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Sweet Sensi vs. CENTEX CBD

Written by texashempreporter on . Posted in News. No Comments on Sweet Sensi vs. CENTEX CBD

(article published late august 2024)

CenTex CBD, LLC v. LoneStar Farms, LLC d/b/a Sweet Sensi CBD

In a high-stakes legal battle that could shape the future of hemp innovation in Texas, CenTex
CBD, LLC and LoneStar Farms, LLC (operating as Sweet Sensi CBD) are locked in a dispute over
trade secrets, intellectual property, and allegations of unethical conduct. The lawsuit, which
centers on competing claims of misappropriation and breach of trust, has significant
implications for both companies and the rapidly evolving hemp industry in Texas.


How We Got Here?
The conflict between CenTex CBD and Sweet Sensi began after what initially seemed like a
routine business issue. After a year of working together and spending over $50,000 on
products, CenTex CBD received an order of gummies from Sweet Sensi that was not only the
wrong color but also had double the labeled potency. The labeling error, which was Sweet
Sensi’s responsibility, prompted CenTex to reach out about the discrepancy. Instead of
resolving the issue through dialogue, CenTex was met with a Cease and Desist letter sent by
Attorney Lisa Pittman from Pittman Legal the same day, which legally prevented any further
communication with Sweet Sensi directly and, for the first time, accused CenTex CBD of stealing
trade secrets. Cent Tex asserts that Ms. Pittman prevented any kind of reasonable, timely
resolution by not communicating any offers from CenTex CBD to Greg Autry of Sweet
Sensi or even responding to communications from CenTex CBD for multiple weeks. Instead, Ms.
Pittman informed CenTex CBD that she would not communicate with CenTex CBD directly.

Her actions forced CenTex CBD to hire an attorney and take legal action for any resolution at all.
Following this letter, CenTex’s attempts at communication were allegedly ignored by Pittman,
who failed to pass on offers for resolution to Greg Autry, Sweet Sensi’s founder. Following this
letter, CenTex’s attempts at communication were allegedly ignored by Pittman, who failed to
pass on offers for resolution to Greg Autry, Sweet Sensi’s founder. However, the Texas Hemp
Reporter spoke to Adam Gregg, from CenTex CBD, he has confirmed that “no offer was made.”

Pittman’s refusal to engage in meaningful discussions forced CenTex to hire legal counsel and
escalate the matter, transforming a simple business disagreement into a full-scale legal battle
over intellectual property and trade secrets.

 
Sweet Sensi’s Allegations: Protecting Proprietary Information
At the core of Sweet Sensi’s claims is the accusation that CenTex CBD misappropriated their
proprietary rosin-based production methods to create competing products, including delta-8vape cartridges and rosin-based gumdrops. According to Sweet Sensi, their patent-pending
technology for producing rosin products was shared with CenTex CBD under the terms of Non-
Disclosure Agreements (NDAs). These agreements were intended to protect Sweet Sensi’s
confidential business methods and trade secrets, ensuring that their proprietary knowledge
would not be used without their consent.

Sweet Sensi claims that CenTex CBD breached these agreements by using the confidential
information to develop and market its own rosin-based products. They argue that this
constitutes a clear violation of intellectual property law, as CenTex is now directly competing
with them using the very processes they pioneered. Sweet Sensi asserts that their rosin-based
products represent a significant investment in research and development, and they are seeking
to hold CenTex accountable for what they view as unfair competition.

From Sweet Sensi’s perspective, this case is about protecting the integrity of their business and
ensuring that other companies cannot profit from their innovation without facing legal
consequences. They see CenTex’s actions as a deliberate attempt to undermine their position in
the marketplace by using their proprietary technology without permission.

CenTex CBD’s Defense: Allegations of Overreach and Unfounded Claims
On the other side of the courtroom, CenTex CBD presents a very different narrative. CenTex
contends that Sweet Sensi’s accusations are exaggerated and unsupported by clear evidence.
According to CenTex, their company has always acted with integrity, developing its products
independently without relying on any proprietary information from Sweet Sensi. They view the
lawsuit as an attempt by Sweet Sensi to stifle competition, using intellectual property claims as
a tool to block CenTex from selling its own innovative products.


CenTex argues that Sweet Sensi’s claim to exclusive ownership of rosin-based production
methods is overly broad and legally questionable. They maintain that rosin production is a
widely known technique within the hemp industry, and the methods used by CenTex do not
infringe on any valid trade secrets or intellectual property owned by Sweet Sensi. From
CenTex’s perspective, Sweet Sensi is using the legal system to intimidate a competitor rather
than address a genuine legal dispute.

Moreover, CenTex has pushed back against discovery requests made by Sweet Sensi, which
they argue are excessive and invasive. Sweet Sensi has demanded access to sales figures,
financial records, and advertisements, which they claim are necessary to prove the extent of
the alleged misappropriation. CenTex, however, believes that Sweet Sensi is engaging in a
fishing expedition, asking for information that goes beyond what is relevant to the case and
placing an undue burden on CenTex’s operations.

Discovery Disputes and Allegations of Spoliation

One of the more contentious issues in the lawsuit involves discovery disputes between the two
companies. Sweet Sensi has accused CenTex of failing to provide key documents, including
profit and loss statements and advertisements, which they believe could help prove their claims
of trade secret theft. Furthermore, Sweet Sensi has alleged that CenTex deleted social media
pages and advertisements that could have served as critical evidence in the case, a charge that
has escalated into accusations of spoliation—the deliberate destruction of evidence.
CenTex, for its part, denies these allegations, arguing that any changes to their social media
presence were part of routine business operations and not an attempt to destroy evidence.
They insist that they have complied with discovery requirements to the best of their ability and
that Sweet Sensi’s accusations of spoliation are unfounded.

The Ethical Dispute: Lisa Pittman and Wyatt Larew
The legal battle between the two companies took an unexpected turn with the involvement of
Lisa Pittman, Sweet Sensi’s attorney, and Wyatt Larew, a key expert witness for CenTex CBD.
Larew had previously had an attorney-client relationship with Pittman and later testified that
Pittman made improper contact with him after learning that he had been retained as an expert
witness for CenTex.


According to Larew’s testimony, Pittman called him on June 10, 2024, and tried to dissuade him
from testifying on behalf of CenTex, citing her financial interest in the case and even suggesting
that Larew should prepare for potential legal consequences if he continued in his role as an
expert witness. Larew described the conversation as intimidating and felt that Pittman was
attempting to coerce him into stepping down.

CenTex seized on this testimony, filing a Motion for Sanctions against Pittman for allegedly
violating ethical standards. The court ultimately agreed, ruling that Pittman’s communication
with Larew was a violation of Texas Disciplinary Rule 4.02(b), which governs communication
with represented parties. As a result, the court imposed sanctions, barring Pittman from
deposing or cross-examining Larew during the trial.

Court Rulings and Sanctions – LETTER HERE: 24-080924 ORDER on Motion for Sanctions-1
The court’s decision to sanction Pittman was a significant victory for CenTex, bolstering their
claims that Sweet Sensi’s legal team had engaged in unethical conduct. However, the broader
dispute over the alleged misappropriation of trade secrets remains unresolved, with both sides
continuing to argue their positions as the trial approaches.

While CenTex celebrates the sanctions against Pittman as a validation of their stance, Sweet
Sensi continues to argue that the core issue—the protection of their proprietary
information—has not been fully addressed. Sweet Sensi maintains that CenTex has yet to
account for its alleged misappropriation of rosin-based production methods and that the case is
far from over.

The Stakes for the Hemp Industry
This legal battle between CenTex CBD and Sweet Sensi carries significant implications for the
hemp industry in Texas. Though CenTex may appear to be the David in this scenario—smaller in
size and resources compared to the industry giant Sweet Sensi, the Goliath—the outcome of
this case could set important precedents for how trade secrets and intellectual property are
protected in the rapidly evolving hemp space. As more companies invest in proprietary
production methods, the legal framework around innovation and intellectual property will be
critical in determining how businesses compete.

For CenTex, this case is about defending their right to innovate and compete freely in the
marketplace, without being crushed by unfounded allegations from larger competitors. They
argue that Sweet Sensi is using its size and influence to block CenTex from making a name for
itself in the market. On the other hand, Sweet Sensi sees the lawsuit as a necessary step to
protect their innovations and ensure that competitors do not misuse confidential information
or infringe on their proprietary methods.

As the trial date approaches, the confrontation between these two companies will likely shape
the future of intellectual property disputes in Texas burgeoning cannabis and hemp sector. The
court’s ruling will set a legal precedent, not just for CenTex and Sweet Sensi, but for how
intellectual property protections are enforced across the state’s growing hemp market.

Texas Hemp Show : 186 THC Beverages

Written by texashempreporter on . Posted in Podcast.

Christopher Lackner of US Hemp Bevg. Alliance.

 

Hemp beverages are seltzers, sodas, mocktails, coffees, teas, and other drinks that contain an infusion of hemp-derived cannabinoids, terpenes, or fibers. Common cannabinoids include CBD and THC, but other “minor cannabinoids” can also be incorporated.

RAIDED BY ALLEN PD FOR HEMP

Written by texashempreporter on . Posted in Cannabis News.

On Tuesday, August 27th, Allen Police raided nine hemp shops, accusing them of selling illegal
products containing higher-than-allowed levels of THC. Texas Hemp lawyer David Sergi, who
represents eight of the nine store owners, stated that his clients were operating legally under
both Texas and Federal law.

San Marcos-based attorney Sergi emphasized that his clients are being accused of
manufacturing and distributing illegal tetrahydrocannabinol (THC) products, but under current
state and federal guidelines, the products they sell are legally permissible.


Who is at Fault?
While many argue that the Allen Police Department overstepped by executing search and
seizure warrants, there is a broader context. The DEA had been conducting a joint task force
investigation, targeting similar shops less than a month prior. Subpoenas were issued to several
of these same store owners earlier in the summer, with the DEA seeking access to financial
documents, customer transactions, and supplier lists—requests that Sergi claims violate the
Fourth and Fifth Amendments to the U.S. Constitution.

Sergi, who previously helped overturn a statewide ban on consumable hemp products,
successfully defended his clients against these subpoenas. In that case, a federal judge ruled
that the DEA could not obtain the requested information, marking a significant victory for the
businesses involved.

“This is straight out of a Russian KGB novel or a mafia gangster film,” Sergi remarked,
comparing the heavy-handed tactics to fiction.
The stores recently raided, including Lit Smoke & Vape, Chasing Vapes, and Hazel Sky, are some
of the same businesses Sergi represents in ongoing legal battles with the Allen Hemp Coalition.
Fighting Back

AJ Velador, founder of Hemp Industry Leaders of Texas (HILT), is organizing a GoFundMe page
to assist with bond and legal expenses for those affected by the raids. Velador and his
organization aim to put an end to what they see as unlawful and disruptive actions against legal
hemp operators and retailers in Texas.

Sergi echoed Velador’s concerns, describing the raids as poorly conceived and
counterproductive. The coalition, comprised of small, family-owned businesses, provides
employment to many in the Allen area and serves customers in need of legal cannabinoids,
such as veterans and individuals suffering from pain and PTSD, as alternatives to opioids.
Sergi further warned that the city’s actions could inadvertently open the door for cartels to step
in with unregulated and dangerous products. Industry professionals, he said, strive to work with
law enforcement to ensure that compliant products are sold to adult consumers.

The Bigger Picture for Hemp Operators
The ongoing raids have raised several critical questions for hemp business operators. How is
law enforcement testing these products? Are they using the same standards that certified labs
use to issue Certificates of Analysis (COAs)?

These concerns are especially pressing as the hemp industry faces a new legislative session,
during which lawmakers are expected to address product labeling, packaging, and age
restrictions. The May 2024 hearing of the State Affairs Committee highlighted these issues.

Sergi & Associates Response

David Sergi argues that the actions of the Allen Police Department and the DEA represent a
clear escalation of tactics used across the state to intimidate businesses selling legal hemp-
based products. According to Sergi, the raids resulted in the destruction of products, the seizure
of point-of-sale systems, and the confiscation of personal computers belonging to
employees—all actions that he contends were unlawful.


“These businesses are operating legally under Texas law,” Sergi said. “There is a right way and a
wrong way to address compliance concerns, and they have chosen the wrong way. They will be
held accountable.”

The Allen Hemp Coalition, representing many of the affected businesses, is currently fighting in
court to uphold their legal rights to operate. Sergi and his team have already successfully stayed
a DEA subpoena they deemed a blatant “fishing expedition.”

HEMP INDUSTRY DINNER: Austin Texas

Written by texashempreporter on . Posted in Business.

Austin Chapter Dinner • Join us on September 6th

CLICK HERE TO RSVP TO THE DINNER MEETING AT NO COST:

Itinerary:

Join us on September 6th
6:00-6:30 PM: Drink, Appetizers & Meet and Greet
6:30-7:00 PM: Introduction
7:00-8:00 PM: Guest Speakers & Open Mic for attendees.
Questions, Comments, or Suggestions are welcomed

Guest Speakers:

Top TX Hemp Attorneys
Fellow Hemp Business Owners
Hemp Advocates

Location

Fogo de Chão Brazilian Steakhouse
200 Congress Ave., Austin, TX 78701

Date & Time

September 6, 2024, 6:00 PM – 9:00 PM

Objective:
We intend to establish Chapters throughout Texas to organize and utilize our combined networks to promote legislation that benefits the hemp industry. We plan to recruit fellow business owners to participate in vital organizational roles that will encompass promoting Delta 8 legislation and defense against the imminent threat to ban intoxicating hemp in Jan 2025, Win the hearts and minds of Texans through positive marketing of our Industry, as well as charitable contributions such as feeding homeless and community service initiatives all while collaborating with leading advocacy groups in Texas. By working together, we’ll be empowered to demonstrate our strength to Texas legislators in terms of Tax dollars and registered voters, which will be our biggest weapon in the long term.

It’s time to prepare for the imminent threat to ban Delta 8 and THCa in January 2025.

We’re NOT asking for money, only your support! It’s time for Dallas & North Texas to help

at the state and federal level.

Texas Hemp Show: Returns ESPN Austin

Written by texashempreporter on . Posted in News.

The Texas Hemp Show podcast will return to the local air-waves this
September in time for the NFL Kickoff and 2024 regular season.

Previously airing on both Waterloo Media properties , KLBJ 590 & ESPN Austin 102.7 FM; Dowden and crew will be heard this fall on Sundays from 11am – 12pm just in front of the NFL Gameday syndicated crew at ESPN.

Host Mike Greenberg will join the returning analysts – Super Bowl Champions Teddy Bruschi and Rex Ryan, Pro Football Hall of Famer Randy Moss, three-time Pro Bowl quarterback Alex Smith on most of the regular season programing at the 12 O’Clock hour.

However, ESPN Austin is now home of the Dallas Cowboys radio network and at least 4 regular season games will be heard right after the Texas Hemp Show on the local ESPN affiliate at 12pm!

DALLAS GAMES ON ESPN FOLLOWING THE TEXAS HEMP SHOW ARE:

DALLAS VS. NEW ORLEANS SAINTS
SUNDAY SEPT 15TH –

DALLAS @ ATLANTA ON
SUNDAY NOV 3RD

SUNDAY NOV 24TH @ WASHINGTON

SUNDAY DEC 15TH @ CAROLINA


The show will air through the 2024 NFL season and consider extending future shows based on sponsors support for the program and availability with media partners at Waterloo Media.

Texas Hemp Show . . . the official podcast/radio show for The Texas Hemp Reporter magazine rapidly approaching its 200th show and is also celebrating its 4th year this September.

Since 2020 Texan’s have been growing legal Hemp and the show is known for its coverage of this new crop in the industry from financial, technology, health,finance and business opportunities in new Texas agricultural laws. The magazine is made available in close 1000 plus CBD & Smoke-shop retail locations in Texas!

 

 

 

 

CannaZip Launches New Website

Written by texashempreporter on . Posted in CBD News & Business.

 . . . . With 100+ New Products; Enhanced  Features for Cannabis Custom Packaging

 

CannaZip, a leading provider of custom packaging
solutions for the cannabis industry, is excited to announce the launch of its new and improved
website. The revamped platform offers a seamless and user-friendly experience for customers,
with over 100 new products,including bags, boxes, labels, shrink sleeve, containers, dube
tubes, vape hardware, label application services, direct branding services, in-house design, low
minimums, 5-15 business day production on most items, innovative in-site bag design tools, and
enhanced ordering capabilities.

“We’re always working to enhance our products and services, and this new website is a
demonstration of that commitment,” said owner Davis Tiburzi. “We’re committed to providing the
most complete customizable product packaging options for the cannabis industry and give our
customers the tools and resources they need to stay ahead of the rest.”

100+ New Products for Diverse Packaging Needs

CannaZip’s new website features an expanded product lineup, including a wide variety of
custom packaging options tailored specifically for the cannabis industry. From resealable bags
and pouches to jars and boxes, the site now offers more than 100 new products, ensuring
customers can find the perfect packaging solution to meet their needs. These products include
but are not limited to Bags, boxes, jars, labels, pre-roll packaging, vape hardware, liquid
packaging, and much more!

In-Site Bag Design: Customize with Ease

One of the standout features of the new website is the in-site bag design tool. This innovative
feature allows customers to create custom packaging designs directly on the website. With a
user-friendly interface, clients can choose from various colors, materials, and finishes, add logos
and graphics, and preview their designs in real-time. This streamlined process ensures that
customers can achieve the exact look they want for their products without the hassle of
third-party design software.

Fast & Easy Online Ordering


CannaZip’s new website simplifies the ordering process with fast and easy online ordering. The
intuitive navigation and clear product categorization make it simple for customers to find what
they need. The streamlined checkout process saves time and ensures a smooth experience
from selection to purchase.

Federal Judge Orders Stay of DEA Subpoena of Vape Shops in Allen, Texas

Written by texashempreporter on . Posted in Texas Legal & Regulatory News.

Hemp Lawyer David Sergi Fights to Protect the Rights and Privacy of Local Businesses, Their Workers, and Customers

 (Allen/San Marcos, TX) Texas Hemp Lawyer David Sergi won a stay against a Drug Enforcement Agency (DEA) subpoena that targeted nearly every vape shop in Allen, Texas.
“This action by the DEA was clearly on a fishing expedition to gather information unrelated to any public investigation,” said Sergi. “These local businesses operate well within federal and Texas laws and regulations. The subpoena seeks information beyond what the DEA may require in data collection or within its duties. They are seeking information protected by the Fourth and Fifth Amendments.”
On June 25, 2024, the DEA subpoenaed vape shops located in Allen, TX. The subpoena requested these businesses turn over to the government a wide range of their records:
●     All financial and banking records, including all customer transactions
●     Wages of employees
●     All credit card transactions
●     Venmo and CashApp transactions
●     List of all the suppliers that provide products to be sold (including non-Hemp products)
●     Wages of employees
●     Names of distributors or transportation companies/facilitators
“The vape shops are more than willing to share all the records required by federal and Texas law. The subpoena goes way beyond the duties and authority of the DEA and violates the Fourth and Fifth Amendments of the US Constitution,” added Sergi. “The subpoena does not meet the standards of those amendments.”
“The Fourth Amendment requires that the subpoena be limited in scope and relevant in purpose. It also must be specific and not unreasonably burdensome.”
“Each business maintains Certificates of Analysis as required to be kept as part of the business of hemp sales; the financial information from the business, employees, owners, and customers necessarily is not; therefore, much of the DEA subpoena implicates the Fifth Amendment and is far outside anything that could be considered reasonable.”
Sergi represents the Allen Hemp Coalition, which includes Lit Smoke & Vape, Vapex, Hemp & More, Hazel Sky, Allen Smoke & Vape, Chasing Vapes, Vape Shack, Allen Vape, Puff Station, and Isky Vapor.
“These Allen-based businesses operate legally and each day follow all laws and regulations. They are grateful that Federal Judge Amos Mazzant has stayed the subpoena. They are committed to the community and will continue to operate their business to the highest legal and moral standards,” added Sergi.
Here is the text of the ruling issued by United States District Judge Amos L. Mazzant: Before the Court is Movant Allen Hemp Coalition’s Motion to Quash and/or Limit DEA Administrative Subpoena (Dkt. # 1) in the above-entitled matter. It is hereby ORDERED that the enforcement of the subpoenas that are the subject of this motion is STAYED, pending the Court’s full consideration of the matter after a response to the motion is filed. IT IS SO ORDERED SIGNED this 24th day of July 2024.
Attached is a copy of the order and David Sergi’s motion to quash the subpoena.
David Sergi is available for media interviews. Please get in touch with Kevin Lampe at (312) 617-7280 or [email protected].
David Sergi is a San Marcos-based lawyer who focuses on the Hemp industry in Texas and throughout the United States. He has been active in litigation throughout Texas, Florida and most recently Wisconsin. His firm was trial counsel in the case that kept Delta 8 legal in Texas in the case of TDSHS and Hellerstadt v Sky Marketing Corp. dba Hometown Hero, Create a Cig Temple LLC, Darrell Surif and Dave Walden, 03-21-00571-CV. -30-

Alternative Products Expo: Houston June 20-22

Written by texashempreporter on . Posted in Events.

Introducing the best industry event for smoke shop professionals.

Texas Hemp Reporter invites you to Alternative Products Expo!

This June 20th at Houston’s George R. Brown Convention Center, experience a 3-day gathering of the best from the world of Hemp, Vape, CBD, Kratom and everything smoke shops

Whether you’re a smoke shop owner, product manufacturer, distributor, retailer or even just a curious enthusiast, everyone can be part of this once-a-year event bringing the world of alternative products to the people of Houston

Texas Hemp Reporter has partnered with Alternative Products Expo to offer our listeners complimentary entrance passes to this year’s Houston event.

Visit altproexpo.com, and for a limited time, use code TEXASHEMP on checkout to claim your complimentary tickets!

Alternative Products Expo Miami Show Marks a New Era of Industry Success

Miami, FL – The latest installment of the Alternative Products Expo, held from March 14-16, 2024, at the vibrant Mana Wynwood Convention Center, has once again set a benchmark in the smoke shop and alternative products industry. This year’s Miami show, a spectacle of innovation and networking, wrapped up with unprecedented success, drawing in an eclectic mix of vendors, buyers, and industry enthusiasts from across the globe and beyond, thanks to the innovative flight voucher program provided by AltPro.

As the first significant industry event of the year, the Alternative Products Expo in Miami showcased a myriad of breakthrough products and technologies, setting a strong pace for the industry’s direction in 2024. With over 300 exhibitors and thousands of industry attendees, the expo has not only exceeded expectations but has also amplified the buzz surrounding the potential of alternative products in the mainstream market.

Unparalleled Engagement and Opportunities

This year’s event featured an impressive lineup of exhibitors ranging from established market leaders to innovative startups, each bringing something unique to the table. From cutting-edge vape technologies to the latest in CBD, the expo served as a premier platform for showcasing the newest trends and products.

Noteworthy was the engagement level seen at the show, with exhibitors reporting record-breaking interactions and transactions. The strategic timing of the show, post-Q1, allowed vendors to gauge current market dynamics deeply, making it a critical checkpoint for adjusting annual business strategies.

Catalyst for Business Growth

The expo not only provided a platform for showcasing products but also acted as a catalyst for forging substantial business relationships. Many exhibitors and buyers finalized deals directly on the show floor, highlighting the expo’s role in driving direct trade and opening new channels for distribution.

Testimonials from participants echo the sentiment of success and satisfaction. Luke from Hidden Hills mentioned, “This show was the perfect opportunity to launch our new product line. The reception was beyond our expectations, and the connections we’ve made are invaluable.”

Highlights and Incentives

The show’s innovative buyer incentives included the AltPro flight voucher program, which saw buyers flying in from all over the nation and even from abroad to partake in the event. The climax of the show was the thrilling giveaway where two lucky store owners won over $50,000 each in wholesale inventory, significantly enhancing the excitement and engagement at the event.

 

Continuing the Momentum in TEXAS!

Building on the success of the Miami show, Alternative Products Expo is already gearing up for its next stops in Medellín, Houston, and Atlanta. These upcoming events promise to carry forward the momentum, with each location tailored to capture the unique aspects of their respective regional markets.

The Alternative Products Expo continues to not only meet but exceed the needs and expectations of the industry, solidifying its position as a leader in the trade show circuit for alternative products.

About Alternative Products Expo

Starting in 2017 as Vape Conventions and evolving through its rebranding as USA CBD EXPO, and finally to its current identity as Alternative Products Expo, the organization has been at the forefront of showcasing everything the alternative product industry has to offer. With a history of facilitating industry growth and innovation, Alternative Products Expo is committed to advancing the interests and success of all its participants.

Contact:

For Industry Buyer tickets: [email protected]

For media inquiries: [email protected]

For Booth inquiries visit: altproexpo.com/become-an-exhibitor

Website: Alt Pro Expo

 

The New Hemp Industry Landscape; More than Moving Pounds

Written by texashempreporter on . Posted in Business.

From Texas to Maine, California to Florida, it’s nearly impossible to walk into a retail, grocery, or convenience store without seeing a THC-infused beverage, hemp-derived gummies, or CBD oil.

 

What was once known as modern-day snake oil, CBD, and hemp in general, is here to stay. In today’s modern world, consumers are able to access THC and other cannabinoids more easily than ever before. Even expanding to wellness shops on every corner, with hemp flower sales in storefronts that aren’t just legal dispensaries.

 

Of course, what consumers don’t know is what it takes behind the scenes to navigate a complex hemp supply chain system to offer quality, safe hemp products to consume.

 

“Literally, everyone has pounds,” explains Justin Sandone, co-founder of Elevated Trading “Store owners are getting approached, all day every day, by every Joe Blow that has a friend with a farm.”

 

In such a burgeoning industry, you wouldn’t expect retailers to have to navigate the wild, wild west of hemp buyers. From those who bait and switch on quality products, leaving their customers hanging. Or, being unreachable when shipping issues arise instead of getting the type of support they need to succeed.

 

In an oversaturated market, it’s easy for retailers to get swindled by what looks like high profit margins, only to hurt their business even more by selling poor-quality flower, to potentially longtime, loyal customers.

 

An unfortunate fact that lends itself to the unprofessionalism of the current market. Fortunately, industry leaders like brothers Justin and Cody Sandone are taking it upon themselves to repair the broken hemp supply chain and breathe a level of professionalism into a market that so desperately needs it. Working behind the scenes to build farm-to-retail relationships that support quality, consistency, and reliable products reaching the shelves.

 

What’s Happening in Hemp

 

Since the 2018 Farm Bill legalized the cultivation, processing, and sales of hemp-derived products, the market has been flourishing – frantically. Regardless of the global hemp industry commanding $1.8 billion in sales in 2023, it’s an industry that is highly unregulated due to a lack of infrastructure.

 

Leaving retailers, who are responsible for distributing the industry’s main commodity, without much guidance or education on how to do so safely, legally, and, of course, profitably.

 

“There’s no good roadmap; there’s not a lot of information for retailers to know how to succeed,” Sandone explains, “Like, how to vet these people, how to vet these products, how to know whether they’re from licensed hemp farms or not, to maintain compliance and the legalities around having these products in your store.”

 

And leaving consumers without retailers to rely on for consistent, reliable, quality products. That’s why two retail pioneers and consumers themselves, set out to bridge the gap between farms producing quality flower, and retailers distributing it.

Two Brothers, One Goal

 

Elevated Trading co-founders Cody and Justin Sandone were no strangers to the wholesale and retail worlds when they started Elevated Trading.

 

“We had an electronic cigarette store and started seeing CBD come on. Once we started to see flower come on to the market, it became very evident, very quickly, how broken the supply chain was – it was hard to get good suppliers, ” says Sandone.

 

The brothers were also no strangers to the hemp industry after investing in a hemp farm located in Oregon. Only to be thrown into the thick of the market, needing to move 1,000 pounds of flower to recoup their investment, quickly thereafter.

 

With that experience in their pocket, they set out to create the best buying experience they could for the retailers they related to, with a few core values they related to even more. Like one value, “create raving fans” that they’re already clocking success with, serving thousands of retail stores across the US.

 

“We’re not here to be in the spotlight. We’re here to support our customers,” Sandone points out, “We’re here to put their brand in the spotlight by offering the best products we can at the right price point for them to be in line in the market and deliver a high value, fair price product to the customer. ”

 

Today, Elevated Trading does just that by sticking to their expertise in sourcing premium THCA flower, while supporting their retail customers with the network they’ve built over the years.

 

“We have a background in retail. We get it. We understand what consumers are looking for, and we know what it’s like to run a retail business. So working together to help round out their product set—the right pieces for their store, at the right price points where they can be competitive—that’s what we do,” affirms Sandone.

Bridging the Farm to Retail Gap

 

Where the hemp industry has especially struggled is building connections between the farms growing the hemp and the retailers selling it. Leaving farmers struggling to know what retailers are seeking and leaving retailers struggling to find a reliable, compliant source for product.

 

As soon as this gap became glaringly obvious to the retail pros, the Sandones, they knew they had the knowledge, network, and drive to fix it.

 

“It was a broken chain. So we saw an opportunity to come into it on the wholesale side, with an understanding of how to operate a business that’s focused on customer service and build something that could bridge the gap between farms and retailers to create the best buying experience possible.”

 

For consumers included. Over the years, Elevated Trading has helped bring thousands of products to the shelves, supporting large scale retail operations with reach across the nation.

 

“Behind the scenes, Cody and I work very closely with the farms we’re partnered with. We’re constantly bridging the gap between retailers and farms, with conversations like, ‘Hey, a lot of retailers are looking for this strain.’ Or, ‘retailers are looking for this indoor flower’, Sandone continues.

 

“We’re making sure those lines of communication are open.”

 

Changing the landscape of wholesale hemp

As we’ve seen in history, it only takes one or two players to shape the way an industry operates. Until now, the hemp industry has lacked a sense of professionalism that the Sandones are seeking to breathe back into the market.

 

In an industry where there are still “tons of brokers out there, just selling material they don’t own yet, promising the moon and not being able to deliver,” Sandone describes, Elevated Trading’s operations were specifically designed to operate differently.

 

“It’s not enough to have a satisfied customer. We want our customers to be so happy and so thrilled to be working with us – they can’t wait to tell someone else and that drives everything we do in our company,” continues Sandone.

 

A mission that’s glaringly obvious for any first-time retailer placing an order with the company.

 

“From the initial introductory call, to the sales process, to the delivery, to the handling of any issues, to following up to make sure the product is the right fit, and checking in to make sure it’s working for their store,” explains Sandone “We emphasize so much on creating raving fans – on providing excellent customer service and an amazing buying experience for customers.”

 

So, what’s the future of hemp look like for Elevated Trading?

 

Looking forward, the Sandones will continue to nurture relationships with the network of farms and retailers they work with to shape the future of the cannabinoid market. Serving as the trusted partner that bolsters the hemp supply chain for shared success across its players.

 

As consumers increasingly seek out unique strains or as minor cannabinoids ebb and flow, Elevated Trading seeks to stand out as a wholesale partner that retailers can rely on.

 

 

Meet Elevated Trading

Written by texashempreporter on . Posted in CBD News & Business.

Meet Cody Sandone, Founder & CEO of Elevated Trading

Why did you get into the hemp industry?

 

In 2019, I was introduced to the industry by a family friend, and we invested in a large outdoor farm in Southern Oregon. I was expecting a capital return, but the farmer was having trouble selling the material, so my brother and I stepped in to sell the material and recover our investment.

 

While moving thousands of pounds of CBD flower, we saw a huge gap in the supply chain between farmers and retailers and quickly knew we could fix this problem. At the time, the industry was heavily plagued with bad actors, inconsistent products, failed business dealings, and a lot of frustrated retailers left holding the bag…literally.

 

We formed Elevated Trading in January 2020 on a mission to elevate the supply chain and build a reliable, trusted bridge from the farm to the retailer. I left my corporate sales gig in Cybersecurity in September 2020 to pursue Elevated Trading full-time, and I haven’t looked back. This industry is incredibly exciting, and I’m glad to be a part of it.

 

What do you think are the main challenges within this industry?

 

I see two big challenges in this industry. Legislation and infighting.

 

In such a regulated industry, there is always an underlying concern of business impacting legislation that could make it impossible to operate with the hemp industry. We fully support sensible legislation around consumer safety and age restrictions, but the vast majority of legislation that’s been introduced is seemingly done out of ignorance or malice.

 

The second issue is the infighting within cannabis (both marijuana and hemp). The fact is that we’re all participating in the cannabis industry in different capacities. There’s room for everyone, but, surprisingly, the vast majority of negativity surrounding the hemp industry seems to be launched directly from the marijuana world. Everyone needs to stay in their lane and focus on their customers instead of fighting so hard against other businesses that are all promoting access to cannabis.

 

What is the most important advice that you would give individuals who are looking to get involved in this industry?

 

Most people underestimate this industry. I’m a capitalist and believe in competition so I welcome anyone to the industry, but the vast majority of folks entering the cannabis space seem to believe this is a quick way to make a lot of money. There is a blindness for a lot of business owners entering this space because they are so connected with the plant. Having passion for the plant is a great attribute, but you need some business chops to play in this arena.

 

This industry is exciting and lucrative, but you need to differentiate yourself and your product set if you’re going to enter at this stage of the game. There are too many copycat vendors and products, and the consumers are starting to get wiser about the quality they expect from their products. Biggest advice is to do extensive market research, figure out exactly where you want to play, and go all in on that particular domain. Don’t try to be everything to everyone…that’s not how you win.

 

What do you hope to see for the future of the hemp industry in Texas?

 

Texas has a booming hemp market today, and I hope to see us continue to flourish and lead the charge on how a robust, mature hemp market should be operating. There are a lot of companies in the Texas market operating with integrity and putting the consumer first.

 

Everyone deserves the freedom to choose what they consume, and I firmly believe that the hemp program in Texas is a testament to watching the consumers vote with their dollars. Hemp is a game changer for Texas residents, and I’m stoked to be a part of it.

 

As the industry matures in Texas, we’re continuing to see the level of products and integrity among brands really increase which is exciting and encouraging for us who’ve been operating in Texas for a long time.

 

How to Utilize Elevation Trading:

 

At Elevated Trading, we’ve always specialized in wholesale bulk flower products, and we’re hyper-focused on our customer’s success. We have a very high touch sales process that allows us to learn a lot about our customers and really formulate a partnership that drives real revenue and growth to their bottom line. We look forward to learning more about your business.

 

Find Elevated Trading online at www.elevatedtrading.com or call 972-373-4240 and mention Texas Hemp Reporter.

 

The Texas Hemp Coalition’s goal is to provide industry specific information to growers, processors and entities that are involved in the Texas Hemp Industry. We will serve as an advocacy, educational and networking liaison to reputable entities within the hemp industry. Visit www.texashempcoalition.org for more information.

 

Testimony to the Texas Health and Human Services Commission

Written by texashempreporter on . Posted in Texas Legal & Regulatory News.

Comments on Proposed Rule Review Chapter 300

As the publisher of the Texas Hemp Reporter, I am honored to offer my testimony regarding the pivotal role our publication has played in advancing the understanding and development of the hemp industry in our state. Over the past four years, our comprehensive coverage has spanned across various media platforms, including our magazine, news website, and podcast, all dedicated to the thriving $25+ billion hemp industry.
Beyond our professional endeavors, the impact of hemp products hits close to home for my family. My wife, Jennifer, who battles Lupus and Rheumatoid Arthritis, relies on these products to alleviate swelling and inflammation. Additionally, my mother, Linda, found relief during her battle with lung cancer in 2020 and 2021, using CBD products as a complementary treatment alongside radiation and chemotherapy. Today, she stands cancer-free, a testament to the potential of hemp-derived remedies.
Throughout our journey, our business has served as an educational resource for farmers, entrepreneurs, and the general public, disseminating valuable information on hemp products for four years. We have distributed 350,000 copies of the Texas Hemp Reporter magazine across 26 issues, reaching communities in Houston, Austin, San Antonio, Dallas, McAllen, Lubbock, Midland, and numerous smaller towns across central Texas. Furthermore, our podcast has aired on prominent radio stations such as ESPN and KLBJ, becoming a rare voice in terrestrial radio discussions on hemp-related topics in Texas.
Our efforts have not only informed but also influenced cultural conversations. We have conducted interviews with celebrities, lawmakers, agricultural commissioners, congressmen, industry leaders, and legal experts, shedding light on the burgeoning hemp sector. Our magazine has found its way into over 1,000 CBD stores and smoke shops, including major retailers like HEB, Randalls, and Whole Foods in central Texas.
While acknowledging the potential for improvement in Texas’ hemp and cannabis programs, it is imperative to recognize the state’s leadership alongside Tennessee and North Carolina in this industry. Texas has established a robust hemp program, paving the way for economic growth and job creation, supporting not only my family but also over 50,000 Texans employed in this dynamic field.
In conclusion, we express gratitude for the opportunity to contribute to the review of Chapter 300 and commend your commitment to exploring the vast potential of hemp. As journalists and media professionals, we take pride in our role in covering this topic and showcasing the remarkable benefits that this plant offers to our communities.
Thank you for your attention.
Sincerely,
Russell Dowden
Publisher, Texas Hemp Reporter

 The Rise of Texas-Made THC Beverages

Written by texashempreporter on . Posted in News.

Welcome to the frontier of refreshment, where the spirit of Texas meets the innovation of hemp-derived THC beverages. Across the Lone Star State, a revolution is brewing, one tantalizing sip at a time. From the rolling hills of Dripping Springs to the bustling streets of Austin, Texans are embracing a new kind of drink—one that promises all the buzz without the fuzz. Let’s embark on a journey through the heart of Texas, where four trailblazing brands are crafting the future of leisurely sips.

Tejas Tonic: A Toast to Texas Tradition

First up, we mosey on down to Dripping Springs, where Tejas Tonic is stirring up something special with its new “Agarita Berry”. Imagine sipping on the essence of Texas, a drink so rooted in local tradition that it feels like a high-five from the Lone Star State itself. With 5mg of hemp-derived delta-9 THC, this carbonated marvel is the brainchild of folks who take “homegrown” to heart. No synthetics, no artificial flavors—just the pure joy of top-shelf THC and CBD, delivering a grin without the grimace of a hangover.

As Tejas Tonic expands, their commitment to natural, all-inclusive ingredients remains as steadfast as a Texas oak. It’s a drink that’s as friendly to the earth as it is to your taste buds, embodying everything from farm-to-table ethics to a laundry list of dietary considerations. If Texas pride could be bottled, Tejas Tonic would be it.

Restart CBD: A Zesty Texan Salute

Next, we shout “Hola!” to Restart CBD’s “Rita,” the non-alcoholic BFF you never knew you needed. Bid farewell to hangovers and hello to a zesty agave lime seltzer that’s as refreshing as a Texas spring. Crafted with the simplicity and purity of nature in mind, this blend of lime, agave, and 5mg of hemp-derived delta-9 THC is a testament to the art of minimalism. With every sip of Restart CBD, you’re not just drinking a seltzer; you’re imbibing the spirit of Texas innovation.

Cheech & Chong Brands: High & Dry in the Sky

From the legendary duo that needs no introduction, Cheech & Chong Brands brings you “High & Dry,” a beverage line that’s as iconic as its namesake. With flavors like Magic Mule and Raspberry Highball, these drinks are your ticket to a euphoric journey through the clouds. If ginger and lime had a love child, it’d be the Magic Mule, a drink so divine it’ll have you saying, “Dave’s not here, man,” because you’re too busy riding high on this fizzy concoction.

Oak Cliff Cultivators: Ease Into Texas Bliss

Oak Cliff Cultivators invites you to “Ease Up” with their Watermelon Lime flavor. It’s a symphony of taste, a perfect balance of sweet watermelon and tangy lime, infused with 10mg of hemp-derived delta-9 THC for that just-right buzz. This beverage is like a Texas sunset in a can—vibrant, unforgettable, and deeply satisfying.

Hill Beverage – Snoop Dogg’s “Do it Fluid”

Introducing the sip that’s as smooth as the man behind it: Snoop Dogg’s “Do it Fluid” by Hill Beverage. It’s a bold statement in a small package, blending the tangy taste of Blood Orange with a pioneering NANO blend of hemp-derived CBD and delta-9 THC. It’s designed for those who appreciate the finer things in life—chill vibes, bold flavors, and a health-conscious buzz. At 8 ounces, it’s the perfect companion for any laid-back gathering or a solo night in, ensuring you’re enjoying the citrus zing with just the right hint of relaxation.

Sweet Sensi – Fizzy Lifters

Prepare for lift-off with Sweet Sensi’s Fizzy Lifters, the groundbreaking rosin drink. Greg Autry’s patented touch has given life to a beverage unlike any other—a symphony of natural flavors and potent, high THC Hash Rosin, crafted from hydroponically-grown flowers. Whether you’re unwinding or getting the party started, these fizzy delights, available in Pineapple Kiwi Express, Mellow Melon Berry, or Purple Tangie, are sure to elevate your day. A gentle buzz without the alcohol, this is what innovation in relaxation looks like.

Power Biopharms – Power House

Cheers to wellness in a can with Power House, the collaborative creation from Martin House Brewing Company and Power Biopharms. This sugar-free seltzer doesn’t just quench your thirst; it redefines it. With 5mg of hemp-derived Delta-9 THC per can, choose between the zest of Lemon Lime or the sweet kiss of Strawberry—or don’t choose at all and mix it up with a 50/50 split. Responsible enjoyment has never tasted this good, with every sip of this effervescent elixir reminding you of the power of plant wellness.

Drink Delta – “Delta Light”

Say hello to “Delta Light” from Drink Delta, the epitome of social sipping. This zero-calorie, sugar-free, Tropical Mango-flavored delight is your ticket to a relaxing, euphoric escape. Designed for micro-dosing, “Delta Light” is the go-to option for those looking to maintain the perfect social buzz with minimal impact on the waistline. Crafted with minimal and plant-based ingredients and 5mg of hemp-derived delta-9 THC, it’s the responsible way to savor a calming and delicious experience.

Legal Maverick Adam Reposa

Written by texashempreporter on . Posted in News.

 

In the vibrant city of Austin, Texas, where the boundaries of legal interpretations and personal freedoms often blur, Adam Reposa stands out as a figure of defiant clarity. Known for his unyielding and audacious presence in the courtroom, Reposa has navigated the legal system’s intricacies for two decades, becoming a symbol of resistance against perceived judicial injustices. His latest endeavor, however, ventures into the contentious arena of cannabis sales, drawing significant attention and law enforcement scrutiny to his operation, ATX Budtenders.

 

ATX Budtenders, boldly advertised through a website featuring a cannabis menu and contact information, operated out of a distinctive East Austin property marked by a pink ice cream truck. This setup, as provocative as it is transparent, prompted a dramatic law enforcement raid on the morning of January 22. The operation resulted in the seizure of cannabis, THC edibles, psilocybin mushrooms, firearms, and other items, though no arrests were made at the scene. Reposa, undeterred, claims the substances were CBD, a legal derivative of cannabis, challenging authorities to prove otherwise.

 

The raid, reportedly led by a coalition of the DEA, APD, and TCSO SWAT teams, has sparked debate over jurisdiction and the actual leadership of the operation. Reposa contests the notion of a DEA-led raid, pointing out the involvement of local sheriff’s officers, which, according to him, complicates the federal agency’s direct authority in the matter.

The backdrop to this latest episode is Reposa’s long-standing reputation as a provocateur, not just in legal circles but also in public discourse. His infamous viral marketing and confrontational stance towards the prosecutorial system have made him a divisive figure. Yet, Reposa’s current predicament with ATX Budtenders reveals more than just a legal battle; it underscores his broader critique of cannabis laws and the enforcement strategies that accompany them.

 

Reposa argues that the raid on his dispensary and the seizure of his products without subsequent charges exemplifies a deliberate attempt to disrupt the local cannabis market. By preventing entrepreneurs from establishing stable market positions ahead of potential legalization and licensing changes, authorities, he suggests, aim to maintain control over the industry’s evolution.

However, Reposa’s defiance goes beyond mere market concerns. He is openly challenging the rationality and justice of cannabis prohibition, questioning the government’s right to criminalize a substance increasingly recognized for its harmlessness. Through his legal strategies and public statements, Reposa seeks to provoke a broader discussion about liberty, rights, and the role of government in regulating personal choices.

 

While the future of Reposa’s legal confrontation remains uncertain, with Travis County District Court recusing itself from the case, the implications of his actions ripple through the community. Whether seen as a crusader for personal freedoms or a reckless agitator, Reposa’s saga with ATX Budtenders illustrates the ongoing tensions surrounding cannabis law and the quest for a more just and sensible approach to its regulation.

420 Anniversary for Go Green Botanicals Inbox

Written by texashempreporter on . Posted in News.

Elevate Your 4/20 with Go Green Botanicals’ 6th Anniversary Party at Faust Brewery!
Join us for an electrifying 4/20 celebration at Faust Brewery this April 20th, from 4:20 PM to 10:00 PM. Go Green Botanical’s is marking its 6th year with a bang, featuring legendary performances, celebrity appearances, and exclusive brews in a party that promises to be this year’s highlight.
**Special Guests:** Grammy winner Sir Earl Toon from Cool and The Gang and Dallas football sensation Sam Williams will be igniting the stage, with the dynamic DJ Jesse Esquivel spinning tunes that’ll keep you on your feet. Don’t miss the chance to meet our Cheech impersonator, capturing the spirit of the day with uncanny resemblance!
**Exclusive Offers:** Dive into special drink selections by Faust Brewery and explore a variety of vendors, enriching your experience with flavors and finds like nowhere else.
VIP ticket holder gets a FREE gram, celebrating in true 4/20 style.
**Save the Date:** April 20th | 4:20 PM – 10:00 PM | Faust Brewery in New Braunfels
**About Go Green Botanicals:** A leader in botanical wellness, Go Green Botanicals is dedicated to enhancing health and happiness through quality products and community engagement.
**Join Us:** Don’t just hear about it; be there to experience it. Secure your spot for an epic celebration with Go Green Botanicals.

SXSW Outlaw Party: Championing Cannabis Justice with Art, Music, and Advocacy

Written by texashempreporter on . Posted in Podcast.

Austin, TX – The SXSW Outlaw Party, a beacon of hope and activism in the heart of Austin, is set for March 12th at Pour Choices Bar, from 8 PM to 2 AM. This event, proudly presented by Cheech & Chong’s Cannabis and Dreamz Cannabis Investments, invites attendees to a night dedicated to cannabis culture, advocacy, and the arts.

The event will feature a live mural by Hail Mary Art Collective, creating a poignant and powerful piece on the side of Pour Choices to spotlight the ongoing injustices faced by individuals incarcerated for cannabis-related offenses. Music for the evening will be provided by Ellis Bullard, setting the tone for an unforgettable experience. Catering will be expertly handled by Cheeba Hut, ensuring guests enjoy a taste of Austin’s best.

John Fisher, CEO and Cody Fisher, COO of Dreamz Cannabis Investments and the new Cheech & Chong’s APOTHICARIA share, “Our involvement in this event is a testament to our commitment to cannabis justice reform. It’s an honor to support the Last Prisoner Project and to be part of an evening that promises to make a significant impact.”

Liz Grow of Grow House Media adds, “The Outlaw Party is a pivotal event that grows more impactful each year. With the support of Cheech & Chong’s Cannabis as this year’s presenting sponsor, we’re set to make an even greater mark in the fight against unjust cannabis laws.”

A diverse array of sponsors, including Weedmaps, BucannaLabs, Tejas Tonic, Errganix Hemp Farm, Texas Hill Country Vape & Smoke, Fresh Grown Texas, Wana Brands, Flower by Edie Parker, 4k Pharms, Rare Earth Genomics, GRAV Labs, and many others, are coming together to support this cause, each adding a unique flavor to the night’s festivities.

Mary Bailey, Managing Director of the Last Prisoner Project, states, “The dedication and support from the SXSW Outlaw Party are invaluable to our mission. Together, we’re not just raising awareness; we’re actively working towards a world where no one is imprisoned for cannabis.”

 

 

Event Highlights:

  • Date & Time: March 12th, 8 PM – 2 AM
  • Location: Pour Choices Bar, 401 E 6th St, Austin, TX
  • Tickets & Information: growhousemediaevents.com

Join us for a night of music, art, and advocacy. Your support helps us move closer to a future of freedom and justice for all. For tickets and further details, please visit www.growhousemediaevents.com.

About the Last Prisoner Project:

The Last Prisoner Project is at the forefront of the fight against cannabis-related incarcerations, working tirelessly to free those incarcerated due to the War on Drugs, reuniting their families, and helping them rebuild their lives. Any proceeds from the event will directly support the Last Prisoner Project in its ongoing efforts to reform cannabis laws and assist those unjustly affected by them. Learn more about their mission at www.lastprisonerproject.org or text FREEDOM to 24365.

Media Contact:

Liz Grow, CEO Grow House Media

[email protected]

(512) 695-6747