Category: Press

Sophia Koch

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Jonathan Spadafora knew that April 20, 2022, the cannabis high holy day, when used for Colorado’s marijuana retailers, failed to wind up. Across the state, dispensary sales fell nearly 25 percent compared to 4/20 a year ago. But it wasn’t until last May, when demand continued to decline, that Spadafora, president of Veritas Fine Cannabis, realized the industry was in a free fall.

Two years after legalization, the first time since the sale of licensed recreational weed began in Colorado in 2014, Centennial State’s cannabis sector is experiencing a prolonged recession. Mid-2022 saw sales decline for the fourth consecutive quarter, a nearly reversal of record-setting revenues the industry saw in the early days of the pandemic. (The medical and retail sectors have experienced roughly similar slowdowns.) In response to declining demand, dispensaries that had stockpiled for 4/20 found themselves stuck with excess inventory and fewer purchase orders to producers such as Veritas. Turns out, which flower and pre-rolled additions to stores across the state. Large companies are also struggling; The chains Buddy Boy and Tweedleaf closed seven stores each during the summer.

Spadafora believes that several factors have contributed to the tailspin of cannabis. To start, the pandemic boom was a bubble driven by the fact that people were stuck at home – and often bored or stressed. “People weren’t in the office,” Spadafora says. “They were at home and had the ability to roll a joint and do their emails all day.” Then there were stimulus checks, which helped fund Noss’s run with total sales hitting an annual peak of $2.2 billion in 2021. Fast-forward to today, and people are worried about inflation, Spadafora notes. In addition, nine more states have legalized recreational weed during the past two years, making a dent in Colorado’s cannabis tourism trade, says Truman Bradley of Denver-based Marijuana Industry Group, a cannabis trade association. New Mexico’s market entry in 2021 has been particularly painful, with cannabis sales down 40 to 50 percent in Colorado’s southern border towns.

Graph Illustration by Sean Parsons

Veritas, one of the state’s larger marijuana growers, couldn’t cope with a downturn without size: In June, the company decided to close one of its three farming facilities and lay off 33 staff members—its employees. about a quarter of the number. “It’s hard because it wasn’t the people who were making the mistakes,” Spadafora says. “I think one thing we’ve learned is that Colorado isn’t a $2.2 billion market. It’s probably a $1.8 or $1.7 or $1.6 billion market.” Producers and sellers alike have to expect the market to collapse before their companies go up in smoke.

Read also: ‘Wonderful’: Cannabis sales in New Jersey bring in excited shoppers

This article was originally published on 5280 November 2022.

Colin Smith — October 28, 2022 — Lifestyle

References: veritascannabis & packworld

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‘Veritas Fine Cannabis’ has begun using QR codes on its packaging following the increased popularity of the feature over the course of the pandemic. Prior to 2020, Veritas believed that QR codes were a dying trend since scanning them required additional third-party applications. However, social distancing measures resulted in increased acceptance of QR codes and it put pressure on phone developers to integrate QR code scanners into camera applications.

Now, Veritas Fine Cannabis equips each of its cannabis products with a QR code. When scanned, the link opens to a product catalog that provides important information on the cannabis product. This includes the type of strain, the possible outcomes, the potential side-effects, the recommended dosage, and more. Veritas strives for trust and transparency, and it believes that providing an extensive amount of information through a QR code is one way to show consumers that it prioritizes them and their experiences.

Image Credit: Veritas

By DALLAS HELTZELL | For BizWest Media/Prairie Mountain Publishing

PUBLISHED: October 20, 2022 at 6:29 p.m. | UPDATED: October 20, 2022 at 10:50 p.m.

Oskar Blues Fooderies has announced a new leadership team for its restaurants in Longmont and Lyons.

Michael Gleason, who started his career in hospitality in the French Quarter of New Orleans and spent the past decade growing the Barcelona and Bartaco restaurant brands, has been named operating partner by founder and owner Dale Katechis. Since the height of the COVID-19 pandemic, Katechis has worked to update the restaurants: Oskar Blues Home Made Liquids and Solids in Longmont and Oskar Blues Grill and Brew in Lyons.

Katechis told BizWest that he had been “on the hunt for someone of Mike’s caliber” and that Dave Query of the Big Red F restaurant group suggested Gleason, who had taken the Bartaco brand from six to 23 units.

“Aside from his experience in growing a multi-unit brand, he has an interest in the combination of really understanding cost control but balanced with the culture of the staff and creating an environment for them where they want to be there,” Katechis said. “If they want to be there, then the customers will feed off of that. It’s something real, not forced.

“I never forced our managers to hit a number,” he said. “I wanted the experience to be high and to reap the rewards of that. Then the pandemic hit, and we were trying to make money with fewer customers and less staff.”

The slower pace gave Katechis a chance to invest in remodeling the restaurants and restructuring their menus. “We started cleaning the places out,” he said. “We’d been in Lyons almost 25 years and 10 in Longmont.

The locations in Colorado Springs and on Market Street in Denver didn’t need as much restructuring, he said, other than trying to find staff.

“We’ve right-sized the business,” Katechis said. “We don’t have any immediate growth plans for new units. We have to create some staff before we can start thinking about growth. We’re having some luck with that. Once I’ve got people on the bench who are chomping for opportunity, then let’s grow. But the next 12 months will be just stabilizing the business, training and growing our internal labor pool.”

A challenge, he said, will be trying to keep prices from rising too much despite the fact that pay for servers, bartenders and kitchen staff is averaging 30% higher than before the pandemic, simply because of the shortage of workers.

“Keeping it real has always been at the core of what Oskar Blues is all about, and I’m enjoying returning to my roots as a restaurateur,” said Katechis. “We’ve learned a ton over the past 25 years, and we are excited to bring Oskar Blues Fooderies back and better than ever before.”

The Longmont location has a recently renovated patio this year and has restored the backyard train to full functionality. The restaurant in Lyons will continue to bring in local music acts for Fridays and Saturdays on its patio, which features local art and kid-friendly activities.

“I fell in love with hospitality on Bourbon Street, and I have a real passion for blues guitar and Cajun food,” Gleason said. “I’m grateful for the opportunity to join the Oskar Blues Fooderies team, which has a menu with authentic Cajun influence and such enthusiasm for providing a space for the community to come together over live music.”

Katechis founded the original Oskar Blues restaurant in Lyons in 1997 and then grew the brewery by the same name. Since then, he has become a serial entrepreneur, playing an active role in strategic growth and development as a board member and adviser for Longmont-based nonprofit Can’d Aid as well as several Colorado-based companies, including Veritas Fine Cannabis, Weller CBD Beverages, and Wander + Ivy Wines.

In January, CANarchy Craft Brewery Collective LLC, a nationwide collective of independent craft beer companies including Oskar Blues Brewery, was sold to Monster Beverage Corp. (Nasdaq: MNST) for $330 million in cash. Following that sale, the restaurants in Longmont, Lyons, Denver and Colorado Springs remain under independent ownership by Katechis.

This article was first published by BizWest, an independent news organization, and is published under a license agreement. © 2022 BizWest Media LLC.

FROM BEGINNERS TO CONNOISSEURS, VERITAS FINE CANNABIS STRIVES TO HELP ALL CONSUMERS FIND A STRAIN BEST SUITED FOR THEM.

Rachel Abela

Many of us have brands we trust. These brands are forming relationships with their consumers based on high-quality goods that cause the same effects each time around.

Let’s face it, we all have a favorite strain. Maybe you have a favorite strain but prefer purchasing it from one specific brand. After all, different brands may grow the same strain, but they use different cultivation processes that make their product stand out from the rest.

It’s essential for consumers to find a brand they can trust. We all deserve a product and strain that’s best suited for our personal situation with effects that are consistent, reliable, and expected.

Colorado consumers have made it clear that Veritas Fine Cannabis not only has their backs, but is the most trusted and reliable brand in the state. When you want consistent effects and potent flower with distinct terpene profiles, there’s only one place to experience that.

About Veritas Fine Cannabis

In Roman mythology, veritas means truth or the goddess of truth. Veritas Fine Cannabis brand takes pride in showcasing the true nature of high-quality, rigorously-grown cannabis.

The Colorado-based brand acknowledges that most consumers use the plant for a reason. That’s why Veritas stops at nothing until each consumer leaves with a strain or product best suited for their situation.

There are a few reasons why Veritas Fine Cannabis has won over the hearts of many Coloradan consumers. For one thing, the entire seed-to-sale process is completed by hand, from the cultivation site to packaging; the staff at Veritas handle each good with the utmost TLC.

The result is the freshest, cleanest, and most premium cannabis experience not just in Colorado but in the United States.

Terpenes Are The Name Of The Game

What makes Veritas’ flower so good? The brand is heavily focused on terpenes. These are organic compounds found in cannabis, fruits, vegetables, and other plants that promote distinct aromas.

That said, Veritas understands that terpenes aren’t just responsible for making a strain smell so delicious. Terpenes also promote the entourage effect and work with other cannabinoids and compounds to help the user reach a desired and well-rounded experience.

Veritas works around the clock to understand the role of different terpenes found in each of its strains, all of which are cultivated with a maximized terpene profile.

Veritas has a few different categories for its strains, including the following:

• Invigorate
• Invite
• Innovate
• Rejuvenate
• Alleviate
• Garcia Hand-Picked (As in Jerry Garcia of The Grateful Dead, strains curated by the Garcia family)

With such care, attention to detail, and commitment to high-quality flower, Veritas Fine Cannabis is happy to relieve you of your hunt for weed that works. Not just weed that promotes distinct effects but effects that you need for your preferred experience.

For more information about Veritas Fine Cannabis, visit its website at veritascannabis.com.

In the early months of 2022, Dale Katechis found himself out of a job and wondering what to do. He was a pioneer in the canning of craft beers who had maxed out his credit cards to launch Oskar Blues Brewery and built Dale’s Pale Ale into

From the Denver Business Journal: https://www.bizjournals.com/denver/news/2022/10/06/dale-katechis-oskar-blues-founder-sale-restaurants.html

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ED SEALOVER | DENVER BUSINESS JOURNAL
Dale Katechis hoists a pint at his Oskar Blues Grill & Brew location in Lower Downtown Denver on Oct. 5, 2022. An iconic national brand, but that trajectory changed this year. Monster Beverage Corp. (NYSE: MNST) purchased Oskar Blues and its multibrewery CANarchy Craft Brewery Collective for $330 million in January from private-equity firm Fireman Capital Partners and the owners of the breweries that were part of the company. Twenty-five years after opening his original blues-music-themed Cajun restaurant in Lyons and 23 years after getting the idea to add a beer-making operation there, Katechis severed himself from CANarchy.

But because he had sold the restaurant division of Oskar Blues to his wife, Christi, in 2004 when the business moved from brewpub status to a manufacturing brewery, the former high school sweethearts with four kids retained control over the four eateries under the OB moniker. After a break from everything, the entrepreneur decided to dive back in, this time going back to his roots as a restaurateur. “Now that I’m out of the beer business completely, I needed something to do,” Katechis said on Wednesday, sitting on the front porch of his Oskar Blues Grill & Brew in Lower Downtown and sipping a beer as industry leaders gathered inside before the now 40-year-old Great American Beer Festival. “I could only do so much Sudoku at home without my wife telling me, ‘OK, you need to get out of the house.’ And this is what started us.”

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Although he owns restaurants in Lyons, Longmont and Colorado Springs as well, Katechis particularly wanted to understand what was happening in LoDo, which got hit hard as the pandemic drove workers out of downtown and was suffering from the same labor shortages as the rest of the industry. So, he rented a place within walking distance of the bar and restaurant and poured himself into 16-hour days there for three months, sometimes mopping the floors first thing in the morning and sometimes working a shift in the kitchen if a worker failed to show.

He wants to transform Oskar Blues Grill & Brew, at 1624 Market St., from a sometimes-overlooked part of the greater Oskar Blues family into a center of the craft-beer scene in Denver. Oskar Blues beers, appropriately, still take up a dozen or so of the draft lines at the Cajun restaurant with a downstairs music venue, but that leaves roughly 35 more draft lines that Katechis intends to fill with products from other craft-beer makers. With the restaurant back on its post-pandemic feet, he plans to hold more events showing off the small and local breweries that have been where he once was in their efforts to grow into something bigger. And he’ll do it, as he always has, with a beer in one hand and maybe a spatula or maybe a bar rag in the other. With the restaurant is humming once again, and now it’s one of the many activities Katechis is juggling in his life after Oskar Blues. But he’s relaxed — as he always has been — and happy and looking forward to new challenges, even if they may seem less daunting

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than growing from scratch and operating what became the seventh-largest craft brewery in America. “It is very weird. It is bittersweet,” he said of not having ownership in a brewery that’s occupied roughly half his life. “I’ve probably spent more time with Oskar Blues than I have with my children. And it was like a child to me. I’m still proud of what has happened there.”

Just three years into its run as a brewpub, Katechis got the idea of canning Dale’s Pale Ale at a time when the craft sector eschewed the vessels because of their longtime association with the light beers that dominated the American drinking scene in the second half of the 20 century. Fellow brewers laughed at him at first. Then they realized he was right about the increased sustainability and protection against beer-ruining light that cans provided, and now almost every member of the industry has ditched bottles for cans.

In the 20 years after that fateful decision, Katechis built a brand that not only was the first Colorado craft brewery to be sold in all 50 states but that had started buying other craft breweries that were in financial trouble and in danger of being gobbled up by an international company. His equity partners then found what they considered the ideal buyer CANarchy — a pioneer in the energy- drink space that was looking to take its first steps into alcoholic beverages.

While many people wondered how Katechis felt handing his company over to such a big corporation — he didn’t comment when the sale was announced — he said Wednesday that he is very

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happy with who is guiding Oskar Blues’ future. He liked the history of Monster, the team that was running it and their goals to let the CANarchy brands grow on their own. He said he continues to have a good relationship with them now that his Oskar Blues-branded restaurants are buying Oskar Blues beers from Monster to serve. “I don’t know if there are too many better marketers in the world, and they had a desire to be in the space,” he said. “And they still kind of operate in a sense like a small company. You can still talk to both owners.”

In addition to being a restaurateur, Katechis is now an investor. He’s bought into Bootstrap Brewing of Longmont, which keeps his hand in the industry, even if he is more of a silent partner to owners Steve and Leslie Kaczeus as they grow their distribution-focused brewery. But he’s also invested in Veritas Fine Cannabis, as he’s always been fascinated by an entire industry that is trying to break new ground. He’s invested in Ursa Major Technologies, a Berthoud-based company that prints 3D rocket engines, because his father was an aerospace engineer. And he’s bought into Denver’s Wander + Ivy winery, in tribute to his father’s long-time efforts to make his own vino. “Growing up, every closet in our house had a five-gallon carboy in it,” Katechis remembered. “That was my first experience with fermentation.”

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Katechis, one of the most influential craft-beer makers of all time, is an entrepreneur again. And he’s excited. “It’s been fun to be a big part of this space for as long as we have,” he said. “I just wonder what the next 25 years holds for me.”

Ed Sealover
Senior Reporter
Denver Business Journal

Huge profits from cannabis have leveled off over the last year raising concerns

Hayley Sanchez

Today, 12:20 p.m.

Cannabis revenue has grown consistently since legal sales started in Colorado. Dispensaries broke records month after month early on in the pandemic, and industry figures believed at the time that business was unlikely to slow down. But for nearly a year, sales have done just that, raising questions about the future of Colorado cannabis.

“I saw the writing on the walls back in October last year,” said Francisco Chavez, who does business-to-business sales between growers and dispensaries in metro Denver. Historically, the cannabis industry has experienced a slowdown after summer ends, but Chavez said last fall felt “very odd.”

“Since I’m all around, I’m selling to so many different shops, [my customers] were coming to me and asking ‘Hey, what’s the word? Do you know if other shops are struggling like us?’” Chavez recalled. “A lot of shops and a lot of purchasing managers, executives at dispensaries or owners, they wanted to know how it is out there on the other side for other dispensaries.”

Chavez said it was unanimous across town — sales had slumped.

Between the months of June, July and August for 2021, the state brought in more than $109 million in total taxes and fees for marijuana. But during those same months this year, that total was around $80 million. That reflects a 26 percent decrease from last year’s summer months, according to data from the Colorado Department of Revenue.

People who work in the cannabis world say the sales dip could be due to a number of factors. They point to things like stricter laws, inflation, an oversaturated market finally leveling out, and fading enthusiasm around a once-niche product.

Truman Bradley, executive director for the Wheat Ridge-based Marijuana Industry Group, called Colorado’s situation a “perfect storm.”

Bradley pointed to a law that went into effect at the start of the year as a big reason for the drop in revenue. House Bill 1317 put new caps on how much THC concentrate medical cannabis card holders are allowed to purchase each day. Customers can now buy up to 8 grams, down from the previous limit of 40 grams.

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The law also lets the state track purchases to prevent people from going to different stores and buying more than the legal limit. It also makes it tougher for 18- to 20-year-olds to qualify for a medical marijuana card, requiring them to visit a physician in person and get written consent from two doctors who work at two different practices.

“Some patients need to go to a dispensary now every two or three days in order to get the medicine that they need,” Bradley said. “Imagine if you had to do that for medicine that you need, oftentimes, driving long distances, waiting in lines.”

Another aspect that may be driving sales down, especially for the medical side of the industry, is patients’ inability to receive medical cannabis through telehealth visits. Colorado waived those restrictions at the start of the pandemic through an executive order issued by Gov. Jared Polis, but that window expired in July.

Medical cannabis sales alone brought in more than $442 million in 2020. But those sales dropped to $404 million in 2021, and so far this year, they are down again.

The Marijuana Industry Group is also concerned about the impact of potential new tax plans, like the failed My Spark Denver effort. The initiative would have used a 4.5 percent sales tax on cannabis products and a portion of the existing tax on cannabis to fund out-of-school programs. Denver voters rejected a similar proposal last year.

“This is the second time in as many years that campaigns viewing the cannabis industry as a piggy bank for personal projects have lost,” said a statement from Tiffany Goldman, board chair with the Marijuana Industry Group. “Denver voters know this industry is too important to be a target moving forward.”

But additional regulations and taxes are only part of what’s driving spending down.

Neighboring states like New Mexico have legalized and further normalized cannabis consumption. That has slowed out-of-state cannabis tourism, especially in Southern Colorado, according to Jon Spadafora, president of Veritas Fine Cannabis. The company operates  300 dispensaries around Colorado.

“I don’t think that any of us were prepared for how fast that would affect us,” Spadafora said. “I think the biggest thing that’s really driving the uncertainty around [the industry] is that, beyond the supply issues, this economy is tough. People are paying five bucks per gallon of gas, and they’re being more cognizant with the money that they spend.”

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That lack of spending forced Veritas to close one of its grow facilities, lay off 33 of its workers and cut pay for executives earlier this summer. Spadafora hopes things bounce back, but he isn’t optimistic that will happen anytime soon.

“It doesn’t appear that the economic picture for the world is getting any better today than it was a few weeks ago,” he said. “When the rest of the world gets the stuff figured out and we’ve got the inflation under control and people feel comfortable with their money, then I think we’ll see growth again. But I don’t think we’re gonna see significant growth until that point.”

It’s unclear how much inflation has directly impacted cannabis buyers.

Jesse Payne of Denver said he earns $16 dollars an hour, relies on food stamps for his groceries and only has a little cash leftover each month. When asked whether he’s had to cut back on purchasing cannabis, Payne laughed and said, “No, I can’t.”

“That’s what keeps me focused. That’s what helps me get centered in the morning,” he added. “And then I can relax and get my head together.”

Payne said he’s shopped around for dispensary deals to try to keep his spending down. He doesn’t take issue with the city’s taxes on cannabis because he believes they are benefiting Denver. He credits the marijuana industry with contributing to the development and growth the city has seen in recent years.

Fellow customer Joseph Velasquez doesn’t see as much value in the high tax rates. He works at a dispensary and said if taxes continue to rise, he thinks people will turn to the black market instead.

Both Payne and Velasquez said cannabis is a form of medicine that they’ll continue to purchase despite inflation.

“I had a few wrist surgeries and knee surgeries. I use topicals, orals, like edibles,” Velasquez said. “It’s just a daily routine for me honestly.”

Where does Colorado’s cannabis industry go from here?

A handful of state programs are directly funded by tax revenue from the industry, which means slowing sales could lead to a funding shortfall.

Andy Stine directs Capital Construction for the Colorado Department of Education, which manages the Building Excellent Schools Today program. BEST awards grants that help pay for things like new roofs, boilers, HVAC systems and other renovations in public schools.

During the last fiscal year, BEST brought in $97 million from cannabis funds, Stine said.

“It’s pretty nice,” he said, adding that he has seen excess taxes fluctuate over the years because of new laws or budget cuts. But he warned the decline in cannabis revenue might impact these grants in the next fiscal year.

“It will squeeze the amount of grants that we can award every year,” Stine said. He’s hoping other sources of funding, like the State Land Board or the Colorado Lottery, balance the money out as it has in past years.

“When fee or tax revenue falls, programs supported by those funds need to be cut and reduced to fit the new budget,” a spokesperson for Gov. Jared Polis’ office said in an email. They did not go into detail about how the state plans to make such adjustments.

Local government programs funded by cannabis taxes may be impacted more severely than ones funded by the state.

“Denver marijuana tax revenue is down,” said Bradley, the industry expert. “That means deep cuts for programs that Denver uses the marijuana tax money for such as affordable housing, homelessness services all while Denver’s going through a housing crisis. So, you know, the impacts of inflation cannot be overstated on our industry.”

Chavez, the businessman, said he’s heard a lot of fear coming from colleagues. He has also seen many businesses undercutting each other for competitive pricing. But he remains optimistic.

“I’ve done my best to just try to make sure that I’m working with as many people as possible and just trying to just work as hard as possible,” he said. “It’s still slower than anybody would like it to be, but people are anticipating this great shakeout and in this great shakeout, folks are gonna go out of business and the market is gonna even itself out. That’s gonna be true to a point.”

Whether it’s the economy, future legislation, or excitement moving to other issues, the cannabis world has several unknowns that only time will shake out. But its legitimacy and customers remain consistent.

What’s new in weed: products and news from Garcia Hand Picked, Pax, and more
Marijuana.com

With so many great cannabis brands releasing exciting new products in new markets, it can be hard to keep track of every release or event. So we’re rounding up a few significant happenings in the industry. This week, we look at releases by Leune and more.  Pax: Limited-edition Era Dubbed the Malibu, Pax recently launched its limited-edition Era Life battery in a purple ombre hue. Only available in dispensaries in the US and Canada. Learn more about the Era Life. Available: Nationwide Find Pax Garcia Hand Picked: flower launch in Colorado In partnership with Veritas Fine Cannabis, Garcia Hand Picked flower is now available in Colorado in Morning in Marin (sativa), Love in the Afternoon (hybrid), and After Midnight (indica) strains.  Available: Colorado Find Garcia Hand Picked Find Veritas Fine Cannabis Session Goods: new cannabis accessories This week, Session Goods launched three new products on its Essentials line: a mouth cover, stash tube, and stash pod.  Available: Nationwide Leune: product launch on the East Coast Previously available in Arizona and California only, Leune just entered the East Coast market with its launch in Maine. Offering flower, pre-rolls, cartridges, and vape pens, consumers can find its products in Sol Berry, Cloud Berry, Desert Gold, and Piña Dream strains.  Available: California Find Leune  A Golden State: new solventless vape A Golden State’s new live rosin vaporizer is now available at Sweet Flower dispensaries in LA in Woods, Caramel Apple, and Snow Dream strains. It will be hitting more dispensary shelves throughout California in the coming months.   Available: California Find A Golden State Visit Sweet Flower Toast: pre-roll launch on the East Coast Toast pre-rolls can now be found in Massachusetts, featuring low-dose options in 2:1 and 1:1 CBD:THC blends. Find them in Toast Slices (2 and 5-packs), Classic (0.5 – 1 grams), and…

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The Aurora, Colorado-based operator is doing its part to creatively meet the local consumers’ needs while embracing education and experiences in the process.

September 8, 2022

 Zach Mentz

State by State: Colorado News

It’s a difficult time to succeed as a cannabis operator, for a number of reasons. Doing so in a mature and jam-packed market only exacerbates the challenges.

But Veritas Fine Cannabis, a vertically integrated operator based in Aurora, Colorado, is doing its best to creatively meet the local consumers’ needs.

Veritas launched a build-your-own four-pack of eighths of flower, equating it to your own mix and match half-ounce of product. The promotion, which is currently available at more than 200 dispensaries across Colorado and runs through September 18, allows consumers to select three different eighths of flower while receiving the fourth eighth for only 10 cents.

Jordan Plunkett, director of marketing at Veritas, says the build-your-own four-pack idea was inspired by the marketing team’s backgrounds in hospitality.

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“We like to take some of those tools and tactics that were successful in the alcohol/bar scene and implement them here in the cannabis space. That’s where we got the idea of the build-your-own four-packs, taking a play off craft beer, [where] you can build your own six-packs,” Plunkett says. “We really wanted to give our customers the ability to create their own experience. We believe with our vast strain library, we’re able to provide something for everybody.”

RELATED: Best Cannabis Companies to Work For – Cultivation | #4 Veritas Fine Cannabis

Being able to provide “something for everybody” first means understanding your consumer base and their product preferences. While that requires learning and information about the consumer, it also requires the consumer to learn about cannabis and its effects.

“Being a Colorado brand, we understand that people are outdoors, especially in the summertime when it’s warm,” Plunkett says. “We want them to be educated. We want them to understand what works for them versus what doesn’t work for them.”

Veritas’ build-your-own four-pack promotion is among of the many ways the company tries to stand out amongst fierce competition in Colorado’s decade-old adult-use market.

“There’s a lot of great weed here in Colorado,” Plunkett says. “We’ve learned that we’re dealing with a very educated consumer nowadays. People are definitely starting to understand the plant a little bit more … we’re kind of getting past that point of sativa and indica [classifications].”

As the consumer has evolved, so, too, have the company’s marketing strategies. While most brands and retailers may emphasize THC percentage, Plunkett says terpenes deserve more attention, noting that Veritas packaging highlights the top three terpenes in a given product. He also notes other promotional experiences the company has implemented, including allowing consumers to conduct their own pheno hunt of Veritas products.

While Veritas’ build-your-own four-pack promotion runs through Sept. 18, Plunkett says “we’re definitely planning on bringing this back again. So far, it has been a huge success.” 

And why marketers in the space need to see restrictions as opportunities

By Tim Nudd on Sep 08 2022 – 9:30am

Jesse Burns | Photo illustration by Ashley Epping

Jesse Burns is a cannabis marketing veteran who served as the longtime marketing director for Sweet Grass—Colorado’s leading edible in the baked goods category—before joining Grasslands, the cannabis marketing and public relations agency, as CMO in 2020.

Jesse believes product design and a deep understanding of the customer journey are the driving forces for exceptional brands, and that marketers must strive to understand what emotions customers experience in order to craft a meaningful brand narrative and build lasting relationships. 

Selected as a Clio Cannabis Awards juror in 2022, Jesse has received multiple accolades for marketing and product design, including Colorado’s THC Classic and a Gold Clio. He also has served as a mentor for the CanopyBoulder cannabis startup incubator.

We spoke with Jesse for our Higher Calling series, where we chat with leaders in the cannabis space.

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Jesse, tell us…

Where you grew up, and where you live now.

When you ask someone from West Virginia where they are from, they will often raise their left fist and extend their middle finger and thumb, which makes the shape of the state. They then point to the place on the back of their hand and that is technically “where they are from.” I’m from outside the bottom knuckle of the thumb. Nowadays I live in Denver by way of a few other states, countries and Humboldt County.

Your current role in the cannabis industry.

I’m the chief marketing officer for Grasslands, a cannabis marketing and public relations agency based in Denver, Colorado. I work with our team on all of the agency’s marketing, as well as the marketing products we offer our clients. We’re a journalism-minded agency specializing in complicated business languages, and we work primarily with cannabis businesses. My favorite client work is when we create brand messaging and position brands to achieve their business goals. 

Your earliest cannabis memory.

My earliest cannabis memory is the “This Is Your Brain on Drugs”—egg in the frying pan—commercial that played during Saturday morning cartoons in the early ’90s. While it never specifically addressed cannabis, I was taught that “weed” was a drug, and the commercial  haunted me for years, even after I started consuming cannabis. Years later I would find out that while my friends and I were sitting through D.A.R.E. lessons in public school learning how everyone who smoked weed was a dangerous drug dealer, many of my friends’ parents were quietly growing cannabis at home.

A story about the positive impact cannabis has had on your life.

When Coloradans voted on Amendment 64 in 2012, I was living up in the hills of Humboldt County, California. I received my absentee ballot via general delivery at a small rural post office, where I checked the “yes” box and sent it back to Colorado before heading back up the hill. 

I deeply appreciate the medicinal and therapeutic relationship many people have with cannabis. I also deeply appreciate the recreational relationship consumers have with the plant. Yet, for me personally, the impact is different. 

I have always had a deep passion for the culture, or counterculture, that cannabis has influenced and often defined. The ability to vote to legalize an industry that has enabled me to channel my focus and passion into the business world; to be on the forefront of this brand-new industry; and to be a marketer who is shaping the future of the industry—it’s truly the cumulative opportunity of a lifetime. My career mission and throughline is to empower people to create their own cannabis cultures, and to make meaningful culture in ways they want to experience it. 

A favorite flower, edible, product, or brand.

For six years I was the director of marketing for Sweet Grass (acquired by LivWell Enlightened Health in 2020), a legacy Colorado edibles brand that specialized in cannabutter baked goods. The cannabutter we made is how cannabis is supposed to be eaten. There’s no “nano” or “fast-acting” or “innovative” extraction technology out there that can give you the full-body effect you can get from a full-flower cannabutter product. While I was at Sweet Grass, we designed an actual stick of butter to sell in dispensaries—a product that ended up winning a Gold Clio in the inaugural year of the Clio Cannabis Awards. There is nothing better than a dosed stick of butter sitting on your kitchen counter. 

The biggest challenge cannabis marketers face today.

I honestly believe that the biggest challenges cannabis marketers face today are self-manifested. So often we hear about shutdowns and restrictive regulations, and how they get in the way of marketing. Yet I am a firm believer that by flipping the lens, we can use these regulations, challenges and hardships to spur creativity and create truly groundbreaking work. I encourage all cannabis marketers to color outside the lines and set the textbooks on fire; to go out there and use these perceived handcuffs as a source of inspiration and power. 

A cannabis trade/social justice organization that you support.

Business is the most significant force for change in our current world; it’s the power we as entrepreneurs and employees have to create and move towards the world we want to live in.

Cannabis Doing Good helps businesses understand and guide that, and I am a big fan of their work. Here at Grasslands, our Diversity-In-Marketing Internship Program helps diversify our own perspectives on public relations and marketing, and it is one way we are contributing to the world and industry we want to see.

A recent project you’re proud of.

Every year Grasslands designs and prints a physical, poster-size annual calendar as a part of a direct mail campaign. We work with local artists, designers and an in-house writing team to make one of the coolest pieces of swag out there. I have a passion for the analog, and breathing new life into a medium that is often regarded as outdated and turning that into art is a truly gratifying exercise. And then to see our friends and clients hang the calendar on their walls is remarkably rewarding.

Someone else’s project you admired recently.

I always admire brands that are good at building community—especially anytime a brand focuses on building a community around their products, their values, and the way they see the world. Some examples in cannabis include Cookies—the way people tattoo themselves and are so proud to associate themselves with Berner—and Veritas Fine Cannabis—the way they host events at Red Rocks and partner with lifestyle brands like Icelantic and Oskar Blues. My absolute favorite, non-cannabis brand: Liquid Death. It’s bold, audacious, unbelievably over-the-top, yet accessible. A heavy metal water brand in a can—it doesn’t get much better than that. 

Someone you admire in cannabis who’s doing great things.

Ben Walters at Pioneer Index is doing really great work around measuring the performance of cannabis brands’ marketing programs. His group is expanding access to marketing metrics that goes so far beyond the more readily available point-of-sale data. I am thrilled to see how the Pioneer Index continues to establish itself as a gold standard for understanding cannabis brand salience. 

A movie, TV show, music or food you most enjoy pairing with cannabis.

Without a doubt, it has to be Friendsgiving. Having friends and the community come together while eating delicious food is something I love. One of the reasons behind my love for Friendsgiving is the THC pumpkin pie we made at Sweet Grass. Pro tip—eat the pie before dinner to encourage the munchies, so you and your guests don’t fall asleep immediately after dessert.

What you’d be doing if you weren’t in the cannabis industry.

Cannabis marketing is a passion of mine, and I have always been fortunate enough to find a place for myself in industries that are interesting and that I’m passionate about. If I wasn’t in the cannabis industry, I would be working in marketing for another industry that I love, likely outdoors or fashion, telling folks why that’s the best industry to work in. That said, if the job and lifestyle were sustainable—and less disappointing to my mother—I would go back to whitewater raft guiding without hesitation.

Inflation reveals that the cannabis industry isn’t untouchable during economic strife.

KRISTINA ETTER Kristina Etter spent 20 years in corporate IT with a niche in mobile technology and IoT in agriculture. Today, she combines her love of technology with a passion for cannabis as the Editorial Director for Cannabis Tech.

Throughout 2020, the industry surprised everyone by not only surviving the pandemic but actually thriving in it. Even industry legend, Tommy Chong, was surprised by the sudden shift that came with the COVID-19 outbreak, as cannabis was deemed an essential industry in most legal states.

Throughout the pandemic, even as the discussions of recession loomed on the horizon, cannabis continued to shine – raking in record-breaking revenues. According to BDSA data, the cannabis industry surpassed $17 million in sales in 2020 – reflecting a 46% increase over the previous year.

When most other industries were floundering, cannabis flourished. Could the recession and inflation finally be coming for cannabis?

IS INFLATION A FACTOR FOR CANNABIS?

While a recent report from Headset explains how inflation isn’t impacting cannabis as much as other industries, the winds may shift as the industry starts seeing more bankruptcies, closures, and layoffs. Inflation is forcing owners to decide between cutting costs or cutting people in a once untouchable space.

Interestingly, despite the sharp increase in costs for cannabis growers, this graph from Headset shows that cannabis prices have stayed relatively steady or even decreased in some markets.

A recent article on Leafly suggests that unstable pricing is merely an economics equation. During the height of the pandemic, cultivators ramped up production to keep up with the increased demand. But, as inflation cuts into consumer pocketbooks, demand has declined, and competition is intense to sell off the excess inventory. In other words, the market is flooded.

Bloomberg quoted BTIG analyst, Camilo Lyon, calling the current state of cannabis a “regulatory recession,” describing it with this statement, “Cannabis, with its many federal and state regulatory restrictions still in place, has been driven into recession by slow-moving policy changes.”

But, another report from GreenGrowth CPAs suggests the industry can’t continue to withstand the impact of inflation much longer. Of the 700 cannabis companies evaluated with this survey, 70% claimed they were attempting to absorb the additional expense, and 30% plan to raise prices.

CANNABIS TECH COMPANIES STRUGGLING

Layoffs and business closures are unfortunate side effects of an economic downturn. Although the cannabis industry has grown to employ more than 420,000 people, several cannabis-centered businesses have announced layoffs in recent weeks.

• Akerna, a cannabis compliance software firm, announced that they would restructure and lay off 59 workers.
• Dutchie, another tech company with over 700 employees, announced a plan in June to reduce its workforce by 8%.
• Eaze also laid off 25 people in June of this year.
• At the beginning of the year, laid off 150 employees in Vancouver.
• Weedmaps recently announced plans to cut 10% of its staff, sighting a “widespread slowdown” in legal cannabis.

CANNABIS PRODUCERS TAKING A HIT

Many producers are also struggling. A report published last month on EisnerAmper reads,

“Growers have especially been affected by the adverse effects of the pandemic, as well as the war in Ukraine. Ukraine and Russia export 28% of the world’s fertilizers, and wartime disruptions and economic sanctions have significantly reduced those supplies, causing the price of fertilizers to double in some cases. The largest cost increases have been attributed to labor, where wages have increased by 14% on average. Companies have been forced to increase wages in order to keep pace with competitors and maintain employees.”

Unlike other industries, cannabis-based businesses do not get the luxury of writing off their business expenses or claiming depreciation on their assets. So, simple economics tells us that when the cost of doing business goes up, either consumer prices go up, operating costs go down, or company profits suffer.

And it appears that may be the case in cannabis. A recent North Bay Business Journal article references data collected in a National Cannabis Industry Association survey. Of 396 cannabis operators surveyed, 37% claimed they were not profitable.

Other reports also point to the bottom falling out from under mature markets such as Washington, Oregon, and Colorado, as high taxes and a saturated market make competition extraordinarily stiff. The Colorado Department of Revenue reported that marijuana sales in April 2022 totaled just $153 million, a 25% decrease from the same month in 2021. Colorado’s largest cannabis producer, Veritas Fine Cannabis, recently announced the closure of one of its three cultivation facilities and laid off 33 people.

An article from the Colorado Sun recently points to a consolidation in the Colorado cannabis space, noting a decline in collected cannabis taxes. One company, TweedLeaf, had its licenses suspended due to unpaid taxes and subsequently closed its doors at seven retail locations.

CORRECTING THE COURSE

Without question, the cannabis industry exploded in its first decade. From 2012 to 2022, the industry experienced unprecedented opportunities and rapid expansion. But, as US consumers tighten their purse strings to adjust to the rising prices of essential goods, retail cannabis is suffering a loss.

Business owners are struggling to hold on while they wait for federal legalization. A severe lack of financial services, unfair and exorbitant taxation, and a cash-only format are strangling the industry.

The Game is Far from Over

Yet, while sales statistics and tax revenues may decline in mature markets like Colorado and California, it’s also important to note that other markets are still coming online despite the lack of federal support. Rhode Island approved retail cannabis this year, and several other states have ballot initiatives on the slate for November, including:

• Arkansas
• Maryland
• Missouri
• Nebraska
• North Dakota
• Oklahoma
• South Dakota

The retail cannabis industry has been a novelty for a decade, but at its roots – it’s still a business. While early adopting states may continue to see a decline in the coming years, from a broader, nationwide perspective, the industry is still growing. New markets, along with new and expanding growers in existing markets, should take note to keep operating expenses and overhead low.

BUY USED CANNABIS PROCESSING EQUIPMENT

Naturally, frugal business owners are looking to cut costs, but most times, walking a tightrope between expanding operations and reducing expenses isn’t an easy task. As such, new markets should be taking advantage of the great cannabis consolidation by looking to repurpose used equipment. As businesses close their doors and start liquidating their assets, buying used cannabis processing equipment is becoming easier.

If your company is looking to purchase used cannabis equipment, or if you have equipment to liquidate, contact Cannabis Tech today at info@cannabistech.com.