Diane Kessler

Now that Thailand has walked through the ring of fire - and cannabis is delisted and medical use encouraged - its time to learn from the West's mistakes. Thailand should 1. Make all non-medical cannabis a violation of regulation and 2. Make all medical weed meet high quality standards. This is how medical eats recreational: by decree!. Decree: All legal weed is medical and all medical weed is subject to rigorous testing. Then the black market is where you find all the ditch weed. There is still no special tax on legal weed in Thailand. Keep it that way. Make testing affordable and transparent. Do you think this is realistic? Remember: Thailand is not stuck with the rec vs. medical legal distinction the way the West is.....

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Cannabis startups are DEF a rollercoaster - 2 wks ago I was reeling from several gut punches... but today, things are looking bright: ✅ LOTS of new products in the pipeline that I'm SO pumped about... our Live Resin Vapes drop in NY before 710 and they're 🔥 🔥 🔥 . A bunch more new stuff I can't reveal them yet too… ✅ in NY, LIVE NUGS are in almost completely sold out - with most places re-ordering after < 2 wks selling a $100+ SKU! We’re getting a ton of inbound interest - shows that innovative products that deliver real value sell. Still early, but we should 2-3X our best month ever... NY as a market feels like it’s FINALLY getting its footing (hope I’m not jinxing us here). ✅ in CA, we've signed 4 MONSTER accounts since HoF and our new SKUs (esp Live Rosin Pre-Rolls and Live Rosin Vapes) are FLYING... it's painful for our cash flow to be scaling to meet demand, but feeling very positive about the turnaround in the most challenging state. About to sign up for the next big show in Sept… ❓thinking about expansion - though it's still early (wanna make sure our foundation & processes are solid in CA / NY)... but what potential partners should we be talking to in NJ for cultivation / processing / sales & distro? HMU via DM pls... None of this would be possible without our incredible team (Martin Mills, Cirona Labs, Peter Pietrangeli, Euphoric life , Lowell Farms Inc.) and our amazing retail partners. In general, I try not to get too high or too low - but feeling immensely optimistic about the state! Gotta celebrate the wins - as tomorrow I'm fully expecting to be punched in the face again LOL. BTW, in the rollercoaster analogy - which part is “good”? I assume it’s when you’re going downhill (despite Kevin Hart’s face)?! But then when we talk about life’s ups and downs or highs and lows - it’s the opposite right? Make it make sense?!

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Saturday Cannabis Thoughts: With all of the closures happening every day, the one thing I have not seen is our industry mates calling out those who are doing "it" right. Too often we over look the "wins." Going to take a moment to shout out Green Meadows in Southbridge as they are always bumping whenever I walk in. Every visit, the Medical counters are just as busy as the Adult-Use side. They run amazing deals for great product, have a beautifully catered menu that reflects the community's needs. They listen and take down feedback from patients and customers. Are they cheapest? Nope! It's a beautiful balance of quality and value, with excellent customer service by their informed staff. Not to mention their dedication to local veterans, LGBTQIA+ community and overall support of the neighborhood. Here's a suggestion for those in our industry struggling: go visit those like Green Meadows who are killing it. Listen to other shoppers and their interactions with staff for awhile. You might learn something new instead of staring at data sheets and going off gut-reactions. There's a name for it: Field Research.

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When it comes to hiring hire a cannabis processing consultants, here are 5 big ways I can help: 1. Compliance with Regulations Think about it: The cannabis industry is highly regulated, with laws varying significantly by location. Staying compliant is critical to avoid fines or shutdowns. Your Benefit: A consultant ensures your processing operation meets all legal requirements, including safety, testing, packaging, and labeling standards. 2. Process Optimization Think about it: Efficient production processes can reduce costs, improve yield, and enhance product quality. Your Benefit: Consultants bring expertise in refining workflows, selecting the best equipment, and implementing scalable systems for long-term growth. 3. Cost Savings Think about it: Mistakes in equipment purchasing, facility design, or workflow can be costly. Your Benefit: A consultant can guide you in making informed decisions, avoiding unnecessary expenses, and identifying cost-saving opportunities. 4. Product Development Expertise Think about it: Creating unique, high-quality cannabis products can set your brand apart in a competitive market. Your Benefit: Consultants can help with formulating new products, improving existing ones, and ensuring they align with market demands. 5. Industry Connections and Insights Think about it: The cannabis market is dynamic, with constant changes in consumer preferences, technologies, and regulations. Your Benefit: A consultant provides access to valuable industry networks, market trends, and the latest innovations, giving you a competitive edge. By discussing projects and leveraging consulting when appropriate, businesses can avoid pitfalls, enhance operational efficiency, and achieve faster, more sustainable growth. At least thats my .02, what do you think? Are there benefits to consultants or are most of them just blowing smoke?

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🚨 Cannabis Industry, Wake Up: The Cost of Quality is Real 🚨 We’ve all seen the headlines. Massive recalls rocking the cannabis industry left and right. The reality? Quality isn’t just some fancy concept for industry conferences. It’s about survival in the cannabis industry. If you're not taking the "Cost of Quality" seriously, you’re gambling with your business. When a recall hits, it’s not just a bad day at the office—it’s a financial bloodbath. We're talking lost revenue, operational chaos, compliance nightmares, lawsuits, and most importantly, lost consumer trust. The expenses don’t stop with the recall; they ripple through every part of your operation, dragging down profits and reputation alike. Here’s the hard truth: we need to do better. Quality isn’t something you check off a list—it’s day-to-day, process-to-process risk management. It’s about identifying weak spots before they become liabilities and keeping your operation running like a well-oiled machine. The solution? Integrated quality programs, with state specific compliance aren’t just for Fortune 500 companies—they’re for every single player in this space. It’s about protecting your bottom line, yes, but it’s also about avoiding disaster, hurting your consumers, and compliance. Embedding quality management into your company culture isn’t optional anymore; it’s a non-negotiable. Hiring a Quality team is like buying a good insurance policy. A solid QMS, with integrated Process Improvement is about more than compliance—it’s about consistency, reliability, and protecting your brand. Stop thinking of quality as a “cost” and start treating it like an investment in your future. You wouldn't by a Ferrari and get liability-only insurance! This industry is evolving fast, and if you’re not willing to up your game, you’ll find yourself on the wrong side of a recall notice. Take it from our predecessors in the food and consumables industry, we have to get proactive and build quality into everything we do, from seed to sale. I am so glad that I work for a quality-centered organization! #CannabisIndustry #QualityMatters #CostOfQuality #CannabisRecalls #RiskManagement #ContinuousImprovement #GrowWithQuality

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Michigan cannabis sales are up “only” 2.2% YoY. Prices have dropped 24.2% YoY. Lots of people are sounding the alarm, but what does this really mean? WE SOLD 35% MORE UNITS YoY! Consumers still spent the same amount on weed, they just bought (a lot) more of it. This is the same trend we’ve been seeing for years. Your margins are shrinking on a per unit basis. To maintain profitability, you’ll have to sell more units. Consumers are happy to oblige. For a cultivator with limited amount of capacity, who can’t just conjure up more units without a massive infrastructure spend, this is an issue, but there are creative ways to continue to scale without investing in more lights. No, we aren’t seeing massive top line growth, but isn’t that a good thing? At this point, wouldn’t most Michigan operators choose stability over rapid growth at the expense of per unit profit? Don’t we generally see lower prices for the consumer as a good thing? (Yes, I know every other good has gotten more expensive while cannabis hasn’t- but that’s what happens in a brand new commodity market with an agricultural supply chain that takes years to develop.) This data set was published on the same day as news that Fluresh is closing its massive cultivation facility in Adrian, Michigan- and while the closure of a facility and the loss of jobs is nothing to be celebrated - the data and the news (on top of the rapid price compression we’ve seen recently) seem to mark a turning point in the industry. Several truths will become highly evident: Strong brands and lean operators will win out- because customers have more financial freedom to choose VALUE vs PRICE. Good partnerships will dominate- becuase they are able to scale (and operate) more efficiently than standalone competitors. Distribution is everything- becuase this is a volume game. CEOs who aren’t afraid to make the hard decisions will survive- becuase hard decisions will have to be made wether we like it or not, and how fast we respond to the facts in front of us could determine the survival of our companies.

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Pricing in cannabis is kinda wild. You can spend $30 on 1oz of flower. You can also spend $250 on 1 oz. The difference comes down to perceived quality. That also applies to concentrates. 1g concentrates are $8-$65. Rosin is considered the highest tier of concentrate quality, so it's usually ~$30-60/g. There are minimal discounts on bulk buying rosin. Customers want the best quality so you typically see buying just 1-3g at a time. ... Why am I sharing the above info? Because it still shocks me to see how a customer can be so happy and content with the decision to spend $300 on 5g of concentrates when the customer next to them is spending $40. Consumers will pay a lot for top shelf. Eastside Alchemy survives as a company because of that. What's the most expensive/cheapest you've ever paid for an ounce of weed?

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🌿✨ Happy Green Wednesday! ✨🌿 As we approach the Thanksgiving holiday, it's time to celebrate Green Wednesday—an exciting day for the cannabis community! This day has quickly become one of the busiest in the cannabis industry, comparable to Black Friday in retail. Why is Green Wednesday important? 🔹 Increased Awareness: It’s a fantastic opportunity to educate consumers about the benefits of cannabis and promote responsible use. 🔹 Community Engagement: Local dispensaries often host events and special offers, fostering a sense of community and encouraging dialogue around cannabis. 🔹 Economic Growth: Green Wednesday supports local businesses and contributes to the growth of the cannabis sector, creating jobs and stimulating the economy. Let’s take this opportunity to promote responsible consumption, highlight the positive impacts of cannabis, and support local businesses. Whether you're a seasoned enthusiast or new to cannabis, there’s something for everyone to enjoy responsibly this Green Wednesday! Wishing everyone a safe and enjoyable holiday season! #GreenWednesday #CannabisCommunity #ResponsibleUse #LocalBusiness #CannabisIndustry

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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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California tax revenue from cannabis has declined each of the last two years from a peak of 2021. (Source:DCC) Where do we expect 2024 to finish? It sure seems to be a broken system, with very few profitable operators. The state is trying, and AB 2223 will be a pivotal moment for the industry. Many brands have given up, and are finding better margins and consumer access in hemp, that allow them to do basic things like make payroll. I voted in favor of prop 64. At the time, I had faith that the state supported profitable industry to boost the economy and provide jobs. I didn't believe they had altruistic motives to improve access to a beneficial plant. I didn't think the mismanagement would be so bad that the industry would already be in a decline 3 years into it. Question: How much tax revenue would we generate for the state if we had low-dose cannabis beverages accessible everywhere alcohol was? How much would we need to tax cannabis beverages to achieve their goal? Allowing adult beverage producers, distributors and retailers to freely sell low-dose cannabis beverages isn't competing for revenue from the dispensary channel. People buy beverages where they already are. Someone ordering a Coke at McDonalds or a Red Bull at a concert wasn't going to buy the same drinks at a grocery store later that day. Please tell me where I'm wrong, or your ideas to fix this decline -

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Elevating New York Cannabis: A Clean Start with Gen Zero Tissue Culture Excited to see more microbusinesses taking root in NYS! With indoor flower on the horizon, there's incredible potential to revolutionize cannabis cultivation. Here's why starting with Gen Zero tissue culture clones might be your next big move: 🧬 Why Tissue Culture? Cannabis, as an annual plant, operates with a finite genetic lifespan. Cutting a clone from a mother plant does not reset its genetic clock; the clone carries the exact DNA of its source. Over time, the DNA in mother plants experiences breaks and deterioration, similar to how aging affects humans. This natural aging process, combined with environmental stressors, increases the risk of genetic drift (subtle but impactful changes in genetic expression) and mutations that can compromise the quality and consistency of your harvest. By starting with Gen Zero tissue culture clones, you bypass these risks entirely. Tissue culture provides a fresh start, delivering plants that are: - Pathogen-free: No lingering bacteria, fungi, or viruses. - Genetically true-to-type: Consistent characteristics from one plant to the next. - Vigorous and healthy: Free from the stress and wear accumulated in older plant generations. With tissue culture, you're ensuring that your cannabis plants grow with their genetic integrity intact, producing high-quality flower with every harvest. Don’t let aging genetics limit your operation—start clean and grow strong. 🌱 💰 Save Time, Space, and Money Operating a mother room is costly. Consider this: - Nutrients & Media: $500+/month - Power & Lighting: $1,000+/month - Water Usage: $300+/month - Labor Costs: $2,500+/month With Gen Zero clones, you can eliminate the mother room entirely, saving thousands annually while increasing operational efficiency. No mother plants mean reduced biosecurity risks since the perpetual operation of mother rooms makes them hotspots for pests and pathogens​​. 🌟 Your Path to Premium Flower Start clean and finish strong. Tissue-culture-derived clones from The New York Nursery guarantee uniform growth, consistent yields, and a superior end product. Whether you're growing for flavor, potency, or terpene content, our clones deliver​​. 🛠️ Let’s Grow Together Explore your options with us today and bring the best of science to your craft. We're here to help NY microbusinesses succeed! 📩 Reach out to The New York Nursery now. Start your journey with Gen Zero clones and cultivate with confidence. #NewYorkCannabis #TissueCulture #CannabisInnovation #CleanStart #GenZero #CannabisFarming #SustainableCannabis #CannabisCultivation #Microbusiness #GrowWithConfidence #CannabisScience #Biosecurity #PathogenFree #PremiumFlower #CannabisTech #NYSCannabis #FutureOfFarming #ConsistentQuality #CannabisMicrobusiness #StartCleanGrowStrong

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🌿 **The Art of Cannabis Selection: Why Terps Matter More Than THC** As someone who buys cannabis based on how it smells, how it burns, bag appeal, and price, I firmly believe that Terpenes (Terps) are more important than THC content. It’s easy to sell flower based on the lowest price or the highest THC percentage, but truly understanding and selling based on flavor and effects requires knowledgeable budtenders. This deeper level of expertise helps consumers make better choices tailored to their preferences and needs. At Erva Inc., we offer a wide variety of products to ensure we have something for everyone. Our commitment to quality and diversity in our offerings stems from our belief in the power of education and experience. We put our money where our mouth is and stand behind all of our products, ensuring each item meets our high standards for excellence. Let’s foster a market where terps and overall quality take precedence over just the numbers. Here’s to more flavorful, effective cannabis experiences! 🍃 #CannabisCommunity #TerpsOverTHC #QualityOverQuantity #CannabisEducation #ErvaInc #Wellness #FlavorfulCannabis

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In this current climate of the cannabis industry the only thing we can control is ourselves. Its time to Embrace the power of home growing! In a world dominated by big grow operations, cultivating your own plants at home isn't just a hobby—it's a statement. Take control of your food, your environment, and your health. Let's nurture sustainability and resilience from the ground up. #HomeGrowing #Sustainability #Empowerment"

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Controversial opinion: Loyalty programs are largely a wasted investment in Cannabis/Grocery if you're focused on multiple states/national expansion. Too costly for what you get in return. Customers will still switch based on price and are not loyal enough to your store. People, price, and place matter more here than marketing $. Loyalty programs only matter in small markets where you can better focus on experience>price. Largescale, it's very hard to keep that experience consistent. Margins can become too slim when you multiply. I'd rather follow Aldi's model. I always know I get the lowest price. I don't need to follow any gimmicks to get what I want, I'm confident it just happens. Reinvest those marketing dollars back to your customers. Lowest prices win in grocery. Look at Walmart's success. Same logic for cannabis. I'd love to hear any comments about why you disagree with my opinion.

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The #cannabisindustry seems to be interested in HubSpot!!! Love it! 💚 The cannabis industry had grown leaps and bounds since I joined back in 2016. (2016!!!!??? It can't be that long... can it? 🥺😱🧓) I have seen the industry go from hiring only stoners and burners, to hiring the top executives from other industries. No longer is cannabis business done on the couch. It's grown up, put an clean shirt, and at least works from the kitchen table 😅 With professionalism, comes the software to track, implement, and grow. HubSpot has been one of the many tools in my tech stack that have helped me grow business and keep the team on the same page. What features of #HubSpot do you and your team use the most? Do you use it for #B2B or #B2C? Are there any features you wish were better tailored to the cannabis industry? 🍃 What other software providers are in your trlech stack? 🥞

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Benzinga Cannabis takeaways: 1. Talked to a few marketing agencies as I continue to think growth at a reasonable cost is one of the most important metrics in cannabis. - One agency talked about how they could help my business achieve a 10x return without much substance or details as to how they're able to achieve such an outsized return. - Another, checked in with me personally, talked about aligning interests between our businesses and wants to explore a strategic partnership. The latter, was received much better. Wish agencies would stop flashing high level big return numbers without meaningful detail and case studies to back it up. I smell bs. 2. Majority of folks think Florida passes recreational cannabis in November. However, I now understand 5 and maybe 10MG hemp intoxicating products will still be allowed for sale in Florida even if they take a more restrictive stance on hemp. I'd love to increase exposure to Florida operators however I'm not certain the ballot will reach the 60% it needs to pass. 3. No one knows about rescheduling. Not even worth hearing opinions on it as the government continues to be a rather black box on when and how this will happen. Show me time. Enough talk. 4. Prohibition has never worked and it won't work with intoxicating hemp products. This was a lightbulb moment for me because it's true. Intoxicating hemp products are here to stay and at worst we will see some sensible regulation which would still make the market more attractive than the non-sensible regulations in the legal state markets. 5. Equity capital is still very restrictive however more companies achieving profitability and righting the ship. Some large pensions sniffing around and may make a play. Debt lenders out in force. I stay away from those financing options. 6. Some investors not even interested in new limited market states because they know all to well that markets continue to follow a pattern of explosive revenue and high margins to slower growth, oversupply, increased competition and margin compression as everyone fights for their piece of the market. Wise take. I've passed on entering new markets because the early value achieved is short lived. 7. Border town dispensaries in MI are crushing it. MI has better product, pricing and taxes than IL and dispensaries on that boarder are enjoying strong foot traffic and large basket sizes. 8. Beverages. Really showing up and all have positive feedback from their launch into the intoxicating hemp market. Larger TAM, bigger POs, better payment terms. What's not to like? 9. Really awesome people. The cannabis community, despite many bad actors, has one of the best communities and is what keeps most of us in the industry. Free the plant | People > Profits | Plant Medicine ☘

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"The results are in, the votes tallied, and we’re ready to announce who took home awards in 18 different states." Congrats to my colleagues at the Upstate Elevator Operators, and the Green State Dispensary. Vermont Leafly Budtenders’ Choice 2024—Best strain of Vermont: Grape GMO A double hitter with Upstate Elevator Operators winning for best strain and best brand! The living soil efforts have certainly paid off here with a beautiful, chunky bud plant that has the smell of funky, fermenting grapes and heavy, musky GMO. If that sounds a little less than appetizing, it seems that just one whiff is enough to get smokers excited and reports say it doesn’t take much more to get you majorly stoned. UEO say the high here is a creative and relaxed experience that does have a strong onset. They’ve also taken this strain and crossed it to RS11 to create something they call Grape Nigel. It’s clear from the buds that Grape GMO is the result of an extensive pheno hunt UEO went through and it’s only fitting that they refer to this strain as a “terpene-laden, living soil masterpiece.” Leafly Budtenders’ Choice 2024—Best flower brand of Vermont: Upstate Elevator Operators History is often important in cannabis and Upstate Elevator Operators have been a part of Vermont’s cannabis scene since 2015 when they started as a cultivation supply store. In 2017 they created Upstate Elevators to offer CBD wellness to their state and beyond. As 2022 came and Vermont legalized cannabis, UE was ready to begin offering living soil cannabis products to consumers as Upstate Elevator Operators. Their strain collection has some unique cultivars as well as some nation-wide favorites. It’s not often you see a brand that’s growing both Zoap AND Soap, alongside Triangle Kush and Larry OG. Not just flower, UEO also makes gummies, chocolates, capsules and live rosin vapes and all the product testing is easy to find on their comprehensive website. Being a budtender means offering background info to customers about the brand and the product, Upstate Elevator Operators make that easy to do and Budtender’s in Vermont have shown love in return.

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