Making Sense of Confusion in the Cannabis Industry Today

By Dan Garms

The cannabis industry has exploded over the past 10 years. Cannabis has gone from being a mere speck on the map in 2011 to becoming a massive $17.5 billion sales power in 2021. However, this growth presents some thorny issues.

The rapidly changing markets are creating a lot of confusion among growers, producers, distributors, sellers and consumers. The marketplace as a whole is only now starting to settle from a series of challenges most of its players have never faced before. This article offers a way to cut through the confusion in the cannabis space.

The Cannabis Industry Today

Even with billions of dollars in sales, federal law still puts the brakes on industry growth. Although legislation permits cannabis usage in 36 states, businesses still have to face the frustration of its classification as a Schedule 1 drug. In other words, it remains technically unapproved for use.

Despite this official restriction, in 2014, President Obama directed the Department of Justice not to interfere with state laws permitting the sale, cultivation or possession of cannabis. Unfortunately, the Trump administration returned to the former path of enforcing federal statutes.

With a turnover in control of both Congress and the White House, your cannabis prospects brightened once again. President Biden stated his support for both the decriminalization and legalization of medical cannabis.

Legislation Updates

In the House of Representatives, Judiciary Committee Chair Jerry Nadler reintroduced the MORE Act, legislation aimed to legalize cannabis. Senate Majority Leader Chuck Schumer also gave his support to cannabis reform. While the justification for the act is based on increasing social justice, passing it will also greatly benefit the cannabis industry.

However, until the MORE Act is voted in, state laws governing cannabis form a crazy quilt. Regulations range from total prohibition to allowing both medical and recreational legal use. In many states, laws are actively in dispute. Navigating this obstacle course presents you with many complications as you try to market to this industry.

Another piece of legislation crucial to the cannabis sector is the Secure and Fair Enforcement Banking Act (SAFE). Like the MORE Act, it has been around Congress for years and may gain new life under the current administration.

Current banking regulations create barriers to normal ways of doing business. They restrict how the industry can finance operations and limit sellers to cash-only transactions. SAFE would provide more access to banking services.

While changes in federal regulations are in limbo, confusion reigns.

Cannabis Trends

From US statistics gathered in 2020, cannabis sales increased 67%. Across the nation, legalization support was at 68%, an all-time high. Communities hardest hit by the drug war crave relief. Other findings to consider include:

  • 12% of Americans use cannabis.
  • The industry was worth $61 billion in 2021.
  • Senior-level salaries increased.

Unfortunately, in the pandemic economy, capital raises also declined 67%. This drop can give advantages to large companies with established sources of capital.

Mature markets like California and Colorado continue to see sales increases. States like Illinois, which expanded their medical markets, present considerable growth opportunities as well. New state laws provide more freedom to create more products. Edibles, THC, CBD, vaping and other options pave the way to innovation. Whether with gummies, oils or pain-relieving compression wraps, the growth possibilities appear endless.

Succeeding with Prospects in the Cannabis Industry Today

If you’re looking for leads in the cannabis industry today, you have every reason for optimism. Cannabis stocks have become a safe harbor. Recently, cannabis stocks saw double-digit gains. Since mid-March, a rise in demand led to positive trading. The upward trend continues to this day.

Companies attempting to develop supply chain connections or market to industry participants need to both learn and master the rules that keep them out of trouble and more easily identify target prospects. There are both broad and specific regulations and laws that may or may not apply to your business or business activities.  

For identifying prospective vendors, partners and buyers, you’ll need a database source, like MNI. That’ll ensure you stay current with the cannabis sector’s ever-changing requirements.

Before you move forward with your program, understand the nuances associated with this specific niche:

  1. Building a strong company culture. That will include locating sources to service human resources, payroll and staffing. If they provide training and education, you will build a stable core you can depend on and promote from within.
  2. Making quality number one. When you consider a new prospect, make sure that their offerings won’t disappoint. By learning market trends, they can take action on solid data. You don’t want them to chase an idea if they can’t successfully follow through. In a fast-moving market, one crash and burn can turn off their customers.
  3. Developing realistic timelines. Lots of companies in the space are relatively new and need time and nurturing. If they need a reliable outside consultant to analyze your business situation, they should hire one. In an arena where trust is already shaky, a company must deliver on its promises. Access to the right expertise will help it come through.
  4. Finding a source of reliable information. Your marketing is only as good as your data. The right tools can cut through a lot of busy work and help structure your sales process.

The bottom line is that there are significant rewards to market entrants in this industry. But those rewards are not without risk. Understanding and adapting to the evolving legal and regulatory framework can mean the difference between success and failure. Having a comprehensive industry database available to you and your team can help cut the complexity of reaching the right partners, vendors and prospects

MNI’s North American Cannabis Industry Business Database can provide you with the timely information you need to easily find prospects in the cannabis industry today and speed your entry into exciting new opportunities. To try out a free demo of the database, click here.

Seven Business Tools and Resources for Thriving in the Cannabis Industry

The cannabis industry is currently one of the most promising sectors in terms of growth and job creation. Legalization efforts at the state level have paved the way for the cannabis boom we’re seeing, and the marijuana industry could be worth $30 billion by 2025.

The following resources will help you navigate and market to an industry where things can change rapidly and where federal regulations can limit access to crucial business services.

Legal information

So far, cannabis has been legalized in a total of 34 states. It’s important to keep up with the latest regulations to make sure compliance requirements are met.

DabConnection.com has a page dedicated to sharing licensing information for each state. You’ll also find relevant links to government websites that you can use to educate yourself and suggest resources to your prospects.

Banking solutions

The cannabis industry is legal at a state level. However, federal law still criminalizes the sale of marijuana products.

The federal government also regulates banks. This means that banks can’t offer business accounts to this industry without facing criminal charges. The SAFE Act introduced in 2019 could address this challenge. However, it could be years before marijuana businesses have access to traditional banking products.

For now, state-chartered credit unions are the best alternative to recommend to your leads. The Department of Financial Protection & Innovation has a database where cannabis companies can browse state-chartered credit unions.

Cashless payment options

In 2020, cash payments represented 12% of all transactions. Indeed, customers would rather use a credit or debit card. There is also a growing interest in mobile payments.

It’s not possible for cannabis businesses to offer these payment options (see above).

However, with a point of banking (POB) or cashless ATM solution, clients can make a withdrawal in-store with a card. The business will get a voucher for that amount. You can learn more about POB solutions here so you can be well-informed and well-equipped to provide value to your leads.

Insurance for the cannabis industry

Marijuana businesses often have complex insurance needs. Coverage for things like crop insurance and product liability should be customized to the industry.

There are companies like S2S Insurance that work with cannabis businesses. Our North American Cannabis Industry Business Database has more options to explore as well.

Marijuana surety bonds

Some states and cities require marijuana businesses to post a surety bond. This bond guarantees that they’ll follow the rules. If the business breaks the rules, the state or city will collect on the bond.

Surety bonds can be expensive. However, the business isn’t responsible for the total amount. They can pay premiums to a surety bond company that will cover the full amount of the bond if the need arises.

There are different companies to consider, including the ProSure Group or Surety One Inc. There are more options listed in our database too, so you can give your prospects a vast array of options and resources.

Marketing resources

Pay-per-click ads can be a great way to increase awareness for a cannabis business. However, options are limited for this industry since Google Ads bans ads for marijuana products.

There are alternative options to amplify ads. Networks like Mantis Ads or Traffic Roots specialize in monetizing cannabis-related websites. Companies can use these networks to target users in a specific area and bring more foot traffic to their dispensary.

A good marketing campaign shouldn’t stop at PPC ads though. Check out this comprehensive guide to local SEO for other strategies you can suggest to boost your prospect’s foot traffic.

Cannabis-friendly tech stack

The right tech stack creates a modern operation. The main obstacle cannabis businesses face when choosing tech products is that few developers offer the unique features that they need in this industry.

Here are some of the products to suggest so your leads can build a performing tech stack:

  • A POS system with features like ID verification and purchase limits tracking is a must-have tool. Green Bits and Cova Software are popular options.
  • Platforms like Dutchie or Weedmaps allow companies to offer deliveries and curbside pickup for a COVID-19-friendly experience. These tools also offer inventory syncing features.
  • Greenhouse and Gusto are popular HR products.
  • Canix is the go-to enterprise resource planning solution for cultivators and manufacturers. This platform has unique features like Bluetooth scale integration and seed-to-sale tracking with RFID tags.

We created the North American Cannabis Industry Business Database to help cannabis businesses find resources tailored to their industry. As you market and appeal to these businesses, knowing the complexity of the industry and being able to offer relevant resources will show your prospects that you have the knowledge and capacity to help them. A subscription will give you access to detailed business profiles with contact information. You can browse for a wide range of business categories, including suppliers, labs, financial services and more.

Click here to try out a free demo or set up a free, no obligation phone consultation with our Brand Ambassador Kati!

MNI to Host Free Webinar on Discovering New Leads in the Cannabis Industry

Kati McDermith, Brand Ambassador for MNI, will be hosting a free educational webinar, Tuesday, June 29th, at 1:00PM CST. In this 45-minute presentation, Kati will be providing an overview of the North American Cannabis Industry Database, the ultimate business database profiling 11,000+ companies and more than 13,000 decision makers in the North American cannabis industry. The database is available as an IndustrySelect subscription from MNI, the industrial information source since 1912.

Click here to try a free demo of IndustrySelect

The U.S. cannabis industry continues to expand and evolve, with the industry’s global market value expected to hit $66.3 billion by the year 2025. Powered by MNI data, IndustrySelect is the ultimate tool for discovering new opportunities in this rapidly growing market.  

This will be Kati’s first webinar for the North American Cannabis Industry Business Database and will demonstrate how sales and marketing professionals can leverage powerful MNI data to build a pipeline of industrial leads in the lucrative cannabis industry. Topics covered include:

• How to build a list of pre-qualified leads by geography, industry, and size
• How to export, save, and share lists
• The basics of researching company profiles
•Tips for targeting ideal companies

Kati has decades of experience in lead generation across many different verticals, from party supplies to mail order prescriptions to fasteners. She began using IndustrySelect in 2011 when she was generating leads for an industrial supply company and was so impressed with the quality of the data and ease of use that she decided to work for MNI and show others how to use it.

Kati has been MNI’s Brand Ambassador since January and prior to that served as MNI’s Sales Training Coordinator. Her popular weekly IndustrySelect webinars illuminate the many functions of IndustrySelect for better prospecting, sales, marketing, and business development.

“It is my passion and my goal to support Lead Generators in achieving their goals in what can all too often be a brutal and thankless job,” says Kati.

Click here to register for the webinar or to grab a spot on Kati’s calendar and set up a free phone consultation, follow this link.

To learn more about purchasing the North American Cannabis Industry Business Database, visit MNI.  

MNI to Showcase North American Cannabis Industry Business Database at Cannabis Expos This Summer

MNI is pleased to announce that it will be showcasing the North American Cannabis Industry Business Database live and in-person at two Cannabis Industrial Marketplace events in Chicago and Michigan this summer.

June 24th and 25th, MNI will be at the Chicago-area event, held at the Odeum Expo Center in Villa Park and will occupy booth 245. The Michigan event will be held July 13th and 14th at the Soaring Eagle Resort and Casino in Birch Run, MI. See MNI at booth 210 at the Michigan expo.

“We are excited to be taking part in the upcoming Cannabis Industrial Marketplace expo in Chicago on June 24th and 25th,” says Michael Reilly, Associate Vice-President of Data Research at MNI. “It is a great opportunity for any company that is looking to do business in, or already doing business in the cannabis industry. Come out to our booth (245) to see how our flexible, in-depth data can help you advance your business in this rapidly growing industry.”

MNI participated in the virtual cannabis expo in December 2020 when most live events were canceled due to COVID restrictions. The live upcoming events provide a renewed opportunity for participants to get an in-person look at what the North American Cannabis Industry Business Database has to offer.

The  Cannabis Business Expo is a major networking event, bringing together all types of cannabis industry professionals. The Chicago event features over 50,000 square feet and will exhibit the latest in cannabis production technology, including the latest cultivating and processing technologies for cannabis and hemp. The Expo will be hosting dozens of seminars lead by industry experts covering licensing, production, banking, hiring, and more.

At these events, MNI will be presenting the North American Cannabis Industry Business Database, providing an in-person look at the database. Available as a database subscription through IndustrySelect, the database provides detailed profiles of 11,000 businesses in the cannabis industry and 13,000 direct executive contacts. Applying the same exhaustive research methods MNI has refined over a century, the company’s data researchers conducted a sweeping analysis of the thousands of start-ups, growers, suppliers and service providers that currently populate this ever-growing market.

For those interested in attending the expo, click here to access discounted tickets to the Expos through Groupon.

As cannabis legalization continues to sweep the nation, the market for legal cannabis is expected to hit a value of $97.35 billion by the end of 2026, representing a compound annual growth rate of 32.92% in the forecast period 2019 to 2026.

Purchasers of the North American Cannabis Industry Business Database can access top-level executives and detailed company profiles that can be directly exported to a CRM or address book. Detailed explanation of the various subscription options can be found here.

Want to Explore the New Cannabis Database Right Now?

The best way for interested subscribers to check out the new North American Cannabis Industry Business Database is to try out our free, one-day access. Call 800-221-2172 today to learn more or contact your sales rep.

To schedule a phone consultation with MNI’s Brand Ambassador, Kati McDermith, click here.

Not an IndustrySelect subscriber yet? Click here to learn more about IndustrySelect can give you access to live data on 500,000 U.S. industrial businesses and one million executives for prospecting, sales, marketing, business development, recruiting and more.

About MNI

At MNI, our mission is to help U.S. businesses thrive, providing custom industrial data for sales, marketing, business development, purchasing, procurement and sourcing.

For Industrial Prospecting: IndustrySelect provides access to MNI’s database of 500,000 U.S. industrial businesses on a subscription basis, providing detailed profiles of each company. Subscribers can select up to 40 data points on any industrial company in the U.S. to help identify or pre-qualify leads.Company profiles also include the contact information for hard-to-find executive decision-makers. Click here to try out a free demo.

For Industrial Sourcing: Visitors to IndustryNet can set up a free user accounts, build custom lists of potential suppliers, send quote requests, download company catalogs, view company photo and video libraries, and more. Click here to start your free search. IndustryNet is also a direct path for U.S manufacturers to increase their visibility among domestic industrial procurers. Learn more about our marketing solutions.

MNI’s North American Cannabis Industry Business Database to Debut at the Virtual Cannabis Expo Dec. 9th and 10th

MNI is pleased to announce that it will be showcasing the North American Cannabis Industry Business Database at the 2020 Virtual Cannabis Industrial Marketplace Summit & Expo December 9-10.

The Cannabis Business Expo is a major networking event, bringing together cannabis industry professionals and follows a similar model to in-person expos of the past. Featuring a number of live events, including virtual show floor exhibitor booths, live educational and networking sessions, round table discussions and one-on-one chats with other participants, this year’s expo is among the top cannabis business events of the year. The expo’s live educational seminar sessions include valuable topics such as legislation and licensing, growing techniques, branding, insurance processing and more.

At the event, MNI will be presenting the North American Cannabis Industry Business Database, providing educational videos, live demos and more. Available as a database subscription through IndustrySelect, the database provides detailed profiles of 11,000 businesses in the cannabis industry and 13,000 direct executive contacts. Applying the same exhaustive research methods MNI has refined over a century, the company’s data researchers conducted a sweeping analysis of the thousands of start-ups, growers, suppliers and service providers that currently populate this ever-growing market.

For those interested in attending the expo, MNI is providing a discounted rate. Click here to save 25% on tickets to the Cannabis Business Expo.

With cannabis legalization sweeping the nation, the market for legal cannabis is expected to hit a value of $73.6 billion USD by the year 2027, making it a lucrative and growing market.

Purchasers of the North American Cannabis Industry Business Database can choose between four tiers of access to fit their budget, with top-level access including direct executive email addresses and phone numbers, where permitted, that can be directly exported to a CRM or address book. Detailed explanation of the various subscription options can be found here.

Want to Explore the New Cannabis Database Right Now?

The best way for interested subscribers to check out the new North American Cannabis Industry Business Database is to try out our free, one-day access. Call 800-221-2172 today to learn more or contact your sales rep.

Not an IndustrySelect subscriber yet? Click here to learn more about IndustrySelect can give you access to live data on 500,000 U.S. industrial businesses and one million executives for prospecting, sales, marketing, business development, recruiting and more.

As always, we love to hear from our customers. Do you have feedback or have a question on the new database or on any IndustrySelect product? Send us an email.

About MNI

At MNI, our mission is to help U.S. businesses thrive, providing custom industrial data for sales, marketing, business development, purchasing, procurement and sourcing.

For Industrial Prospecting: IndustrySelect provides access to MNI’s database of 500,000 U.S. industrial businesses on a subscription basis, providing detailed profiles of each company. Subscribers can select up to 40 data points on any industrial company in the U.S. to help identify or pre-qualify leads.Company profiles also include the contact information for hard-to-find executive decision-makers. Click here to try out a free demo.

For Industrial Sourcing: Visitors to IndustryNet can set up a free user accounts, build custom lists of potential suppliers, send quote requests, download company catalogs, view company photo and video libraries, and more. Click here to start your free search. IndustryNet is also a direct path for U.S manufacturers to increase their visibility among domestic industrial procurers. Learn more about our marketing solutions.


These States Just Voted YES For Legal Cannabis (UPDATED)

Updated, November 4th, 2020.

Four years ago, what has been coined a “green wave” swept across the U.S. during election season, resulting in a large number of U.S. states that legalized recreational cannabis use. This set the stage for additional states to follow suit and created a boon for the market, which saw sales of legal marijuana hit $6.7 billion that momentous election year.  

Fast forward to 2020, and the U.S. has seen green wave round two, with five new states voting on cannabis legalization. This comes as no surprise as consumer demand for cannabis continues to surge – even more so during the coronavirus pandemic. Additionally, cannabis tax revenue has been a boon for many state and municipal pocketbooks that have suffered from lagging tax revenue amid the COVID-19 crisis.

Today, we’re going to take a look at the states that put legal weed to a vote on election day. But first, let’s take a look at the results of the first green wave, specifically the states where cannabis is legal for recreational use.

Which U.S. States Have Legalized Recreational Cannabis?

33 U.S. states now have legal cannabis for medical use, and in eleven of those states, cannabis is approved for recreational use.

  • Alaska
  • California
  • Colorado
  • Illinois
  • Maine
  • Massachusetts
  • Michigan
  • Montana
  • New Jersey
  • Nevada
  • Oregon
  • South Dakota
  • Vermont
  • Washington

You can read more about where cannabis is legal for medical use here.

States That Voted on Legal Cannabis in November 2020

As mentioned above, five new states have been added to that list on November 3rd.

New Jersey: VOTED YES

Like many U.S. states right now, New Jersey is facing a major budget shortfall: a whopping $10 billion shortfall to be exact. New Jersey’s last vote on legal cannabis failed to deliver but given the potential hundreds of millions in tax revenue legal cannabis could yield, many were hoping the bill might just make it through.

This time around, a majority of New Jersey voters approved the measure to legalize recreational cannabis.

Arizona VOTED YES

Interestingly, Arizona voted on cannabis legalization back in 2016, but the measure was struck down with “no” votes from a little over half of the state’s voters. Opponents to that bill included a pharmaceutical company and strangely, tire company Discount Tire, which donated $1 million to oppose the legalization bill.

However, since 2016, the cannabis industry has become even more powerful and this time, Arizona’s legalization bill has some backing from some major cannabis companies.

On November 3rd, the legalization of recreational cannabis won by a large margin in the state of Arizona.

Mississippi VOTED YES (MEDICAL CANNABIS ONLY)

Mississippi is the poorest state in the U.S. with a per capita income of $20,670, but the state is hoping to help reverse it fortune, or at least boost its tax coffers, by voting on legalizing medical marijuana use come November.

The measure passed, allowing patients with debilitating conditions to legally obtain medical marijuana based on doctors’ recommendations. With the new bill, growers and dispensaries will be taxed at 7%, drawing an estimated $750 – $800 million in tax revenue by 2024.

South Dakota (VOTED YES)

Up until now, states voting yes to legal weed have largely been “blue” states. Now, South Dakota was among the first Republican states to throw its hat in the cannabis ring, with both medical and recreational cannabis on the roster this election season.

The estimated potential tax revenue of $29.3 million from the sale of cannabis was sure to have captured the interest of legislators in the state. This is a state that many in the cannabis industry have been keeping an eye on and the results are in. 62% of South Dakota residents voted yes for South Dakota’s Measure 26 to legalize the sale of recreational cannabis.

Montana (VOTED YES)

Meanwhile in Montana, a bill to legalize recreational cannabis was met with robust approval by voters, with the state’s MT Initiative 190 to Legalize Marijuana capturing 56.6% of the vote. Montana proposes a 20% tax on cannabis sales in the state, a move that would bring in an estimate $48 million in revenue for the state by the year 2025.

Conclusion

Soaring consumer interest in cannabis combined states and municipalities’ growing need for tax revenue, has propelled the legal cannabis industry into even greater momentum. At MNI, we’ve compiled an entire database of businesses in the cannabis industry and have seen the numbers of companies involved in the industry increasing by the day. Between growers, producers, dispensaries, equipment and service providers, our prospecting database for the cannabis industry now stands at 11,000 companies and 13,000 decision makers.

Read more: Announcing the New North American Cannabis Industry Business Database

What is the North American Cannabis Industry Database? This is the cannabis industry’s first-ever business database profiling over 11,000 companies & 13,000 contacts in the North American cannabis industry. Perfect for prospecting, sales, marketing, business development, recruiting and more. Click here to learn more.

Will The Coronavirus Pandemic Help Speed Cannabis Legalization?

The prospect of legal cannabis has dominated headlines in recent weeks, as a significant number of states deemed cannabis dispensaries and businesses “essential,” which means they were allowed to remain open as the coronavirus outbreak caused an unprecedented shutdown of the nation’s businesses and workplaces.

As detailed by MNI in its ongoing analysis of coronavirus and manufacturing, a number of industries were allowed to remain open, despite “stay at home” directives issued by multiple state governments. These “critical infrastructure” industries such as food processing, chemical manufacturing, steel mills and the like have been deemed critical to the nation’s survival.

Likewise, essential businesses deemed vital to the public’s well-being such as pharmacies, grocery stores, liquor stores and hardware stores have been allowed to remain open.

Interestingly, for many states, cannabis businesses have fallen into this same “essential” business category, which some say is the industry’s “big” moment as this critical move has served to further legitimatize cannabis use and begs the question: if cannabis is grouped in the same “essential” group as pharmacies and liquor stores, might legalization be around the corner?

The answer? Possibly. Perceptions of the cannabis industry’s legitimacy vary widely from state to state and it’s hard to predict whether the current raft of states that have embraced cannabis as a legitimate industry will be enough to tip the scales on a federal level. Currently, cannabis use is legal in eleven U.S. states while thirty-three other states allow some type of medical use.

 For instance, In Colorado, the cannabis industry is a major part of the state’s economy, with the state garnering one billion dollars in tax revenue since legalization in 2014. Yet in a state like Texas, a person could be incarcerated for 180 days for possessing as little as two ounces of cannabis. Finding common ground amid such widely varied perceptions state to state, is of course, the main challenge of legalization on a federal level.  

While many industries have suffered and shed jobs amid the coronavirus crisis, cannabis sales are soaring as consumers stock up for a long wait at home, underscoring the industry’s burgeoning reputation as a job creator and a powerhouse industry. According to Leafly, cannabis-related jobs have increased 15% over the past year, currently employing 243,000 workers in the U.S.

In short: the cannabis industry’s resiliency and relevance in this time of crisis may help in the push for legalization.

 But is anyone even thinking about legalization right now? Certainly, those in the industry are, but as the coronavirus outbreak continues to pummel the U.S., many states are pushing aside the legalization debate in order to focus on more obviously pressing matters. But consider this: according to Marijuana Moment, Governor Andrew Cuomo has credited the cannabis industry with coordination efforts between states as the coronavirus outbreak necessitated shutdowns. This is because the regional coordination infrastructure the cannabis industry established between states during legalization efforts has now served to benefit the regional coordination efforts amid coronavirus shutdowns. So although legalization has been pushed to the back burner for now, the industry continues to demonstrate its relevance.

In short, the general embrace of cannabis businesses in the age of COVID-19 is a feather in the industry’s cap and may serve to help legalization efforts in the future.

Are you a cannabis-related business or do you provide service/supplies to the cannabis industry? Make sure you’re listed in the North American Cannabis Industry Business Database so that new customers can find you! Learn more here.

How Coronavirus is Impacting the Cannabis Industry

The coronavirus scare continues to impact the global economy, causing disruptions to supply chains, wreaking havoc on travel and spooking the stock market.

As the virus continues to spread, we’ve been following the story closely at MNI, tracking the outbreak’s impact on the U.S. manufacturing sector.

Today, we’re taking a detailed look at the outbreak’s effect on businesses in the cannabis industry.

Supply Chain Disruptions

With so many companies reliant on foreign-sourced material, disruptions caused by coronavirus fears have exposed vulnerabilities in the global supply chains.

A number of industries rely on components, parts and ingredients from China. The cannabis industry is no exception.

For instance, consider that roughly 72% of pharmaceutical ingredients are manufactured outside the U.S., with much of that development occurring in China.

Hardware Shortages

Given the faced-paced nature of the industry and an ever-changing regulatory environment, supply chain challenges for cannabis businesses were an issue even prior to coronavirus.

Those sourcing from China were already dealing with uncertainty from an ongoing trade war, while the vaping illness scare caused setbacks for some companies.

Now, due to the coronavirus outbreak, many cannabis businesses that source hardware from China are faced with additional shortages and delays.

Cannabis companies are reporting supply disruptions specifically in hardware that aids in consumption, including vaporizer hardware, vape cartridges and even batteries.

Cannabis Events

We’ve heard reports of conferences and events being canceled by tech giants like Google and Facebook due to coronavirus, but trade events in niche industries like cannabis have felt the hit too.

Trade shows and public events have served as a vital component of the rapid growth of the cannabis industries, but now many businesses are seeing important events canceled.

Natural Products Expo West postponed its event in Ananheim, CA, as did CannaTech, a Tel-Aviv medical conference that focuses on health applications in cannabis.

Some events are still a go, such as the three-day Cannabis Conference 2020 scheduled in Las Vegas April 21-23.

Pot Stock Shock

Pot stocks suffered a setback in 2019 as supply shortages persisted in Canada and the rollout of legalization in some U.S. states did not prove as lucrative in high-tax areas that could not compete with black market pricing.

Now, the stock market continues to reel from a major selloff, losing roughly $6 trillion in value on coronavirus fears.

The cannabis industry has not been immune to the spooked market. Cannabis companies and ancillary industries that support the cannabis industry, such as makers of LED bulbs, are also feeling the pain.

Domestic Suppliers & Growers May Benefit

The good news? China seems to have succeeded in containing the outbreak, with a number of factories back online after several weeks’ hiatus.

Notably, though, new cases continue to appear in China, this time brought in by travelers returning from high-risk areas.

It’s also not a bad time for domestic suppliers of cannabis hardware and supplies.

Cannabis giant Curaleaf, as reported by Bloomberg news, recently bought $2 million worth of vapes from a domestic supplier – a quantity that should last the company about 5 months.

U.S. hemp producers stand to benefit from the China coronavirus-related slowdown, as reported by Hemp Industry Daily. China supplies a huge portion of the world’s hemp and CBD supply.

The coronavirus crisis could potentially turn this on its head, providing opportunity to American growers. Interested in reading more about businesses in the cannabis industry? Read our post 7 Innovative Businesses Supporting the U.S. Cannabis Industry.

Are you a cannabis-related business or do you provide service/supplies to the cannabis industry?

Make sure you’re listed in the North American Cannabis Industry Business Database so that new customers can find you! Learn more here.

7 Innovative Businesses Supporting the Fast-Growing Cannabis Industry

The U.S. cannabis industry continues to expand and evolve, with the industry’s global market value expected to hit $66.3 billion by the year 2025. The sector’s growing R&D efforts have lent greater legitimacy to cannabis use, beneficial for a spectrum of conditions, from epilepsy to glaucoma. Recreational use is becoming increasingly normalized with 33 U.S. states having legalized medical and recreational marijuana.

Central to the industry’s success is a whole host of cannabis businesses that support the unique cultivation, processing, packaging and marketing needs of the industry.

Through our exhaustive research processes, MNI has compiled profiles of more than 10,000 U.S. companies in the cannabis industry. Some are new cannabis-specific startups, while others have been around for decades, now expanding their offerings to help support cannabis business operations. This article will take a look at some stand-out companies that support everything from cultivation and processing to analytics and software.

Cultivation

Peat Inc., located in Elk River, Minnesota is a major peat supplier in the Midwest, drawing from 6,000 year-old Minnesota peatlands and has mostly served the golf and sports turf industries. In fact, Peat Inc. is the largest golf-course supplier in the Midwest. Peat, Inc. also supplies the horticultural world, servicing landscapers, nurseries and greenhouses. Peat, Inc has launched its foray into the cannabis industry, offering material that help germinate seeds faster and producing larger yields for crops. https://www.peatinc.com/products-and-services/horticulture/

iGROW Indictio Lighting, located in Beachwood, Ohio, is an agricultural lighting company, specializing in energy-efficient lighting systems. The company has supplied lighting systems for USDA, University and commercial agricultural industries for the past eleven years, and now supplies cannabis businesses with specialized grow lights for their operations. https://igrowlights.com/

Processing Equipment

Twister makes the world’s most advanced trimming machines for the cannabis industry using Siemens technology. The company’s T-Zero machine trims wet and dry plants at a breakneck speed (56,000 cuts minute or 600+ pounds per hour) The Siemens technology integration allows for full PLC automation and advanced customization. Companies like PharmHouse, Zenabis, and Organigram are just a few of the major cannabis companies that use Twister. https://www.twistertrimmer.com/t-zero/

Twister’s T-Zero Machine

Packaging

Collective Supply is a Costa Mesa, CA- based supplier of cannabis packaging providing growers and processers with custom packaging solutions for all types of cannabis products, “big or small”. Collective Supply’s packaging products meet required cannabis packaging ASTM and CPSC regulations. https://collectivesupply.com/

Consultants

Production Grower, located in Olympia, Washington, is a relatively new company, providing expert advice on the intricacies of growing cannabis. Production Grower’s mission is to support and advance the cannabis industry, providing in-depth information on growing high-quality, high-yield cannabis crops, equipment reviews, and cannabis product reviews. In addition to the free information available on their website, they are also available for individual consultancy. https://productiongrower.com/

For those focused on medical cannabis, Cannalytic Insights, LLC is an independent research and consulting company, providing vital information on how to launch medical cannabis products. Cannalytic Insights pools the talent of multiple consultants experienced in establishing major pharmaceutical brands to help medical cannabis start-ups launch their products. https://cannalyticinsights.com/

Software & Security:

Located in Burr Ridge, IL, Medlin, Inc. started out in 1986 installing phones and paging systems for technology companies and his since grown to become a major commercial systems integrator, providing comprehensive IT coverage for warehouse, industrial – and now, cannabis companies. Medline offers IT and security services to dispensaries and grow facilities, providing solutions for specific cannabis business issues and challenges such as product theft, video surveillance and seed-to-sale tracking. https://medlininc.com/

Get Top-Quality Data on the Cannabis Industry.

Are you seeking potential partners in the cannabis industry? The North American Cannabis Industry Business Database provides profiles of 10,000 cannabis-related companies, from growers to lawyers, packaging to payroll. Our in-depth database was built using the same data verification processes refined and perfected by MNI over a century in the manufacturing sector.

The Cannabis Industry Business Database will be available in March of 2020. Join our waiting list and you will be notified as soon as the database goes live.

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