot, characters, and emotion makes brand stories more engaging and memorable. In fact, a Stanford University research study found people retain only 5–10 percent of the information they encounter if the information is displayed in statistics alone. However, when coupled with anecdotes (such as a story to detail the “why” behind the statistics), the retention rate increases to 65–70 percent.

What’s more, according to Search Engine Watch, storytelling can boost conversion rates by 30 percent. This makes sense when you also consider:

• Stories have the potential to boost product perception by 2,706 percent.

• If people love a brand story, 55 percent are more likely to buy the product in the future, 15 percent will buy the product immediately, and 44 percent will share the story.

• Ninety-two percent of consumers want ads to feel more like stories.

The proof is in the numbers. Storytelling is vital to marketing your company and driving revenue. The question is, how does a company get started building a brand narrative?

Three key elements form the basis of effective storytelling in marketing.

Authenticity: According to a Sprout Social study, 86 percent of Americans want to buy from “transparent” brands. Being as honest, genuine, and authentic as possible in marketing collateral is crucial to fostering trust between a brand and its consumers. According to Edelman, 81 percent of consumers say they need to be able to trust a brand in order to buy from it.

Emotional connection: A Harvard Business Publishing article states, “Scientists are discovering chemicals like cortisol, dopamine, and oxytocin are

released in the brain when we’re told a story.” Why does this matter? The article goes on to explain cortisol assists with composing memories, dopamine keeps people engaged and helps regulate emotions, and oxytocin helps develop empathy. All are vital aspects of generating an emotional connection with a person, brand, or story.

Unique value proposition: What part of your brand’s story differentiates your company from the competition? For this aspect of storytelling, think about your brand’s origins or how your cultivation methods are unlike any others. Maybe your commitment to sustainability makes your brand stand out. Whatever the differentiator is, make sure your brand’s unique characteristics come through in your marketing story.

Once you understand these three elements, it’s time to craft your brand’s narrative. Start building your brand story by determining your brand’s core values and mission. What does your brand stand for? What’s the goal of your company as it relates to customers? How do your products or services serve the community? Asking yourself and your team these questions will put you on the right path to setting the foundation for your brand’s narrative.

Next, align your story with your target audience’s values. How does your brand resonate with its target audience? What are your ideal consumers’ aspirations, needs, and lifestyle? A solid brand story addresses customers’ desires and values, fostering trust and loyalty in the process.

After that, create authentic and engaging content. What good is a brand story if it falls on muted ears? The best way to get your brand’s narrative out into the world is to generate content that tells your story. This could include sharing social media posts that discuss your company’s origins and journey, writing a guest column that highlights your cultivation methods or innovative automated packaging machines for an industry publication, or even hopping on a podcast to verbally share your brand’s commitment to quality and customer service.

Storytelling in marketing, especially for cannabis companies, is vital to connecting and resonating with consumers. You want to rise above the noise in this crowded market, build trust, and foster customer loyalty? You need an authentic, unique, and relatable brand narrative.

BUILDING A BANK OF TRUST

It’s an unfortunate fact that today we live in an age of rampant mistrust. Thanks to social media and digital communication, misinformation is easy to disseminate and more likely than ever to be accepted as fact. Folks who wish to deceive find it relatively easy to do so and increasingly attract a receptive audience when messages align with personal beliefs. As a result, trust in our government, our institutions, and our media outlets has fallen to unprecedented levels.

According to a 2023 Gallup poll, only 8 percent of Americans feel a “great amount” or “fair amount” of confidence in the United States Congress, which was the institution rated with the least public trust in the survey. At the other end of the scale, 65 percent of respondents said they had confidence in small businesses, although this rating was down 5 percent from 2021. Rated just slightly higher in public trust than Congress were newspapers (18 percent), the criminal justice system (17 percent), television news (14 percent) and big business (14 percent).

Although we could cite numerous reasons for the erosion of confidence in our national institutions, there are a few key factors that tend to lead to a loss of trust over time: overpromising while under-delivering, lack of honesty or clarity in communication, and failing to act on critical issues. In other words, the same issues that erect barriers in your personal relationships can have a similar impact on your business.

Business—and pretty much any other kind of human activity—is built on relationships. Relationships need trust to survive and thrive, just like people need oxygen. Trust ensures your customers will return time and time again, your business partners will support you in good times and bad, and your colleagues and employees will stay loyal to the company’s mission. Perhaps most important, trust enables your reputation to serve as a shield against attacks or when an unexpected crisis threatens the business.

Consequently, the risks to businesses lacking a fortified bank of trust have never been greater.

Increased cynicism toward traditional institutions, the rise of social media, and the spread of misinformation have created an environment where trust is easily eroded—and there are an increasing number of businesses and individuals willing to capitalize on this environment to gain an edge against competitors. The outcome for businesses can be catastrophic, including a tarnished reputation, lost revenue, or worse.

Fortunately, proven tactics exist to help businesses shore up their reputation and fortify trust over the long term.

First, develop loyalty through reliable and ongoing communication. Trust is built over time, so maintaining an ongoing communication program ensures your customers, partners, employees, and other audiences develop a deep and lasting relationship with the

with business partners and vendors by tailoring your communication to where they “live,” be it online, in person, or through voice phone calls. Keep in mind the rule of thumb: Listen twice as much as you talk. Twoway communication leads to strong relationships. Finally, remain honest and transparent. Businesses must have unimpeachable respect for their customers and partners. This means communication must always be open and transparent about products, services, delivery dates and, yes, even when mistakes occur. Perhaps especially when mistakes occur. Businesses can be forgiven if unforeseen circumstances interfere with a delivery date or a product’s performance, so long as those circumstances are clearly communicated and explained. However, when challenges erupt and communication is stifled or appears insincere, trust

A bank of trust will be the attribute that helps your business

maintain customer and partner loyalty when difficulties arise.

business. Robust and regular communication helps improve the overall customer experience, assists you in understanding your customers, and works to enhance your business reputation.

In addition, be inclusive and attentive to all stakeholders, external and internal. Customers and business partners want to feel that you hear and understand their needs. The same goes for employees. Demonstrate you know your audiences by communicating with them in ways they are comfortable with and that meet their expectations. For example, cater to customers’ communication needs by offering several ways to keep in touch. Some customers appreciate a phone call or text message about important matters, while others prefer to be reached only through email communication. Providing a choice demonstrates you understand customers’ busy lives. Act similarly

quickly dissolves. People will forgive an occasional mistake, but they will never forget if you fail to communicate necessary information in the most challenging of times.

Following these three simple tactics can help you and your company establish and maintain a strong bank of trust that will safeguard your business when challenging moments arise. Customers and partners who are happy with a business are more likely to spread the word, making them your most valuable advocates and bolstering your reputation among key audiences. Perhaps most important, a bank of trust will be the attribute that helps your business maintain customer and partner loyalty when difficulties arise.

Above all else, one principle stands as the cornerstone of business success: There is no substitute for trust.

LESSONS LEARNED

As our industry continues its inevitable—yet agonizingly slow—journey toward becoming a mainstream player in the consumer packaged goods (CPG) sector, marketers in the industry can learn valuable lessons from their CPG counterparts. Today’s smartest marketing approaches this essential endeavor as though finalizing federal legalization were on tomorrow’s agenda. Here are three key CPG marketing lessons cannabis brands should be sure to learn.

Lesson one: Cannabis brands underutilize integrated marketing strategies due to federal restrictions and the morass of Federal Communications Commission, Food and Drug Administration, and Internal Revenue Service regulations. However, as the industry evolves, it’s crucial to develop cohesive campaigns that deliver one consistent message across multiple channels. Although cannabis companies may not be able to use some traditional advertising platforms, they still have access

to a significant number of owned, earned, and paid media channels right now—and I’m not seeing many brands take advantage of those platforms in a truly integrated fashion.

A personal anecdote that speaks to my point: I know through my own internet searching, Instagram scrolling, and news watching that the Utz snack brand is making a big push to gain potato chip customers in my home state of Colorado.

For whatever reason, Utz is targeting me across several channels with the same message—and sure enough, I love potato chips and it turns out I enjoy the brand’s products. And now here I am performing an unintentional echo strategy for Utz’s marketing campaign, telling everybody who reads this that the tasty chips from Pennsylvania are now widely available across the Denver metro area.

Lesson two: Unlike their colleagues in traditional industries, cannabis brands often fail to leverage

seasonal promotions and pricing. Walk into a dispensary in December, and the store generally will look the same as it did in June. The displays, daily deals, and marketing materials maintain a relatively consistent look year-round. Now think about walking into your local grocery store, gas station, or even a liquor store. You’ll encounter countless brands employing and leveraging the spirit of the season to create a deeper relationship with customers.

Season-specific packaging is a call to action in and of itself, especially when it employs the vibrant colors and spirit of the season, and I’m not just talking about 4/20. Some cannabis brands have done an outstanding job of creating meaningful holiday promotional moments, but most have a long way to go when it comes to taking advantage of this powerful marketing tool.

To create deeper connections with customers, brands and businesses have several options:

• Develop holiday-themed packaging designs.

• Launch seasonal product lines.

• Create festive in-store displays.

• Offer limited-time promotions tied to specific seasons or holidays

These types of tactics generate excitement, create a sense of urgency, and align the brand with cultural moments using the same methods traditional CPG consumables use.

Lesson three: Cannabis brands should devote more time to forging creative partnerships that will expand their audience. As disgusting as those limited-edition Oreo Coca-Cola cookies may look, the strategic

partnership is an outstanding example of two brands coming together to share their audiences and create a bold moment in the zeitgeist, something that “stops the scroll” and lights Adweek on fire while fueling watercooler conversation. In other words, the partnership precisely fulfills its goals. We rarely see cannabis brands coming together for similar initiatives, and they partner with non-cannabis brands to accomplish the same goal even more infrequently.

But partnerships are starting to happen in some interesting ways. (Full disclosure: My agency had a hand in both of these projects.) In celebration of National Queso Day, one spicy 2023 collaboration linked the Illegal Pete’s fast-casual restaurant chain with vape maker O.pen to create a queso vape with the UK Cheese strain. Similarly, Housing Works Cannabis Co. recognized the potential for cannabis to complement a workout regimen and partnered with hip, young, and LGBTQ+-owned fitness program SaltDrop. The program built on inclusivity and fighting the “lazy stoner” stereotype and became so successful that the partners extended their deal beyond the originally scheduled dates.

These types of partnerships demonstrate how two brands can come together to execute bold and courageous collaborations—memorable marketing moments that share their audiences and create lasting and profound connections with consumers.

Giving any or all of these strategies a try now will set up your company for even broader success when more marketing platforms become available after federal legalization becomes reality.

LEFT: AE GLOBAL'S MARKETING PARTNERSHIP WITH MJBIZCON. RIGHT: MAUI LABS’ SEASONAL FLAVOR. (PHOTOS: GRASSLANDS)

THE FUTURE OF B2B MARKETING

Let’s address the elephant in the room, shall we? Some people think business-to-business (B2B) marketing is dull and tedious. Compared to consumer marketing, you’re dealing with longer, more complex sales cycles, the target audience is more niche and has specialized needs, and customization and expertise are essential. B2B marketing also carries higher stakes, requiring your marketing strategy to address multiple decision-makers within prospective customer organizations.

But, approached the right way, B2B marketing can be fun and even exciting. Emerging technologies and methods present opportunities for ancillary businesses to tap into new strategies that may reduce the effort needed to reap the same rewards. From collaborating with artificial intelligence (AI) to streamline processes, using brand activation to help your business stand out, and investing in personal branding, there are creative, non-boring ways to get your B2B message across.

Despite being around for many years, artificial intelligence only recently made a big splash in the business world with the arrival of new applications like OpenAI’s ChatGPT, Microsoft’s Copilot, Google’s Gemini, and so on. AI already has delivered some interesting opportunities to the cannabis industry. Green Rush Consulting, based in Las Vegas, is perfecting technology to take on 70 percent of the complex work required for cannabis licensing. Massachusettsbased Bloom Automation Inc., an agri-tech company specializing in trimming equipment, released a suite of algorithms to visually analyze flower for faster, more accurate machine trimming.

Whether you choose to employ the technology to make your marketing processes more efficient or implement its use in other innovative ways, AI easily can play a role in growing your business efficiently. Understanding how to combine AI’s algorithmic insights with human expertise is the key to success.

Rather than replacing jobs, AI should be seen as a tool that enhances human capabilities, allowing teams to focus on creativity, strategy, and relationship-building. As AI-driven technologies evolve, keeping up to date about the technology’s latest trends is crucial for businesses that want to remain competitive and avoid falling behind in an increasingly tech-driven world.

As the marketplace becomes increasingly saturated, ancillary businesses are stuck in a sea of noise. Your clients are hearing the same overused promises of high quality, tailored solutions and expertise, leading to brand fatigue and a sense of disillusionment. The result is a significant plateau in engagement and loyalty. Brand activation can help. “Brand activation” refers to the strategic process of bringing a brand to life through interactions with your target audience. The goal is to enhance brand awareness, loyalty, and equity, going beyond traditional advertising tactics by encouraging direct participation and involvement from customers.

Whether it’s interactive experiences, hosting memorable events, or running unconventional campaigns, activating your brand can be enjoyable for everyone involved. Successful campaigns align with the brand’s values and messaging while resonating with the preferences and interests of the target group.

You can tap into brand activation without being physically present, such as through virtual tours, interactive product demos, webinars, and other immersive experiences. These activations go beyond just marketing buzzwords; they allow companies to “walk the walk,” showcasing real expertise and innovative thinking.

Ultimately, the future of B2B marketing requires finding opportunities to form stronger, lasting partnerships with prospects and current clients by creating memorable experiences that deepen professional relationships and elevate brand perception.

In today’s B2B marketing landscape, consumers and business partners prefer to connect with real people rather than faceless corporate profiles. While company pages serve their purpose, they often lack the personal touch that fosters trust and genuine relationships. That’s why we expect to see ancillary brands that push their employees out into the market as ambassadors race ahead. From on-the-ground staff to high-level executives, encourage your team to build personal brands. Not only is this beneficial for their individual careers, but it also helps keep your business top of mind among their network of contacts.

Employee advocacy not only drives brand visibility but also creates personal connections that resonate more deeply than traditional marketing efforts. When employees become brand ambassadors, they enhance the company’s credibility by offering relatable, trustworthy points of contact. Building direct, personal relationships with business partners strengthens business connections, and this authenticity can be much more effective than any corporate page or polished press release.

It’s no secret that those who move first have a better chance of staying ahead of the pack. Leveraging AI to enhance human decision-making, creating innovative brand activations, and investing in employee thought leadership will help drive long-term growth and credibility as we step into a new era of marketing.

Now is the time for businesses to evaluate how they can integrate these strategies to remain competitive and innovative. While we can’t predict every shift in the industry, we can stay ahead by recognizing and acting on the trends we see today, setting the stage for sustained success in an ever-changing landscape.

EMBARC USES HUMOR TO BRING ITS BRAND TO LIFE.

MARKETING PLANS THAT SCALE WITH YOUR BUSINESS

Over the seven years since it was launched, Massachusetts-based marketing agency

Cannabis Creative Group has grown into a trusted industry partner, offering tailored services that help brands connect with both consumers and other businesses. A specialized division of Champ Digital, the agency is backed by a fifty-person team with sixteen years’ experience across diverse industries including food and beverage, tourism, retail, and e-commerce.

“Coming from a background in traditional marketing for restaurants, food and beverage, and travel and tourism, we realized a lot of the campaigns are similar for cannabis,” said Vice President of Sales and Marketing Dan Serard.

“We’ve been able to take the restaurant industry search techniques, combine them with food-and-

beverage consumer packaged goods branding, creative, and social media, and then apply the result to the cannabis industry.”

Launching dispensaries and brands

One of Cannabis Creative Group’s flagship offerings is its Dispensary and Brand Launch Program: a brand-identity and website package designed to help new operators establish their presence in the market.

“For dispensaries, we focus on [search engine optimization] techniques to get the company off the ground and running,” Serard said. “And for brands, the package focuses on a social media launch instead. We walk each brand through setting up their social media and also provide them with three months of content for them to study, analyze,

and continue on their own. The impact for brands is larger on social channels than search.”

The team is adamant about customization.

“That comes from our background in traditional business,” Serard said. “If we build a website for one dispensary location, in two years that company might have a cultivation operation or three new locations, and if you build in a theme or template, it’s more difficult to scale. We call it ‘starting with the end in mind.’”

Fostering growth after launch

Focused on both customer acquisition and retention, Cannabis Creative’s Dispensary Boost Program uses paid and organic search and loyalty management to attract new customers while keeping existing ones engaged.

“We accomplish this by creating custom dashboards for every client, pulling in all the analytics and putting them into a live link so the client can go in and quickly understand how much money they’ve made from our services,” Serard

said. “If you’re not making enough money, the first thing you tend to cut is marketing. But if you invest money on marketing attributed to sales growth and we can concretely show growth, that’s where we see companies we work with reach a lot of success.”

Looking ahead: AI and innovation

As the industry continues to grow and evolve, so does Cannabis Creative Group. The company currently is exploring ways to integrate artificial intelligence (AI) into its marketing strategies. The team is dedicated to exploring new technologies, including AI for data analysis and content creation ideas as well as implementing new native e-commerce solutions that boost SEO.

With more states adding adult-use legalization every year, Cannabis Creative Group is determined to continue helping businesses grow and succeed by delivering the kind of forward-thinking, innovative solutions that are crucial in a highly regulated, highly competitive industry.

CLEVER Campaigns

Creative retooling of classic marketing strategies delivered rewards for these brands.

Some marketing techniques stand the test of time. The best ones often are uncomplicated, sustainable over a long period, and deliver a hefty return on investment. Those factors are especially important when economic conditions are in flux, as they are now, or when market forces outside an industry’s control exert internal pressure. One of the key strengths of classic techniques is their ability to create a tangible connection with the audience. Strategies like brand partnerships, limited-edition or seasonal products, and multiplatform promotions are effective because they tap into universal consumer motivations—exclusivity, novelty, and the desire for shared experiences. When these traditional

approaches are reimagined in contemporary ways, they can generate excitement and engagement among targeted groups.

Collaborations and partnerships can be elevated by aligning with emerging trends and tapping into niche communities. Today’s brands have loads of options for strengthening brand visibility with highly engaged audiences, including partnering with influencers, gaming platforms, and virtual creators. Partnerships also can blur the lines between industries, helping each attract new customers from the other.

Limited-edition products fuel a sense of urgency and exclusivity, motivating consumers to act quickly. This tactic becomes even more impactful in the digital age when pre-launch campaigns, countdown

timers, and social media teasers are employed. In addition, the rise of online shopping has introduced new dynamics like “drops,” where brands release limited-quantity items at specific times to create buzz.

Multiplatform promotions, once synonymous with print, television, and radio, now thrive in a digital ecosystem that spans social media, streaming services, podcasts, live events, and more. By synchronizing messages across platforms, brands can create seamless, immersive, and memorable campaigns.

The eleven brands on the following pages reinterpreted classic strategies with modern, industryspecific panache, retaining the essence of what makes the tactics effective while enhancing their relevance in a unique market.

A product for all seasons

Brands can increase holiday sales by offering themed and limited-edition merchandise that coordinates with the festive season. Subscription service Hemper is a master of that craft, packing its monthly goody boxes with seasonally themed products that bring characters and celebrations to life. During 2024, themed boxes included gummybear bongs for Valentine’s Day in February, beachy van bongs for summer, and sugar-skull-inspired bongs for Dia de los Muertos during the Halloween season.

The tactic has been “supersuccessful,” according to a marketing team member. Each release is preceded by a marketing campaign that leverages email and limited digital advertising featuring unexpected product imagery that encourages viewers to take another look.

Amplifying the message

Nature’s Heritage, MariMed’s flower and concentrate brand, often taps a universal love of music to build relationships with consumers. The brand’s most recent campaign, Amplify Your Experience, is an ongoing brandbuilding exercise that recruits local solo artists and bands for commercials, live concerts, and digital performances meant to promote the company’s vapes. Inspired by Nature’s Heritage’s new partnership with two iconic Boston entertainment venues— MGM Music Hall Fenway and Citizens House of Blues Boston— Amplify Your Experience is just one element of a fully integrated marketing push that also includes billboards, entertainment venue signage, live activations, and digital advertising.

“Music has served as a pillar to our Nature’s Heritage marketing efforts for the past two years,” said Brand Director Tami Kirlis.

“Amplify Your Experience celebrates the deep relationship of music and the plant while also supporting local artists.”

Creative collaborations

Colorado edibles brand Dialed In Gummies uses several smart marketing tactics to attract and retain customers, including standout packaging and sending top brass to hobnob with consumers at local events. But the company’s most successful campaigns have featured limited-edition products and collaborations. Since launching in 2020, Dialed In has executed 2,600 batch-partnerships and special editions. None required much more promotion than announcements on social media and other digital channels. Sales have been brisk. This year, “Fire Water Batch #106” in collaboration with 710 Labs, and “Zambony,” which honored the Colorado Avalanche’s ice-hockey championship win, sold out in four weeks. Similarly, "Champions," a batch released in conjunction with the Denver Nuggets’ championship, disappeared in only three weeks. “Swirl,” inspired by electronic music producer Pretty Lights’ song of the same name, cleared the shelves in less than five weeks. And the ultra-limited Lazercat Cannabis “four-productsin-one-box” collab astounded retailers, vanishing within twentyfour hours.

Influencing the influencers

When a company stakes its reputation primarily on the flavor and creative form factors of its edibles, National Dessert Day is a natural fit for a special promotion, right? Gelato thought so. As part of a campaign to spread the word about its hard-candy products, the company distributed gift baskets wrapped in its signature neon-bright colors to a network of young, energetic influencers with enviable fan-base numbers. The baskets were a hit, increasing Gelato’s exposure among the company’s target market.

The company kept the campaign’s cost in check by targeting influencers in the Los Angeles area, where it operates a single store and could deliver the baskets without undue complexity. But social media isn’t geographically limited, allowing a relatively small investment to benefit the brand’s hundreds of retail partners across California and Michigan. With hundreds of national and international “themed days” recognizing everything from the sublime (4/20) to the ridiculous (National Nothing Day is January 16), social media offers a wealth of possibilities.

Let’s talk

Alien Labs founder Ted Lidie engaged in a bit of tongue-incheek name appropriation when he embarked on a California-wide tour to meet face to face with budtenders, vendors, and local residents in what the company calls “Ted Talks.” The continuing series of events brings together communities, Alien Labs fans, Lidie, and other industry leaders and influencers for unfiltered conversations about the plant. Participation by pop-culture icons including critically acclaimed DJ and music producer The Alchemist and YouTube phenom 5fulcrum add star power and increase the draw, requiring RSVPs in advance for some sessions.

To expand the reach of the campaign, Alien Labs records each Ted Talk and broadcasts them all on the company’s YouTube channel, AlienLabs TV. New episodes debut monthly.

Make America Gassy Again

The public is notoriously fickle, making political polling—a mainstay of presidential politics since Gallup rendered its first guestimate in 1936—an iffy proposition. Since 2016, voters have learned to distrust poll results, and many tune them out entirely. Curaleaf devised a way to reinsert a modicum of fun into the process with its Toke the Vote campaign, which allowed consumers in three of 2024’s key states to vote with their wallets.

The nonpartisan initiative pitted three hybrid strains—Kamala Kush, Donald OG, and Space Jill— against one another in bud-to-bud competition. Curaleaf dispensaries in Arizona, Florida, and Illinois provided weekly updates about the candidates’ standing, which kept consumers engaged and returning to “vote” for their candidate. In the end, the ad-hoc poll proved more accurate than any of the traditional prognostications: Donald OG sold out first and was declared the winner.

The silly season

Journalists call election years “the silly season,” because so much of campaign rhetoric is off the rails, no matter who’s running. Embarc took that notion to extremes with Potlitico, “America’s highest news source.” Employing satire in the grand tradition of The Onion, the site added humor to chaos with weed-infused, politics-adjacent non-news about politics, culture, and entertainment. One headline blares “Harris and Trump Clash in Fiery Debate over Sungrown vs. Indoor Cannabis.” Another gives sarcastic props to a dispensary for winning a prestigious award because it paid its bills on time. (Ouch.) Embarc advertising is, of course, sprinkled throughout the website. Because even the ads are humorous, though, the overall tone of the site remains consistent and “sticky.” Consumers can’t resist reading just one more chuckler. The company’s larger marketing presence incorporated Potlitico’s red-white-and-blue collateral. The company explained its rationale for the campaign simply: “It doesn’t matter what side you’re on. After this one, we’ll all need to get high.”

Cultural affinity

Collaborators in different industries can boost each other when the partners’ cultures match, as Housing Works Cannabis Co. (HWCC) and Think Coffee NYC demonstrated in April. Both organizations are deeply embedded in their New York City communities and both have distinct identities and missions that fall in the “ethical society” bucket, but their consumer bases overlap only modestly. During the campaign, Think Coffee’s eleven locations featured a new, ethically sourced beverage, “Matcha with the Works”; $1 from each purchase supported HWCC’s parent organization’s mission of providing housing and health services to New Yorkers in need. Each purchase introduced civic-minded consumers to a new concept: a dispensary operated by a nonprofit benefiting the unhoused in their community. At the same time, HWCC helped Think Coffee expand its market reach by hosting a Think Coffee cart offering dispensary visitors a free cup of “Think Coffee with the Works” java. Consumers also could purchase the custom blend for brewing at home.

Supersize me

Rap artist Berner and his Cookies brand need no introduction in industry circles, and The Freak Brothers, which has been an icon of stoner culture since 1968, enjoys a sizable cult following. Cookies’ collaborative campaign with the underground-comicturned-animated-series—initially intended to encompass a single joint drop—proved so popular that it became an entire product line, a clothing capsule, and a role in the series for Berner. The ongoing campaign embodies the very definition of multiplatform success, even subtly boosting brand recognition for Cookies on a streaming television platform.

The original product, Cookies x Freaks LSD Joint, was “the firstever official cannabis product for The Freak Brothers, so we wanted to lean into the cool, trippy Bay Area heritage shared by both brands while producing a product the Freaks themselves would have loved to spark up,” said Greg Goldner, head of brand and strategy for FFB Media LLC, the company behind The Freak Brothers. Sales for both brands sparked up, too.

Jacks or better

Many cultivators engage in phenohunting in hopes of finding their next superstar strain. Connected Cannabis engaged dispensary customers in the process with a clever play on names and games. The Jack Box campaign consisted of a limited release of four Jack Herer hybrid buds packaged to resemble a deck of playing cards. Each “Jack” was assigned a suit—diamonds, spades, clubs, and hearts—and consumers were asked to pick their favorite from the deck after trying all four. Jack Herer x Biscotti, the jack of diamonds, came out on top, and the company adopted Jack of Diamonds as the strain’s name. Connected has used a similar method in the past and found it not only rewards frequent customers with something extraspecial but also satisfies fans’ desire to be part of their favorite brands’ process.

Legendary appeal

Celebrity appearances are nothing new—and, sadly, neither are the outreach campaigns that get consumers into the store to meet their icons. A local newspaper blitz, social media mentions, maybe a poster in the store… Lather, rinse, repeat.

But when Deep Roots Harvest and Maverick Public Relations partnered to get the word out about Ric Flair’s Father’s Day fan meet-and-greet, promoting the right person at the right time in a place where professional wrestling remains ultra-popular caused a consumer crush that nearly overwhelmed the man many have called “the greatest of all time.” The partners’ multiplatform strategy focused heavily on social media, where engagement skyrocketed by 660 percent during the campaign period. Even better from the dispensary’s perspective: Sales of Ric Flair-branded merchandise experienced what Deep Roots characterized as “a significant uptick.”

TOP PR AND MARKETING AGENCIES

When communicating with the public and the media, the right representative can make all the difference.

Public relations (PR) and marketing are related but distinctly separate activities. Understanding how these public-facing initiatives naturally converge, overlap, and complement each other is critical in shaping public perception and driving business growth. When new business owners or even experienced stakeholders confuse these strategic actions and fail to leverage the strengths of both properly, they set themselves up for inefficient resource allocation, misaligned goals, and poor results.

PR focuses on managing a brand’s reputation and building a positive public image. The best PR professionals are adept at maintaining honest relationships with relevant media members, company stakeholders, and the public through press releases, events, and other strategic communications.

In contrast, marketing centers on promoting products or services to a target audience. The best marketing professionals know how to analyze consumer behavior, market trends, and competitive landscapes, then use that information to craft compelling messaging and other content that resonates with potential customers. Marketing efforts include advertising campaigns, content marketing, social media campaigns, and promotional initiatives aimed at increasing sales, building brand awareness, and boosting customer engagement.

While PR and marketing share the common goal of promoting brands, they differ in several key ways. PR primarily is concerned with cultivating a long-term positive reputation and fostering trust among audiences. It seeks to enhance a brand’s image and credibility over time. Marketing goals focus on driving immediate actions, such as generating leads, increasing sales, and achieving measurable business results through short-term campaigns with long-term goals.

In addition, PR aims to engage a broad range of audiences, including the general public, media outlets, industry influencers, and even internal stakeholders. The goal is to shape a positive image of the brand across diverse groups. Marketing efforts are more precise, using marketing

campaigns to target specific customer segments based on market research.

The methods used by each discipline differ, as well. PR leverages tactics including media relations, press releases, and public events to build long-lasting credibility and maintain a positive public image. Professionals use these strategies to secure earned media coverage and cultivate relationships with the media, influencers, and the general public. In contrast, marketing takes a more direct approach, focusing on reaching targeted audiences directly through paid media, social media strategies, and digital initiatives. These methods should attract attention, generate interest, and ultimately drive consumer actions like purchasing or engaging with the brand.

Knowing when to use PR versus marketing can make a significant impact on your business. Use PR when you need to manage a crisis, launch a new initiative, or build long-term brand credibility. Lean on the marketing team when you want to increase sales, promote a product launch, or engage with customers through targeted multimedia campaigns.

Once you determine your needs, whether it’s PR strategy, digital advertising, or social media marketing, seek out specialized professionals with proven experience in cannabis to ensure the best results. The right experience may be even more important on the PR side, where existing media relationships can pay dividends.

AGENCIES WITH CANNABIS CREDENTIALS

For businesses in need of expert assistance with advertising, PR campaigns, or comprehensive marketing strategies, the following firms offer specialized services tailored to the unique needs of the industry.

01.

5W Public Relations

5WPR is a full-service public relations agency that partners with emerging and established brands to help them define and achieve their strategic goals. The agency leverages media relations, influencer partnerships, and creative marketing.

Avaans Media

A boutique agency that serves clients in emerging industries, Avaans Media specializes in providing bespoke public relations strategies for growthstage brands. The team has significant experience with and contacts in trade and mainstream press.

Chapter 2 Agency

New York-based Chapter 2 works to craft PR narratives like chapters in a book to form a cohesive and compelling brand story. The company believes in diversity and representation within the industry and hires based on the culture it serves.

Cannabis Creative Group

Cannabis Creative Group emphasizes its clients’ short- and long-term goals with the “end in mind.” The team specializes in social media, search engine optimization for local shopping, e-commerce optimization, and Google search advertising.

DPA Communications

Offering public relations and marketing strategies designed to get audience attention, DPA Communications focuses on securing media coverage and strategic alliances. The agency specializes in longterm marketing strategies to drive growth.

07.

Durée & Company

A full-service public relations and marketing firm headquartered in Florida, Durée & Company works with publicly traded brands including Cresco Labs and Veritas Farms. The team takes a storytelling approach to image management and attention generation.

Grasslands

Grasslands takes a journalisminspired approach to PR. Founded by former The Denver Post cannabis editor Ricardo Baca, the agency aims to create lasting, forwardthinking collaborations with the working press.

Green Lane Communication

Built to serve as an extension of a brand’s marketing and communications team, Green Lane Communication can help train stakeholders to speak to the press, secure valuable media opportunities, and submit clients and products for industry awards.

GVM Communications

A woman-owned agency, GVM Communications specializes in internal and external communication strategies. The agency focuses on helping cannabis clients find the messaging that perfectly expresses their ideas.

Inov8 Communications

Innov8 is a boutique firm with experience representing major brands including Toyota, IBM, AT&T, Nestle, and Disney. The company provides public relations support, content development assistance, and advisory services.

CANNABIS PR & MARKETING WATCH

“A brand can never be too trusted.”

How can cannabis companies build lasting customer loyalty in an oversaturated market?

Imagine running a cannabis company with loyal customers and boundless trust. Can a brand ever have too much of either? No matter if you're a B2C or B2B cannabis brand, a brand can never be too trusted.

A great starting point for increased loyalty and trust is using paid content, media coverage, and owned content together. Ask yourself, “how can media serve my customers?” Cannabis companies need to meet their customers where they’re at and show they understand them. Additionally, every cannabis company should have a solid media crisis plan in place to safeguard against costly financial setbacks. We’ve been able to turn a crisis around and make it an opportunity for some of our clients; that's definitely a brand power move.

With the potential elimination of 280E, cannabis companies may soon experience a wave of new capital. Now is the time to invest in brand strength, positioning your company for measurable growth in a more competitive marketplace.

We have great free resources, breaking news, and more on our cannabis page: https://bit.ly/MGMagDec24

Jaana Prall

Jaana Prall specializes in personalized, boutique PR services for companies in international markets. She provides interview management, events, and speaking engagements in real-time with 24/7 on-call service for reporters worldwide.

KCSA Strategic Communications

KCSA blends public relations, social media, and investor relations to tell a comprehensive brand story. The firm's expertise lies in connecting brands with investors and creating a balanced communication strategy for growth.

Mattio Communications

Founder Rosie Mattio transitioned from food and tech PR to cannabis, breaking ground with mainstream media coverage in outlets like Forbes. Her New York-based agency focuses on educating media through hands-on experiences with products.

Marino PR

Marino specializes in PR, public affairs, and creative campaigns for paid media, social media, and other digital services. Clients include everything from women-led cannabis brands to airport terminals and the New York University Tandon School of Engineering.

Maverick Public Relations

Founder Shawna Seldon McGregor pivoted from big mainstream companies to cannabis after Colorado passed adult-use legislation in 2012. She and her team are experts at educating consumers and the media as well as helping brands shape their narratives.

NisonCo

NisonCo began as an advocacy-driven PR firm and organically grew through referrals based on media connections. The agency specializes in public relations and search engine optimization for emerging industries.

PufCreativ

PufCreativ emphasizes equity, social justice, and sustainable practices in its approach to the industry. The agency’s passion for client success comes from long-term partnerships, supporting businesses with a complete set of creative services.

Proven Media

Woman-owned and -staffed, Proven Media is a strategic marketing communications agency. Since 2014, the fullservice firm’s story-driven approach and media placements have helped amplify brands in the cannabis, lifestyle, and tech industries.

20.

Pulp + Wire

Based in Maine, Pulp + Wire is a woman-owned branding agency specializing in natural and organic lifestyle brands. The team takes pride in trend forecasting and creating future-proof brand identities.

Kip Morrison & Associates

With more than thirty years of experience, Kip Morrison’s PR firm has deep connections in both entertainment and cannabis. The team provides global insight into industry development, maintaining strong ties in national and international markets including Israel and Spain.

Red Antler

Red Antler helps emerging businesses build strong brand identities, working with both startups and cannabis companies to achieve rapid recognition. The agency helped Casper and Allbirds become household names.

Rosen Group

With a background in Washington, D.C., image management, Rosen Group brought its policy-driven approach to cannabis PR as adult-use legalization took off. The agency has significant experience working with policy-driven and highly regulated industries.

Rio PR

Based in Brooklyn, New York, Rio PR’s client list mixes high fashion with cannabis and technology. The image-conscious agency focuses on building brand awareness, generating buzz, and positively impacting its clients’ sales objectives.

Trailblaze PR

Known for helping companies in emerging industries build trust and credibility, Trailblaze PR helps clients stand out in a crowded market by spotlighting their unique value propositions.

The 9th Block

The 9th Block is a boutique PR, branding, and digitalmarketing agency with decades of experience in highly regulated industries. The firm’s client list touches nearly all aspects of cannabis, including manufacturing, software, retail, and finance.

Upraise PR

Upraise is a full-service PR and marketing agency with multinational clients including Amazon, Microsoft, and Pixar. The San Francisco-based agency helps cannabis brands like BDSA stay on top of industry trends, developments, and the opening of new markets.

27.

Wick & Mortar

Offering end-to-end branding and strategy services, Wick & Mortar is a full-service agency providing branding, copywriting, packaging design, packaging production, strategy, and website design.

28.

Zoe Wilder

A public relations strategist specializing in lifestyle, culture, and wellness, Zoe Wilder represents A-list celebrities, New York Times bestsellers, and cannabis brands. Her team crafts and executes promotional content and campaigns designed to captivate global tastemakers and influencers.

CORRECTING MISSED OPPORTUNITIES

Social equity can be a powerful tool for righting wrongs caused by the war on drugs, but state regulators and financial institutions must do more to support licensees.
BY MUNZER SUKHUN

The rapid growth of the cannabis industry has been accompanied by a pressing need to address the historical injustices of federal prohibition and provide opportunities and assistance for individuals and communities disproportionately affected by the war on drugs. However, many state programs have largely fallen short of their goals due to a variety of challenges—financial, operational, and legal—faced by equity applicants and licensees.

In the years since the first social equity programs launched in 2020, the shortcomings have been

obvious. There are plenty of implementation issues to address, but there are also solutions that start with financial institutions.

Social equity policy initiatives aim to rectify the impacts of cannabis prohibition that hit marginalized communities especially hard, particularly Black, Latin American, and indigenous populations. Despite the good intentions behind the programs, these groups currently hold only about 5 percent of cannabis licenses nationwide. That’s quite a gap between lofty goals and stark reality.

Photo: Marek S tudzinski / Unsplash

Journey through the extensive photography archive of mg Magazine with this unique collection of images, each telling a story of resilience and ambition.

Moments: Chronicles of Success celebrates the sacrifice, dedication, and perseverance of the individuals who have shaped today’s cannabis industry, offering inspiration for generations to come.

Equity provisions in state laws typically include reserving a pool of licenses for social equity applicants and establishing criteria based on prior nonviolent cannabis convictions, residency in impacted areas, and other similar factors. Illinois, for example, made history in 2020 by prioritizing social equity in its licensing program and requiring applicants to meet specific criteria related to residency, ownership, and impact from the war on drugs. However, while Illinois has seen some success, many other state programs are struggling due to licensing lawsuits and competition from the illicit market.

Sadly, several challenges have hindered the success of social equity initiatives. Lack of access to capital and financial resources remains a significant obstacle. Due to federal restrictions on financial institutions working with businesses selling a Schedule I substance, operators face unique hurdles when attempting to secure funding and business banking services. The problem is exacerbated for social equity licensees, who often lack the financial networks, business experience, and other resources that are available to more established members of the industry.

Large multistate operators (MSOs) also have exploited some equity programs by partnering with social equity applicants to access licenses, raising concerns about true ownership and actual engagement by the social equity license holders. In Arizona, for example, cases have been documented where social equity licensees who technically owned 51 percent of the business were not involved in business operations.

Lack of business education and support for social equity licensees is another critical challenge. Applicants may rejoice in securing a license, but then they struggle when faced with the day-to-day complexities of running a business in such a highly regulated and fluid sector. A significant need remains for resources and education for operational aspects like business plan development, marketing strategies, and regulatory compliance.

In order to address the social equity challenges properly and accomplish effective change, some steps can be taken.

Financial institutions can and should work with regulators to create specialized programs for social equity license holders. In addition, offering reduced application fees and waiving minimum balances would help alleviate some of the capital constraints

faced by these entrepreneurs, at the same time increasing financial institution portfolios.

State programs must provide comprehensive business training and equip social equity founders with the skills needed to succeed. Ongoing support and resources are crucial for long-term success. For example, New York lawmakers are pushing for a $100-million fund to provide zero-percent or low-interest loans, along with job training, for Conditional Adult Use Retail Dispensary applicants.

Increased scrutiny by state regulatory agencies can prevent exploitation by MSOs. This includes monitoring and enforcing rules to ensure 51-percent owners are actively involved in the business.

Dedicating cannabis tax revenue to community reinvestment in areas with disproportionate arrest rates can be a powerful form of redress. And while many states have implemented programs to clear cannabis-related criminal records, these efforts could be expanded to include all low-level drug possession records and provide broader relief to affected communities and individuals, whether or not they seek a career in cannabis.

Some states have shown promising progress in their social equity efforts. For example, the Illinois Direct Forgivable Loan Program, launched in 2022, provides immediate access to capital for conditionally approved social equity loan applicants. Loans from $50,000 to $500,000 are available with the potential for forgiveness. According to a recently released independent study by the Nerevu Group, 59 percent of Illinois dispensary licenses were issued to minority- or women-owned businesses, and minority- or womenowned businesses hold 63 percent of craft grower, 61 percent of infuser, and 74 percent of transporter licenses. The study also found nearly 84 percent of the state’s direct forgivable loans went to minority- or women-owned businesses.

The cannabis industry and regulators must go beyond mere lip service to address historical injustices and create a more equitable future. It’s critical for all stakeholders—established businesses, emergingmarket regulators, and policymakers—to recognize the importance of the efforts and work together to ensure the industry evolves in a manner that reflects the diversity of our communities and provides real opportunities for those affected by prohibition.

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