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Tag: Shayda Torabi

If Texas Legalized Adult Use Cannabis Tomorrow, Who Would Get a License?

Coming off of an exciting Texas Hemp Summit, I can’t help but be a voice of reason in the room. It was awesome to see so much support and interest in the burgeoning hemp industry here in the lone star state. We got to hear from Texas AG Commissioner Sid Miller and had leaders in hemp fly in from across the United States to weigh in on the future of hemp, and really cannabis, in Texas.

As a CBD retail operator since 2018 myself, I am no stranger to the ever-moving landscape here. From newly discovered cannabinoids hitting the market like CBC and THCV, to the emerging market of chemically derived cannabinoids like hemp-derived delta 9 THC. We’ve faced lawsuits as a state, most recently losing the manufacturing and processing of smokable hemp products in Texas. And we’ve seen the state slowly introduce a medical marijuana program, which to me, is the domino that needs to fall before we see any type of adult use market here in Texas.

Which is exactly where I want to dive in. If Texas legalized adult-use cannabis tomorrow, who would get a license? How many licenses would they issue? What would a license cost? And if full plant access was granted, what would that do to the thousands of CBD retailers operating in Texas alone?

These are questions not meant to intimidate you, but rather to prepare you.

I spend a lot of time studying this market, as I mentioned I have skin in the game and want to ensure I’m doing my due diligence to take the best next step forward. But I also, through my podcast To Be Blunt, have ongoing conversations with industry leaders across the United States and even globally, deciphering their failures and successes in hopes of gathering enough intel to speculate what and when Texas might make her move.

I think a good indication is to look at where medical marijuana is currently at in Texas. For those who may be unaware, there are three licenses in circulation under the Texas Compassionate Use Program (TCUP), with only two in operation. The application to even apply for a dispensing organization license is $7,356 and the license fee is $488,520 for a two-year period. That is just to get your license to operate, not counting all the operational costs, etc. On top of that, the TCUP license requires vertical integration meaning you have to grow, extract, process, manufacture, distribute, and sell. 

So I ask you, who has the funds and assets to qualify for a TCUP license? And out of the thousands of operators currently selling CBD and hemp-derived cannabinoid products, who is going to qualify for one of the limited available licenses under the current program and rules?

Look, I am hopeful like the rest of you, but I also live in reality, and to ignore these facts is to willingly walk into a wall.

I recently saw the Texas DPS announce they were considering opening up TCUP licenses, which would be a step in the direction towards adult use recreation because I believe we need a more advanced Medical Marijuana/ TCUP program before you see adult use/ recreation legalized in Texas.

TCUP is currently limited to a 1% THC cap, and the broadest qualifying condition is PTSD as expanded during the 87th Texas Legislative session. Our 88th legislative session kicks off in January 2022 and I anticipate whatever movement we get will be an indication of how much that program will advance, leading us to infer the progression of the legalization of cannabis in the state.

On top of all of this, hemp is currently capped at .3% Delta 9 THC on a dry weight basis, the language of “dry weight basis” has made a massive loophole not just for Texas hemp brands but really nationally we’re now seeing a wave of hemp derived delta 9 THC hit the market.

A rolled marijuana joint half burnt, isolated on white.

So from my perspective, on one hand, we already have legalization of THC in Texas to some extent, and on the other hand, how in the hell does this all get regulated, and who will it affect?

Some speculate Delta 8 and hemp-derived Delta 9 will be taken away, others argue how can they “put the cat back in the bag” so to speak. And personally, I’m not really sure what this legislative session will hold, but I can tell you I’m gonna roll up my sleeves and advocate and influence policy however I can.

But don’t say I didn’t warn you! 

New episodes of To Be Blunt air every Monday at tobebluntpod.com

Cannabis Marketing Business

I was recently handed a box of about 24 unlabeled products in bags and asked to review the quality and effectiveness of said products, which varied from topical’s and oils to edibles.

This wasn’t the first time I had been asked to judge something in the cannabis industry, in fact, I’ve participated as a judge in a handful of national competitions which, I’ll admit, have all respectively had their faults.

Look, I’m not here to pick on this one example, it’s just the most recent one in a series of examples, but rather use it as a jumping-off point for what I would have loved to see happen instead, and encourage how we as an industry should be leaders instead of followers.

For the record, I’m pretty sure there isn’t a standard manual on how to run an effective cannabis event. If you could see me now, I’m half smirking as I write this because I know (from interviewing hundreds of cannabis entrepreneurs all over the world for my podcast, To Be Blunt) just how inconsistent the laws and regulations are in our industry in general, let alone the nuanced world of events.

But as nuanced as it is, it is a massive opportunity for everyone involved. And it comes down to implementing best practices that put safety and education at the forefront.

Prior to founding RESTART CBD in 2018, I used to work in corporate technology, but specifically, I was an event and brand manager for about 6 years. So I will also go out on a limb and say I know pretty well firsthand the benefit of events from both a brand perspective and also as a consumer who has attended hundreds of events in my lifetime.

I’m not here to say don’t go to events or don’t waste your time participating in them, events are great for exposure and connecting directly with your target audiences. Instead, I want to reflect on how we as an industry can put our best foot forward and lead by example.

If you check out the podcast, I encourage you to listen to episode 96 with Tim and Taylor Blake who are the founders and producers of The Emerald Cup, the largest cannabis competition in the world. THE WORLD. Yes, they’ve been producing this event since 2003, and a lot has changed since then which we get into more detail in the episode, but one of the questions I had for them was around the competition aspect of their event.

On one end, the winners of The Emerald Cup go on to experience a huge uptick in their business. Winning this particular competition has bragging rights that go on into infinity, so from a brand marketing perspective, it absolutely benefits brands to compete because winning can do wonders for your business.

On the other hand, you have the operations of the event to navigate. As an event producer, how are you capturing these entries, what do you ask for to gauge quality assurance, and what all goes into your judging process to guarantee you’re evaluating these brands properly?

This was the big aha for me personally at least, while it’s all fun and games to do events and participate in competitions, at the end of the day, all these products, every single one of them are being sold to a consumer. How they’re packaged, how they’re labeled, what COAs are attached, and how they make someone feel are all pieces of determining the “quality and effectiveness”. They are consumer packaged goods after all, and that point is where I continually get hung up on from my own personal experiences with cannabis events and competitions.

You see, I was taken aback at the unmarked products in blank bags. I understood the intention was for blind judging, but as someone who promotes frequently to my own customers to read labels, ingredients, and packaging, to be presented with absolutely none of that information didn’t settle well (and yes I did share this feedback directly, and ultimately decided not to participate until better parameters were set in place.)

Aside from handling it directly, It was equally important to talk about it publicly since this isn’t about one person in particular, but about all of us as a community setting standards and standing by them.

In an industry where 5mg vs 10mg of a particular cannabinoid can produce a different effect, it is extremely important for me to emphasize to the brands as well as consumers reading this that integrity and efficacy are absolutely essential in establishing credibility for our industry.

In previous events I’ve judged, I remember being shocked to see products labeled with QR codes that 404’d, which as a legally licensed brand operating in Texas Hemp is a requirement to have functioning on your packaging. To me, what you put on your label is step one of building quality assurance with the consumer market, and yet here were brands, going after an award with basic information lacking. I genuinely felt and feel bad for consumers who are left in the dark by these brands and their products.

Yes, there are certainly bad actors out to make a quick buck, and I always encourage the buyer to be aware. But I also sincerely believe that there are great Texas cannabis operators who believe in this plant and are looking for best practices, so I hope you hear the heart of my message.

When we avoid or don’t address these discrepancies they continue to pile up, I want to address them so we can improve together. I want to see brands and events thrive, but I also want to remember who we’re in business for at the end of the day, and that is for the consumer.

So how we show up, whether it is on a label, or at an event, really can improve the industry by providing necessary information for consumers to make educated decisions on what they are putting in their bodies.

Listening to my episode with The Emerald Cup on To Be Blunt has a lot of great insight that we can all learn from as we work together to professionalize cannabis for consumer consumption.

TO Be Blunt

The moment I went from being a cannabis consumer to a cannabis brand owner, everything shifted. It’s like picking the red pill vs the blue pill, pick the blue pill and you can stay unaffected, unaware, and in contented ignorance. But pick the red pill and you are in for a truthfully rude but rewarding awakening.

That’s exactly how I felt when I launched RESTART CBD in 2018. I was now confronted with having to pick, and once I did, there was no going back.

Growing up I was a cannabis consumer. I was curious, passionate, and quite frankly, a regular. Austin, Texas had some effect on that being the live music capitol that it is. But I was also shielded. While marijuana wasn’t formally legal, our town is known for its relaxed stance on the plant.

Yes, legalization was a trending topic, but I knew it would be a long-shot before Texas got its head into the game. Plus, up until founding my own company, I had employers, and didn’t want to get myself tangled up in cannabis laws and regulations. It seemed daunting to even consider where to begin.

And then in 2015, as a pedestrian, I was hit by a car. I fractured my pelvis in two places and turned to cannabis as medicine. It soothed me and helped me heal, and in particular CBD was the active cannabinoid I accredited a lot of my pain relief to.

So when we launched RESTART CBD, my history with both personal appreciation as well as personal recovery from this plant was the foundation for our brand. But I didn’t go into it thinking this is how I’m going to change the world.

I did, however, know that by telling my story, I could help impact someone else who was on the fence about cannabis. I had short term vision in what would turn into a long term pursuit.

Quickly my one-on-one conversations with consumers began to multiply. I was watching this industry unfold before my eyes, right here in my home state, and I was a helping hand in that development.

I remember thinking early on in 2019, after we had been in business for a few months, wondering what the regulatory process was like and considering how to get involved. I determined that instead of waiting and being reactionary to the industry, I would be proactive and participatory in how things were rolling out.

Now that I was self employed and embarking on this emerging industry in not only Texas, but really in our nation, I decided I would take the red pill and journey into the unknown.

The work that I and others are doing in the industry is extremely important and perhaps this resonates with you as well.

The point that I’m trying to make is we are just in the beginning stages of a very turbulent endeavor. We’ve had smokable bans thrown at us, FDA warnings sent to prevent deviating from the law, and legislative sessions that seem like they’re going to make history for better and for worse all at the same time.

We have also made incredible discoveries of new and emerging cannabinoids. Hemp’s federally legal status has allowed for more cannabis related research on it’s long term effects relating to treatments and diseases.

In my short but deep time in the industry, I’ve learned a lot from running a cannabis business.

There is so much to unpack and understand. The nuances of the industry could keep you up at night. It can be overwhelming, but can also be rewarding. Both for the good and the bad guys.

There will be people who want to make a quick buck, game the system, and exploit cannabinoids to unassuming consumers. I see it happening every day. They exist and will continue to exist. You will have to navigate around them.

But there will also be people who are dedicated to making genuine change in this industry. And I’m a big believer in making the impact in your own backyard. So while it may feel like you’re taking on a mountain, you really just have to focus on your next best step.

Look, I’m not the enforcement agency. I’m truly just a die hard Texan who seeks to see her state have proper cannabis laws. And I’d be lying if I said I didn’t hope for a future where I would have access to continue to sell, work, and educate in an industry that I love.

The hard truth is, we don’t know what the future holds. We can’t project how the politics and policies that govern this plant at a state and federal level will go. But we can sure as hell pull a chair up and ask a lot of questions.

It starts with you.

There are some amazing organizations who are truly dedicated to helping make change happen. I highly recommend getting involved with as many as you can.

Texas NORML has been a key resource from the beginning for me, in keeping me both aware of what is happening, as well as providing me with a path towards action. Another organization that has recently emerged is the Texas Hemp Coalition. As a business, I am in business for the consumer, and as part of that I need to band together with people who are motivated by similar reasons.

Working with both organizations has been integral in helping me be able to leave a mark in an industry that has given me so much.

We can make change, but we have to make the choice to do so first.

Which pill will you take?

This column is an extension of the To Be Blunt podcast, new episodes every Monday at tobeblunt.buzzsprout.com, and I’d love to personally connect with you on IG @theshaydatorabi.

Episode # 36 Media Business and Branding

Russell & Shayda were waiting for Sid Miller to call, but end up moving the conversation to alternative media, the growing space for Cannabis Culture as Texas becomes more closer to legalization. The two talk about media experience and how the Texas market needs voices and role models and advocacy for this wonderful plant. (Texas Department of Agriculture Commissioner Sid Miller calendar freed up and he calls in the next day to speak with Russell)

Listen to Podcast #37 for that discussion.