En-Tranced: A Success Story & Benefits of Contract Cannabis Manufacturing

cannabis manufacturers in california

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.  

Your Guide to Cannabis Shared Manufacturing in 2022: Trends, Benefits & More!

cannabis white label california

If you’ve learned anything about the cannabis industry so far, it’s likely the fact that the market is ever-evolving. 

From regulations to sales to consumer preferences, nothing stays the same for too long. As the cottage industry experiences massive growth due to advancements in technology, operational improvements, expanded accessibility, and beyond. 

Simply put - as legalization grows, so do market factors that affect cannabis retailers, retail delivery, manufacturers, distributors, processors, and cultivators alike. 

So, what are the latest US and California cannabis business trends to gain momentum?  

Cannabis shared manufacturing facilities, white label cannabis brand expansions, cannabis contract manufacturer partnerships, and infused product manufacturer collaborations. 

Which are all terms that are just a fancy way of saying - diversifying your product collection or consumer offerings through unique market entry methods and various California cannabis license types.

How can your retail dispensary, retail delivery business, or current cannabis operation capitalize on the latest trend for scalability and growth? 

Keep reading our ultimate guide on cannabis shared manufacturing in California to learn more, including the why behind developing your own dispensary or delivery house brand and how to use unique Calcannabis license types to your advantage.

The Current State of California Cannabis Retail

Recently, a slew of California retailers reported to MJBizDaily that they’re struggling to make ends meet. This is because depressed wholesale prices haven’t rebounded as expected, and many retailers are forced to keep product prices low to compete.

Even more? POLITICO conducted an analysis of financial filings from two dozen of the largest publicly traded U.S. operators that showed the companies collectively lost more than $550 million in the first six months of this year on revenues of nearly $4.5 billion.

For retailers, there’s more competition than ever before, and more is coming. 

In the first quarter of 2022, California’s Department of Cannabis Control issued 80 dispensary, 50 delivery, and 16 microbusiness licenses. That means that in less than one year, the DCC increased California’s retail footprint by more than 20%. 

As we look towards November, if cannabis tax ballot measures pass as expected, some of the state’s most populous counties will see even more retail growth - 

  • 25 cannabis retail stores could be approved in Los Angeles County
  • 10-20 cannabis retail stores could be approved in Sacramento County
  • 20-40 cannabis retailer stores could be approved in San Diego country. 

For cannabis stores already in business, these changes mean it’s time to look at how you can stand apart from the competition or reduce your costs to distributors and brands supplying you with products in order to raise your bottom line. So next, let’s look at how other innovative and big-time brands are already revolutionizing the retail space with product collections and collaborations.

cannabis manufacturing california

Cannabis Retail + Shared Manufacturing IRL

Recently, we’ve seen an influx of shared manufacturing partnerships and white-label cannabis goods that are being launched to increase sales and profits for the brands involved. For the real-life application of the trends we’re talking about today, here are the most notable products and brands to hit the shelves with new offerings.  

Trulieve Launches Khalifa Kush Cannabis in Florida Through Exclusive Partnership with Wiz Khalifa

The nationwide Trulieve dispensary recently partnered with Wiz Khalifa in Florida to launch his own unique product line of ‘Khalifa Kush’. The Khalifa Kush brand offers a lineup of flower, pre-rolls, vapes, edibles, and concentrates, and is now available in over six states. 

Houston Brewery produces THC beverage 

On the hemp CBD side of the industry, other businesses and brands like breweries, bars, and restaurants are equally cashing in on the cannabis-fueled trends. Like one Houston, TX brewery that recently launched a beverage with less than .3% THC to tap into the market. 

The Parent Company partners with FaZe Rain

The well-known brand, The Parent Company, recently partnered with FaZe Rain, the co-founder of esports powerhouse FaZe Clan, on a new brand called RCVRY. When it was launched, fans camped out starting at 4 a.m. for a chance to buy the Rainz Runtz strain that was released. 

Denver Dispensary Owner Launches Rosin Line

Elias Egozi, an amateur MMA fighter and medical dispensary owner of Alto in south Denver, recently launched his own line of solventless rosin, amid medical marijuana's lowest sales in the last decade. 

Cannabis Shared Manufacturing in California

Interested in following suit and expanding in one of the most populous states and markets? You’re in luck. In 2018, California created the “Type-S Cannabis Manufacturing License,” which was designed to be a “shared-use” license. Simply put, a licensed cannabis contract manufacturer (a “Primary Type-S License”) can allow locally licensed “Type-S Licensees” to use their space.

That means the Type-S-Licensees can get their products on the shelves faster by using the Primary Type-S License’s facility, equipment, and space to produce their own brand or product. 

Cannabis shared manufacturing through Type-s licensing also enables existing businesses like retailers, distributors, and cultivators to build their own teams, utilize already compliant spaces, and launch their personal cannabis brands without the hassle of traditional licensing and big-time capital raises to build a space, equip it, and employ it. 

Another way to increase your brand’s portfolio or product collection is by sourcing trusted cannabis white-label California products or partnering with cannabis manufacturing companies that offer private label products, too. 

With the white-label cannabis route, you can choose a quality product with consistent results and brand it yourself. With a private label product, you can choose a cannabis contract manufacturer and specially formulate your own blend for sale. 

cannabis manufacturing california

Expanding Product Collections with Reduced Costs

Last but not least, any and every cannabis brand looking to scale growth through expanded product collections will want to do so with reduced costs. Which cannabis white-label or private-label products, and My Green Network specifically, can also support. To help you better understand, let’s look at a typical scenario of how a cannabis product is priced, and sold. 

Scenario A - Standard Market Entry 

  1. The manufacturer sells the branded products to retail at a wholesale price. 
    1. e.g. A cannabis brand sells a chocolate bar at $8 wholesale, while the retailer sells it at $16 for an $8 profit. 
  2. The distributor sells branded products to retail at wholesale price plus distributor markup.
    1. e.g. A cannabis distributor sells the same chocolate bar for $8 + 10% markup for a total of $8.80, while retail sells at $16 for a lesser $7.20 profit. 

Scenario B - MGN Value-Added Entry

On the other hand, MGN white label, and private label products are specifically branded for retail, which is equal to actual production costs + margin.  Typically, the production costs + margin is less than a manufacturer's or distributor's wholesale price.  This allows a retailer who white labels and private labels with the established cannabis contract manufacturer to capture extra margin compared to the standard market entry from above. 

As seen by the comparative scenario below - 

  1. e.g MGN manufactures chocolate bar for $4 and charges a service fee of $2 (total $6), then retail sells for $16 ($10 profit)

Additionally, if a retail license holder decides to go the cannabis shared manufacturing route vs white or product labels with a Type-S license, they can increase their margins even more. That’s because Type-S licensees who work with MGN only pay for actual production costs and can sell at the full retail price.

  1. e.g. A retail license with Type-S licensing manufactures chocolate for $4, but sells retail price at $16 ($12 profit)

Increase Your California Cannabis Business’ Profits with MGN

Back to our original message - as the industry evolves, so must you. And we all know that sometimes you have to spend money to make money. But the amount you spend doesn’t have to be so exorbitant that it takes years to make your money back.

By exploring California cannabis manufacturing license types, like the cannabis shared manufacturing type-s license or alternative routes like white or private labels - you can be creating, crafting, branding, and selling before you know it and for less. 

Connect with southern California’s premier cannabis cloud kitchen and primary type-s licensed facility, My Green Network, to get started. Schedule a tour of our state-of-the-art facility, or learn more about our membership opportunities, here now. 

The Clean Weed Movement & How to Capitalize on Solventless Rosin – The Latest Trends!

solventless extraction

Leave it to California to be leading the ‘clean weed’ movement. 

From flower goods to concentrates, vapes to edibles, a rising number of consumers are seeking out solventless goods as a part of the popular non-toxic lifestyle culture.

Popularized by Goop and fueled by an increase in knowledge and awareness of the toxic effects solvents and chemical-based goods can cause - consumers are more in tune than ever with what they put into their bodies. 

Even for weed, it doesn’t matter how good it might make you feel - it’s going to be solventless or nothing for this quickly growing community of clean-living consumers. 

So, as a pre-roll, oil, flower, or edible manufacturer in California or aspiring cannapreneur, is it time to shift your gears towards live rosin and solventless goods? Keep reading for all the facts and figures, you’re going to want to consider while you make future plans for sustainable growth.

solventless rosin

The Solventless and Rosin Definition

We’ve all heard the phrase ‘don’t panic it’s organic’ but the truth is not all cannabis products are strictly au naturel. In fact, some oils and concentrates that claim they’re the ‘purest’ form of the plant are processed with not-so-pure materials like butane and ethanol to reach their final form. 

As consumers become more knowledgeable about cannabis, in general, they’re learning more about these extraction processes and choosing to go ‘clean’ with their routines. As shown by the rise in popularity for solventless rosin, and other consumable goods too (we’ll get to that next!). 

So, before moving on to solventless cannabis market share - what is the true rosin definition? Rosin is the generalized term that’s given to a solventless extract. Meaning, the oil from the plant is extracted naturally and without the use of ‘solvents’ which include butane, CO2, ethanol, or propane for varying types of extraction methods. 

Instead, solventless oil extraction often uses - 

  • Water
  • Ice
  • Heat
  • Very high pressures

First, manufacturers source whole plant fresh frozen flower from a reputable cultivator (not all fresh frozen cultivators are the same - some don’t know how to grow fresh frozen resulting in low yields and heavy metals).  Second, you wash the fresh frozen flower in an ice bath at sub 32 degrees to freeze the trichomes on the plant (trichomes are just a fancy word for the crystals that you see on the buds), then agitate the plant to separate the trichomes from the plant.  

Third, you collect the trichomes with different micron filters.  Fourth, freeze dry the trichomes to remove any moisture.  This is what people usually call "ice water hash."  And fifth, you press the ice water hash using heat and pressure.  When you press the trichomes, it’s like smashing grapes, the cannabis oil oozes out, and that’s what we call "live rosin." This is a great method to isolate the trichomes of the plant and its beneficial compounds, without the need for solvents.

Last but not least, and speaking of terminology - you may also hear rosin referred to as solventless hash or solventless live rosin. The ‘live’ refers to the act of using frozen (and fresh) flower, which captures the plant’s expressions at the peak of ‘freshness’.

Now that you know more about the process of making solventless extracts, let’s take a look at current California cannabis trends that shows an increase in demand. 

solventless live rosin

California Cannabis Trends - Rise of Rosin

So, now that we’ve covered the basics, let’s talk rosin as it relates to cannabis sales in California and across the US. As of late, retailers have seen an uptick in solventless extract sales and an increasing number of edible manufacturers in California are now offering solventless varieties, too. 

Recently, BDSA, a cannabis market analyst firm, showed solventless concentrate sales in the vape rosin category grew by 1405% over the prior year. Even more, between June 2021 - 2022, each month the category grew on average by 132%. While, Glimpse, a trends analytics firm, reports consumer interest in Live Rosin alone grew 19% in the last year, reaching a monthly search volume of 13K. 

With year-to-year growth and increasing consumer interest, the biggest brands in the game have already begun entering the solventless extraction category. Including the manufacturing giant, Papa & Barkley, who launched their line of solventless edibles called ‘Papa and Barkley’s Kitchen’ in 2020. 

Now, two years later, California dispensaries are in overdrive trying to stock solventless products to meet consumer demand. Many display ‘solventless’ categories within their online menus making it that much easier for consumers to find the clean weed they’re seeking. So, next, let’s find out how you or your brand could be the next brand on the shelves.

Cash in on Solventless Extracts

If you’re already a licensed facility, or just considering becoming a cannapreneur yourself, you’re probably wondering - how can I cash in on solventless extract growth? There are two simple ways you can capitalize on the future of cannabis and capture higher-than-average live rosin prices. 

  • Type-s licensing - A Type-S License is a “shared-use” license specific to California cannabis manufacturers. When obtaining your own type-s license you can then use  a primary Type-S License’s facility, equipment, and space to produce your own product. Some primary type-s facilities like My Green Network (MGN) provide access to solventless extraction technology, to avoid having to secure and invest in your own.  
  • White label  - With a little less labor required into the manufacturing of your product, another way to enter the solventless cannabis extraction market is to brand your own white label product. When choosing a white label solventless extract brand to partner with (MGN does that too!), be sure to verify the quality and consistency of the manufacturer or facility’s products and processes for optimal success. 

But these types of solventless extract market entries aren’t just seamless for manufacturing and operational purposes, but for sales purposes too. Advanced primary type-s licensing facilities like MGN, also offer retail support through programs like buyer discovery days, and even immediate placement with a retail delivery license.

edible manufacturers in california

Your Source for Solventless Extract Solutions

As we start to see hash hole pre-rolls, solventless edible manufacturing, solventless vapes, and rosin goods reach the peak of popularity, the time is now to tap into the growing cannabis market share. But keep in mind, for most traditional licensing methods, it can take over a year to become approved not to mention the time it’ll take to get up and running. 

So, to act fast before the next trend hits - consider type-s licensing or white label goods with an established partner in My Green Network. In less time, and with less investment, your brand could be the latest and greatest solventless rosin to hit the dispensary shelves (and fly off of it, too!). 

Get in touch to schedule a tour facility or discovery call with the My Green Network team - where we exist to inspire the future Green Leaders of the cannabis industry. Explore our membership opportunities, FAQs, current members, and more here now. 

The Latest on Cannabis Funding – Top 5 Ways to Fund Starting a Cannabusiness

cannabis startup funding

As the US collectively and patiently awaits further progress on the SAFE Banking Act, cannabis funding continues to negatively affect market entry for craft and small start-ups. Why? Because cannabis is a schedule-1 ‘drug’ under the Controlled Substances Act, many big-time banks, lenders, and investors can’t or won’t participate in cannabis transactions not insured by the FDIC. 

Of course, that doesn’t mean there aren’t other creative ways to break into the market. In fact, as the world of ‘funding’ evolves, the opportunities to gain funding for cannabis startups have evolved, too.

Today, you have more options than ever for starting an edible business or starting a canna business with unconventional ways of funding. So, if you’ve ever dreamt of being an edibles manufacturer or launching your own branded line of cannabis goods - this is the ultimate guide for you. 

Keep reading to learn the latest in cannabis funding solutions and the top five ways to secure cannabis funding in 2022-23. 

Cannabis Funding 101

It’s no surprise that aspiring entrepreneurs want to get into the cannabis market. Especially considering the industry’s global market was estimated to be worth $21.3 billion in 2020 and is expected to reach $55.9 billion by 2026. But still, with federal restrictions on raising and gaining capital, the industry is seeing a decline in cannabis startup funding. 

In 2022, only 41 cannabis companies globally have been successful at raising capital or venture funding. Altogether, the companies have raised $294 million over the year, which is less than ⅓ of all the funds raised in just the first half of 2021. If the current pace continues, experts cite that 2022 is on track to be the lowest fundraising period for the industry since 2017. 

But, long-time cannabis advocates and multi-millionaires themselves, like Snoop Dogg, are using their positions for good use when it comes to cannabis funding. The rapper recently became the director of Casa Verde Capital, which is a venture capital fund that specifically focuses on cannabis startup funding. So far, the fund has been successful with a portfolio that includes notable brands like Dutchie, Cannalysis, and Green Tank. 

Beyond celebrity clout, there have been some new movements when it comes to federal legislation addressing cannabis funding concerns. The Capital Lending and Investment for Marijuana Businesses, or CLIMB Act, was recently introduced to the US House of Representatives and sets out  “to permit access to community development, small business, minority development, and any other public or private financial capital sources for investment in and financing of cannabis-related legitimate businesses.” 

As we await definitive changes, rest assured there are still alternative ways to source startup money for cannabis businesses. So, next, let’s cover the four most innovative cannabis funding solutions for you to explore. 

starting a cannabusiness

The Top Four Cannabis Funding Solutions

Let’s be honest - the cannabis industry and its players are creative, to say the least. To answer the question, of how to raise money for cannabis, we’ll cover the four ways these visionary cannabis startups have found success.

Venture Capitalists and Angel Investors

The search for angel investors for marijuana is on the rise, as is the need for cannabis-specific venture capitalists. To show their effectiveness, cannabis startups who have used venture capitalists or angel investors for marijuana market entry include - 

  • Weedmaps
  • Leafly
  • Flowhub
  • Eaze 
  • Surterra Holdings (Parallel) 
  • LeafLink

If you’re not familiar with the term ‘angel investors’, it refers to high net worth individuals - who act like ‘angels’ for some by investing a portion of their worth into startup brands. As noted by Cannabis Business Times, often angel investors for marijuana are more apt to invest in businesses that  - 

  • Have a low capex, aka low capital expenditures. 
  • Require low start-up costs.
  • Are ‘mom and pop’ in nature. 

Traditional Business Loan

Of course, don’t rule out traditional business loan options either. Smaller banks and financial institutions are increasingly offering and facilitating cannabis business loans as the industry and legalization grow more widespread and mainstream. In the case of traditional financing, you’ll want to be sure your business plan and personal finances are as buttoned-up as they can be.

That’s because traditional banks and institutions will require, review and dissect these more than other financing routes. This means increasing your credit score as much as possible, exploring the possibility of a co-signer, and saving up for potential down payments.

Asking Friends and Family

We all get by with a little help from our friends. But cannabis startups are relying on friends and family more than most legitimate industries. Many cannabis companies' first equity investors are those close to the founder, but the logistics can be tricky to manage personally and professionally. To be transparent, you’ll want to be sure your family or friend investors know the risks of the industry vs investments in traditional markets.

Again, similar to traditional loans, when going to friends and family for starting a cannabusiness, make sure the terms of your business plan and paying out investors in stock, or capital, are clearly defined.

Crowdfunding

Crowdfunding has been a successful capital-raising route for thousands of big-time and small-time brands, cannabis included. Notable platforms like Kickstarter, Mainvest,  Indiegogo, and MicroVentures have been found to be 420-friendly, and now cannabis-specific crowdfunding platforms exist too. 

These platforms, including CannaFundr and Fundanna, give cannabis startups the opportunity to source funds by sharing their business plans and facilitating captivating campaigns to drum up support from those in favor of and interested in investing in cannabis without other ways to do so. 

 how to start a cannabis business in california

Starting a Cannabusiness - Maximizing Your Return on Investment

No matter which route you take, you’ll have to consider just when you’ll make a profit or how quickly you’ll see a return on your investment. While you’re thinking outside of the box to secure cannabis startup funding, continue the same type of thinking for licensing and manufacturing, too.

A traditional license isn’t the only avenue to starting a cannabusiness, especially when launching in California. California is one of the few states that offers type-s licensing as a fast track to getting approved while using a primary type-s licensed facility to begin manufacturing in an expedited fashion. 

My Green Network is proud to be the premier type-s licensing facility in southern California that helps aspiring cannapreneurs achieve their dreams of getting into the cannabis business through co-manufacturing, white label or private label goods, and shared cannabis cloud kitchen space. 

The faster you begin producing, the faster you begin turning a profit. So, bookmark this guide on how to get funding for cannabis business licensing, and keep My Green Network in mind as you continue your journey towards cannapreneurship.

Get in touch to schedule a tour or to learn more, now. 

4 California Cannabis Market Trends You Need to Know for Sustainable Growth

As a cannabis operator, it’s easy to get caught up in the day to day tasks involved with keeping operations running smoothly. However, when those operations alone aren’t proving to be as profitable as you’d hope - it’s time to shift your focus to find out what you can do to scale growth for a sustainable future. 

That means taking the time out of your busy schedule to look at current consumer and industry trends across the US and in the California cannabis market, specifically. 

California has quickly become the standard for the industry and where these trends often emerge. Whether you’re licensed in the state already or looking to enter the market - knowing these trends and how to capitalize on them is first on the list of to-do’s when looking to expand. 

So, here we’ve compiled the top four latest California cannabis market trends every operator needs to know, plus two simple ways cannabis contract manufacturers can help. 

Let’s get started with the most recent trends to be aware of. 

Trend #1 - Dispensary House Brands

Retail storefronts have the advantage of an already built customer base and valuable insights from actual consumer purchases. To capitalize on this, dispensaries are now producing their own branded product lines, or ‘house brands’ that specifically meet the needs of their customers, helping to build loyalty and customer retention. 

For dispensaries that aren’t vertically integrated already, industry experts recommend white labeling or teaming up with cannabis contract manufacturers to do so seamlessly and cost-effectively. This route not only saves retailers up-front costs for facilities, equipment, expertise in production, and staff but helps bring the product to the market faster too.

Trend #2 - Pre-Rolls as the Future of Flower

Recently, the leader in cannabis data, Headset, released valuable data that highlights the product categories that consumers are now shifting towards. In this report, flower sales showed a decline, while the sales of beverages, capsules, edibles, pre-rolls, and vape pens all grew considerably from June 2020 - May 2022.

Pre-rolls, specifically, experienced profound growth in sales, increasing nearly 23% from 2020 - 21 and 22% from 2021 - 2022. Furthermore, when looking at online sales for pickup and delivery, online shopping carts containing only pre-rolls increased from 47% to 53% in a 12-month period.

california cannabis distribution

Trend #3 - Brand Growth in New Sectors

Another trend, reported by MJBizDaily, shows brands not only expanding their reach with multi-state operations but also growing in new product category sectors, too. Similar to retail dispensaries producing their own house brand products, California processors, cultivators, and manufacturers are steadily seeing the benefit of expanding their product offerings outside of their flagship goods to increase target markets and sales overall. 

Similarly, out of state and out of country cannabis brands are seeking to enter the Golden State as they see the value of the California cannabis market size, population, and sales. 

Trend #4 - Portable and Potent Products

According to industry experts, consumers are steadily shifting towards more portable and potent products, such as pre-roll packs, edibles, and vape carts, that allow them to more easily consume on the go. Even more, they’re seeking out more potent products, such as infused pre-rolls, that deliver the same nostalgia as a joint but with the potency of a concentrate, too.

private label cannabis

How to Capitalize with Cannabis Contract Manufacturers

Another trend that’s been creeping up for quite some time is cannabis contract manufacturers and white label cannabis products. By outsourcing the manufacturing of additional product lines, experts note that companies can gain the benefit of flexibility in volume and savings. 

But remember, not all cannabis white label California brands can be treated equally. As a company or individual, you should conduct thorough research into potential white label cannabis products or private label cannabis opportunities with an extensive vetting process. To help, key factors to consider when selecting a white label cannabis partner or cannabis contract manufacturer include - 

  • Product consistency 
  • Delivery and distribution 
  • Pricing and shared costs
  • Experience 
  • Communication and customer support 
  • Production schedule and timeline 
  • Facility accessibility and availability 
  • Unique value propositions versus competitors (i.e. perks like co-working space, or B2B distribution) 
  • Licensing types and requirements 
  • Experience with compliance (e.g. METRC, state audits, etc.)

One California cannabis license type that’s helping to facilitate fast and cost-effective entry into the cannabis edibles market is the Type-S or shared-use license. With lower licensing fees and the ability to use a facility that’s already specifically equipped for cannabis product manufacturing, you can see just why the Type-S license type is gaining popularity with budding cannabis entrepreneurs and brands struggling to turn a profit.

The Bottom Line - White Label Cannabis is on the Rise

At this point, there’s no question. To scale growth and remain competitive, California cannabis market cultivators, processors, retailers, and manufacturers alike must get serious about capitalizing on market forecasts and trends. 

Now that you know the current trends that are poised to take the industry by storm, you can internally strategize on which route is best for your operation, in positioning for future success. All in all, these trends show the value of partnering with cannabis contract manufacturers to produce white label cannabis goods and the benefits of co-manufacturing and shared-use facilities, too.  

Tap into the experience and resources of My Green Network to begin or expand California cannabis distribution and manufacturing. Since opening in March 2022, our Type-S shared-use facility has helped launch nearly a dozen private label brands, helping cannabis entrepreneurs and small businesses enter an industry that’s notoriously expensive and exclusive to join.

Learn more about our facility, membership types, and licensing support to begin capitalizing on these trends - before your competitors do. Visit our website or schedule a consultation with our team now!

Starting a Cannabusiness in California – The Top Things You Need to Know

cannabis entrepreneur

So you want to start a cannabis business… 

But you’ve quickly found out that, unlike other industries, the roadmap to becoming a cannabis entrepreneur is full of twists and turns. Of course, starting a cannabusiness will have the standard steps like figuring out your business model and crafting a business plan. However, the process will also include extra hoops to jump through for funding and financing, as well as a slew of regulations to know and navigate. 

If you’re just now brainstorming how to get your foot into the cannabis industry door, this is the ultimate guide for you. Here, we’ll cover how to start a cannabis business in California step-by-step, as well as educate you on various license types, regulations to be aware of, and consumer trends and stats that’ll light your entrepreneurial fire!  

Keep reading to learn how to start a cannabusiness in California and why you should.

The Future Growth of California’s $5.2B Cannabis Market

One of the first steps in starting a cannabusiness in California is determining what type of product you’ll enter the market with or what type of business you’ll begin. What helps guide that decision is looking at the current state of California’s market and sales and the forecast for future growth. 

To give you a quick glance at the market today, here are some of the latest product and user stats for the US and California, plus forecasting factors to consider - 

  • Cannabis sales in the U.S. increased 40% in 2021 to $25 billion, according to a BofA Securities report. 
  • New Frontier Data calculated the compound annual growth rate (CAGR) of the cannabis industry to be 11% between 2020 and 2030, meaning the industry’s worth could be valued at $57 billion by 2030.
  • California accounts for the highest cannabis sales, with Colorado and Michigan following. 
  • In 2021, MJBizDaily reported sales in California hit $4.4 billion, up nearly 57% from the year prior. 
  • The same MJBizDaily statistics also reported that the edibles product category showed the most market growth accounting for 22% of overall sales in 2020.
  • Flower sales still reign supreme as the top selling product, with preroll sales increasing by almost 50% and now accounting for 11% (a new record-high) of the total US market share.
  • As reported by Forbes, edibles are the most popular method of consumption in populous California cities, including San Francisco, Los Angeles, Oakland, and San Diego. The product category is also the most popular method of consumption amongst every age group, excluding Gen-Z. 

Now that you have a clear market outlook for starting a cannabusiness in California, let’s review the license types that’ll have you manufacturing faster than most. 

how to start a cannabis business

License Types to Consider in California

Despite complex industry regulations, experts recommend California as a viable market to enter due to its wide range of licensing types and population of nearly 40 million (which is more than the entire country of Canada). In comparison to other states' legal markets, California offers cannabis entrepreneurs licenses well-suited for varying socio-economic applicants and tailored options for specific product types. 

In addition to multiple cultivation license types, California uniquely offers ‘manufacturing’ licenses that allow licensees to produce a variety of cannabis products - even without having their own facility. These licensing types include extractors and processors for cannabis concentrates, and also cover edible and topical production too. 

Another important step when you start a cannabis business is to understand these licenses and decide which one works best for your vision or which will be most cost-effective for your bottom line. Here are just a few of California’s manufacturing license types that are ideal for budding cannabis entrepreneurs and what they permit per the Department of Cannabis Control

Type N: infusion of products

Type N manufacturers can:

  • Make cannabis products through infusion
  • Package and label cannabis
  • Infusion mixes cannabis extract or plant material with other ingredients to make a cannabis product.

Type P: packaging and labeling

Type P manufacturers can only package and label cannabis products.

Type S: manufacturers who work in a shared-use facility

Type S manufacturers operate in shared-use facilities and can:

  • Extract cannabis using butter or cooking oils
  • Make cannabis products through infusion
  • Package and label cannabis

The biggest difference to consider between Type-N and Type-S comes down to accessibility and the initial start-up costs of securing a facility. With Type-S you’ll have the opportunity to find a shared-use or co-manufacturing space that’s already equipped with the cannabis kitchen supplies or infusion equipment you’ll need to succeed.

While with Type-N you’ll be responsible for buying, renting your space, ensuring it’s up to code and meets regulations, and purchasing the equipment and supplies it’ll take to start manufacturing. 

how to start a pre roll company

How to Start a Cannabis Business in California - Step by Step

So by now, whether you want to learn how to start a pre roll company in California, manufacture edibles, or infuse topicals - you’ll need to know a few simple steps every potential licensee will be tasked with. Including - 

  1. Figuring out your business model type 
  2. Craft a business plan that considers - 
    • Market and competitors 
    • How to distribute and sell 
  3. Scope out facilities
  4. Funding and financing 
  5. Register your business & apply for licensing 
    • Tax considerations 
  6. Know your regulations 
  7. Branding and marketing
  8. Hiring a team and maximizing operations 

In terms of starting a cannabusiness in California, knowing and adhering to cannabis regulations is essential for the long term success of your business. That’s because while California is one of the easiest markets to get into, it can be one of the toughest to navigate in light of environmental focus and concerns. In fact, everything from sanitary procedures to packaging and labeling, even how you manage waste disposal, is monitored and regulated.  

During the startup process for your cannabis business, you’ll need to ensure you’re aware of the unique requirements regarding your license type at the federal-level, state-level, county-level, and local-level to avoid hefty fines or potential violations that could result in the suspension of your license.  

Back to the licensing type, this is another advantage of Type-S licensing as the shared-use facility will already be adhering to regulations for your type of manufacturing. This can reduce costs for compliance operations, software, and staff, while helping to prevent profit loss moving forward.

The Final Word - Becoming a Cannabis Entrepreneur

In any industry, surrounding yourself with the right people and team is a solid way to build a successful foundation for short term and long term growth. At My Green Network, we exist to facilitate the cannabis business dreams of aspiring cannabis entrepreneurs - whether they’re in the state, out of the country, in the industry already, or not. 

My Green Network is the premier cannabis kitchen and co-manufacturing space designed to streamline the licensing process and facilitate high-quality product development - along with supporting product sales, transportation, and distribution. Schedule a tour of our world-class facility, or learn more about our team, pricing, and services here now. 

Profit problems? The top reasons starting an edible business in California can help

how to sell edibles to a dispensary in california

For current cannabis operators, it should come as no shock that licensees are having a problem turning a profit or maintaining manageable margins. In the industry’s early stages of infancy, start-ups and established brands alike know the struggle of navigating uncharted territory and keeping up with regulatory fees, state taxes, and, of course, outdated codes like the infamous IRS code 280-e. 

However, in 2022, these profit problems are made even worse by the current state of the economy. The cannabis industry, like so many others, is experiencing a shocking (and somewhat unexpected) rise in operating costs, supplies, and wages due to inflation without increasing product prices. A fact that has many cannabis owners looking towards 2023, asking questions like - 

“How can we increase sales?" “How can we cut costs?” “How can we secure stability for future growth (without spending a lot up-front)?” 

Looking at the trends, it appears that cultivators, processors, manufacturers, and distributors are all on the same page - as many of these groups are starting an edible business in California to gain market growth. So how can you join the likes of brands like Cann, Sonder, and Garden Society in offering more than just one cannabis good? 

Keep reading to answer the question - how to sell edibles to dispensaries in California? And, to learn the top 3 reasons why cannabis brands already are. 

Top 3 Reasons for Starting an Edible Business in California

Because the struggles that affect cannabis profitability are often hard to adjust internally, the market is forcing cannabis owners across the US and world to look externally for scaleability. This thinking outside of the box mantra is what’s helped propel the trend of current brands starting an edible business in California. 

If you’re currently brainstorming ways to boost profits for your own cannabis (or even non-cannabis!) brand, here are the top three reasons to consider getting into the California edibles business. 

#1 - There’s money to be made. 

In February 2022, Seattle-based data-analytics firm Headset published sales data reporting that edible sales grew more than sales of all other cannabis products combined in six recreational markets. Including, California, Colorado, Michigan, Nevada, Oregon, and Washington state. In fact, gummies alone accounted for 70% of the category’s share and $1 billion in retail sales overall. 

#2 - Increases your target markets. 

Obviously, entering a new product category will increase your brand’s target market. But edibles are a market that experts agree will continue to increase in use, themselves. Why? Edibles have become the preferred entry-level consumption method due to their ability to accurately dose and avoid smoking or inhaling, for those who are opposed. 

Consequently, each year, the percentage of ‘entry level’ users trying cannabis for the first time increases, rising to 49% in 2022 from 40% in 2015, according to a recent Gallup Report. Edibles are also preferred by younger generations, meaning new consumers reaching the age of 21 will enter the market annually. 

#3 - It’s cost-effective. 

In comparison to cultivation, or extraction, edibles manufacturing is by far the most cost-effective product category for operational costs and licensing, too. For instance, the cost of securing a license and setting up shop for most traditional licenses in California is over $1 million. When edible production or white-label edibles in California typically costs less than a ¼ of that cost. 

cannabis kitchen

How to Start an Edibles Business in California

Now that you know the why, let’s get to how to start an edible business in California.  The state of California uniquely offers what’s known as a Type-S license that allows for cannabis kitchens, or commercial kitchen shared spaces. The Type-S licenses are available for in-state, out-of-state, and even out-of-the-country applicants and give manufacturers the ability to operate in ‘shared-use’ facilities and, more specifically - 

  • Extract cannabis using butter or cooking oils
  • Make cannabis products through infusion
  • Package and label cannabis

In shared-use facilities, Type-S manufacturers can usually either reserve their own suites or maintain a membership to use the common areas and equipment on a rotating schedule. This type of license not only cuts initial start-up costs but also saves on ongoing operating costs, wages, and equipment repair budget line-items, too. 

Even more, advanced Type-S facilities can help you with licensing and learning how to sell edibles to a dispensary in California. Some, like My Green Network located in Santa Ana, also offer distribution and transportation, taking care of that part of the equation, too. 

Outside of crafting your own edible product line in a Type-S facility or under a different license type, white-label cannabis edibles are another popular route for current licensees to explore. White labeling gives you the opportunity to quickly put a quality product on the shelves with fewer start-up costs and you own control over branding. 

cannabis kitchen supplies

Starting an Edible Business in California - The Bottom Line

Without any forecast for higher product prices or lower wages or costs - it’s time to get serious about how to scale growth, increase profits, and leverage your brand over competitors. As you’ve learned here, one way to do so for a growing number of cannabis brands is starting an edibles business in California. 

Whether you’re from out of state, out of the country, or already licensed in California, getting licensed to produce or white label cannabis products is simpler and more cost-effective with California’s Type-S license. So, now that you’ve learned how to start an edibles business in California and the reasons why make now the time you begin exploring the options to do so seamlessly. 

Start by contacting My Green Network to schedule a tour of our Type-S shared-use licensed facility and cannabis kitchen for your future edibles brand. Or, browse our pricing page to learn more about how our licensing and membership process works. 

Want a step-by-step guide to learning how to sell edibles to a dispensary in California? Download our complimentary guide for industry statistics, the most cost-effective ways to do so, and actionable tips you can take now to get started.

Become an Edible Manufacturer in California – The Top 3 Ways to Succeed!

edible manufacturers in California

If you’re a baker or chef (or just someone who’s watched the now trending ‘The Bear’ on Hulu) you know how anxiety-ridden and stressful the job can be. Early mornings, or late nights, are riddled with customer complaints, staffing issues, and oftentimes, unfulfilling when it comes to appropriate pay. 

For these reasons (and more), the culinary community and the cannabis community go hand in hand. In fact, this relationship has already motivated a plethora of chefs like LA locals, Enrique Olvera, and The Yeastie Boys to become edible manufacturers in California, themselves. 

Are you one of these culinary or cannabis enthusiasts seeking to align your two passions for a bigger and more fulfilling payoff? Private label edibles and baking for dispensaries have never been more popular for professionals and personal foodies looking to capitalize on the budding cannabis market. So, where can you start? 

Here, we’ll dive deep into how to easily become an infused product manufacturer with shared cannabis kitchen space and affordable licensing options. 

The ‘Why’ Behind Private Label Edibles

Smoking cannabis naturally produces creative edible ideas from the minds of current cannapreneurs, pastry chefs, sous chefs, and just everyday consumers - who don’t always have the funds or capabilities to make those edible visions come to life. Even with widespread legalization across the US, it’s been hard for mom-and-pop shops to make it big (or even turn a profit) when you consider the cost of becoming a licensed operator, especially in California.

Today, traditional licensing options in California cost a minimum of $1 million, and that doesn’t even include the operating costs it’ll take to keep your business up, running, and profitable. But before we scare you away, it’s important to know that the edibles category's market share is growing exponentially as more consumers become comfortable with their soothing (and satisfying!) effects. 

Headset and MJBizDaily recently reported that the sales of marijuana-infused edibles grew more than ‘sales of all MJ products in CA, CO, MI, OR, and WA’ in 2021. As you may suspect, cannabis gummies made up the majority of 2021 edible sales (at 70% of the category’s total market share in 6 recreational states) and accounted for nearly $1 billion in retail sales alone.  The thriving market indicates there is an opportunity to be successful in the cannabis industry by manufacturing edibles.

With the "why" behind private label edibles now under your belt, let’s get to the "what" of private label edibles and the definition of the terminology. Private label edibles are similar to any white label product in the fact that one entity produces the product, and another can brand it however they so choose. That means, even if you don’t have culinary or cannabis-infused kitchen experience - you can brand your own products with your own private label or white label and very easily become a player in the edibles game. 

But, how? We’ll get to that next. 

baking for dispensaries

3 Steps to Becoming an Edible Manufacturer in California

Use the following three steps as your guide to becoming the next up-and-coming edible manufacturer in California. 

#1 - Crafting a business plan 

A business plan is an initial starting point for every business, no matter the industry. In cannabis, it’s even more important to do your research and due diligence while crafting one. That’s because your ability to become licensed is dependent on a sound business plan that’s reviewed by the state’s Department of Cannabis Control.

To be sure you’re setting yourself up for success, you should ask yourself the following questions while compiling your edible business plan - 

  • What type(s) of edibles will you produce?
  • How will they stand out from their current competitors? 
  • Where will you produce the edibles? (A facility is required to apply for licensing!) 
  • Where will you get the flower or oil to make edibles and how much will it cost? 
  • Will you cook them yourself, or will you need to find talent?
  • What kind of license will you need to produce your edibles? 
  • How will you distribute or sell your edibles? 

#2 - Funding and licensing 

On to funding - every business needs some type of capital to get off the ground. It’s just a question of how much and from where. However, unlike other industries, since cannabis isn’t federally legalized, new business owners have fewer traditional business loan options. Hence, why it’s been so difficult for small businesses and fresh cannapreneurs to break into the biz. 

Luckily, for those interested in private label edibles or baking for dispensaries - there’s a lesser-known S-type license in California that helps potential licensees get their start for less. A Type-S License is classified as “shared-use” and allows licensees to work in facilities that have a master manufacturing license that is designated as a ‘Primary S-Type License’. 

To add to its appeal, the Type-S license can cost under $50,000 and is typically issued in 60 days vs 1+ years for others.  Not to mention, the lower capital requirements for Type-S licenses also increase the likelihood of a company turning a profit and avoiding the fate of the 37% that are not profitable. 

Because the Type-S Licensee is using the primary Type-S License’s facility, equipment, and space to produce their own brand or product - it helps save on initial operational costs and much more.  Think of it like a WeWork with kitchens, or Cloud Kitchens used as commercial kitchen shared space. 

#3 - Securing a facility 

Starting an edible business in California will require you to secure a facility or cannabis kitchen, regardless of your plan, funding source, or licensing type. That means you’ll also need to consider the cost of cannabis kitchen equipment and cannabis kitchen supplies, too. 

In the initial planning stages of your edibles business, you should also consider the quality of the equipment you can afford and how it might affect the quality of your end product. Especially considering the quality of your product will affect how you price it, too. 

To make all three of these steps that much easier to conquer, California is now home to a select few full-service type S licensed facilities. These cannabis kitchens act like any other commercial kitchen shared space (like Cloud Kitchens) but are equipped with specialized cannabis kitchen equipment, cannabis kitchen supplies, and often offer private label edibles opportunities, too.

cannabis kitchen

From Chef to Infused Product Manufacturer

Now that you know the profitable benefits of becoming an infused product manufacturer or private label edible producer and the simple and cost-effective steps to do so, what’s next? 

Finding the right cannabis kitchen or private label edibles partner. 

At My Green Network, we exist to enhance the edible community by increasing accessibility for culinary or cannabis connoisseurs. Our s-type licensed facility helps you turn your dream or passion project into reality. At a fraction of standard licensing costs and with everything you need in a state-of-the-art, cannabis-friendly commercial kitchen shared space.  

Learn more about our community of ‘chef’s turned edible manufacturers in California’ now by visiting our website or connecting with us socially on LinkedInReady to become one yourself? Schedule a tour of our Santa Ana facility now.

Want a step-by-step guide to learning how to sell edibles to a dispensary in California? Download our complimentary guide for industry statistics, the most cost-effective ways to do so, and actionable tips you can take now to get started.