Tumbleweed
, Durban Kush #8, Miracle Alien Cookies, Peach Crescendo #2, Strawberries N Cream, Unicorn Poop, White 99
Twin Peaks
Gastro Pop #4
A Cut Above
Big Bubba Diesel, Durban Kush #8, El Chivo #4, Gelato 41, Sour Diesel, White 99
ANNA
El Chivo #4, Malibu Mirage, RUN, Veritas Cookies
BUDS LTD
Durban Kush #8, Strawberries N Cream, White 99
Berkeley Dispensary
Miracle Alien Cookies
Best High
, Bananaghani, Gastro Pop #4, Sherb Crasher, Unicorn Poop
Blue Heron
Durban Kush #8, El Chivo #4, White 99
Buku Loud
Bananaghani, Durban Kush #8, Peach Crescendo #2, Sherb Crasher
COS Confidential
El Chivo #4, Forza Sans Souci #4, Muffinz Breath #1, RUN, Slurricane, Space Gello, WOF
Canna Cabinet
Big Bubba Diesel, Durban Kush #8, El Chivo #4, Gastro Pop #4, Lava Breath #2, Malibu Mirage, Miracle Alien Cookies, OZ Kush, Pineapple Blast, RUN, Sour Diesel, Strawberries N Cream, Triangle OG, Unicorn Poop, White 99
Cannabicare
Frozen Dessert, Gastro Pop #4, RUN, Sour Diesel, Sueno
Cherry Peak
Bananaghani, Big Bubba Diesel, Cake Pop, Cereal Barz, Cherry Diesel, Cherry Punch, Durban Kush #8, El Chivo #4, FUN, Forza Sans Souci #4, Gastro Pop #4, Gelato 41, Grape Gasoline S1, MIL, Malibu Mirage, Miracle Alien Cookies, Peach Crescendo #2, RUN, Slurricane, Sour Diesel, Sour Rado, Strawberries N Cream, Sueno, Sunset Drive, Super Sour Lemon, Triangle OG, Unicorn Poop, Veritas Cookies, White 99
Colorado Harvest Company
Bananaghani, Cereal Barz, Durban Kush #8, El Chivo #4, Gastro Pop #4, Gelato 41, Malibu Mirage, Strawberries N Cream, Veritas Cookies, White 99
Euflora
, Dosilato #8, Durban Kush #8, Super Sour Lemon, Veritas Cookies
Herbal Healing
Big Bubba Diesel, Gelato 41, Lava Breath #2, Malibu Mirage, Veritas Cookies
Higher Grade
FUN, Forza Sans Souci #4, OZ Kush, Sherb Crasher, Slurricane
Kika Kush
Malibu Mirage, Sour Diesel, Triangle OG, Veritas Cookies
Kind Meds
Cake Pop, Muffinz Breath #1, Yuk Mouth
Kush Masters
Durban Kush #8, El Chivo #4, White 99
Livgreen
Bananaghani, Big Bubba Diesel, Cake Pop, Durban Kush #8, El Chivo #4, FUN, Gastro Pop #4, Grape Gasoline S1, Malibu Mirage, Miracle Alien Cookies, Muffinz Breath #1, Sherb Crasher, Strawberries N Cream, Triangle OG, Veritas Cookies, WRZ, White 99, Yuk Mouth
Lucky Monkey Buds
Forza Sans Souci #4, Muffinz Breath #1
Magnolia Road
Bananaghani, Big Bubba Diesel, Cake Pop, Durban Kush #8, El Chivo #4, Forza Sans Souci #4, Frozen Dessert, Lava Breath #2, MIL, Malibu Mirage, Muffinz Breath #1, OZ Kush, Peach Crescendo #2, RUN, White 99
Magnolia Road
Bananaghani, Big Bubba Diesel, Cake Pop, Cereal Barz, Cookies N Cream, Durban Kush #8, El Chivo #4, FUN, Forza Sans Souci #4, Gastro Pop #4, MIL, Malibu Mirage, Miracle Alien Cookies, Muffinz Breath #1, OZ Kush, Peach Crescendo #2, Peking Duck #6, RUN, Sherb Crasher, Slurricane, Sour Diesel, Space Gello, Strawberries N Cream, Sueno, Super Sour Lemon, Triangle OG, Unicorn Poop, Veritas Cookies, White 99
Makena
Bananaghani, Cereal Barz, Slurricane, Space Gello, Wedding Crasher
Native Roots
Bananaghani, Cake Pop, Cereal Barz, Cookies N Cream, Durban Kush #8, El Chivo #4, FUN, Forza Sans Souci #4, Frozen Dessert, Gastro Pop #4, Lava Breath #2, Malibu Mirage, Miracle Alien Cookies, Muffinz Breath #1, OZ Kush, Peach Crescendo #2, Peking Duck #6, Pineapple Blast, RUN, Sherb Crasher, Slurricane, Sour Diesel, Sour Rado, Space Gello, Strawberries N Cream, Super Sour Lemon, Triangle OG, Unicorn Poop, Veritas Cookies, WOF, Wedding Crasher, White 99
Peak North
Bananaghani, Cake Pop, Gastro Pop #4, Grape Gasoline S1, Super Sour Lemon, Veritas Cookies
Rino Supply
Cake Pop
Ripple
Cherry Diesel, Durban Kush #8, Muffinz Breath #1, Yuk Mouth
Rocky Mountain Cannabis
Rocky Mountain Cannasol
Strawberries N Cream, White 99
Rocky Road
Cake Pop, Gastro Pop #4, Unicorn Poop, Veritas Cookies, White 99
Roots RX
Gastro Pop #4, Sour Diesel, Unicorn Poop
Roots Rx
Bananaghani, Cake Pop, Cherry Diesel, Durban Kush #8, FUN, Gastro Pop #4, Muffinz Breath #1, Slurricane, Sour Rado, Strawberries N Cream, Strawberry Shortcake, Triangle OG, WOF, White 99, Yuk Mouth
Solace Meds
Cereal Barz, Slurricane, Space Gello
Star Buds
Bananaghani, Big Bubba Diesel
TGS
, Big Bubba Diesel, Cookies N Cream, Durban Kush #8, El Chivo #4, Garlic Breath, Gastro Pop #4, Gelato 41, Lava Breath #2, Malibu Mirage, Miracle Alien Cookies, Peking Duck #6, Pineapple Blast, Sherb Crasher, Slurricane, Sour Diesel, Sour Rado, Strawberries N Cream, Sueno, Super Sour Lemon, Unicorn Poop, White 99
The 404 Dispensary
Bananaghani, Big Bubba Diesel, El Chivo #4, Lava Breath #2, Malibu Mirage, Slurricane, Veritas Cookies
The 64 Store
Forza Sans Souci #4, Gastro Pop #4, Super Sour Lemon, Triangle OG, Unicorn Poop
The Dispo
Cereal Barz, Durban Kush #8, El Chivo #4, Gastro Pop #4, Miracle Alien Cookies, RUN, Slurricane, Sour Diesel, Sour Rado, Strawberries N Cream, Super Sour Lemon, Triangle OG, WOF, White 99
The Happy Camper
Bananaghani, Big Bubba Diesel, Cake Pop, Forza Sans Souci #4, MIL, Muffinz Breath #1, Sour Rado, Super Sour Lemon, Veritas Cookies

December 10, 2021

How cannabis companies can save money on packaging

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By Bart Schaneman, Editor

December 10, 2021

Image depicting packaging

(Editor’s note: This is the first installment in a three-part series on marijuana and hemp packaging solutions.)

Complying with regulations while sourcing and working with cost-effective, attractive marijuana or hemp packaging requires a deft touch, which can’t be done by simply throwing money at the problem.

Packaging is a major cost for any marijuana or hemp company that makes products, and a few considerations to cut expenses include:

  • Buying in bulk to get better pricing.
  • Keeping a close eye on the packaging manufacturer to ensure quality.
  • Dialing in forecasting to accurately order the correct supply.
  • Selecting affordable base materials and simplifying the process as much as possible.

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That’s just a brief summary of what marijuana and hemp industry stakeholders suggested for saving money on packaging.

Below are tips and advice from cannabis companies across the country. Their quotes have been edited for length and clarity:

Eric Leslie, chief marketing officer and co-owner, Cheeba Chews, Boulder, Colorado

The cheapest option isn’t always the most cost-effective.

Print errors, random defective units and inconsistencies of appearance are all variables that seem to pop up more often when we work with the cheapest providers available.

You really have to micromanage the orders to ensure they are consistently right.

Always have a backup option. Sometimes you can see price creep in your orders, as a supplier tries to earn your business with a low-ball offer.

They eventually need to gain those pennies back, and you’ll find that in small increments on your subsequent orders.

Keep them in check with a competing bid, if you think a price is getting to an uncomfortable place.

Jonathan Persofsky, co-founder and CEO, Green Gruff, Toronto

Forecast accurately so you can buy in larger quantities and avoid excess packaging that doesn’t bring value.

Customers today are far more environmentally conscious and don’t want to receive useless excess.

Shannon Reed, chief marketing officer, Omura, Santa Monica, California

No. 1 is usually package size and weight.

By maintaining the lowest possible footprint, you are then also able to reduce shipping costs, storage space, production time and, of course, be more eco-friendly.

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Limiting the number of colors printed and print methods reduces the amount of work for the producer and can make a big impact.

Selecting the correct base material is critical.

If an incorrect paper is chosen, it could lead to additional interventions, which cost money each time, and additional tertiary packaging.

Work with the manufacturer to ensure the packaging design is easily automatable to reduce the numbers of touches per assembly.

Samip Shah, chief operating officer, C3 Industries, Detroit

The most important consideration is the quality of the material and construction – protecting the product is paramount and the reason we’re looking for packaging in the first place.

Margin profiles differ state by state, product to product, so understanding how packaging costs fit into a product’s overall wholesale price is critical for brands to be competitive.

Optimize and reduce the number of overall packaging base stock-keeping units (SKUs) , even if the designs and labeling might differ product to product.

Before ordering packaging, predict how labor will fill the packaging and how that fits into the overall plan: High-design, complex packaging likely will result in increased labor costs and frustrated operations teams.

Trent Woloveck, chief commercial director, Jushi Holdings, Boca Raton, Florida

The best way to save on packaging costs is to find simple and attractive packaging solutions. The packaging should serve the product.

A lot of cannabis companies lose sight of this and get caught up in flashy or expensive packaging fads, many of which are environmentally wasteful.

The packaging should be durable and aesthetically pleasing to entice customers.

But don’t lose sight of the big picture – cannabis customers are looking for high-quality, affordable and effective products. They don’t want to incur extra costs because of expensive, unnecessary packaging.

Avoiding expensive packaging helps to keep prices reasonable for customers or patients while operating companies yield higher margins.

If the packaging is compliant in multiple states, that saves us from having to enter more partnerships and reduces our overall costs.

When considering and negotiating partnerships, it is wise to take advantage of data analytics and leverage your buying power by conveying current and projected volumes. For example, costs are lower with bulk purchases.

Additionally, utilize blanket or consignment orders when it is possible. This will accommodate limited storage capabilities while also taking advantage of bulk pricing.  

Lauren Claire Smith, director of product and innovation strategy, Plus, Pacifica, California 

Global supply-chain issues have increased costs for all cannabis companies, particularly in packaging.

You can lower your cost by seeking out domestic production – when possible.

Erin Mulkeran, product and special projects manager, High Life Farms, Chesaning, Michigan

While not always the most aesthetically pleasing, it helps if you do not fully customize the packaging – i.e., strain names, flavors, etc. – so the packaging can be used across multiple SKUs for that product line.

Austin Stevenson, chief innovation officer, Vertosa, Oakland, California

Proper management of the cost of goods sold is critical to success in cannabis packaging.

One immediate way to save costs is to utilize turnkey products rather than custom packaging. Less is more, quite literally.

Brands often use an excessive amount of packaging to remain compliant, which can then create a horrible customer “opening” experience as well as excessive waste.

To save costs, spend time upfront exploring all compliance solutions and don’t leave any stone unturned as you work to a simple and compliant solution that results in less waste.

Thomas Winstanley, vice president of marketing, Theory Wellness, Great Barrington, Massachusetts

Understand your burn rate, forecast your needs and align on lowering costs by increasing volume.

This is easier said than done given regulatory requirements and constantly evolving product lines.

The inherent risk is getting stuck with slow-moving packaging that takes up space based on a poor forecast.

Matt Jacobs, director of front of house operations, Veritas Fine Cannabis, Denver

Packaging vendors will typically offer price breaks at various quantities, but this requires a certain level of preparation and planning ahead to fully maximize value here.

Once Veritas identifies where price breaks exist, we will plan ahead and place bulk orders for packaging that might not be introduced immediately but will be used later down the line for future projects.

This can be challenging to take advantage of, however, without the ability to analyze future projects and plan ahead.

Bart Schaneman can be reached at bart.schaneman@mjbizdaily.com.

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