FALL 2018
The Central Coast’s newest source for all things Cannabis
Celebrating 7 Years of Providing Premium, Locally Grown Cannabis to our Community! 9077 Soquel Drive, Aptos CA
SantaCruzNaturals.org 8 3 1 . 6 8 8 . 7 2 6 6
Santa Cruz County’s Only Certified Clean Green Dispensary 2
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EDITORIAL
Erik Chalhoub, Editor 831.761.7353 echalhoub@register-pajaronian.com Brian Williams, Editor 805.466.2585 ext 113 bwilliams@atascaderonews.com Ryan Cronk, Editor 831.385.4880 rcronk@southcountynewspapers.com
PRODUCTION Rob Chalhoub rchalhoub@register-pajaronian.com Mike Lyon mlyon@register-pajaronian.com
ADVERTISING & MARKETING SANTA CLARA & SANTA CRUZ COUNTIES Tina Chavez, Marketing Director 831.761.7359 tchavez@register-pajaronian.com Jazmine Ancira, Marketing Associate 831.761.7326 jancira@register-pajaronian.com
MONTEREY COUNTY Sheryl Bailey, Marketing Associate 831.385.4880 sbailey@southcountynewspapers.com
SAN LUIS OBISPO, SANTA BARBARA, VENTURA COUNTIES Sheri Potruch, Marketing Associate 805.237.6060 ext 123 spotruch@pasoropblespress.com Adriana Novack, Marketing Associate 805.466.2585 ext 115 anovack@atascaderonews.com
INSIDE Los Osos farm ~ page 4 ~
Santa Cruz Naturals ~ page 6 ~
SC County supervisors approve cannabis measures ~ page 8 ~
Cannabis Fast Stats ~ page 9 ~
Grover Beach’s ‘cannabis district’ ~ page 10 ~
Marijuana terms from A to Z ~ page 12 ~
Advertising in the marijuana industry ~ page 14 ~
Cannabis licensing manager steps down ~ page 15 ~
Chronicle is a free publication distributed quartely published by News Media Corporation in conjunction with the Register-Pajaronian, South County Newspapers, Paso Robles Press and Atascadero News. Questions about this product? Contact Jeanie Johnson, 831.761.7307
Fall 2018 •
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Contributed Photo
Megan Souza, Eric Powers and Smokey the cat at their cannabis farm in Los Osos.
Market aspires to improve health of the community By RUTH ANN ANGUS
LOS OSOS — Megan Souza and her partner Eric Powers thought a market offering organic produce would be a great business. So, they began Megan’s Organic Market thinking they might set up on the coast. But after doing some research, they realized an organic produce market probably would not be financially feasible for them. Since they already had the business name, they turned to a different crop — cannabis. With medical marijuana legal, the couple set about planting
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a crop in native Los Osos soil high atop Clark Valley. The native clay-loam soil and bountiful well water contribute to a high-quality product. Powers is the farmer in the business while Souza and her staff of women run the delivery business. “Right now, we are solely a delivery business and we deliver throughout the county,” Souza said, “but we have applied for a permit to open a retail shop.” Medical use of cannabis requires a doctor’s prescription and clients obtain them from their family doctors or they can apply online. The online program takes a patient through a variety of health
questions that can define both the reason for the request and the applicant’s current health situation. Then a group of doctors reviews the request which can take more than a day. If there are any questions the applicant would receive a call from the doctor reviewing the case. Once a verification is received via email, the client can call Megan’s Organic Market to schedule a delivery. “Our mission is to improve the health of our community by providing safe and reliable access to quality organic medical cannabis,” Souza said. What is rare about this business
is the fact that they grow their own product and prepare it. Most delivery services and store fronts buy from a variety of growers that use numerous methods of cultivation “We don’t use pesticides or petroleum derived fertilizers,” Souza said. “We use only Organic Materials Review Institute (OMRI) certified pest control and disease management products and fertilizers. Megan’s Organic Market is the only service provider in San Luis Obispo County that offers organic cannabis that is verified by SC Labs.” Why does someone turn to medical marijuana? Most clients
rely on it for pain control. Souza’s clients are primarily older people, especially women, who suffer from chronic pain. The use of cannabis rather than opiates has cut down on the opioid addiction problem. Another use is for battling depression and many veterans use it to deal with Post Traumatic Stress Disorder (PTSD). Legally medical marijuana can only be smoked or ingested on private property. It also should not be used inside a vehicle. Basically, clients should follow the same laws that apply to alcohol and keep the product in a sealed container while in a vehicle. Megan’s Market advises waiting 12 hours after consuming cannabis before driving. There are other regulations and you can find these on their website at www. megansorganicmarket.com. There are two types of product: CBD, which is non-psychoactive, and THC, which is psychoactive. CBD is used to reduce inflammation, regulate sleep, reduce anxiety
and treat PTSD. THC is used to treat chronic pain, induce sleep, inspire creativity and improve sex. Souza said that a person can take one or the other or a combination. Doses are up to 10 milligrams, but Souza advises clients to start slowly even as low as 2 mg to find out how they respond to the dose. Both Souza and Powers are dedicated and involved in community actions. They clean up a section of Highway 1 and attend Neighborhood Watch in their area. They have paired with SLOTalkBroadcasting and produce a podcast entitled “Fresh Harvest” that provides information, stories and insights about cannabis. Plans are to get the retail business going in Morro Bay and then proceed to open markets in other towns. The first on the list will be at the SLO Open Market Project going in on Higuera and Tank Farm Road. People interested in learning more or obtaining medical marijuana can call (805) 235-6678.
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Louisa Disheroon, dispensary manger of Santa Cruz Naturals, and her husband, Colin, owner and founder, are shown at their Aptos location on Soquel Drive.
From grassroots to brick-and-mortar New Pajaro location slated for successful cannabis dispensary By TODD GUILD | Photos by TARMO HANNULA
APTOS — Long before recreational marijuana was legalized in California, Santa Cruz Naturals got its start in 2009 in Boulder Creek. Then, it was a small friends-and-family collective dedicated to providing legal medical cannabis to sick friends and neighbors. Soon after that, owner and founder Colin Disheroon found the building that would
Cannabis Infused Fruit Jellies (left) and Karmamelts, cannabis infused caramels, are a fraction of the various cannabis-based products at Santa Cruz Naturals in Aptos.
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become the business’ Aptos headquarters. In 2010, California voters narrowly rejected Proposition 19, which would have legalized the plant for recreational use. Industry insiders did not see the defeat as a failure, but a harbinger of things to come. Buoyed by the near victory, and seeing a cultural shift in public perception of the once vilified plant, Disheroon waited, certain the issue would came back to voters. It did in November 2016 in the form of Proposition 64, which was approved by more than 57 percent of voters. “There was a new wave of energy going into this plant that was once prohibited, and was responsible for the incarceration of so many people,” he said. “Lives destroyed, families destroyed because of bad policies, and I saw the policies changing.” Now, adults 21 and over — and anyone 18 and older with a prescription — can walk into dispensaries across California and choose from several strains of marijuana and cannabisrelated products such as tinctures, oils and food products. “It was a significant change, and it was a change that we saw on the horizon,” Disheroon said. With the success of its flagship dispensary,
Santa Cruz Naturals plans to open a second location in Pajaro, with an expected opening date in October. Disheroon said he plans to hire about 25 people for the new shop, and is currently looking for bilingual employees. The location, he said, will serve a community that does not currently have easy access to cannabis, and whose residents regularly make the trip north to his Aptos dispensary. He also hopes to offer pricing with the low-income community in mind. Disheroon said he also sees philanthropic opportunities for his business in the Pajaro location. “That’s the goal,” he said. “To embrace the whole community.” •••
A green philosophy
Still family owned and operated, Santa Cruz Naturals uses local growers as much as possible, and uses biodegradable packaging in its products. The business also tries to keep their cannabis as pure as possible. Because cannabis is not legal under federal law, it cannot be officially labeled as organic by the USDA, which makes such designations.
Marijuana starter plants are part of the retail inventory at Santa Cruz Naturals.
So the industry instead uses Clean Green Certification, a California-based organization that uses the same strict standards the federal government uses for organic produce, Disheroon said. The redwood countertops, cabinets and surfboard-marijuana leaf logo were made from reclaimed wood, as is the pine flooring. “A big part of our goal is to reduce our environmental impact,” he said. •••
What to expect
of the several different marijuana strains and products, depending on whether the customers want a sleep aid, a way to ease anxiety or a more “cerebral” experience. The business even has a customer loyalty program. “We have a personal experience for our clients,” she said. “We’re here to answer questions for them. We’re here to give them guidance as to what products are going to serve them the best.” •••
Dispensary Manager Louisa Disheroon — Colin’s wife — said that Santa Cruz Naturals customers can expect a “boutique” experience when they enter the showroom. Indeed, several surprisingly well-informed “budtenders” stand ready to extol the properties
Now that the laws have changed, however, marijuana retailers have a new worry: corporate industries edging out small-scale growers in a bid for a piece of the budding cannabis industry. It is currently unclear how or when that
Looking to the future
will happen, but according to Disheroon, a large Canadian company recently purchased a dispensary in Santa Cruz. Disheroon said he is optimistic about the future of his industry, despite the misgivings federal officials such as U.S. Attorney General Jeff Sessions about state laws supersede the federal prohibition on marijuana. “I see policies changing at the federal level maybe in the next six months, maybe in the next year,” he said. “I think it’s going to happen pretty soon.” •••
Santa Cruz Naturals is located at 9077 Soquel Drive in Aptos. It is open from 8 a.m. until 9 p.m. every day. For information, call (831) 661-5367 or visit santacruzcannabis.com.
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T SC County supervisors approve marijuana events at fairgrounds Also OK rules in pot delivery services By TODD GUILD
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Fall2018 2018 •• Fall
he Santa Cruz County Board of Supervisors on Aug. 28 unanimously approved a plan to allow up to four marijuanabased events at the county fairgrounds, along with a sizable framework of regulations governing the events. The board also unanimously approved rules that regulate marijuana delivery services, and signs on cannabis dispensaries. The new regulations on marijuana events came after organizers for Dreamsesh — which was held in April at the Santa Cruz County Fairgrounds — ran the event without authorization or knowledge of the county’s Cannabis Licensing Office (CLO), according Cannabis Licensing Manager Robin Bolster-Grant. Thousands of people attended Dreamsesh, browsing among tables piled high with marijuana for sale, along with paraphernalia, food and other cannabis-related products. Many also sampled the goods, filling the J.J. Crosetti Building with hazy smoke. But the event was not authorized. County regulators learned about it after reading an article in this newspaper, according to county documents. In that story, an attendee said that vendors were not required to pay local cannabis business taxes. Other attendees complained about lax security, the county documents stated. After the event, the CLO contacted fairgrounds administrators to begin talks about future events. Under the new regulations, organizers and vendors must be licensed by the California State Bureau of Cannabis Control. In addition, vendors must have a California Sales Tax Permit, and pay taxes to the county that result from the event. Anyone selling food products must be permitted by the Santa Cruz County Office of Environmental Health. The new regulations also require organizers to contact local dispensaries, and to give them “prime booth locations” at the events. Weapons are prohibited at
the events, and attendees are required to pass through security checkpoints. Anyone wishing to smoke at the events must do so outside. Pat Malo of Greentrade Santa Cruz praised the new regulations, and said the events could be a “lifesaver” for local cannabis businesses hoping to promote their products. “I went to the (Dreamsesh) event that happened under your noises and I was really disgusted,” he said. Supervisor Greg Caput said he approved of the events at the fairgrounds, but said he did not want them to come at the expense of other events there. “What I don’t want to see is this becoming a cash cow where it affects everything and becomes a priority,” he said. Santa Cruz County Fair Board of Directors Vice President Don Dietrich told the supervisors that the fair generates about 60 percent of the annual revenue. The rest, he said, comes from rental fees from about 400 events every year such as quinceañeras and weddings. “We do have to generate our own revenue to keep the facility open,” he said. “And there are a lot of people who rely on us to do that.” The supervisors also tightened up county regulations governing cannabis delivery services. County regulations already state that only licensed dispensaries may deliver marijuana products to their customers. The new regulation makes it illegal for anyone without a license to make deliveries. Violators face a $2,500 fine for the first violation and a $5,000 fine for a second violation within one year. A third violation within a year brings a hefty $7,500 fine. The discussion on Aug. 28 stemmed from reports by several local dispensaries of a “significant increase” in unlicensed entities offering delivery services. The supervisors also approved regulations that essentially follow state regulations regarding signage at dispensaries, which state that they cannot market to minors.
5.3 MILLION
Number of cannabis plants eradicated by the DEAin 2016.
4.3 MILLION
Number of cannabis plants eradicated by the DEAin 2015. Source: DEA
Source: DEA
FAST STATS $30 BILLION Estimated (projected) retail sales marijuana in all markets in 2021. Source: GreenWave Advisors
250%
25%
28.5%
Growth in the number of people aged 65 and up who said they consumed cannabis between 2006 and 2013.
of cancer patients in states that allow medical cannabis use marijuana to treat their symptoms.
of cannabis consumers purchased cannabis to have a good time with friends and/or family in Summer 2017.
Source: National Survey on Drug Use and Health
Source: American Cancer Society
Source: Consumer Research Around Cannabis
$108.6 MILLION
Funding from cannabis sales going to school marijuana prevention and health care programs in Colorado.
Estimated number of arrests made nationwide for cannabis offenses in 2016.
Cannabis taxes collected in Oregon between Jan. 4, 2016, and Aug. 31, 2017, of which $99 million will be divided between the public school fund, mental health and addiction services, state police and the state’s health authority.
Source: Denver Post
Source: FBI Crime in United States (CIUS) report
Source: Oregon Department of Revenue
$9.2 MILLION
653,249
47.2%
of cannabis consumers purchased cannabis to help them sleep in Summer 2017. Source: Consumer Research Around Cannabis
Fall 2018 •
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Photo by Camas Frank
Natural Healing Center coowners Helios Dayspring (left) and David Separzadeh pose near their storefront in Grover Beach.
Grover Beach’s ‘cannabis district’ By CAMAS FRANK
GROVER BEACH — There are currently two licensed marijuana dispensaries in an industrial corner of the small town of Grover Beach in San Luis Obispo County. The likelihood is, if one is driving through, the right address has already been called up on a smartphone GPS or maybe a friend just mentioned it as a spot to “check out.” Get lost, though, and the locations can be easily identified by the private security guards conspicuous at both storefronts. In July, the Natural Healing Center, brainchild of business partners Helios Dayspring and David Separzadeh, became the
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second dispensary in the city, then the first medical marijuana dispensary in San Luis Obispo County to officially sell in the recreational market. In the local medical marijuana industry for 13 years, Dayspring, now 32, says this is his first local retail venture but others are on the way with a building already bought in Morro Bay and others being scouted in San Luis Obispo. Just down the block from Grover Beach’s first dispensary, 805 Beach Breaks, in what some have dubbed the new “cannabis district” along Highland Drive, the Natural Healing Center is the larger of the projects. Situated among lots slated for similar development
totaling nine acres, the business partners first plan to build out inside the existing complex, with an extraction and processing facility next door to their sales floor and an onsite consumption lounge next year. The publicly accessible — with an I.D. or visitor’s pass — portion of the approximate 5,000 square feet of space in their current facility is largely dominated by a bright media tower in the center of the room surrounded on four sides by glass cases filled with smokable pot, CBD derivatives and various products ranging from sprays and topicals to wearable patches. A couch along one wall with edibles in a refrigerator flanks the
entrance to a small room to the side which, unusual for such an establishment, has a window to the parking lot, although obstructed by security barriers. The cases there are currently empty. “The dispensaries I’ve run before had only enough space for one of those four sides,” Dayspring said, gesturing to the hub of activity in the larger room. “We’re going to be moving the medical product to this [annex] room to give the older folks coming in for them a little more privacy, a different environment.” He added that a good 55 percent of the people coming in now that do not need a prescription to purchase the drug are in the older set.
Photos by Camas Frank The interior of Natural Healing Center is dominated by a bright media tower in the center of the room surrounded on four sides by glass cases filled with products. “With the purely medical dispensaries the people coming in were younger,” Dayspring said. “The newer crowd are the people that didn’t want to register on a list but are seeking relief for something.” Separzadeh said that business had increased tenfold after they got permits to sell recreationally, a serious shot in the arm for the local economy which hadn’t gone unnoticed on the job market. They estimated five walk-ins a day dropping off resumes. “We’re really about having great customer service,” Dayspring said. “That’s the background we look for and the environment we spent time imagining for the space.” Separzadeh, who comes to the
Central Coast from Los Angeles, added, “most people are really blown away by what they see once they get inside. It’s definitely one of the nicer spaces of its kind in the state.” With millions of dollars going into the development, quite a bit going on the multimedia center and bulletproof glass alone, they’re not done yet. Common for facilities such as wineries or breweries which mix onsite production with purchase and consumption, they’re putting in a viewing window to the lab on the other side of the wall from the store. “That’s just really cool to see,” Separzadeh said.
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agitation
butane
auto-buddering
butane hash oil
The process of breaking off and harvesting trichomes from the cannabis flower through physical contact. Agitation can be made more effective by freezing the product prior to agitation.
potguide.com
The process of shatter or taffy changing consistency into a budder form. Auto-buddering occurs if a product is kept in too high of heat, if it has high wax content, or a variety of other environmental factors.
B
ALL YOU NEED TO KNOW ABOUT THE WORLD OF MARIJUANA FROM A TO Z
A
access point
An access point is a state authorized location where medical marijuana patients can buy medical marijuana. Although typically called a dispensary, access points are highly regulated and as marijuana laws become more lax, are springing up in with increasing frequency.
alcohol extraction
Alcohol extraction is the process of stripping the essential oils and trichomes from the marijuana plant by using either ethyl or isopropyl alcohol. Once the extra plant material is filtered out and the alcohol evaporates, a sticky and potent golden hash oil remains.
(FROM POTGUIDE.COM) 12
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One of the most popular solvents used in earlier concentrate extraction. Butane is marginally cheaper than propane and can be used to produce a wide range of concentrate products. Also known as BHO, butane hash oil is made by blasting marijuana flowers with butane. The butane solvent causes THC to become soluble, resulting in a butane/ THC mixture. Once the butane is evaporated, the resulting product is a viscous and amber colored resin known as “wax” or “shatter” and is very potent.
backcross
A backcross is a type of breeding that allows the transfer of a desired trait from parent to offspring. Unlike traditional breeding, backcrossing breeds a plant with one of its parents. This process creates a hybrid plant that is genetically more similar to the parent. By backcrossing, breeders can strengthen certain genes in a plant and ensure the survival of rare strains.
blunt
A blunt is created by dumping out the tobacco of a store bought cigar then rerolling the cigar with marijuana.
bong
A bong is usually a glass, ceramic, or plastic apparatus that is used to smoke cannabis flowers, herbal extracts, or tobacco.
bud
Bud is a synonym for the flower of the mature marijuana plant. They are the actual nuggets that you grind up and smoke. Buds are the part of the marijuana plant that contain the cannabinoids including THC, CBD, CBG, and THCV.
C cannabidiol
Also known as CBD, cannabidiol is one of over 60 molecules called cannabinoids found in the marijuana plant. In recent years, CBD has become very popular for its many medical benefits and can help treat nausea, cancer, arthritis, seizures, pain and many other ailments and conditions. Unlike THC, CBD has no psychoactive properties and is therefore very useful for those who want the medical benefits of marijuana but not the “high.”
cone
A cone is a type of joint that is more conical than a typical joint or cigarette. The cone starts straight and thin but widens as the cone gets longer. A crutch or filter is often included and stops the weed from falling out of the bottom of the cone. It also stops resin from clogging the end of the joint shut.
convection
The transfer of heat within a melted concentrate liquid that, in combination with inhaled airflow, circulates current and evenly vaporizes the concentrate. Convection occurs when using a carp cap.
D dabs
A dab is a term that refers to a smaller quantity of concentrate, like hash oil, wax or shatter. It’s consumed by “dabbing” with a heat source and a rig to produce vapor, which is then inhaled.
dispensary
A dispensary is a store that legally sells marijuana in a variety of forms, as well as other products, including paraphernalia and clothing. Depending on where you are in the country, one will find medical and recreational dispensaries, which offer product to medical marijuana patients or to the public, respectfully.
dry sieve hash
Dry sieve hash (or dry sift) is made via an automated extraction method that splits trichomes (the parts of the plant that carry the majority of cannabinoids (THC, CBD, etc.) from the marijuana plant, most typically with a mesh screen.
E edibles
Edibles are marijuana-infused products that are consumed orally, versus smoking flower or concentrate. Some of the more common forms of edibles include baked goods
(like brownies and cookies) and candy (like chocolate, gummies and lollipops), but can also be found in coffee, beef jerky, soda and more.
dabs.
endo
hash
Endo or “indo” is a word used to describe cannabis that is grown indoors, usually hydroponically. It’s also a common term that refers to quality bud.
ethanol
Otherwise known as ethyl alcohol, ethanol is commonly used for extraction purposes involving oil used for edibles or topicals.
F fatty
A fatty is a very thick blunt or joint containing a large amount of marijuana. Typically speaking, a fatty can be shared with numerous people over a long period of time because of its size.
Hash or hashish is the gathering of trichomes via a dry sieve or water extraction method, which end product can be pressed and ultimately consumed. This powder is potent, as trichomes contain high levels of cannabinoids (typically THC or CBD), the active part of the cannabis plant.
hemp
Hemp comes from Cannabis sativa, the same plant as marijuana, but only contains a small amount of the psychoactive ingredient THC. It’s a product that can be commercially produced to make numerous products like paper, rope, food, building materials, fuel and more.
I
feminized
Feminized marijuana seeds only create female plants. They’re specifically bred to do this to make it easier for growers by ridding the necessity to check the sex of a plant (especially male plants that don’t produce flower) to avoid unwanted fertilization.
ganja
Ganja is typically referred to as the flower of the marijuana plant when smoking. The word originated from the Hindi, Urdu and Sanskrit languages and its first known use was in 1689.
G green out
A green out is like an alcoholinduced blackout, but in reference to consuming too much cannabis, usually through edibles or potent
H
kind
Kind is slang for very potent marijuana, typically with high levels of THC.
live resin
Live resin is a term to describe an extraction method where plants are harvested within 48 hours of picking them.
low-temp dab
A dab that is taken at low temperatures allowing for a more flavorful and smooth hit.
M mota
Mota or moto is spanish slang for marijuana, similar to weed, mary jane or bud.
micron screen
A small, finely perforated mesh screen used in the production of bubble hash.
O
isopropyl alcohol
A solvent used for extracting cannabis, as well as cleaning bongs and rigs. Isopropyl has a quick evaporation rate and can be used to make midgrade concentrates.
K kief
Kief is a result of separating trichomes from the marijuana plant. Often referred to as dry sieve hash thanks to the use of screens to facilitate the extraction, kief holds the most amounts of cannabinoids, making it potent and a very pure form of concentrate.
Q quartz banger
A small, circular-shaped dish that attaches to the joint of a dab rig and can be heated to extremely high temperatures and used to vaporize concentrates.
R resin
Resin refers to the trichomes that are used to create hash. It’s also a term that references the sticky residue that amasses on the inside of a bowl (or other marijuana paraphernalia) after smoking product in it again and again.
rig
A rig is a unique pipe with a nail or skillet, used to consume concentrates like wax or shatter.
OG
The OG strain is believed to originate in Southern California. Commonly referred to as OG Kush (Ocean Grown Kush), it has grown in popularity since the late 1990s.
open blasting
Usually conducted in a glass or metal tube, open blasting is the process of solvent-based extraction done without a closed-loop system.
P pinner
Pinner is slang for a thin marijuana cigarette containing a small amount of marijuana. Usually rolled tightly, the shape resembles that of a pin.
T
The process of removing residual solvent from a concentrate.
L
ice wax
Ice wax is an extremely fine hash, known for being extracted through water. It differs from a normal hash because of its cooling process that utilizes ice and “fresh-frozen” trim material.
purging
THC
Tetrahydrocannabinol (or THC) is the most recognized cannabinoid in the marijuana plant.
tincture
A tincture is a liquid form of marijuana, typically made from glycerin (sweeter) or alcohol (harsher).
V vape pen
A vaporizer pen (or vape pen) is a smaller version of a regular vaporizer. It’s portable and typically uses pre-filled cartridges available in varying sizes and types of cannabis, including Sativas, Indicas and Hybrids.
vaporization
A process in concentrate consumption that uses moderate heat to chemically change a solid-form concentrate into an inhalable vapor.
W
S shatter
Shatter is a type of concentrate that is believed to be the purest and most potent type of marijuana product.
strain
A cannabis strain is a particular kind of plant species, either in a pure or hybrid variety like sativa or indica found in both the recreational and medical arenas.
Wax
is a concentrated form of marijuana that’s created when the plant is dissolved into a solvent.
Advertising in the marijuana industry By SERGE CHISTOV What are the regulations and restrictions around advertising for this industry? (State by state variations, etc.) The rules and regulations for advertising in the marijuana industry run the gamut from nonexistent to quite extensive. For example, in Maine, where recreational marijuana is now legal, there are no advertising regulations for registered dispensaries or caregivers yet. Without a doubt, though, this is due to the fact that the main legislature only gave marijuana the go-ahead within the last six or seven months. They literally haven’t had time to lay down the law of the land. Colorado, on the other hand, which has had legal recreational marijuana sales for more than three years now, has a long list of requirements that outlines signage, TV, radio, print, and every other type of advertising you can think of. Where there are guidelines governing marijuana advertising, the feel of those laws is very much reminiscent of the cigarette and alcohol advertising of the 1970s and ‘80s. Using California as an example, advertising on broadcast, cable, radio, print, and digital communications is only allowed where at least 71.6 percent of the audience is 21 years of age or older. This restricts advertising on TV and radio to the late-night and early-morning hours. As more and more states, and even the federal government, move to legalize medical and recreational marijuana, the advertising laws will likely become more consistent as they are with cigarettes and alcohol. What strategies have arose to deal with limits placed on advertising for cannabis? First of all, I want to encourage all legal cannabusinesses to take advantage of this newfound advertising freedom and get the word out. That said, stay within the limits of the laws created by your particular state. Marijuana sales and production is a legitimate business now and we don’t need to, nor should we, fall back on the old how-can-we-circumventthe-law mentality. In regard to the specific strategies for dealing with the advertising limits, I’m reminded of the book “Guerilla Marketing” by Jay Conrad Levinson. If my colleagues in the industry haven’t yet read this book, I encourage them to do so. In fact, many cannabusinesses are taking a page from Mr. Levinson’s book, perhaps without even realizing it. They are utilizing the mainstream media, as the laws of their state allow, but are also focusing on generating word-of-mouth through referral rewards programs, loyalty programs, community outreach, sponsorships, partnering with local bars and liquor stores, and giving away free shirts printed with their logo. The guerilla marketing list goes on and on. Many cannabusinesses are also growing a robust web presence. Most states restrict pop-up advertising, but they can’t restrict the company’s business website itself. So cannabusinesses are putting their website name anywhere that it’s legal and including it in all their guerilla marketing efforts.”
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How have advertising limitations impacted the industry’s growth? Advertising limitations have certainly been a speedbump to the industry’s growth, but I don’t think we’ve reached the point where those limitations have turned into a stop sign. There is so much buzz in the media about the continued legalization of recreational marijuana that advertising limitations are still just an afterthought. Even President Trump’s will-he-won’t-he mentality has been good press for the marijuana industry. There is still so much room for growth even within
Serge Chistov, financial partner to the Honest Marijuana Company eco-friendly cannabis growery, shares his insight on what one needs to know about cannabis advertising.
the restrictive advertising laws. Cannapreneurs should keep in mind that you don’t have to be everywhere — your advertising doesn’t have to be on a billboard on the local interstate highway — for your business to be successful. Sure, it would be nice if your name could be on that billboard, but there are much more targeted ways to reach potential customers than just plastering your name far and wide. I’m reminded of the marketing for the movie “The Matrix” in 1999. The advertising for that movie was incredibly low by Hollywood standards. The little marketing that did exist consisted of cryptic clips of the movie and the question, “What is the Matrix?” That’s it. But once that movie was released, it exploded into a cultural phenomenon. The cannabis industry is still in the process of exploding. Advertising will certainly help continue that explosive growth, but I imagine that the force of it will press outward even without substantial marketing efforts. To paraphrase another popular Hollywood offering, “Build a quality product and they will come.” And not to mix metaphors here, but when you think about products like Jack Daniel’s whiskey, how many
of their advertisements do you see on a regular basis? I can’t remember the last time I saw one. But the product continues to sell and sell well. That’s a lesson the cannabis industry can take to heart. In the meantime, analyzing advertising limitations is a bit like comparing apples and oranges. When recreational and medical marijuana are legal at the federal level, then we can start analyzing how advertising is limiting growth. Until then, the playing field for cannabusinesses is just too uneven. Long term trends: What is likely to change about current advertising regulations surrounding the industry? It’s my hope that one day, you’ll see a cannabis product commercial during the SuperBowl right next to a commercial for Budweiser. But that’s a long way down the road. Until then, I don’t foresee any major changes to the advertising regulations that govern the cannabis industry. The states that have had legalized marijuana for a number of years now, have a pretty good set of laws that govern how cannabusinesses can advertise. Those laws are nothing more restrictive than cigarette advertising, and actually might be more permissive. So there’s not a lot to object to at this point. What will change is that the other states that have only recently legalized marijuana in one form or the other, will catch up to the likes of Colorado and California in establishing similar regulations. When federal legalization happens — and it will — then we can expect a more uniform set of laws for advertising cannabis products. After that, I predict that the laws for advertising cannabis products will soften and you’ll see them advertised on prime-time TV just like beer and alcohol. But, again, as I said, that’s a long way down the road. Really, the cannabis industry has very little to complain about at this point. It’s gone from a back-alley industry with no rights whatsoever, to a main-street industry with rights like other similar industries in just three or four short years. We can’t expect mountains to move right away. We’ll continue working within any advertising restrictions the states and federal government choose to levy on us, while at the same time discussing with our legislators ways to make those laws better for all parties involved. That’s how legitimate businesses work — through the system. And by any measure of the term, the cannabis industry is a legitimate business now. •••
Serge Chistov began his career as a financial adviser at Berkeley Securities and then Sharpe Capital, going on to become a registered representative at Cantone Research. From there, he joined National Securities as a stock broker, eventually working his way up to senior financial adviser, during which time he launched Serge Import, initially a side hustle importing Exclusiv Vodka, which is distilled from wheat in Moldova. After close to six years at National Securities, he joined PNC Investments, the broker-dealer arm of PNC Bank, where he provided investment advice and wealth management services for the bank’s client base looking for packaged and individual investment products.
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SC County’s cannabis licensing manager steps down Staff report
SANTA CRUZ COUNTY — Robin Bolster-Grant is leaving her post as the county’s cannabis licensing manager, County Administrative Officer Carlos Palacios announced on Aug. 10. A 16-year employee of the Santa Cruz County Planning Department before being named in August 2017 to oversee the development and implementation of ordinances implementing cannabis cultivation and manufacturing, Bolster-Grant led a four-person office tasked with creating jobs, working with industry on regulatory compliance, upholding environmental regulations and mitigating neighborhood impacts. Prior to being named cannabis licensing manager, Bolster-Grant was admitted to the California State Bar.
“I will never forget the work my team did to successfully implement this historic change in public policy,” said Bolster-Grant, a Watsonville resident. “The county family has been great to me, but I have never had the formal opportunity to practice law. Now is the right time for me to move on to the next phase of my career.” According to GreenTrade Santa Cruz, Bolster-Grant is the third person to leave the Cannabis Licensing Office since it was formed as a department in 2016. “Robin oversaw a crucial period during our transition to a regulated cannabis market in Santa Cruz County,” Palacios said. “Over that time, her work with the Board, industry representatives and the public became a model for bringing parties together to foster the development of exceptional public policy.”
Fall 2018 •
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• Fall 2018