Let’s be honest. We’ve all had high dreams about Willy Wonka-like confections that we’d love to try ourselves. Or, now that edibles are legal, wish an edibles manufacturer would make. In 2023, the chance of that dream becoming a reality for everyday consumers, professionals, and cannabis admirers, is greater than ever, especially in California.
California is one of the most established, and advanced US cannabis markets, that offers unique market entry opportunities through specialized licensing. That means starting an edibles business in the state can take not only less time but also less capital.
Ready to put your money where your mouth is and eat up the chance to start an edible company? Then you’re in the right place! Keep reading for our first edition in our series on how to start an edibles business in California in the simplest and most seamless way possible.
Starting an Edibles Business – Step by Step
Let’s waste no time and get right into our step-by-step guide on starting an edibles business in California.
#1 – Research markets
Researching the market you’re about to enter is critical for any new product or business, but even more so with cannabis due to its fast-paced nature. For instance, in the past two years, we’ve seen a trend toward an increase in solventless cannabis goods. In addition, consumer preferences are trending toward consumables that don’t need to be inhaled because of health concerns or other problems.
For edibles specifically, vegan, gluten-free, and specialty goods, like fast-acting effects, are just on the cusp of rising in sales and should all be considered when you’re learning how to start an edibles business, especially in a health-conscious market like California.
#2 – Create a business, funding, and licensing plan
The next step is similar to starting any other type of business, outside of having to become licensed to manufacture and sell edibles. To learn more about what you’ll need in a business plan and for funding and licensing to start an edible company, check out our in-depth guide here.
As for funding, it’s important to note that because cannabis is still classified as a Schedule I drug federally, not all traditional lending options will be available. Luckily, as the industry has legitimized itself over the last decade, there are now more available loans and funding sources for starting a cannabusiness than ever before.
In regards to licensing, California is unique in offering a Type-S license that allows for contract cannabis manufacturing or shared manufacturing opportunities. Another streamlined market entry point is cannabis white-label or private-label goods, which has its benefits for new cannapreneurs, too.
#3 – Selecting ingredients
When you’re starting an edibles business, it’s likely that you have one, or a small collection of products, in mind based on your market research and business plan. The next step in making that a reality is selecting the ingredients that will best support that unique cannabis edible.
For example, is the goal of your business to make clean, organic gummies with locally-sourced California ingredients? Then you’ll need to find suppliers and research which ones are most cost-effective for your forecasted financials.
#4 – Formulating recipes and manufacturing
Now’s the fun part! Starting an edible company will require a lengthy R&D process that tests recipes for flavor, texture, dosage, and overall quality. In this process, you’ll seek out and purchase equipment and supplies while troubleshooting all the unique quirks in manufacturing to ensure the initial recipe is all smoothed out before heading to mass production.
#5 – Packaging and labeling
If you think it’s even more fun and games when you’re done manufacturing, you’d be wrong. Not only are there strict rules for getting a license and making edibles, but the packaging of the products is just as scrutinized. Here’s just a glimpse at some of the state’s Department of Cannabis Control (DCC) requirements, which we’ll go into more in-depth in the second part of our starting an edible company series –
Cannabis packaging must be –
Resealable (if more than one serving)
Opaque (if an edible cannabis product)
For labeling, there’s an even longer list of requirements that must all be adhered to before going to sale. Back to thinking about what kind of license will work best for your business: an experienced cannabis contract manufacturer can help with compliance in a way that saves time and effort and keeps your business from losing money because of mistakes.
#6 – Selling
The last step in starting an edibles company is selling the product you’ve worked so hard to manufacture. Of course, this is a step that’s easier said than done. Keep in mind that it’ll take a significant amount of legwork to contact retailers and purchasers to pitch and sell your products. This point highlights yet another benefit of partnering with a cannabis contract manufacturer, who often has ties or connections to local retail storefronts.
How to Vet Potential Cannabis Manufacturers in California
Cannabis enthusiasts are naturally creative, which is exactly why we need more of their minds in the growing edibles market. Even more, just as other retail industries are seeing trends towards consumers “shopping small” and supporting small businesses, the same goes for cannabis consumers. So, will you be the next start-up or budding cannapreneur that California is eager to support?
My Green Network helps make those creative dreams come true by supporting entrepreneurs who are starting an edible company. We’ve helped over 20 brands launch successfully into California’s market and are just getting started. Now that you know the basics of how to start an edibles business in California, take the next step by contacting our team for a facility tour or discovery call.
Come meet our team of edibles experts and explore our membership and licensing types. Learn more here, and stay tuned for more in our series on how to start an edibles business. Next topic? Compliance!
In the California cannabis industry, there are trends among cultivators, manufacturers, and consumers. From outdoor and organically grown, to solventless, to product types, there’s seemingly something “new” to pivot towards, more often than in most industries. For operators looking to maximize their business’ bottom line, it’s essential to be aware of these trends to get ahead of the increasing pool of competitors.
Looking towards 2023, the biggest trends to watch for those looking to survive the market are the lowering of flower prices and increased consumer demand for varying products. Of course, after years of hard work and millions of dollars invested in your already licensed operation, or if you’re starting out – you might be wondering, “How can I most cost-effectively take advantage of what’s ahead?”
Partnering with cannabis manufacturers in California to launch private-label cannabis or white-label cannabis is another trend that’s growing in popularity among established, and emerging brands. Why? Because without going through the traditional, strenuous licensing and start-up processes, you can have your brand’s white-label cannabis product on retail shelves before you know it.
So, to help your business and profits grow, we’ve put together the ultimate guide to the top four white-label cannabis and private-label cannabis consumables to consider producing in the coming year. Keep reading to learn all about California white labeling and how you can take advantage of its major benefits.
The Top 3 White Label Cannabis Products to Launch
As consumer tastes change, so should the products you think about putting on the market in California. So, let’s take a look at the four fastest-growing product categories available for white-label cannabis manufacturing.
White Label Concentrates
Another consumer trend is the desire for potency, which concentrates deliver. Solventless and solvent-based concentrates like live resin, live rosin, badder, and budder can contain THC with percentages in the 90% range, more than three times the strength of most flower. As consumers have become more familiar with dabbing, and concentrate consumption, sales have grown by over 40% for the product category.
Even better, concentrate prices are on the rise, with an average 7.3% increase for a gram from 2019 to 2020. It’s also important to note that consumers are seeking solventless concentrates (e.g., ice water hash and live rosin) and solventless vapes, specifically, as health concerns over non-solventless vape carts grow, too.
White Label Edibles
Again, as consumers shift towards ‘smokeless’ or healthier ways to consume, white-label edibles are another growing product category to consider. Recently, the edibles product category, led by gummies and chocolates, reported a 20.4% YOY growth in sales, more than 2% more than the total market share altogether.
Cannabis manufacturers in California with proven skills and abilities can help brands meet rising consumer demand for high-quality edibles faster than traditional routes.
White Label Pre-Rolls
In addition to potency and healthier ways to consume, consumers are also showing their love for convenience through the growth of white-label pre-rolls. In fact, infused pre-rolls deliver on two of these preferences with the added infusion of cannabis oil, which increases flower potency from 15–30% up to 40–50%.
The pre-roll category has also experienced recent growth, with a 38.9% YOY increase from 2020. Of course, since pre-roll manufacturing is the newest of them all, it’s crucial to vet a white-label manufacturer’s ability to produce quality, smooth smoking, and flavorful products. As you can lose repeat customers quickly on pre-rolls that sideburn or canoe, extinguish completely, or are clearly made with shake or trim.
Last but not least, as reported byForbes, a recent survey shows cannabis consumers are also more focused on price in light of rising costs and inflation. Meaning, it pays for brands to explore alternative product production methods like cannabis white labeling, which reduces the amount of overhead and startup costs that new brands would typically have to markup prices to make up for.3
How to Vet Potential Cannabis Manufacturers in California
Of course, if you do go the white-label cannabis route, there are a few things you should keep in mind when selecting which cannabis manufacturer in California to partner with. To help, here is a list of frequently asked questions we hear from prospective brands in regard to My Green Network’s white-label cannabis capabilities:
Do you perform packaging?
Do you have a design/branding team
What is your distribution and retail footprint?
What is the lead time to produce?
How long is your queue?
Have you made this product before?
Can we watch you make the product?
For the utmost success in launching a California white labeling collection, be sure your cannabis manufacturer in California has the experience, retail connections, and compliance expertise to avoid any potential issues that could affect the sale of your product.
Overall, white-label cannabis market entry lets brands put more time, money, and effort into the successful launch of their product, while manufacturers simplify the complicated work that goes into making a top-quality product.
California White Labeling for Cannabis Trends
If you’ve perused the California shelves recently and wondered, “How did that brand grow so quickly?” The answer could just be California white labeling. One of the biggest benefits of white-label cannabis manufacturing, beyond its cost savings, is the fact that consumers are most often none the wiser.
With your brand’s label on the outside and high-quality cannabis on the inside, brands can now expand into different product categories without hurting their reputation or credibility and reach a wider audience of consumers.
Interested in becoming the next brand to take advantage of California white labeling or private label cannabis business growth opportunities? Schedule a tour at My Green Network, the premier cannabis manufacturer in California, which offers unique market entry points for out-of-state, out-of-country, in-state, established, or new cannabis entrepreneurs.
Learn more about our facility and offerings, or get in touch with our team now!
The cannabis industry as we know it today is still in its early stages. Even though recreational or medical use is legal in the majority of states, the industry is ever-evolving and expanding. That includes increased market entry points through long-established practices like white labeling.
White-label weed products are the latest trend among manufacturers, current licensees, and aspiring entrepreneurs who want in on the cash king, which is cannabis. Especially since the total US market is expected to reach $27.7 billion this year alone.
So if you’re just now considering white label vs. licensing to launch your cannabis brand, it’s likely you have a list of questions to be answered. That’s why we’ve put together the ultimate guide to the most common cannabis white label FAQs. Keep reading to learn more and for help finding a THC white label manufacturer in California to get started.
Common FAQs about Cannabis White Label California Edition
As the largest cannabis industry in the US, it’s no surprise that California is booming in consumer sales and business. If you’re interested in getting your brand on the shelves of California dispensaries and taking a share of these sales, check out these FAQs about white-label weed products as a first step.
Can you white-label cannabis?
Yes. Just like in the grocery, health, and beauty spaces, white label cannabis manufacturers exist to produce white label weed products that can be branded by others. That means gummies, pre-rolls, concentrates, oils, and more, may be manufactured by one producer and labeled as a variety of brands.
What does “white-label” cannabis mean?
By definition, white label cannabis refers to a product that’s made by a manufacturer that multiple brands can brand as their own. White-label weed products give brands the opportunity to forego the costs of licensing, setting up facilities, and manufacturing a product, which can exceed a million dollars for some. Not to mention, this process often takes over a year instead of less than a year with the cannabis white label route.
Is white-labeling legal?
Yes. As long as the manufacturer that is producing the white label weed products is licensed to do so, white-labeling cannabis is legal in California. Of course, exact laws and regulations do vary by state, so be sure to research all of the production and sale regulations before moving forward with cannabis white labeling in other regions.
What is the difference between a white label and a private label?
In conversations about cannabis white labeling, you’ll also come across the term “private label.” Private label opportunities, cannabis-wise, allow a brand to partner with a THC white label manufacturer to produce its own unique product. For instance, if you brand cannabis white label gummies with a manufacturer, you’ll only be able to choose from their catalog of white label weed gummies.
In comparison, if you decide to private label a product, you’ll have a say in its formulation, flavors, appearance, etc. This gives brands the opportunity to differ from competitors or put their own individual twist on a popular consumption method.
Is white labeling profitable?
Yes. In fact, because white labeling has lower start-up costs, it can be more profitable and faster than traditional licensing methods. Even more, this frees up time and capital to allow brands to focus on the launch and marketing of their products. It also helps to partner with a THC white-label manufacturer that has retail sales connections or support to increase early profits.
Do brands matter in cannabis?
If you’re considering cannabis white labeling, you might also be wondering: Do brands really matter in cannabis or to cannabis consumers? The short answer is yes. With so many options for similar consumption methods (think pre-rolls, gummies, chocolates, etc.), it pays for brands to stand out from the crowd.
As we just said, your team can do more to build your brand and plan for its launch and long-term success by taking advantage of cannabis white label opportunities.
What are the benefits of white labeling?
Outside of getting on the shelves faster, and having more time and money to establish your brand, there are other benefits of cannabis white labeling to considering, including –
THC white label manufacturers reduce the stress, time, and costs associated with maintaining equipment and running operations.
THC white label manufacturers control and maintain compliance, which is highly complex for cannabis products specifically.
THC white label manufacturers can supply you access to high-quality material, equipment and expertise, that might otherwise cost a pretty penny to get your hands on as a startup brand.
White-label vs. licensing: what’s the difference?
The biggest difference between white label vs. licensing is an obvious one. There’s no license for one, and there’s a long, intensive application process for the other. Traditional licensing for infused products in California, and other states, typically includes a long list of requirements like past financials, business plans, facility drawings, etc. Not to mention, licensing won’t just require an initial application fee, but once an application is approved, additional licensing fees which range from $1,000 – $75,000 alone for manufacturing licenses.
Where to Find a THC White-Label Manufacturer
With the information you’ve gained today, you’re well equipped to start your white-label weed brand development. The only question left is: where can you find a THC white label manufacturer near you?
In California, My Green Network (MGN) is the premier provider of private label opportunities cannabis-edition and white label manufacturing. We’ve helped launch over 20 brands this year alone, all with a wide variety of experience and backgrounds. From current licensees to former professionals, consumers with a dream, and budding entrepreneurs, we offer top-shelf white-label weed products to help every brand succeed!
Learn more about MGN, business growth opportunities, and more by scheduling a discovery call with our team or a tour of our facility. Or, check out our full collection of educational guides and resources to start building your cannabis business now!
After one of the Golden State’s biggest gummy producers recently received a $128 million fine for illegally producing their flagship good, California cannabis compliance has never been more crucial.
If you didn’t already know – all licensed cannabis manufacturers are required to adhere to the rules set forth by the California cannabis regulatory agency. Rules that are as rigorous as they are complex. So if you’re just learning how to start a cannabis business in California, how should you prepare to stay in compliance?
Start with this ultimate guide to learn more about California cannabis regulation with three expert tips on getting California cannabis packaging requirements, and others, right from the start.
Who is in Charge of California Cannabis Control?
The first question to answer on California cannabis compliance is: who’s in charge of enforcing regulations? The state’s Department of Cannabis Control (DCC) is charged with overseeing the cannabis market through “routine inspections and investigations.”
When a facility is found to be non-compliant, the California cannabis regulatory agency’s staff first informs the licensee of the issue and provides instructions on how to fix it. Sometimes, they’ll issue a “Notice to Comply,” which outlines the specific violations found and provides a deadline for the issue’s correction.
However, for more serious violations or repeated issues, compliance issues can become detrimental fast and subject to the following consequences –
Monetary fines – up to $5,000 per violation for licensees or $30,000 per violation of unlicensed persons.
Order of abatement
Embargo, a.k.a “preventing cannabis and cannabis product from being moved”
How to Start a Cannabis Business in California: Top 3 Ways to Stay Compliant
Mitigating risks is a large part of the entrepreneur’s process when starting a new business. For cannabis, that means learning as much as possible about California cannabis compliance before a mistake is made and it’s too late to recover. So without further ado, here are some of the top ways to ensure your cannabis business stays compliant:
Include compliance in your business plan & SOPS
What’s the best way to avoid a problem? Properly plan your operation to function with California cannabis regulations in mind. No matter what type of license you receive, every step of the cannabis production process is monitored and highly regulated through the METRC system. METRC stands for Marijuana Enforcement Tracking and Compliance, and one mistake can raise red flags.
You will want to make sure that your business’s initial plans and standard operating procedures (SOPs) spell out your compliance and METRC procedures from start to finish. For instance, California cannabis packaging requirements are highly complex. Even down to the size of the CA compliant cannabis logo, which must be at least ½ inch by ½ inch in size. At the end of production, if you purchase labels or packaging that aren’t compliant, you could be stuck with reprinting costs, product recalls, and delayed sales, affecting your bottom line.
Like taking a practice test, running your own internal audits are the best way to make sure that your facility is in compliance. These too can be outlined regularly within your operation’s SOPs, and you should also appoint a position or point person for compliance who is responsible for executing them. It can also be beneficial to bring in an outside third-party to review your processes in order to gain their expertise and ensure there are no blind spots or biases when it comes to meeting regulations.
On the same note, there should also be processes put in place to keep up with ever-evolving and ever-changing regulations. The California cannabis regulatory agency often makes changes to guidelines and requirements, and being in tune with these changes is crucial for ensuring you don’t make a mistake.
Hire an expert
In addition to hiring a professional for internal auditing, it can be helpful to hire an in-house chief compliance officer or think about other ways to get into the California cannabis market that already have compliance figured out. Partnering with an already established infused product manufacturer or cannabis white labeling and private labeling are also becoming popular ways for new brands to enter the market with less risk, reduced costs, and advanced compliance processes.
All in all, it’s not just California cannabis regulations that you’ll have to adhere to; there will be local and federal requirements like OSHA that you’ll have to plan for too. When you account for all of the moving parts and the cost it might take to monitor and stay on top of them, outsourcing production or partnering with an experienced contract manufacturer can often offer a higher ROI.
California Cannabis Compliance: The Final Word
Finding strategic partners to help your business reach its goals is another important part of starting a business. So, if you’re considering getting a California cannabis business license to launch your own pre-rolls, infused oils, edibles, or beyond, it’s time to consider whether an established strategic partner is the way to get your start.
My Green Network is the premier Type-S license shared facility and cannabis white-label and private-label manufacturer in southern California and has compliance down to a T. Co-founded by attorneys and backed by experience, the facility has helped over 20 brands launch cannabis-infused products onto the market in 2022 alone.
Be the next to snag your slice of success and learn more about the business growth opportunities that My Green Network has to offer aspiring entrepreneurs seeking to learn how to start a cannabis business in California.
Schedule a discovery call or tour of our facility with our team today!
It’s not just big-time producers with easy access to capital who are hitting the cannabis edibles shelves. In today’s cannabis market, solopreneurs and small-time brands are able to tap into the growing market just as easily. Many, getting their start in shared canna kitchens.
These innovative facilities make it possible for aspiring infused product manufacturers to enter the market without hefty start-up costs for things like cannabis kitchen equipment. In addition, to streamlining the process of receiving cannabis infusion (e.g. cooking) licenses, from the city and state in which they operate.
So, if you have dreams of becoming the next best edible manufacturer in California, this is the guide for you. Keep reading to learn more about canna kitchens, and how to find a commercial cannabis kitchen for rent near you.
What is a Canna Kitchen?
In general, a “canna kitchen” refers to a kitchen where THC edibles are made or sometimes refers to an establishment where they can be consumed. For the purpose of this guide, we’ll be discussing the term in reference to edible manufacturing since that’s the definition that’s rising in use and popularity the most.
Shared cannabis kitchens are similar to commercial kitchen spaces that caterers or small-batch producers would rent for the culinary and food industries. Of course, with cannabis, you’ll need a special license to do so, which in California is the Type-S license. This allows a Type-S licensee to make their cannabis-infused product in the facility of a primary Type-S licensee.
These canna kitchens will vary from location to location, but for the most part, they are equipped with all the cannabis kitchen equipment you need to get started making a variety of edibles. Including –
All in all, cannabis kitchens are ideal for budding entrepreneurs who just need the space and guidance to get their start in the budding cannabis industry. So, now that you know more about what a canna kitchen is, let’s learn more about how to get started on building your own cannabis cooking company.
How to Start a Cannabis Cooking Company
To start your own cannabis cooking company that produces THC-infused edibles, you should first start with a detailed business plan. The business plan should include
Organization and management
Marketing and sales
Many business plans will also include a request for funding. For cannabis, most entrepreneurs have to get a bit creative with restrictions on federal funding due to the current Schedule 1 classification of the plant. Canna kitchens, fortunately, allow entrepreneurs to enter the market at a much lower cost than traditional licensing and production startups.
When you work with a well-established commercial cannabis kitchen for rent, you also get a partner with experience who can help you navigate the complicated world of legal cannabis. For example, My Green Network has a streamlined process for METRC track and trace (which is required by the state), compliant packaging and labeling, and even connections for seamless retail or delivery sales.
That means taking your time to vet canna kitchens is also highly recommended. So, last but not least, let’s review what to look for when choosing a canna kitchen to begin your journey as an infused product manufacturer on the right foot.
Finding a Reputable Cannabis Kitchen Near Me
Like most things in cannabis, not every canna kitchen can be treated the same. Each will vary depending on their own capabilities, prior success, cannabis kitchen equipment, and other factors that will affect the quality, compliance, and sales of your end product.
So, next, let’s cover the most important things to look for when selecting a commercial cannabis kitchen for rent to use for your edible manufacturing.
Experience – Because the cannabis industry is highly regulated, it’s recommended to select a canna kitchen that’s well-versed in the regulatory agency’s requirements. Even the most minor infractions can turn into major consequences, like license suspension, revocation or hefty fines. You’ll also want to explore or inquire, on a canna kitchen or shared facility’s ability to source material, like solventless rosin that’s quickly rising in consumer demand.
Equipment – For infused product manufacturers, not just any kitchen will do. It pays to be sure the canna kitchen you select has state-of-the-art equipment to help craft the highest quality edibles possible, consistently without mechanical errors or issues. As an example, not every facility will have a sugar tumbler, or a Baker Perkins depositor, one of the most advanced gummy manufacturing machines available on the market today.
Sales – So, you have your edibles produced… now what? Some canna kitchens and Type-S shared facilities will offer retail placement support, which is incredibly beneficial for newcomers to the scene that often struggle with breaking into cannabis storefronts. Some will also offer introductions to other cannabis companies in need of white-label and private-label services.
All in all, commercial cannabis kitchens for rent are fairly new to the scene, so trust and credibility should remain high on your list of priorities when selecting which to use for your cannabis cooking company.
Canna Kitchens: The Final Word
As the cannabis industry continues to evolve, so will its accessibility and the players that can get into the game. So, why not be the one to score big by becoming an edible manufacturer in California with canna kitchens?
My Green Network is the premier cloud cannabis kitchen and Type-S facility that facilitates cannapreneurs’ dreams of getting their goods on store shelves. We help our Green Leaders with every step of the process, from getting a license to making the product, from packaging to labeling, and even with business growth opportunities like cannabis white labeling and retail placement.
If you’re interested in finding a “cannabis kitchen near me” or exploring cannabis white-label products with the reputation and experience you need to succeed, look no further. Download My Green Network’s complete guide on How to Start an Edibles Business in California now, or schedule a discovery call to meet our team and learn more!
If you’re a cultivator in California, you’re very familiar with the pain points of the industry. In fact, it’s likely that, over the years, you’ve made tweaks to your operations and expenses to squeeze out every last bit of profit you can.
While the smallest gains are nice, it’s the bigger tweaks to your strategic plan that offer bigger rewards.
So, if you’re tired of being stuck in the mud and unable to scale in the industry like you had hoped, this is the guide for you. First, we’ll review how you’re not alone, and second, we’ll teach you how to capitalize on accessible and affordable market entry points to expand production and product offerings.
The Current State of California Cultivation
Crop values are dropping, flower sales are falling, and California cultivators are facing the reality of losing even more in profits each year. As the early market experiences extreme supply and demand fluctuations that are depressing prices, some cultivators even cut back on production this year, riding it out until it improves.
If the economy wasn’t enough to combat, local law and regular regulatory changes also play a part in threatening the livelihood of cultivation operations. For example, outdoor farms in Santa Barbara County are now in jeopardy of losing land and material because of a new ordinance recently put in place due to resident odor concerns.
This means cultivators are now getting more creative than ever before to increase their bottom lines and their ability to scale. So, now that we’re past the hard truths of California cannabis cultivation, let’s look at the positives.
The Latest Moves from California Cultivators
In order to not only survive but thrive, several cannabis cultivators in the state are already working to diversify their portfolios. Here are just a few of the most notable examples –
Lowell Family Farms, known for cultivating artisan craft cannabis, now offers infused pre-rolls, vape carts, and concentrates. A move that was made to directly “enhance the value of the brand”.
Glass House Farms, a top-shelf and top-selling flower producer, recently launched infused pre-rolls and a line of tinctures.
Jungle Boys, a name that’s synonymous with elite weed, offers rosin concentrates and vape cartridges, as well as edibles.
Wonderbrett, who Leafly calls one of southern California’s premier cannabis cultivators has expanded their collection to include live rosin carts, fruit chews and pre-rolls.
Now if you’re wondering how these brands and other small-time cultivators have the cash flow to apply for additional licensing, build out facilities, and afford supplies, not all of them do so traditionally. Growers, extractors, and even newcomers are starting to use different ways to get into the market, like partnering with cannabis white-label producers in California and cannabis contract manufacturers.
So, up next, are the benefits of doing so.
Benefits of Cannabis Contract Manufacturers for Cultivators
When partnering with an established, infused product manufacturer, cultivators gain unique advantages for increasing profits and expanding their customer base seamlessly.
The top being –
The ability to turn your trim, smalls, kief, and leftover material, into profitable solventless edibles, high terpene extract (HTE) oil, infused pre-rolls, capsules, and beyond.
Access to state-of-the-art equipment that you might have to cheap out on otherwise.
Connection to a network of retail and delivery partners, you might not yet have tapped into.
Reduced stress and wasted money on costly mistakes by streamlining METRC, compliance, packaging, and labeling.
Cannabis contract manufacturers are not only benefiting in-state brands and cultivators but also out-of-state producers too. In fact, it’s one way some brands are able to scale so quickly from state to state. As brands continue to do so, this should only create more of a sense of urgency for California brands seeking to increase their market share.
So, before we go, let’s review white-label cannabis and contract manufacturing to get a full understanding of how they work and how you can get started.
White Label Cannabis & Contract Manufacturing 101
Last but not least, below is a breakdown of the basics of white-label cannabis production and cannabis contract manufacturing.
Cannabis White Label
White-labeling is not uncommon in the retail space. Across the industry, everyday products like shampoo, dish soap, and even food are white-labeled. That means one manufacturer produces the product with a “white label” for brands to then brand it as their own. In California, cultivators can partner with white-label cannabis producers to put their brand on products the producers already manufacture. Compared to contract manufacturing services, this does limit the range of products cultivators can choose from.
Of course, if your brand has an idea in mind for its own unique product or good, contract manufacturing services would be the ideal route to take.
Cannabis Contract Manufacturer
In 2018, California’s Department of Cannabis Control created the Type-S Cannabis Manufacturing License, which allowed the creation of cannabis shared kitchens and co-manufacturing spaces. As a Type-S licensee, you can make your own unique product for sale in the facilities of a primary Type-S license.
The Type-S license is far more cost-effective than traditional licensing and has a faster approval time. It also lets companies make private-label edibles, pre-rolls, and if they have the right equipment and expertise, a wide range of other cannabis products.
How My Green Network Can Help – The Final Word
My Green Network (MGN) is Southern California’s premier cannabis cloud kitchen, white-label cannabis partner, and cannabis contract manufacturer. At MGN, cultivators can take advantage of both white-label services and contract manufacturing services. This allows them to tap into our unique network of members to create any product they want, since our members each have their own specialties, from pre-rolls to gummies to live rosin and beyond.
Founded by a team of attorneys just this year, the Type-S licensee has already helped over 20 existing and new brands produce their product lines, hit the shelves, make sales, and increase profits.
If you’re a cultivator looking towards the future, it’s time to consider how you’ll scale the ever-changing market landscape. Get in touch with the My Green Network team today to schedule a discovery call or tour and begin diversifying your portfolio to protect the pulse and profits of your business.
It’s common knowledge that California is the biggest market for legal cannabis sales. Being the biggest and most populous state, this makes sense. But with this fact, many new brands see entering the California market as an impossible feat.
On the flip side, a growing number of brands see the flourishing market not as a barrier to entry but as an opportunity to capitalize on the market that’s thriving the most.
So, to help your brand strategize for the future (and not get left behind!), we set out to answer the question: is the California cannabis industry really that saturated? Keep reading for an insider’s POV and all the facts on the latest California cannabis trends and sales data to put the rumors to rest.
An Insider’s Look at California’s Cannabis Market Share
“You can infuse so many different products with cannabis, the amount of cannabis products is essentially unlimited,” says Ken Hwang, attorney, and co-founder of My Green Network. And that reigns true, even in California. Brand differentiation is crucial in a state the size of California, which boasts a massive cannabis market share. In Q2 of this year alone, California’s taxable adult-use cannabis sales reached $1.2 billion, a 2.9% increase from the quarter prior.
California cannabis trends also show that consumers are craving differentiation, too, as people’s preferences slowly move away from traditional flower and toward more advanced and creative ways of consuming cannabis. For instance, the state’s pre-roll category is experiencing exponential growth, with sales shares increasing by 21.6% from June 2021 to May 2022.
Other notable product category sales to note in this same time period, include –
Edibles, growing by 11.8%
Capsules, growing by 22.3%
Vape pens, growing by 12.6%
“Retailers are always looking for new types of products to try for their customers, too,” adds Hwang. But it’s not just sales and consumer demand that are propelling the state’s cannabis market forward. There are other key and calculated factors at play, too. So, without further ado, let’s get into three more of the top reasons brands are increasingly capitalizing on cannabis sales in California, despite fears of saturation.
Voters are approving local retail growth
One thing that originally set California and other state markets back was the fact that local jurisdictions could opt out of sales. However, as stigmas begin to slowly diminish and locales see the financial gain of legalization, they’re quickly changing their minds.
In November of 2022, California residents made their voices heard with over a dozen cannabis ballot measures approved across the state. In the end, the wins are expected to translate to over 70 new retail licenses, allowing more sales to be made and even more customers to enter the market.
The state is cracking down on the black market
No matter how long legal markets have been around, the black market will always be a problem. In California, industry experts report that roughly 55% of all cannabis sales are made within the state’s illegal market. That means, if it’s to be tamed, the $5.2 billion in revenue that the state saw in 2021 could potentially double.
This is a fact that the state is very well aware of and is taking strides to eradicate—more so than other states. This year alone, the California Department of Justice’s annual “Campaign Against Marijuana Planting” program was successful in eliminating nearly one million cannabis plants and seizing more than 200,000 pounds of processed material. Even more, the program was recently greenlit to work year-round in the fall of 2022.
Interstate commerce is on the horizon
This fall, Governor Gavin Newsom signed several cannabis-related laws into place, including one that opens up the doors for future interstate commerce. Senate Bill 1326 creates an interstate commerce agreement pact and gets rid of a long-standing ban on moving and selling cannabis products across state lines.
Even though the action will require specific criteria to be met, like federal reform, it sets up the state to be at the forefront of the movement once it occurs. It also adds to the momentum and discussion of interstate commerce, with neighboring legal states now permitting adult use and medical sales, like Arizona and Nevada.
Increased delivery will boost purchasing
Along with the passed bills for future interstate commerce came new state laws for delivery expansion, too. The SB 1186 measure requires cities to adopt new ordinances by January 2024 that expand access to medical patients through delivery to patients directly or their primary caregivers.
While California often sets the trends for the states, Canada is the country that sets the standards for legal markets and is typically the precursor to what happens here. So, if the new Uber Eats delivery deal in Toronto tells us anything, it means it’s only a matter of time before on-demand consumer delivery makes its way into the Golden State, too.
“Delivery is the way. Older generations do not want to go to shops. While the younger generations are already familiar with delivery for everything,” adds Kenton Wong, co-founder of My Green Network
How to Break Into California Cannabis Trends
If you’re from out of state, out of the country, or even in-state, there are ways to get your products on the shelves without the traditional hoops to jump through. Again, thanks to the state of California and its expansive collection of licensing types. The Type-S license is unique to the state and permits licensees to make legal cannabis products in a shared manufacturing space.
My Green Network serves as the state’s premier cannabis cloud kitchen for contract cannabis manufacturing, private-label edibles or goods, and cannabis white-label product production. The facility allows brands to make, package, and sell their products directly to dispensaries through their retail partners without having to pay for licensing, facilities, and equipment upfront.
“We selected My Green Network because they are small enough to give us personal attention but big enough to scale number one. Number two, they have an incredible amount of technical expertise relative to putting our products together, and it’s really a question of precision,” says John Masis, of En-Tranced, who recently launched the brand’s oral Canna-Mizer in California after starting in the Maine and Massachusetts markets.
So, to finish and answer the question, is the California cannabis industry really saturated? Yes, but as you can see from what you learned today, there’s plenty of cannabis market share and growth to take advantage of. Become the next cannabis manufacturer in California with My Green Network and schedule a tour of our state-of-the-art facility, today.
Despite our differences, there’s one thing we can all agree upon: the cannabis industry is one of the most exciting, rapidly growing, and vibrant markets of late. Untouched by COVID-19 precautions (in fact, sales and use grew!) and legalized in more and more states each year, it’s clear to see the future of legal cannabis is bright (even federally).
For cannabis consumers, it’s a dream to be in the industry they’ve felt a part of long before legalization. And for smart business owners, it’s a time to capitalize on the predicted 11% compound annual growth rate of the legal cannabis industry from 2020 to 2030 and a market that’s expected to rake in $32 billion this year alone.
Until recently, however, getting your foot into the door of the cannabis industry was a nearly impossible feat. With banks being reluctant to offer traditional loans and financing, a difficult application process, and exorbitant licensing fees, the industry has unusually high (pun intended) barriers to market entry.
Because the industry is changing so quickly, opportunities for licensing and making products with cannabis are also growing. And we’re proud to say My Green Network has been at the forefront of the change as California’s premier cannabis contract manufacturer and leading cannabis white-label California producer.
So, if you’re an aspiring cannapreneur, a current business owner looking to diversify their already licensed business, or simply interested in turning your canna dreams into reality, you’re at the right place. Keep reading to learn more about the top 6 benefits, MGN offers Green Leaders, out-of-state manufacturers, and those simply seeking to scale with the growing industry.
The Top Six Ways MGN Supports Canna Entrepreneurs
Without further ado, here are the top six ways My Green Network supports canna entrepreneurs in California.
#1 - Streamlined Market Entry
Traditional licensing can take up to two years to complete the application process, and get up and running. With My Green Network’s Type-S license and white-label opportunities, you can go from production to sales in less than that. You’ll also save time, money, and effort on start-up costs, locations, and equipment.
#2 - Co-Manufacturing and White Labeling Opportunities
We understand that there’s no one-size-fits-all plan for every cannabis brand. That is why we offer a variety of partnerships and memberships so that you can find the one that best fits your unique vision or business.
As a licensed cannabis contract manufacturer with a “Primary Type-S License," My Green Network can allow locally licensed “Type-S Licensees” to use our facility, equipment, and space to produce their own brand or product.
Even more, with our facility and state-of-the-art equipment and processes, MGN also offers private-label or white-label cannabis products to existing or new companies looking to be seen on the shelves, fast. This is an ideal route for current cultivators, manufacturers, distributors, retail stores, or retail delivery services to tap into current trends, offer exclusive launches, and expand their brands’ product category reach.
#3 - Compliance and Regulatory Support
Another unique trait of the cannabis industry is that it’s highly regulated for consumer safety. Unfortunately, too many new brands don’t take compliance and regulatory requirements seriously until they get a warning, a violation, or even worse, monetary fines, license suspension, or revocation. With so much on the line, compliance needs to be of the utmost importance to avoid bumps in the road; otherwise, your company might not survive hitting them.
To give you an idea, here are just a few examples of recent compliance woes -
Even big brands like Curaleaf, are settling over 10 lawsuits, and paying over $100,000 in settlements for labeling mishaps.
With My Green Network, you have an attorney-founded, detail-oriented team that has the resources and skills to handle complicated requirements while streamlining METRC and labeling, two of the most common areas for compliance issues.
#4 - Advanced Equipment and Expertise
When building our facility, we cut no corners or expenses when it came to equipping My Green Network with the best of the best. We wanted to provide this advantage to aspiring entrepreneurs as well as be able to produce quality and quantity efficiently.
“It's a detail-oriented business, but critical to being successful here is being able to find appropriate contract manufacturing partners that can handle the science and make sure you're in full compliance to the highest level possible,” says John Masis, of En-Tranced, about working with My Green Network.
Beyond our fully equipped, state-of-the-art facility, when surveying our members, they reported having the support of an attorney-backed business during licensing, production, and sales as a primary reason for partnering with MGN.
#5 - Community Advocacy
We don’t just talk the talk at My Green Network; we’re passionate enough for the industry to walk the walk, too. Our team was recently involved in supporting a new Santa Ana ordinance, which will open up the area’s ability to tap into the thriving market.
Over the past few years, My Green Network has been working with Santa Ana's city staff and council to make the law happen. The new ordinance will create a healthy environment for shared-use manufacturing and was made possible by the Orange County Advocacy Alliance and Santa Ana cannabis businesses.
#6 - Retail and Delivery Placement Assistance
Our MGN Artisan's Corner gives white-label cannabis brands and infused product manufacturers a direct link to placement for retail or delivery. Ask any brand that’s had to make retail or delivery sales themselves—this is a huge advantage for newbies without connections in the industry.
As for everyone else, out-of-state brands can more seamlessly enter the market with retail and delivery support, and current California brands can seek to expand into the Los Angeles region.
MGN: Cali’s Premier Cannabis Contract Manufacturer
Now that you know more about the different California cannabis license types and the benefits of working with an experienced cannabis contract manufacturer, you’ve gained a whole new perspective on what it takes to get into the cannabis biz.
With the MGN team supporting your vision or strategy, you can begin your own cannabis brand more quickly, scale an existing company, or become an MSO in a bustling California market.
So, now what? Schedule a time to tour the My Green Network’s cannabis cloud kitchen, connect with us on LinkedIn, or view our website now for more details and to tap into our collection of Green Leader Testimonials. And, cheers to taking the next step to becoming the next infused product manufacturer California needs to see!
As well-established as some legal cannabis markets may seem, it’s easy to forget the industry as a whole is still in its infancy. This is demonstrated by the transformation of concentrates over a few years.
When concentrates first came out on the market, consumers were simply enthralled with extraction capabilities, in general, and the potency and purity of said extracts. As quickly as concentrates rose in popularity, however, consumers began to wonder how exactly these precious concentrates came to be.
As consumers collectively realized their concentrates weren’t so “don’t panic, it’s organic” as they thought…and realized they were extracted using harmful, dangerous solvents - the whole product category began to shift.
Today, solventless rosin and solventless carts, are the most highly sought-after, most elite cannabis goods on the shelves today. For the simple facts that they’re made more naturally, for a nature-loving target audience, and that they taste better, and work better, too.
So, if you’re considering entering the cannabis industry or looking to shift your strategic goals to capture the largest growing purchasing group, what do you need to know about the state of solventless extracts in the current market?
Keep reading for the ultimate guide to solventless vs. solvent-based extraction, as they exist in the world of cannabis today. In this guide, we will answer questions like, “What is solventless live rosin?” And, “is solventless better?” As well as covering all of the latest trends, statistics, and benefits of solventless extraction you'll need to know to make your next move.
The Solventless Meaning
In cannabis, the term "solventless" describes an extraction method that’s done without a solvent. This is compared to solvent-based extractions, which use substances or solvents like hydrocarbons or butane hash oil (AKA BHO), CO2, alcohol, and ethanol to extract the oil from the flower biomass.
After the solvent-based extraction process is done, the remaining solvent must be removed so that the final product is safe to consume. This is a critical step in the process that distinguishes solvent-based extracts from solventless extracts in terms of manufacturing and consumer safety.
With solventless extraction, water, ice, heat, and pressure are used to extract the precious oil from the cannabis flower by gathering the trichomes. This means consumers are able to enjoy the oil in its purest, finest form. Solventless rosin is now thought to be one of the best products on the market because it most closely matches how the plant's compounds were made in the first place. Particularly amongst cannabis connoisseurs and enthusiasts willing to pay a premium for the best of the best.
Solventless extracts capture the whole-plant essence of cannabinoids in taste, aroma, and effects. To do so, cultivators harvest their flower and flash-freeze the crop immediately to harness the plant at the peak of its freshness. That is, before drying and curing processes alter their original profile, and with a gentle solventless process that preserves their integrity as much as possible.
Benefits of Solventless Extraction
Beyond the obvious differences and benefits of solventless extraction and solvent-based extraction for consumers, what are some of the benefits of getting into the solventless rosin business? For potential cannapreneurs, there are a few specific solventless market entry benefits to consider, too, including -
Solventless extraction equipment costs less than complex solvent-based equipment.
Solvent-based manufacturing is also highly dangerous to operate and requires an increased amount of training.
Solventless products are easily white-labeled, privately labeled, or ideal for Type-S licensing and manufacturing, with shared-use facilities. This gives owners and operators ease of access to a facility well-equipped for the process and access to high-quality fresh frozen flower that is already known to be optimal for solventless extraction.
Last but not least, because consumers consider solventless live rosin, edibles, vape carts, and goods “the best of the best,” they command a higher price point overall. This gives your business a higher return on investment (ROI) and better margins in the end.
Trends and What Lies Ahead for Solventless Extraction
As for sales, what type of numbers are we talking about in regard to growth? Let’s take a look at some of the most recently reported statistics surrounding solventless carts and extracts -
In June 2022, cannabis market analyst firm BDSA released data that showed the solventless vape rosin product category sale spiked 1405% over the year prior.
Furthermore, between June 2021 and June 2022, the category grew on average by 132% each month.
In California, solventless products produced by just one brand (Jetty Extracts) make up 55% of the state’s market.
It’s the most recent development in California that has solidified solventless extracts as the future of cannabis. In November, the state announced that solventless extraction methods could now be certified under its OCal Program. The OCal program will offer certifications for products that have been cultivated and manufactured with ‘comparable to organic’ processes and standards that the state already uses for other industries.
Is solventless better? The final word
To finish, and to answer the straightforward question: is solventless better? We’d answer with a confident yes, from both a consumer and a manufacturing standpoint. More and more cannabis companies are now rolling out their own solventless lines, whether they are already in the industry or not.
Even more, considering it’s already considered the most top-shelf, natural, and safe extract to consume, there’s no reason to think solventless rosin goods will be going anywhere anytime soon in the eyes of consumers.
If you want to take advantage of entering the solventless market, at the height of its popularity - learn more about the entrepreneurial opportunities at My Green Network. We offer licensed and non-licensed, current operators, and aspiring dreamers, a wide range of solventless market entry options.
Schedule a time to tour our state-of-the-art facility today, or explore our website to learn more!
Recently, we had the chance to catch up with one of our newest cannabis contract manufacturing partners, En-Tranced, that was co-founded by John Masis and Laura Stevens,
En-Tranced’s success is a prime example of how aspiring entrepreneurs can use cannabis contract manufacturers to their advantage for high-quality results, seamless market entry, and streamlined retail placement.
Hear more about where the co-founders started, how the brand came to be, and the way in which they were able to scale to multiple states in just a matter of years. Tune into the audio version of our interview below, or keep reading to find out!
MGN: Before starting En-Tranced, what was your professional background or experience? Were you already in the industry or just a spectator consumer or admirer?
John Masis: So actually, my background is in the pharmaceutical industry and specifically working with alternative ways to get active drugs actually into the body without going through the stomach. In addition, I've been a big admirer of Eastern medicine, specifically herbal medicine because that's where it all started. Initially, when the Farm Bill in 2018 passed, I was approached by my co-founder, Laura Stevens, to take a look at how we could utilize some of our intellectual property and get cannabis created in formulas that would actually be much more efficient and much more helpful to people than smoking or vaping.
So, we formed a company that actually focused on the hemp space with CBD that was actually launched as Herb Tech Pharmaceuticals. And those formulations and science then formed the basis for us, with En-tranced, to then look at the THC cannabis industry. With that mindset we realized the different business models needed between, let's say a federally legal product like hemp and a product that's legal at the state level like THC.
The business strategies are very different. But I've always been a big admirer of the cannabis plant, you know, the NIH has identified over 100 plus pharmaceutically active ingredients in it and we're just starting to learn and scratch the surface about what they do... so I'm a big admirer of the plant.
MGN: Yeah, well, that kind of answered my next question to you know, why choose cannabis as the industry to enter. But I love that angle, you know, looking at it as medicine and trying to increase the delivery to the consumers. So, you're really like consumer-focused versus you know, “people over profits” is a common saying now, but really getting that delivery of the medicine to the consumer. So that's interesting.
Masis: Yeah, exactly. I think one of the things that is really interesting when we looked at the industry, what we realized is that this is a tremendous opportunity for people to really treat themselves to take an active role in their health care or recreation for that matter, as well. But the issue we saw was that the methods employed to get the cannabis gets into the body were not healthy or efficient. Smoking or vaping can be harmful to the lungs.
With edibles, there's a tremendously poor onset of action. And topicals have limited success traditionally. So our focus in forming En-tranced and using pharmaceutical technology for alternative delivery was to create products that would be beneficial to the body. In addition, we wanted to give consumers control over their experience both in the dosage amount and in the speed of onset of action. If we look at the liquor industry as an example, everyone understands the effects of a glass of wine, a beer or a cocktail and can self-dose. We want to bring that control to cannabis.
MGN: Yeah, like advancing the industry from just flower to actual dosages and definitive information. That's great.
Masis: Yeah, when cannabis first become accessible, cannabis itself was the most advanced. Now the next evolution is how do you make cannabis controllable by the individual consumer and utilize cannabis much more efficiently, safer, etc. And that's what we're about.
MGN: I know En-Tranced is in multiple states, which you can get into more in-depth - But what was the first one that you entered in with the THC products and how did you scale so quickly?
Masis: Yeah, so basically, Maine was the first for us to enter to answer your question. It's a state that’s close to us with a little bit more of an emphasis on the medical side than on the recreational side, although there is recreational as well. And that gave us a chance in a very vibrant market to really begin to work on the efficiencies that we needed to be able to scale. A part of that process was to create the formulation bases for our oral misting technology and transdermal technology that could be readily and consistently blended by different contract manufacturers in different states with uniformity.
So that gave us a chance to really perfect the system of creating the basis in sufficient quantity and variation to then supply to our contract partner. So, Maine was a great state for that. But that then allowed us to really begin to move into multiple states almost simultaneously. California was really the next one, but we're now launching in a number of different states. I mean, most of the major states in fact across the United States.
MGN: So, we kind of touched upon this too, but can we go into how you decided on producing oral Canna-mizer versus other products, and I think you have edibles too, so can you tell us more about your product collection and how those came to be?
Masis: So, our focus is always to have a product or technology platform that's a substantial advantage over what currently exists in the marketplace. So, if we can't create something that is very different, or much more efficient then we don't really want to be part of it. We looked at the Oral Canna-mizer as, and I'll use a technical word, a transmucosal delivery system where we could actually with a mist, create a penetrating technology that would penetrate right through the tissue of the mouth into the bloodstream. And the desire for that was to have an immediate onset or immediate impact on the consumer so that it would allow a person to understand how much cannabis is in their system.
So, with the Canna-mizer, you can create a pre-measured dose so everyone knows exactly how much cannabis you're getting in and you feel the effects. With edibles, there has traditionally been a significant lag between the consumption and the impact. Our edible contains formulation technology that speeds up the absorption significantly and predictably so the consumer is never left wondering if it is going to work.
Working with molecules, specifically cannabis molecules, whether it's CBD or THC, they have a peculiar problem. They're very lipophilic, they’re very fat-loving. So, they have a tendency of getting sequestered in the adipose tissue within the body. So as a consequence, you really need to create a product with technology that can access the blood supply pretty quickly or it’s just going to get sequestered someplace and that’s just going to be it. It won’t be effective. So, our focus, in technology development, was on how do we create that efficiency of delivery into the bloodstream? How do we create the speed and ability to precisely dose, that again, puts the consumer in control of their experience. And that’s the Canna-mizer piece.
On the transdermal piece, we have a system that we can actually push the cannabis molecules very quickly through the skin to target very specific areas of the body, like muscles or joints. Our transdermal is not really designed to be a cerebral product. It’s designed to be a product that the consumer can utilize to treat very specific things, different pains, site-specific, etc. our transdermal produce what we call “a full body high” as it doesn’t really have a cerebral impact.
To follow up on the edibles, what people don't really typically realize is that in the pharmaceutical industry, pectin which comprises most of the gummies available is actually used to delay the onset of action of an active agent. This is because pectin is dissolved not by the stomach it’s dissolved by the intestines. So, with our edibles, our focus was to create oral products, which will be dissolved by the stomach and absorbed very, very quickly and predictably. So, it's not as fast as the Canna-mizer but It's very predictable from that standpoint.
MGN: Yeah, for sure. And consumers are becoming more and more aware and educated on how things work.
Masis: Well, that’s it I mean, people want to be able to incorporate their experience into their daily life. They also want to have discretion with it. So, it's hard to be discreet when you're exhaling a ton of smoke or vapor, so our focus is to create something where someone can comfortably use our products discreetly in a lot of different settings.
MGN: I love that. That's very cool. And even on the health side of it, too, people are becoming more health conscious of what they put in their bodies, the smoking you mentioned. So that's avoiding those, too.
Masis: Yeah, and if I can add something to that as well. This becomes very important on the medical side. You know, there are a lot of people that utilize THC cannabis to treat pain, cancer, pain, self-treat their cancer, pain, etc. And it's very difficult to smoke or get the benefit from smoking or vaping if you're a person, in a hospital bed suffering from cancer, you need something that's much more efficient and isn't gonna be harmful to the lungs. While edibles are often used, their delayed onset of action can be a problem. Further, they may have a negative gastrointestinal impact, especially with chemo…so they may not be as helpful as a smokeless fast-acting delivery system
MGN: Right, right. So, we’ve covered a lot of technical terms, and a lot of science behind your process. What was the research and development process, did you involve consumers? How did you get to the science behind the product?
Yeah, so the research and development process were quite extensive for all of our technology platforms and products. For example, to test the penetration capability of our technology we use what is called a Franz Cell System. In this system, we use skin-replicating membranes to test the speed and quantity of cannabis that we can penetrate through the dermal or mucosal membrane into the bloodstream. The Franz cell testing is analyzed by our HPLC (High Pressure Liquid Chromatography) systems and technology that can create computer penetration models on how the cannabis molecules move through tissue and throughout the body.
Once we get this dialed into our formulation technology, it is then ready for prime time and we get consumer feedback…which then can lead us back into the research and development process. This continues until we get a product that we like …and more importantly, our consumers like. So, it is an expensive and time-consuming development process for each product, but this means that a consumer can really on the fact that they will experience something truly unique.
MGN: That’s what we hear from a lot of cannabis brands, right? So, for those aspiring entrepreneurs, who are thinking of just getting into the industry - in the initial stages of planning and licensing, what were your biggest hurdles? How did you overcome them and what would your advice be to those that are just starting?
Masis: Since Cannabis with THC can’t cross state lines, En-tranced needed to find contract partners in each state that we could blend our bases with the cannabis accurately, precisely and uniformly… - our biggest challenge was finding the right individual groups that were licensed and were capable of producing our product to our specifications in whatever states we're launching the product into. There are a lot of groups out there that claim that they can do that but the reality is far different.
Most contract manufacturers don't have the scientific expertise or precision to assemble our products. So that was the biggest hurdle, finding great contract packers to partner with. This means that we had an extensive interview process that looked at technical capabilities, regulatory compliance and procedures, and market access. Regulatory compliance was an area that became important as each state has its own regulatory scheme and compliance is critical. It's a detail-oriented business, but critical to being successful here was being able to find appropriate contract partners, contract manufacturing partners, that could handle the science, make sure you're in full compliance to the highest level possible.
MGN: So are the established states like California, and Colorado, are you finding more vendors applicable there?
Masis: That's exactly right. As a state matures and multi-state brands move in, companies begin to realize that becoming a contract manufacturer is a viable business without a lot of the risks of brand development. These companies develop expertise at formulating products and compliance issues that make them important to multi-state brands. The more mature states like California. Colorado and Massachusetts are at this level. Other states are moving in that direction.
MGN: Yeah, definitely. So you kind of answered the next question, which was how and why did you decide to go with co-manufacturing and white labeling? But what kind of benefits have you achieved by going this route, business-wise, profit-wise, you know, on the side of not being plant touching? How have you benefited from that?
Masis: Well, it allows you to scale very quickly from that standpoint. I mean, we know what we do very well, which is to create pharmaceutical emulsion systems that can be employed through various delivery technologies. By contrast, we don't grow or extract and we will probably never grow or extract. We want to focus on what we do well and partner with companies that are experts at what they do. In this way, our business model is to source whatever distillate or extract that we feel is the best and combine that with our technology.
It also makes our business model very flexible so if there's a strain that becomes a super-premium strain that someone is developing and it's unique - we don't have to go back and recreate it which can take time to do - we can select the best strains, extracts or distillates possible and work with our contract manufacturer to incorporate them into our products. This way we can ensure that our products are state-of-the-art/cutting-edge and the best on the market.
Rather than trying to be a jack of all trades and a master of none in this industry, we know what we do very well, and we can combine that with what others who do exceptionally well and really create a great synergistic relationship that allows us to - grow quickly, innovate quickly, and provide the consumer with the best product.
MGN: Yeah, kind of lets everyone do their best and then serve the consumer the best in the end.
Masis: Absolutely. That's the key. You know, no company can do everything for every part of this process. If you can create a company that does what it does best then can pick and choose and combine the best of other things - yes, you end up with the best possible product for the consumer.
MGN: Right. So, how has the white label system supported retail placement? I know a lot of growers and extractors get the product and then they struggle to make those connections with the dispensaries or the retail store. So with white labeling and cannabis contract manufacturers, how have they helped you get into the retail stores?
Masis: Yeah, that's big, that's a great question. And that's a big part of a brand launch. Starting from scratch takes a long time. Since we are usually dealing with the best, most efficient, market-established contract manufacturers, they often already have embedded relationships. This gives us a step up where we can begin to look at branding awareness on the state level as well as at the local dispensary level like working on getting budtender training in place to drive local awareness and ultimately sales.
Contract manufacturers provide an indispensable part of our launch strategy and they give us a leg up in the sales and marketing cycle. I think the mistake that a lot of entrepreneurs make, especially in this space, is that they think “well I got a great product. And so, everyone's gonna flock to it” Unfortunately, having a great product is just the start. That's the beginning of the race. You have to work as hard at marketing the product as you did creating that product.
MGN: That's great. So what's the biggest advantage you've gained by working with My Green Network or how does their team support you in the California market, which is well known for being saturated?
Masis: Yeah. So basically, I discussed earlier that we did a lot of research into finding the best possible contract partner in each of the States in which we are launching a product. California is the largest state market in the United States so it was important that we partnered with the best organization capable of handling our business. In our selection process, My Green Network quickly emerged as the best possible choice for us. This decision was made on a number of factors.
MyGN had “best in class” blending capability with incredible precision. My Green Network quickly set the standard for us by which all other contract manufacturers are measured…even in other states. In working with MyGN, we also discovered that their response time to our needs and their ability to turn projects around without drama reinforced our belief that we had found the best possible partner for the California market. So, all of this means that our partnership with MyGN has allowed us to focus on establishing our brand knowing that our products in the dispensaries are the best possible.
MGN: So, can describe the retail part of it more in-depth, and have you gone to sale yet in California?
Yes. Our products are being sold in California. With the help of My Green Network, we started the launch in Tropicana which is one of the premier dispensaries in California. We have a number of others that were spooling up pretty aggressively. There's obviously an education process you need to put in place in order to get the budtenders behind your product so that they, understand what it is they are selling. This is especially important with a product that is unique with unique technology.
But I also think that while you need an education component in launching a unique product, having a unique product is an advantage in a saturated market…it is not the same old… I would not want to be launching a new flower strain …but a product that is patent pending and offers something that is discreet, predictable, with a fast onset of action and long duration…that is new to the marketplace and I believe can inject excitement into a crowded market. But education and market awareness become important and the right contract manufacturer lets you remain market-focused.
MGN: So what does the future hold for En-Tranced as a brand and product line, are there any new things that you're planning on adding or new states you’re entering?
Masis: Basically we want to continue to add states in addition to the ones we are already in…I think that New Jersey and Florida, and Michigan, would be great. In addition, we are looking to continue to add different product offerings as well. Different flavors, different experiences. Without giving away too much of the future, we are working on a concept that we pioneered called the macro entourage effect…. that involves a lot of plant extraction chemistry…so stay tuned.
MGN: Right, right. That's awesome. So all right, the last question here. For somebody that has an idea, like the Canna-mizer or something new and fresh, why work with a co-manufacturer like, My Green Network?
For a couple of reasons. First of all, if you're an aspiring entrepreneur, and you're looking to get into the market, you have to understand this is a complex market. Back when the cannabis industry first started, the thought was “hey, I’ll grow something and I'll go sell it.” Right now, it’s a very, very different, and very sophisticated market. The regulations are confusing and constantly changing. Any entrepreneur that tries to do it all alone has very little chance for success.
By partnering with a company like My Green Network you are instantly accessing a wealth of knowledge and the real-world experiences of a team that focuses on making you successful. Second, their industry/dispensary contacts can help ease the market launch process with great introductions and accurate advice critical for a new product.
And finally, if the product is fresh and new, and innovative, the services, advice, and market wisdom that My Green Network can provide are even more invaluable as the market further needs to be educated as to the difference between your product offerings. My Green Network has been an important partner in our market launch in California.
MGN: To finish, I know compliance can be a huge factor for brands just starting off. Have you experienced any fines or violations or warnings or do you see that the contract manufacturing you don't get as much interaction with those regulatory agencies?
Masis: Yeah, exactly. Regulations in this industry are critical. Unfortunately, as a new industry, the regulatory framework of many states can be confusing and conflicting. En-tranced takes its responsibility for compliance very seriously which is why we have legal expertise on staff. That said, it is often the insights and expertise of our contract manufacturers in general and My Green Network specifically that help us operate efficiently and legally within the state.
Their day-to-day experience can show the way a specific function…like distribution… needs to work. To date, En-tranced has an exemplary compliance record and I believe that one factor to this is the advice and knowledge that we tap into with our contract packers… again My Green Network is top-notch in this area.
MGN: Right, it's a whole other wheelhouse that you would have to be an expert in, or staff somebody to be an expert in. So it takes that complication from the whole business structure, right?
Masis: Yes, and a lot of these regulations are nuanced. The states are trying to do their best. They're trying to learn as much as they can about the industries. But they have a learning process as well with regard to the regulations they promulgate and how the industry is evolving within their state under that set of regulations. There can be a lot of details about the regulations that you may miss unless you're working with them on a daily basis. Since the contract manufacturers like My Green Network are doing that, they typically are up to speed relative to compliance. Again, that gets you up that learning curve as a company very, very quickly.
MGN: Yeah, for sure. Especially knowing California is just as complex as the other state, even though they're established. So, that was the end of my questions - did you have anything that you wanted to add?
Masis: You know, the industry is very comparable if you look at it economically to the post-prohibition liquor industry. At that time the fledgling industry had a lot of confusing regulations with a lot of boom-bust. While the cannabis industry shares that dynamic it also is different in the sense that with the internet, media, social media etc… these cycles have been accelerated. What this means is that flexibility is also key in this industry as it gyrates to accommodate new market entrants and market regulations. We found that My Green network provides us with that flexibility to prosper in the California market.
Increase Your California Co-Manufacturing for Cannapreneurs - The Final Word
As you can tell from our conversation with one of MGN’s Green Leaders - cannabis manufacturing companies in California are giving brands the opportunity to scale growth seamlessly while freeing up capital to help promote consumer awareness.
By partnering with an established cannabis contract manufacturer, like My Green Network, you gain the advantage of compliant facilities, technical expertise, and retail placement while tapping into our network’s collection of vast resources in the growing California cannabis market.
Think you have an idea for the next best thing when it comes to consumption? Want to combine your professional skills with your personal passion for cannabis, with a product you’ve always dreamt of? What’s holding you back?
Consider cannabis contract manufacturing, cannabis white label, or private label goods, and put the best of the best in California to work for you. Get in touch with My Green Network to schedule a discovery call or in-person tour of our facility, today.