Blunt Business explores the complexities of New York's nascent legal cannabis market through a conversation with Joshua Wilson, the general manager of Culture House, a dispensary located in the heart of Midtown Manhattan. The discussion illuminates the hurdles and successes encountered by social equity license holders, the regulatory challenges faced by established brands, the influence of the newly formed Trade Practices Bureau, the nuances of True Party of Interest (TPI) rules, and the day-to-day operations of a cannabis retailer in New York City.

Joshua's firsthand experience as a social equity license holder underscores the demanding journey from license acquisition to operational establishment. He stresses the pivotal role of carefully selected partnerships and active community involvement in accelerating the process, highlighting the necessity of maneuvering through a labyrinth of bureaucratic procedures. He acknowledges that success often hinges on a combination of strategic planning and favorable circumstances. Constant, transparent communication with the Cannabis Control Board (CCB) and other stakeholders is essential, demanding a level of diligence that can be overwhelming. Financial constraints are a persistent concern, forcing license holders to make difficult choices, such as postponing investments and limiting additional investor participation, to maintain financial stability. This delicate financial balancing act emphasizes the inherent risks and vulnerabilities faced by those striving to establish themselves in the market.

The discussion then shifts to the obstacles encountered by the Cookies brand in New York. Initial plans to establish a Cookies dispensary were thwarted by regulatory complexities, necessitating a rebranding to Culture House. Joshua explains that while Cookies typically operates through partnerships with existing license holders in other states, New York required them to apply for a license independently. The decision to adopt the Culture House name was a strategic move to gain approval from the Office of Cannabis Management (OCM). Further complicating matters, the iconic Cookies logo had to be removed from the building's facade due to concerns about its visibility during the Macy's Day Parade, illustrating the stringent oversight and unique considerations within New York's regulatory landscape.

The establishment of the Trade Practices Bureau in New York marks a significant step towards stricter enforcement of compliance standards. This bureau aims to curb illicit activities, including off-the-books product sourcing, undisclosed investor involvement, and misreported financials. Joshua expresses strong support for the bureau's mission, recognizing its potential to ensure fair competition and safeguard consumer safety. He anticipates that the bureau's enforcement will lead to a reduction in illicit cannabis operations, creating a more equitable market for legal businesses. However, he also acknowledges the potential for over-regulation and unnecessary measures, highlighting the delicate balance between enforcement and fostering a thriving market. Notably, Culture House has experienced an increase in revenue following the closure of illicit operations, demonstrating the tangible impact of regulatory enforcement on legal businesses.

Navigating the intricacies of the True Party of Interest (TPI) rules presents another significant challenge for businesses operating in New York's cannabis market. Joshua explains that Culture House was able to circumvent the TPI agreement by structuring their operations to avoid direct ownership of the license. This strategic maneuver underscores the importance of understanding and adapting to the specific regulatory requirements of New York. The conversation also contrasts the cannabis markets in California and New York. Joshua observes that New York has implemented a more effective tax management system, while the saturated market in California has diminished the significance of retail operations. He also points to the struggles faced by cultivators in New York, suggesting that easing cultivation regulations could lead to improved product quality for retailers.

The operational success of Culture House in Midtown Manhattan is attributed to its strategic location near Herald Square Park, a high-traffic area that ensures consistent foot traffic. The dispensary's location caters to the convenience-driven consumer behavior of New Yorkers. However, the complexities of payment processing for delivery services have led Culture House to discontinue this service. The walkability of New York City is a significant advantage, allowing customers to easily access the dispensary. Adapting to the unique consumer behavior of New Yorkers is an ongoing process, requiring a deep understanding of local preferences and trends. Joshua expresses optimism about the future growth of the cannabis industry in New York, anticipating further expansion and evolution as the market matures.

In essence, this exploration provides a detailed overview of the challenges and opportunities within New York's evolving cannabis market. It highlights the resilience and adaptability required to navigate the complex regulatory landscape, the importance of strategic partnerships and community engagement, and the ongoing evolution of consumer behavior. The insights shared underscore the dynamic nature of the industry and the continuous need for businesses to adapt and innovate to thrive in this rapidly changing environment.

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This interview with David Spradlin from Goldenhour Collective provides a comprehensive overview of the evolving cannabis industry, focusing on the challenges and opportunities presented by its transition from a patient-centric model to a more corporate, adult-use market. Spradlin’s insights, drawn from his extensive experience in the cannabis sector and his work with Goldenhour Collective, offer a valuable perspective on the industry’s past, present, and potential future, particularly concerning the role of legacy operators and the impact of evolving regulations.

Spradlin’s journey in the cannabis industry began in 2006 on the grow side, eventually leading him to retail, where he sought to create a more welcoming environment for medical patients. He expresses concern about the increasing corporatization of the cannabis industry, highlighting the potential risks for smaller players and those with serious medical needs. He reflects on the difficulties of raising and deploying capital in this sector, acknowledging the uncertainty and experimentation that have marked its development. The conversation delves into the evolution of the cannabis industry in California over the past decade, emphasizing the challenges posed by increased regulation, competition, and law enforcement scrutiny. Spradlin underscores the significance of Northern California’s role in cultivating many of the industry’s most renowned strains and extracts, while also acknowledging the struggles faced by legacy operators in the region due to their isolation from the broader market. Goldenhour Collective, Spradlin's company, aims to bridge this gap, connecting these legacy operators with the wider California market.

The discussion shifts to the regulatory challenges faced by small businesses and legacy farmers in California, attributing these difficulties to a system that favors larger corporations. The burden of state and local taxes is identified as a major impediment to the industry’s growth. Spradlin points to the complex political landscape in California as a contributing factor to this intricate regulatory environment. The conversation explores the potential for Florida to learn from California’s experiences, particularly in terms of incorporating corporate social responsibility and integrating legacy operators into the industry framework. The challenges faced by legacy cannabis operators in both California and Florida are examined. The Florida market appears to favor larger operators, while in California, legacy operators are struggling to keep pace with the changing regulatory landscape. The issue of social equity within the cannabis industry is raised, with concerns about the lack of a clear pathway for legacy operators to achieve legitimacy and ownership. Spradlin echoes these concerns, noting the success of Oakland’s equity programs for those affected by the war on drugs, while pointing out the relative neglect of legacy operators. The conversation concludes that any framework for the cannabis industry must consider the needs of both legacy and equity operators.

The challenges confronting small mom-and-pop farmers in California are discussed, focusing on the heavy burden of taxes and regulatory issues. The conversation highlights a recent legislative effort to allow small farmers to sell directly at state-sanctioned farmers' markets, which was ultimately unsuccessful. The high cost of licensing and permits for growers is identified as another significant obstacle. The potential 25% tax increase on cannabis in California is raised as a major concern, with Spradlin expressing fear that the state might be deliberately creating conditions that favor larger, well-financed operators at the expense of smaller ones. The overall sentiment is one of stress and uncertainty, with many operators unsure of how to navigate the current climate.

The conversation concludes with a discussion of the challenges and strategies for sustaining a cannabis business. Spradlin emphasizes the importance of partnerships with small farmers and providing fair wages to employees, recognizing these factors as essential to a positive customer experience. He reflects on the success of his previous ventures, such as Perfect Union, and reiterates his commitment to upholding high standards within the industry through Goldenhour Collective. He is commended for his efforts in creating a state-authorized apprenticeship program and his dedication to fair wages and benefits for employees. The importance of supporting local farmers and the desire of customers to make ethical purchases are also highlighted. Spradlin's perspective, particularly through the lens of Goldenhour Collective's mission, offers a valuable glimpse into the complex dynamics of the cannabis industry, emphasizing the need for balance between corporate interests and the preservation of the industry’s roots, while also highlighting the importance of social equity and sustainable business practices.

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This interview with Tara Coomans, CEO of Avaans Media, explores the transformative influence of artificial intelligence on journalism and public relations, with a particular focus on the cannabis industry. The discussion delves into the potential benefits and challenges AI presents for cannabis businesses, emphasizing the enduring importance of human creativity, trust-building, and strategic adaptation in this rapidly evolving media landscape. Coomans offers insights into navigating the complexities of AI-driven content generation, maintaining authenticity, and effectively reaching target audiences, particularly women, in the age of algorithms and deepfakes.

The conversation begins by acknowledging the increasing prevalence of AI in media and its potential impact on the cannabis industry. Coomans highlights the shift AI is bringing about, moving professionals away from routine tasks and towards more strategic, managerial roles. The ability to provide clear instructions to AI systems and understand their technical underpinnings becomes crucial for cannabis businesses seeking to leverage this technology. Coomans stresses the need for organizations to develop values-driven AI policies that guide responsible implementation. She anticipates a move away from fear and resistance towards proactive adoption of AI, potentially leading to the emergence of Chief AI officers and widespread experimentation with the technology within the cannabis sector.

The discussion delves into the intricacies of AI content generation using tools like ChatGPT and Claude, and their implications for cannabis brands. Coomans emphasizes the critical importance of understanding how these tools utilize and protect content, cautioning against feeding them proprietary information. Trust emerges as a central theme, with Coomans pointing out that AI tools often struggle to recognize trusted sources, which can be particularly challenging for cannabis companies navigating a complex regulatory environment. While the idea of requiring AI companies to cite their sources is raised, Coomans acknowledges the current lack of such a system. She also notes the limitations of AI-generated content in search engine results, where human-written content often performs better, a crucial consideration for cannabis brands seeking online visibility. The conversation reveals a surprising detail about Google's Gemini service, which reportedly restricts the generation of content related to cannabis and politics, highlighting the unique challenges and ethical considerations surrounding AI and content moderation in this industry.

Despite the rise of AI, Coomans underscores the enduring importance of human-generated content for cannabis brands, particularly in building trust and connecting with audiences. She emphasizes the role of personal stories in enhancing media appeal and creating compelling brand narratives, especially within the cannabis industry, where overcoming stigma and building consumer confidence are paramount. Coomans acknowledges the dual role of PR agencies, serving both the media and their clients, and the challenge of keeping personal stories fresh and engaging while remaining compliant with regulations. She discusses the importance of preparing clients for interviews and developing key talking points that resonate with target audiences while adhering to industry guidelines. The conversation highlights the value of targeted interview questions and controlled content to ensure informative and engaging narratives that accurately represent cannabis brands.

The discussion turns to the specific challenges and opportunities within the cannabis industry. Coomans and the interviewer discuss the current uncertainty surrounding the industry, the pent-up demand, and the potential impact of regulatory changes like rescheduling and safe banking. Coomans expresses skepticism about the outcome of the rescheduling hearing, while the interviewer remains optimistic about future growth. The conversation also touches on the challenges faced by the hemp industry due to a lack of federal oversight. Coomans introduces a new 3-month PR program designed to provide high-impact, low-commitment support to cannabis companies, demonstrating a proactive approach to addressing industry needs and navigating the complexities of the cannabis market.

The conversation explores the potential of integrating new technologies like podcasting into PR services for cannabis companies. The interviewer introduces Podcastpressor.com, a service offering dynamic content creation, professional editing, and audiogram video clips for podcasts, which could be particularly valuable for cannabis brands seeking to reach new audiences and build brand awareness. Coomans expresses interest in integrating this service into her company's offerings. The discussion touches on the importance of transparency in paid content and its role in the future of PR, especially within the cannabis industry, where regulations and consumer trust are critical considerations.

The conversation concludes with a focus on understanding and appealing to the female cannabis consumer, a crucial demographic for the industry's growth. Coomans emphasizes the importance of recognizing women as a powerful and influential consumer group, noting their preference for understanding and connection over aggressive sales tactics. She suggests alternative marketing approaches, such as lifestyle marketing and showcasing brand stories, to resonate with this audience. Coomans highlights the importance of brand research and the potential for women to boycott companies whose advertising does not align with their values. She underscores the significance of presenting the people behind the products, emphasizing that authenticity and genuine connection are more valuable than discounts or promotional offers when engaging female cannabis consumers. Coomans concludes that providing valuable content and product reviews that cater to the specific needs and preferences of women is essential for success in the cannabis market.

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Paul Weaver, Director of Cannabis at the Boston Beer Company, shared insights into the company's Canadian Cannabis Division and their new product, Emerald Hour, a line of non-alcoholic cannabis cocktails designed for experienced consumers seeking a full-spectrum, solventless experience.

 The product launch strategy, focusing initially on the Ontario market due to its regulatory landscape, was discussed, along with plans for US expansion. The conversation highlighted the growing trend of consumers, particularly younger generations, shifting away from alcohol and towards cannabis-infused beverages, a phenomenon sometimes referred to as "cali sober." 

This demographic shift is driving innovation in the cannabis beverage sector, with companies like Boston Beer Company adapting to these changing preferences. The discussion also touched upon the challenges and opportunities within the Canadian cannabis market, including regulatory hurdles and the growth of cannabis-infused beverages. The potential of cannabis beverages as a healthier alternative to alcohol, with faster onset times and better control over effects, was explored, along with the increasing awareness of the health risks associated with alcohol consumption. 

The conversation concluded with a discussion of the challenges of expanding cannabis products into the fragmented US market, the importance of scale, and the potential for significant growth in the cannabis beverage market over the next decade.

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Rocco Del Priore, Co-Founder of Sweed POS, discusses the critical importance of compliance and enterprise-grade solutions within the evolving cannabis industry. The conversation centers around Sweed POS's commitment to data security, regulatory compliance, and robust platform functionality, highlighting their achievement of both SOC 1 and SOC 2 Type 2 certifications.1

The discussion begins with a deep dive into data security, a paramount concern given the sensitive nature of customer information and financial transactions within cannabis dispensaries. Rocco explains Sweed POS's comprehensive security measures, including encryption, access controls, and intrusion detection systems. He then emphasizes the significance of achieving SOC 1 and SOC 2 Type 2 certifications, industry-recognized audits that validate a service organization's internal controls over financial reporting and customer data security, respectively. Rocco clarifies the distinction between these certifications, explaining that SOC 1 focuses on financial reporting, while SOC 2 addresses customer data and security.2 He also differentiates between Type 1 and Type 2 audits, explaining that Type 1 demonstrates a company's knowledge of required procedures, while Type 2 proves their consistent adherence to those procedures over time. This distinction underscores Sweed POS's dedication to not just meeting, but exceeding, industry security standards.

The conversation explores the complexities of data privacy regulations like GDPR and CCPA, particularly relevant given the vast amounts of customer data handled by dispensaries. Rocco explains that Sweed POS's all-in-one platform was designed with compliance in mind from its inception, streamlining data management and mitigating the risks associated with disparate systems. This integrated approach simplifies compliance efforts for dispensaries and reduces the potential for data breaches or inconsistencies.

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Blunt Business explores the critical issues facing the cannabis industry, focusing on regulation, compliance, and investment, through the lens of the International Cannabis Bar Association (INCBA). David Ruskin, their newly appointed president, shared his insights on the organization's role and the evolving legal and regulatory landscape.

Ruskin highlighted the INCBA's value as a network of experienced professionals dedicated to navigating the complexities of cannabis law. He emphasized the organization's role in providing access to expertise on diverse regulatory standards across different markets, a crucial benefit given the ever-changing rules governing the industry.

The INCBA serves as a central resource for staying informed and connected, offering guidance on navigating the intricate regulatory environment. The conversation addressed the ongoing process of rescheduling cannabis under the Controlled Substances Act.

Ruskin discussed the delays caused by new allegations and the subsequent public comment period, including an interlocutory appeal that further complicates the timeline. The potential impact of the Biden administration's support for rescheduling was explored, along with the possibility of increased DEA involvement in cannabis regulation following rescheduling.

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Luna Stower, Head of Impact at Ispire Technology, joined the conversation to discuss her role as a leader and advocate in the rapidly evolving cannabis industry. With a passion for social justice, regulatory reform, and technological innovation, Luna illuminated the path Ispire is forging to shape the future of cannabis. From groundbreaking partnerships with global icons to pioneering regulatory solutions, Luna shared insights into the company’s impact-driven mission and its commitment to inclusivity, quality, and transparency.

Luna began by highlighting Ispire's exciting partnerships with Afrobeats star Burna Boy and cannabis icon Snoop Dogg. These collaborations underscore the brand's commitment to cultural relevance and authenticity, leveraging the global influence of these artists to advocate for safe and responsible cannabis use. Luna emphasized how these partnerships reflect Ispire’s dedication to quality assurance and reliability, ensuring consumers have access to premium products while elevating cannabis as a lifestyle choice.

Ispire's strategic pivot to an asset-light model was a key focus of the conversation. Luna explained how this approach allows Ispire to expand internationally with agility, focusing on Africa and other emerging markets. This model also supports the company’s efforts to maintain efficiency while scaling its innovative product offerings to new regions. Luna expressed her excitement about the global growth opportunities and the chance to bring Ispire’s cutting-edge technology to underserved markets, fostering inclusivity and economic opportunity.

As the discussion turned to regulation and policy, Luna shared her perspective on the global cannabis industry’s challenges and opportunities. She emphasized the importance of understanding the distinction between legalization and commercialization, highlighting how the latter ensures tax control, regulation, and consumer safety. Luna also underscored the critical role of lobbying and media work in influencing lawmakers and shaping public perception of cannabis. She noted the threat posed by pharmaceutical companies, warning against the monopolization of the industry and stressing the need for a unified message around cannabis use.

The conversation touched on Ispire’s commitment to innovation in regulatory compliance, particularly its efforts to prevent youth vaping and expand the adult market. Luna highlighted the company’s advancements in age verification and identity verification technology, ensuring that cannabis products reach the intended audience safely and responsibly. She emphasized the importance of industry stakeholders working closely with governments to develop regulatory solutions, advocating for a universal framework that could include existing acts like the Cosmetic Act of 1930 for hemp-related CBD products.

Luna also shared her thoughts on the importance of fostering inclusive workplaces and empowering marginalized communities within the cannabis sector. She spoke passionately about the need for mentorship and networking opportunities for women entrepreneurs, as well as the value of having diverse voices in decision-making processes. Drawing on her work with the Indigenous Cannabis Business Association, Luna outlined her advocacy for social equity and her commitment to providing resources for marginalized communities to succeed in the industry.

The discussion also addressed the importance of supporting social equity licensees, with Luna calling for financial, legal, and business assistance from companies and organizations. She emphasized that these resources are essential for fostering a truly equitable industry and ensuring that opportunities are accessible to all. Luna’s advocacy extended beyond business operations, reflecting her belief that the cannabis industry has a unique role to play in addressing historical injustices and creating a more inclusive future.

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Blunt Business speaks with Dina Rollman, CEO of StrainBrain and board member of New Lake Capital Partners. The discussion explores the evolving landscape of the cannabis industry, the transformative potential of AI, and the challenges and opportunities facing businesses in this sector.

Rollman shares her perspective on the uncertain legislative future of cannabis, acknowledging the political headwinds but remaining optimistic about potential progress, particularly in the area of rescheduling. She predicts that AI will be a major force in the industry by 2025, citing StrainBrain, an AI-powered product recommendation engine, as a prime example. StrainBrain addresses the overwhelming product variety and lack of consumer education in the cannabis market by offering personalized recommendations tailored to individual preferences.

Beyond its consumer-facing applications, AI has the potential to streamline operations and improve compliance within the cannabis industry. Rollman and the interviewer discuss how AI can automate tedious record-keeping processes, improve accuracy, and potentially redefine roles within traditional businesses.

The conversation then shifts to the current state of the cannabis industry, with both participants recognizing the challenges posed by regulatory uncertainty and tax burdens. They anticipate a wave of mergers and acquisitions as the industry consolidates, with non-publicly traded operators playing a key role. Despite these challenges, both express optimism for the future, highlighting strong industry leadership and potential for growth. Rollman's position on the board of New Lake Capital Partners provides her with unique insights into these industry trends.

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Tyler Priest, the Chief Revenue Officer at Greenleaf Business Solutions, delves into the complexities of managing HR and payroll within the cannabis industry's complex regulatory landscape.

Tyler Priest emphasizes the ongoing conflict between state and federal cannabis laws, particularly concerning 401(k) plans for cannabis companies. He highlights the need for comprehensive HR and payroll solutions tailored to the unique challenges of this industry, including payroll processing, HR consulting, benefits administration, and compliant 401(k) options.

The conversation explores the difficulties in establishing traditional retirement savings plans for cannabis employees due to the conflict between IRS tax codes and cannabis industry regulations. Tyler Priest discusses Greenleaf's efforts to develop a compliant 401(k) solution that can be offered by various payroll providers, emphasizing their commitment to creating a secure and reliable retirement savings vehicle for cannabis industry workers.

Tyler Priest also addresses the challenges posed by changes in 401(k) plan custodians and the need for reliable financial institutions willing to serve the cannabis industry. He introduces the concept of a pooled employer plan to ensure commitment from all parties involved, including mutual funds and custodians. The importance of future-proofing these solutions to avoid business interruptions is also emphasized.

The discussion highlights the partnership between Green Path 401(k) and 1st Citizens Bank, underscoring the importance of collaborating with trusted financial institutions and advisors. Tyler Priest emphasizes the value of thorough vetting and due diligence when selecting partners in the cannabis industry.

Tyler Priest and our host touch upon the potential impact of cannabis rescheduling on 401(k) plans and the possibility of increased employer contributions. They also discuss the challenges cannabis businesses face in accessing traditional banking services and the potential for regulatory changes to streamline this process.

The conversation emphasizes the benefits of offering 401(k) plans as a retention tool and a differentiator for cannabis companies. They discuss various plan design options, including employer matching contributions and different contribution levels for managers.

Tyler Priest highlights the value of partnering with experienced custodians like Mid Atlantic Trust to ensure the security and accessibility of retirement funds for cannabis employees. He stresses the importance of clear communication and financial education to encourage employee participation in 401(k) plans.

Throughout the discussion, Tyler Priest and our host underscore the importance of professionalizing the cannabis industry and providing employees with access to the same benefits and financial tools available in other sectors. They conclude by encouraging cannabis employers to explore the Green Path 401(k) solution and prioritize the financial well-being of their workforce.

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Socrates Rosenfeld, CEO and co-founder of Jane Technologies, explores the transformative potential of artificial intelligence in the cannabis retail sector. Rosenfeld unveils "my high," a cutting-edge platform designed to enhance the in-store experience for both customers and budtenders.

"My high" leverages AI to provide personalized product recommendations based on customer purchase history and preferences. This information empowers budtenders to offer tailored guidance, elevating customer service and fostering deeper connections. Rosenfeld emphasizes that the platform complements, rather than replaces, the expertise of budtenders, enhancing their ability to cater to individual needs.

The conversation addresses the unique challenges of the cannabis industry, including stringent ID verification requirements. Rosenfeld highlights how AI can streamline these processes, creating a smoother and more efficient shopping experience. He envisions a future where technology seamlessly integrates with the in-store environment, optimizing operations and enhancing customer satisfaction.

Rosenfeld and our host delve into the evolving landscape of omni-channel retail, particularly within the cannabis sector. Rosenfeld proposes innovative strategies to curate product knowledge for budtenders, enabling them to focus on a select range of high-potential and personalized recommendations. This approach, he suggests, can be applied across various retail sectors, from restaurants to brick-and-mortar stores.

The discussion highlights the power of smart digital tools to revolutionize the in-store experience. By leveraging AI-driven insights, retailers can optimize product displays, personalize interactions, and create a more engaging and rewarding shopping journey for customers, ultimately driving sales and loyalty.

Rosenfeld explores the potential of data analytics to optimize inventory management and pricing strategies. By analyzing consumption patterns and stock levels, retailers can implement just-in-time inventory systems, ensuring product availability while minimizing waste. Data-driven pricing strategies enable dynamic adjustments, maximizing profitability and enhancing competitiveness.

Rosenfeld introduces the Jane Kiosk, an innovative in-store solution designed to enhance the shopping experience. These kiosks guide first-time shoppers, curate personalized product selections, and streamline the purchasing process. This approach empowers customers to make informed choices, reducing overwhelm and enhancing satisfaction.

The conversation addresses concerns surrounding data security and privacy. Rosenfeld assures viewers that Jane Technologies prioritizes customer data protection, implementing robust security measures and adhering to strict privacy protocols. He emphasizes their commitment to responsible data usage and regulatory compliance.

Rosenfeld discusses the company's adaptability to varying state regulations, highlighting the modular design of their software. He expresses optimism about the future of cannabis legalization and its potential impact on the industry, emphasizing their commitment to supporting their partners through this evolving landscape.

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