Editors’ Note: This is the transcript version of the podcast. Please note that due to time and audio constraints, transcription may not be perfect. We encourage you to listen to the podcast, embedded below if you need any clarification. We hope you enjoy!

As the former head of U.S. Marketing Communications at AB InBev, Lisa traded her crown as “Queen of Beers” for a new moniker: “The Cannabis Publicist.”  She established Trailblaze to bring a more sophisticated, disciplined “big CPG” approach to cannabis brand storytelling and help new players in this nascent industry find their way into the mainstream. (Plus, the “Bud Girl” pun was irresistible).

With over twenty years of experience working inside some of the world’s most admired companies, Lisa has earned a reputation for building culturally relevant consumer brands through creative campaigns and flawless execution within high-stakes, regulated environments.

Under her leadership, Trailblaze has become a go-to marketing communications agency for Fortune 500 companies entering the burgeoning cannabis industry, as well as start-ups looking to put their brands on the map.

This show is presented to by 8th Revolution:

At Eighth Revolution (8th Rev) we provide services from capital to cannabinoid and everything in between in regard to the hemp & cannabis industry. Our forward-thinking team can diagnose, analyze & optimize every detailed nuance of your company to keep your business safe, smart, and profitable. Our flexibility and experience combined with ongoing research create unique insights into how to best grow your market share. Contact us directly at [email protected]

Bryan Fields: @bryanfields24

Kellan Finney: @Kellan_Finney 


[00:00:00] Bryan Fields: What’s up guys. Welcome back to that episode of the dime I’m Brian Fields. And with me as always is Kellen Finney. And this week we’ve got a very special guests. Lisa Weezer, founder of trailblazer. Lisa, thanks for taking the time. How are you doing? 

[00:00:14] Lisa Weser: I’m great. Thanks for having me on 

[00:00:16] Bryan Fields: excited. Dive in Kellen.

[00:00:17] How are you 

[00:00:18] Kellan Finney: doing? I’m doing well, just watching it snow out here in Colorado and excited to talk to another east coasters that will be decided before 

[00:00:25] Bryan Fields: the show. So she’s in the Eastern time zone. So I think that would have to put her on the east side of the map. Cool. So Lisa, before we dive in, it’d be great for our listeners.

[00:00:33] Get a little background about you and how you got into the Canada. 

[00:00:36] Lisa Weser: Sure. In my previous life, I was head of marketing communications at AB InBev, which you probably know best as Budweiser and bud light, the king of beers. And I oversaw brand communications for their entire us portfolio of beers and non beers.

[00:00:51] Half of the category, Like seltzers, et cetera. And that included, all of their super bowl spots sponsorships of, everything from the [00:01:00] Grammys to, basically every sports league. So it involved a lot of travel, a lot of events, a lot of, marketing and advertising, celebrity work, et cetera.

[00:01:09] And getting to work with a lot of big names and big budgets. So moving into cannabis was very humbling in that. A lot of those resources. But it was around about 2017. I think when I first saw constellation make their initial investment in canopy growth, which was about a 10% investment, it’s now almost 40%.

[00:01:27] That was a real bellwether moment where I saw everybody around me kind of start to freak out in the alcohol world. Cause it was like, okay, this is happening. These worlds are coming together. Alcohol is going to stop fighting their Awana and actually. Back it. And for me that was really a signal that it was time to bounce and start my own practice.

[00:01:46] And at that point I had done about six Superbowls and, it was starting to feel like Groundhog day. So I was ready for something new. So I had made the leap to start my own. Which I really launched in 2018, starting by getting into cannabis beverages since I knew that space [00:02:00] really well.

[00:02:00] And, started humbly taking kind of any client that I could work with, small budgets, startups. My dream was to get back into working with big brands again. And within about two years, we had become an agency of record for canopy growth, ironically. So the company that triggered me to get into the industry so it has come full circle.

[00:02:18] Bryan Fields: And I’m really glad that you shared that. So before we dive into some of those specifics, moving from a, such an established well-positioned career to cannabis, was there hesitancies, were there people around you saying Lisa what are you doing? It’s cannabis. Can you take us through that?

[00:02:32] Lisa Weser: Yeah. I didn’t tell anybody that I was doing it right off the bat. I think I was most afraid to probably tell my parents, even though I’m in my forties, you’re still afraid to tell your parents that. Cause they always want you to have that solid job having. I’m stuck.

[00:02:45] And I was shocked that my parents really backed it. I think that they understood the opportunity with cannabis and also had seen, what my lifestyle had been like for the past several years behind the scenes of job like that it’s a dream job, but it is a lot of work. It [00:03:00] is a lot of travel.

[00:03:00] It is a lot of strain. And and ultimately I think that there’s a big difference working for somebody else’s brand versus building your own brand. And I really feel time, if I was going to work that hard to do it for myself, so got a lot of faculty in there. That said, in my role I’ve been a spokesperson for a lot of brands.

[00:03:17] So the day that I had to turn all my socials over from Budweiser to cannabis was definitely frightening because at that point I was still getting calls from other CPG companies. And I did feel that once. Signaled and branded myself as cannabis that I might not ever be able to go back. And that it could be like the death knell for my career.

[00:03:36] Shockingly, and to my great surprise and pleasure. I think it’s probably the thing that made my career, I really thought Budweiser was going to be the height of my career. But cannabis, especially at the time that I got in it, there weren’t very many people doing it, especially in marketing and PR.

[00:03:52] So it was actually a way to really build my brand and stand out. And because I knew so many people in the entertainment [00:04:00] industry, The CBG industry, they all knew I had made the move and once they did, they started referring people to me. Cause they all were like, oh, I know somebody doing cannabis.

[00:04:08] So to this day, four years in a hundred percent of my business is referral based. I’ve never had to do marketing or go try to pitch a new client. It’s still all comes in referrals from my network, which has been fantastic. 

[00:04:20] Bryan Fields: Yeah, that’s amazing. And I know one of your clients is Mary Matt, and we had the fortunate time to speaking with Howard about the the genius marketing opportunity.

[00:04:28] So I’d love to get from your perspective, when Mary med approached you about the brownie idea, can you take us, what your role was in that and what it was like, moving on from, let’s say the origin of that da getting the photo and then how you approach the media. 

[00:04:41] Lisa Weser: Yeah in this case they didn’t approach us with the brownie idea.

[00:04:44] They approached us with a challenge. If you’ve talked to Howard and you know him, he is a storied marketer in his own. And a pretty tough cookie when it comes to a client, there’s they always say there’s nothing worse than having a client that comes from the same background as you, because they know exactly what they’re doing and they’re going to push you harder than [00:05:00] anybody else.

[00:05:00] And that’s how he knows it. When he hired us, he said, I want a PR star once a quarter, we’re gonna he hired us on fact, but was said, basically prove yourself. I want a stock, but he didn’t really give us any parameters other than, here’s some of the things we’re going to be doing this quarter.

[00:05:15] So we took a look at what they had coming up. And one of the things that was coming up was the launch of this brand Bobby’s baked, which was an edibles brand that included. Little brownies. But the problem was that they were a mark. They were launching it in one market, Massachusetts, not even in Boston, in a small dispensary, about 90 minutes outside.

[00:05:33] And it was, so it had really limited availability. Also. They were launching it right before the holidays, which is a terrible time to do anything because it’s such a busy time for reporters and there’s so much other news going on. So we looked at that and decided that we wanted to build a staunch around that moment.

[00:05:52] We always keep what we call a cultural calendar. So my team at the beginning of the year, we look at everything that’s going to be going on in the year [00:06:00] from, the Superbowl in the Grammys to some of those silly little days national brownie day. And you see them on Instagram now, right?

[00:06:07] It’s oh, it’s sibling. Dog day, whatever. We put all of those on the calendar as well as the cannabis moments, like four 20, and we’d look at the clients who are representing and we try to make some matches and see if we can find some fun ways to bring their brains. To culture.

[00:06:23] So in this case, we saw national brownie day with coming up coinciding with the general timing that they wanted to launch this brand. So we approached them with three ideas. One of them was for this brownie. The first idea we approached them with, we actually liked better, but what’s going to cost. Six figures to do once we started specking it out and it just wasn’t in the budget.

[00:06:44] So we went back to the drawing board with this brownie idea and presented it to Howard. He loved it helped us build on it because, we had the idea, but we couldn’t make the brown and he had to help us get that done in their facility and he had to sell it in. It what might’ve seen as silly, [00:07:00] risky idea into his leadership.

[00:07:01] So he really Take it to the finish line so that it could actually execute. And then, he trusted us to do it. And it was really a true agency, client collaboration, where we all rolled up our sleeves and figured out how we were going to get this done. And it turned out to be, one of the most viral stories of the year, even at the end of the year, which we’re still blown away.

[00:07:20] I think it’s still surpassed even my biggest Superbowl ad in terms of 

[00:07:23] impressions. 

[00:07:24] Bryan Fields: Yeah. And I’m really glad that you shared that because I was trying to compare it to a super bowl impression and I wasn’t even sure, because once the numbers get up to that size, it’s almost really challenging to know because the numbers are almost silly at that certain point.

[00:07:36] So take us through that process. You get the photo. How do you go about, communicating with mainstream media about this? Because there’s always sometimes a hesitant we’ve found with. Covering cannabis companies, whether it’s their audience is different or there’s a stigma attached. So is that a challenge that you had when you wanted to get this photo and try to get into the.

[00:07:54] Yeah just to back up, part of the reason that we decided to peg this to national brownie day, and part of [00:08:00] the reason that we have a cultural calendar is because reporters have an incredibly hard job, right? They have to. Several stories a day sometimes if not, per week and they have to sell them into their editors and for a story to get written, it has to have a sense of urgency or reason to write it today.

[00:08:17] So when you’re pitching, they’re getting a hundred or more pitches a day, so you have to give them something with a hook. That was part of why we picked this day is so that there would be a moment Granted national brownie day is not a day that you probably even heard of before.

[00:08:29] It’s not like it’s a huge moment, but we knew that it would give them a reason to. But beyond that, we knew that they needed to have a strong visual assets. In talking to Mary med and to Howard, we said, here’s what we need to make this successful. And, we need you to be able to actually make the brownie.

[00:08:45] And it needs to be big enough to be. Significant right. If we’re going to get the types of results that we want. So we went and we looked at Dennis and we looked at what the biggest one was. We did, we scoured Google to see what anybody else had done, what visuals existed so that we [00:09:00] could come up with kind of the base parameters of what we needed this thing to be.

[00:09:03] And then we set up. We need a strong photo. We need one really strong visual asset. It can’t be photo-shopped, it can’t be overproduced. It has to be like a money shot, but it has to feel authentic. And that was really what we asked for and that’s what they delivered. They. Organize the photo shoot the day of very low fi just getting a photographer in there with a camera and figuring out how to shoot this thing, getting the actual people that they fit in the photo, which turned out to add a lot of fun, the expressions on their faces, I think got a lot of the commentary and pickup.

[00:09:35] And that’s always true, when you are, when you’re building something for marketing, especially. In a digital world and especially during a pandemic, when everybody is looking at a screen all day, A strong visual is what you have to absolutely lead with. The other thing that we asked for was just a by the numbers give, so we knew that we needed to say this thing weighs this many pounds.

[00:09:57] It has this many milligrams. We [00:10:00] actually had infographic built to go along with the photo that didn’t get as many as much pickup, but we were able to pitch and say, this thing weighed this much. It took this many sticks of butter, this many. Flour. And I think that really helped to bring it to life for reporters and help them understand the magnitude of it.

[00:10:17] And that helped with the pickup 

[00:10:18] It’s so well done. And I really enjoyed as a marketer by trade, going through the process, seeing it, recognizing what was actually happening and then going back and figuring out, like, why is this thing so amazing. I keep staring at this photo and I don’t understand why I’m obsessed with the concept of it.

[00:10:33] So two quick questions for you, and then we’ll bring Kellen in. I apologize. Lisa did you know, in your gut that this was going to work, like when you saw the photo, did you have a feeling that this was going to hit? And then second, at what point after you started pushing out and doing some of the press for it, did you recognize this thing is really taken.

[00:10:51] Lisa Weser: Sure. Look, we were asked to do a viral stunt and it’s always the worst. When someone asks you to make something go viral because you can’t make something go viral, [00:11:00] especially when you’re doing PR, which is earned, meaning you’re not paying anybody to write anything. You’re not putting any money behind this.

[00:11:06] You’re completely counting on the site guys to pick this thing up. That said I’ve done a lot of these things in my career, so I know. What the formula is in terms of what people will pick up, what you can’t control is timing. I once worked on a campaign and a stump, it was supposed to launch in the day with us, a launch turned out to be the Boston marathon bombing.

[00:11:24] If something else happens in the news, it can completely. Over and we didn’t have a ton of flexibility on the state because we had decided to do it on national brownie day. But we knew that we had a formula that was intended to work. We had, the great photo a great story behind it.

[00:11:42] We know that the first idea that we had I’ll, I don’t know if Howard shared that the first idea. There’s also the same week, there’s a national gingerbread day and we were going to build the world’s biggest gingerbread house that was addable in decorate it with a bunch of edibles. But then when we were looking at fabricating it and the [00:12:00] legalities of transporting it and how it was going to be done, it was getting really expensive and really complicated and time intensive.

[00:12:06] And we just couldn’t get it done in the timeframe. Sometimes the best ideas are simple and like who hasn’t had. An edible brownie experience or a formative one. It’s just the first thing people think of when they think of an edible. So we knew that it was going to be so relatable to the masses. And even if you’ve never touched cannabis what a cannabis brownie is.

[00:12:25] So I think that this idea actually ended up more effective than a gingerbread house ever could have been. So sometimes you get a happy accident when you have the challenge of time and budget. So that was the first piece of it. But with, there’s never a guarantee that it will work in terms of what we knew it was working.

[00:12:42] We actually announced it the day before national brownie day by design because we knew that reporters would need time to get our call or email or text. The story, that they were going to have to get that it was going to take some time. So we wanted to get it to them the day before.

[00:12:57] And there’s always that nervous moment, the [00:13:00] first six hours of that day, we send it out and, we were waiting and there weren’t really, there was maybe a story, two stories, but we weren’t getting like the. Spot. And I remember telling Howard wait for it. And around I think maybe 1:00 PM, 2:00 PM in the afternoon, it really started picking up TMZ picked it up.

[00:13:18] We started seeing some influencers tweeting about it that had a lot of followers, so it started getting traction on social. And then, you know what happened? With a stunt, if you’re successful, is that people start writing stories about the stories. So you stop having to pitch it and send it to people.

[00:13:33] They just start seeing it and writing about what they’re seeing. And then, people start riffing on it, meaning it, and it gets a life of its own. And by the afternoon of the day that we launched it, that was happening. So that the next day was national brownie day and it was running. One of the funniest things was the first person I pitched it to was.

[00:13:53] At USA today who covers a lot of the national holidays. And she said, Brownie day just never gets a lot of traction for us. I’m probably gonna [00:14:00] pass on this, but send it to me anyway. So I did and they didn’t write about it and tell it went viral and then they wrote about it. So they initially passed, but then once it became, everywhere in interesting, then they decided to write about it.

[00:14:13] And USA today is probably the most mainstream mom and pop publication that you’re going to get. So to have a pot brownie on the cover, of that lifestyle section, Yeah, that’s 

[00:14:24] Bryan Fields: super satisfying. 

[00:14:25] Lisa Weser: Yeah. That’s when, it’s a, 

[00:14:26] Bryan Fields: it’s a huge achievement for the industry as a whole though, right? Like you’re not just fighting in an individual battle.

[00:14:32] You’re fighting also the stigma battle of cannabis and kind of parlaying that together. So that’s a huge achievement for the industry, especially for Canada cannabis. 

[00:14:41] Lisa Weser: Yeah. And I think that’s what everybody in the industry is trying to do is to mainstream and normalize this thing. That was goal a, our second goal was just to help put Mary med on the map, the, our tagline it’s actually that we put brands on the map, we really like to work with emerging brands that people maybe haven’t heard of, or don’t know a lot about yet. We do work with some really big [00:15:00] names but we work with a lot of smaller names and Marion bed is a smaller MSO that is doing everything right. That is really awesome. It writing kind of a star ship upright now.

[00:15:09] But that was really a moment that I think helped them get a lot of media attention not just amongst press and consumers, but also amongst the analysts and investors and, potential retail. So created a lot of excitement and I think business traction for them above and beyond. It’s good for the industry, but it’s also good for it’s, it ultimately is about a lot more than just one good PR stunt.

[00:15:33] I think that it can deliver business dividend. And it even bumped the stock price for, it actually stayed up, but it really bumped it for about a week. It really did. It really did deliver for a $3,000 investment. 

[00:15:44] Bryan Fields: I was literally just going to say that.

[00:15:49] Now I want to 

[00:15:50] Lisa Weser: make sure people know it normally can cost more than 3000. 

[00:15:53] Kellan Finney: I was going to ask a question about that. Has it been even more satisfying being able to utilize all these skillsets that you [00:16:00] generated working on kind of a bigger brand like Budweiser and then coming into cannabis, you mentioned like the first idea was going to be six figures, which probably is not a big deal in the Budweiser world, but in the cannabis world, it’s that’s not even a possibility.

[00:16:13] So has it been super satisfying, being able to. Utilize all these skills and then having to work within new boundaries, if you will, from like a creative perspective. 

[00:16:24] Lisa Weser: It has, I think it was initially frustrating getting into the cannabis industry because I am an ideas person at Budweiser.

[00:16:31] They really pushed us to constantly be pushing that envelope and bringing ideas. We did things like send Budweiser to, Mars, and we did crazy campaigns that were designed to keep people talking about 150 year old, declining brand, which is a challenge. So I’m initially getting into the industry.

[00:16:48] We would have great ideas and bring them to clients. And if that still happens that they just can’t afford to do them, or they just don’t have the infrastructure. And just the human resources to help get some things like this [00:17:00] done. Even if they love the idea. And that happens again and again. So absolutely, last year I think.

[00:17:05] We really started to get traction working with canopy growth because we were able to launch Martha Stewart CBD. And that was really, we started to work, with some bigger celebrity names in cannabis. I know, there’s a lot more mainstream celebrities that are now getting behind brands, developing their own brands.

[00:17:21] And that was a real moment to do something big and do something mainstream. But we were working with an ALA celebrity and we had, a much larger budget on that project. So even though success is never guaranteed, we knew we had a formula. There was no question that was going to be successful.

[00:17:35] It is, I think in general what’s been fun about cannabis is that, even at this point in my career, 30 years in to constantly have to like, Solve problems and figure out how to do things faster and cheaper. And, with a small team is invigorating. It’s like a Wordle.

[00:17:51] It keeps your brain sharp. I don’t know, time for word all because I’m doing this. So yeah. 

[00:17:57] Bryan Fields: Have you found since you’ve been in the cannabis industry, [00:18:00] the communication with reporters has been less education and more about pitching the stories or are you still focusing more on the education and communicating to them some of the benefits of the products and less about the stigma.

[00:18:09] Can you share more about. 

[00:18:10] Lisa Weser: It depends on what the product is. There’s always a certain level of education, but at this point, most of the major publications have at least one reporter who is dedicated to this beat. Even the wall street journal, granted they’re sharing it.

[00:18:23] Like beer or vapes or cigarettes. But nonetheless, there are people that are dedicated to the segment and they do understand it. And that is really helpful. I think what’s more important in PR across the board in marketing is you have to communicate relevance. So it’s not just product communication, but like, why the hell should they care?

[00:18:44] And why do they need to write this story versus the other 89 stories? Somebody emailed them in. Our right. So it’s really about building relationships with the press and being able to consistently bring them things that are relevant to understand what they write about and what they don’t write [00:19:00] about.

[00:19:00] So that you’re, you demonstrate that you understand their job and their beat and what they cover. And and yeah, that said there are some things like, rare animals. You fit come out. CBN for example being something newer that, Brad has required more education.

[00:19:15] I think we’re starting to see ourselves getting past the here’s what THC is versus here’s what CBD is. We were definitely doing that at the beginning, that is starting to change. There’s a really Nick a mix, but ultimately it comes down to relevance and whatever you’re doing, whether it’s for that paper or.

[00:19:32] You have to make it relevant for people. And that’s where ideas like the brownie, really can be successful because, you’re giving them something that they know they’re going to get clicks on, that they know is going to perform. You want to help them be successful and giving them a story that you know is going to perform for them.

[00:19:50] Bryan Fields: Queen of beers, to cannabis publicist. I love the tagline. Do you see the two industries merging as the future kind of moves in that. 

[00:19:58] Lisa Weser: Oh, yeah. They already [00:20:00] are. I think I said upfront that when constellation started moving in on CA on cannabis that got interesting, but today, I recently spoke at a cannabis conference and, one of the, one of the biggest players SAB, Miller, cores, they now have very well, they have, a lot of development.

[00:20:18] They work with trust beverages, so they have a lot of. Development going on in this industry, my former boss, who was, who, the CMO that hired me at Budweiser just moved over to Pabst and they have perhaps labs in California, which is dedicated to THC beverages. They’re real. Tilray has a partner.

[00:20:36] With with AB InBev that they called fluent w where they’re developing beverages. So at this point, there’s a ton of that going on. At the macro level, as well as there’s been a lot of really exciting startups, like can or recess that have, co come up very quickly and gained a lot of distribution.

[00:20:54] The other thing I’ll say is that what I’m seeing a lot of. These beverages, especially [00:21:00] CBD beverages are starting to really being on beer distributors as their route to market. Perfect example, canopy growth. We launched their first CBD beverage in the U S called Quatro through a partnership with Southern Glazer’s wine and spirits which is the biggest wine and spirit distributor in the country owned by or.

[00:21:19] Their partner is constellation brands, the biggest alcohol, one of the biggest alcohol companies. So the same company that is, distributing your whiskey and your vodka is now distributing your CBD beverages. And those distributors are actually really interested in learning more about the segments.

[00:21:36] I actually was just invited by some beer distributors to come and talk to them about CBD beverages because they want to learn more. I think that they see. That there’s money to be made. This was the same way that energy drinks first rolled out was through beer distributors. And now, beverages like monster, have been such a share that way.

[00:21:53] So it’s coming together, not just, not just from a brand perspective, but just in terms of a distribution model. And I think that’s [00:22:00] going to be really interesting, especially when we hit federal permissability someday and you start to see THC sold in an alcohol store, and that will happen. 

[00:22:09] Kellan Finney: You think that they’re going to merge.

[00:22:10] And so there’s going to be like THC alcoholic beverages from infusion standpoint, or do you think they’ll always just run parallel to. 

[00:22:18] Lisa Weser: I think it’s going to, I think it’s going to be a long time if ever before those merged they’re just, I think that would be like the last line to cross is where, you have them, you have an alcoholic beverage.

[00:22:29] That’s also infused with THC and frankly, that could get a little dangerous.

[00:22:37] Bryan Fields: But 

[00:22:38] Lisa Weser: I do think you’re going to see them side by side on the shelves. Absolutely. And that THC beverages, I think that they have the potential to overtake alcohol beverages being one of the biggest sites. Some segments it’s growing right now is non-alcohol. Alcohol. So you’re starting to see a lot of zero alcohol.

[00:22:57] I Oh, doulas was the only thing that exists when I was coming up. And now there [00:23:00] are so many, no alcohol versions of what would normally be a cocktail or a beer spirit. So I think people are really starting to move into this space where they’re less interested in alcohol, but they do. The industry calls, mood, modulation, right?

[00:23:14] Being able to control how they feel. And I think you can really dial that in with cannabis, whether it’s CBD, THC, et cetera. Then you can with alcohol and it can get a lot more nuanced and that science is still early. I think it’s going to continue to evolve and you don’t have the negative drawbacks that you have with alcohol around.

[00:23:33] Depends. How you feel about addiction and cannabis? I don’t believe cannabis is addictive, but anything can be from a habit, but I think that it’s a lot less dangerous than alcohol can be and certainly better for your body. Then alcohol can be for most people. Guys.

[00:23:46] Bryan Fields: Yeah, where we’re in alignment with that we are extremely bullish on the beverage market and think it is still being like, slept on as the fact of what we’ve seen with the seltzer market and how that’s just, I would say exploded might be understating how quickly [00:24:00] it’s risen its popularity.

[00:24:01] So Lisa, what’s the biggest difference you’ve found between messaging between the two different candidates.

[00:24:06] Lisa Weser: Messaging could be your versus messaging cannabis, correct. It’s unfair. But Everybody accepts alcohol marketing, and cannabis marketing still remains. So taboo. A perfect example of this is when we applied for the Guinness book of world records with the brownie we got back that said that they no longer accept any admissions of products that are tied to cannabis.

[00:24:26] A federally illegal adult use drug. And we were like, but it’s the Guinness world record. From Guinness beer and adult use about rich, right? So there’s definitely this hypocrisy around this category where, marketing alcohol is, acceptable and even promoted. You’ll see names all day of, wine moms and red mouth and, and day drinking, but, cannabis.

[00:24:52] For any adults people don’t want to let their boss know that they use cannabis or their kids know that they use cannabis. Whereas you would have a [00:25:00] glass of wine, in front of your boss or your children at an, at an event anytime. So it’s that natural hypocrisy and the tabbing nature of it that I think is still gonna take a long time to over.

[00:25:12] But that’s where, things like the brownie that are done in a lighthearted humorous way. And that also, get the today show where my mom is going to hit. See it, hit the late night, where people are going to see it starts to, I think slowly make a difference in the public consciousness.

[00:25:27] And that’s already happening. When you look at the acceptance rates of America, on both sides. The aisle know the majority of Americans are comfortable with cannabis, approve it. For adult use want to see it legalized or at least don’t care anymore, whether or not it is and also see the economic benefits as well as the, the wellness benefits.

[00:25:46] So I think that, 

[00:25:48] Bryan Fields: yeah, and I think it’s really well said, because as you perfectly stated, people see alcohol commercial, the time they don’t blink twice, they don’t assume that Kellen’s sitting in. By his computer drinking all day. But when you tell [00:26:00] someone else that you consume cannabis, their immediate assumption is, or like I forgot what the politician was, where he asked the reporter, are you high now?

[00:26:07] And it’s just, it just shows that we’re still so far away. So I guess the question for you is given your experience and the importance of Superbowl from a marketing perspective, when will cannabis companies have the allowance to do that type of messaging? And is there hope in the near future that cannabis can have that public statement where we can start removing this.

[00:26:26] Lisa Weser: I tell you whenever the first CannabisSuperbowl ad comes out, I sure as hell hope that I’m the one that’s working on it. If it doesn’t happen, it will be because ABI does such a good job of blocking out all competition including other beers that I think. I see it, it’s going to be when there is an cannabis beverage from one of those big existing advertisers, I’ve worked with Pepsi.

[00:26:49] Obviously with Budweiser these are all brands that, on some level have their. Fingers or at least their debt, their R&D involved in cannabis. And so I [00:27:00] think what you’re going to see is probably CBD beverages first that will come out from, from the Pepsi’s and the AB InBev and the Miller Coorsof the world getting the first super bowl ads.

[00:27:11] And that’s going to be, a big step in mainstreaming. In the meantime, one of the main things that you learn early in the alcohol industry, after the days of Joe camel the alcohol industry was very smart in creating their own marketing regulations to avoid the government, regulating them.

[00:27:28] So they created some pretty clear regulations around what is and is not allow. In alcohol marketing that the entire industry, self polices and adheres to things like you can’t use Santa Claus, you can’t use cartoons. You can’t show alcohol depicted, people drinking in water or in the car, even if it’s parked, et cetera.

[00:27:49] That doesn’t really exist in cannabis yet, but we are starting to see organizations like Cresco who are starting to put out their own marketing regulations. And so I think. There [00:28:00] are some things that cannabis can learn from alcohol and tobacco for that matter to help accelerate this process by just like sticking to the rules from the get-go going to market in the right way from the get-go and self policing so that they can, grow brands in the right way.

[00:28:16] And they’re not going to have some of those setbacks that the other adult use industries have 

[00:28:20] Bryan Fields: experienced no more of those candy cigarettes anymore. 

[00:28:25] Lisa Weser: I had those in my time 

[00:28:27] Bryan Fields: count. Do you agree with that from an alcohol standpoint? Yeah, I think it’s needed, 

[00:28:31] Kellan Finney: honestly, from a cannabis perspective. I think it’s the only way that we’re going to be able to have like legitimate advertising opportunities is if we’re able to.

[00:28:41] Put rules together and approach like Googles and Facebooks and all these normal advertising outlets. With a pre-established set of rules, I think is going to help the conversation. You know what I mean? It can’t hurt. 

[00:28:54] Bryan Fields: Yeah. I think if 

[00:28:55] Lisa Weser: anything, cannabis is going to have to play a cleaner game than anybody else.

[00:28:58] Just because we, it’s [00:29:00] already such a taboo for the reasons we’ve talked about. There’s already so much topography that there’s less room for error. So we need to approach it that way from the get go. And there’s definitely been some bad actors in the space, there’s.

[00:29:12] Skittles, Skittles looking products that have come out and, some other things that are riding that line. But what I’ve seen is a real clap back from the industry of, other actors in the industry shutting that down for the protection of, the greater good, so I think that self policing is already happened.

[00:29:28] Bryan Fields: The one concern that I have. So here in the east coast is that we’re just unfamiliar with some of these like well-established brands. So sometimes I see friends would send me a photo of some of these underground products and they say, look, how cool this is. I can get it. And it’s no, someone didn’t buy that illegal dispensary.

[00:29:42] And here are the reasons why, and they’re like, oh, I didn’t know that. In the other way that goes, he sent it to a friend or someone else’s parent or that a child had set. And now you’ve like you were saying we’re fighting uphill. So behind and we already feel like we have two hands tied behind.

[00:29:54] It’s going to be really challenging. And I’m fearful that if we don’t do something quicker from a messaging standpoint, that [00:30:00] more bad actors could continue to infiltrate the industry. 

[00:30:04] Lisa Weser: Yeah, no, you’re right. You’re right. But what I am seeing is that there are a lot more there are a lot more marketers from.

[00:30:13] Established CPG and retail moving into the cannabis industry that I think are going to make a really big difference. One of our clients is med men. Their CRO who oversees retail and marketing is from Zappos. One of the most successful DPC. Out there. And, we’re continuing to see cannabis companies attracting, people from fashion, people from Nike, people from some of these more established brands. I think, that they like what, even with trailblaze, we, one of the things that we say right off the bat is. From day one, then trying to bring a more sophisticated, disciplined approach to cannabis. But even if you are, even if you are not a big CPG doesn’t mean.

[00:30:51] Try to act like one, even if you don’t have their budgets, if you’re a married man, doesn’t mean that you shouldn’t try to market like one. And we really believe that’s possible and [00:31:00] I’m really enjoying, starting to see the caliber of experience and talent in the industry really start to, to lift and change.

[00:31:08] As these businesses get a little more sophisticated, 

[00:31:11] Bryan Fields: perfectly set. Influencer partnership. How do you feel about celebrities attaching themselves to cannabis brands? 

[00:31:19] Lisa Weser: When it comes to attaching themselves to a cannabis brand that already, that it sounds problematic. And there’s definitely a level of that happens in cannabis and really in every industry always celebrities that are just cruising to take a check.

[00:31:32] And you can smell that a mile away. I think I’ve worked with celebrities like that and it is incredibly painful. You can tell when they, their heart is not in it when they’re just in it for the money and when they don’t really want to do anything. That’s outside of their contract or in their contract for that matter to promote that brand.

[00:31:47] I think that it’s not bad for the industry because look, any level of celebrity, if it’s especially a well-regarded celebrity is going to help bring attention and normalization. But I think what we really want to see [00:32:00] is celebrities that are getting into it for the right reasons that are using these products.

[00:32:04] That it is authentic to their brand and who they are and a natural extension of their brand. So yes, there’s people like Seth Rogen right there who make a lot of sense, but there’s also, people like Martha Stewart who, I had the privilege of working with her over the past two years.

[00:32:20] One of the hardest working women in America, she is in there making those formulations. She tasted every gummy, every CBD, gummy on the market available in critique them to figure out what she wanted hers to taste like. And the texture, the consistency, the flavors, overseeing the packaging every, absolutely every detail.

[00:32:39] And then also, really going above and beyond. To talk about, these products in her interviews, on her social. She does not have to do that. And obviously, really really cares. Does he use CBD herself and with her pets. So when you have a celebrity like that who is really all in, I think that’s very good for the industry and it’s [00:33:00] doing what we really want to see, which is, to bring new people into the industry, stuff’s fantastic, but I don’t know that he’s bringing people into the industry that aren’t already cannabis users.

[00:33:09] I think Martha is bringing people in. Even if just as CBD users, but that can be a gateway to acceptance or to try and other types of products. And she attracts everybody from, 104 to 14, so it’s a pretty broad spectrum. I’m for it. And it definitely, from a PR perspective, look, having a celebrity is always helpful for, getting a little more attention.

[00:33:31] Again, giving reporters a reason. 

[00:33:33] Bryan Fields: Yeah. And I think that is so important, especially from a stigma standpoint, martha has her brand and people trust her. So when she is going through that process and she stands behind a product, others lean onto that and they feel good about trying the product because, maybe they wouldn’t try CBD, but if Martha’s name’s attached, then more likely to consider it.

[00:33:49] If they’re a big fan of the loyalty of the product. So a hundred percent agree. 

[00:33:53] Lisa Weser: And mark, I think it’s also the level of the unexpected. There are people that you expect to have a cannabis brand and people that you don’t expect. [00:34:00] So again, like you expect Snoop to have one when Martha and Snoop are advertising together, that is unexpected.

[00:34:06] So in those it’s that type of novelty that, to me is always tr gold is what made the brownie successful too is that sense of novelty and unexpectedness? And we’re seeing a lot more of that in cannabis. It’s more people come out of the closet or even become, adopted as new users.

[00:34:22] Bryan Fields: Maybe that’s your Superbowl ad right there. Martha Stewart and Snoop dog, and one boom. That’s the one industry that’s pretty relatable. Come on. Did you have something that you wanted to chime in? 

[00:34:33] Kellan Finney: I was just say Martha’s image is so powerful for candidates and changing the stigma. You know what I mean?

[00:34:38] Just what she’s crafted over her career from targeting. That’s soccer, mom, demographic, if you will. I think that’s one of the most important demographics, culturally speaking, from an influence perspective for our changing the stigma. So 

[00:34:53] Lisa Weser: that’s also who has the purchasing power.

[00:34:56] Kellan Finney: They are 

[00:34:56] Lisa Weser: 100% deciding what’s coming into the house. They [00:35:00] also, when it comes to brand building and word of. Maybe so many of my friends in their thirties and forties come to me and asked me what to buy. Especially if they’re buying cannabis for the first time, they don’t know what to look for in a dispensary.

[00:35:13] They don’t know what CBD brands or formats to try who they should trust. So I think that, that particular demographic does a great job of educating each other and sharing products and. So I think that’s where we’re going to see the most growth in the industry. So that’s any celebrity or product brand that can speak to that demographic, that’s really where it’s at right now.

[00:35:34] Kellan Finney: And I also think that demographic stands to gain or benefit a lot from CBD. Anecdotally, it’s supposed to help with anxiety. I’ve never raised local children, but I imagine. Gotta be pretty stressful and causing side. 

[00:35:48] Lisa Weser: Trust me. 

[00:35:51] Bryan Fields: You’ve also never been a mom. I’ve never been a mom. I said, don’t 

[00:35:57] Lisa Weser: be.[00:36:00] 

[00:36:00] That’s the thing is this is also a population that, has been told to drink wine, and to use all it and copy and to use all of these, or, to take, sleeping pills or, all of these different products that they have been marketed that aren’t really working out for them.

[00:36:14] I, myself, in that I didn’t start using cannabis until. In my forties. I had used it obviously in my youth is everybody experiments, but then I hadn’t really had access to it. And I was in the alcohol industry. Had a lot of alcohol around me and in my life, but, didn’t even really consider using cannabis.

[00:36:31] And so when I started to get into the industry and educate myself, I actually use cannabis almost every day now in, in different ways. And especially when it comes to micro-dosing. And that’s I think what’s so interesting about this category. It’s not very often that you see a completely new segment come out of nowhere.

[00:36:46] And a segment that, people can adopt for the first time we look in beer, if we did not capture people when they were 21, it was all about like capturing people, right when they enter the category. So to have something like this, where you can actually capture people [00:37:00] that aren’t can be heavy users later in life and their thirties, forties, fifties, and beyond is really.

[00:37:06] Yeah. 

[00:37:07] Bryan Fields: People walk in dispensary’s and they don’t know what they’re going to buy. Or for me back in the day, I’d walk into a gas station and it would be bud light, right? Like I would walk in and that’s solely what I’m looking to purchase, where people now are still open for kind of manipulation is probably the wrong term to use, but guidance towards a specific brand.

[00:37:21] And it takes, key assets like yourself to help communicate the messages towards those targeted demographics to connect with those people. Yeah. 

[00:37:28] Lisa Weser: And that’s why PR I think is so important because bud light can buy ads and surround you with bud light, right? Like they, can put it on TV.

[00:37:36] They can put it on billboards, they can send it to your phone. So like you’re never going to not be getting those messages. Cannabis can not do any of that. And in some states it’s incredibly restrictive. So cannabis has, and they can’t even target a Facebook ad that you write or Instagram.

[00:37:51] You have to get really creative in cannabis. And that is why I think there’s been such a huge opportunity for PR in the normal CPG marketing world, [00:38:00] PR is always a little bit of the redheaded stepchild with the slightly smaller budget, right? Like the big budget goes to the social media team, the digital team that’s making all of those buys for the people that are, financing all of the Superbowl ads in cannabis and can’t do any of that.

[00:38:14] So it really. Rely on the news media and and on influencers and on, some of those more subtle earned tactics where you have a lot less control and you need people that know what they’re doing. 

[00:38:26] Bryan Fields: Do you think that it’s more of a forgotten one because brands can’t correlate success when they work with PR agencies or you think it’s just a misunderstanding of what actually is going on behind the scenes?

[00:38:35] Lisa Weser: I think it’s all of it. I don’t think people completely understand what PR is. I think they can definitely, I think they all want it, but they don’t necessarily understand it. They absolutely underestimate it. And they often underfunded. Even though the brownie tactic cost $3,000.

[00:38:53] My team costs more than that, right? There’s manpower behind that. You do have to, I think really invest in having [00:39:00] a strong PR partner and PR to me, the biggest thing that I learned at Budweiser is that PR is always on a lot of people will contact us and say, I’m launching a brand.

[00:39:11] I like, they basically want to hire us for 30 days. They’re like, I want to get some slides on my investor deck, I want that Ford logo and. And we don’t do that. Like we really only work on a retainer basis with clients year round. You should be telling your story all the time. You constantly have to find new ways to talk about your brand, bring your brand to culture.

[00:39:32] And that’s where that cultural calendar I keep referencing comes, comes up because, there’s more than just four 20, there’s times all around the year, when you can be talking about your brand in different ways or the people at your company telling your founder’s story.

[00:39:45] And I call that always on. So that’s how we like to work with people. And people that will really invest in that and understand that PR is a critical part of their entire marketing and brand building machine. And it does not sleep. 

[00:39:58] Bryan Fields: Lisa, since you’ve been in the [00:40:00] cannabinoid industry, what has been the biggest misconception?

[00:40:02] Lisa Weser: About cannabis in about cannabinoids. I think I think that people don’t think that all they do is get you high. So that is what’s interesting about cannabis is that in the alcohol industry, alcohol is recreational, right? That’s why people use it, in cannabis, there is, there are medical people and there’s recreational people and there’s a lot of people that are both right.

[00:40:23] That are hybrid. So I think, people think about using cannabis to get high. I’ve mentioned. I use cannabis almost every day. I’m almost never high. I’m a huge fan of a two and a half milligram mints. I use both CBD and THC for a variety of things. Chronic pain, sleep, anxiety, or just recreational purposes instead of having a glass of Warrington unwind.

[00:40:45] So there’s a lot of different ways that you can use cannaboid at different levels to control all types of different. Physical and mental symptoms and states. And I don’t think people fully comprehend that. I did not know that we all had an endocannabinoid system [00:41:00] in our bodies and that, that is you can target with all of these different products to have different effects.

[00:41:06] And I think what really sold me when I first got into the industry, I have, some conditions that I have chronic pain and I was taking, to add. Twice a day. And just by taking, CBD countries under the tongue every day and two weeks I was off Advil, which was mind blowing to me.

[00:41:22] And that was just for some pretty minor symptoms. So that really showed me like, look like you don’t have to be a cancer patient to need. To need cannabis. There’s all kinds of different ways that you can use it to enhance the life, your creativity control pain levels, anxiety levels, get off all kinds of meds, which look, I’m not a doctor.

[00:41:41] You can’t make claims. You have to figure out what works for yourself. But, there’s not a lot of cannabis can’t do in my opinion. And I don’t think people fully comprehend that. 

[00:41:51] Bryan Fields: Well said before we do predictions, we ask all of our guests, if you could sum up your experience in a main takeaway or lesson learned to pass onto the next generation, [00:42:00] what would.

[00:42:00] Lisa Weser: I think the first thing would be just like to not be afraid to take the leap into something new for myself and my entire career, I’ve always tried to be on the leading edge and get into things. I didn’t totally understand. I started in tech, I ended up launching the first ever smartphone when nobody ever knew what a smartphone was and it turned out to be the iPhone.

[00:42:21] When social media first launched and people didn’t understand that. And I was trying to explain to clients what is a tweet? What is Twitter, or Pinterest, people didn’t totally understand it, trying to get in there and figure out what, What these new industries are, what these new technologies are and figure out how they’re going to apply to your brand is really important.

[00:42:39] And cannabis was the same way is knowing that it was going to become this big, huge industry that was going to affect. All of these different, functions in society ultimately, but I didn’t exactly know how, but just, taking that leap of faith and getting into it, I never really had regrets about doing that.

[00:42:55] So I think that’s been one of the biggest lessons for me is just to go for it, when you’ve got something that you’re really [00:43:00] passionate about. And I think the other thing would just be like that you’re never too old to try something new or learn something new. Like I said, okay. I see people get into cannabis, whether it’s a career or whether it’s just using it for the first time in their thirties, forties, fifties, seeing my parents, who are boomers and getting interested in it again, after, a 40 year break, from the sixties right.

[00:43:23] Or whatever. So yeah, I think it’s really about, you’re never too old. 

[00:43:27] Bryan Fields: I love it. Hi, Lisa prediction. This’ll be a two-parter I’m going to have to add the second part. Cause I need to know this answer. When will we see another brand? Try and replicate the similar stunt that Mary med put on second part.

[00:43:43] What year will we first see a cannabis in the soup bowl? Cannabis-based commercial in the super. 

[00:43:51] Lisa Weser: Okay. So I’ve already had people come to me and try to replicate the brownie. I 

[00:43:55] Bryan Fields: was assuming 

[00:43:56] Lisa Weser: that other clients that have wanted to do something similar. So I think it will [00:44:00] probably happen within 90 days in some capacity.

[00:44:03] But I think it’s less about trying to replicate the brownie itself than the idea of the brownie and buy it really captured attention in terms of the Superbowl and when we’re going to see cannabis in the Superbowl. Honestly I think that’s probably still a good four or five years away, not just because of where cannabis is, but just, I happen to know a lot about the behind the doors.

[00:44:25] Deals and how locked up they are. And like I said, I don’t think that’s going to happen until that the Pepsis and the AB InBev that hold those multi-year contracts are ready to bring those products to the market. But what I think you will see is you will and hopefully. Here. Next month, you’ll see, this is that guerrilla marketing that we always saw.

[00:44:46] We always had the Superbowl really locked up at ABMBev where other people couldn’t really advertise. But what we see is competitors buying local ads, or like doing digital stunts, different things to distract and to get their own share of voice, even though they couldn’t buy an ad.[00:45:00] 

[00:45:00] And sometimes that’s a lot better value, super bowl ad you know, the going rate is three, 4 million, right? There’s definitely ways to do that more cost effectively. So I think we will see that. I hope we see it this year. I’ve certainly been trying to encourage some clients to with my ideas of how to do that.

[00:45:14] But yeah, I don’t think we’ll see the actual ad for a good three to five 

[00:45:18] Bryan Fields: Marketing world within another. Yeah. So counting your predictions. I think 

[00:45:23] Kellan Finney: that we’ll see another stunt for sure. I don’t know if it’s going to be with food though. I think maybe someone might get creative with a beverage or kind of a different form factor.

[00:45:32] You know what I mean? As far as the super bowl, My guess, is that like a legitimate Superbowl commercial is not going to air until probably the 2030s. But I do think that you’re going to see some sort of stunt, right? Like even in, in Colorado, there’s I think native roots or something.

[00:45:49] Tried to buy the name of the stadium. So like I could like it’s in the Superbowls in at Sophie stadium this year in California. I wouldn’t be shocked if there was like some sort of stunt [00:46:00] where someone put up a big banner or some sort of like random marketing from that perspective occurred.

[00:46:06] Someone runs on the field with a cannabis branded poster or something. I could see something like that happening, but I don’t think like legitimate commercial in the super bowl for college. 

[00:46:15] Lisa Weser: Brian, what? Say what? I got the idea. I just haven’t been able to get a client

[00:46:23] eventually I can’t give it away right now. 

[00:46:27] Bryan Fields: Like I, I’ve tried to unpack like the viral marketing effort and I’ve shared ideas on that. And I just don’t think people realize how hard that is. And I can’t even imagine the conversations you’re having Lisa, where people come and he’s can’t you just replicate this idea again?

[00:46:40] Yeah. If it was only that easy, then sure. You would have done this a million times by now. But like even me who studied marketing my whole life, I’ve tried to unpack. Okay. I understand why the brownie went viral, but what other product categories could do that? And it’s really hard to come up with that.

[00:46:53] So I can’t even imagine how I’m sure. We’ll see that a bunch of times we’ve seen the Cheeba chews, try it with their truck that [00:47:00] obviously didn’t work out. I didn’t even see it. It’s disappointing from their standpoint, when probably already happened and we might’ve missed it.

[00:47:07] It wouldn’t surprise me if someone tried to piggyback off that, like you were saying, have a life of its own and try to double down on that. So I would say probably ASAP, if not already. And then in regards to Superman, Obviously it’s hard since you’re way more plugged in than we are and knowing the timeframes and how that works.

[00:47:22] But I would’ve liked to guess three years is what I was hoping for. And my thought behind that is once New York comes online, I think a lot of people will start to accept it more from let’s say, United States standpoint. And then I think the expectation is okay. The stigma’s slowly started to get reduced and because of.

[00:47:37] People are wanting to expect that. And then I wonder if one of these larger MSOC maybe partners with someone and then challenges in, or if we see a big purchase by beverage company with a cannabis company, and that’s the messaging that goes on because it’s a pretty good platform to announce this is our new partnership, 

[00:47:53] Lisa Weser: What’s unfortunate.

[00:47:53] Cause I, I speak with a lot of the TV networks and they all have these advisory boards, these standard boards [00:48:00] and the bottom line is right now, they will not permit. Cannabis advertising and tell it’s federally illegal. It’s like banks, right? And that’s, perfect example. We worked with Martha Stewart CBD on launching that she has a regular segment on CBS this morning and today’s show and they would not allow us to do a segment on her product.

[00:48:20] Even though they were just DVD, because of that reason. And and it wasn’t even THC. So that is the, I think there’s a lot of these old school policies that are just written in, and there’s like the switch that like until it’s federally illegal and that’s affecting everything and it’s affecting advertising.

[00:48:35] So I really think that’s going to have to be the lever, unfortunately, before we can actually get. TV advertising, not just in the Superbowl, but anywhere, but that said just the nature of the way that those types of advertising deals get locked up. It is probably, as you said, can have to come, from one of, one of 

[00:48:52] Bryan Fields: the big dogs, maybe someone just comes a little more rebellious, a brand that maybe crosses a line a little more decides, what.

[00:48:59] We’re [00:49:00] just going to do a surprise tactic and see, and we’ll deal with the repercussions because platform like that to try to swing for the fences might be the best one to do. So Lisa, for our listeners, they want to get in touch. They want to learn more and they want to ask you to help them go viral.

[00:49:12] Where do they get? 

[00:49:13] Lisa Weser: Our website, a company’s trailblazer website is trailblazer.co C O and they can email me [email protected]. And we would love to talk to them when they are ready to invest and ready to go big and ready to be always on. That’s the right time to bring us on.

[00:49:31] Bryan Fields: Awesome. Thanks so much for your time, Lisa. You bet. [00:49:33] Lisa Weser: Thanks for having me on.

Share and Enjoy !

laptop-img
Get In touch With Us

Action-Oriented problem solvers ready to go

One Report Once a Month Everything you Need to know

From executive-level strategy to technical know-how, our actionable insights keep you ahead of the pack!

Editors’ Note: This is the transcript version of the podcast. Please note that due to time and audio constraints, transcription may not be perfect. We encourage you to listen to the podcast, embedded below if you need any clarification. We hope you enjoy!

Today we are talking about plant-based medicine for the furry members of your family! Hosts Bryan and Kellan sit down with VETCBD founder, Dr. Tim Shu to dive into the world of CBD for pets. Stream this episode to learn more about Veterinarian CBD Animal vs human cannabis response Higher quality of life for animals Endocannabinoid System Dr. Tim Shu is the founder and chief executive officer of VETCBD. As chief executive officer, Dr. Shu manages direction and strategy at VETCBD and oversees research and development, marketing, sales, and support. Listen to The Dime podcast to learn about the exploding cannabis industry from the ones building it. Join us as we uncover the real How and Why across every topic


[00:00:00] Bryan Fields: This is the dime, dive into the cannabis and hemp industry through trends, insights, predictions, and tangent.

[00:00:11] What’s up guys. Welcome back to the episode of the dime I’m Brian Fields. And with me as always is my right-hand man Kellen Finney. And this week we’ve got a very special guest, Dr. Tim Shu, CEO, and founder of vet CBD factor.

[00:00:22] Shoot, thanks for taking the time. How you doing today?

[00:00:25] Dr, Tim Shu: Hey, thanks for having me. Appreciate it. I’m doing very well. Thank you, Kellan. How you doing?

[00:00:29] Kellan Finney: I’m doing really well. It’s nice to have another west coaster on the podcast, and I’m really excited to talk about cannabinoids and. Yeah.

[00:00:36] Bryan Fields: And you see how I quickly tried to get past that, but yes, he’s on the west coast, so we’ll put another one in the west coast.

[00:00:42] So Dr. Shu for our listeners that are unfamiliar with you, can you give a little bit about a brief background about you and how you got into the

[00:00:48] Dr, Tim Shu: cannabis? Yeah, sure. So I’m a veterinarian practice in general emergency critical care medicine. And you know, for me, the, the way that I’ve approached cannabis and cannabinoid therapeutics [00:01:00] is that if there is value in cannabis, then we really owe it to our patients, our clients, to be able to.

[00:01:05] Really find out what that value is, right. Even if there is no value, then we’ve got to be able to say, okay, you know, we’ve done our due diligence. We’ve looked at it. And we’ve either found that there is value or there isn’t value, but it turns out there is massive value in cannabinoid therapeutics and understanding the endocannabinoid system.

[00:01:22] Now, one of the big problems is that we’re, we’re not educating. Not only the clients that benefit the most from it, but we’re not educating our healthcare professionals about it. And so we’re really doing a huge disservice to the medical community and its clients and patients. And so for me, that’s how I got into the cannabis industry in 2015.

[00:01:41] So take

[00:01:42] Bryan Fields: us through vet CBD, the origin of that, how that came about and kind of what led you to wanting to dive

[00:01:48] Dr, Tim Shu: into this path. Yeah. So, you know, I hadn’t heard about how cannabis. Could be beneficial for humans. And for me, it was always the question of, okay, if cannabis can be [00:02:00] beneficial for humans, are we able to make it beneficial for animals as well?

[00:02:03] Right. Because most people, when they think about cannabis, they think about the intoxicating aspects of it. Right. They think about the THC. They think about people getting high and things like that. But what they, at least back then, you know, what people didn’t realize was that cannabis is not just THC.

[00:02:18] Cannabis is CBD as well. You know, it’s also CBC CBG, et cetera, et cetera. But there are ways that we can utilize it to be able to make it so that it’s not intoxicating for animals. So it doesn’t get them high, but there is still able to get the medical benefits. I think that’s

[00:02:35] Bryan Fields: really well said. And I want to kind of dive into more of those specifics.

[00:02:38] So some of the products you have you listed on your website, you talked about the ratios and the tend to ones. Now, my question to you before we kind of dive into some of the specifics are, are pet CBD products similar in their formulations as the human CBD products,

[00:02:51] Dr, Tim Shu: there are different in the, in the formulation.

[00:02:53] You know, first is the ingredient Stripe. There are ingredients out there that are [00:03:00] perfectly fine for people to ingest, but can actually be toxic to them. And so the one that everyone knows is chocolate, right? You, you never give your dogs chocolate. But other things like raisins, for example, raisins or grapes, people don’t realize that you’re not supposed to give your dogs raisins or grapes, right.

[00:03:16] Because it could cause kidney damage, but then there’s also another one called xylitol, which is a sweetener that’s actually found in. Tons of different human products, pretty much most of the chewing gums out there that you’ll find have, Zatanna but even things like toothpaste can have xylitol in it inside.

[00:03:32] It’s all can actually be very toxic for dogs and you never want them to get into anything that contains xylitol. So, you know, first and foremost is the ingredients and make sure, making sure that the ingredients are safe for the animals, but also dosing matters. Right. You know, the 160 pound person is going to.

[00:03:48] Probably take a different dose than a 10 pound dog. So that’s the other big thing that can be very different when it comes to humans and animals. And then also, you know, the, the formulation in terms of how [00:04:00] you’re utilizing THC, for example, can also be different. What’s important to understand is that THC can actually be effectively utilized in animals, but they can’t be more sensitive to it.

[00:04:11] And so it needs to be dosed and formulated properly. Is

[00:04:14] Bryan Fields: the dosing based on the weight of the animal in most regards or is there other factors outside of the way to incorporate in like breed

[00:04:21] Dr, Tim Shu: dosing based on weight is one thing. Now, whether there are breed differences. I don’t think anyone really knows that quite yet.

[00:04:31] There are certainly could be, you know, we know that in terms of veterinary medicine, there are specific breeds that may have a different metabolic issues that are attached to that specific. Now, what we do see is that there are a lot of individual variations in terms of metabolism and the endocannabinoid system.

[00:04:51] And we call this pharmacol kinetics. And so what that means is you can have two dogs that are the same, same way. Let’s say that 50 pounds and you give them the [00:05:00] exact same amount of CBD. Let’s say you give them 10 milligrams of CBD and one absorbs it a lot more than the other one. And another one may metabolize it a lot more quickly than another one does.

[00:05:10] This is just individual pharmacokinetics. And that’s, what’s really fascinating is that we do see variations in that. And so, you know, the whole thing about how to properly administrate for animals is based off of specific individuals, just like it is for humans, right? So the general mantra of go low, start slow by starting at a lower amount and then gradually increasing it to the optimal effect, applies to animals as.

[00:05:36] And dive in

[00:05:36] Bryan Fields: there. What’s your thoughts on that? My thoughts are

[00:05:39] Kellan Finney: in relation to why I would be wanting to administer a cannabinoid to my right. I mean, I have a dog and like the weight factor I’ve, I’ve explored CBD products in the past as well for one of my, my parents actually having the older and older dog that was struggling with like joint pain, which I thought might kind of increase its enjoyment [00:06:00] of life.

[00:06:01] And the, the weight thing was one item that the brand I was looking at it, they kind of divided it into like, okay, here’s a dosage for dogs that are zero 30 pounds, 30 to 60, 60, and up kind of the situation. Right. And my mind just kept going back to why, what, where are those dosages? Tied to, from a pharmacokinetic standpoint, I mean, is this something Dr.

[00:06:25] Shoe that we’re basing off of like previous studies, can you kind of elaborate on where some of those the dosage came came from? Not only because it’s the mass of the animal, right? How much it weighs, but the amount of CBD that you’re administrating do, do we know where those kind of dosage came from is some studies or, or is it just kind of a.

[00:06:45] Lower lower concentrations and work from there. She kind of walk us through how that

[00:06:50] came

[00:06:50] Bryan Fields: to be.

[00:06:51] Dr, Tim Shu: It’s actually a really interesting question. So for us, it’s it’s what we experimented with and, and found to be a good starting [00:07:00] point. So we have starting point recommendations and then how to increase it from there.

[00:07:05] Now what’s interesting is that some of the published studies out there, some of the clinical trials out there actually use much, much higher amounts than what we use. Now. There was another interesting study that came out of Colorado state university that was looking at. Using CBD in arthritic dogs, they did find that it was beneficial for these dogs.

[00:07:25] But the interesting thing that they found was that the dose at which was, which it was effective, was all over the. So I think you had as, as little as something like 0.3 milligrams per kilogram, going up all the way to like 4.1 milligram per kilogram. So like over a 10 times difference. Right. And so that’s something that’s really interesting.

[00:07:44] And that just goes to show you that it matters. The, the individual matters. Another thing that’s really interesting, especially on the hemp side of things is that there is no. Regulation in regards to the testing, the content of cannabinoids in our product. [00:08:00] So, you know, there’s time and time. There’s been multiple studies out there that have looked and said that you know, based off of, you know, testing, you know, 30 or 50 over the counter hemp CBD products, a number of them don’t actually.

[00:08:13] Sit within that 90 to 110% of the label claim. So, you know, for example, if something says it has a hundred milligrams of CBD in it in order to be accurate, it has to fall within 90 to a hundred, 10%. So 90 to 110 milligrams of CBD. But time and time again, multiple studies have shown that a lot of products out there don’t actually contain that 90 to 110%.

[00:08:38] Right. And some of them actually don’t contain any CBD. So that’s the problem is, you know, people are using these products sometimes and finding out that, you know, they’re not seeing any benefits, but the issue could be that they’re actually not getting what they’re painful. So what

[00:08:55] Bryan Fields: would you suggest to someone that comes to you and says, Hey, I bought this product.

[00:08:59] It didn’t [00:09:00] work for my dog. Would you recommend trying different products? We dramatic recommend staying with the same product three times. The point you brought up is, is a really important one. One that we’ve heard time and time again, is that people have this issue with their dog. They’re looking for something to help their dog, and then they have this different experience and it could be off putting for them where they, they take a different approach to go with a different style product.

[00:09:21] And it could be the wrong choice just based on what you said. So what would you suggest.

[00:09:25] Dr, Tim Shu: Well first, what I would say is Luke your veterinarian, right? Yeah. I understand that years ago, I’ve always told people this right. Talk to your veterinarian first and foremost, make sure they’re in that involved in that conversation.

[00:09:37] And you know, for a long time you know, people come back to me and say, I’ve tried talking to my veterinarian. They refuse to talk to me about it or they don’t know how to answer my questions. They don’t, they’re not educated about it, but slowly over time, we’ve seen that change and that’s, that’s awesome.

[00:09:54] Right. That’s progress. And we are starting to see more and more veterinarians feel comfortable being involved in that [00:10:00] conversation. So first and foremost, talk to your veterinarian about it, right? Because you want to make sure that whatever you’re, you’re trying to address can be adequately addressed by cannabinoid therapeutics.

[00:10:10] And we are seeing more veterinarians be educated about it. We do do a lot of presentations for veterinarians about. You know, the, the things that cannabis can be utilized for and how to look for quality and how to guide your clients through this process, to make sure that they’re getting quality products.

[00:10:27] But the other thing is that any, any product that they purchase should have a COA tied to that specific product and that COA should be available on the website. Or if you reach out to the company, they should be able to provide that for you. And a COA is a certificate of analysis. You know, if you really want to get down to it and you can also verify.

[00:10:45] With the lab, that random COA, that the COA is accurate. But you know, the other thing is. Sometimes we see products are made with CBD isolate, and thus far, the evidence shows that the entourage [00:11:00] effect that theory of synergism between multiple components of the cannabis plant does appear to hold true.

[00:11:06] We do have more evidence in favor of the entourage effect than against it. And so if a product is being made with CBD isolate that patient or that client may actually do better with something that’s false.

[00:11:19] Bryan Fields: Just like thinking through that, but I mean, that’s, that’s a great find and I think that’s so important, but then I wonder Dr.

[00:11:25] Shu that puts so much emphasis back on the individual to be educated about the experience, to kind of go through these steps and challenges, which is hard, right? In those moments where your, your animal is suffering and you’re looking for an area and, and reaching in these different approaches. So again, to continue on that, Would you suggest that if your pet has anxiety or is older as arthritis, can they lean on similar products?

[00:11:48] Should they have to look for two different products? What do you suggest there? Can you clarify that question a little bit? Sure. So for example, let’s say you have an older dog who has arthritis. And anxiety can the [00:12:00] same product be used to serve both purposes, or would you suggest looking for an individual product allocated for the arthritis one and a different one for the anxiety?

[00:12:09] One?

[00:12:10] Dr, Tim Shu: It depends on the individual definitely depends on the individual because the, the way that we, we see cannabis is that it’s an additional tool in the toolbox. Right. And it’s not something that. It can be used for anything and everything. Right. Having been in the dispensary space for, for a while, I’ve kind of seen some of the early marketing and you know, I’ve kind of also seen this mentality of plants over pills.

[00:12:38] But, you know, really it’s not, it’s not plants over pills. It’s not pills over plants. It’s, it’s both right. You have to be able to utilize the right tool for the right situation. And in some cases traditional pharmaceuticals are going to work better. In other cases, cannabinoid therapeutics may work.

[00:12:56] And in other cases, a combination of the two [00:13:00] may work best. Right? So it just depends on the individual and their situation.

[00:13:04] Bryan Fields: I have a question. So,

[00:13:05] Kellan Finney: I mean, in terms of the different tools in reference to, to candidates

[00:13:10] Bryan Fields: right now is kind of CBD and THC are the main tools being implement. My experience with THC in dogs is that when a dog eats cannabis, they kind of

[00:13:21] Kellan Finney: have like a little freak out session.

[00:13:22] Right? Like I just remember my one of my really good buddies, his dog in college ate a bunch of cannabis and like, they found it like under a table shaking, like it was urinating uncontrollably and like those kinds of things. So. My question is some of the products out there, therefore dogs include THC.

[00:13:40] What kind of benefit is THC bringing to a dog? And what’s that threshold where they actually have kind of like a serious reaction to it.

[00:13:49] Dr, Tim Shu: Yeah. And a lot of the products out there are full spectrum and any full spectrum product does have a certain amount of THC in it. What’s important to [00:14:00] understand is that.

[00:14:01] THC, the effects of THC are boast dependent. Right. Which is pretty much the case with everything else. And what we see a lot of times with cannabinoids is that they have by phasic properties. Right? So what that means is that you at lower ends, you get a different effect than you may at higher ends for.

[00:14:20] And one of the things that’s really interesting about THC is that at lower doses it’s anxiety, meaning that it can actually help with anxiety at higher doses. It can be anxiety Genet, meaning that it can generate or create anxiety. This has to do with how it works on the different receptors in the different parts of the brain.

[00:14:39] But it’s the same thing with people, right? If, if a person took two and a half milligrams of THC, They may be okay. They may maybe be calm and relaxed right now. If they took 250 milligrams of THC, that’s going to be a different story. So it’s a very similar situation that applies here. Right? It’s really the dose [00:15:00] that makes a difference in what people don’t realize is that this can be applied to so many other things in life, right.

[00:15:05] Taking a daily vitamin that’s great, right. Taking a bottle of daily. Every day, that’s probably a very, very bad idea. Right? And so it’s the same thing with, for example like salt, right? You need salt. It’s an important part of your, your diet in nutrient requirements. But you, if you take in too much salt, that’s unhealthy for you, right?

[00:15:24] That’s not good for you. Same thing with oxygen, you need oxygen to live and survive. But you can’t breathe a hundred percent pure oxygen. Eventually you get oxygen toxicity from that. So, you know, it applies to just about everything in life is finding the right amount. So

[00:15:39] Bryan Fields: we found out through experience that sometimes when you take too much THC, you can have CBD to kind of have that kill switch and that off putting experience and kind of bring you back down.

[00:15:48] Does that work similarly in animals where hypothetically, if a dog. Consume too much THC, which I do have experience with, and it was awful. You can give the dog CBD in order to kind of [00:16:00] help mellow out. Is that.

[00:16:02] Dr, Tim Shu: It’s an interesting question. And I think that that’s, it’s definitely one that’s up for debate.

[00:16:06] There’s evidence that kind of points in either direction. You know, some say that you know, the CBD has to be taken either before or with the THC, but whether or not THC can lessen some of the intoxicating side effects. Of THC. I think that remains to be seen. I, I don’t have any good evidence to say one way or the other right now.

[00:16:29] So continuing

[00:16:30] Bryan Fields: on just amassing for personal experience, hypothetically, if the dog got into, let’s say the leftover bowl, would that be enough THC to possibly cause it one of those higher effects, if it’s a smaller weight dog or does it, it needs to be consumed in a different way outside of let’s say grounded.

[00:16:46] Dr, Tim Shu: So, well, the, the ground of flower that depends, you know, grounded in general flour, you get more of the, the acids. So for example, like THCA, THC is not intoxicating. Now, [00:17:00] if it’s decarboxylated from THCA into THC, that’s a different story. But it just depends, you know? So the, the thing is that when people are making edibles, they tend to put a fairly large amount of THC.

[00:17:12] And so, you know, if, if there’s ever a cause for concern, easiest thing or the safest thing, and the best thing to do would to take your dog to your veterinarian. Right. Because the other thing to consider is what other ingredients could they have? So a lot of times you may have you know, when people are making edibles or mixing anything with like chocolate and butter and things like that, that may cause GI upset or chocolate toxicity in those dogs.

[00:17:38] So, you know, if, if there’s ever a cause for concern from ingestion like that, the best thing is to bring your dog to your veterinarian. Are there

[00:17:46] Bryan Fields: any recent research that you’ve discovered or read about that you’re excited for the pet space, any minor cannabinoids that you’re really excited about to kind of integrate into

[00:17:55] Dr, Tim Shu: the future?

[00:17:56] Yeah. I mean, I think this is something that’s that has a lot of potential, [00:18:00] you know, right now the market is really pushing CBG CBN. And CBC, but the reality what’s interesting is that the research on those molecules is it’s still very early stages. You know, we have preclinical research that’s out there.

[00:18:18] So, you know, looking at. CBG CBC and its effect on maybe mice in rats and, you know, cells that are sitting in test tubes or Petri dishes. But we don’t really have any good clinical trials that are looking at those cannabinoids. And I think that there’s potential there in those cannabinoids. Exactly what we’re not quite sure of.

[00:18:39] We do have some internal research that we’ve done. And so there are some some formulations that we’ve come up that. Actually do seem to be more beneficial in certain cases than just utilizing full spectrum CBD. So we’re pretty excited about that. I

[00:18:53] Kellan Finney: have a question is all a million endocannabinoid systems, almost identical.

[00:18:58] From like [00:19:00] a receptor and metabolic perspective, I guess, for an easier way to phrase it is the CB one receptor and CDT receptor in dogs, the same CB one and CB two receptor that would be in humans from like a structure standpoint as well as then. My followup question would be, is it same for like dogs and cats?

[00:19:18] How much research has been done on understanding the endocannabinoid system in

[00:19:23] Dr, Tim Shu: species outside of humans? Yeah, that’s a great question. And in terms of the endocannabinoid system, speaking of it from an evolutionary perspective, it’s an ancient system, right? It’s been around for millions and millions of years, and that’s why we have it in all vertebrae animals.

[00:19:41] So. Whether it’s you know, mammals, birds, fish, reptiles, they all have an endocannabinoid system. And in fact, some invertebrate animals have endocannabinoid systems as well. So we know from an evolutionary standpoint that this system has been around for a very, very long time. The other thing that we know is that even though it’s similar in terms of its [00:20:00] function in animals, right, it’s its main overarching goal is homeostasis.

[00:20:05] Plays that role in a number of things, mood, appetite, sleep, metabolism, inflammation, reproduction, but we do know that there are species differentiators differences, right? It’s not going to be the same across species. One of the most remarkable things that everybody you know, seems to have heard about is that dogs have a higher concentration of CB one receptors and a portion of the brain called the cerebellum compared to other species that have.

[00:20:32] Now the going back to your CB one, CB two receptor question. We do know that the CB one, CB two receptors across species are similar, but they’re not exactly the same. There are some slight differences between the CB one, CB two receptor in a, in a dog and a human in a mouse and a rat. You said

[00:20:49] Bryan Fields: that dogs have a bigger CB one receptors.

[00:20:52] More higher costs, higher

[00:20:53] Dr, Tim Shu: concentration, higher concentration in their share of bone of CB one receptors. So why,

[00:20:59] Bryan Fields: [00:21:00] what would that mean support sensitive? Would they

[00:21:02] Kellan Finney: be more sensitive to, to the molecules that bind with

[00:21:05] Bryan Fields: their CB one

[00:21:06] Dr, Tim Shu: receptor? Yeah, exactly. So they can be more sensitive to molecules that bind with the CB one receptor.

[00:21:12] And so THC is a partial agonist, so the CB one receptors. And so that means that they are more sensitive to teach. That’s cool.

[00:21:21] Bryan Fields: So let’s, let’s go through the product formulation. Do you start historically, have you started with an idea from a conception saying we’d want to go with a ratio or are you starting more with research and working through, take us through the process from idea to end

[00:21:33] Dr, Tim Shu: product?

[00:21:34] Yeah, it’s really interesting because in terms of the research there, there’s a lot of pre-clinical research out there that’s been done. Right. So. You know, you’ll, you’ll find studies that say you know, this or that cannabinoid was able to do this in mice or rats or it had this effect on cells in a Petri dish.

[00:21:52] And so that pre-clinical research is, is helpful because it provides a hypothesis. But then you, you have to come up with the [00:22:00] formulation to be able to test that hypothesis on a patient group that hasn’t had clinical trials. Run on it before. And so it’s a mix of taking the research that has been done and experimenting and trying different formulations in a real-world environment and seeing what works best.

[00:22:16] So that’s, that’s the simplest way for me to put it. It’s the timeframe for something like. Depends. I mean, you can have some things you know, and I know that certainly in some cases, we’re like, yeah, you know, what we’ll do is over the course of six months and it ends up being 12 months and it’s ongoing.

[00:22:32] I think other stuff. Yeah. I mean, there’s other projects that we’ve had that it’s, it’s run longer than what we hope for. Yeah. You’d be surprised, you know, when it comes to pharmaceuticals you know, in, in the pharmaceutical industry, going from the beginning to the end phase until the, the the patient’s actually able to benefit from pharmaceutical that could take decades,

[00:22:51] Kellan Finney: The pharmaceutical development, dog’s the same as pharmaceutical development timelines in humans.

[00:22:56] Is it, how does that having those processes. Cause like there is [00:23:00] there’s narcotics that are approved, like painkillers, right? Those are approved in humans and the same molecules approved in animals as well. Is there some, do they overlap like

[00:23:08] Dr, Tim Shu: that? Yeah. So, you know, there, there is some overlap in terms of you know, animal and human pharmaceuticals, you know, there, there are some.

[00:23:17] Pharmaceuticals that humans use that are used in, in, in the veterinary world as well. And some that are not just because they’re, there are some that are safe for people, but that are toxic for animals. So there are also veterinary drugs that are specifically developed for animals.

[00:23:33] Bryan Fields: Okay. I was going to say, all trials start with mice.

[00:23:36] Is they have equal starting ground or is that not.

[00:23:39] Dr, Tim Shu: A lot of them do, you know, a lot of times the humans, they try to use models that reflect human systems. So you know, it’s not always in mice, you know, sometimes they may use pigs for example. So on

[00:23:50] Bryan Fields: your website, I read about your corporate social responsibility policy for every bottle purchase.

[00:23:54] From our site, we donate a bottle to rescue organizations so we can help the helpers. Why is that so [00:24:00] important for your organization to continue the message.

[00:24:04] Dr, Tim Shu: Well, for me, my perspective has always been that business should be utilized as a vehicle for philanthropy. Right? So as a business, we always have to be looking at how can we give back?

[00:24:15] How can we. Improve the world. How can we leave it a better place than we found it? And there’s a lot of organizations out there that are trying to improve the world and they may not have the funds or resources to be able to do everything that they can. And so one of our goals is to be able to assist them however we can, to be able to help them achieve their goals.

[00:24:40] And so one of the ways that we do so is by doing that one for one program, but, you know, we also have other things like we have a scholarship that goes towards veterinary students and veterinary nursing students because, you know, students are heavily burdened by debts and loans these days.

[00:24:56] And so we want to help ease that burden for them. That’s awesome. [00:25:00] We’re

[00:25:00] Kellan Finney: also doing research. How do you balance like conducting meaningful research while trying to. Use that research to kind of

[00:25:10] Dr, Tim Shu: support the business. Yeah. So, you know, we, we take a look at what has the most evidence and what has the most potential to be able to, to benefit these animals out there.

[00:25:20] And it’s also. Based off of what’s available on the market. Right. You know, it wasn’t always the case that these different cannabinoids were available. And there, there are actually some specific components of the cannabis plant that I’m very interested in, but right now, no, one’s really extracting them.

[00:25:39] So it also depends on what’s available in the market. So right now, you know, a lot of extractors are. You know, they’ve got a lot of CBG, a lot of CBN, a lot of CBC, and it wasn’t always that way, but in the future, we’ll, we’ll start to see other cannabinoids be more available for research. You know, some, some people are doing CBT, some people are doing [00:26:00] the acids, like a CBDA CBGA and those are all.

[00:26:04] So we decided which

[00:26:06] Bryan Fields: areas you, you said before, there were certain areas that you were most excited about. Is there a certain cannabinoid in particular or a certain group of cannabinoids that you’re most excited?

[00:26:15] Dr, Tim Shu: Well, I mean, you know, everybody’s heard of CBD and everybody loves CBD and rightly so in terms of other cannabinoids that I’m super excited about.

[00:26:24] I mean, I would actually have to kind of, kind of flip that question. I’m more excited about. Our understanding of the endocannabinoid system, right? Because the, the endocannabinoid system is something that has been overlooked for decades. And unfortunately continues to, to get second billing, or you know, third billing, fourth billing.

[00:26:44] And I say that because this is something that is present in all vertebrae animals. It is deeply intertwined with all other physiological systems. It’s responsible for homeostasis in so many different aspects of our lives [00:27:00] yet it’s currently not being taught in most professional medical schools, veterinary schools or nursing schools.

[00:27:06] You know, I asked recent graduates that are doctors that are nurses. I asked them, you know, what did you guys learn about the endocannabinoid system in school? More oftentimes than not, the answer is nothing. And, and these are some of the doctors that are going to some of the best medical schools in the country.

[00:27:24] And so you think about that and you think about how important the endocannabinoid system is. And you think about the fact that they’re not teaching it in some of the best schools in the world. And that makes you wonder about the potential. Of the system and how much we’ll learn about it in the next five to 10 years and the impact that will have on our health and wellbeing.

[00:27:46] Bryan Fields: Are they surprised when you ask them that how much they’ve learned? They say nothing or they are, they kind of like taken back by, there could be an entire system I’ve never learned about take us through that. The conversation,

[00:27:55] Dr, Tim Shu: it’s an interesting conversation because it’s not something that they’ve ever heard about.

[00:27:59] And [00:28:00] so for, for a lot of them, it’s just like, oh, I’ve never heard of. And the in, in some cases it’s, it’s almost surprising because there’s a lack of interest because, because if they never heard about it, they don’t, they don’t understand the impact or the importance of it. Right, right. But, but for, for people that have been studying the endocannabinoid system, that.

[00:28:22] Mentality is shocking. Because we know about how important the endocannabinoid system is, but to hear that it’s not being taught in some of the best schools in the country, which were some of the best schools in the world will look back on it five to 10 years from now and will, will think, wow. Can you believe that there was a time where schools weren’t teaching about the Indo-Canadian, but do you think it’s going to

[00:28:42] Kellan Finney: be the catalyst that actually forces these schools to adopt this kind of discipline or topic?

[00:28:50] Dr, Tim Shu: If you will. It’s a great question. And I think it’s. One, what we’ve seen over the years is the clients or the patients actually going to [00:29:00] their doctors and saying, Hey, I’ve been using CBD, I’ve been using cannabis. And this is the thing that has worked well for me. This is what we’ve seen in doctors.

[00:29:09] People come back to them and say, this is what’s worked for me. CBD has been working for me. Cannabis has been working for me and then they have to ask, okay, well, why is that the case? You know, what, what is it about cannabinoid therapeutics? That’s actually working. I as a medical professional, have an obligation to look into this, to understand.

[00:29:24] What this is, and if it’s beneficial for my patients, then I have a moral and ethical obligation to understand why. And if I can assist them in improving their health and wellness through cannabinoid therapeutics, through the understanding of the endocannabinoid system, then I need to do so. Right. So that’s one.

[00:29:42] The other avenue comes from, let’s say a kind of a top down perspective. We know that pharmaceutical companies are developing drugs that specifically target the endocannabinoid system. And you know, right now we have Epidiolex, which is CBD that has been FDA approved. [00:30:00] Now, now doctors are forced to.

[00:30:02] Understand this, right. Well, this is an FDA approved drug, so, so why has this FDA approved drug been approved for certain forms of seizures and in the future? We’ll see more of that, right? Just an example is there’s pharmaceutical companies out there that are, are targeting specific enzymes that are involved with the endocannabinoid system.

[00:30:23] Right? So one of them is an endocannabinoid re-uptake and. And so what this drug does is it prevents the endocannabinoids from being taken into cells and broken down. So what that does is increases your endocannabinoid tone. So you’re circulating levels of a Nanda might in to AIG, and this can have different effects.

[00:30:42] And so when these drugs get FDA approved from the pharmaceutical companies, you know, we all know the pharmaceutical company does a very, very good job. Of educating doctors. Right? I mean, they, they did, they, they have their ear. That’s the reality of it. And so when, when pharmaceutical companies get these drugs, FDA [00:31:00] approved that specifically target the endocannabinoid system doctors will absolutely be hearing about it.

[00:31:05] Do you think

[00:31:06] Kellan Finney: legalization would also probably facilitate that from an educational standpoint? Or do you think it’s going to have to come from like the institutions that kind of run the information.

[00:31:17] Dr, Tim Shu: Yeah, it’s not a binary, it’s a combination of everything, right? So federal legalization will certainly help.

[00:31:24] But you know, now, now that hemp and its extracts are legal, you know, everybody is able to access CBD

[00:31:32] Bryan Fields: since you’ve been in the cannabinoid industry, what has been the biggest misconstrue?

[00:31:37] Dr, Tim Shu: I think, you know, honestly, one of the biggest misconception is the demonization of THC. Right. And that comes from, you know, almost a century of prohibition that, that THC is something that just gets you high in THC is something that’s that just ruins your life, which is absolutely not the case.

[00:31:53] THC does have medicinal benefits and you know, to, to deny that isn’t to say that it doesn’t have any sort of [00:32:00] medicinal benefit is intellectually dishonest. So that’s one thing that I would love to see changed. And you know, I, I hear it a lot from certain communities that tend to demonize THC.

[00:32:11] And that’s unfortunate because there are a lot of benefits that can come from THC and the, the, so we just need to change our attitude about that. That’s really all set.

[00:32:21] Bryan Fields: If you could sum up your experience in a main takeaway or lesson learned to pass onto the next generation.

[00:32:28] Dr, Tim Shu: That there’s always opportunities in our life to stand on the right side of history.

[00:32:33] And the way that we want to navigate our lives is to make the choices that our future selves will be proud of. So I encourage everyone to, to have that perspective because really the best that we can do in our lives is to leave this world a better place than we found it. You know, all of us are here because of the work and efforts of those that have come before us.

[00:32:59] [00:33:00] And we reap the benefits from that. The best that we can do is to be able to make this world a better place so that the generations that come after us can live better lives than what we’ve lived. It’s beautiful. All right.

[00:33:12] Bryan Fields: Dr Shu. What is the number one takeaway animal lovers should know about cannabinoid

[00:33:19] Dr, Tim Shu: therapeutics for their pets?

[00:33:21] It absolutely, it has potential benefits, but you know, don’t think of it as a, as a one size fits all. And don’t think of pharmaceuticals as As terrible things. Right. I, what I always encourage people is to, to get away from this trap of binary thinking, you know, people tend to want to silo things in their mind.

[00:33:41] You know, things are either black or white things are either zero one. And that’s because it’s, it’s easy for us. Right. It’s it’s an evolutionary advantage and add adaptation. Right. You know, when we were cavemen and things are either. Safe or not, but you know, we’re past that now. So for everything there is a time and a place, right?

[00:33:58] Like I mentioned [00:34:00] before sometimes pharmaceuticals are going to be much, much better. Sometimes cannabis can be a much better option. Sometimes a mix or combination of the two can be a better option. But do so under the guidance of a health professional, that’s trained in able to evaluate this from a scientific and medical perspective.

[00:34:18] Kaelyn

[00:34:18] Kellan Finney: change saves time. So I would say that if you’re going to treat or take any cannabinoid for on the additional benefit in your life, or to benefit your animals life, I would say that don’t expect it to be kind of like a magic pill and, you know, change takes time. So these kinds of medications take while for change to.

[00:34:39] Dr, Tim Shu: What do you

[00:34:39] Bryan Fields: think, Brian? Yeah, I think those are, those are all really good. And I think there’s different products for different people, different dogs. And I think not everything should be a one size fits all. I think both of you said really, really strong points. And I can think back to multiple conversations where people have leaned to us and say, Hey, I’ve tried this product for my dog.

[00:34:57] He didn’t have anything. It didn’t show any [00:35:00] effects. It doesn’t work well. It’s like, okay, where’d you get the product from? And then kind of certainly back in Dr. Shoe, like what you said, look into the product, make sure what you’re giving your pet is exactly what it says, consult your doctor on that. It should always be the same thought process.

[00:35:14] And I think sometimes people, they hear these conceptual ideas and they want things to work so bad, but they don’t go through the necessary steps to make sure. The product they’re selecting is the right one. I think sometimes they’re too trusting of just seeing a product and hearing about it versus kind of doing the steps, checking the COA,

[00:35:31] Dr, Tim Shu: doing some

[00:35:31] Bryan Fields: individual research, reaching out to their vet, looking on sites like yours and kind of taking those next steps to make sure that they’re, they’re selecting the right type of products.

[00:35:40] So, Dr. Shu, before we wrap, where can our listeners get in touch with you?

[00:35:43] Dr, Tim Shu: Learn more? Yeah, they can check out our [email protected] or that CBD hemp.

[00:35:50] Bryan Fields: Awesome. We’ll link those all up in the show notes. Thanks so much for your time. Thank you. [00:35:54] Dr, Tim Shu: Thanks for having me take care.[00:36:00]

Share and Enjoy !

laptop-img
Get In touch With Us

Action-Oriented problem solvers ready to go

One Report Once a Month Everything you Need to know

From executive-level strategy to technical know-how, our actionable insights keep you ahead of the pack!

Editors’ Note: This is the transcript version of the podcast. Please note that due to time and audio constraints, transcription may not be perfect. We encourage you to listen to the podcast, embedded below if you need any clarification. We hope you enjoy!

How can cannabis operators stay up to date on the every changing regulations from state to state? Today, we present a solution with Dede Perkins, CEO and co-founder of ProCanna.

ProCanna is a SaaS compliance, operations, and knowledge management solution for the cannabis industry. They are helping MSO’s elevate their business and stay ahead of the curve. 

Stream this episode to hear

Overcoming fear in the cannabis space

Future cannabis regulations

Best compliance practices

High standards for cannabis

Figuring out the cannabis business as it grows

ProCanna is a team of cannabis industry professionals who understand the challenges of running an efficient, compliant, and most importantly, profitable cannabis business. ProCanna allows owners and operators to confidently implement, maintain, track, and share proof of compliant operations in a cost-effective way.

Learn more at https://procanna-usa.com/

Follow The Dime Podcast on Twitter: https://twitter.com/thedime_8th?lang=en

#compliance #cannabis #cannabiscommunity #420 #weedlife #brandingdesign #cannabiscompliancemag #cannabis #weed #marijuana #420lifestyle #rebrandingcannabis #cannabisinnovations #cannabistechnology #womenincannabis #cannabiscompliance #cannabissoftware #cannabiz #seedtosaletracking


[00:00:00] Bryan Fields: This is the dime, dive into the cannabis and hemp industry through trends, insights, predictions, and tangent. What’s up guys. Welcome back to that episode of dime I’m Brian Fields. And with me as always is my right-hand man. Tell him Finney. And this week we’ve got a very special guest Deedee Perkins CEO, and co-founder of pro Canada.

[00:00:22] Thanks for taking the time Dede, how you doing today?

[00:00:24] Dede perkins: I’m great. Thanks for having me on your show. I’m happy.

[00:00:27] Bryan Fields: Looking forward to that. Kellan. How are you doing?

[00:00:30] Kellan Finney: I’m doing well. It’s sunny out here on the west coast and I’m going to just try to hold down the west coast fives while we got another east coast guest on.

[00:00:37] Bryan Fields: I look at you kind of dive in. I was going to ask Dedefor the records to stay in their location, but thank you. That is another one for us. And I think we’re keeping a move and I’m excited to kind of tie them up at the end of the year and see kind of what that split is. So Didi, before we kind of dive into some of the questions, can you give our listeners a little bit of.

[00:00:55] Background about you and how you got into.

[00:00:57] Dede perkins: Sure, you know, full disclaimer. I never [00:01:00] expected to be in the cannabis straight in space. So that’s, it’s interesting. It’s been quite a journey, but I was a writer or am a writer and in 2013, one of my clients said, you know, that she had someone who needed help with an application.

[00:01:10] And could she give him my name? I said, sure. It turned out to be a consultant who was working on one of the first competitive. The Massachusetts medical. I knew nothing about medical marijuana at the time. It was a little taken aback, really just didn’t you know? And so it had to do a little bit of research before I decided to accept the position I did.

[00:01:28] And man, I’ve never looked back. I mean, that process was compelling that a lot of people at the national level, we ended up winning that license and just started getting work from. Big companies, small companies, consultants, you know, I mean, there was so much work to be done, whether you were, you know, doing marketing, you know, patient testimonials, whether you were writing regulatory content for applications or employee, you know, policies, SLPs.

[00:01:53] Anyways, it was it was a really fast paced educational and business processes within 18 months. My whole [00:02:00] practice was in cannabis. That was surprising, but it was awesome. And then in 2015, I went in house with my largest client, which was harvest based in Tempe, Arizona. And when I joined the company they just opened their second facility.

[00:02:13] I was employee 50 by the time I left five years later and my primary job at harvest was to write the applications for. For them to expand. So the competitive applications although had a lot of different back then you did whatever needed to be done. It was like growing company, but when I left five years later, they had gone public thousand employees, nine states.

[00:02:30] So I just had this really front seat view into the cannabis industry. And it’s early days and saw a lot of amazing, hardworking, really smart people. But one thing that was consistent with. All organizations was, it was very, very difficult. A lot of stress. There was a lot of operational stress policies and procedures would change.

[00:02:48] Companies were like, you know, they would write SOP, that’d be extracting a certain way of processing in a certain way, but then they’d figure out a better way to do it. And so that everything was moving, you know, the staff turnover was incredible and [00:03:00] people lost sight of the regs. And, you know, there was just a lot of operational stress.

[00:03:03] You know, one client I had woman was taking the place of one of their growers who was on vacation for a week. And I don’t remember exactly who it was just over-watering, it was wrong nutrients, but she drastically lowered the flour output of, you know, a whole line of plants. And it was just a mistake if she had had a checklist, you know?

[00:03:20] So anyways, I just kept imagining. Let’s put everybody in one hub, you know, easy access to the rag. Let’s put the SOP, you know, training, auditing, collecting business intelligence reporting. So basically that, that was pro piano quite a few years ago, we’ve been taking slow, steady steps and launched this year.

[00:03:37] Bryan Fields: So I’m excited to kind of pick some of those pieces apart, but I want to stay with the first experience you had with the application process for our listeners that are unfamiliar, what that’s like, can you kind of give them like behind the scenes look. Like, how does that work? What does it look like from a paper standpoint, like from a size then what can you kind of take us through that?

[00:03:55] Dede perkins: Sure. So it’s a different, I mean, that’s one of the tricky things, but if it’s a competitive application [00:04:00] process, I mean, it’s grueling. Yeah. You know, you have to have boots on the ground. You have to have finances, you have to have people securing real estate. You have to have, you know, specialists coming up with security plans and safety plans.

[00:04:09] Many states require a full book of SOP standard operating procedures just to put in your application. Not all, but and then you have to have people make sure your application. Yeah. I mean, one application we put in literally was 900 page dissolve, pointing document. They’re often in the hundreds and you know, they just have to be, you have to address every regulatory requirement and you have to tell a story about why your company is worthy of getting the license, basically how you’re going to maintain compliance, what your culture is going to look like.

[00:04:39] And it’s just, it’s a big undertaking and it takes a team. And in most states it takes a fair amount of capital just to get to the licensure. Kevin

[00:04:47] Bryan Fields: kind of expand on there. I know we’ve kind of dabbled a little bit there and like hearing her say that just kind of brings back some of the memories that we had throughout the process.

[00:04:54] And I continue to want people like Didi and experts in the space to share that experience [00:05:00] because so many people are interested in kind of diving in, but sometimes don’t recognize the sheer amount that goes into kind of getting started. So killing time, expand.

[00:05:08] Kellan Finney: Yeah. I think one of the most overlooked aspects of the application process, especially in the early days was the simple fact that I guess it was kind of like the blind leading the blind, the regulators didn’t really know what they were even putting out there from a license standpoint.

[00:05:24] They were like, okay, like you can grow weed. Like, what does that even mean? And so add the competitive aspect to the application process. It’s almost like you can’t leave any stone unturned. Right. And that’s why, I mean, I’ve gone through some of the Florida applications and they’re the same kind of beast, if you will, in the 900, a thousand pages.

[00:05:44] And I mean, some of the ancillary information that’s included in those. Completely overkill in my opinion, at least. Right. Like they literally are utilizing like they’re including the resumes and the CBS for all of these individuals that they might potentially hire. You know what I mean? And [00:06:00] it’s insane to me that that was like a piece of information that clearly was valuable because every application included the resumes that people they might hire.

[00:06:08] Right. And I mean, you don’t see that in any other industry period, right? Like if you’re going to go. Start a gas station, right. In any state, they’re

[00:06:17] Bryan Fields: not the, state’s not going to ask you for

[00:06:19] Kellan Finney: the resumes of potential future employees that you might hire. You know what I mean? And so what was that process?

[00:06:26] Going through and trying to figure out, okay. Do we just, unturn every single rock that we can think of. Did you just kind of decide that you guys were just going to overkill it kind of walk us through that, that thought process duty in terms of deciding where to draw

[00:06:39] Dede perkins: that? Yeah, certainly. I mean, I worked for a number of different companies and each, you know, consultant or whoever was leading the team had a different approach, I will say in general, If they were serious and it was a very competitive state, most of the teams pulled out the stops and, and they did it in different ways.

[00:06:55] Some of the consultants absolutely looked at dusk practice. They looked at pharma, they looked [00:07:00] at other industries to, you know, set standards, whether it’s storage standards is standards, security, standards, you know, extraction or growing. You know, whether they’re going to use gap standards, GMP standards, and you know, a lot of companies over promised in those applications.

[00:07:13] I think in the beginning they had the best of intentions, but then the reality of actually implementing some of the things that you had promised. Incredibly difficult and expensive. And it was just, the industry was learning. You know I think other companies would look at strategy and they would say, okay, we’re going to, they literally would, would many of the companies did this, you know, you would literally break down the, the possible how you could get a hundred, how you get the A-plus, you know, you’d get extra points.

[00:07:37] If you had a community. Plan or extra points. And I think it was Ohio that, you know, if you promise to reclaim a brownfield, you got extra points, you know, and do some environmental cleanup. You know, if you went into disadvantage communities and, you know, you said you were gonna, you know, you were committed to hiring X amount.

[00:07:54] You know, those were all ways to get extra points and some companies were willing to do it. And some weren’t. And so [00:08:00] it’s a very strategic process, no matter which way you fall in, you know, We’re going to do it. Absolutely the best we’re going to hire the best people to your comment about resumes. I think that was very much about we are serious here and, you know, the people that we there’s a lot of fear, I find that there’s greed and fear largely in the cannabis industry, both of those.

[00:08:19] Tend to get a little overblown, but to, you know, to, to speak to the fear piece, if you have amazing PhDs or chemists or, you know, growers who came out of other industries or, you know, people in retail that had deep backgrounds, it was reassuring to state regulators. And often these state regulators on a, they were new at this too.

[00:08:37] It was, we were all figuring out together. So you never knew what was going to make you win. And you know, and the states said, Hey, you can add anything. You wanted ancillary material. Those are the states. They ended up with the 900 pages cause know. Wow, who knows what anybody else is going to put in. We better put them into it.

[00:08:53] Just got out of hand. Then I think then some states reacted and said, okay, we can’t, it’s just too [00:09:00] hard to even review it in a meaningful way. So then they started putting interesting different states, handled it differently.

[00:09:05] Bryan Fields: I think the, like the crazy part, there is the fact that you brought up, like everyone was figuring out together, which is such a challenging process, right.

[00:09:12] Because it’s not like there’s like a script to follow. Previously, this is how it went down. So we’re just going to follow this suit. Everyone’s left to kind of figure it out on their own, which just makes the whole experience a little more daunting, but a little, a little more like pave the road that you believe is best practices.

[00:09:26] So let’s kind of dive into some of those best practices in your experience from a compliance standpoint. Is there one myth that sometimes the bunk more than the

[00:09:34] Dede perkins: others? Sure. I answered that. I understand the question, but I. Certainly everybody was trying to win and they, and because like I said, in the beginning, like for one of your facilities, you know, you’d be doing it this way and it would be a good solid product.

[00:09:47] Right. But then you would hire a grower or a manufacturer that came out of another industry that, or maybe just, you know, and all of a sudden they brought in more sophisticated techniques. Okay. So now you’re, you’re changing the way you’re going to apply the next time. Right. Everything is just getting more [00:10:00] sophisticated, more sophisticated.

[00:10:01] I think there are two preconceptions about company. And they’re both true. One is that there are operators who will never care about it. They are interested in the plant. They’re interested in cannabis. They just want to do their thing. They want to be left alone. They don’t see it being a differentiator.

[00:10:15] And honestly, they just hope you know that, or they just believe it’s not, they’re not going to get caught. And if they do get caught, they can survive. And then there are the people that some of them are new to cannabis. Some of them came out of other regulated industries that they want to differentiate their brand on doing everything right.

[00:10:29] You know, they want their security protocols, their production. You know, really to be the best of the best, you know, world-class standards and very different mindsets. Both types of people honestly have very successful businesses. Obviously I fall more in the compliance let’s let’s put some structure and let’s, you know put some expectations and mitigate risks.

[00:10:46] So it’s, some people honestly care about it. And some people don’t, I want to

[00:10:50] Kellan Finney: kind of stay on that topic. So, I mean the most common buzzwords thrown around in the industry right. Outright is CGMP and it’s calming. Right? You want to get some GMP ready? [00:11:00] Even a gap with his good agricultural practice. Correct.

[00:11:04] How impactful do you think those certifications will be in like the next three, three years? Or do you think it’s more of something that is probably not going to be implemented for 10 years? Or do you think that truly requires federal legalization to be implemented? Because I know. Companies in Canada have to play by normal manufacturing roles when compared to companies in, in the U S at least.

[00:11:32] So, I mean, what are your thoughts on like a timeline for those? The

[00:11:36] Bryan Fields: impact that having a CGMP

[00:11:38] Kellan Finney: certification will actually be required.

[00:11:42] Dede perkins: I don’t know, honestly, I think it’s going to be tied to the federal you know, whatever happens with the feds. I mean, I think now there are a lot of companies interested in GMP privacy.

[00:11:49] They want, they want to do it right. But they also want to differentiate the brand, right? Maybe their, their market is that, you know, 50 year old female. Right. You know, there there’s segments of the industry that are growing faster [00:12:00] than others. And, and it might be nice to be able to, you know, as part of your brand marketing, you know, to just basically say, this is the safest, our standards.

[00:12:07] Right. So there’s a, there’s a, you know, a profit driven reason to have GMP standards. But you know, if you’re a little craft grower and you might be doing everything right, but the GMP standards are expensive and you know, it’s, I am all about doing it. Right. But sometimes it’s just not feasible and I really don’t want the standards to be so high that we put all the, you know, the craft growers out of business, honestly.

[00:12:31] So I we’ll see where that.

[00:12:32] Bryan Fields: Do you think there’s a semblance of trust with consumers now, but just believe that there is this high standard that everyone adheres to just given the fact that they can purchase these products and understanding that other industries follow this and just, just maybe a false sense of security when they purchase some of these.

[00:12:49] Dede perkins: Yeah, I do. I do, I think, you know, some states don’t require testing and main cause they, you know, were based in the new adult use regulations, they require testing, but medical doesn’t. So, I mean, and [00:13:00] I’m not going to take a stance on this, but you know, you really have to trust your grower. You know, if you’re a lot of people that are buying medical or not, you know, Immunocompromised, but a lot are.

[00:13:10] And you know, you honestly don’t know what’s in there. They’re heavy metals that their pesticides or there’s mold or mildew, like you have a lung disorder and you’re it’s so, I mean yeah, I think it depends on who they’re buying from and how much they trust them. But I do think people look at those.

[00:13:23] Yeah. They think it’s, it’s sort of sanctioned if it’s in a, in a licensed dispensary and we all know testing standards

[00:13:29] Bryan Fields: are.

[00:13:31] Kellan Finney: Humans in our society puts in labels. I did not realize how much faith is in there until I got into the games industry and was part of the manufacturing aspect. And then literally was talking to consumers and they’re like, oh no, it’s got a label on it.

[00:13:43] It’s completely fine. And it was just so enlightening to see how much faith humans bought it. Just a label on a product it’s insane.

[00:13:56] Dede perkins: Yeah, but they don’t have any way to note either. Right. [00:14:00] You’re not in the industry. Right. They don’t a hundred percent understand. And so they’re thinking, okay, I don’t care really about that label.

[00:14:06] I really just want what’s the, you know, I think it’s not the latest,

[00:14:09] Bryan Fields: I think it’s the fact that they can buy it. Like you were saying DD in like a medical store that people just assume that test it. Right. And you can ask people here in New York. Oh, what does tested mean? And they’re like safe and it’s like, whoa, you’re just associating things together.

[00:14:22] Good luck there, but that’s fine. But how do we then as an industry kind of marry the standards between consumer education and then safety and accuracy of the industry, but also like you were saying, don’t put the craft group growers out of space based on the cost. Like how do we balance those two things?

[00:14:39] Dede perkins: I wish I had the answers, you know, I think it’s, you know, it’s going to be trial and error where, you know, some states are going to overkill. Some states are going to under kill, you know, the feds are going to, you know, I don’t, I don’t know that there’s an easy solution, honestly, but I, you know, I do know the states that are going to be friendlier are going to have more.

[00:14:56] You know, smaller companies in the space and companies that are [00:15:00] really, really high standards, you know, they’re gonna have the big box cannabis companies. And so you know, the regulations and the standards definitely have effect on who’s playing. So

[00:15:09] Kellan Finney: Yeah, and I mean, it’s so fragmented right now, too.

[00:15:11] I mean, every, like you just mentioned

[00:15:13] Bryan Fields: in Massachusetts, the difference between

[00:15:15] Kellan Finney: the adult and the medical market, that difference is common throughout a lot of states I’ve seen. And I mean, just look at even adult use markets, right? Like Colorado has different regulations than California to bring a product to the market and how a.

[00:15:29] Retail shelf. And so from an MSO perspective, managing all of these different regulations, I don’t know if you’d call testing requirements regulations probably. Yeah. Right. That, that would be something that pro Canada really is a really strong

[00:15:43] Dede perkins: act. Absolutely. I mean, our whole platform is, you know, giving easy access to the rags and the standards and then, and being able to compare.

[00:15:51] So you might have one process that you pretty much do in all your facilities, but you have to tweak depending on what it is. You’re going to have to tweak it. If you’re doing it in California, you’re gonna have to do it slightly [00:16:00] different standards of the way you’re doing it in Arizona or your way you’re doing it in Pennsylvania or Maryland.

[00:16:04] So, you know, there’s a lot of commonality with operations, but then those really important differences you need to away to be able to. Reasonably manage all those SLPs and policies and regulations under, you know, and have easy access to the two. What makes them different, but also being able to count on the base of your operations, are this going to be the same state to state?

[00:16:24] So it’s tricky and, and, you know, I mean state, sometimes it’s not even an, a legislative change. I mean, Massachusetts. And so other states too, are famous for putting out guidance. So the CCC will say, okay, here, you know what the advertising and marketing reg is, but here’s how we’re going to. You know, this is how we’re gonna address billboards, right?

[00:16:40] And so, or this is how we’re going to address X. And so you, you have to keep up with all the sort of, you know, memos that got that, get then how they’re interpreting the regulations. And, you know, you multiply that by multiple facilities in multiple states and different teams, cultivation, manufacturing, retail, and they all have different.

[00:16:58] It’s just, it’s complex [00:17:00]

[00:17:00] Kellan Finney: with exposure and like, say I’m an operator and I have operations in multiple states and I had exposure to all this information. Do you guys help, like, translate all that information and kind of strategically figure out what the best place to kind of sit on that spectrum, if you will, where.

[00:17:15] Massachusetts has this specific policy on billboards versus Florida versus California, you kind of helped the company come up with like custom strategies for each state they’re operating in. Are you, or are you guys kind of just more taking a hands-off approach with those kinds of conversations and just let them interpret the information that you guys.

[00:17:33] Dede perkins: So we will certainly, you know, if someone said to us, can you give us a memo? Like we’re we’re software as a service, big on service. So we will definitely say to somebody, okay, you know, you’re a new you know, compliance person in Florida and you will put that report back together for you. So we’ll say this is, these are the.

[00:17:48] Diving rigs in the different states. What we won’t do is we won’t give any legal advice, how we’re interpreting them. We can give you all the support documentation, and we can refer you to consultants that we know do a good job. But you know, we are [00:18:00] basically a curator of information. We see ourselves sitting between our company, our customers, and the regulatory agencies.

[00:18:06] And so it’s our job to deliver the information. You know, in a timely, clear, understandable fashion. That’s what our highest youth is. I think, to make sure you always have what you need to have to make a decision and we will support you, but we draw the line at legal advice or, you know, helping you strategize.

[00:18:22] But again, we’ll, we’ll help you find somebody. If, if you’re looking for referrals, we have a bunch of people that. They can hand out names and, you know, help you start the vetting process. I

[00:18:31] Bryan Fields: want to go back to something you said a little, a little bit prior about like all the states and all the different challenges.

[00:18:36] So how hypothetically eventually we’ll get to federal legalization. Well, they’ll Institute one set of common standards throughout the United States. Hopefully at that time, everyone’s going to have to then I guess essentially shuffle back into their carbs, change, everything they’re essentially doing, adjust all their SOP, all of their policies and kind of almost restart with a new set of rules and regulations.

[00:18:56] Is that kind of how it goes?

[00:18:58] Dede perkins: Again, we don’t really know, but I, I [00:19:00] sort of think, and I think a lot of people agree that it’s going to be more like alcohol. So there’s state rights. The states have their basic regulatory systems. And then the, the federal regulations will sit on top of that, you know? So they will deal with maybe interstate commerce or, you know, how you’re transporting cannabis or safety, you know, the FDA will, you know, so we think that it will just add one more layer, honestly, of top of what’s going on.

[00:19:21] But most cannabis operators, if they’re paying attention to. They’re always changing anyways. It’s not static. So, you know, it’s a moving target, you know, not month to month, but often, you know, quarter to quarter, you know, year to year things change

[00:19:36] Kellan Finney: your team must have significant exposure to all of the compliance changes and kind of sitting there with the front seat row to the, to the shelf.

[00:19:44] If you will. I guess contracted by like people from Washington to see how specific regulations kind of play out from a pattern perspective from all these different states that are coming online. Is that some, some type of the, I don’t know if you can even talk about that, but [00:20:00] just curious, right? Cause like, Hey, you guys have significant exposure to how these, how the rules are playing out and creating these functional industries.

[00:20:07] I would imagine someone would be like, Hey what’s what do you guys see? That’s working. Yep.

[00:20:12] Dede perkins: And we’re in brand new company, honestly. So I mean, we are, we have built the content where we are in six states. We’re building, we’re finishing up New Jersey adult use and Maryland in the next couple of weeks.

[00:20:22] And so we’re building out the content you know, on a state by state basis, you know, we’re start up basically, you know our, our tools are available in all the states with legal cannabis programs. Although we have not started to market that at all. So, you know, we’re certainly getting invitations. To take part in, you know, standards did the ASTs, you know, just different committees and it’s just beginning, honestly.

[00:20:42] And we launched in January. We didn’t even really go to the market until July. So we’ll see where that all goes, but there’s a lot of people who know a lot more than I do, honestly, you know, I mean, we get experts in the states and we build out, you know, each states and you know, most of the MSL is have lobbyists that are, you know, have been doing this for years, all the, you know, the, an international [00:21:00] organization.

[00:21:00] So, you know, I’m not sure we’ll ever be a big player in that, but Yeah, it’s an interesting space to be in. Certainly. Is

[00:21:05] Bryan Fields: there one state that has more stringent regulation policies, like than all the others? Or can you give us kind of a spectrum map of one state you think is really tighter with the regulations and then one on the other end, that’s a little more.

[00:21:19] Dede perkins: Well, I mean, you know, you get like, here’s, the other thing is you can have a lot of regulations, but if you don’t enforce them, you know, it’s so that’s it. And that changes state to state. Right? You can have all the regulations in the world, but if nobody’s looking, half of the operators are probably not compliant with everything.

[00:21:33] Right. I mean, right. That’s just the fact. So, and that tends to go in phases. It depends on who’s running the agencies, how much money COVID a lot of the enforcement stops. So we’re in a sort of. Period right now. I mean, we’re seeing a lot of fines coming out in Nevada. I mean, so, I mean, all of a sudden they’re stepping up their enforcements.

[00:21:50] I know the math CCC is looking to expand their staff. And you know, we’re seeing some, some attention there, you know, and then there’s some state that honestly, it’s a really low [00:22:00] bar. You know, if you got $2,000 and a pulse, you can operate a cannabis business, you know? So, and in California, that’s like its own country.

[00:22:07] You know, you get to the state and get county, you get municipalities. They’re all, they’re all a little different.

[00:22:13] Bryan Fields: You think that’s why some of the big episodes are interested in going there? Do you think it’s more of the maturation of that?

[00:22:19] Dede perkins: I think it’s a lot of things. I mean, you know, I think its regulations are heavy, you know, there’s still a, a vibrant legacy market.

[00:22:26] You know, I just think it’s complicated. It’s not the easiest market to go into. And if you’re a new company, you know, there’s probably lower hanging fruit that you can be successful. I think eventually a lot of companies want to be in California, honestly. But whether they start there, I mean, some, obviously a lot of companies started there some of the unit, right.

[00:22:41] But a lot of people are shying away from it a little bit now, but they’re working on it. Right. They’ve got them all in one agency now, the right

[00:22:50] Bryan Fields: the right direction. You know, what is the prize? Let’s just get all the people who are making decisions in one room and make one uniform decision. I mean, that’s pretty complex thinking the guys,

[00:22:59] Kellan Finney: I [00:23:00] mean, California’s a street fight if we’re going to be

[00:23:01] Bryan Fields: honest. Right? So let’s talk about protecting your company’s valuation with a strong compliance culture.

[00:23:07] Can you kind of shed some more information?

[00:23:09] Dede perkins: Absolutely. So, I mean, I think, you know, if you’re paying attention to compliance and you’re documenting your operations, it shows two things. One of our first customers literally one of the first people on the platform at a beta level, we put them on a Friday, Monday, he had, by Monday, he had created like this 30 question audit that they were, they were a big auditing company.

[00:23:28] And over the next couple of weeks, they went into, he started doing auditing facilities and one of the dispensary’s they identified an issue. I believe it was with a visitor log. Totally documented in pro Canada, the facility manager was notified. They were, you know, they had a remediation process in place.

[00:23:43] And again, the, at that point enforcement was not really all that active, so they didn’t really expect it to get, you know, they figured it would just stay in house. They’d fix it at literally like the next week they had a surprise audit and the regulator found the exact same issue, which is a kind of a big issue because it’s access and [00:24:00] protection and.

[00:24:01] You know, the facility manager said, oh, you know, we figured this out 10 days ago, and this is what we were doing. They didn’t even get a deficiency. They didn’t get a fine, they, they said, you know, like what we’re looking for is not that the company never makes mistakes, but they’re being proactive to find and fix their mistakes.

[00:24:15] So you know, I think that that’s one way that just having a compliance culture works in your favor. Certainly if you want to, you know, sell the supply chain is getting more and more sophisticated. Investors are getting more and more sophisticated. If you can document your operations, you know, you on your packing line, checking.

[00:24:30] And, you know, in April and may and July and everything’s copacetic, you know, your inventory is always stored a certain way and that’s all documented again. I think a lot of investors are now looking for compliant operations. They don’t want headaches. There’s a lot of people to choose from out there. And so they really want the companies when they go through the due diligence process to be.

[00:24:48] Prove their operations and prove they’re the finances and that everything’s in line. So as the industry gets more sophisticated and yeah, I just think that just like any company, a good solid company with records and [00:25:00] processes and risk mitigation is gonna get higher valuations than someone who may be producing a really great product.

[00:25:07] But there’s a lot of. So, you know, they’re just, they’re just running by the seat of their pants. And so you don’t really know what you don’t know in that operation. And you got to, if it’s apples to apples, okay. I can put my money in this company. I can put my money in this company, you know, I mean, different investors might make different decisions, but I would say that most are going to choose the more organized company.

[00:25:24] If the products are equal,

[00:25:24] Kellan Finney: Compliance aspects that you just listed off are requirements for obtaining like a CGMP accreditation or.

[00:25:32] Dede perkins: Yeah. You, you can’t get GMP with without without being organized without a real commitment to a system. Yeah, you can be compliant without GMP, but you gave me, you know, you, you can’t have GMP standards without a fairly sophisticated compliance system.

[00:25:45] Yeah.

[00:25:46] Kellan Finney: So you guys are kind of just helping people take that first step.

[00:25:49] Dede perkins: We are, you know, I mean, I have to say we, we really thought when we launched that we would be dealing with, you know, single state companies that had multiple facilities. Now, 5, 6, 10 facilities in one state, [00:26:00] you know, we thought the bigger MSOE, you know, would just be too big for us, but we’re having some very interesting conversations.

[00:26:06] All across the, the the industry. And interestingly enough when we first started talking, we were getting conversations from accountants and attorneys and cannabis consultants that were looking for a tool to use with their clients. So all of a sudden, there’s, there’s this whole trusted advisor piece of the market that really gets what we’re trying to do.

[00:26:25] And often the operators don’t really want to do this. So they hire, you know, their, their attorney or their consultant. And so we’re having a lot of traction with that trusted advisors who are then introducing the. And to the operators systems, but we also have we were working in Massachusetts. My co-founder was at a networking event, started talking to the gentleman who was in the social equity, the second cohort, Massachusetts.

[00:26:46] And they got talking and we showed them what pro Canada could do. And he’s like, it would be really helpful. Just access to the regulations with all of the, you know, the pre-licensure basically applicants. And so we. It had [00:27:00] met a couple people, had conversations and decided to basically give away our platform to anybody who was a social equity participant, right through licensure, right through becoming operational and then at a steep discount for a couple of years.

[00:27:11] So, so now we’re, we’re dealing with, you know, people that are in the pre-licensure phase, the applicants. And so they’re building their SOP, they’re writing their applications using Pre-Cana. So that’s been very, very cool, very exciting. Didn’t see that coming. I love that it, that it’s really working well.

[00:27:27] And we roll that out. I mean, if the state has a sort of a priority group, whether it’s economic empowerment, veterans, women, you know social equity, we will honor those same, that same program in the state.

[00:27:39] Kellan Finney: So that’s an incredible story.

[00:27:44] Dede perkins: Yeah, it’s it’s it’s, you know, you just gotta jump in wherever you are and you don’t really know what it’s going to look like.

[00:27:48] You just going to keep trying to do your best every day and see where you end up. So

[00:27:52] Bryan Fields: what’s one cannabis compliance fact. The average person would be shocked to learn, oh

[00:27:58] Dede perkins: boy, you got me[00:28:00]

[00:28:04] before I would’ve had a good answer. I kind of went blank. You know, Inventory control. I mean, some states require daily, weekly inventory control, which is a monstrous task, you know, and that how Bosely some states are trying to control that whole seed to sale process. The thought of, you know, tracking something from the time it is thieves.

[00:28:23] The time it is dispensed in a package is a little mind blowing. If you’re in the industry, that’s just the way it is. But if you actually think about it, it’s intense. It’s mind blowing. So yeah, I would say that the inventory.

[00:28:35] Bryan Fields: There’s like a million moving parts. I think Kellen, you described one time as like operating six different businesses, all wrapped in one.

[00:28:41] And unfortunately with six different businesses, you can’t just take Charlie from manufacturing and drop them off in cultivation and be like, Hey, like, this is kind of like your equal counterpart and maybe it’s a different division, but like good luck out there. We need you

[00:28:52] Dede perkins: to fill in. Yeah, no, no, just now the other thing that blows me away at some states, if you know your [00:29:00] license, if you’re a defense.

[00:29:01] Not only are you, you have to have a different license for every company, every store you work in. So, I mean, you might be licensed in Tempe, Arizona, but you can’t fill in, in Scottsdale unless you have a second, you know,

[00:29:18] and the financial, I mean, it’s, it’s just incredibly difficult for the operators because man, it just seems a little onerous to be honest with you. You know, it’s one thing to just. But be dispensary agent for a company in a state, but to actually tie them to a location just seems to, I mean, I’m sure there’s a reason that I don’t understand, but it seems to just on, beyond realistic, you know, put shackles on, you know, I mean, sometimes you just have to move people around, you know, and, and they’re happy to do so if, as long as they’re in that same vertical, I can see why you would want to dispensary agent don’t want to cult or the other way, right.

[00:29:50] Yeah. Especially

[00:29:51] Bryan Fields: as these companies are growing as fast as they’re growing, right. You have to sometimes look internally to be like, Hey, like you’re a superstar on one team. We need you to help out. And then you’re like, all right, we got to [00:30:00] take these six steps before we kind of move you. You just kind of layers the complexity on top of each other.

[00:30:04] It makes the challenges even harder, which is, I think sometimes daunting for us even inside the industry here. And I think sometimes outside industry people don’t recognize all these additional hurdles that are just layered on top of people in the cannabis. Yeah,

[00:30:18] Dede perkins: that’s a big one. I mean, the team to even manage the agent license renewals and some of these, they have to be renewed every year.

[00:30:24] You know what I mean? It’s just the moving parts. The spreadsheets are. Yeah. They’re daunting.

[00:30:29] Bryan Fields: I think you said it perfectly when you said the moving target, right? Like people are shooting for moving targets. You crushed it last quarter, but this quarter we’re going to do it slightly different and then slightly different, slightly different.

[00:30:40] So these people on their toes and people have to become a little more comfortable with being uncomfortable. But my God, that is a really sliding scale challenge. When people are looking for best cannabis compliance practices. Is there differences between MSOE, cultivators and retails? Like how, how would that work?

[00:30:55] If a, if a large scale MSO would want to come to you and say, Hey, we need help with this. We’re trying to get [00:31:00] started. We want to revisit this. We can be ready for. What would you recommend from best practices?

[00:31:05] Dede perkins: I think just jump in, you know, whether and every company is going to be in a different place, you know?

[00:31:09] I mean, if you think about mitigating your risk, you know, you know what you do well, you know, probably where you got issues, you know, just jump in and figure out, you know, maybe you just start with auditing, you just take it, you evaluate, okay. How would the different departments doing? And then really just jump in whether you just get your SLPs on and you want to try to standardize where they’re give everybody access.

[00:31:28] They’re all stored in the same place. Everybody can maybe it’s that. I mean, honestly, there are companies that have SOP. Printed lower shelf that nobody looks at, they have departments that they have them in one place. I mean, you know, even just standardizing, localizing, centralizing access, your SLPs is a big plus.

[00:31:44] So it really depends. You’d have to talk to them and say, what makes, where, where should we jump in for your company? But starting as again, just half the battle

[00:31:53] Bryan Fields: scent of cannabis operators, do you think have a compliance officer on this.[00:32:00]

[00:32:01] Not many, I would say a hundred percent,

[00:32:03] Kellan Finney: I would say no, every, every, no, it’s like, you can’t get by without

[00:32:08] Bryan Fields: it,

[00:32:11] Kellan Finney: like, they may not be, have that title on their name, but like it is. A full-time job, like for sure, running compliant, like I I’ve worked in for five different companies and every end from really, really large to really, really small, like you cannot move a plane from room a two room B without entering it into the computer and changing.

[00:32:33] Like a new, a barcode. And so like, it is absolutely impossible for any company to sell one molecule THC without the

[00:32:44] Bryan Fields: compliance person on staff period. Like you just full-time role though. They may

[00:32:49] Kellan Finney: not, they may, they may not have that title, but

[00:32:52] Bryan Fields: there is someone at every single company who has spent way too much time.

[00:32:57] In

[00:32:58] Kellan Finney: either metric or [00:33:00] the third party software like backbone or cracking or another software platform, because not only is it, so topic like metric is so complicated that you need to be a software developer and coder to play with metric. So then they made another software platform that you have to buy that then plays with metric.

[00:33:18] So then you have to be an expert at this other software platforms. So like every single company I’ve ever worked for, like the lowest end extraction tech ha. An understanding on how to input information into a compliance software platform, because they have to keep track of data. They have to do like compliance officers, like from state inspectors will come in and they’ll look at jars.

[00:33:40] Totes they’ll scan barcodes. Cause that’s what it is. Parker. They just scan it and it comes up in there on their iPad, right? So like hundred percent, they may not have the title of compliance officer, but every single employee at a hundred percent of the companies has had exposure to compliance software.

[00:33:55] And there’s someone there who has spent an ungodly amount of time in front of the [00:34:00] software platform, getting through training protocols, being certified by the third party software. It’s just, you can’t run the business without it. Like it’s impossible to do that. Or. Looking at the legacy market.

[00:34:12] Bryan Fields: There

[00:34:12] Dede perkins: are some, there are some states that, that I think that that is not true.

[00:34:15] I think, you know I also

[00:34:18] Bryan Fields: have exposure on the west coast.

[00:34:19] Dede perkins: So, you know, your point though, is they may not have that title most depart. I mean, I don’t know that most companies have one compliance for, so I was thinking like that centralized compliance person. There’s a lot of companies that don’t have that one single responsible party, but the department managers are running it, you know, they’re trained and they pass it along.

[00:34:36] But compliance, you know, I mean, I’ve said this many times, I feel like the first decade, it was just moving so fast. You know, it was, it was chaos was the name of the game, you know, just math lead, just growth and, and, you know, land, grab and license grab. Now we’re getting a little bit more settled and a little bit more mature, a little bit more professionalized.

[00:34:55] And so I think you’ll see more and more companies even give people that title, if that’s what you will [00:35:00] or, or give, you know, multiple people in a company that title, but they were moving in the right direction

[00:35:05] Bryan Fields: and do the GMP process. There better be someone to run that because that is no small.

[00:35:11] Dede perkins: Okay. Yeah.

[00:35:11] And as soon as you get there, you’re already organized, right. You have somebody running that. So to Galen’s point, you know, it is just part of the way you

[00:35:22] Bryan Fields: function, right? Yeah. Dede, since you’ve been in the cannabinoid industry, what has been the biggest misconceived.

[00:35:29] Dede perkins: The fear piece, always, you know, that there’s just a lot of people, smart people that just are really uncomfortable gateway drug, you know, that they they it’s, it’s a, it’s an emotional response, even if they think it isn’t.

[00:35:42] And when you actually strip it back, it is a plant. Right. You know, we need to understand the chemicals. It is, you know? So I still, that comes people not wanting to say that they’re in the industry, depending on which, you know, which part of the country you live in, or, you know, your. Circle. I mean, you know, there are people in my world that are still absolutely shocked that I would be [00:36:00] in the cannabis industry and you know, some, a lot of people think that’s very cool.

[00:36:03] A lot of people are like, yeah, I don’t know why she’s doing that. So, you know, and I think it’s that fear that just really lack of understanding what we’re talking about, but that’s changing. I think that’s

[00:36:12] Bryan Fields: changing before we do predictions. We ask all of our guests, if you could sum up your experience in a main takeaway or lesson learned to pass onto the next generation,

[00:36:22] Dede perkins: Work harder, be willing to work harder than you’ve ever worked before.

[00:36:25] I mean, it’s just, it takes a lot and you know, just do the best you can, you know, just, just give it all every day, show up and leave it on the field. And you know, it’s pretty general, but

[00:36:33] Bryan Fields: know the best piece of advice, right. They beat the test of time. So I think those are the best pieces

[00:36:39] Dede perkins: and it’s worth it, you know?

[00:36:40] I mean, it’s worth it. It’s. Yeah,

[00:36:43] Bryan Fields: especially at the speed things are changing. I mean, where else can you find it on the industry where, like you were saying, it’s literally a moving target continually. So if you’re looking to get some fast paced environment in an industry, that’s absolutely exploding.

[00:36:53] That’s hard. You chose the right one. So let’s do prediction time. D D what do you [00:37:00] think is the number one compliance issue that will change over the course of the next year? That operators should be aware of and planning for

[00:37:09] Dede perkins: the enforcement. I think that, I think you, you know, you’re really going to just have to be ready to prove that your operation is compliant.

[00:37:15] You know, I don’t know that there’s any one thing that’s going to change. I do think GMP standards are there. They’re coming, you know, so if you’re really a forward thinker, you might want to be moving down that path. So, but you know, I think that compliance is. 16 months ago, you know, year and a half ago, it was, you know, if you talked about compliance, people blazed over and now all of a sudden people are realizing that you know, it’s just a fact of life right now.

[00:37:36] I think. So just.

[00:37:40] Kellan Finney: That’s a tough question. It really is. Cause it’s like, like Didi said, like it’s not, there’s not one situation. I think that like really stands out because like, if it was that case, like everyone would be aware of it. In my opinion, like the, the painful part of compliance is that they’re getting.

[00:37:57] So many angles of

[00:37:58] Bryan Fields: compliance.[00:38:00]

[00:38:02] So I’m going to take the easy, easy way out. And I’m just going to piggyback on DVDs, answer.

[00:38:09] Dede perkins: I must say, testing, be prepared for more standardized testing labs. Did you know that may be moving quickly? You know that, but you know, I

[00:38:17] Kellan Finney: think I’m fortunate though. I think, and specifically in California, I think.

[00:38:20] The three agencies becoming one now, right? The DCC that’s what the new agent, or is it the BC? There’s so many acronyms,

[00:38:29] Bryan Fields: right?

[00:38:29] Kellan Finney: But like, however you decide, every state comes up with their own unique acronym, by the way,

[00:38:38] Bryan Fields: we are different,

[00:38:41] Kellan Finney: but you get back to my point. I think that with California consolidating their. Regulatory bodies. I think you will start to see significantly more enforcement starts to take place. And I think another supporting aspect of that is this last Q3 of 2021 [00:39:00] was California saw a 12% decrease in tax revenue from cannabis sales, which I think is a direct result of.

[00:39:09] Lack of enforcement and all these companies flooding the market and not having to play the same games that legal companies are. So they’re able to sell their product at a significant discount and still generate revenue versus other companies that are playing the proper games that are forced to not potentially close their doors because they can’t compete because they had to spend all this money doing it the right way.

[00:39:31] We’re all these other people did it and they undercut them from a price point and now they’re not able to generate revenue. So I think a combination of those two, two variables are really going to, you’re going to see significant enforcement in specifically the state of California, because they got it.

[00:39:46] They got to reign that in, in order to facilitate a legal market, they got to get control of it. All right, Brian, that’s your. You

[00:39:54] Bryan Fields: know, I, I know I write the question, which means that

[00:39:59] I [00:40:00] never do. And every time, like when I wrote this one, I was like, this one’s hard. I hope there’s something that comes to my mind, but I try to make it Nashville off the top. And now like hearing it it’s like the ice. This is, this is harder than I thought it would be. This is hard especially because the timeframe of the year goes so fast and cannabis, Hey, you know, one compliance issue I’m going to.

[00:40:19] Swinging for internal testing. Unfortunately I think something bad will have to happen again, similar to vacate where others look internal and say, Hey, we got to figure out what we can do better internally to make sure that the consumer is safe and that the industry continues to live on. And I think that involves instituting real-time sensors into process to make sure that the product adheres to the highest quality control standards so that everyone can feel comfortable when they select these products.

[00:40:46] Because the one thing we can all be. Unfortunately, the consumer’s not going to become more educated and say, Hey, I need to see these things. They’re still going to hear it’s that level of trust, no matter what, and just assume because I can buy it here. So we need to do a [00:41:00] better job internally of meeting their standards.

[00:41:02] Like all the other industries have, and it’s going to be a financial cost for a lot of these operators. So where are the other areas? But this one’s an important one from a safety standpoint. And I just hope that the area that is negative, that leads everyone to move forward in this. It’s not one that’s so daunting on the space like baby gate that sets us back for a monster.

[00:41:21] Well said, definitely great for our listeners that want to get in touch. They want to learn more about pro Canada. Where can they reach

[00:41:27] Dede perkins: you? Our website pro canada-usa.com. I’m always on LinkedIn, Bebe, Perkins. I definitely respond as much as I can. So yeah, happy to talk to anybody who’s interested in, you know, Chad about compliance in the United States or anywhere else actually for that matter.

[00:41:42] But

[00:41:42] Bryan Fields: from a global standpoint, we didn’t chat about that. Like a whole

[00:41:45] Dede perkins: another conversation.

[00:41:47] Bryan Fields: Thank you so much for your time. DV. Thank [00:41:49] Dede perkins: you. I’ve enjoyed talking with you both have a good

Share and Enjoy !

laptop-img
Get In touch With Us

Action-Oriented problem solvers ready to go

One Report Once a Month Everything you Need to know

From executive-level strategy to technical know-how, our actionable insights keep you ahead of the pack!

Editors’ Note: This is the transcript version of the podcast. Please note that due to time and audio constraints, transcription may not be perfect. We encourage you to listen to the podcast, embedded below if you need any clarification. We hope you enjoy!

Eric Levitt Founder of Pure Wisomds joins The Dime to discuss 

  • Mushrooms + Cannabinoids = the future?
  • Formulation conversations on bridging the gap between mushrooms and minor cannabinoids
  • Quantifying CBD for a dose
  • Expected time to experience when consuming Pure Wisdom Cannabinoids Products
  • Challenge with CBD Industry
  • Why cGMP matters

Learn More about Pure Wisdom 

Eric Levittis the  Founder of Pure+Wisdom Foods.The reason I started this company was to create everyday health and wellness supplements that you could actually feel and quickly knew were making a positive difference in your daily routine.  (And also to provide an alternative remedy to some of the harmful opioids and drugs on the market today.)

Creating a functionally different product starts with combining hemp-derived cannabinoids and adaptogen mushrooms.  The next key ingredient comes in the form of technology, specifically applying Time Release capabilities to the CBD.  The reason we do this is because CBD has a unusually short half-life in the body; from the time you take traditional CBD in the form of tinctures or soft gels, it’s typically reached it complete absorption in the blood plasma within 75 minutes and it’s done.  Using time-release technology, we’re able to increase the amount of time you’re still absorbing the CBD for up to six hours.


[00:00:00]Bryan Fields : This is the dime, dive into the cannabis and hemp industry through trends, insights, predictions, and tangents.

[00:00:10] What’s up guys. Welcome back to the episode of the dime I’m Brian Fields. And with me as always is my right-hand man Kellen Finney. And this week we’ve got a very special guests, Eric Levitt, founder of pure wisdom.

[00:00:21] Eric, thanks for taking the time. How are you doing today?

[00:00:24]Eric Levitt: Absolutely, I’m doing great. Thanks Brian. And thanks Kelly. We’ve decided

[00:00:28]Kellan Finney: to kind of dive in and tell him how you doing.

[00:00:30]Eric Levitt: Doing really well today. I think we just talked about earlier on the show, how we have or before the show started, how it’s a west coast version today.

[00:00:37] We got a lot of Colorado love, I think, lives in Colorado. So I’m in Colorado. We’re going to bring the heat west coast best coast. How are you,

[00:00:45]Kellan Finney: Brian? I don’t think we agree with the west coast west coast. That can be up at the time. So led before we dive into the topics I’d love for our listeners to get a little background about you and how you got into the cannabis.

[00:00:58]Bryan Fields : Sure. Thanks. So [00:01:00] actually got into the cannabis space around five or six years ago. So I had a friend that lived in Colorado that was going out to the west coast to open up some THC manufacturing facilities. And so I went along for the ride and that’s kinda how I got my foot in the door of this whole thing.

[00:01:17]Eric Levitt: So for the first couple of years, we did THC processing and manufacturing in California and Oregon and Washington. And then that kind of transitioned over in 2018. I had an opportunity to join a large manufacturing company here in Colorado called mile high labs. And so I transitioned over to the hemp and CBD space and got a lot of experience and connections and contacts in my business development role for mile high labs for a couple of years.

[00:01:44] And so that was the start of what’s now turned into, you know launching and running my own. Awesome. So

[00:01:50] before we kind of dive into that, was there ever any hesitation to kind of enter the cannabinoid industry, obviously being on Colorado, you guys have it a little earlier head starts, you have to see kind of the newer [00:02:00] space, but Kellen shared a couple of times about, you know, when he first got into the space, he wasn’t sure if there’d be some longevity of him being in this, in this industry.

[00:02:06] So from your standpoint, was there ever any hesitation to kind of dive in to the

[00:02:10] cannabinoid? Yeah, absolutely. Absolutely. So again you know, we’ve been cannabis kids for awhile, you know, long before this thing popped on the legal map. You know, just sort of going to college in Boulder and, and growing up in Colorado, it has been around and prevalent.

[00:02:26] And so I think sort of seeing that side of it for many, many years before this popped onto the legal roadmap. Yeah. There was always a little bit of apprehension. You know, you knew that Colorado was sort of trailblazing in a sense with where they were going with it. But I think that we were always a little bit hesitant to you.

[00:02:46] You didn’t want your name on a list. Let’s put it that way. And so for a handful of years, you wanted to make sure that this thing actually took off and, and you know, you, weren’t watching, you know, all your buddies getting hauled away for things. And so I think that, you know, after [00:03:00] three, four years of.

[00:03:01] I think taking off and being so successful, it was finally time to sort of come off the sideline and, and to get involved with this because I’ve had love for this for awhile.

[00:03:10]Kellan Finney: That’s really well said. Let’s talk about pure wisdom. Tell us about the company, the brand and, and kind of the name behind it. How did, how did that get started?

[00:03:18]Eric Levitt: Sure, so, well, you know, I mentioned that I had a executive role at mile high labs for a while. And what it did is it put me in a position to. With a lot of companies, both in the cannabis and hemp space, but also in the finished goods space and in the functional ingredients space and in pharma and in health and wellness.

[00:03:38] And so you, you sort of saw a much bigger opportunity than maybe what we were doing at the time. So just to kind of backtrack a little bit mile high labs was really primarily when they started just a bulk in-group. Supplier. And when you started to see other form factors and finished goods and ways, [00:04:00] people were putting out products and putting out brands and so on and so forth, you started to sort of see where there were gaps and opportunities.

[00:04:08] And so that’s kind of where it all started was just sort of watching from that lens and seeing that there were some opportunities that people weren’t really tapping into using more mainstream methods of delivery and using a little bit, you know, sort of less cannabis branding. So to speak in a little bit more, you know, looking at it from a health and wellness.

[00:04:31] And so, so that’s kind of where the thing all started, you know, as far as where the name pure wisdom came about. I, I wanted to try and create something that spoke to the integrity of the ingredients that we were using and that this was kind of next level technology that we were applying towards these cannabinoids and other functional ingredients.

[00:04:54] And so, you know, I have a good buddy who lives down in Crested Butte. His name is Scott reamer, and Scott [00:05:00] has been insanely helpful and involved with helping guide the. Creation of this. And so between putting our heads together, Scott and I came up with pure wisdom because we thought that that, you know, kind of spoke to the direction that we wanted to take the brand and the things that were most important to the brand

[00:05:18]Bryan Fields : itself.

[00:05:19] Yeah. So well said, because obviously separating yourself from the peers is extremely challenging when, and when consumers were unfamiliar with the brand name, they read. The title and the name of the company has to connect with them really instantaneous in order to kind of give it a second look in order just to elaborate whether or not this is going to be a product I’m going to select.

[00:05:37] So Kellen going to your side. Eric’s done an amazing job kind of positioning that with the CBD space being so challenging, which one of the products in your opinion, do you think kind of separates and kind of expand in that area? One

[00:05:48]Eric Levitt: product in particular is I’m a fan of actually, and it is the product with a lion’s mane mushrooms in it.

[00:05:56] I don’t want to try to get better. You know what I mean? I kind of read a lot of self-help books and those kinds of [00:06:00] things and nootropics. Right. Is that how you say it agree? Right. Nootropics is, you know what I’m talking

[00:06:07]Kellan Finney: about when I say nootropics. I do. All right.

[00:06:10]Eric Levitt: So I knew

[00:06:13]Kellan Finney: it’s in his product, right?

[00:06:15]Eric Levitt: No, but nootropics are the use of chemicals found in nature to help with your cognitive function.

[00:06:22] Right. And lions. Long been one. Is it from a Chinese herbal medicine? Is that where it originated from?

[00:06:30]Kellan Finney: Are you,

[00:06:32]Eric Levitt: I just know that humans have had a relationship, like a symbiotic relationship with mushrooms for thousands of years. And so I don’t know where it exactly traces back to. But I know that it’s been used as a source of not only food, but medicine and you know, many other ways that it has benefited humans long, long, long before any of us were even, you know, around.

[00:06:54] And so that was sort of, you know, one of the main reasons why I [00:07:00] wanted to pull that in as one of the first functional ingredients, there was a lot of people doing things. You know, the ashwagandha’s of the world and melatonins and things like that. And so again, and we can get into this more in a little while, but in the spirit of just differentiating, but using stuff that we’re all familiar with and is already starting to become, you know, very routine.

[00:07:22] That was sort of the reason why we pulled in things like lion’s mane quarter separation model.

[00:07:28] Yeah. I mean, I think it’s incredible because the biggest tout regarding CBD is anti-inflammatory. Right. And so if you pair an anti-inflammatory agent with something that needs to be absorbed, does that, I would imagine it increases bioavailability of those kinds.

[00:07:44] Active chemicals that are in lion’s mane that provide the cognitive benefit that everyone’s looking for. So I think it’s honestly a brilliant combination. How did you kind of settle on lion’s made from an ingredient to include, had you taken lion’s mane previously without [00:08:00] CBD, and then you were kind of experimenting

[00:08:01]Bryan Fields : kind of that whole process.

[00:08:03] It’s a great question. And so. I had definitely done some research and had definitely been experimenting sort of, you know, I think that we’re all somewhat of, you know, like kitchen scientists where, you know, you combine a couple of things and you try it out. And so there you know, I, I was turned on to sort of the host defense and Paul Stamets and, and everything that they were doing with with putting out supplements and putting out various mushrooms and things like that.

[00:08:29] And so from an immunity standpoint and. I had taken a few of these and so that’s kind of where it all started. And then, you know, and just sort of looking at what each of these various.

[00:08:39]Eric Levitt: Mushrooms contributes or the various benefits. It gives you some of them align really well with some of these other minor cannabinoids that we are talking about network formulating with.

[00:08:50] And so once you sort of put all the pieces out on the board, it was sort of easy to see who paired up well together. And so to your point, when we’re [00:09:00] looking at something that is designed for cognitive benefits, Focus and energy, you know, lion’s mane sort of fits that description really well. And then so does CBG.

[00:09:12]Bryan Fields : And so, you know, pure wisdom is not only CBB. You know, obviously there are other minor cannabinoids that provide tremendous amounts of benefits. And so in the one that you’re specifically talking about CBG and lion’s mane kind of take, they ride in the front seat of that. And they pair up very well together because it’s super cognitive and, and, you know,

[00:09:34]Kellan Finney: I want to learn more about like the formulation period, right?

[00:09:36] So you were talking about how they, they work really nicely together. Take us through like how you figured that out was that trial and error was that continuous research because that’s a challenging puzzle piece you’re putting together. Right? You’ve got three variables. You’re trying to figure out how well they play together.

[00:09:49] And then you’re trying. Kind of align them together and be like consistency standpoint. We think this is a good match for a general user going forward to take us through the formula.

[00:09:58]Bryan Fields : Sure. So well, so [00:10:00] I’m based out of Denver, Colorado, and pure wisdom has a coal man here in that’s located in Denver. And so I have access to some food scientists and, and these are guys that came from, you know, the.

[00:10:15] Pharma world. And, but they have, you know, it’s a GMP facility that has every, you know, tool and bell and whistle that you need. And so a lot of it was sitting down with these guys and in front of a whiteboard and sharing, you know, ideas of what I was looking to accomplish and, and, you know, then going out and sourcing the ingredients and make sure we’re vetting it and getting it from, you know, companies that need all of those requirements.

[00:10:41] And then a lot of it was. Trial and error and putting together, you know 10 different sort of dosages or amounts and seeing what that sweet spot is. And so there was a lot of sort of Guinea pigging going on where not only myself and, and, but, you know, friends and family were, you know, given a [00:11:00] couple of different, you know, label.

[00:11:02] Jars and saying, Hey, try this for a few days, try that one for a few days and, and, you know, share your feedback on which one of the number jars had the most impact and, and then sort of quote unquote, tabulating those results and seeing where it came in and, and. A lot of the things that we had hunches about, you know, prove to be true.

[00:11:22] You, you can look and see what’s on the market and you can kind of see where sort of recommended dosage amounts are falling. And, you know, from there you just extract what people like and where, what feedback is on that. And, and so, you know, one common theme that you hear a lot from people that take CBD, which is also aggravating and it’s motivating.

[00:11:45] Gosh, I don’t really know if it’s working, you know? Sure. I take it and, you know, and then you say, well, what does it do for you? And then you start to get this look of, gosh, I, I have a hard time really quantifying what it’s doing or verbalizing it because I don’t necessarily [00:12:00] know. And so one thing I wanted to make sure is that we were putting together.

[00:12:03] A product that you would feel and you would, you would feel the benefits right off the bat, and you would know that it’s doing something. And fortunately the majority of all the feedback, if not, all of it is, you know, it’s extremely positive, but that’s sort of how we put this puzzle together was through a little bit of, you know, R and D and trial and error, and just sort of landing on that one that made people feel the best and that they gave the best feedback.

[00:12:29] I have a question

[00:12:30]Eric Levitt: about that formulation process. So some of the products include CBG, right? Which is a minor cannabinoid. And those who work in the industry are familiar with it. Was there like a, an educational process associated with providing those formulations to your kind of sample set of individuals or Guinea pigs, if you will.

[00:12:51]Bryan Fields : They explain what CBG. Without a doubt. And it’s probably the biggest challenge that I faced today. And I will continue to face [00:13:00] is the education side of things. And so, you know, I take for granted or we take for granted, I live in a state that is very, very advanced and familiar with many of these cannabinoids.

[00:13:12] So not only THC, but also. CBD and, you know, miners and what the entourage effect is. And so to us, that’s just very common. And in reality, when you zoom your microscope out, like, you know, out of the city, you’re out of the state and you poll a larger audience, a lot of people don’t even know what CBD is. It gets you high.

[00:13:34] Does it, you know, I’m scared to take it. Is it. Am I going to get arrested? Is it legal? Is it, you know, so you have to start at, you know, sort of square one with this and really educate people.

[00:13:48]Eric Levitt: So to your point, yeah. When you start to get into minors, like CBG and CBN and you know, whether it’s CBDA or just CBD and why is it a and [00:14:00] how is it activated?

[00:14:01] And, yeah, there’s a really large piece of education with it. And so a lot of. You know, there’s a trust factor in this, and this is where being so deep rooted in regulatory and compliance and building a company that is founded on doing things the correct way and doing things the GMP way and sourcing, you know, legit ingredients.

[00:14:22] All of that is in order to build that trust with the consumer to show them that, Hey, I’m not screwing around here. And this is, you know, Tried and trued and tested you know, ingredients and we’re putting this together the right way. But yeah, to answer your question, it definitely involves some education and explaining that, Hey, this is sort of like a, you know, little sister or brother or big brother to CBD.

[00:14:48]Bryan Fields : And, you know, here are the effects that it has and, you know, and then the easiest way was, Hey, let’s start with the smallest dosage one. It’s always easier to. Add to something, as we know, and you [00:15:00] know, that it is to kind of take things off. And so that’s kind of how it started. That that was how I sort of shaped the messaging around this.

[00:15:07]Kellan Finney: So many important points that you hit on from like the messaging from the educational standpoint. I just like can’t, can’t reiterate that enough. Like how important the role you’re playing and the challenges you face with educating consumers. Here in the east coast space that often I bought this product, Brian, will I get high?

[00:15:25] And it’s like, where’d you buy it? And it’s like at the gas station unlikely then, right? Like let’s just put the piece of the puzzle together and think about this logically. And that’s where it gets even more challenging because they buy these CBD based products. And like you said, air, they go, I don’t feel anything.

[00:15:39] And then when they don’t feel anything, they start to assume random thoughts or was this produced a correct way? Why not? Like, and it starts going down a bad tangent rabbit hole. What you’re doing from a messaging standpoint and a patient standpoint, or building it the right way, I think is really going to help separate yourself.

[00:15:55] But I want to kind of continue on the same conversation that I want to know when you consume the [00:16:00] product. Is there an expectancy from a time to start quote, unquote, feeling the products start working? And if so, how long do you think the product will last in duration?

[00:16:09]Bryan Fields : It’s a great question. And, and, you know, as far as.

[00:16:13] How much time you should allow before you feel it. And again, so the pure wisdom products have a little bit larger of a dosage. Then the majority of the mainstream on the products on the market today. And again, the, the, the reason for doing that was I’m a big believer that you need a little bit more from a milligram standpoint for it to really take effect in.

[00:16:36] And so that again, it’s it’s gosh, I don’t know if it’s really doing anything. I didn’t want to run into that because this is far too powerful of a molecule to just sort of be dismissed of I tried CBD and it didn’t really work or do anything for me. I don’t necessarily believe that. I don’t think it’s being administered.

[00:16:54] Right. And so that was one reason that, you know, we’re starting with 50 milligrams [00:17:00] as a, you know, suggested. Serving size was because you want it to do something to answer your question. I think if you give it about 45 minutes or so it’s taking effect. And again, the reason I know this is because we have all kinds of dissolution data and.

[00:17:16] That show you when this is getting absorbed into your blood plasma. And so it helps when you have all of this data to sort of corroborate exactly what you’re feeling and to say, gosh, this is, you know, I am feeling it, look there. It is in my blood. And so, you know, you touched on something, you, you also asked us another question that was, you know, how long does it last?

[00:17:39] And this was sort of the. Other key foundational piece of pure wisdom was the differentiator between what we’re doing is it’s extended release. So it’s, it’s a time-release capsule. And the reason it is, is because CBD and. I don’t know if a lot of people know this has a really short [00:18:00] half-life in your body when you take it, meaning you take it.

[00:18:03] And it is fully absorbed in about 75 to 80 minutes, meaning you’re no longer getting a dosage of it anymore. And so now you’re kind of on the way down and listen, that might be another reason why people say, I don’t know if it’s doing anything. Cause it kinda did it, it came and went before you even knew it.

[00:18:21] And so the technology that we’re using with pure wisdom is. Time-release it’s extended release. And so through that dissolution study that we, that we have, and that we’ve run a few times, you’re still getting a dose of. At hour five at hour six, it starts to taper off at hour six, but the way that we’re formulating and constructing this, you are getting a consistent dosage for those first five or six hours.

[00:18:48] And so this is something that’s going to give you a benefit for 5, 6, 7 hours. Before you start to say, huh? I think I need to take a little more, Hey, you know, it’s time for dinner.

[00:18:59]Kellan Finney: I think that’s [00:19:00] so well said. And Kellen, I want to talk about the story that MJ biz, when we were running on fumes were exhausted from the show and we were just looking around at each other in the room.

[00:19:09] All right. We need to get another second boost. And like you pulled out the, the capsules and we’re so grateful that you have in this moment. And Eric, I’m going to be completely transparent before I took it. I was hesitant. I was like, I’ve took hundreds of these products. Most of the time. I feel nothing, especially when I’m the label, it says so clearly energy focused boost.

[00:19:26] So I was like optimistic and trusting you that it would work, but also hesitant at the same aspect that like, is this going to help me? I’m so tired in this. We popped it. We went to another networking event and I remember looking at Kellen at the event being like, I’m back, dude. Like I got a second wave.

[00:19:41] I feel good. Like it absolutely works. And I want him to text you in that moment, how excited I was. But granted, knowing the time it was, it would have been rude to wake you up. But Kaelin, I mean, given, given that story and understanding the challenges, do you think consumers who would try our product would have a different approach if they might’ve had, let’s say an off-putting experience.

[00:19:59]Eric Levitt: Yeah, [00:20:00] definitely. And I think that honestly, the off-putting experience is more common than I think people make out just because of the fact that it is a very new industry still. And there is a lot of bright eyed, bushy tail people out there who want to kind of get involved in. Jump in and they move fast and break things.

[00:20:21] Right. And so there’s a lot of products out there that like, like, like you mentioned your buddies who were buying stuff at the gas station who might not even have CBD in it. Right. And so I think that there’s a lot of experiences like that where people finally they’ve seen CBD around enough, they go, okay, I’ll buy some, try.

[00:20:37] They don’t vet the brand enough and they get a bad batch of product that potentially doesn’t have the dose. It says in it, or doesn’t even have any CBD in it. And they have a negative experience with CBD. But I think that

[00:20:50]Bryan Fields : that’s where

[00:20:52]Eric Levitt: individuals like Eric are poised to really have. The whole industry with the fact that with experience comes [00:21:00] the understanding of how to manufacture these products, right?

[00:21:04] They’re new products. So the manufacturing industry isn’t as solidified as say some other nutraceutical out there. If you wanted to launch like a melatonin brand, right. For sleep aid, you could just call up a nutraceutical lab and there’s an entire set of CGMP regulations in place. For the listeners who aren’t familiar with CGMP, it means common Goodman, manufacturing practices, and Eric kind of brushed over that a couple of times during this talk.

[00:21:30] And I don’t think that he gave it enough gravity, right? Because at the end of the day, there’s a ton of manufacturing facilities out there that are producing cannot products that are not CGM P certified. And it’s actually very rare for these manufacturing facilities to have that accreditation.

[00:21:47]Kellan Finney: What’s the benefit for our listeners unfamiliar. What’s the benefit of being CGMP? What do you want to, you want to

[00:21:52]Eric Levitt: dive into that? Or you want me to elaborate on that?

[00:21:55]Bryan Fields : Go for it. And then I’ll fill in the

[00:21:56]Kellan Finney: gaps. That’d be awesome. Also CGMP [00:22:00] means that there is a set

[00:22:02]Eric Levitt: method for manufacturing, the product that is followed every single time.

[00:22:06] And that includes specific testing protocols.

[00:22:10]Kellan Finney: Mainly

[00:22:11]Eric Levitt: it includes a third-party vetted quality management program where they’ve shown to a third party, subjective entity that they’re manufacturing what they say. They’re manufacturing from a concentration perspective and a dosage perspective and their following kind of traditional either nutraceutical or pharmaceutical guidelines to produce chemicals that don’t have contaminants that are going to be detrimental to consider.

[00:22:36]Bryan Fields : No, I, I think you nailed it. Listen, it’s this stuff has been around forever. These are FDA you know, regulations that are put in place and they’re put in place to ensure the safety of the consumer. And so there are many checks and balances throughout the process where your ingredient and your way of doing things are.

[00:22:57] You have to do it a certain way and you are [00:23:00] tested by a third-party lab. So whether it is bringing in ingredients to your facility and making sure that, Hey, what you’re bringing in meets, what is exactly on the label and, you know, the way you’re doing it and testing a finished product to ensure that if you’re saying that it has 20 milligrams or 50 milligrams, At the finished product has exactly that and it’s through an accredited lab.

[00:23:24] And so it’s really just sort of holding you to a standard that is going to give everybody the best chance for success. And, and, and to put everybody at peace of mind that this has done the correct. And, you know, we’re not cutting corners just to save some money on costs and we’re not cutting corners to save money on time.

[00:23:43] You follow these steps and, and, you know, that’s sort of what the 1 11, 1 17, whether it’s, you know, for a dietary supplement or food and drug, those are the various stages. These are the type

[00:23:55]Kellan Finney: of standards that I think consumers come to expect from other industries, but in our [00:24:00] industry that it’s not yet mandatory.

[00:24:02] I think the assumption is still that it happens. And I wonder if that’s going to be a big myth that kind of has to get dispelled over time.

[00:24:09]Bryan Fields : You know, I think that that’s one of the main reasons why you hear people constantly pushing for this regulatory pathway and guidance from the FDA is because until they clearly define what that is, people can cut corners and people couldn’t, you know, be a little bit cute with how they want to do things.

[00:24:30] And so until there is that sort of spelled out pathway and, and rules and regulations, You don’t have to do that. But again, in sort of how I got into this industry, it sort of quote unquote, how we were raised and, and you, you do this this way because when this really gets going, you are going to be in a position to really be successful.

[00:24:55] And, and you’re not going to have to change things and go backwards. You know, if you start this [00:25:00] off and raise the bar, Really high from the get-go it’s only going to contribute to the success of the product and the company and help others on the way

[00:25:08]Kellan Finney: and the industry. Right?

[00:25:09]Eric Levitt: Cause I think that that mentality is something that the industry lacked at the beginning of the end of prohibition, if you will.

[00:25:15] There’s a lot of people that just jumped in and being like, oh, I’m going to hang out for a year and be a millionaire. And I’ll just peace out and have my little extra strategy and they’re cut all the corners they could to increase margins and all of those things. So. That poor mindset, a lot of new individuals early on in the industry, I think led to.

[00:25:34] Kind of a bad case of investor’s mouth and kind of the bad taste for the industry

[00:25:39]Kellan Finney: in the first few years when legalization

[00:25:41]Eric Levitt: was kind of getting rolling. So I think that that is something that’s overlooked a lot from a it’s a marathon, not a sprint.

[00:25:49]Bryan Fields : It’s

[00:25:49]Kellan Finney: an expensive investment, right? Like that’s the one aspect.

[00:25:52] I think why people kind of go the other way. They’re like, well, I don’t need to do this. And it’s expensive. And in an industry that’s kind of cash strapped. It’s easier [00:26:00] to look the other way. And I’m not saying it’s the right way to do it, but that’s likely why. So before we kind of dive into some of the other products love, I want to know what was one of the challenges that you faced in setting.

[00:26:12] Sure wisdom that an everyday person

[00:26:14]Bryan Fields : would not know about. Sure. Well, you know, we touched on one of them and that is it’s education. It’s it’s, it’s the message. So that’s one of them is you have to remember who your audience is and with something like CBD and hemp derived products, the audience is basically everybody in, you know, the United States, you know, there might be one or two outliers.

[00:26:37] States that don’t necessarily want you shipping it or driving it through or this or that. But for the most part, we can ship anywhere in the U S and, and even many countries internationally. And so it’s understanding who that audience is and tailoring a message or tailoring multiple messages, because like you said, maybe up in the north, A lot of folks don’t even know what it is we’re in [00:27:00] Colorado.

[00:27:00] Okay. You know, they might be, you know, a little bit more advanced, but they might not know some of the nuances of minor cannabinoids, like CBG and CBN. So one of the biggest challenges is tailoring the message for who the audience is. The other is because there is not sort of federal guidance on this.

[00:27:19] This is still viewed federally as illegal. And so when it goes to marketing a product. I can’t pay to play in the sense of, okay, this is when you’re bootstrapping a company and you’re starting it on your own and this and that, you can use tools like social media. You can use the Instagrams and the Facebooks of the world and you can kind of pay to play.

[00:27:40] And what I mean by that is you can pay to boost an ad or promotion a message and get it to a much larger audience in this case. You still can’t do that because there’s still this gray area of what hemp and CBD is. And so back to your point of what’s an everyday challenge or the biggest challenge, it’s things like that.[00:28:00]

[00:28:00] It’s having to do things really organically and sort of get your message out that way versus being able to. Have a marketing budget and apply this monthly spend to getting it out to a certain part of the country. And so those are some of the everyday challenges. Obviously the easy ones to talk about are things like banking.

[00:28:23] You know that that’s

[00:28:25]Kellan Finney: hard

[00:28:25]Bryan Fields : though. It is. And listen, I read your guys’ playbook, your monthly playbook and. I’m obviously not the only person that is feeling those challenges or pains. One of the consistent messages that you guys drive home and, and it’s awesome is, Hey, we really need to do something for all of these companies out there and for this take of the industry and get things like banking and financial things in place and get some of these other sort of regulatory guidances in place so that everybody can be treated.

[00:28:58] Any other business or company [00:29:00] out there. I mean, it’s frustrating as hell when, you know, we paid taxes like every other business and we’re treated like every other company, whether it’s, you know, a vitamin company or a pharma company or a food company, but yet they don’t afford you. All of the. You know, benefits in the form of, you know, Hey, go into this bank or Hey, open this account.

[00:29:21] Or, you know, even if it’s been Mo or PayPal, you know, they look at you, like you’re a bad guy. And so that part is it’s challenging. It’s aggravating and challenging. The, the list of

[00:29:30]Kellan Finney: challenges is almost endless, right? You’re going through like a real one with the marketing. Also you’re like, by the way, banking too, also super hard.

[00:29:36] And it just kind of like spirals out of control. And

[00:29:39]Bryan Fields : maybe this is a bad analogy, but for some of our listeners

[00:29:42]Kellan Finney: that are unfamiliar with how hard it is, it’s like being a construction worker and not being able to use like a hammer or a screw or a good drill. Right. And like, this is how. This is what we’ve always done in marketing.

[00:29:51] And they’re like, oh, by the way, you can’t use any of these tools. And by the way, you can do banking and it also is illegal. So all of these other areas just makes it so much harder. [00:30:00] So I guess then yeah, go.

[00:30:02]Bryan Fields : It’s like, we, we, we talked about doing things by the book and doing things the right way. And you know, we spent a few minutes talking about, you know, CGMP and, and, you know, so, so staying true to that.

[00:30:13] But then when other areas of your business you know, you sorta have to bend it a little bit here to do your banking or bend it this way to, you know, send out a marketing message or, you know, in, in some ways you want to be very traditional. And in other ways you really got to get creative in order to keep this thing on.

[00:30:30] What’s the

[00:30:31]Kellan Finney: next set of products on the roadmap. Is there any ones that you can share with us? Is there any ones you’re really excited to or any, any future opportunities

[00:30:39]Bryan Fields : there? Yeah. You know, right now we’re just sort of iterating on sort of the key ingredients and the things that we have out there now.

[00:30:47] And so I can see bringing in a few more adaptogen ingredients, functional ingredients, things like. And, you know, we look at different delivery methods, different form factors. So, you know, playing around with [00:31:00] weather, you know, right now these are capsules and, you know, there might be an opportunity for tablets down the road.

[00:31:06] There might be an opportunity for stick packs or drink mixes because again, pure wisdom is a, you know, it’s extended release powder that is going into capsules. And so there might be some other form factors or things like that, but really right now, I don’t want to, over-complicate it. I still want to take sort of this core foundation of products and get it out to the larger audience before we really start to get fancy with it.

[00:31:32] And, you know, I’m a big believer in sticking to one thing and making it really good. Versus, you know, having, oh, we got topicals and we got gummies and we got soft gels and we got, you know, mints and hair shampoo. And so we’re, we’re gonna, we’re going to keep it simple with this for a little while and really kind of get some traction going and then we’ll, you know, sort of then build on.

[00:31:54]Eric Levitt: Darn it, I was really looking forward to the hair shampoo line. I could use it, you know, [00:32:00]

[00:32:00]Bryan Fields : you’re looking good today.

[00:32:03]Kellan Finney: The pure wisdom past salts can come out next. Right. People start consuming those and be like, I’m hallucinating.

[00:32:09]Bryan Fields : I mean, I mean, what, I mean, we’re making a joke about it and obviously, but when you look at the industry, There’s a bazillion company.

[00:32:16] It’s out there and there, and everybody is putting CBD into everything. And so, again, it’s, it feels very wild, wild west still because there’s no regulation into, Hey. You really need to do it this way. And, and I’m not saying that, you know, and making a joke that the shampoo ideal wouldn’t work or that, you know, the toothpaste wouldn’t work, but we’re trying to stick to ways that are more widely familiar and accepted and sort of tried and true.

[00:32:47] And that’s why, you know, at least in, in our world, we’re keeping it simple with capsules.

[00:32:51]Eric Levitt: I have a random question before we move on to the next topic, Brendan. My question is. So D are [00:33:00] you led you believe that the entourage effect is also in play with the addition of like lions

[00:33:05]Kellan Finney: thing and some of these

[00:33:05]Bryan Fields : other ingredients?

[00:33:07] Yeah, it’s a great question. There, there is a hundred percent synergy between, so I use the word synergy. ’cause now we’re pulling in other ingredients besides just cannabinoids, but yeah, when it’s cannabinoids only hell yeah, there is a entourage effect when you know the little brothers and sisters of, you know, CBG and CBN and, and then large part when there is a little bit of THC in the product.

[00:33:32] And just to clarify, there is zero THC in pure wisdom products today. But in past experience and understanding how these things work when there is that little bit. Yeah. It acts as a spark. Everybody quote unquote plays better or their performances you know, more true to what they’re supposed to do.

[00:33:53] Cause again, if you extract this, you’re attracting this plant and when it is. In its truest [00:34:00] sense and you’re not sort of adult trading or changing or removing things or whatever that’s in its truest form, how it is in nature. And so there is a spirit to keeping this as honest and true to. How nature has it intended.

[00:34:17] And so, yeah, when,

[00:34:18]Eric Levitt: when there are more cannabinoids together and everybody is playing in harmony, there is definitely an entourage effect and then building on it and you’re adding in things like mushrooms or other ingredients. There is definitely synergy and these things play off of each other. Now, do I have data to show this and back it up?

[00:34:36] I don’t because it’s in its infancy, but I can tell, but I can tell you that. When the lion’s mane and the CBG and the CBD are all together. Yeah. They’re definitely playing off of each other and, and helping one another.

[00:34:49]Bryan Fields : That’s

[00:34:49]Kellan Finney: a great question. Come on. I have that on my list too. So hats off to you for

[00:34:55]Bryan Fields : my seat.

[00:34:56] I didn’t even know you had, [00:35:00] I shared

[00:35:00]Kellan Finney: that sheet with you. I don’t cause that’s the question I wanted to ask, but I guess we, we don’t need to ask it so. But since you been in the cannabinoid industry, what has been the biggest

[00:35:12]Bryan Fields : misconstrue? You know, it’s a great question. I’d say one of the largest misconceptions with this whole thing is that, is that this is made and works for everybody.

[00:35:23] Okay. Like there’s so much CBD stores out there and whatever, and then. Sure it could have a benefit for everybody, but this isn’t necessarily made for everyone. I think that there are, you know, you, you need to be at the right sort of frame of mind. You need to be at the right place in life for, you need to have an open mind first and foremost, because with other types of health and wellness products, there is a.

[00:35:46] Boom, you try it. And the thing turns blue or the thing turns red hot work. You need to understand how this works. And so a misconception is that, you know, Hey, this, this will work for everybody and this will cure you and [00:36:00] make you taller and make you smarter and make you this. And, and so I think just understanding that, Hey, This works a little bit differently for everybody and listen to, everybody’s got some kind of inflammation, whether it’s something growing on, you know, the side of your head or whether it’s inside your body or whatever, everybody’s got something going on in their body.

[00:36:20] And so it helps with whatever is aggravated or whatever is, you know, in your body. But as far as, Hey, will it have the same benefit on everyone? The answer is no, it does something a little bit different to everybody, but in a good way,

[00:36:36]Kellan Finney: can you use the products as like an everyday supplement, like

[00:36:39]Bryan Fields : a multi-purpose vitamin?

[00:36:41] So that’s how we’ve constructed and formulating them to be a daily supplement. And so at least with the current skews that we have, there is a. Product that is designed for the morning. And so again, there are a lot of people that love to just pound cups of coffee in order to get going. And I could [00:37:00] see just from your reaction that a Dava junkie,

[00:37:05]Kellan Finney: I mean, you know, Kaelin, like he is a

[00:37:07]Bryan Fields : Starbucks beam.

[00:37:09] Oh, yeah. And so, you know, there is, this is designed as a daily supplement, so there is one to start your day off and to kind of give you that little pep in your step. And that’s the one with the lion’s mane and the CBG, there is an all day one that is just meant to sort of take the edge off and just to kind of remove the anxiety.

[00:37:28] Listen, we’re in a day and age where. Things are tougher and crazier and wackier than ever right now. And so there is extra stress and there is extra just sort of mental discomfort. And so that’s kind of what was the impetus to create this whole thing was to get away from taking, you know, a lot of these readily available opioids that are all over the place that are just so easy access to, but that are so damaging in the long run to your mental.[00:38:00]

[00:38:00] And wellness. And so not to get off on that tangent and then there’s one for the evening. And so there’s people that have a hard time sleeping, staying asleep, falling asleep. And so we designed one for the evening as well, that focuses more on rest and kind of daily recovery of the body. And yeah, I take two of the three every day and that’s kind of like my regimen along with, you know, some other vitamins and supplements and that’s my routine.

[00:38:24]Kellan Finney: Before we do predictions, we ask all of our guests, if you can sum up your experience in the cannabis

[00:38:29]Bryan Fields : industry for a main takeaway or

[00:38:31]Kellan Finney: lesson learned to pass onto the next generation. What would it be?

[00:38:35]Bryan Fields : You know? That’s a great question. I thought when you were talking about predictions, we were going to talk about, you know, week 16 football picks and things like that.

[00:38:43]Kellan Finney: Predictions are next, but we

[00:38:44]Bryan Fields : won’t. I got very excited. That’s why I thought I was on the show, but no, the, you know, the takeaway is. There’s a lot of different ways to do this. And you know, when I got into it in the cannabis space, there’s a lot of corners that can be cut. I think the [00:39:00] takeaway is, is when you do this, right.

[00:39:02] And it’s like with anything in life, what, when, when you do it right from the get-go, there’s less things that you got to worry about down the road. You just build it correctly the first time, and then you know, that it will stand no matter sort of what regulation and guidance and sort of rules come into it.

[00:39:19] It’s built with that already in place. And so I think just approaching it the right way and doing it honestly, and building it as something that, Hey, you’re comfortable with your family taking this and, and your friends taking it. That’s kind of the biggest sort of thing that I would pass on is. Yeah, there might be a quick way to hit it, but you know, is that really the right way?

[00:39:42] And is that really the honest way and just kind of having that integrity as you’re building this along the way, I think is something that I would highly recommend. Beautiful. All right. Prediction time,

[00:39:53]Kellan Finney: Eric, which cannabinoid use case or a quote unquote effect, those are air quotes for those listening. [00:40:00] Do you think will be the first to be mass adopted?

[00:40:02] And if I did mangle that question and the example would be. Sleep focus, recovery. Which area do you think will be the first to be mass adopted with the

[00:40:12]Bryan Fields : that’s a great question. As I look into my crystal ball and more just with the experience that I’ve had in the last year of launching this company, it seems like.

[00:40:23] The most feedback. And the biggest thing is around CBG. So CBD was the first one out there, because again, when you extract the hemp plant, it’s the one that’s most readily available. It’s the one that there’s the most of it. And so that’s kinda why it’s leading the charge, but as far as, and again, this is just a complete, you know, hunch, but, but CBG.

[00:40:48] When it’s around really promotes a lot of the, the feeling that it gives the body, the feeling that it gives the mind is it’s in line with all of the things that kind of humans are. Quote [00:41:00] unquote, already. I don’t want to use the word addicted to, but loving, you know, it’s, it’s the same feeling as caffeine.

[00:41:06] It’s the same feeling, you know, I mean, again, caffeine is a plant. It started off very, you know, it’s, this is stuff that they’ve been taking for thousands of years and has kind of shaped the way that our country acts and works. And so it falls in line with that. And so that one’s sort of an easy. And just sort of seeing what humans gravitate to and, and where they spend their dollars already.

[00:41:31] But, you know, I will say that when we can figure out something that works for sleep for everybody, that will probably be the big one, just because I think everybody has trouble sleeping and the older you get, the worse it gets. And so if there is a. Magic capsule or something that really, really works for everybody, all shapes and sizes and missing that.

[00:41:56] That’s probably going to have the biggest impact. So I’m going to hedge my bet with [00:42:00] and answer it with two different ways. You know, just to play it safe. You know, I mean, that’s totally my put the money on that square

[00:42:12]Kellan Finney: block, then

[00:42:12]Eric Levitt: we’re going to discuss them over. I’m going to drop my bag right there too.

[00:42:15] I think it is. I think CDN, honestly, I think the dosage, as well as the purity and as the manufacturing protocols that are being implemented for the production of CDN on a wholesale perspective, I think that that will become more, more and more adopted. And I do think CBN anecdotally does help with sleep.

[00:42:31] I think that potentially if you pair it with melatonin and some other chemicals that have that kind of synergistic reaction, that a pure wisdom is already putting together with some of the other cannabinoids and some of the other. Active nutraceuticals out there. So that’s my guess. What, what’s your

[00:42:50]Kellan Finney: prediction?

[00:42:52] Yeah, the sleep is, is, is the free square, right? Like let’s, let’s all just admit that if someone can solve that problem that’s [00:43:00] I mean, I, they get to retire with a yacht.

[00:43:01]Eric Levitt: I think

[00:43:03]Kellan Finney: these upsides. Yeah. Like, I mean, that is like the problem. That’s gotta be one of the number one, like most faced issues probably universally across the world is that as the older you get people sleep and people Nene on anything, they can to help that.

[00:43:16] I mean, I can speak on experience. My mom would do anything. If she could guarantee a good night’s sleep on a regular basis and has tried so many different products. And at a certain point, I think she’s almost given up to think like she’s just never going to have a good night’s sleep and mama. You’re listening, which you likely are not.

[00:43:30] You got to figure it out eventually and try one of Eric’s

[00:43:32]Bryan Fields : and pure wisdom would be happy to send your mom a care package and she could try these out and listen, if it works for her, then I’ll start asking her to make posts on Instagram. Yes.

[00:43:45]Kellan Finney: The post. But you’ll have to send this to offline because there’s a very good chance.

[00:43:48] He’s not listening to this podcast. But the one that I’m going to take is going to be the fitness recovery aspect. I think like you were saying earlier, The pain and inflammation that people kind of age is going to be one of those where it’s going to continue to move in that [00:44:00] route where they’re going to want to have a replacement for the opioids or the Advil and the anxiety and deuce experience like you were facing is another one that I think is an emerging one.

[00:44:09] So I wonder if I was going to have to hedge my bets on, I can’t take the sleep one. I might go 50, 50 or 40, 60 on the anxiety based and the recovery fitness.

[00:44:19]Bryan Fields : You know, and, and again, that goes back to, there’s not necessarily a one size fits all. There’s, you know, we, we all have laundry list of, you know, issues and challenges that we’re dealing with every day.

[00:44:29] And so to pick one or two of them and to try and at least get that into a comfortable place and then say, all right, now I’ll tackle the beast of sleep or whatever it is is it’s a challenge.

[00:44:39]Kellan Finney: It’s a ongoing. So Eric, for those who are interested in trying your products, getting in touch, where can they reach you and where can they

[00:44:44]Bryan Fields : learn more?

[00:44:44]Eric Levitt: Yeah, thanks a lot. So we have a website it’s www dot pure wisdom food. With an s.com. You could also go to pure wisdom CBD and it reroutes you. There, there is a total full service e-commerce [00:45:00] platform. We have smaller size blister packs that you can, you know, try these things for under 10 bucks. It’s before you, you know, have to spend a little bit more to get in and, you know, kind of get a full sized bottle.

[00:45:12] You can also send an email to [email protected]. Just share with us what you’re looking for. You know, again, we’re pretty customer centric. We will respond quickly and we’ll get you some stuff to try out and hopefully it’s a good fit for you. I think it will be. Thanks so much for your time, Eric.

[00:45:27] Yeah. Thanks. You guys really enjoyed it. Keep up the good work. Listen to what the monthly playbook and the podcast and hopefully I’m back another time Jen. We can pick it back up. Love it sounds good. All right. Happy holidays. Thanks guys.[00:46:00]

Share and Enjoy !

laptop-img
Get In touch With Us

Action-Oriented problem solvers ready to go

One Report Once a Month Everything you Need to know

From executive-level strategy to technical know-how, our actionable insights keep you ahead of the pack!

Editors’ Note: This is the transcript version of the podcast. Please note that due to time and audio constraints, transcription may not be perfect. We encourage you to listen to the podcast, embedded below if you need any clarification. We hope you enjoy!

N2N is a boutique firm in the cannabinoid industry so we are agile and can have boots on the ground quickly and efficiently.  We have considerable internal resources that we employ but also have the network and connections to additional independent contractors for whatever job is needed. We do not have the internal hierarchy of a larger firm where politics can get involved or everything is focused just on revenue.  We value the relationship and opportunity to grow with our clients.  

https://www.n2nadvisors.com/

This show is presented to by 8th Revolution:

At Eighth Revolution (8th Rev) we provide services from capital to cannabinoid and everything in between in regard to the hemp & cannabis industry. Our forward-thinking team can diagnose, analyze & optimize every detailed nuance of your company to keep your business safe, smart, and profitable. Our flexibility and experience combined with ongoing research create unique insights into how to best grow your market share. Contact us directly at [email protected]

Bryan Fields: @bryanfields24

Kellan Finney: @Kellan_Finney 


[00:00:00] Bryan Fields: What’s up guys. Welcome back to that episode of the dime as always I’m Brian Fields. And with me as always is my guy Kaelin Finney. And this week we’ve got a very special guest west Campbell co-founder of end to end advisors, west banks for taking the time. How are you doing today?

[00:00:15] Wes Campbell: I’m doing excellent for a Monday.

[00:00:16] Thanks for having me on

[00:00:17] Bryan Fields: we’re excited. Dive in how.

[00:00:19] Kellan Finney: I’m doing, I’m doing really well, honestly, and joints too good weather it. Happy to have another west coast around the show. So life’s good. How are you,

[00:00:27] Bryan Fields: Brian? You and good. And obviously I tried to skip that point to try to get as fast, but the ratio is getting closer, but I’m excited to learn about accounting topics because I think what we’re going to discuss today, I think a lot of people in the space kind of put to the, to the back burner.

[00:00:43] You know, west, we’re going to help bring it to the front. So before we dive in west, can you give our listeners a little bit about your background?

[00:00:50] Wes Campbell: So my background, I am one of those public accounting junkies. I’m a former PWC, public accounting, auditor and capital markets [00:01:00] guy. I spent over 10 years with PWC auditing companies on the New York stock exchange.

[00:01:05] I then switched into their capital markets. Is there any services to do an IPO, mergers acquisitions, carve-outs us gap to ifrifrst conversions, vice versa have experience with them in the U S I was with them in Zurich, Switzerland for about six years, worked all over Europe, all over Africa. So this broad range of, you know, public accounting make director.

[00:01:30] And then about five years ago, I went out on my own and that’s kind of where Intuit advisors.

[00:01:35] Bryan Fields: Let’s talk about cannabis. When you dove into cannabis, was there hesitations, was there a moment you can take us through where you realize you want it to be

[00:01:43] Wes Campbell: in this. It’s funny because I always traveled and moved where PWC needed somebody to get the next promotion.

[00:01:52] And so when I left public accounting and I actually moved to Denver because I wanted to live somewhere with mountains again, I actually wanted to go [00:02:00] somewhere where I wanted to live and not be told by the way, you’re going to go here if you want to get promotion. And when I came to Denver and I went out on my own with zero clients, And just had a connection, a wholesale grow, and that was kinda my first step into it of, Hey, let’s, let’s see what this is all about.

[00:02:18] And, you know, it was kind of not planned. And once it started, it became very, very interesting to me and all the rules and two 80 E in this emerging market. And here I am, this X director with all this knowledge and experience, looking at this very brand new marketing cannabis. And so I went full in headfirst, everything else in the last five years, you know, cannabis CBD cannabinoids, they make up about 80% of our revenue right now.

[00:02:48] So it’s, it’s been one heck of a journey.

[00:02:50] Bryan Fields: So before we dive into some of the cannabis specific topics, I want to get a little comparison. Is there one area about accounting or in [00:03:00] cannabis that’s harder than outside industry that you can kind of give a comparison.

[00:03:03] Wes Campbell: I mean, everybody’s going to know it’s, it’s an inventory.

[00:03:05] It’s, it’s it’s to ATD and coming to this, understanding that based upon the rules that are out there, all these cannabis companies have to follow two 80 E. They need to be tracking their inventory. And what we usually see with a lot of our clients. That inventory number doesn’t even change on the balance sheet.

[00:03:23] They don’t have the systems in place, you know, coming from a public accounting background and Sarbanes-Oxley controls and all these audits and having a lot of capital behind you. That’s what we always see in cannabis. So that’s been the biggest hurdle with us is kind of telling people, look, you’re in cannabis.

[00:03:42] What’s your exit strategy. You know what types of controls, all this boring stuff. Most people don’t put value. Well it’s here. You need to have it. Where are we? How do we move forward? How do we make sure you’re compliant? That is the biggest thing is really 280E and inventory and all the regulation. [00:04:00] So

[00:04:00] Bryan Fields: that’s, that leads us right into our first question.

[00:04:02] So for our listeners who might not be familiar with, to ADE, can you just give us the layman’s definition of what two 80

[00:04:09] Wes Campbell: is? So at the end of the day, two 80 E basically says you can only expect. Cost of goods, sold everything else below the line, whether it’s your accountant like me, if it’s not a cost to produce and get that inventory ready for sale, you cannot deduct it on your individual partnership.

[00:04:30] S Corp corporate tax returns. You have all this Phantom income. How are you going to control it when you can’t take those deductions? And now we’re going to tax you on revenue that you really never saw.

[00:04:41] Kellan Finney: only it’s so two 80 is only for the cannabis industry. Right? Other industries don’t have

[00:04:46] Wes Campbell: to obey by weeks.

[00:04:48] It’s funny you asked that question because two 80 E came about and years ago with somebody who was actually selling cocaine and,

[00:04:57] Kellan Finney: oh, I was so hoping so much that you were going to go into this [00:05:00] story. Continue

[00:05:01] Wes Campbell: the IRS that look, even if you’re doing illegal stuff, right. Breaking the wall. Whether it’s a, it’s a schedule, one drug we’re still going to tax you on that income.

[00:05:12] So that’s where it started. And you’re kind of looking at it, going, most of these people doing that are on the black market and they’re not going to pay taxes anyway. So two 80 is from years and years ago, that’s now impacting cannabis and really, you know, hindering all these entrepreneurs that are trying to get into this.

[00:05:31] So it’s, it’s super old. It’s all about illegal drugs. And no matter what, even if you’re a drug dealer, you need to pay taxes on.

[00:05:37] Bryan Fields: Can you give an example for how much, like it actually hinders the operators? Just to kind of give some, some context.

[00:05:44] Wes Campbell: I mean, we’re talking every year. If I’m looking at an individual, let’s say that runs a dispensary.

[00:05:50] They’re probably going to have about a couple hundred thousand dollars worth of income coming through a K one. Now I’m getting a little bit tax accounting on you. This [00:06:00] ordinary income that gets passed through and flows to their individual tax. So because you can’t deduct it, that means your taxable income is higher.

[00:06:08] So for instance, You can’t deduct my costs. If you’re doing advertising you, can’t in theory, deduct that cost from your bottom line to get your taxable income. It’s strictly comes back to what is your cost of goods sold? And so it’s, it’s very, very challenging for a lot of people to try to understand this, because now you’re into a cashflow situation, you sell a million dollars worth of product.

[00:06:34] Your cogs is only two, 300,000. All of a sudden you’re paying taxes on 700,000, but then you had another 300,000 and expenses you couldn’t,

[00:06:43] Bryan Fields: and that’s exactly what I wanted you to share, because I think that’s the part where people kind of sometimes misunderstand how exactly how that applies. So what can, what can operators do?

[00:06:54] Is there, is there loopholes, is there waste through that? Is there any, is there any ways to kind of figure out [00:07:00] how to, to save a little.

[00:07:01] Wes Campbell: Well, there’s two things here. The first thing everybody needs to remember is the IRS is on a backlog, right? They have over 8 million returns from last year. They still haven’t processed.

[00:07:11] They’re understaffed. They’ve really not got into auditing the cannabis space. Right? So the risk that’s out there is here in two to three years, everybody’s going to get selected or a lot of people on cannabis to be audited. Right. And that’s the gigantic risk that people don’t understand. Your books are going to get looked at the one thing that people can do.

[00:07:32] And we preach this to everybody. And I think we were talking earlier. Brian is everybody has an attorney. Everybody calls her attorney. I need to set up a legal entity. I need to do this. They pay that attorney. They go away. They solve an issue as accountants were there every day. You need to call us before you’re calling that attorney or both at the same time, so we can all collaborate so that you’re not behind, you know, the starting line, you know, most people get into business and all of a [00:08:00] sudden they’re making money.

[00:08:01] They are trying to look at their books and nothing’s making sense. The IRS guys coming down saying you owe us all this money. So the biggest thing that we try to tell our clients is get on the phone, give us a. Let’s talk for 15 minutes. Let’s hear what you’re trying to do. Let us give you our insights. I mean, 20 years experience, I’m telling you, I can give you a lot of pointers of what not to do, because we’ve experienced that with 99% of the cannabis clients, CBD clients that we service.

[00:08:30] Bryan Fields: And I wonder west too, then the kind of following up on that point, you know, in those instances where they’re not keeping you actively involved and then the IRS comes, I’m sure one of their first phone calls is to you west. Hey west. W w what is this? I don’t know where any of these things are. Where’s this supposed to go?

[00:08:45] I mean, you’re then stuck in a really

[00:08:47] Wes Campbell: challenging situation. Well, they love us when those letters start coming in from the IRS, you know, that’s when they give us a call. And the first thing I tell them is this all comes back to your financial reporting, your [00:09:00] accounting, your bookkeeping, every single, if you don’t have clean books, you’re never going to be able to argue with the IRS or give them the support to say, here’s my.

[00:09:09] Right. So now all of a sudden we get these new clients two, three years in the industry and their books are a mess. Now we’ve got to fix that process going forward. On top of looking backwards, we also see some really simple things where, you know, a lot of clients go out and set up all these different LLCs and they love to Tommy.

[00:09:30] Well, I’m an LLC and I’m like, Are you a partnership? Is there more than one person? Are you a sole proprietor? Have you made an election to be taxed as an S or do you want to be a C Corp? Just because you’re an LLC, there are other stipulations on how you’re going to be. Tapped. Tax is one piece of the overall equation before we even get to taxes.

[00:09:50] It’s your financial accounting and reporting daily activity to get those results in order to flow into that tax return. So we try to [00:10:00] coach people that. This is an everyday thing. It’s not solved one problem. If your process is not thorough and complete your numbers, aren’t going to reflect it. You’re going to make bad management decisions.

[00:10:11] Possibly. You’re always going to be looking at what’s in my bank. The bank is one account on a balance sheet to me, you know, what is your net income? What is your Phantom income? There’s all these lovely things that when you come from this public accounting background that you’re telling people. It may not be the sexiest things, but internal controls and processes and documentation is vitally important.

[00:10:34] And you should have it in place before you even make your first sale. But most people don’t do that.

[00:10:40] Bryan Fields: I think that’s so, so well said, right. Because if you’re using your bank account to make, let’s say marketing decisions or growth decisions, And you’re like, well, we’ve got all this money. We should go grow the company.

[00:10:51] And then the IRS comes and they’re like, well, by the way, you owe us some money. You’re like, well, that seems weird. I thought you took the money. And that’s where things get really interesting. So [00:11:00] Kellen kinda kind of come in a little bit, is counting a forgotten piece of the puzzle. You think with.

[00:11:05] Wes Campbell: I would say

[00:11:06] Kellan Finney: not anymore.

[00:11:07] I would say at first it was definitely a huge issue. I mean, straight up, I think we were chatting earlier before the show. And you mentioned a story about a client having an outstanding tax bill. And I literally experienced that firsthand. I was working at a company out in California and we had a great year and it came, came to January.

[00:11:28] Next thing, you know, the accountants was like, okay, well you owe $800,000 to the IRS. And it completely sunk the company. Every single employee had to take a massive pay cut. It was just a giant, giant mess. And I mean, the company was barely hanging on after something like that. You know what I mean? It was.

[00:11:46] Massive massive mistake on their part. And I mean, again, I’m, I wasn’t, I wasn’t an accountant, but just experiencing that, it literally showed how challenging it is to operate a business in the cannabis space. [00:12:00] And then if you’re not kind of hyper vigilant in terms of. Kind of making sure that you’ve overturned every rock before you jump feet first into this industry, the repercussions from mistakes are just insanely massive for my experience, you know?

[00:12:16] And I mean, it’s tough because from, from my understanding and correct me if I misspeak here, Wes, but you in order to play two 80 the right way, and there is a specific playbook to approach that if you’re in. Canada’s for instance, and you mentioned inventory a bunch, but in order to maintain that inventory, that’s a day to day.

[00:12:39] Operation like you can’t just be like, okay, we’ll do that inventory thing. Come March before I send my paperwork over to the account. Right? It’s a day-to-day thing. Is that correct?

[00:12:49] Wes Campbell: Less it’s it’s every day. And what ends up happening is most people are used to having an accountant. It’s just taxes and they get their year done.

[00:12:58] They say, here’s all my [00:13:00] receipts. You know, here’s all this go do a tax return as a cannabis company. Every single day, you’re making sales, you have expenses, you have things like a chart of accounts, right? That is extremely detailed. And you get people like me that, you know, with 20 years experience, we just know how to play the game now.

[00:13:19] And one of the first steps that we tell a lot of our clients or we’ll do the analysis is let’s see your vendor master list. Let’s actually map all your vendors to the specific account that is hit in your trial. Right. Where do they all go? Is it cost? Is it not? You know, every single one of these things, we, we always have this analogy and accounting is you bring us in the train still moving, or the plane’s still flying.

[00:13:45] Right. We are building that train track. We’re building that plane as it’s flying on top of, we’ve got to look back and say, what’s the last year. Do these results make any sense before we do a tax return? So it’s this constant. Evolving that has [00:14:00] to go on and, and a big part of it’s this collaboration.

[00:14:03] We’re not the people that just, you know, at the end of the month does a couple adjustments. Here’s what your P and L looks like. Here’s what your balance sheet looks like. It is an everyday thing. We have to partner with our clients and collaborate and share information, get this, you know, dance kind of going to where.

[00:14:24] We don’t get it month end or year end. And all of a sudden it’s a fire drill to get a tax return done. You know, right now I have clients that are calling me saying, Hey, I have so many receipts that I need to get in the books that takes time. I mean, that can take days, you know, luckily we have a group of 13 people that are working with us, that our employees, we have that capacity, but right now we’re in January and everybody’s thinking, well, my taxes aren’t due until April 5th.

[00:14:51] You need to be talking to us. Now we need to know where you are. Are your books complete? What’s your structure? Do we have a partnership [00:15:00] type return? Do we have a corporate return? Which our legal entity structure, because we’re in January. So that means 10 90 nines. All W2’s need to be sent out by the end of this month, when we hit March 15th, you have partnership and S-corp.

[00:15:14] Are do or extensions then April 15th, your individual taxes. That is not a long time, especially when you just had 12 months of activity. If you haven’t had your accountant in the loop, that means there could be 12 months worth of fixing. I got to do on top of adding in receipts and everything else. You can give a lawyer, a call, they solve an issue or two, and those guys are expensive.

[00:15:39] You call us right now. We’re not cheap, but we’re not a lawyer. But it’s the time it takes us to get caught up, to go through those black holes, to ask all the questions that we need to make sure when we’re filing taxes, that we have the complete picture, you know, it’s literally 365 days a year. Not just.

[00:15:58] Yeah,

[00:15:58] Bryan Fields: like it’s [00:16:00] continuous partnership. It’s not, it’s not an as need basis. Right. Because if you have to get some pieces of a puzzle in April and then go, all right, well, there’s a huge gaping hole right here. What happened in quarter three? And they’re like, well, you know, we had an issue here. We have an issue here and it’s like, that’s great.

[00:16:15] But like, we now have to figure out where these pieces of the puzzle are because we still have to submit them from.

[00:16:20] Wes Campbell: Well, and not to mention, maybe we picked up a set of books that was done by a bookkeeper, right. Or, you know, you see all these commercials right now, especially with the NFL play and all the playoffs.

[00:16:30] And you know, this QuickBooks person I’ll make sure your books. Well that person’s probably getting paid 20 bucks an hour. Right. I come from five years of college getting a, master’s essentially taking a CPA exam, all this public accounting experience. And you’re telling me that person on a QuickBooks commercial is going to know what I know it’s never going to happen.

[00:16:49] And, and, you know, we tell people all the time, if that’s the way you want to go do it, because you’re going to call us when everything hits the fan. And now all of a sudden, we’re trying to get you out of.[00:17:00] Not necessarily trouble, but just out of the challenging situation. And it’s, it’s just like working out or eating, right.

[00:17:07] It’s a consistent day-to-day thing in order to feel better. You know, I can’t just go to the gym one day and think all of a sudden I’m going to come out and have a six pack ready to go to the beach and everything else at 45 years old. Right. Cause that’s what we try to explain to our clients is bring us in now let’s start talking.

[00:17:26] Let’s see where your needs are. Sure. Maybe you can’t pay. For us to be your fractional CFO, fractional controller, but there is value we’re going to add and work with you to get you up to par because we don’t like the fire drills, you know, and that’s what we experienced year, end and year out. And that’s the whole reason behind, into end advisers.

[00:17:46] It’s this into end solution where we do your monthly accounting. I don’t even like to call it bookkeeping because it’s more than that. It’s monthly accounts. Working with our clients at month end reviewing stuff, reconciliation reviewing [00:18:00] adjusted trial balance is looking at internal controls, looking at the chart of accounts so that when we get to year end, right now, we should have most of our partnerships, our escorts, and everybody done on time.

[00:18:11] So we go from the start of doing the monthly counting all the way to the end of we’ve got your business taxes. And then we turn around and do the individual taxes. We try to keep everything under one roof and not just. This year end, Hey, please do my taxes. And it allows

[00:18:27] Bryan Fields: you to be aware of situations before they incur, because you know where you’re looking, right.

[00:18:32] If there’s a gap in certain areas, you know, going in this is going to be likely a harder, a

[00:18:36] Wes Campbell: harder area. I’ll give you a perfect example. So a lot of clients will go out. Maybe they have some liabilities that they own. So all of a sudden they’re going to try to sell it dispensary. Well, when you sell a dispensary, that’s a taxable event.

[00:18:52] When you started that dispensary, do you think most people keep a list of all the money they put in that tells them what their [00:19:00] basis is for that business? How much money did you put in? So when you sell it for a million dollars, how much was it worth? How much gain do you have Right. And, and people don’t look at it this way because they’re focused on, I need to get money.

[00:19:14] I need to sell this. You know, they, they want to fix one thing. And, and as the accountants and the people that have studied this for years, we go, yeah, that’s one piece of the puzzle, right? Like you’re looking at your cash account again, and I’m sitting here going, what’s the balance sheet, say, what’s your income statement?

[00:19:31] Say, you know, what did you do the entire year to get to this point? Now we’re at tax season, you’ve sold a business and you have no idea what your basis is. We encounter these things every single day. And especially, you know, you look at med men, you look at cookies and a lot of these other bigger, you know, cannabis companies, they have the capital behind them to be able to pay advisors, to take care of stuff.

[00:19:57] When you’re talking about the company doing [00:20:00] five to 15, They don’t have that wiggle room, you know, a hundred thousand dollars effectively in some of them is what we see. It’s always this cashflow crunch that’s coming on. So we’re always telling our clients, call us, let’s start talking, you know, am I picking up the books from somebody who doesn’t know what they’re doing?

[00:20:18] And that’s what we do on a regular basis. So there’s just, this, it’s always a moving target. Right? And, and so to us, it’s just like, come on, call us, let us get in there. Let us start advising you. Let’s work out a way that’s cost-effective for you to have us involved in don’t make the mistakes we’ve seen about that.

[00:20:36] Kellan Finney: I have a question. Is there any other tools that you recommend Wes, that could help kind of jumpstart then if they’re looking to reach out to you, I know QuickBooks is probably one, right? But is

[00:20:47] Wes Campbell: there anything else? QuickBooks is funny because you know, everybody gets sold on, oh, it’s so easy. You know, you can, you see the commercial?

[00:20:55] You can do QuickBooks self-employed it’s no big deal. It’s actually a [00:21:00] pretty sophisticated tool when you really start digging into it and looking at journal entries, reporting, you know, it’s one piece. The other thing we talk to people is document retaining. Are you using something to save all your receipts, all your invoices, whether it’s a Hubdocs we use smart bull.

[00:21:19] So with a lot of our clients, you know, they have a link to their smart belt where they can upload all their monthly reporting stuff, receipts, anything for their taxes, you know? Any type of technology we can use to streamline us getting information and communicating with our clients. We are going to use, you know, we want to get away from the days of tons and tons of paper.

[00:21:41] The hardest part is you’ve got to play on that when you’re already in, you know, 20, 22, trying to do another 15 million in revenue and you don’t have these things set up and you call us well, now we’re already behind the box. So, yeah, we want people to use QuickBooks. We want to use a fathom, which [00:22:00] is a reporting tool that connects to QuickBooks.

[00:22:02] We have companies right now that are using district, which is an inventory management system. Shout out to the district people as I’m giving them a plug you know, same thing with QuickBase, you know, they’re, they’re, they’re all these different apps that can be connected to QuickBooks, but QuickBooks has only one.

[00:22:18] What about these entities? We have a CBD client right now. They probably do over 15 million in revenue. They actually have an entity in the UK. How do you actually consolidate that into their QuickBooks? Right? What, what is actually going on now? The sudden you’re using a different currency? What are you doing?

[00:22:39] You know, as these companies evolve over time, it become more sophisticated. That’s where you need someone like myself that has that big four accounting experience. That’s audited, public companies. You know, one of the things we always tell our clients, and I don’t know if you guys remember Enron, right.

[00:22:55] That failed, lost everything. And that’s where Sarbanes-Oxley. [00:23:00] And it was all about internal controls. And I’ll tell you what internal controls documented and walkthroughs controls testing is some of the most vanilla work you could possibly do. But when you came up through public accounting doing it, you realize how important it is.

[00:23:16] You realize that understanding your different processes, remanence of receivables, purchasing the payables, the inventory system, the financial reporting system, all of these things need to be addressed. Understood understanding the accounting workflow of everything so that when we produce a report at month end quarter and year end for taxes, that we know this information is complete and accurate, right?

[00:23:43] And, and, and now I’m talking about these companies, these public companies like Pfizer, or, you know, that have billions in revenue yet we’re dealing with cannabis companies that only do 15, 5 million, maybe a couple hundred dollars. It’s almost like trying to, it’s like the three of us trying to plan an NFL game [00:24:00] and we’ve never trained and we’re all well, under six foot tall or something, it’s not going to work.

[00:24:05] Right. So we’re always encouraging people to call us. Let’s discuss where your needs, if I can do stuff for you to get to that end result and make sure you’re compliant. I’m not going to come in there and say, we need to do a full blown analysis and it’s going to cost you $250,000, or I need $500 an hour, but if you’re ignoring it and you’re not looking at it, it’s only going to come back and hurt you in.

[00:24:32] Bryan Fields: Yeah. Time is not your friend in those situations because when they make those desperation calls, there’s an urgency attached. And when you need something done, you know, two weeks ago, and you’re still juggling all your other clients that you deal with on a monthly basis that you feel good about going forward, you know, you’re going to have to put them to the side and for that, that’s going to be a resource.

[00:24:52] You know, that’s going to be resource tax. So my question to. State to state challenges, right? Not everything is the same. Each state has different challenges. So if your [00:25:00] business is in one state and then you, you start doing business in another state, are there additional loopholes or additional

[00:25:05] Wes Campbell: challenges, always challenges.

[00:25:08] And, and I’ll bring up California. I mean, just excise tax in California and how the middleman is collecting that. Right. And in California, you have a lot of big players there. So a lot of smaller companies have to get. Now all of a sudden, you’re given 30 days, you’re impacting your cashflow. California’s in the tutorial for taxes and how much they charge people.

[00:25:29] I’ll give you a simple example. Just if you set up an LLC in California, you have to pay an $800 fee every year. Just to have that, LLC, you may never do any revenue or nothing, but you have to have that LLC. Whereas in Colorado, that’s not the case. But in Colorado, you also have headcount tax. So it’s only four bucks, but do you think most people realize they need to be paying $4 per person?

[00:25:55] Even when they’re a partnership let’s flip over to Florida, Florida is great [00:26:00] right there. Isn’t it. Freaking individual tax there for people that are in Florida. And so we get these clients that start trying to play the state game, right? Like, oh, well, we’ll incorporate in, in Florida. Well, you know what, though, if you’re making your revenue in California, you got to follow the taxes there.

[00:26:16] It’s where the stores come, where the source income is. Right. So there’s just a lot of misinformation. And quite frankly, with end end and my business partner, John Lai, who’s also a CPA. Being able to collaborate with individuals that have the education, our clients, whether it’s me reaching out to my PWC network to talk to partners that I know about different challenges, we have no matter where you operate in cannabis, you’re always going to have state to state challenges on top of federal.

[00:26:47] I mean, you’re in cannabis. You can’t go back. You know, you, you can’t use, you know, bank of America that the banking system that’s set up. You know, you already have one hand behind your back and you’re [00:27:00] trying to get to with legal entities with, oh, they’re never going to know, or we won’t get picked for all.

[00:27:06] All of that is the unknown right now in cannabis. Right. We’re still, who knows three years, five years away from federally regulated and, you know, cannabis where people could actually get the advantages like a Pfizer does, you know? So just because you’re a multi-state operation, it only means it’s going to be tougher, more challenges, more convoluted, where you are.

[00:27:29] Us to come in and we need to be talking with your lawyers. You know, we’re, we’re a group here we’re, we’re trying to help each other. We’re your advisors. We’re one big team.

[00:27:38] Bryan Fields: Does any federal change influence accounting status for cannabis companies? Is there an event on the horizon that makes the biggest difference for cannabis

[00:27:47] Wes Campbell: operators?

[00:27:49] I mean, I think everybody’s waiting for it to become federally regulated, you know, federally illegal. That would be. The biggest blessing. I mean, I know right now, you know, another [00:28:00] topic we haven’t come up on is everybody says, oh, we’re going to go public. You know, that’s, that’s always the big, you know, sexy, oh, we’re going to go public going public costs a lot of money.

[00:28:11] And you now have a whole new set of rules. You got to follow not to mention you can’t do that in the United States if you’re touching the cannabis plant. Right. So what you’re seeing is is these companies that. Go public on the OTC or something. And it’s all non plant touching businesses, whether they hold the IP, whether it’s just machinery and equipment, you know, they’re, they’re trying to play this game.

[00:28:38] And then up in Canada, they’ll go public and have a shell. Right? So the big thing on the horizon is when we can, all of a sudden open the capital markets to cannabis and people can go through. But we always tell people at the end of the day, go talk to Elon Musk. I mean, Tesla went public and I think every single day he wishes it was private [00:29:00] because you have more leeway to do what you want because you don’t have to follow what the sec said.

[00:29:06] You know, there aren’t as many restrictions. So as far as what do I see on the horizon, I can send you to see challenges. I continue to see the market mature. I think you’re going to see more banks try to get involved. But until it’s federally legal, it’s still the wild west out there.

[00:29:24] Bryan Fields: So just one quick point on that.

[00:29:26] Elon Musk. Oh, sorry, Kelly. Just on your side.

[00:29:29] Kellan Finney: I was just going to, I was wondering if safe banking would affect two 80. I’m not familiar with that. It just does say banking. This allows banks to invest without

[00:29:37] Wes Campbell: risk. Right? Well, the thing is with banks, you have to look at, you know, for instance, in Colorado, you get some of the smaller, more regional banks, like partners that will go into cannabis.

[00:29:48] Right? You’re not getting the same comfort that you would as far as being a non-cannabis company in the banking realm. A lot of these banks only have a couple of [00:30:00] accounts. Right. And what ends up happening is they kind of bring everybody’s money in and then they’re just, it’s called restricted. Right.

[00:30:07] They allocated to their different companies that their service, but that’s the biggest hurdle right now is you can’t go to these JP Morgan chase bank of America and put cannabis money in there. Not to mention, I mean, anything over $10,000, you need to be doing an 8,300, you know, I mean, it’s getting even more restrictive.

[00:30:29] I mean, look at crypto, look at Yeah, I think there’s, there’s laws out there right now where they’re looking like, anytime you do over $600, right. Which is the threshold for a 10 99, they wanna, they want you to report that there’s still so many risks and there’s still that black market out there that the us government’s afraid of that they’re always trying to track and understand because of the Monday laundry, that’s the biggest issue.

[00:30:54] And let’s be honest. I mean, a lot of people in cannabis came from the black market to [00:31:00] begin. So you still have people that have operated outside of the legal way for years, trying to kind of do the same thing and be compliant. It’s even additional risk because they don’t understand the big plane.

[00:31:13] Bryan Fields: I think when it gets rescheduled, I think, I believe so.

[00:31:16] Let us know if I’m off there, but I think that’s the last thing I read is if they get rescheduled, then cannabis isn’t federally illegal. And then two, he gets removed. But from what I’ve read, the government obviously likes their two 80 tax, right? Because my God has had a nice check to come, but the IRS has made their statements.

[00:31:32] They don’t want to get these, these large cash payments and it’s, it’s harder for them. And I don’t think with their, let’s say slow moving pace. They don’t need it to be any harder for them. They need it to be.

[00:31:42] Wes Campbell: And, and, and, you know, that’s what we’re all waiting for. And you know, you, then now we’re diving into politics, right.

[00:31:48] Then you’ve got to wait until mid-March. So where people sit there and get aggressive and they go, oh, well maybe it’ll be a year or two. You’re probably a full election cycle away before it’s really picked up. And I mean, I’m [00:32:00] from Indiana originally. And Indiana is one of the states. Like, I mean, when is that really going to be federally?

[00:32:06] Well, when they figure out that I can drive to Illinois or Michigan again, get my cannabis and bring it out. You know, like, I mean, everybody’s going to continue to do that, but I mean, think about it. Do you add, let’s say a pound of marijuana and you drove from Denver, Colorado to Indiana Indianapolis.

[00:32:21] You’re running the risk in these states that you can get arrested and put into jail for years yet in Colorado, it doesn’t mean. That’s it, you know, it just wild world. Oh, it’s a very interesting dynamic and being the accountant that I am, you know, we love that detail. The devil’s in the detail, the more compliance is out there.

[00:32:41] The more you guys are gonna need us, you know, just because I have this incredible talent that I can read. IRS guidance puts most people to sleep, you know, but that’s just 20 years of experience in understanding how things and move. You know, when I was in public, I mean, one of the largest transaction I ever did was with.

[00:32:59] [00:33:00] We carved out two business units essentially. And one, we sold to Nestle for $9 billion. The other, we took public on its own. It took us a year and a half. So as you know, the rules continue to evolve and companies, you know, want to go public or get bought, you know, all these accountants and lawyers and everybody else.

[00:33:21] You need us in there now, you know, one of the first questions we always ask with our clients is what’s your exit. Yeah. Well, where do you go? Where do you want your company go? Do you want to sell it one day? Do you want to give it to your kids? You know, what’s the play here and that’s something, most people can’t even answer to us, but we have to be brought in early so that we can start partnering with people and helping, you know, mitigate risk and educated, educate them at the same time.

[00:33:46] Bryan Fields: And I’m so glad you brought that up because we’ve had a ton of conversations with operators, whether they’re plant touching or not. And we asked them the same thing, you know, what’s your exit strategy? You’re like, oh, I’m going to get. You know, I want to get bought and it’s like, great. But then you need to have clean books because [00:34:00] someone’s not coming in to buy a multiple on a, oh, I trust Kellen.

[00:34:04] He’s a good guy. I’ve known him a long time. He says we’ve made 2.5 million for the last three years from now. For sure. We’ll pay three X that like, that’s not how this

[00:34:12] Wes Campbell: works. We actually already, w we picked up a new client. It was July. I want to say 2020. And their first thing, they came to me, they said, oh, well, we need to get.

[00:34:23] And I said, well, when do you need the audit? They’re like three months in three months. We gotta be ready. Do you think that audit ever really occurred? No. They already had two years, year and a half of some other bookkeeper doing the book. They went from cash basis, accounting to accrual basis of accounting, which is a switch just to easy switch.

[00:34:41] You know, when you start analyzing stuff and, and you’re looking at them going, by the way, your audit, you need two years of a balance sheet. Most likely you’re going to need a couple of years of the piano. And if you’re you have no control, so they’re going to detail, test everything on top of it.

[00:34:55] You’re going to pay for that audit and you might not even pass it. So what happens if you [00:35:00] don’t pass it, you just spent, you know, 300, $400,000. On getting an audit, which is literally, you know, two pieces of paper paragraphs, you’re looking for an unqualified opinion, go through all these audit procedures and then you fail and nobody’s going to buy you.

[00:35:15] Like, that’s why we come back to people. And we say as much as you don’t like me to say processes and internal controls, that’s where the foundation is. That’s where people need to understand when you make a sale, what is happening? How does that one sale, all of a sudden get into your financial. What controls are in place.

[00:35:33] You know, the beautiful thing of me and my business partners, we both were auditors’ right. I know what they’re looking for. I know how to do all the tests. I did that so many years. It’s great experience to advise our clients, but again, it’s almost, you don’t have to be perfect, but you got to know that the books are fairly clean to pass that on.

[00:35:55] Otherwise, you know, we did due diligence. I think if it’s installed and it was [00:36:00] me versus seven consultants and we hold our own, but they were never going to pass the audit. So we got rid of the audit. Then they’re looking at doing a merger or other things, you know, another way to acquire this company.

[00:36:12] Well, at the end of the day, they could never truly understand, did this company actually make money on the products it produced and sold, and that nix the entire. So you just spent months trying to get a deal to go down and like you, like you said, Brian, oh, we’re worth 30 million now. You’re not worth 30 million.

[00:36:33] Cause when you go through due diligence and especially in audit, the people looking to acquire you or merge with. They want that number to be as low as possible. So as possible walls, clean as possible, and that’s where the value comes. Right? We, we usually try to talk with our clients and say, look, this is a two year partnership.

[00:36:51] It takes two years to get clean books and it’s going to cost them money to do that. The more you listen to us, and the more we [00:37:00] kind of put this broad range of everything that you need to do, it’s not. I’ve got a problem. I need you to call the IRS, but this is an everyday thing that you need to be doing.

[00:37:10] So how do we get there? And the solution is you fix the processes so they can go forward. And then you turn around and look back. You know, I have clients that get into QuickBooks and they don’t even know where to put, you know, they put everything on cash in hand. Yet you got a bank account. They just don’t know how to use it.

[00:37:26] And unfortunately, being that accountant, you just shake your head. And, you know, I always say, I don’t want to cuss on this, but you know, if you mess up your books, I can UNMIS them. You know, I can get you where you need to be. But as far as, you know, if we want to test revenue and I walk out and I’m going to select 55 different revenue transactions to tests, I do.

[00:37:49] Non-statistical. Well, any one of those that doesn’t tie out one-to-one it makes sense. And that audit procedure, all of a sudden, I’m an extrapolated across your entire population and you might [00:38:00] have a material misstatement, therefore we’re not going to give you an unqualified opinion, which is what you need in order to potentially get sold to somebody.

[00:38:07] Bryan Fields: Yeah. It doesn’t work where you’re like, well, west just don’t look in that closet and we won’t have any issues. It’s like, well, that’s not really how this is going to work, especially because I think like, as outside. Companies want to kind of come into cannabis and they look to scoop up, right? We’ve already seen the beginning of, of massive mergers acquisitions.

[00:38:23] They’re going to want to see clean books and they’re not going to accept well, you know, that was Charlie’s job. He hasn’t done such a good job for our last couple of years. He’s just a bookkeeper. Like that’s not going to work for some people. So then I think what happens in some cases that’s not the right partner.

[00:38:37] They might move on and pass because time is going to be of the essence when it’s time to move on. I guess west my question to you is how big or how small of a company would be best to utilize the services

[00:38:48] Wes Campbell: like yours. So we have clients that range from anywhere to $300,000 in revenue up to well over 15 million.

[00:38:57] With our experience, we are always [00:39:00] happy to work with those that are, you know, I kind of always tell people, once you start hitting 20 million, plus you’re probably outgrowing quickly, right? You need to look at. Product in order to do your accounting prior, full blown ERP system, you know, we’re comfortable in the couple of hundred thousand up to about 15 million.

[00:39:21] That’s our sweet spot right now, but we also have the experience when we get kind of away from that into end playbook, where, you know, we do the monthly accounting, we do your business taxes, individual taxes. We also compliment that with the fact that. I come from a capital markets background and audit background if med men or a cookies needed somebody with my expertise.

[00:39:43] Yes. I have the staff behind me to do the a hundred thousand to 15 million. I can still go out and do that consulting, you know, so we try not to limit ourselves, but if you were asking me a sweetie, Probably a million to 15 million, you know, at any point in time, I’m [00:40:00] happy for a company to call me and just, let’s do 1530 minutes just talking and see if there is a way that we can help you or give you some insight and see if this is the right fit.

[00:40:09] You know, I’ve been very blessed that we don’t really go out and look for clients right now through the work we’ve done the last five years, word of mouth, you know, usually there’s more out there than we can. Specifically handle. So that’s where we try to talk to these new clients to understand what the looking for, to see for the good fit.

[00:40:30] You know, w when you start out, you’re going to take anybody, you know, you’re just looking to generate revenue once you’ve matured. Now we can be a little selective. And one of our biggest things with our clients is we need you to collaborate with us. We need to be talking, you know, weekly. We need to understand what your goals are, what are your exits, you know, really that smaller, you know, not, I don’t need the a hundred million dollar company.

[00:40:53] If I’m going to be doing over a hundred million or the big, you know, corporate med men. Those are going to be purely [00:41:00] consulting hours just because of my background. So hopefully that answers your question. I kind of rambled a bit. No, I think

[00:41:06] Bryan Fields: that’s perfect because I wonder what, like, if someone was listening to this, like, oh no, I’m not a good fit for west is end to end team because I’m too small or too big.

[00:41:14] I think the important takeaway is that, like, this is something that most don’t really want it. Yeah, but always kind of neglected and it ends up being a problem later on. So the sooner you kind of get in front of it, because it’s not putting, you know, duct tape on a leak, it’s fixing the leak and then figuring out how to go forward with a successful solution.

[00:41:33] Wes Campbell: Well, and it’s, it’s more than just one month. We’re there with you every single day.

[00:41:40] Bryan Fields: Yeah. Things have to go in the right spot or also you just got a mess. So since you’ve been in the cannabinoid industry, what has been the biggest mistake?

[00:41:46] Wes Campbell: I think the biggest misconception is that they make a ton of money.

[00:41:52] You know, you, you tell people I’m in the cannabis industry and they say, oh, that means they must be making money, hand over fist. It’s like, no, it’s [00:42:00] tougher than that. You know, I’ve seen people that go out, they get $10 million. Next thing, you know, they’re buying farms in California and you sit there and you wonder, you didn’t realize in October and September, September, October, that outdoor harvest was coming.

[00:42:15] Now, all of a sudden you have 40 to 80,000 pounds of cannabis in your warehouse and you can’t get rid of it. You know, most of the companies, if they’re not looking forward and understanding what the books and all the different reporting we can do with them, They don’t have $10 million sitting in a bank to cover the challenges that creep up.

[00:42:37] You know, one of the things we try to tell our clients is I want to see three months of operating expenses in your bank account as a, you know, just to make sure you have that stop gap right now, when big players come in and undercut the pricing for cartridges, like we were talking about earlier, the little guys feel that.

[00:42:57] They need every [00:43:00] $10,000 in that bank account to make payroll, you know, if you feel comfortable, don’t because it can change in a second. As we’ve all seen in the industry, new rules can come out. What if you get picked for. You know, what, if somebody’s looking at your legal entity set up and you know, what, what if the IRS, the tax court actually makes a ruling that all of a sudden impacts your structure?

[00:43:21] You know, we’ve got to be risk averse and plan for the unknown. Those are the biggest things, and it’s not this free for all, all of a sudden, everybody just has boatloads of cash. You know, that’s the biggest misconception in cannabis. I’ve seen more companies go under than those that have been successful.

[00:43:39] Let’s just put it.

[00:43:39] Bryan Fields: Well said before we do predictions, we ask all of our guests, if you could sum up your experience in a main takeaway or lesson learned to pass onto the next generation,

[00:43:49] Wes Campbell: what would it be? Call us, call us and, and talk to us. I’ll give you 30 minutes. I’ll give you an even up to possibly an hour.

[00:43:58] Let’s talk about what’s on [00:44:00] your mind. Cause I guarantee you I’ve got five to six different things you didn’t even think about and you just had to. Make decisions and deal with day-to-day operations and you, everybody puts the accountant kind of on the back burner. They always think, oh, just taxes. None of we’re there every day with you and coming from our backgrounds of public accounting, you know, we’re used to working with billion dollar companies, you know, I know what it takes to go public.

[00:44:27] I know what it takes to be a $70 billion company. So call us that’s the biggest misconception. Don’t wait, talk to us.

[00:44:35] Bryan Fields: That’s a well said. No, one’s a use of that question. As a sales pitch, I had tip for you when to put a bed prediction time. West is two 80 E making a wider gap between large operators and smaller operators, or is it the same challenge for everyone?

[00:44:53] Wes Campbell: I think it’s the same challenge for everyone. I think the smaller operators. More difficult time because they don’t have the [00:45:00] same resources. They don’t have the same amount of people working there or expertise in house. You know, a lot of companies we run into, if you have a CFO, you should probably have five accountants per every one, CFO.

[00:45:11] It’s usually the opposite. They have a CFO and no accounts, you know, like that’s kind of, you know, and it freaks us out because nobody wants to talk accounting. Everybody calls us a bean counter and all this other stuff, and we always want to put our hands up and go. No, we’re actually the most important piece that you guys are not using.

[00:45:30] Give us a call so we can help you maneuver so we can help get your reporting up to speed. So we can tell you all these lovely things we learned over 20 years, that most people don’t even want to read about.

[00:45:41] Kellan Finney: I mean, I agree with glass. I think that strictly it’s a resource thing. I also think that with a lot of like smaller startup. I think that the entrepreneurs associated or the founders associate with those startups tend to kind of overlook a lot of these like more simple aspects of running a business.

[00:45:59] Right. And so [00:46:00] like bringing in accountants, having a CFO, like those kinds of things kind of are probably overlooked a lot just from starting a company. Right. Like it’s hard to be like, I’m going to go hire a high-class CPA internally and an in-house lawyer. Like you just don’t have the resources for that.

[00:46:15] And so just because of that, I think. You’re at a disadvantage when you go toe to toe with like a large MSA, who’s got massive amount of capital behind them and resources, and they’re able to go forward multiple accountants and CFOs internally that can just alleviate a lot of the issues down the line from a

[00:46:32] Wes Campbell: tax perspective.

[00:46:33] And one of the beautiful things I try to tell people is, you know, I went out on my own. I started my own company. I got a PhD and small business, even though I’m a double major finance accounting with. Decades of work experience. You know, one of the biggest things that we come across is payroll. I mean, payroll is one of the biggest pain in the butts.

[00:46:53] All the reporting deposits, you know, people say, I want to do it myself. I’m like, no, you don’t, you absolutely don’t want to do that [00:47:00] yourself. Pay paychecks. Right. I learned really fast too, as an, as you know, on my own, I need. I don’t like a people. I wish I could keep that money in my pocket, but I can’t do it myself to see the growth from five years ago with zero clients to now we service over a thousand tax returns.

[00:47:17] You know, we probably manage over a hundred million in monthly accounting services. You know, these companies that are growing, I’ve been through the gamut that everybody else has seen in cannabis. And I would love to talk to people and give them that expertise. And as you guys can probably tell, I love to talk, you know, doing all these, you know, different projects.

[00:47:38] You know, when general motors came out of bankruptcy, I actually was a manager with PWC based in Zurich. They sent me down to Nairobi, Kenya to clean up the plant, you know, so they could float the stock again. You know, we have this mix of small market, started your own companies. See those challenges to all the way, you know, to publicly [00:48:00] traded companies, whether it’s in Europe or whether it’s on the sixth and Switzerland to the New York stock exchange, we have that breadth of expertise.

[00:48:08] And we continue to expand that we have, I think we’re 13, 14 in-house employees and two partners on top of I have fractional CFOs. I’ve got a valuation guy. We work with all the time. We are trying to have every arrow in the quiver to help these clients succeed. And even if we have an initial conversation and you’re not ready for us.

[00:48:30] I will put time and effort into building that relationship to be there, to make sure they understand the risks and the big pitfalls. And if that means it’s a year until we get that business, or let’s say we started a very, very simple monthly rate. We’re happy to do that because the value we bring, you’re not going to get with just having an attorney with having somebody who thinks they know Quip, you know, we’ve been.

[00:48:56] All over the spectrum with public companies, a small businesses to [00:49:00] starting our own. We have all these lessons learned and we just want to share it with everybody. So I like

[00:49:05] Bryan Fields: your name and Dan really well done from marketing sense. I’m going to, I, I, I guess I didn’t ask the question correctly, but I think we’re all in agreement that I think the longer the two 80 E continues on it widens the gap between the big operators and the smaller operators.

[00:49:19] Because I think as you continue to play the game like this, the bigger guys are figuring out ways where it’s not killing them as bad, where the smaller operators might be struggling. As the time progresses, that kind of gaps separates. And then when two 80 does get removed, I mean, talk about like a cashflow standpoint, how much more things will just change.

[00:49:39] It’ll just be like an

[00:49:40] Wes Campbell: unleashed. Sure. It’s going to help everybody not feel the constraint or, you know, you not paying taxes on Phantom income that they never saw. You know, that’s going to be huge. And that jumps into the whole there’s part of what we probably haven’t touched. What’s your setup? What type of legal entities do you have?

[00:49:57] Do you want to be a C Corp? Do you want to be a [00:50:00] partnership? You know, a lot of people went to this whole management company route. We’re going to set up an LLC. That’s going to be a management company, so it doesn’t fall under 2 88. That’s great. However, the same two people in the management company are actually the two owners of the dispensary over here, substance over form.

[00:50:16] Doesn’t hit, you have to be structured the right way to take advantage of the. I don’t want to say tax breaks, but you know, we always say you want tax. What is a tax avoidance, not tax invasion. Right? But again, we’re back to planning. Think about this before you’re involved. Before you set up that LLC, give us a call.

[00:50:36] Let’s discuss it. You know, our clients right now want to go out and raise money. They don’t want to pay a lot in taxes. Well, those two things go against each other. You’re telling me you don’t want to pay taxes, but you want to raise money. So you want your net income to be as high as. Does it make sense to be a C Corp?

[00:50:50] Well, if you’re a C Corp, I protect, you know, that tax doesn’t go to you personally. Now it’s going to the business. So there are all these different ramifications and you can talk to a bunch of [00:51:00] attorneys, accountants, and everybody kind of has a different take on what the. Structure is to me. It’s let’s just start the dialogue.

[00:51:09] Let’s understand where you at, what you’ve done, how do we move forward? How do we make sure to eliminate you pain, unnecessary taxes and cash out of your bank. Those are the biggest pitfalls we see with everybody. You know, I have multiple clients that are so cash strapped. You feel bad when you’re sending them that bill.

[00:51:28] And you just think, gosh, if we could hit the reset button and go back and start over when you have $10 million. This would be a whole different ballgame.

[00:51:36] Bryan Fields: Yeah, it’s really well said. So for all those out there that are listening that want to get in touch west, where can they reach you?

[00:51:43] Wes Campbell: You can go to our website into an advisors.com.

[00:51:48] We also have. Phone number out there. It is area code 3 0 3, 6 0 4 8 2 2 5. Extension 1 0 1. That’s me. I’m going to say, you know what, Brian Callan, they [00:52:00] can email you guys and say, can I talk to Wes? And you can give them my cell phone number. I am careful you be

[00:52:05] Bryan Fields: careful with that requests. You might be getting blown up.

[00:52:07] Wes Campbell: No, it’s, it’s, it’s funny because you know, we’re in Denver, we’re in LA from my time overseas, I actually have a partner based in the UK who we work with, you know, we’re, we’re looking to expand into the international market to take advantage of my experience with ifrifrst and you know, all these pharma companies were a big part of my experiences.

[00:52:29] You know, we want to continue to grow and be this boutique firm. That isn’t like the middle market or the big four accounting firms that you know is charging you $600 an hour and has 18 people on the engagement. Now we want to be the boutique firm that can come in and advise our clients to make the right decisions and start thinking about things that they, they never wanted to.

[00:52:51] They’re looking at how do I get enough money in my bank so I can pay my payroll. That’s where you need to call us. They can call me. Anytime they can go ahead and hit the [00:53:00] website. Our email is [email protected] as well. Like I said, if they want to shoot you an email, I am always open, always on.

[00:53:09] We learned to work the 12 to 18 hour days, seven days a week in public accounting. And we still do that. Take advantage of

[00:53:15] Bryan Fields: that free consultation. I bet you every single person listening here has at least a question that they can shoot over. It’s free information that likely put you on the path to being better than you were before.

[00:53:26] Wes Campbell: Oh yeah. And we’re like right now, it’s January who needs tax returns done. It would be

[00:53:30] Bryan Fields: February when this drops. So if everyone was like, damn, and I lost that a month, it’s one less month than when you’re hearing this

[00:53:36] Wes Campbell: beautiful thing is, is I have my business partner, John ally, who, who leads up the tax department with everything else.

[00:53:42] So, you know, I can work. Everything prepped to send over. I do a lot of integration work, a lot of quarterbacking. I can proudly say last year I did one tax return and that was my own. And I didn’t have to feel the pain of, you know, I’ve got a thousand returns plus that gotta get out. So, you know, we’ve [00:54:00] grown, we’ve evolved.

[00:54:00] We’ve got the capacity. We’re always happy to have people reach out, even if it’s 15, 20 minutes. Even if it’s a silly question, bring it on. Meet as many people as I possibly can. Awesome.

[00:54:11] Bryan Fields: Yeah. Well, when you get all up in the show notes and we’ll push everyone to hit you, your cell phone, the middle of the night.

[00:54:16] Thanks so much for your time, Wes. [00:54:17] Wes Campbell: You’re more than welcome. Thank you so much. You guys.

Share and Enjoy !

laptop-img
Get In touch With Us

Action-Oriented problem solvers ready to go

One Report Once a Month Everything you Need to know

From executive-level strategy to technical know-how, our actionable insights keep you ahead of the pack!