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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.”

 

The United Nations Poised To Recognize Cannabis Culture

Beyond its wellness benefits, cannabis carries a rich and diverse cultural legacy that spans the globe. In a  technical paper submitted to Mondiacult 2025, the Cannabis Embassy calls for global recognition of cannabis cultures as an integral part of humanity’s cultural diversity, and as essential to building inclusive, rights-based, and peace-oriented cultural policies in the 21st century.

Mondiacult 2025, UNESCO’s World Conference on Cultural Policies and Sustainable Development, will be held in Barcelona, Spain, from September 29 to October 1, 2025. The gathering brings together ministers, policymakers, cultural professionals, and civil society leaders from all 194 UNESCO Member States to shape the global cultural agenda for the years ahead.

The Roots of Cultural Erasure

The paper begins by tracing how cannabis’s regulation transformed into prohibition. In 1925, the International Opium Convention first put cannabis derivatives under international control. But it was the 1961 Single Convention on Narcotic Drugs that went further, specifically mandating in its Article 49 that traditional or non-medical uses of cannabis should be “abolished” as soon as possible.

This legal architecture effectively criminalized centuries of cultural practices almost overnight, without regard for the histories, traditions, or worldviews of communities that had used cannabis as part of their heritage.

The authors highlight a stark paradox: although Article 49 attempts to eradicate non-medical uses, cannabis use and culture never disappeared. Instead, they persisted and adapted underground, often at great social and legal risk to the people involved.

Culture of Resilience

Criminalization has driven cannabis traditions underground, disrupting the transfer of knowledge across generations and forcing communities to safeguard their heritage in secrecy. The war on drugs has made it risky to openly celebrate or develop cultural practices tied to the plant.

Yet despite decades of stigma and repression, cannabis cultures have shown remarkable resilience. Communities have preserved knowledge orally, sustained clandestine cultivation networks, and reinvented social practices to keep traditions alive.

Still, criminalization has silenced open expression, marginalized traditional growers and knowledge holders, and left indigenous and legacy communities sidelined in legalization efforts that rarely create fair or inclusive opportunities.

Human Rights, Cultural Rights & the Need for Reconciliation

The technical paper frames this struggle in the language of cultural and human rights. International human rights instruments (e.g., UDHR, ICESCR, ICCPR, and treaties protecting indigenous and minority cultures) affirm that all peoples have the right to participate in cultural life, to transmit traditions, and to enjoy “the moral and material interests” tied to their cultural expressions.

Yet, the authors argue, cannabis communities have been systematically denied these rights through prohibition, stigma, and exclusion. Tools of cultural safeguarding (such as UNESCO’s 2003 Convention on the Safeguarding of Intangible Cultural Heritage) have rarely been applied to cannabis-related practices. The paper calls for a recalibration of international norms so that cannabis communities can access recognition, protection, and support.

Policy Recommendations & Pathways Forward

As the world convenes for Mondiacult 2025, this moment presents a window for structural change. The paper sets out key recommendations:

  1. Acknowledge a cultural crisis: explicitly recognize how prohibition has impaired the cultural rights and heritage of cannabis-associated communities.
  2. Reexamine conflicting treaties: address the tensions between Article 49 of the Single Convention and human rights frameworks (UDHR, ICESCR, ICERD).
  3. Support community-led safeguarding efforts by investing in participatory processes to document, revitalize, and protect cannabis-related cultural expressions.
  4. Create enabling environments at national and regional levels, and remove legal and social barriers that prevent communities from freely maintaining or developing their traditions.
  5. Promote equitable benefit–sharing and protections: guard against exploitation or biopiracy of cannabis genetic resources and traditional knowledge.

By recognizing cannabis cultures as part of the global mosaic of cultural expression, and by re-centering rights, dignity, and community control, the authors argue, we can shift from a “war on drugs” mindset toward a culture for peace paradigm.

Read the full report from the Cannabis Embassy here:

From The Lab

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

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.”

 

 

 

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.

From The Lab

MJBowl Comes For New York Brands

By Pam Chmiel
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MJBizCon, the largest and one of the most influential gatherings in the cannabis industry, is adding a new element to its lineup: a cannabis competition.

This year marks the debut of the MJBowl awards on December 4th in Las Vegas, produced in partnership with Budist, the first-ever review platform to combine consumer feedback with expert ratings from seasoned professionals.

Elevating Cannabis Standards

Often compared to Wine Spectator, the influential magazine known for expert ratings, detailed tasting notes, and industry news, Budist applies a similar model to cannabis.

“Cannabis needed a professional ratings and review platform that elevates a brand’s standards,” said Claudio Miranda, co-founder and COO of Budist. “Just like wine, coffee, or craft beer, cannabis deserves a transparent, unbiased system for measuring quality.”

The inaugural event will feature separate competitions in California and New York, with winners crowned in each state. While future editions may pit markets against one another, for now, the MJBowl is designed as a celebration of excellence rather than a direct state-to-state showdown, since cannabis remains federally illegal and cannot be shipped across state lines.

Driving Premiumization in Cannabis

Beyond ratings and reviews, Budist is also tackling one of the industry’s most persistent challenges: the lack of education around products. Miranda points out that cannabis is often reduced to a race to the bottom, where products are judged primarily on low prices and high THC percentages.

By introducing expert-driven evaluations, Budist aims to help consumers understand why some products command a higher price, just as wine drinkers learn to distinguish between a $10 and a $100 bottle. The platform also shines a spotlight on cultivators and brands that invest in craftsmanship, such as high-quality sun-grown flower, which is often undervalued in today’s market.

“Education is key,” Miranda explained. “Some consumers want value products, and that’s fine. But others are willing to pay more for craftsmanship and quality, and they want to know why that product is worth the premium. That’s where we come in—helping consumers make sense of the differences.”

Budist vs. Ganjier: Complementary Roles

Because Budist is often compared to the Ganjier program, Miranda clarifies the distinction and how they complement one another.

  • Ganjier, founded by renowned cultivator Kevin Jodrey, is the industry’s first sommelier-style certification program. It provides deep product knowledge, professional credentials, and evaluation training similar to earning a degree.
  • Budist is a platform. It gives certified experts, including many Ganjiers, an outlet to apply their skills in the marketplace.

In addition to expert reviews, Budist also includes consumer ratings, creating a dual system modeled after platforms like Rotten Tomatoes, where both critics and everyday users contribute.

 

“Both perspectives are valid,” Miranda said. “Our professionals might include Ganjiers, longtime competition judges, journalists, or educators, but they all share a commitment to standardized, unbiased product evaluation. At the same time, consumer input provides balance and insight into what everyday users value.”

 

Together, programs like Ganjier and platforms like Budist help professionalize cannabis evaluation, giving the industry tools to recognize quality while also educating consumers about the nuances that distinguish one product from another.

California vs. New York: Different Stages, Different Stories

One of the most compelling aspects of the MJBowl will be seeing how winners differ between California and New York.

California has had a legal cannabis framework for over 20 years and is a hub of innovation for brands, product formats, retail experiences, and cultivation and extraction methods. New York’s regulated market, by contrast, is still in its early stages. While its traditional market is longstanding, the legal side has fewer brands and less product diversity, making it more of a developing market than a mature one.

It’s not just about the products. Each MJ Bowl competition reflects the culture of its state. In New York, social equity license holders make up a majority of the market, accounting for approximately 54 percent across cultivation, manufacturing, and retail. Many of these operators come from the legacy market and support one another as they transition into the legal industry. Growers supply brands, brands support retailers, and retailers provide visibility for their community peers. This longstanding network of collaboration is now thriving in the regulated space, giving New York’s cannabis scene a uniquely cooperative spirit.

California, by contrast, brings decades of product innovation and a deep bench of brands, with judges steeped in West Coast cannabis culture. New York’s judging team is being built from within its own community. “This isn’t about California going to New York and telling them what we think of their products,” Miranda said. “It’s about letting each market speak for itself, from producers to consumers and professionals alike.”

How Judges Decide What Wins

According to Miranda, winning products don’t follow a single formula; trends, innovation, and what’s bubbling up in the market all matter. Years ago, hydrocarbon extracts such as shatter and wax dominated competitions, while today’s connoisseurs favor solventless products like rosin. Edibles have evolved from simple brownies to precisely dosed chocolates, beverages, and nanotech-infused products. Judges also reward innovation across hardware and packaging, not just flower or concentrates.

Budist is working to elevate standards by implementing a 100-point evaluation rubric that scores aroma, flavor, appearance, and effect, weighted differently according to category. For example, concentrates are judged heavily on aroma and flavor, while medicinal capsules are judged primarily on whether they deliver the promised effect.

The scoring system also recognizes that consumer expectations vary widely across categories. “You can’t measure rosin against distillate and call one better than the other; they’re different products serving different purposes,” Miranda explained. That’s why products compete within subcategories, ensuring fair comparisons and allowing each style to shine on its own merits.

For the MJBowl, there are five main competition categories:

  • Flower
  • Pre-rolls
  • Vaporizers
  • Concentrates
  • Edibles

Within these, entries are divided into 11 subcategories—such as distillates, live resin, solventless extracts, chocolates, gummies, and beverages to ensure recognition across the full spectrum of cannabis products.

What Winners Receive

In addition to honoring winners on the national stage at MJBizCon, the MJBowl ups the stakes with event tickets, an awards show entry, and a travel voucher to Las Vegas. Winning brands also gain major visibility through post-event press coverage, Budist social promotion, and amplification from MJBiz.

Retail partners in each state, such as The Artist Tree, with 10 California locations, and Gotham, with four dispensaries in New York, have committed to showcasing winners on their shelves.

“This isn’t an award that disappears once the show ends,” Miranda said. “It translates directly into new opportunities for brands. So we hope everybody enters.”

 

Hear Claudio Miranda’s full interview on the Innovating Cannabis Podcast and YouTube.

Arizona Commands the Nation’s Highest Cannabis Business Valuations

By , Gordon K. Sattro
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Whether it’s a single retail license, a multi-site operation, or a vertically integrated enterprise, deals in Arizona are fetching top-tier premiums – often exceeding price points in larger, more mature markets like California.

So, what’s driving these sky-high valuations? More importantly, how can industry players take advantage? Let’s break it down.

Arizona: Where Cannabis Assets Command a Premium

Over the past 24 months, dozens of transactions have closed in Arizona by way of consolidation, ranging from single dispensary sales to multi-unit portfolio deals. The results have been record-setting: in some cases a standalone retail license has sold for over $10 million, a figure unheard of in many other states. Arizona’s cannabis assets are, in a word, premium and are routinely attracting bids that surpass those in traditionally dominant market.. Clearly, Arizona has become a market where cannabis assets command a serious premium.

Why is this desert market so hot? Below are five key factors fueling Arizona’s elevated valuations.

Five Key Factors Driving Arizona’s Sky-High Cannabis Valuations

  1. Limited License Structure: Arizona’s cannabis market operates under a tightly restrictive license cap, with only 169 dispensary licenses statewide. This built-in scarcity means any available license instantly becomes a coveted asset. With far fewer retail outlets than demand requires, sellers hold the leverage – and can command steep prices as a result. 
  2. Dual Licensure (Medical + Recreational): Many Arizona licenses are dual-use, meaning one license allows both medical and adult-use sales. This doubles a dispensary’s potential customer base overnight. Dual licensure translates to higher revenue per store, as each licensed operator can serve all segments of the market. Buyers are willing to pay a premium for this versatility and expanded market share. 
  3. Strategic Location and Growing Consumer Base: Arizona boasts one of the fastest-growing populations in the U.S., with major metros like Phoenix and Tucson expanding rapidly. The state also enjoys booming tourist traffic and steady streams of interstate shoppers (especially from nearby prohibition states such as Texas, Utah, and New Mexico). On top of that, Arizona offers a favorable business climate with relatively low taxes and fees, which further boosts profitability for operators. In short, demand is high and operating costs are relatively manageable which all results in a perfect recipe for rich valuations. 
  4. Robust Sales and Profitability: Thanks to limited competition and dual-use sales, Arizona dispensaries tend to generate strong revenues and healthy profit margins. Each store services a large customer pool, often resulting in higher sales per dispensary than in states with more saturated markets. Buyers see that Arizona operations can yield a significant return on investment, which justifies paying top dollar for a foothold in the market. 
  5. Strong Investor Demand: The buzz around Arizona has drawn in deep-pocketed buyers from across the country. Green Life has witnessed both institutional investors and high-net-worth individuals eagerly bidding for Arizona licenses and companies. This competitive buyer pool pushes valuations even higher – it’s not uncommon to see bidding wars drive a sale price well above the initial asking. When multiple buyers are vying to enter or expand in Arizona, sellers ultimately reap the reward in the form of lofty sale prices.

Navigating the Arizona Market: Buyers and Sellers

Buyers: How to Win in a Hot Market
For buyers, Arizona’s high valuations mean you must come prepared. To successfully acquire an asset in this competitive market, buyers should:

  • Be ready to move quickly. Attractive opportunities often trigger bidding wars, so speed and decisiveness are essential once a viable deal hits the market. 
  • Expect to pay a premium. Understand that Arizona assets are expensive for good reason – low-ball offers won’t win deals here. Savvy buyers budget for top-tier prices and focus on the long-term upside. 
  • Leverage local expertise. Partnering with experienced cannabis brokers or advisors (like Green Life Business) who know the Arizona landscape can help you identify opportunities early and navigate the complex regulatory environment with confidence. 

Sellers: How to Maximize Your Sale
For sellers, Arizona’s moment in the spotlight presents a prime opportunity – but preparation is key to capturing maximum value. Green Life Business guides sellers through critical steps to capitalize on the market, including:

  • Packaging the business for maximum value. We help organize financials, compliance records, and growth stories into a compelling presentation that attracts top-tier buyers. 
  • Securing pre-qualified buyers. Through an extensive network, we screen and line up buyers who have the interest and the funds, ensuring a smoother sale process. 
  • Navigating regulatory hurdles. From state licensing rules to local regulations, our team helps sellers handle all compliance and license transfer requirements without derailment. 
  • Closing quickly and transparently. We strive for deals that close on time, with no surprises, giving both parties confidence from offer to final handshake. 

By taking these steps, sellers can tap into Arizona’s aggressive pricing environment and drive their deal to the finish line efficiently.

Bottom Line


Arizona isn’t just hot – it’s on fire. In a market where asset values elsewhere are cooling, Arizona continues to deliver record-setting valuations fueled by scarcity, strong demand, and proven profitability.

With experience selling High Times, Statehouse, and securing the largest all-cash cannabis transaction since 2022, Green Life Business has the expertise and track record to position your Arizona business for the strongest possible sale outcome. Whether you’re considering an exit, recapitalization, or expansion, our team brings the market knowledge and deal execution needed to maximize value.

Let’s talk. The next great Arizona transaction could be yours.

Greenlife Business Group Inc.

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?

Making the Cannabis Industry SAFER for America

By Melissa Kuipers Blake, Osiris Morel
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After nearly a decade of conversation and education on the Hill, the Senate Banking, Housing and Urban Affairs Committee finally held a markup on the Secure and Fair Regulation (SAFER) Banking Act. Previously known as the SAFE Banking Act, the “R” was included to account for Sen. Jack Reed’s (D-RI) concerns with Section 10. The senator shared his concerns publicly on May 11 during the “Examining Cannabis Banking Challenges of Small Businesses and Workers” hearing. Sen. Reed said that Section 10’s language “would make it more difficult for federal regulators to raise the alarm about relationships with any customer that presents significant risks to the bank” and shared that such a provision is “not limited to the marijuana industry or the cannabis industry,” but that it “could allow pyramid schemes or all sorts of other interesting activity to go on without an effective response by the regulator.” Since then, he and a group of bipartisan members, including Majority Leader Chuck Schumer (D-NY), Senate Banking Committee Chair Sherrod Brown (D-OH), and Sens. Steve Daines (R-MT), Cynthia Lummis (R-WY), Kevin Cramer (R-ND) and Kyrsten Sinema (I-AZ), have worked endlessly to develop language to resolve such concerns while maintaining GOP support, leading to the SAFER Banking Act.

Number of Depository Institutions Actively Banking
Cannabis-Related Businesses in the United States
(Reported in SARS)

The difference between the SAFE Banking Act and the SAFER Banking Act can mainly be found in Section 10. Changes focus on and determines:

  • How regulators terminate bank accounts;
  • How the Federal Deposit Insurance Corporation (FDIC) develops guidance for financial institutions serving state-licensed cannabis businesses;
  • How income derived from state-legal cannabis business activity is managed;
  • That personal and political beliefs cannot impact a financial regulator’s decision making;
  • That federal banking regulators and state banking supervisors and their secretaries of Commerce and Treasury would create rules to increase access to deposit accounts and how such individuals would enhance customer relationships with rural, low- and moderate-income, unbanked and tribal communities; and
  • How the FDIC would conduct a biennial survey and report on barriers for small- and medium-sized businesses.

During the markup on Wednesday, members introduced and discussed a range of amendments related to criminal justice reform, the racial wealth gap, federal regulators and their processes, rescheduling and the opioid epidemic. In total, there were six amendments, one by Chairman Brown, as well as Sens. Mike Crapo (R-ID), Bill Hagerty (R-TN), Mike Rounds (R-SD) and two by Sen. Raphael Warnock (D-GA). Sen. Brown’s amendment, which would make technical changes to the bill, was the only amendment to prevail on a 17-6 vote.

Senate Majority Leader Chuck Schumer (center), Senate Finance Committee Chair Ron Wyden (right) and Senator Cory Booker (left)

To begin the markup, Chair Brown said that propelling this legislation is a critical step in reversing the damage done by the war on drugs and clarified that the SAFER Banking Act would create a better financial system for small and medium-sized cannabis businesses that lack access to such traditional banking services. Sen. Daines, who served as the committee ranking member in place of Sen. Tim Scott (R-SC), who was in California preparing for the Republican presidential debate, shared that although he opposes legalization or decriminalization, he agreed to sponsor and support the SAFER Banking Act because it would fix the current banking system for cannabis businesses nationwide. After hearing remarks from Sens. Lummis, Catherine Cortez Masto (D-NV) and Sinema, the committee voted on the bill, and approved its passage to the Senate floor on a 14-9 vote. Senators voting in favor of the bill were Brown, Tester, Warren, Reed, Menendez (by proxy), Smith (by proxy), Warner, Fetterman, Cortez-Masto, Sinema, Van Hollen, Lummis, Cramer and Daines, and voting against the measure were Sens. Warnock, Scott (by proxy), Crapo, Tillis, Kennedy, Haggerty, Vance and Britt.

After the vote, Sen. Jeff Merkley (D-OR) thanked Sen. Rand Paul (R-KY) and former Republican Sen. Cory Gardner (CO) for their early efforts and for bringing the legislation and issue to the chamber’s attention and concluded that he hopes to have a robust discussion with the full Senate chamber.

With the bill out of committee, it heads to the Senate floor for additional input, discussion and potentially a vote. Majority Leader Schumer has said he intends to bring the SAFER Banking Act to the floor “with all due speed” and noted that he is committed to attaching Rep. Dave Joyce’s (R-OH) Harnessing Opportunities by Pursuing Expungement (HOPE) Act and Rep. Brian Mast’s (R-FL) Gun Rights and Marijuana (GRAM) Act to the final legislation. Sen. Schumer also shared that such provisions would address the war on drugs, bolster social equity and criminal justice reform and protect Second Amendment rights for medical cannabis patients.

When the SAFER Banking Act will receive floor time remains unclear, but Leader Schumer has made numerous representations that he would like to see it done this year.

Sustainability in Cannabis Packaging: Balancing Preservation and Environmental Impact

By Jack Grover
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Even a cursory review of cannabis reveals that the market has been notoriously wasteful, polluting the environment with chemical fertilizers, misused pesticides, contaminated plants, and—perhaps most problematically—thoughtlessly excessive packaging.

The industry is in dire need of sustainable practices, and the easiest way to start an impactful new trend is from the outside in: a.k.a., adjusting how you’re parceling your products.

Honing in on sustainable packaging isn’t just a good move for the environment. It’s also more cost-effective, less labor-intensive and allows you to provide consumers with the best possible version of your flower—no matter how far through the supply chain it’s had to travel before hitting retail shelves.

Cannabis has progressed: It’s time for its packaging to do the same

By the time legalization began sweeping the nation, the industry already had several decades of experience operating underground. With that discretion came a lot of built-in habits around not attracting attention, and for packaging, the focus was solely on not looking like a cannabis product.

An overabundance of plastic isn’t cutting it anymore—not only when it comes to environmental friendliness, but for the integrity of the product itself.

Today, increased legalization grants operators the freedom to expand without the fear of being seen, and as a result, there’s no longer any excuse for wasteful packaging to be the industry’s norm. Glass jars, Ziplocks and an overabundance of plastic isn’t cutting it anymore—not only when it comes to environmental friendliness, but for the integrity of the product itself.

“I’ve been designing packaging in the cannabis industry since 2013, and a lot of trends have come and gone. We used to put flower in plastic Rx jars and paper envelopes. In general, there was a lot of waste: excess boxes and jars that all get thrown away,” says Legacy’s Chief Cannabis Officer Ryan Hedrick. “And when consumers pull the products out of those containers, your marketing doesn’t remain intact. The box gets thrown away, and now they’re just carrying around a labelless jar. Not only is it bad for the environment, but it isn’t helping you promote your brand at all.”

How sustainable storage optimizes curing and shelf life of flower

As for the curing process, Hedrick used to use airtight buckets, which both took up a lot of room and wasn’t at all effective for maintaining cannabis’s ideal humidity levels. He’s since switched to passive atmospheric packaging, which utilizes increasingly popular technology to keep humidity—and sustainability—in mind. “The buckets weren’t letting any moisture out. On top of that, you can imagine how much room 165 five-gallon buckets takes up in a grow space,” Hedrick says.

The same goes for long-term storage. With humidity-controlled bags, operators can rest assured that their product will maintain its efficacy, because as soon as that pack is sealed, the humidity level is guaranteed to stay the same.

Cannabis brand Lava Leaf Organics relies on passive atmospheric packaging for efficient storage—mainly because of the reduction in carbon footprint and increase in terpene preservation.

“When we think about the energy involved in packaging and shipping large amounts of heavy glass jars compared to TerpLoc bags, it was an easy decision for us,” said Lava Leaf Organics CEO Tony Martinez.

“The bags are recyclable, and compared to glass jars with child-resistant lids, they’re much better at preserving terpenes. Using sustainable packaging allows us to put our best foot forward and to better control our customer’s brand experience.”

Tips for making sustainable storage work for you

Sustainable storage is an environmentally-responsible move for the cannabis industry to make, but when weighing the pros and cons of a big switch like this, operators should also keep in mind how positively it will impact their end product, consumer’s experience, and, subsequently, their industry-wide reputation.

Some product packaging examples in the market today

Placing your products in eco-friendly bags is just the start. There are definitely more tips and tricks operators can take advantage of to prolong the use of sustainable materials and ensure they’re leaving as small a footprint as possible. For example, Hedrick’s team reuses their passive atmospheric packaging for maximum efficiency—especially when it comes to bulk storage or curing.

“We mark all of our storage bags with the original strain, so we can reuse that bag for the same strain as long as it passes testing along the way. When I do so, I take a mixture of SaniDate and water to make sure everything is sanitized and clean,” Hedrick said. “That allows me to reuse them for about 3-4 months’ worth of curing and storage. You can reuse a bucket in that same way, but when it’s time to replace it, you’re still spending another $15-$17.”

Sustainable, humidity-controlled packaging is also ideal for testing consistency. If you send in five buckets of the same strain to be tested, you run the risk of them all sitting at wildly different humidity levels, which means some might pass, and others might be rendered trash.

All of the environmental benefits aside, using sustainable packaging just makes cents—literally. “Essentially, I’m saving a minimum of half a million in packaging every year. That’s my entire staff’s salary for two months. That’s incredible, impactful, significant savings that can make a huge difference for a business trying to expand.”

Cannabis in Texas: A Look Ahead to Legalization and Beyond

By Abraham Finberg, Rachel Wright, Simon Menkes
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A Uniquely Texas Approach to Cannabis

The last few decades have seen the United States move forward state-by-state with the legalization of cannabis. Every state is charting its own unique path, and nowhere is this truer than with the state of Texas.

The Lone Star State has made its way from being staunchly anti-cannabis to expressing its own blend of temperance and careful action, combined with a medical cannabis program that’s expanding.

Any predictions regarding the future of cannabis in Texas must take into consideration both the state’s past and its values. In the end, it’s clear that Texas will embrace cannabis in its own individual way and at its own pace, but with a timeframe that appears to be arriving sooner rather than later.

The Debate Continues

108 years after Texas first banned cannabis and the debate continues. Even though Texas has a medical cannabis program, cannabis is still illegal in the state, with possession of less than two ounces a misdemeanor. Possession of more than four ounces is a felony punishable by a $10,000 fine and from 2-99 years in jail.

Texas’s 2015 Compassionate Use Act created the state’s medicinal cannabis program, which now makes treatment available only in the form of low-THC oil of a maximum strength of 1%, and only to a small list of serious conditions: epilepsy, terminal cancer, autism, multiple sclerosis, amyotrophic lateral sclerosis (ALS), seizure disorders, incurable neurological disorders such as Alzheimer’s, Parkinson’s, Huntington’s Disease and PTSD.

Support for a Stronger Medicinal Cannabis Program Comes from Prominent Politicians

Texas Department of Agriculture Commissioner Sid Miller, a leader in Texas politics and one of the architects of Texas’s burgeoning hemp industry, has encouraged Texas legislators to create a more complete medical cannabis program.

Texas Department of Agriculture Commissioner Sid Miller

“I am for medical use,” Miller said in an August 2023 interview. “We have so much good science now. And we know what diseases it can treat, yet our legislature picks winners [and] losers. If you’ve got this disease, you can get treated, but if you’ve got this disease and cannabis will help you, you can’t get treated. We need to let the doctor-patient relationship make those medical decisions and not some bureaucrat or some politician … I’m not a supporter of recreational marijuana, but if someone has a condition that this chemical will help, they should be able to use it.”

Texas Representative Joe Moody from El Paso has worked for many years to promote adult-use cannabis. He recently co-authored two pro-cannabis bills, HB 1805, which would have expanded covered medical conditions and defined a per-doze THC limit instead of a percentage limit on cannabis products, and HB 218, which would have decriminalized cannabis.

Although both bills passed the House of Representatives, they were stopped in the Senate. The next session of the state legislature, which happens every two years, won’t begin until January 2025, so that is the earliest any change in cannabis statutes could take place.

The Future of Medicinal Cannabis

There are currently only three dispensaries in Texas. They appear to be servicing the state’s 268,000 square miles through a series of weekly drop-offs to satellite “partner locations,” which are open an average of only two days per week. This is not exactly a corner-CVS type of arrangement, and the need for new dispensaries for the state’s 61,000 registered patients is high.

The Texas Department of Public Safety took applications for new medical dispensary licenses between January and April 2023. Tony Gallo, managing partner of Sapphire Risk Advisory Group, which helped twelve licensees prepare their applications during this round, anticipates around ten new dispensaries being approved.

All licensees must be vertically integrated – product must go from seed-to-sale under one license – and each applicant paid $7,356 to apply. If approved, the applicants will owe another $488,520.00 for a two-year period.

Many knowledgeable Texans, including Agriculture Commissioner Sid Miller, predict a fully-functioning medicinal cannabis market is just a few years away. “If you can get it to the floor, probably 70% or 80% of the legislative body will vote in favor of it because we have such good science on it. [Originally] we thought, ‘Well, that’ll lead to recreational use or more drug use,’ but it’s not. It’s a plant derivative. Medical marijuana is not nearly as addictive as some of the prescription drugs we use now.”

The Push is On for Adult-Use

Representative Joe Moody believes that adult-use is not too far away in Texas’s future either, and that the way to speed its arrival is through education. He recently sponsored HB 3652, the Texas Regulation & Taxation of Cannabis Act, in order to start a dialogue on what a retail cannabis market will look like in Texas.

Texas Representative Joe Moody

On April 26, 2023, Moody and his bill received a public hearing in the House Committee for Licensing and Administrative Procedures in which many points about setting up a retail market in Texas were discussed. A 10% cannabis tax was proposed by Moody, to be split evenly between the state and local government. Licenses would be required for those growing, selling, transporting or testing cannabis, although individuals would be allowed to grow or possess it in small amounts for personal use. Legal sale and consumption would be limited to adults 21 years of age and older, like alcohol. And of course, cannabis possession would be decriminalized.

How Strong is the Market Potential for Cannabis?

One indication of how strong even a fully-open medical cannabis market might be in Texas came during Moody’s hearing from the testimony of Estella Castro. Castro owns two medical dispensaries in Oklahoma just across the state line from Texas and suspects most her buyers are from Texas. “They have a Texas plate and they come in and buy $500 to $600 worth of product,” she said. Her two shops generated $158,000 in taxes to Oklahoma, most of which she believes should have gone to Texas.

New Mexico recently legalized adult-use cannabis, and the small towns along the Texas-New Mexico border are seeing a lot of traffic from Texas. In the first week of adult-use sales, the New Mexico did adult-use sales totaling $6 million. Of those sales, $1.5 million came from dispensaries in 5 small border towns.

Florida and California Suggest the Scope of a Mature Cannabis Market in Texas

The potential for a fully developed medical cannabis market can be gleaned by studying the next smaller state, Florida, which has an open, mature, medical cannabis market. Florida, with 20 million people, is about two-thirds the size of Texas, which has 30 million inhabitants. Right now, Florida boasts 700,000 cannabis patients whereas Texas only has 61,000. Simple math suggests a fully open, mature, medical cannabis market in Texas could see over a million patients gain relief.

California is the nation’s most populous state with 39 million inhabitants, and its cannabis revenue gives some perspective as to the size of a Texas adult-use market. 2024 estimates of California’s cannabis revenue suggest the Golden State will see $7.2 billion legal cannabis sales while the illegal market will generate another $6.4 billion for a total of $13.6 billion. With a reduction for Texas’s smaller size, these numbers suggest a fully-mature Texas adult-use cannabis market could generate close to $10 billion in annual revenue.

Large adult-use states like California and New York are notorious for having an illicit market that threatens to derail their legal, tax-paying cannabis license holders. Texas’s strong business-friendly focus should help deter such an illicit marketplace from gaining too significant a foothold.

The Back-Door Cannabis Industry

Meanwhile, an extensive “back door” cannabis industry is in full swing in Texas. CBD shops now sell delta-9 (fully psychoactive) THC/CBD gummies and tinctures made from the hemp plant, which is the low THC-version of the cannabis plant. These THC/CBD products adhere to the 0.3% definition of hemp as required by the federal 2018 Farm Bill and are legal and available for over-the-counter or online purchase in Texas’s CBD stores.

Gummies, tinctures and other products made form them hemp plant

Current estimates are that there are over 5,000 hemp, CBD and cannabinoid retailers, manufacturers and distributors in Texas that employ more than 50,000 workers and generate more than $8 billion in annual revenue. With these numbers, the 1,100+ licensed Texas hemp growers are sitting well where they are and are poised to take advantage of a legal adult-use market if and when Texas decides it is ready to go down that path.

Next Steps for Texas’s Cannabis Market

People familiar with Texas’s cannabis market believe that adult-use is a ways down the road for the Lone Star State, and that the near-term focus needs to be on decriminalization and achieving an unincumbered medical cannabis system. Tony Gallo of Sapphire Risk Advisory Group advises the Texas cannabis community to concentrate on “increasing what conditions are allowed for medicinal use” and “increasing what areas of the state it’s allowed to be sold.”

There is a groundswell of public support for decriminalizing cannabis as well as for allowing adult-use. A December 2022 poll showed 55% of Texans support legalizing at least small amounts of cannabis for recreational purposes, and another 28% said it should be legal for medicinal purposes.

A February 2023 poll by the University of Houston found that 82% of Texans support the Legislature passing a bill that would allow people to use marijuana for a wide range of medical purposes with a prescription. The belief that cannabis is a “gateway drug” that would make people more likely to use other illegal drugs is losing traction as well – 70% said it would make people less likely to do so or would have no impact.

Final Thoughts

The demand for cannabis in the Lone Star State is strong. With the likelihood of a fully-functioning medical cannabis market coming soon, and the possibility of decriminalization not too far behind, it’s clear that the future of cannabis is bright in Texas.

While the legalities around adult-use will take longer to work out, and the place of hallucinogenic hemp in the mix needs to be examined and clarified, one fact is certain. The path forward that Texas cannabis takes will certainly be a unique one, as unique and as individual as the Texan people themselves.