MJBizMag July 2021 - 54

SCALE
HOW IT
SUITS YOU
and you're going to have interstate
commerce, " Goldstein said.
That prediction made Stillwater want
to spread facilities across the country,
and Michigan offers a solid location
with a good-sized market, according to
Goldstein.
NAVIGATING STATE REGS
The cannabis industry is notorious for
having business regulations that vary
wildly from state to state. That can
either be a huge
challenge for a
company looking
to expand-or,
with the right
person or team
dedicated to
understanding
the differences-a
problem that can
be easily solved.
Sunderstorm's compliance team helps
Cameron Clarke
its executives navigate the complexity
of state regulations. For example, the
team would discourage leadership from
entering a state such as Florida, which
has significant barriers to entry for a new
MMJ business.
" But we don't find the regulatory
framework daunting, " Clarke said.
For its part, Curaleaf's Select has plans
to sell products in 34 states, and Forni
said discerning the regulatory differences
in each market can be a challenge.
" They all reinvent the wheel, " he said.
" There's no set regulatory framework from
a national standpoint. Everyone's trying to
make up their own rules and regulations. "
For example, some states will allow
only 800 milligrams of THC in one
container, while others permit up to
1,000 milligrams.
Curaleaf has several teams that
work together on expansion, but the
commercialization team focuses on
national product launches.
Goldstein said he likes Michigan's
regulatory setup, adding, " There's
nothing too onerous. "
The state has fewer advertising
restrictions than Colorado. Michigan
also allows social consumption lounges,
which could be a boon for infused
product companies.
VETTING PARTNERS
Most cannabis edibles brand expansions
happen via a partnership in a new state.
That can work well if the new partner
upholds the company's brand standards.
For Jen Dooley, chief strategy officer at
Chicago-based Green Thumb Industries
(GTI), which
now owns edibles
brand Incredibles,
being vertically
integrated
removes the trust
factor from the
business. Unlike
infused product
manufacturers
that source outside cannabis, GTI does
not have to work with partners across the
supply chain-nor find itself in a tough
spot if items don't arrive as promised.
But as the brand expands into new
Jen Dooley
markets, Dooley said GTI is open to
working with new partners.
Her goal is to create the same
experience for consumers no matter
where in the country they might find
Incredibles, ensuring all products taste
the same in every state.
" We have to find partners that we really
trust and care about quality, " she added.
A red flag for Knoblich Palmer at
Kiva Confections is a potential partner
who wants to get to market as quickly
as possible and wants to do it on the
cheap. She's hoping the two companies'
philosophies align.
" We're looking for quality, consistency
and flavor, " she said.
The amount of THC allowed in a given
edibles package varies by state. Courtesy Photos
54 MJBizMagazine | July 2021
MJBizMag July 2021

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