Dave Charnick

This is a call to all California Cannabis Operators: If you're concerned about being profitable, need help with upgrading equipment or processes, if you are looking to get more yield from your canopy space- please reach out to me. If you work as a grower or IPM manager at one of these facilities and struggle to keep your crops from improving their overall output, I can provide a referral credit for making an introduction. Verne Bioanalytics uses a host of solutions, each custom fit to your specifications, we will customize a solution to keep your crops pest and infection free plus we can help with overall plant health and efficiency. Quit wasting money guessing what's wrong, let us test and diagnose and provide an answer this WEEK and not in a few months when you're losing money due to process inefficiencies and lack of strong SOPs. We employ AI and humans to tackle the largest issues in cultivation today. DM me for a quick intro to what we can do for you.

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Collaboration is key in the ever evolving cannabis space, especially in markets like California where regulatory and financial challenges push even the biggest players to innovate. From legacy farmers to large-scale operators, companies are realizing the power of joining forces! To navigate this, more and more companies are joining forces. Whether it's working with labs to generate new SKU’s or partnering with retailers to reach new consumers, the cannabis community is finding strength in unity 🌱 🍯 The California market is a true example of ‘survival of the fittest’ where those who collaborate are best positioned to thrive. As we see more co-creation efforts, the future of cannabis looks brighter, more unified, and full of opportunity! The photo below captures a great example of this: a collaboration between Punch Edibles & Extracts, HUCKLEBERRY HILL FARMS, and Humboldt Kine! More and more companies are teaming up to produce incredible products and generate a sense of community as they navigate this challenging landscape together! Here’s to seeing more partnerships that uplift the industry ☀

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The cannabis industry is booming, but let’s be real—hemp is clearly the MVP. In 2022, the hemp market raked in a whopping $28 billion, leaving the marijuana market trailing behind at “only” $26 billion. Who knew that while marijuana was out trying to look cool, hemp would quietly take over? Sure, marijuana has had its time in the spotlight with all the hype, dispensaries, and Instagram influencers. But hemp’s the one doing the real work, showing up everywhere from wellness products to eco-friendly materials, and let’s not forget all those everyday items people don’t even realize have hemp in them! It’s the true underdog story of a plant that doesn’t need all the flashy lights to make a big impact. While marijuana’s been focused on recreational fame, hemp’s been building a sustainable empire. It’s a jack-of-all-trades, fitting right into personal care, health products, healthier intoxicating products(than alcohol), food, textiles—you name it, hemp’s in it. So while the marijuana market is hanging out in dispensaries and waiting for its next big state to legalize, hemp’s already in the pantry, the medicine cabinet, and probably the clothes on your back. Just go into a marijuana dispensary and take a look around: it’s the usual suspects—standard CBD and THC products, nothing new. Meanwhile, the hemp industry is leading in real innovation with a whole array of natural cannabinoids. Delta-8, CBG, CBN—the options keep growing, with products designed for focus, relaxation, and everything in between. The hemp market is also adding other popular herbs and combining them with unique CBC, THCV, CBN, and CBG blends far before marijuana operators even think to. It’s no wonder they’re trying to shut us down—hemp’s raising the bar on every front. So while marijuana’s riding on reputation, hemp’s the one rolling in the real success, staying ahead of the curve, and keeping things interesting. #hemp #hempissmarter #cannabisindustry #hempindustry #minnesota #florida #wisconsin

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Your First Cannabis Store Costs 3x Your Second It's not just because you invest in the build-out and set-up the first time. You don't repeat. … Although that's part of it. It's because of the investment it takes to build systems Revenue tracking Assortment planning Buying strategies Liquidation practices Inventory SOPs Hiring frameworks Role descriptions Compensation structures Marketing calendars Promotional plan Loyalty programs Customer review captures E-commerce merchandising plans To name a few. Every time you do it, you become more efficient and have an opportunity to optimize it. Scale impacts system complexity: <$3M store vs. $10M store 1-3 stores vs. 5 stores vs. 20+ stores As you grow, your systems need to evolve to meet new challenges. We share tips and tricks for these systems in the Vetrina newsletter.

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Department of Cannabis Control’s ‘inadequate oversight’ of $100M undermined California's licensing program for cannabis growers, according to California State Auditor Grant Parks. Parks determined the DCC ‘weakened’ the Local Jurisdiction Assistance Grant (LJAG) Program. The state’s LJAG Program, approved by the California Legislature in June 2021, provided the one-time funding source to aid thousands of small, legacy and equity cannabis businesses in complying with a state environmental mandate, which would enable them to transition from provisional to more permanent annual licenses. The whole provisional licensing program is “kaput” at the end of 2025, meaning cannabis cultivators who haven’t transitioned to annual licensure will find themselves up a certain creek with no paddle, Executive Director Genine Coleman of Origins Council -- a nonprofit that advocates for roughly 900 small, independent cannabis businesses and homestead farming families, primarily in the rural areas of Northern California -- told CBT. Read the full story by CBT Editor Tony Lange here: https://lnkd.in/eaxiecrw

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NEWS: "Curaleaf joins marijuana multistate operators pivoting to hemp-derived THC" reported MJBiz It's not hard to understand that more and more companies are pivoting to hemp because the market provides interstate commerce (i.e a bigger market), lower cogs, less regs & taxes and is growing faster than the legal state markets. As someone who was very negative on hemp, and all in on the legal state markets, I have completely changed my perspective and I encourage others to consider the same. Few months ago Beau Whitney put out an estimate that the intoxicating hemp market was $28B and the legal state markets were $28B. With less headwinds preventing the growth of the hemp market it's highly likely that the US intoxicating hemp market has now eclipsed the legal state markets and is probably going to continue to grow rapidly eating away at the legal state markets. Have a strong opinion held lightly.

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A follow-up to yesterday's post on the unsustainability of cannabis cultivation: "whenever possible, grow outdoors" This is a passage from famed indoor breeder and grower DJ Short's book. Seems simple right? Just replace indoor grows with outdoor grows and problem solved? Unfortunately it isn't that easy. The main issue is unintentional genetic effects from the war on drugs. Allow me to explain. The drug war drove breeding indoors. Rounds and rounds and rounds of selective breeding under highly controlled environments means outdoor adaptive traits were lost (read: pest/disease resistance, drought and stress tolerance, ect). It's not the plants' fault. It's not breeders' faults. It is what it is. However, don't expect to plant acres of Cali dispo hype strains outside and be successful. Add the complexity of states outright banning anything but indoor, or microbial tests that essentially prohibit outdoor. Add the perceived quality differences in grow styles ingrained in the culture and the consumer. THIS is why we desperately need genetic improvements. This is why we need S3 Genetics This is why we need #BetterCannabisThroughScience

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The other three California cannabis testing labs that lost permits are: NCALC, doing business as THC Analytical: License revoked on Dec. 20, 2023. Salinas-headquartered ProForma Labs: License revoked on Feb. 16. Northridge-based California Cannabis Testing Labs: License canceled on July 24. Most of the revocations stemmed from THC-potency inflation and sloppy lab practices. But state regulators revoked ProForma’s permit after a reference lab discovered chlorfenapyr – a banned pesticide – in a product the lab had approved for retail sale. ProForma Labs did not report detecting any chlorfenapyr, according to the DCC’s revocation notice. Read entire article @ https://lnkd.in/gCdHMhFs #cannabistestinglabs #thctesting #bannedpesticices #californialabshutdown #cannabislabtestinglicenses

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U.S. Cannabis Industry 2024: Growth Trends, Product Innovations, and Operational Challenges Unveiled LeafLink's latest report comprehensively examines the evolving cannabis industry, highlighting key trends, challenges, and opportunities. With shifting consumer preferences, increasing state-level legalization, and expanding product innovation, the report provides actionable insights for stakeholders across the supply chain. Key takeaways include: 1. Market Growth: Continued expansion despite regulatory hurdles, with emerging markets gaining traction. 2. Product Trends: Premium products, edibles, and infused beverages are experiencing notable demand growth. 3. Operational Strategies: Efficiency and scale are critical as price compression impacts margins. The report is a must-read for anyone navigating this dynamic industry. What’s your take on these trends? 

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Energy Success Story: How One MA Cannabis Cultivator Slashed $3,000+ in Monthly Power Costs In an industry where margins are getting tighter by the day, I'm excited to share a recent win with a Massachusetts-based cannabis cultivation facility. Through strategic power contract negotiation, we helped them reduce their monthly electricity costs by over $3,000 - that's $36,000 annually going straight back to their bottom line! Why Cannabis Cultivators Need to Act Now: Energy costs typically represent 30-40% of operational expenses; Massachusetts electricity rates are among the highest in the nation; Rising competition is squeezing profit margins; Many growers are locked into unfavorable legacy contracts from when they first opened The Reality Check: Many cannabis operators signed their initial power contracts during their facility buildout, often accepting whatever rates were available just to get up and running. With the market maturing and energy costs soaring, it's crucial to revisit these agreements. Quick Tips for Cultivators: -- Review your current contract expiration date -- Start shopping rates 6-12 months before renewal -- Compare fixed vs. variable rate options -- Consider time-of-use programs -- Evaluate on-site generation possibilities Are you a cannabis operator looking to reduce operational costs? Let's connect and explore how you can optimize your energy spending. Drop a comment or DM me to learn more! #CannabisIndustry #EnergySavings #Cultivation #CannabisBusiness #Sustainability #OperationalEfficiency

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Def a click-baity headline - but somewhat true... Anytime a legislator uses the word "hornswoggled" - you start to understand how this happened. BUT I've always maintained - if you're in the cannabis industry and NOT considering hemp, you're prob making a mistake. Just like in trad'l retail - manage your various channels with different strategies. Don't sell the exact same thing for cheaper online (duh - but I feel it needs to be said). Ideally, sell something completely different - the majority of the buyers of Hemp D9 shoppers are NOT regular dispensary customers. Maybe even a diff brand name (as I’m guessing CURA is doing ) _________________________________ Like Curaleaf (H/T Boris Jordan ) Curaleaf, America’s largest cannabis company... is launching a line of beverages with a low amount of Delta-9 THC. AND they're going against the US Cannabis Council on this. “We would prefer that it’d be one regulatory framework for all cannabinoids,” Jordan said. “We’re at that point in time right now with the hemp industry where there needs to be some rules put around what you can and can’t put into these products.” Boris is on the record as saying he thinks THC beverages will ultimately be the biggest category LT... Implicit in that statement is the expectation that current non-cannibas users will move heavily into the category (NOT that smokers will stop & move to drinks). bc as any marketer worth their salt knows - it is SOOOOOOO much harder to get people to change behavior. If you can give them something very close to what they're getting now (but better), your chances are a gajillion times higher for success (+/- 1%). So getting drinkers today to try a THC bev that they can buy where they already shop... and have a nicer buzz, and an even better morning... That's kinda what's happening in the THC bev space rn. _____________________________ Yesterday was a set-back - prob driven by the USCC and other special interests. Unfortunately, it also hurts consumer access - and likely props up the illicit market. As we've seen in NY - our current law enforcement isn't resourced to deal with something that has proliferated over the past year. And honestly, is that where they should be spending their time? On something, adults have shown they enjoy and with few / no issues (NOT talking about gas station gummies).

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The Cannabis Data Companion Guide for 2024 is here! 🌿 Whether you're an ancillary cannabis business or exploring new opportunities, this free eBook is your roadmap to navigating market trends, state regulations, and emerging growth strategies. 📖 What’s Inside? ✅ Market insights for top-performing states ✅ Key data on legalization trends ✅ Actionable strategies to scale your business 👉 Download your FREE copy today and stay ahead of the competition! 🔗 https://hubs.la/Q02_cxJz0 #CannabisData #CannabisBusiness #MarketInsights #CannabisTrends #B2BData #DataTrends #CannabisCommunity

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Curious about the evolution of the cannabis industry in Colorado? 🌿 Discover insights on market size, regulations, and the impact of outdoor cultivation in our latest podcast episode. Don't miss out on this in-depth discussion! #CannabisIndustry #Colorado #CannabisRegulations Wana Brands

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Holistic Approach to Revenue Operations A common error in management is compartmentalizing sales, marketing, and operational roles too rigidly: that all teams are aligned and working towards common goals. Marketing should generate leads that sales can close effectively, while operations should ensure fulfillment capabilities match sales efforts. Recognize that while sales teams are directly responsible for driving revenue, other departments like marketing and PR play crucial supportive roles that prepare the ground for sales to succeed. Each function strengthens the other, and their activities should be integrated rather than segregated

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Expectations expectations it’s all about expectations The longer section about expectations and backstage behavior Make no assumptions about prior understanding. Lay it out, stick to it, keep working towards priorities #camnabisindustry #expert 🌱🌱🌱strive to thrive🌱🌱🌱

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Is HLVd Killing the Cannabis Industry? Check out my latest article on HLVD and if you want to read the entire article with a free eradication plan/SOP head over to growworld.com! Here's a sneak peak: Understanding Hop Latent Viroid in Cannabis: Identification and Management Hop Latent Viroid (HLVd) stands as a prominent concern for cannabis cultivators globally. Despite its diminutive size, this infectious agent possesses the capability to inflict significant harm on cannabis crops if left unaddressed. Acquiring a comprehensive grasp of HLVd, discerning its symptoms, and executing effective management protocols are imperative for upholding the health and productivity of cannabis plants. What is Hop Latent Viroid (HLVd)? HLVd represents a single-stranded, circular RNA molecule classified within the Pospiviroidae family. Contrary to its nomenclature, this viroid impacts not only hop plants but also a variety of other crops, including cannabis. Devoid of a protein coat, HLVd relies on the host's cellular machinery for replication and primarily disseminates through contaminated plant material, tools, and water sources. Symptoms of HLVd Infection in Cannabis: Detecting HLVd infection in cannabis plants can be intricate due to symptoms that may vary based on factors such as strain, environmental conditions, and coexisting pathogens. Nevertheless, several common indicators may hint at the presence of HLVd: Stunted Growth: Infected plants typically manifest diminished vigor and growth in comparison to healthy counterparts, characterized by delayed development and reduced overall size. Leaf Deformities: Anomalies in leaf growth, encompassing curling, twisting, and cupping, are common in infected plants, affecting both new growth and mature foliage. Discoloration: Leaf yellowing or mottling, particularly along veins, serves as a prevalent symptom of HLVd infection, with variations in intensity and distribution. Reduced Yield: Infected plants commonly exhibit lower yields relative to healthy ones, with decreased flower and resin production significantly impacting the economic viability of cannabis cultivation. Identifying HLVd: While visual inspection may offer initial insights, definitive diagnosis of HLVd necessitates laboratory testing. Techniques like reverse transcription-polymerase chain reaction (RT-PCR) or loop-mediated isothermal amplification (LAMP) can identify viroid-specific RNA sequences in plant tissue samples. Management Strategies: Upon detecting HLVd, immediate action is imperative to curtail its spread and minimize crop damage. Effective management strategies encompass: Quarantine and Removal: Swiftly isolate infected plants to prevent further contamination. Eliminate and dispose of affected individuals, including roots, stems, and leaves, to eradicate potential sources of HLVd transmission. Check out the rest of my article on LinkedIn and growworld.com!

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Why are value brands and high end brands dominating the cannabis space? It’s the natural progression of a commodity CPG product: Phase 1: Price Shopping The market is new. Supply has not met demand. Goods are overpriced and most shoppers buy the most THC they can, for the least amount of money. Novelty goods move well becuase there is still novelty in dispensary shopping, but there isn’t a ton of differentiation in SKUs. In general, consumers are not smoking as much as they would like. They come into a dispensary with $100, get a half oz or less, and wish they left with more. Phase 2: Value Shopping The market is somewhat mature. Supply has met demand but not necessarily outpaced it. Shoppers are searching for the best intersection of price and quality (aka value). Overpriced novelty goods start to die out, and good brands begin to differentiate themselves. In general, customers are smoking close to their fill every day, but they don’t have a ton of extra cash to try new things. They come into a dispensary with $100, get a cheap oz from a brand they trust or a half oz of nicer product, plus an infused preroll or two, and feel pretty damn good about their purchase. Phase 3: True CPG Shopping The market has matured. Supply has exceeded demand and prices are near the long term ‘true cost’. Shoppers repeatedly buy from brands they trust becuase they provide consistent value. They have ‘daily smoke.’ High end goods that demonstrate consistent value begin to take up a larger portion of baskets. Why…? Becuase customers can finally get as much product as they want for the $100 they walk in with, PLUS a lot more than a couple infused prerolls. They come into a dispensary, spend $60-70 on an oz or a premium half, and still have $30-40 to spend! What are they spending it on? PREMIUM PRODUCTS. They toss in a jar of Jeeter, a 710 Pod, or a Cookies 1/8th… Lastly, becuase dispensaries (and the brands they carry) have diversified and build their menus strategically, when a customer has $3.50 left, out of the $100 they walked on with, the store can capture that as well. Retailers need to make sure their budtender sales process integrates with this type of behavior. Are they letting customers know what their ‘running total’ is before they get tot the close of the transaction, so the customer can max out their spend? Do you have a variety of $10 or less items to fill in those gaps? Do you have a solid offering of premium products in the $20-40 range that your budtenders are incentivized to sell as add ons? Likewise, brands in developing markets need to do their part to ‘arm’ retailers with a line of products that serves the shift in behavior we’ve seen in developed ones. Start thinking more about MSRP and use that to justify your cost targets and wholesale pricing. Position your brand as a daily solution or a premium treat, or be lost in the muddle of the middle. More than anything, PROVIDE CONSISTENT VALUE. The rest will follow.

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Instead of wine, let’s look at craft cannabis vs craft beer, which holds 24.7% of total US beer market share at retail! This means craft cannabis will be the same? Right? Not really… At wholesale, (where they actually make their money) craft brewers only hold 13.3% of sales. In some ways, yes, there are models in this category that could be feasible for cannabis companies to follow, (Tilray thinks so…) But that’s the point….TILRAY is the #6 ‘craft brewing’ company in the country… Simply put, ‘craft cannabis’ doesn’t equate to ‘craft beer’. “Craft Brewers” are defined by the Brewers Association as: SMALL Annual production of 6 million barrels of beer or less (approximately 3 percent of U.S. annual sales). Beer production is attributed to a brewer according to rules of alternating proprietorships. INDEPENDENT Less than 25 percent of the craft brewery is owned or controlled by a beverage alcohol industry member that is not itself a craft brewer. So… you can own 3% of total national market share, and Anheuser Busch can own 25% of your company, and you’d still be considered a craft brewer. This includes companies like: Boston Beer Co. (2,793 employees), $2B in sales Sierra Nevada (1,050 employees), $320M in sales Tilray , (1,600 employees*), $152M in sales *includes cannabis employees One vital point being missed in the comparison between wine and beer and cannabis… we have to note that both wine and beer exist in complex supply chains, wher the grower of the grape very often may not bottle or brand (i.e.selling bulk), and where beer requires hops and barley, which are grown by farmers. So… who are the cultivators in this scenario? The brewers? Or are they barley farmers?

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