Program aims to increase diversity in cannabis industry

By Tony DoBrowolski

GREAT BARRINGTON — A Berkshire cannabis company has recently formed a social equity program to provide emerging entrepreneurs from economically disadvantaged backgrounds with the capital they need to enter the business.

Theory Wellness, which operates a cannabis facility in Great Barrington, undertook the initiative to satisfy a requirement from the Massachusetts Cannabis Control Commission that companies set up a positive impact plan in order to receive a license from the state. The CCC regulates the cannabis industry in Massachusetts.

“When you’re applying for a license you basically have to say what are you going to do to give back to the community,” said Tom Winstanley, Theory Wellness’ Chief Marketing Officer. “So this was something that we proposed and it satisfies part of the CCC requirement.”

Under the terms of its program, Theory Wellness will provide up to $250,000 in start-up costs and inventory for those who meet the social equity program’s criteria. The program’s first recipient, Legal Greens of Brockton, which opened in March 2021, received $100,000 in zero-interest financing and $150,000 worth of startup cannabis inventory on consign- ment from Theory Wellness’ social equity program.

The CCC operates its own social equity program. Theory Wellness’ program is not based on the state’s initiative, but Winstanley said the eligibility for Theory’s program is based on a designation set up by the state. The CCC certifies the status of social equity or economic empowerment to those disproportionately impacted by high rates of arrest and incarceration for cannabis-related crimes due to previous state and federal drug polices.

“The state isn’t giving them the funding to open or guidance,” Winstanley said. “We’re basically saying, okay the state has given you this designation and we’re going to take it a step further by supporting you in every way possible.

“I would think of it more as an investment,” Winstanley said, when asked why a privately-held company like Theory Wellness would be motivated to give money away.

“I think people might be making the argument of why are you breaking a mold in order to help a competitor in the marketplace,” he said. “But at the end of the day, if you look at the lack of diversity and inclusion in the licensing structure in Massachusetts, we’re really investing