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Quality From Canada

Inside Red Light Holland’s Plan to Bring Psilocybin Products to the Global Market

By Pam Chmiel
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Red Light Holland (CSE: TRIP) has established its foundation in the Netherlands, where psilocybin truffles, the underground sclerotia of psilocybin mushrooms, are legally permitted for cultivation and sale. The above-ground mushroom is prohibited, but the truffle is treated differently under Dutch law, despite delivering the same psychoactive effects.

“It’s really the same thing, with the same effects,” says CEO Todd Shapiro, “but because it forms underground, it can be sold in compliance with Dutch law.”

From its cultivation facility, RLH distributes truffles through a wholesale partnership to over 150 wellness shops under its brands iMicrodose and Maka. “We like to think of them as wellness shops rather than smart shops, like they are referred to in Holland,” Shapiro explains, underscoring the company’s emphasis on education, QR-code-based information, and community engagement. While regulations prevent RLH from turning truffles into edibles such as gummies or chocolates, its vacuum-sealed, raw truffles have become a steady revenue stream. “They’re a bit walnut-y,” Shapiro notes, “but they sell well and people rarely complain.”

 

Canada: Positioning for a Regulated Future                                                           In Canada, RLH is preparing for the potential regulatory shift that could pave the way for the legalization of psilocybin products. The company has already developed psilocybin gummy formulations, but for now, it only sells them as functional mushroom products that don’t contain psilocybin. This approach not only helps build brand recognition, but it also keeps the company R&D-ready, allowing it to move quickly if Health Canada establishes a legal framework for psilocybin.

 

United States: Research Partnerships for Validation                                        South of the border, RLH has partnered with Irvine Labs, a DEA-registered laboratory in California. The lab is testing RLH’s truffles, imported from the Netherlands, to confirm potency, safety, and pharmacological value. The partnership is central to RLH’s long-term vision of formulating psilocybin capsules tailored to various needs, including microdosing, therapeutic use, and wellness.

Shapiro frames the multi-pronged approach as deliberate groundwork for the future. “The Netherlands gives us a legal, revenue-generating business today. Canada positions us for tomorrow. And in the U.S., we’re laying the foundation with science so that when the regulatory environment changes, we’ll be ready.”

 

Research & Consumer Insights                                                                                In addition to building commercial distribution, Red Light Holland is investing in research that could help shape future regulations. Through its iMicrodose app, the company collects voluntary, anonymized data from consumers in the Netherlands on how they are using psilocybin truffles, whether for trauma, pain management, recreation, or general wellness. Shapiro points to a substantial interest in using psilocybin to tame menopause symptoms from their data.

 

“We ask our consumers if they’d like to participate in the app and give us data on how they’re using it,” explains Shapiro.

 

The data was analyzed in collaboration with Drug Science UK under the leadership of renowned neuroscientist Professor David Nutt, one of the most respected voices in psychedelic research and policy. The published study confirmed that RLH’s data provided meaningful evidence of consumer benefit. “A lot of it is anecdotal research, which is key research,” says Shapiro. “It’s almost like its own Phase 1.”

The findings also carried a regulatory impact. RLH presented its consumer data to lawmakers in Oregon as they developed the state’s psilocybin program, contributing to the inclusion of microdosing language in the final bill. “This was a huge win for the company,” Shapiro says. “It adds credibility, validation, and shows how we can responsibly influence policy through science-backed data.”

For RLH, consumer research serves a dual purpose: it provides a self-regulatory framework for the safe distribution of products today, and it informs the company’s plans for future formulations as regulations evolve.

 

Standardization & Medical Pathways                                                                   Red Light Holland is also working behind the scenes to prepare psilocybin for the medical market. The company has partnered with labs in both Canada and the U.S. to analyze and standardize its products, laying the groundwork for future pharmaceutical-style formulations.

In Canada, RLH has collaborated with Seacrest Laboratories in Montreal, securing multiple permits for the import of psilocybin from Health Canada. These projects have produced certificates of analysis (COAs) to understand psilocybin content better and explore standardized dosing formats. “We’re learning about the standardization of our product,” says Shapiro, “whether that eventually becomes ground into powder form or an extract. The end goal is to move toward a consistent, pill-like product for microdosing.”

In the U.S., RLH works with Irvine Labs in California, a rare FDA-approved, DEA-compliant facility, to advance similar objectives. The partnership underscores RLH’s long-term ambition: validating its Dutch truffles as a source for medical-grade psilocybin products that could one day be distributed under compassionate care or special access programs.

“It’s a slow path,” Shapiro admits. “No one would normally start a business that they could only sell in about one percent of the world. But if you want to be an outlier versus an outlaw, you take the careful approach by generating sustainable revenue in Holland while advancing science and regulations in North America.”

 

Slow and Steady                                                                                                    While regulatory doors are starting to crack open in places like Germany, Australia, New Zealand, and the Czech Republic, RLH isn’t rushing in. Shapiro is careful to point out that the company has no interest in repeating the mistakes of many cannabis operators who built massive facilities before the market was ready, only to burn through cash and collapse in oversaturated conditions. Instead, RLH is pacing itself, positioning products, standardizing formulations, and preparing for the moment commercialization becomes viable.

“It’s frustrating for some investors who want instant results,” Shapiro admits, “but the reality is we can only sell in one percent of the world right now. We’d run out of money if we tried to scale too fast. Every move has to be deliberate.”

For RLH, the mission remains steady: take psilocybin from the underground to the mainstream. Until regulations evolve, the company is committed to cautious progress, ensuring it will be ready to deliver once legalization expands.

 

Market Readiness                                                                                                       To help normalize psilocybin, RLH has leveraged functional mushrooms with its Happy Caps grow kits and mushroom gummies to establish brand awareness. Happy Caps started as homegrow kits for lion’s mane, shiitake, and oyster mushrooms, products that ended up on the shelves of Costco and other major Canadian retailers. The idea is simple: just as Canada allowed adults to grow cannabis at home after legalization, psilocybin might one day follow a similar path. If that happens, RLH will already be positioned with both the distribution channels and consumer familiarity to shift from lion’s mane to psilocybin.

More recently, RLH launched mushroom gummies in Canada made with a lion’s mane and shiitake blend. These gummies carry a Health Canada–approved NPN number, which allows the company to make validated health claims, such as immune-boosting and antioxidant properties that most competitors cannot legally advertise. Shapiro says this not only sets RLH apart in the crowded functional mushroom category, but also provides a ready-made blueprint for psilocybin gummies once regulations allow. “It’s a much easier way to consume than chewing on a raw truffle,” he explains. In other words, today’s Happy Caps gummies are tomorrow’s psilocybin edibles.

In parallel, RLH is deepening its scientific foundation through a partnership with Irvine Labs. The company has already imported truffle samples for testing, focusing on potency, shelf-life stability, and consistency—critical steps in moving psilocybin from a naturally variable product to a standardized medicine. “If you’re microdosing for medical reasons, you want to be sure each dose delivers the same effect,” Shapiro explains.

That requires rigorous testing under pharmaceutical standards, much like cannabis research has revealed the complexities of the entourage effect.

Shelf stability has emerged as one of the biggest challenges. Like fresh produce, truffles degrade quickly if not kept under controlled conditions. For RLH, understanding how to preserve potency over time is key to developing future formulations, whether in pill or extraction form. “Consistency is always the goal when it comes to drug discovery,” Shapiro notes.

 

Strategic Growth Through M&A                                                                    Beyond consumer products and R&D, RLH is also exploring mergers and acquisitions as a path to scale. Shapiro says the focus is on acquiring brands with strong recognition and the potential to be cash flow positive, rather than companies burning capital. “A great Instagram account and loyal customers can be half the battle,” he notes. The idea is to consolidate products, share resources, and expand distribution while maintaining financial discipline.

Still, opportunities are scarce. After reviewing more than 40 companies over the past two years, Shapiro says nearly all were losing money. The demands of major retailers compound the challenge—fulfilling large orders requires significant upfront inventory and the ability to survive long payment cycles, which can stretch 90 days or more.

While RLH has heard of pioneering efforts, such as Oregon’s first psilocybin edibles, local ownership laws, and public company reporting requirements make direct entry into that market difficult. For now, the company continues to evaluate partnerships and acquisitions that align with its strategy, while supporting others that advance the industry. As Shapiro puts it, “Rising tides lift all boats.”

 

Looking Ahead                                                                                                        Red Light Holland is narrowing its focus on CPG products, leveraging its experience in the Netherlands while preparing for a global market. While the company continues some cultivation, its strategy centers on creating standardized, science-backed psilocybin products that can reach more people and address the growing mental health crisis. “We’re a psilocybin company at the end of the day,” says Shapiro, “focused on products that can help people, responsibly and sustainably, while navigating complex regulations and building a foundation for future growth.” By combining research, consumer insights, careful regulatory planning, and selective M&A, RLH is positioning itself to take psilocybin from niche wellness shops to mainstream markets worldwide.

Cannabusiness Sustainability

Taking Cannabis Global: Inside Somai Pharmaceuticals’ Multi-Country Strategy

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In an industry defined by local operators struggling to stay afloat and confined within their borders, Michael Sassano, founder and CEO of Somai Pharmaceuticals, has created a blueprint for scaling cannabis worldwide with pharmaceutical discipline and regulatory agility. With headquarters in Lisbon and operations in 12 countries today, Somai is preparing to reach 18 by year’s end.

The company has already secured distribution in Germany, the UK, Italy, Australia, and New Zealand, with France recently authorizing Somai’s products for its growing patient program. By the end of this year, six more markets, including parts of Eastern Europe, will be added to the roster.

 

“Every new country is like starting a company from scratch,” Sassano said in an interview. “You have to understand not only the national regulations but also how local medical communities perceive cannabis, how prescriptions are written, and what distributors are required to do. There’s no one-size-fits-all approach.”

 

Operating across borders has taught Somai how to adapt to widely different healthcare environments. In Germany, cannabis is covered by insurance in some instances, requiring negotiations with health funds. In the UK, the market is dominated by private clinics and cash-paying patients. Australia and New Zealand have highly structured import programs, while France is still moving cautiously through pilot projects.

This incremental, country-by-country buildout has given Somai real-world experience operating across multiple regulatory systems, positioning the company as one of the most credible voices on international cannabis harmonization.

 

High Standards Are Key

At the core of Somai’s global strategy is its pharmaceutical manufacturing facility in Lisbon, certified under EU-GMP (Good Manufacturing Practice). This certification is a mandatory requirement for selling medical-grade cannabis products in the EU and most international markets.

 

“EU-GMP is the gold standard,” Sassano says. “Without it, you simply can’t access the bulk of the world’s regulated medical markets.”

 

This distinction highlights one of the biggest differences between the US and international cannabis industries. In the United States, the market is fractured by a state-by-state model, with companies forced to duplicate infrastructure in every new state because products can’t cross state lines. By contrast, Somai can centralize manufacturing in Portugal and distribute to multiple countries. Products produced in Lisbon are eligible for export across Europe, Australia, New Zealand, South Africa, Brazil, and other compliant markets.

Unlike US operators who may quickly launch products like gummies with minimal oversight, a EU-GMP market-authorized medicine requires approximately two and a half years of validation, stability testing, and regulatory review before reaching patients. The payoff is consistency, safety, and the ability to meet the expectations of regulators, physicians, and patients alike.

By owning EU-GMP manufacturing and pairing it with distribution partnerships across 12 (soon 18) countries, Somai is among a select handful of cannabis companies capable of bringing pharmaceutical-grade products to the global market.

 

Strategic Partnerships, Cultivation, and Research

Somai’s global growth relies on a carefully balanced supply chain strategy that combines in-house cultivation with an extensive network of international partners. In addition to cultivating indoor flower at its own facilities, it also works with about 15 cultivation partners worldwide.

In most European markets, pharmaceutical cannabis must move through distributors before reaching pharmacies. Somai works with leading distribution companies, ensuring products reach doctors and patients in compliance with local laws.

Research partnerships are also part of Somai’s business strategy. The company collaborated with a university in Lisbon to conduct clinical research evaluating its manufacturing process, ensuring consistency from one product to another and from batch to batch. This validation of consistency is crucial for Somai to claim medical status and prove it.

“There are really only five global operator brands today in the market, and then a lot of localized brands, clinic brands, and white-label brands,” Sassano notes. “Our focus is on building a pharmaceutical brand with true international reach.”

 

Pharmaceutical Rigor from the Start

“In pharmaceuticals, quality is binary,” Sassano explains. “Either you meet the exacting standards or you don’t. There is no middle ground.”

This applies from raw material sourcing to batch release protocols. Unlike the US, which often requires independent third-party lab testing, the EU herbal medicine framework permits EU-GMP-certified facilities, such as Somai, to conduct all necessary testing in-house. Somai operates its own EU-GMP lab, a rarity in cannabis but standard in pharma.

The lab operates under strict oversight from a Qualified Person (QP), who leads the independent Quality Assurance (QA) department. The QA/QP team conducts regular onsite reviews of all procedures and documentation, ensuring that production, laboratory testing, and batch releases adhere to rigorous protocols. “Nobody can influence the lab or its reports,” Sassano emphasizes. Each product undergoes multiple checks: raw material testing, formulation verification, and random dosage confirmation.

Even packaging and labeling are treated with pharmaceutical precision. Labels must comply with each country’s language and dosage requirements, and patient information leaflets are tailored to the regulatory environment. “It might seem like a small thing, but one mistake on a label can stop a shipment at customs and delay patient access by months,” Sassano notes.

Sassano supports the rigorous framework. “Doctors will only prescribe, and patients will only trust cannabis if it meets the same standards as any other medicine on the shelf.”

 

Navigating a Patchwork of Regulations

Some nations allow doctors to prescribe freely, while others limit access to a narrow list of conditions. Even within the same country, patients may face dramatically different experiences.

Sassano points to Italy as a case in point. While prescriptions are permitted, the way pharmacists prepare medicines can vary region by region. “A patient in Milan might get a different preparation than a patient in Rome, even with the same prescription,” he explains. “That creates inconsistency for patients and makes it extremely challenging for producers to standardize.”

The difference between magisterial preparations and finished dosage form medicines illustrates the unevenness of the system. In newer markets, such as the UK and Australia, patients now receive finished dosage products that are fully packaged, labeled, and ready to use, just like any other pharmaceutical. But in older systems, pharmacists were often required to compound medicines themselves, a legacy from the early years when manufacturers didn’t exist and flower was the only product available.

Germany still clings to this model. Pharmacy compounding laws require pharmacists to fill vape cartridges or re-bottle oils instead of allowing manufacturers to deliver standardized, child-proof, finished dosage forms directly. “In some cases, they’re literally just swapping a cap, calling it magisterial prep, and charging patients double,”

Sassano notes. “It’s an archaic system that needs to go.”

Despite these hurdles, Sassano sees eventual harmonization as inevitable. “Europe cannot sustain a market where 27 countries have 27 different systems,” he argues. “Over time, patient demand and cross-border trade will push regulators toward standardization. Finished dosage forms are the future.”

 

Global Market Access

Somai’s EU-GMP certification positions it for international distribution. Unlike the US state-by-state system, where borders are closed and infrastructure must be duplicated in each market, EU-GMP allows a single production hub to supply multiple countries. As a recognized pharmaceutical standard, it enables Somai’s products to move across borders into any country that accepts EU-GMP medicines.

This flexibility is critical because cannabis is treated differently around the world. Europe and many international markets have strong herbal medicine traditions, so cannabis extracts fall under the herbal pharmacopoeia as true medicines and are subject to rigorous pharmaceutical rules. In contrast, the US market is closed off under FDA oversight, which historically favors synthetic cannabinoids over botanical extracts.

Still, Somai is positioning itself for future entry. “We’re working with the U.S. Department of Veterans Affairs because there is no federally approved cannabis extract made domestically,” Sassano says. “If cannabis is ever integrated into federal programs, it will need to be a registered medicine, not a dispensary product.”

Beyond the U.S., Somai has already secured FDA-style registrations in countries like Thailand, is pursuing approvals in Japan, and has entered France’s government-controlled medical program, where cannabis is subsidized for patients.

“These are true medicines that can travel cross-border,” Sassano says. “Wherever cannabis is accepted as a medicine, we want to be there.”

 

Conclusion

Michael Sassano’s insights offer a roadmap not just for his company but for the entire industry. “Cannabis is a medicine first,” he emphasizes. “Our responsibility is to show regulators, doctors, and patients that it can be produced, prescribed, and trusted like any other pharmaceutical. Once that trust is established, global acceptance will follow.”

Quick Q&A Recap

Q: Who is Michael Sassano?
A: Michael Sassano is the founder and CEO of Somai Pharmaceuticals, a company scaling cannabis globally with pharmaceutical-grade standards.

Q: What is Somai Pharmaceuticals’ global footprint?
A: Somai currently operates in 12 countries and plans to expand into 18 by the end of the year.

Q: Why is EU-GMP certification important in cannabis?
A: EU-GMP (Good Manufacturing Practice) is the gold standard for pharmaceutical products and a requirement to sell medical cannabis in most international markets.

Q: How does Somai’s model differ from U.S. cannabis companies?
A: Unlike U.S. operators confined by state borders, Somai can centralize manufacturing in Portugal and distribute across multiple countries under EU-GMP rules.

Q: What are the main challenges of international cannabis expansion?
A: Each country has unique regulations, healthcare systems, and distribution requirements, forcing companies to adapt market by market.

Q: How does Somai ensure pharmaceutical quality?
A: The company operates its own EU-GMP-certified lab with strict Quality Assurance oversight, ensuring consistency, safety, and regulatory compliance.

Q: What role do partnerships play in Somai’s strategy?
A: Somai balances in-house cultivation with about 15 global cultivation partners and works with leading distributors to reach doctors and patients.

Q: What is the future of cannabis regulation in Europe?
A: Sassano believes eventual harmonization is inevitable, with standardized finished dosage forms replacing outdated pharmacy compounding practices.

Q: Is Somai targeting the U.S. market?
A: Yes. Somai is collaborating with the U.S. Department of Veterans Affairs and preparing for potential federal approval of cannabis-based medicines.

Target Just Opened the Door — Is Your Brand Compliance-Ready for Mass Retailers?

By Pam Chmiel
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Will Target’s move to sell THC drinks be the catalyst the industry needs to push for higher standards?

Target’s decision to start selling hemp-derived THC beverages marks a major milestone for the cannabis industry and a reality check for brands hoping to follow. Selling into mass retail is not just about scaling production or packaging appeal. It requires proving that your product meets the same safety and manufacturing standards as food, pharma, and cosmetics.

As Darwin Millard, Technical Director at CSQ Certification, explains, “Retailers like Walmart and Target protect their liability by only buying from GMP-certified producers. That certification is their shield.” Without an accredited Good Manufacturing Practices (GMP) certification, cannabis brands may not make it past the first round of vendor qualification.

The cannabis industry has traditionally operated in a silo, selling B2B to other licensed operators that rarely demand third-party certifications. Mass retailers operate differently. They rely on accredited certification programs to verify every layer of the supply chain, from ingredient sourcing to packaging. This mitigates risk and ensures traceability if something goes wrong.

Many hemp brands rely on co-manufacturers already bottling for alcohol and alternative beverage industries, but those manufacturers are often not GMP-certified for cannabis products. Existing food safety schemes, such as SQF or BRC, do not yet recognize cannabinoids as approved ingredients. Target may have overlooked this gap when approving its current selection of hemp beverages, but this is likely to be addressed going forward.

Target’s move could push the entire cannabis supply chain to adopt GMPs to protect consumers and ensure consistent quality. As Millard warns, “It could be the thing that gives our industry its biggest black eye if something goes wrong, or the moment that raises the bar for safety and quality once and for all.”

 

What It Takes To Get GMP Certified

GMP certification is a rigorous, multi-step process that demonstrates a company’s commitment to verified quality and safety standards. While companies may perform internal audits or have business partners review their processes, the most widely recognized and trusted method is third-party certification.

Third-party certification involves an independent organization auditing every aspect of your operation to ensure compliance with established GMP requirements. This provides a clear, objective verification that processes, documentation, and product handling meet global standards.

Not all third-party certifications carry the same weight. Accredited certifications are independently verified by an external authority and recognized internationally as meeting stringent standards for quality and safety. Unaccredited certifications, in contrast, may offer internal assurance but generally do not hold the same credibility with regulators, retailers, or international partners.

For brands targeting mass retail or global trade, third-party certification serves as proof that safety, traceability, and quality standards are adhered to.

 

What Compliance Looks Like

Not only does the cannabis industry need to embrace standards for scaling to mass retail, but it also needs to embrace standards for global trade. That includes accredited GMP certification rather than a certificate from an unverified auditor.

Cultivation falls under Current Good Agricultural Practices (GACP), ensuring that every stage of plant growth and harvest meets rigorous safety and quality benchmarks.

Effective cultivation standards cover both indoor and outdoor grow environments and include strict protocols for:

  • Water quality and irrigation management
  • Equipment sanitation and maintenance
  • Crop protection and propagation materials (including clones, seeds, and tissue culture)
  • Temperature and atmospheric control during drying and curing

Once plants are harvested, the process transitions from GACP to GMP standards, marking the shift from cultivation to manufacturing. “Harvest is the hard line,” says Millard. “Once you start to process the plant in a controlled environment by trimming, curing, or packaging, you’re operating under GMP.”

The CSQ Cultivation program also covers flower handling, grinding, and pre-roll production, but stops short of infused or extracted products. When it comes to post-harvest remediation techniques like irradiation, CSQ doesn’t explicitly prohibit them but requires detailed, documented procedures.

“We treat drying and curing like refrigerated or frozen food storage,” Millard explains. “There are specific temperature and environmental conditions that must be maintained to preserve product safety and quality.”

In the extraction process, standards define best practices for processing and handling cannabinoid materials. Standards cover everything from raw extracts, such as live resin or rosin, to refined materials, including distillate or purified cannabinoids. They also include formulation, risk assessment, and allergen implications for products intended for inhalation, ingestion, or topical use.

 

The Last Mile: Warehousing and Distribution

Once cannabis products leave the manufacturing facility, maintaining safety and quality becomes the responsibility of distributors and warehouse operators. Mass retailers will expect vendors to follow the same high standards throughout storage and transit as they do during production.

Controlled storage environments are a requirement for ensuring product preservation. Temperature, humidity, and atmospheric conditions must be monitored and documented to preserve volatile compounds in concentrates, infused products, and THC beverages, similar to perishable food or beverage items.

Proper warehousing protocols also protect against contamination, degradation, and liability. Companies that can prove systems for handling, tracking, and storing products across the supply chain will have a competitive advantage with mass retailers.

 

Retail Responsibility: Preserving Quality and Mitigating Liability

Once cannabis products reach the retail shelf, the responsibility for maintaining safety and quality shifts to the retailer. Like perishable foods, cannabis products can degrade if not stored under proper temperature, humidity, or lighting conditions. For high-end concentrates or infused products, even minor lapses in any of these factors can significantly impact potency, consistency, and the overall consumer experience.

If products degrade, retailers could face legal liability or incur costly recalls. In some cases, manufacturers may prove that products left the facility compliant with Certificate of Analysis (COA) standards, but without proper storage at the retail level, those standards cannot be maintained.

Standardized operating procedures (SOPs) for storage, handling, and temperature monitoring remove liability from the retailer and make sure consumers receive the quality product they are promised. Batch records, documented storage conditions, and adherence to best practices allow them to demonstrate that they took all reasonable steps to maintain product integrity.

High-end extractors and other manufacturers often worry that retail infrastructure is not yet equipped to handle sensitive products. Improper storage can result in financial losses and reputational damage. Embracing certifications and best practices will become increasingly essential as the industry matures and customers demand higher quality.

Consumers expect cannabis products to be safe, consistent, and accurately labeled. Maintaining quality throughout the supply chain ensures that products match what is promised. Otherwise, what reaches the shelf may be nothing more than THC content with degraded flavor, aroma, or texture, far from the intended experience.

 

Raising the Bar For Cannabis Quality

Target’s entry into hemp-infused beverages marks a turning point for the cannabis industry. Success in mass retail requires rigorous quality standards, including GMP and GACP practices, temperature-controlled storage, and documented SOPs, to protect consumers and retailers while preserving product quality. These practices position brands for mass retail and prepare the industry for international trade, where standards are even more stringent.

Dive deeper into standards with Darwin Millard on the Innovating Cannabis Podcast.

Why Dispensaries Can’t Afford to Neglect HR Compliance

By Daniela Williams
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Most cannabis dispensaries are small businesses. That often means they operate on tight margins and require employees to take on roles outside their typical job descriptions. It’s common for owners or general managers to handle HR and payroll functions themselves. What begins as an understandable cost-saving measure, however, can quickly become disastrous.

As federal rescheduling draws near, the Department of Labor and other agencies will gain clearer jurisdiction to investigate cannabis businesses. Once that happens, minor HR mistakes could bring major consequences. Over one hundred regulatory bodies can touch employment issues, and a single complaint or audit can trigger overlapping investigations.

Across the industry, many dispensaries are inadvertently violating labor laws. Some states, such as New York, require biweekly pay schedules, although weekly pay is also standard. Others misclassify employees as independent contractors, unaware that doing so can trigger major liabilities for unpaid taxes, overtime, and benefits. Even something as simple as how employment forms are stored can become an issue. The I-9, for example, must be completed within three business days, contain no blank fields, and be stored separately from personnel files. Failure to comply can result in fines ranging from hundreds to thousands of dollars per violation.

Benefits administration is another frequent trap. Many small business owners assume that the Affordable Care Act only applies once they reach 50 employees; however, offering any health insurance or benefits can create reporting obligations even for smaller companies. And without formal HR policies or ADA-compliant job descriptions, disciplinary actions or terminations can easily escalate into costly employment disputes.

These issues don’t arise because dispensary owners are negligent; they occur because HR compliance isn’t yet a core focus in the cannabis industry. But as federal rescheduling (hopefully) draws near, the Department of Labor and other agencies will gain clearer jurisdiction to investigate cannabis businesses. Once that happens, minor HR mistakes could bring major consequences. Over one hundred regulatory bodies can touch employment issues, and a single complaint or audit can trigger overlapping investigations.

The smartest operators are already taking note. They’re recognizing that structured onboarding, consistent payroll systems, secure recordkeeping, and correctly classified staffing are essential for long-term stability. Proactively investing in compliance is far less costly than reacting to fines, back pay claims, or reputational damage.

The cannabis industry has fought hard for legitimacy. Ensuring that dispensaries meet the same labor standards as other industries isn’t just about avoiding penalties; it’s also about upholding the rights of workers. It’s about demonstrating professionalism, protecting employees, and building trust with regulators and investors alike. Operators who treat HR compliance as a strategic priority today will be best positioned to thrive in the next chapter of federal oversight.

How Cannabis Moves Around the World: Inside the Global Supply Chain

By Pam Chmiel
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Global cannabis trade is well underway as legalized countries move forward to establish a supply chain infrastructure in a newly formed and rapidly evolving industry. At the forefront of transportation logistics is Cannabilog, an Israeli company led by pharmaceutical industry veteran Yoram Eshel. In an interview, he shared his playbook for building a compliant, efficient, and scalable supply chain for global cannabis import and export trade.

 

The Complex Web of Global Cannabis Trade Regulations

According to Eshel, not surprisingly, the global cannabis trade hinges on regulatory compliance and requires expertise to manage the movement of products across continents. Unlike pharmaceuticals, where harmonized frameworks such as those of the European Union apply across borders, cannabis regulations differ drastically from country to country.

Some nations permit imports, while others ban them entirely. Even within importing countries, the rules vary by product category. “Some will allow flower, others only oil or genetics,” Eshel explains. “It’s never a simple straight line.”

Every aspect of the supply chain requires specific licensing under narcotics laws, from cultivation and storage to import and export. Adding to the challenge is the constant evolution of these laws. For example, Thailand initially embraced its booming local market and export-friendly policies, but the new government abruptly switched course and limited cannabis use to medical purposes only. In addition, Thai producers seeking to export face roadblocks because European authorities do not recognize their local GACP certifications, which are based on “Good Cultivation and Harvesting Practices for Medicinal Plants.”

Eshel emphasizes that failing to keep pace with changing laws can be costly.

 

“If you export cannabis products to another country and they can’t clear customs, the shipment is destroyed. There’s no way back.”

 

Medical Cannabis Must Meet Pharmaceutical Standards

The second major pillar of the international cannabis trade is adherence to pharmaceutical-grade standards. “Governments treat medical cannabis as a medicine,” says Eshel. “It’s exactly like Tylenol or any other drug.”

Even though cannabis has not gone through the traditional drug registration process, regulators treat it as a pharmaceutical product, which means it must comply with strict Good Distribution Practice (GDP) requirements. That includes temperature control, data logging, and rigorous quality management throughout the supply chain. Every shipment is audited and must be approved by a Qualified Person (QP) on the receiving end before entering the market. If any quality parameters are unmet, the product is rejected.

Logistics providers like Cannabilog must operate under EU GDP certification and maintain pharmaceutical-grade systems and documentation. “We are audited constantly,” Eshel says.

The difference between the medical and recreational markets often catches producers off guard, especially those in countries like Canada, which has a more recreational mindset, similar to that of the US. “When you move into the medical space,” Eshel notes, “you suddenly need temperature-controlled vehicles, validated packaging, and specialized labeling. It requires training and experience.”

Globally, countries such as Germany, Australia, and Israel classify cannabis exclusively as a medical product. “It’s not even close to recreational,” Eshel stresses. “And in most countries, recreational use is still illegal and requires special licensing.”

 

Managing Cold Chain Logistics

After navigating complex regulations and meeting pharmaceutical-grade standards, the final piece of the international cannabis trade puzzle, says Eshel, is execution.

 

“You can have your licenses, your permits, your quality system, but if you don’t execute correctly, everything can fail.”

 

Execution means maintaining control over every step, including packaging, labeling, documentation, temperature regulation, and secure transportation. Shipments must move through carefully selected routes using temperature-controlled vehicles, warehouses, and flights, with continuous monitoring to ensure product integrity is preserved. In some countries, even armed escorts are required for security.

Eshel explains that cannabis logistics is not one-size-fits-all. Each product type, including genetics, flower, and concentrates, has unique handling and storage protocols. For instance, cannabis clones present one of the most challenging forms of transport. “Most clones are unrooted,” he says. “From the moment you cut them from the mother plant, you have three to four days to keep them alive. That requires special packaging, rapid shipping, and customs clearance to get them back into water in time.”

Temperature management is another major operational challenge. Most global regulators require cannabis products to be stored and transported between 59 °F and 77 °F, known in the pharmaceutical world as Controlled Room Temperature (CRT). In the United States, many recommend that temperatures should not exceed 70 °F for optimal cannabis preservation. Eshel clarifies that maintaining actual CRT conditions demands active temperature monitoring and specialized packaging, not just insulated boxes.

For every shipment, Cannabilog conducts a route risk assessment to evaluate potential environmental extremes along the supply chain. Eshel cites the example of shipments from Canada to Australia, where opposite seasons create complex thermal risks.

 

“Winter in Canada is summer in Australia, making temperature management a challenge from continent to continent; you have to plan for that,” he says.

 

To minimize exposure, Cannabilog uses pharma-grade airline partners that store and handle products under strict temperature conditions and prioritize loading and unloading to reduce time on the tarmac. Each shipment includes data loggers that record temperature throughout transit.

 

“If there’s an excursion outside the allowed range,” Eshel notes, “the products are rejected.”

 

European regulators, he adds, tend to enforce these standards more rigorously than their U.S. counterparts. While the United States has many GMP-certified cannabis facilities, most are not EU-GMP certified, which limits their ability to export to Europe when the time comes, even though the differences are not that big.

Eshel contrasts this with Canada, where much of the market remains recreational. While medical exporters adhere to strict temperature control and quality management, domestic recreational products are often transported under looser conditions.

 

“You can’t count on the weather,” he says. “Temperature management is part of the medical cannabis infrastructure.”

 

The Last Mile in Cannabis Preservation

Most of Cannabilog’s shipments are from a cultivation or production facility to a licensed wholesaler or distribution center, rather than directly to pharmacies.

 

“We verify that every facility we deliver to is properly licensed and has temperature-controlled storage,” Eshel says.

 

Cannabilog provides insurance coverage for every shipment, including losses related to temperature excursions or other transport issues. However, ultimate product responsibility remains with the manufacturer, much like in the pharmaceutical industry.

 

“If something goes wrong, it’s the manufacturer’s duty to investigate, and if needed, issue a recall,” Eshel explains.

 

Each transfer of custody, whether at the port, airport, or distribution warehouse, marks a shift in responsibility defined by the buyer-seller agreement. Still, Eshel stresses that all parties must adhere to Good Distribution Practices (GDP) and maintain detailed documentation, including lab tests and Certificates of Analysis (COAs), to ensure transparency and traceability.

Without mandatory cold-chain standards, products are often transported in “hot trucks,” leading to product degradation. Eshel agrees: “The last mile is often the weakest link in the supply chain infrastructure as the industry strives to build a cold chain custody from seed to sale.”

Even last-mile deliveries must be temperature-controlled. The difference, Eshel says, comes down to mentality. “In Europe, it’s purely medical. There’s no confusion between recreational and medical use, so cannabis is treated just like any other medicine.”

 

Wellness Watch

Why America Needs a National Medical Cannabis Program, Now

By Pam Chmiel
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The cannabis industry’s fragmented foundation is creating a host of problems tied to the lack of federal legalization. Many experts believe that without a national medical cannabis framework, the future of cannabis as a medicine in America could leave patients unprotected, research underfunded, and the industry consumed by unchecked commercial interests.

Few voices have been more vocal about this than Dr. Jordan Tishler, a Harvard-trained physician who spent 15 years working in a VA hospital before dedicating his career to cannabinoid medicine. Today, as the founder of InhaleMD and the president of the non-profit Association of Cannabinoid Specialists, Tishler is a leading advocate for creating a structured, federally recognized medical cannabis system.

 

“Over 180 million Americans over the age of 50 will develop one or more illnesses that can be treated with cannabis,” Tishler explains. “We cannot leave their care to marketing claims, dispensary staff, or patchwork state laws. Patients deserve proper medical treatment.”

 

Why Federal Legalization Falls Short

The current push for legalization often centers on ending prohibition, addressing social justice issues, and creating economic opportunities. While those goals matter, Tishler argues that legalization without a medical framework could actually undermine the perception of cannabis as medicine.

 

“Without a national medical system, we will see an industry driven by sales rather than science,” he warns. “Companies will have no incentive to invest in costly clinical research if they can simply go to market and make unverified claims. That would be the death knell of cannabis as a legitimate medicine.”

 

The problem is already visible in the hemp market, where unsubstantiated health claims and mislabeled products have flooded store shelves. Without federal oversight, Tishler says, cannabis risks becoming more snake oil than science-backed treatment.

Patients Caught in the Middle

Right now, medical cannabis patients face enormous disparities depending on where they live. In states like California, only a small fraction of cannabis is sold through medical channels, leaving patients to rely on retail budtenders for guidance.

 Florida remains the only state that requires a prescription-style “Order” that dispensaries must follow, but most states treat cannabis more like a consumer good than a medication. That lack of structure leaves vulnerable patients, many of them elderly or living with chronic illness, without consistent, professional guidance.

What a National System Could Look Like

According to Tishler and the Association of Cannabinoid Specialists, a true medical cannabis system would need to accomplish several key goals:

  1. Federal legalization of medical cannabis so patients can access treatment under the care of qualified clinicians.
  2. A standardized prescribing system that ensures patients receive consistent dosages, product types, and usage instructions.
  3. Insurance coverage so treatment is accessible to all patients, not just those who can afford to pay out of pocket.
  4. Ban on unsubstantiated claims to protect patients from predatory marketing.
  5. Interstate operability so patients can travel with their medicine without fear of losing access or facing discrimination.
  6. Ongoing scientific research is driven by a regulatory framework that incentivizes companies to conduct clinical trials.

These policies would not only protect patients but also advance cannabis science, strengthen the healthcare system, and put the U.S. on par with other countries, like Germany and Israel, that have integrated medical cannabis into national health programs.

The Social Justice Connection

For Tishler, the conversation about medical cannabis is inseparable from social justice. Healthcare outcomes in the U.S. are already poor compared to other developed nations, and they are significantly worse for communities of color. Without a national program, cannabis care will continue to follow the same inequitable patterns.

“Medical cannabis treatment must be part of the social justice discussion,” Tishler says.”Ending the war on drugs is not enough. Patients need safe, effective medicine and knowledgeable guidance to achieve the best outcomes.”

 

A Call to Action

The cannabis industry has an opportunity to rally around this cause, but time is running out. As recreational legalization spreads state by state, the risk grows that medical care will be sidelined, leaving patients to fend for themselves in a marketplace driven by revenue, not medicine.

“Congress is willfully overlooking the importance of proper medical cannabis treatment,” Tishler says. “We need a national system now, before the window closes.”

The Association of Cannabinoid Specialists has published a white paper outlining the essential elements of reform to ensure that patient care remains at the center of cannabis policy. Their message is clear: cannabis medicine is not simply a consumer product; it is a healthcare issue.

If the U.S. hopes to move beyond prohibition while protecting patients and fostering scientific innovation, a national medical cannabis system may be the industry’s most important cause yet.

 

 

 

 

 

 

 

 

 

https://www.cannaspecialists.org/a_federal_framework_of_regulation_for_medical_cannabis_use

Cannabusiness Sustainability

Why Franchises Could Be the Golden Ticket for Social Equity Entrepreneurs

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The cannabis industry is a fertile ground for aspiring entrepreneurs, holding the promise of a modern-day gold rush. Yet beneath the surface of opportunity lies a minefield of obstacles. Success requires navigating a steep learning curve, managing high operational costs, and mastering a complex supply chain that spans cultivation, manufacturing, consumer packaged goods (CPG), retail, finance, and strict regulatory compliance.

As of today, 40 states have legalized medical marijuana, and 24 states have legalized adult-use. Many of these states have prioritized giving Black and Brown communities, disproportionately harmed by the war on drugs, the chance to participate as dispensary owners. They’ve introduced social equity licensing programs, grants, and funding opportunities designed to level the playing field. Unfortunately, despite the good intentions, no state has yet launched a truly successful social equity program. New York’s rollout, in particular, has been marred by delays, lawsuits, and a lack of adequate support for license holders.

Despite the focus on prioritizing social equity entrepreneurs, the issues of inexperience, undercapitalization, and limited access to resources still need to be solved. These weaknesses create a high risk of business failure, making venture capital firms hesitant to invest in such ventures. A potential solution lies in franchising—a model that can provide a blueprint for success and the operational support to reduce failure rates, while also making cannabis investments more attractive to institutional and private investors.

 

The Benefits of a Retail Operational Blueprint

A cannabis franchise offers entrepreneurs an accelerated path to market by providing turnkey support. A franchisor supplies comprehensive resources, including:

  • Retail site selection and lease negotiations
  • Store design and build-out assistance
  • Initial and ongoing training programs for staff and management
  • Standardized operating procedures (SOPs) and compliance frameworks
  • Technology stacks (POS, e-commerce integration, track-and-trace systems)
  • Marketing and branding support rooted in consumer research
  • Vendor and supply chain relationships to ensure consistent, quality product flow

For new operators, this guidance eliminates many common pitfalls and shortens the learning curve. Franchisees step into a proven system, benefiting from brand recognition, operational discipline, and shared best practices.

 

Why Cannabis Franchises Make Sense

Cannabis retail faces unique challenges compared to traditional industries. Franchising can help overcome them:

1. The Unique Shopping Experience                              For first-time consumers, visiting a dispensary can feel intimidating. From security check-ins to navigating hundreds of unfamiliar products with the guidance of budtenders, the process can be overwhelming for new customers. A franchise ensures a consistent retail experience by training staff to educate and guide consumers, fostering customer loyalty, and building trust in the brand.

2. Adapting to Rapid Product Evolution                                                                          The cannabis product landscape changes faster than most consumer categories. Cultivators constantly rotate new strains into the market, novel cannabinoids (like THCV and CBG) are gaining traction, and new delivery systems, from solventless concentrates to nanoemulsion THC beverages, continue to emerge. A single dispensary may struggle to keep up with these trends, but a franchise leverages data from multiple locations to predict consumer demand and optimize inventory.

3. Navigating the Dispensary Technology Stack                                                  Dispensaries operate within a specialized tech ecosystem, featuring seed-to-sale tracking, compliance reporting, CRM systems, digital menus, and marketing platforms that must comply with advertising restrictions. Choosing the wrong software can be costly and disruptive. Franchises streamline this by standardizing their tech stack across locations, saving franchisees the trial-and-error process.

4. Meeting High-Security Requirements                                                                  Cannabis retailers must operate like high-security facilities. State-mandated vaults for product storage, video surveillance systems, onsite security guards, and cash-only operations (due to limited access to banking) make security both costly and complicated. Franchises reduce risk by providing tried-and-true protocols for safeguarding cash and inventory.

5. Ensuring Compliance in a Highly Regulated Industry                                  Compliance violations are among the fastest ways to lose a license. Cannabis retailers must adhere to strict regulations regarding packaging, labeling, advertising, delivery, consumption lounges, and track-and-trace systems. Non-compliance can result in severe fines or a permanent shutdown. By joining a franchise, operators gain access to dedicated legal and compliance teams who track evolving laws across multiple jurisdictions. This lowers the cost of legal services and dramatically reduces regulatory risk.

 

Easing the Path to Capital

Access to capital remains one of the biggest hurdles in cannabis. Traditional bank loans are rare, and investors are cautious due to the sector’s volatility. A franchise model eases this barrier by offering:

  • Proven systems and financial performance data that reduce investor risk.
  • Scalable retail expansion opportunities that appeal to venture firms and private equity.
  • Institutional credibility through established brands makes lenders more comfortable underwriting loans.

 

Challenges for Cannabis Franchisors

While franchising offers clear advantages for operators, it’s not without challenges. Only a handful of cannabis franchisors exist today, and some early attempts have failed due to the complexities of operating across multiple states, each with its own licensing rules, ownership caps, and compliance hurdles.

Two companies leading the charge are Sweet Spot Farms and Curio Wellness’ Far & Dotter, each approaching the franchise model in distinct ways.

  • Sweet Spot Farms has taken a cannabis-first approach, focusing exclusively on dispensary retail. With franchisees already operating in four states and more expansion underway, the company emphasizes a consistent retail experience, standardized operating procedures, and brand trust built directly around cannabis. Their success demonstrates that a disciplined, tightly controlled model can scale even in fragmented markets.
  • Far & Dotter, developed by Maryland-based MSO Curio Wellness, takes a broader health-and-wellness approach. In addition to cannabis retail, the franchise concept incorporates holistic services such as massage therapy, acupuncture, and natural health products. This wellness-forward positioning aims to destigmatize cannabis, attract new customer demographics, and differentiate Far & Dotter from dispensaries that focus strictly on THC sales.
  • Buds Place has yet to open its consumption lounge model, but is eyeing Michigan as its first state because of its more favorable cannabis laws compared to other states. Ron Silberstein, CFO, has been in the franchise industry since 1999 and believes the cannabis industry is the next great frontier for franchising opportunities.

The existence of these two models highlights both the opportunities and the complexities of franchising in the cannabis industry. Sweet Spot Farms shows how a cannabis-focused franchise can scale through disciplined operations, while Far & Dotter demonstrates how expanding the consumer experience beyond cannabis can open doors to new markets and investors. Both face the challenge of adapting their systems to varied state regulations while keeping brand consistency across locations.

Unlocking Potential Through Franchising

The cannabis industry is brimming with opportunity, but breaking in and building a sustainable business remains a daunting task. Franchising provides a proven roadmap that mitigates risk, accelerates growth, and increases access to capital. By offering operational blueprints, established brand trust, compliance expertise, and consumer insights, cannabis franchises create a supportive ecosystem for entrepreneurs.

Just as importantly, franchising can help advance social equity goals. By providing new entrepreneurs, especially those disproportionately affected by prohibition, a structured, proven path to success, franchising can democratize opportunities while attracting the investor capital the industry desperately needs.

If cannabis is the modern-day gold rush, franchising may well be the map that ensures more entrepreneurs strike success.

From The Lab

An Inside Look at Germany’s Cannabis Supply Chain With The Grünhorn Group

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On April 1, 2024, Germany launched Pillar 1 of its adult-use legalization framework, building on its established medical cannabis program that has been in place since 2017. Since then, the number of medical patients has surged, as prescriptions remain the only fully legal access point for cannabis aside from home cultivation or membership in non-commercial private clubs, both still limited by incomplete regulations. Unlike the United States, where dispensaries are the backbone of cannabis sales, Germany maintains a more tightly regulated model: patients must secure a doctor’s prescription and fulfill it through a pharmacy.

The next stage, Pillar 2, is expected to introduce licensed retail outlets for adult-use sales, eliminating the requirement for prescriptions. However, with the Christian Democratic Party now in office and maintaining a strong stance against cannabis legalization, these plans face significant uncertainty. While advocates remain hopeful for progress, the CDU’s opposition could delay, restrict, or even reverse parts of the rollout, leaving the future of Germany’s adult-use market in question.

In the meantime, Germany is laying the groundwork for a national infrastructure rooted in its medical system, a stark contrast to the fragmented, state-by-state patchwork in the U.S. This centralized approach not only offers greater oversight and consistency but also positions Germany as a potential model for other European nations exploring reform.

At the center of this rapidly evolving landscape is the Grünhorn Group, one of the country’s most influential players. With an estimated 20 percent market share serving between 5–7 million patients in a nation of 84 million, Grünhorn has established a vertically integrated supply chain that spans importing biomass from global producers, EU-GMP-certified manufacturing, and robust distribution networks. Beyond production, the company operates Germany’s largest online pharmacy platform, giving patients access to products from multiple manufacturers. According to Matthias Fischer, Managing Director of Canymed, Grünhorn’s distribution partner, the group generated €33 million in revenue in 2024, provided medicine to approximately 60,000 patients, and engaged with nearly 6,000 prescribing physicians.

 

Prioritizing Data Collection for Medical Research                                                              For Grünhorn, data is at the core of both its medical mission and its business strategy. The company systematically collects patient feedback on the effects of its products—whether for sleep, anxiety, focus, or other conditions—to inform evidence-based product development. This feedback loop allows Grünhorn to collaborate closely with cultivation partners in designing strains that balance cannabinoids and terpenes to address specific therapeutic needs.

Beyond patient-level insights, Grünhorn is also investing heavily in analytical research. The company operates a gas chromatograph to precisely measure and map the cannabinoid and terpene composition of imported biomass, creating a detailed strain database. To date, Grünhorn has cataloged between 400 and 500 strains of interest, providing one of the most comprehensive genetic and chemical libraries in Germany’s cannabis sector.

“I think the future lies in predicting and knowing which cannabinoids will effectively address specific health indications,” says Fischer, underscoring the company’s long-term vision of turning raw data into targeted, science-driven therapies.

 

Germany is an Import Market

While Germany has licensed domestic cultivation, led by producers such as Tilray, Demecan, and Aurora, the country remains heavily dependent on imports. According to Fischer, the quality of German-grown cannabis has not yet reached the standards set by established cultivation markets in Canada, Portugal, Denmark, and Colombia. To maintain product consistency and meet patient expectations, Grünhorn partners with a Canadian grower, underscoring the ongoing importance of international supply in Germany’s cannabis ecosystem.

Economic factors also weigh heavily on domestic production. High energy costs make large-scale cultivation within Germany particularly challenging, pushing wholesale prices above those of imported flower. As a result, most of the market is supplied by international partners who can cultivate at scale more efficiently and deliver the product at a lower cost.

This reliance on global supply chains is not unique to Grünhorn.

Cantourage, one of Germany’s largest medical cannabis manufacturers, has built its strategy around imports, maintaining partnerships with 40 cultivators across 17 countries. Together, these dynamics reinforce Germany’s role as one of the world’s largest import-driven cannabis markets, even as it develops its own infrastructure.

 

Bottlenecks in the Pharmacy System

Germany’s pharmacy network, spanning both retail and online channels, remains the cornerstone of cannabis dispensing in the country. As patient demand surges, many traditional pharmacies have launched digital platforms to streamline order management. Grünhorn has leaned into this shift, expanding its online pharmacy delivery while forging partnerships with local pharmacists who see cannabis as a valuable revenue driver.

Yet the system is under strain. Because only licensed pharmacists can legally fulfill prescriptions, they often face capacity challenges. Compounding, bottling, labeling, and testing must still be performed manually, creating bottlenecks in day-to-day operations. To keep pace, some pharmacists pre-produce standardized products based on everyday patient needs, despite the model being designed for on-demand compounding. Recognizing these inefficiencies, Grünhorn is investing in custom machinery and software solutions to help pharmacists scale production without compromising compliance, while maintaining oversight of quality and safety.

Another hurdle is product consistency. With prescriptions filled at thousands of independent pharmacies, often by third-party providers, slight variations in formulation are inevitable. “It’s like having 6,000 different factories manufacturing your product,” Fischer explains. To address this, Grünhorn is working on standardized fulfillment models to align independent pharmacies with the quality benchmarks already set by its own online platform.

To further streamline the process, Grünhorn has integrated telemedicine into its supply chain. Patients can now connect directly with physicians, obtain prescriptions, and submit them seamlessly for fulfillment. This innovation helps address a recurring frustration: doctors inadvertently prescribing products that are out of stock, despite having access to inventory databases, ultimately reducing delays and ensuring patients remain on consistent treatment plans.

 

Partnerships and Opportunities                                                                                  Grünhorn’s pharmacy data reveals that 20-30 percent of products generate 80 percent of revenue, indicating a potential for future product consolidation, according to Fischer. For investors, this presents an opportunity to fund medical brands with proven track records that are poised for growth and expansion.

In addition to producing its wholesale product line, Grünhorn is well-positioned and equipped to assist other brands looking to enter the German marketplace and welcomes co-branded product partnerships. They forged a partnership with Somai Pharmaceuticals, based in Portugal, resulting in a two-year, €10 million manufacturing and distribution deal.

Fischer also believes AI will play a significant role in managing the industry in the future, suggesting an opportunity for those looking to enter the German market through technological innovation.

“The biggest challenge we must overcome in the next couple of years is to generate data and medical studies,” Fischer emphasizes. “We have many products with nice ideas, interested patients, and qualifying physicians, but we need more studies and proven evidence to present to new doctors and insurance companies, who are still challenging cannabinoid therapy and requesting data studies.”

For more insights into the German market, listen to an interview with Matthias Fischer on the Innovating Cannabis podcast.

 

Wellness Watch

Why You Should Consider Medical-Grade Dry-Herb Vapes

By Pam Chmiel
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dry herb vaping    Switching from smoking to dry-herb vaping offers a safer way to consume while also preserving the delicate terpene and cannabinoid profiles that contribute to the entourage effect. Unlike combustion, which produces tar, carbon monoxide, and other toxic byproducts, vaporization heats cannabis at controlled temperatures to release active compounds with far fewer harmful emissions. While vaping is not risk-free, acute impairment, potential lung irritation, and the unknowns of long-term use remain, there is growing consensus that dry-herb vaporization represents a safer and more consistent method of consumption when paired with high-quality flower and rigorously tested devices.

Why Hardware Matters                                                                                                  Whether vaporizing concentrates or flower, the quality of the hardware is critical. Cheaply manufactured devices can pose significant health risks, ranging from heavy metal contamination to inconsistent heating elements that fail to maintain optimal temperatures. Recognizing the importance of safety, ASTM International (American Society for Testing and Materials) launched the D37 Vape Device Safety & Testing Initiative in 2024. The initiative is developing global standards around material safety, emissions testing, power regulation, and device disassembly, creating benchmarks to reduce consumer risk and ensure more reliable performance across devices that manufacturers should adhere to.

Compound Preservation and Temperature Control are Key                                            One of the biggest advantages of dry-herb vaping is compound preservation. Analytical studies have demonstrated that medical-grade vaporizers achieve exceptionally high decarboxylation efficiency for cannabinoids with vapor recovery rates ranging from 51–83% depending on the device and study conditions. This means that patients and consumers are not just avoiding harmful byproducts; they’re also gaining access to the therapeutic compounds they expect.

Temperature plays a central role in this. Research and industry guidelines suggest that the optimal vaporization range is between 180–230°C, just below the combustion threshold of 235°C. Within this window, active cannabinoids and terpenes are efficiently released without producing smoke. Different terpenes vaporize at different temperatures: myrcene around 166°C, limonene around 176°C, and linalool closer to 198°C, so patients and consumers can tailor both flavor and therapeutic effects by adjusting heat settings.

Devices with precision temperature controls, capable of maintaining a stable hot-air stream with minimal fluctuation, enable reproducible results, better flavor, and a reliable vapor cloud. For patients, this translates into a more predictable therapeutic experience; for recreational consumers, it enhances taste and enjoyment.

Reduction of Harmful Toxins                                                                                              The contrast between smoking and vaporization is stark. Analytical data show that the vapor produced by a medical-grade dry-herb device can be composed of up to 95% cannabinoids with minimal toxic byproducts. In comparison, combustion produces more than 100 additional chemicals, many of them carcinogenic or otherwise harmful to respiratory health.

For operators and healthcare providers, this distinction highlights the potential of vaporization as a harm-reduction tool. The reduction in carbon monoxide, tar, and irritants makes dry-herb vaping a cleaner alternative that aligns with both patient safety and public health objectives.

Reproducibility and Dosage Control                                                                       Consistency is essential in medical and clinical contexts. Temperature-controlled vaporizers can deliver stable, reproducible doses of cannabinoids, which is a critical advantage for patients who require predictable symptom relief. Clinical researchers also prefer vaporizers over smoking in trials because they ensure consistent cannabinoid delivery, making study outcomes more reliable.

In addition to dosage stability, these devices reduce airway irritation by cooling the vapor before inhalation. This combination of precision and patient comfort has positioned dry-herb vaporizers as valuable tools in both research and treatment settings, offering a reliable way to study cannabis pharmacology while ensuring consistent exposure levels.

Limitations and Safety Concerns                                                                                  Despite the advantages, it’s important to recognize limitations and potential risks.

  • Microbial Bioburden: Research indicates that vaporizing cannabis flower at standard temperatures (around 190°C) does not significantly reduce microbial contamination present on the plant material. For immunocompromised patients, this underscores the importance of sourcing flower that have undergone rigorous quality testing and meet pharmaceutical-grade standards.
  • Elemental Impurities: Cannabis naturally absorbs trace amounts of heavy metals from soil, but recent FDA-funded research found that using a dry-herb vaporizer does not significantly transfer those impurities into inhaled vapor. Even concerning elements such as lead, arsenic, cadmium, and mercury were detected at levels far below safety thresholds, reinforcing that vaporization is a much cleaner option than smoking.
  • Pesticide Residues: Many pesticides are heat-stable, meaning they can survive vaporization temperatures. This makes proper cultivation and third-party testing essential to ensuring that inhaled vapor is free from harmful residues.

In short, while device technology greatly mitigates risks associated with inhalation, the quality and purity of the raw cannabis remain equally critical to consumer safety.

Device Reputation and Regulatory Acceptance                                                        Medical-grade dry-herb vaporizers are required to meet GMP (Good Manufacturing Practice) certification. These devices have been widely adopted in clinical trials and medical cannabis programs across the globe, offering regulators and researchers a trusted platform for studying cannabis vaporization.

Among them, the Storz & Bickel Volcano has become one of the most widely recognized models, frequently used in laboratory settings to deliver reproducible cannabinoid vapor while minimizing harmful byproducts. First launched in 2000, the Volcano remains a gold standard and was among the first devices approved for distribution in regulated medical markets, such as Germany and Israel. More recreational and portable-friendly devices, such as the Mighty, Venty, and most recently the Veazy, have since followed, further expanding medical-grade options for consumers, patients, and researchers.

Key Criteria for Medical-Grade Dry-Herb Vaportizers                                                  Not all vaporizers are created equal. Medical-grade devices are manufactured to stricter standards than consumer-grade products, with regulations that ensure safety, consistency, and compliance with relevant laws and regulations.

  • Certified Quality Systems: Medical-grade vaporizers are manufactured to ISO 13485 certification, a quality management system specifically designed for medical devices. This ensures every stage, from design and materials to production and final testing, meets rigorous standards.
  • Regulatory Compliance: In Europe, these devices must comply with the EU’s Medical Device Directive and related safety standards, placing them under the same category of oversight as other medical devices.
  • Precision Heating: Controlled heating technology keeps temperatures in the ideal vaporization range. This allows cannabinoids and terpenes to be released effectively without crossing into combustion, ensuring consistent dosing and minimizing the formation of harmful byproducts.
  • Material Safety: Only medical-grade, inert materials, such as stainless steel, ceramics, or specialized plastics, are used in components that come into contact with cannabis or vapor. This reduces the risk of contamination from metals or chemical leachates.
  • Controlled Production Environments: Devices are typically assembled in cleanrooms or under Good Manufacturing Practice (GMP) protocols to prevent contamination and ensure product purity.
  • Battery and Electrical Safety: Portable models must meet strict safety standards for lithium-ion batteries, with safeguards against overheating, short circuits, and malfunctions.

These manufacturing criteria set medical-grade vaporizers, like the Storz and Bickel brand, apart in both clinical and commercial contexts. For patients, they provide peace of mind. For regulators, they demonstrate compliance. For operators, this highlights the level of quality assurance that may become the benchmark as cannabis markets continue to professionalize.

The Takeaway For Industry Stakeholders                                                                            As consumers become more educated about the value of preserving cannabinoids and terpenes, vaporizers are well-positioned to become the preferred method of inhalation when smoking remains the chosen form of consumption.

As regulatory standards evolve and clinical research expands, medical-grade dry-herb vaporizers will continue to demonstrate their value, not just as consumer products, but as essential tools for harm reduction, patient care, and scientific study. For brands, aligning with this higher standard of creating medical-grade products is not only beneficial for patients and consumers but also crucial for setting safe industry standards.

NECANN Atlantic City: Insights on NJ’s Emerging Market

By Pam Chmiel
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The excitement and interest around New Jersey are impossible to ignore because of its potential to be one of the most lucrative cannabis markets in the country. Since legalization, operators have been racing to open doors, capture consumers, and keep pace with evolving regulations, as they battle sky-high operating costs, shifting compliance rules, and the uncertainty of how consumer demand will shake out.

At NECANN’s Atlantic City conference, a panel of industry insiders gathered to offer their insights on where the Garden State’s market is heading. Moderated by Jacob Robbins of Longview Strategic, the panel brought together voices from the packaging, brewing, and manufacturing industries to explore the opportunities, roadblocks, and trends reshaping the industry.

“This market is young and growing fast,” Robbins said as he opened the session. “But it’s also unpredictable. Success requires both planning and adaptability.”

Lesson From Other States: Scaling Smart                                                                                    Jason Marshall of AE Global, a company specializing in packaging and supply chain solutions, began by pointing to lessons from more mature cannabis markets. Drawing on his background in consumer packaged goods (CPG) with companies like Pepsi and General Mills, Marshall stressed that packaging in cannabis is far more than just compliance.

“Packaging is the vehicle for trust and brand identity,” he said. “In a crowded dispensary, that’s how you stand out.”

The data shows just how crowded New Jersey has become. In 2023, the state tracked 2,100 SKUs; this year, that number more than doubled to 4,800. For consumers, that means unprecedented choice. For businesses, it means competing for shelf space and consumer attention in ways that look increasingly like mainstream retail.

Marshall’s advice was clear: treat cannabis like any other consumer market. Strategic planning is essential, but rigid strategies rarely succeed. Operators must be nimble and prepared to adjust pricing, packaging, and distribution to reflect changing consumer behavior and evolving regulatory requirements. “The playbook is always shifting,” Marshall said. “The winners are the ones who can shift with it.”

Regulations vs. Market Reality                                                                                                           If packaging is where brands differentiate, regulation is where they stumble. Chuck Garrity, founder of Death of the Fox Brewing Co., knows firsthand what happens when rules lag behind business. His experience navigating New Jersey’s craft beer rollout gave him a sobering perspective on what to expect when he entered the cannabis industry with his dispensary, Frosted Nug.

“We saw the same messy process with craft beer,” Garrity said. “Government always lags behind business. Cannabis is no different.”

According to Garrity, the problem isn’t just bureaucracy; it’s who writes the rules. Lobbyists, he argued, play an outsized role in shaping legislation. Unless operators engage lawmakers directly, they risk being boxed out of decisions that will shape their businesses for decades.

“Operators need relationships with mayors, senators, and regulators. If you’re not at the table, you’re on the menu,” he warned.

The threat of overregulation is real. Rules that are too restrictive, he said, could choke off innovation and slow down the momentum New Jersey needs to stay competitive with neighboring states. For Garrity, political advocacy is not optional; it’s survival.

Manufacturing, Innovation, and White Labeling                                                      Where Garrity sees a risk in policy, Hursh Patel sees opportunity in production. Patel, founder of Red Oak Cannabis, detailed his company’s investment in a CGMP-certified manufacturing facility powered by AI-driven automation to raise the bar on quality, consistency, and efficiency.

“Automation and quality control are everything in cannabis manufacturing,” Patel said. Consumers expect consistency. Retailers demand it. AI helps us deliver it at scale.”

But Patel’s bigger play is in white-labeling. In a landscape where every dispensary is trying to carve out its identity, exclusive brands offer a way to build loyalty and improve margins.

“White label gives retailers the chance to control more of the value chain,” Patel explained. “It’s a high-margin growth path, but it only works with the right partners and strict quality standards.”

The strategy has been successful in other states, where dispensaries have developed in-house brands that compete directly with national players. In a crowded New Jersey market, Patel argued, it could mean the difference between profitability and mediocrity.

Beverages: The Next Super-Category                                                          One trend drew universal attention: beverages. While still a small slice of the market, cannabis drinks are gaining momentum across the U.S., and panelists believe New Jersey won’t be far behind.

Marshall pointed to the West Coast, where dispensaries in California and Oregon are increasingly “fridge-heavy,” dedicating prime space to cannabis beverages. Branding is more experiential, with products designed to appeal to wellness-minded and socially conscious consumers who might never consider smoking a joint.

“Beverages are shaping up to be a super-category,” Marshall said. “In three to five years, they could be the preferred consumption method.”

National brands like Cycling Frog are already building mainstream awareness, helping normalize the idea of drinking cannabis instead of alcohol. For New Jersey operators, beverages represent both an opportunity and a challenge: they require cold storage, different packaging standards, and consumer education. But if the predictions hold true, they could also be the next major driver of growth for dispensaries.

Roadblocks On The Horizon                                                                         Despite the optimism, delivery remains an obstacle, being both costly and underdeveloped. Insurance premiums are steep, and regulations create more friction than efficiency. Without reform, consumers may continue to rely on traditional purchasing channels.

Interstate commerce also looms large. While federal legalization remains stalled, most agree that it’s a matter of when, not if. For New Jersey, with its high operating costs, the threat is real. Once interstate trade opens, local producers may struggle to compete with lower-cost operators on the West Coast.

Then there’s politics. New Jersey’s upcoming gubernatorial election could have a major impact on the regulatory climate. A shift in leadership could accelerate reform or stall it indefinitely.

Key Takeaways for New Jersey Operators                                                  By the end of the session, a handful of themes emerged as survival strategies for cannabis businesses in the Garden State:

  1. Build flexibility into strategy. The rules and market conditions will change—your business model must be ready to adapt.
  2. Study other state markets. Learn from the missteps and successes of other states.
  3. Cultivate political relationships. Lobbying power isn’t optional; it’s how laws get written.
  4. Explore white-label opportunities. House brands can expand margins and consumer loyalty.
  5. Prepare for beverages. There seems to be a big white space for beverages. Whether it’s in two years or five, drinks are poised to lead consumer adoption.

A Market Still Taking Shape                                                                         The challenges are significant, and the future is uncertain, just like any other maturing cannabis market. But for operators willing to stay lean, resourceful, invest in relationships, and think creatively about products, the opportunity remains immense.

“This is still the early innings,” Robbins said in closing. “The operators who thrive will be the ones who treat this like the serious, dynamic consumer market it is, while never forgetting that in cannabis, everything can change overnight.”

 

What you will learn:

  • What makes New Jersey one of the most promising cannabis markets in the U.S.?

  • How are operators adapting to high operating costs and changing regulations?

  • What lessons can New Jersey learn from more mature cannabis markets?

  • Why is packaging important for brand identity and consumer trust in cannabis?

  • How can white-label products help dispensaries improve margins and loyalty?

  • Why are cannabis beverages considered a potential “super-category” for growth?

  • What regulatory and political challenges could impact New Jersey operators?

  • How can operators stay flexible and thrive in a rapidly evolving cannabis market?