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Maui Grown Therapies executed its first sale of medical marijuana on Tuesday asOahu-based Aloha Green announced they would begin selling the medicinal herb on Wednesday.
The state of Hawaii was among the first to embrace the efficacy of medical marijuana by legalizing the therapeutic plant in 2000. Permitted to cultivate but not to purchase their medicine, patients eventually convinced their elected officials to draft legislation legalizing Hawaii’s dispensariesin 2015.
Hawaiian dispensaries now open
Dr. Gregory Park, a co-founder ofMaui Grown Therapies noted, “it’s been a long, winding road to get here and we’re extremely excited.”
According to theStar Advisor, “The Department of Health certified last week the state’s first pakalolo testing lab, Steep Hill Hawaii on Oahu.”
A case of hurry up and wait, Hawaii’s dispensaries have had medicinal cannabis stocked and ready to sell for months. As a means of ensuring patients’ safety, all dispensaries were required to hold off on opening until the Department of Health certified an independent lab for testing Hawaii’s medicinal cannabis for contaminants and cannabinoid content.
Now officially open for business, Maui Grown Therapies had the distinct privilege and honor of selling Hawaii’s first batch of medical marijuana on Tuesday to Fred Rickert.
As for Aloha Green, the dispensary has been open to the general public since June 8, selling CBD products derived from hemp. No longer restricted to just hemp-based products, Aloha Green will officially open their doors for business today, finally selling real medical marijuana products on the island of Oahu.
CannaKorp is the first company to deliver cannabis in a single-use, pre-measured portion pack. This convenient and consistent system makes the experience more consumer-friendly. Similar to how single-serve coffee pods transformed the coffee market, CannaKorp is attracting both mainstream consumers new to medicinal cannabis as well as connoisseurs. CannaCups are fully recyclable (unlike Keurig coffee cups today) and have a peel off-cover to easily smell the product. The recyclable nature of the product is not only responsible, but it ranks highly in the value system of most cannabis users.
CannaCloud, the World’s First Pod-Based Cannabis Vaporizer System
CannaKorp was born out of one man’s struggle to find an easy way to use medical cannabis. CannaKorp co-founder Michael Bourque became concerned about the side-effects of medicines he was prescribed for anxiety when he turned his attention to the potential benefits of marijuana. However, he found the process of using marijuana overwhelming and complex: from choosing what strain and dosage to use to deciding on the actual method to consume it.
Out of that frustration was born the novel idea of making a device that was simple, approachable to any user with a consistent experience every time. He and several colleagues were working on the idea when they met Dave Manly, a retired executive from Keurig Green Mountain. Dave was consulting with some local start-ups when he met the team. As Dave dug deeper, he saw many analogies to the business he helped grow at Keurig as one of the first 30 employees.
The CannaCloud™ system used together with a single-use portion pack, the CannaCup™, extracts the medically beneficial compounds more efficiently while simultaneously offering a much safer and enjoyable experience than other alternatives. As a patient once said, “you are taking this out of the dark and into the light.” CannaKorp plans to produce CannaCups representing at least 9 “varietals” more akin to the categorization consumers are familiar with in the wine industry (cabernets, chardonnays etc.) or coffee industry (light roast, dark etc.). The move toward standardizing desired moods and experiences, will allow for experiences such as “dusk” for nighttime, while allowing plenty of variation.
Patents Filed with an Estimated Addressable Market of 25 Million Adult Consumers
CannaKorp CEO James Winokur talks how design and technology is making cannabis mainstream and why his company employs the the Keurig model.
Watch “CANNAKORP CEO ON THE ‘KEURIG” OF WEED VAPORIZERS” on Cheddar. Cheddar broadcasts live daily from Post 10 on the floor of the New York Stock Exchange, NASDAQ Marketsite, and the Flatiron Building.
Serviceable Available Market
With a multi-year plan to rollout its product with partners in jurisdictions where marijuana is legal, CannaKorp believes their addressable market includes 25 million users – 20 million adults in legal U.S. States, 3.3 million adults in Canada and 2.6 million Australia. The ability to service consumers will ramp up over the first few years presuming a learning curve for CannaKorp and its partners to acquire consumers and master the automated packaging process.
Intellectual Property Protection
CannaKorp has filed patents on the CannaCloud, the CannaCups and the interaction of the two for both design and utility. This was the same general intellectual property (IP) methodology utilized by Keurig and was done with Wolf Greenfield, the same Intellectual Property attorneys the team used in the past.
CannaKorp’s Products Can Be Sold Nationwide
CannaKorp does not grow or sell marijuana and thus avoids a great deal of regulatory issues and risks. CannaKorp’s revenue primarily derives from royalties paid by growers selling CannaCups. As such, CannaKorp’s products can be sold nationwide in any states which have legalized some form of cannabis consumption (as well as in other countries such as Canada and Australia).
An Experienced Management Team
Dave Manly – Chairman Dave has over 35 years of experience creating and driving consumer and investor value behind some of America’s most cherished brands. Dave’s career spans Marketing, Sales, E-commerce and General Management. Most recently prior to joining CannaKorp, Dave was one of the senior executives at Keurig/Green Mountain (NASDQ: GMCR) that revolutionized single cup coffee brewing in North America. As Senior VP/General Manager of both the Digital (e-commerce) and Away From Home Divisions Dave helped drive Keurig from <$50 million in revenue to over $5 billion delivering extraordinary shareholder value. Dave retired from Keurig in Fall, 2014. Dave holds a BA from DePauw University and an MBA from Purdue’s Krannert Graduate School of Management.
James Winokur – CEO and Co-Founder Also acting as Chief Operating Officer, James has responsibility for Finance, Sales & Marketing, and Business Development. James is a seasoned entrepreneurial leader with extensive experience in managing global teams in the areas of sales, marketing and support. Prior to CannaKorp, James served as Senior Director of Marketing and Business Development at PTC, a global software company, responsible for $700 million of PTC’s $1.3 billion in revenues. James was previously the Co-owner and General Manager of several Culligan Water Conditioning franchises throughout New England. James earned his BA and MBA from Boston College.
Michael Bourque – Chief of Innovation and Co-Founder Michael is the inventor of the CannaCloud™ system and is responsible for future innovation at CannaKorp. Michael is an insatiable inventor who balances idea creation with critical analysis, modeling and testing his innovations until they exceed his expectations in terms of performance and usability. Before founding CannaKorp, Michael served in various capacities at PTC, a $1.3 billion global software company. Over a period of 14 years, he worked as manager of quality assurance, product definition, director of two product development groups, and finally vice president of PTC University where he managed global teams in India, Israel, China, the UK, and the US. Prior to PTC, Michael was a machinist and computer robotic programmer for 12 years at MIT’s famed Lincoln Laboratory.
Ian Tinkler – Chief Technology Officer Ian leads the technology team responsible for bringing the CannaCloud™ system to market—including the CannaCloud™ vaporizer, CannaCup™ portion packs, and CannaMatic™ packaging lines. Ian was formerly VP Brewer Engineering at Keurig Green Mountain—joining Keurig’s engineering team in 2005 from Culligan Water Systems, where he served as Director of Research & Development. Ian has over 25 years of engineering experience and has served as Chief of Design for Electrodynamics and held senior leadership roles for Sundstrand Aerospace, including work on the B2 Bomber and Boeing 777. He holds an MBA from Rockford College and an HND Mechanical Engineering degree from Hatfield Polytechnic in England.
Jeremy Krause – VP of BizDev and Co-Founder Jeremy is responsible for creating and maintaining relationships and partnerships with growers and dispensaries. Having played Division I soccer at Providence College, he understands the value of teamwork. Jeremy brings more than 15 years of experience in consulting, sales, and relationship building, to his role at CannaKorp. Previously, Jeremy served as Team Lead at Redfin Corporation responsible for expanding operations and sales in New England. Jeremy earned his B.S. in Finance from Providence College.
Greg James – VP of Sales, Marketing & Partners Prior to joining CannaKorp, Greg co-founded Synchronal Corporation, a cloud-based software startup in the desktop storage and synchronization space, and also led the sales, marketing and general management activities at Proxy Networks. Previously Greg was a senior vice president at PTC, a Boston-based software company. Prior to joining PTC, Greg worked in both start ups and large organizations including: eAssist Global Solutions, Interactivebyte Inc., First Service Corporation, and Deloitte Consulting. He holds a Bachelor degree from the University of Toronto and a Masters degree from the University of Western Ontario
The CannaKorp consumer value proposition is very similar to Keurig
Keurig® is a registered trademark of Keurig Green Mountain, Inc. Use of the Keurig trademark in this presentation is for example only. Keurig Green Mountain, Inc. has no affiliation with or interest in CannaKorp.
Earlier this month, Tilray made a big change in how it will be marketing its medical cannabis products. Historically, it was selling its dried cannabis products under common strain names, but it has adopted a new strategy that it calls Tilray Profiles, a categorization and packaging system to simplify the process of choosing medical cannabis products.
The company issued a news release to explain the move and posted this video as well:
Some of the key points are that the company has nine profiles, included three for THC-dominant, three for CBD-dominant and three for balanced products. It uses a color scheme to denote the different profiles, and each category has three different potency levels (100 for low, 200 for medium and 300 for high). Tilray Profiles uses the same system for both dried flower and oil products, and it appears that the label will also include strain name, though the news release suggested that it would include just the category (sativa, indica or hybrid) and terpene information, when available.
The strategy that Tilray has adopted is similar to branded generics in the pharmaceutical industry. Generic drugs are alternatives to branded pharmaceuticals that are the same chemical compound that can be sold (with FDA approval) once the patent protection has ended for the original pharmaceutical. While there are some unique strains in the cannabis industry, most producers are selling the exact same ones. Tilray, by calling it “T200” instead of “Harmony”, has created its own brand.
While many consumers or patients may seek out a particular strain, new patients and especially doctors are likely to prefer the marketing approach of Tilray. One big advantage as a producer is that it can substitute different strains depending upon market conditions and still satisfy the customer, who is buying “T200”. The producer is also better able to discuss the attributes of its products when it has this proprietary name rather than a street name.
Tilray didn’t pioneer this marketing approach. Mettrum, which is now part of Canopy Growth (TSX: WEED) (OTC: TWMJF), was the first of the Canadian LPs to use color coding with proprietary names rather than common strains, employing the Mettrum Spectrum:
The Mettrum products fall into just six color-coded categories that apply to both dried flower and to oils (three oils, including high-CBD in yellow, balanced in blue and high-THC in red). Mettrum doesn’t share the name of the underlying strains. Interestingly, Canopy Growth appears to have extended Mettrum methodology to some degree to the rest of its products as seen on Tweed Main Street, which allows visitors to “shop by spectrum”.
Last week, Canopy Growth announced its new global brand as Spectrum as well, suggesting that the “intuitive colour-based system… has served to position Mettrum as an approachable cannabis brand in Canada.” Marketing by profile or by spectrum will most likely appeal to doctors and patients in new medical markets, like Germany, where both Tilray and Canopy Growth are both likely to be very active as the company implements insurance-covered, pharmacy-distributed medical cannabis.
ABcann (TSXV: ABCN) (OTC: ACCBF) uses the branded generic strategy to some degree as well, with its products offered without conventional strain names (though they are available to those who are curious) The bottle doesn’t mention the underlying strain name, which is “Nebula”:
MedReleaf (TSX: LEAF) (OTC: MEDFF) uses a mixed strategy, with some of its products sold with their street names and others under a different name, though it includes the common name as well, like “Stellio” instead of “Kosher Kush”:
Aurora Cannabis (TSXV: ACB) (OTC: ACBFF) also markets common strains under its own labels, though it makes clear the street name as well:
CanniMed (TSX: CMED) (OTC: CMMDF) takes a different approach with its oils and dried flower, describing the product solely by numbers based on THC and CBD percentages (with no revelation of the strains). CanniMed 1-13 means it has approximately 1% THC and approximately 13% CBD:
In the U.S., we have seen some examples of marketing by profile or spectrum as well. One that comes to mind is Vireo Health, which operates in Minnesota and New York and just won a cultivation and production license in Pennsylvania and was awarded pre-approval for both cultivation and processing in Maryland. It uses a five-color system, and it applies the spectrum to its oils, vaporizers and capsules.
While it is helpful to categorize by cannabinoid potency, one shortcoming is that these systems are not incorporating terpenes into their classification. Fortunately, many LPs in Canada are including terpene profiles in their test results. Here is an example of a test from Aurora Cannabis:
Look for these categorizations to evolve in the coming years as these companies begin to better understand the role of terpenes and how they interact with the cannabinoids.
Tilray’s new system of marketing its products reflects how the market is changing, with consumers and patients (and their doctors) becoming less focused on the street name and more interested in the effects of the products. The branded generic strategy for medical cannabis providers is one that could prove helpful, especially for oils, in competing in a commoditized market.
California-based brewery Lagunitas, which was recently purchased by Heineken International, has unleashed a beer containing cannabis extracts. The IPA, however, does not contain any THC, the compound that causes the marijuana-related high; instead, the SuperCritical IPA simply tastes like weed, without any of the side benefits of weed consumption.
California Cannabis = 1.800.420.4124 COMPASSIONATE CARE SUPPORT SERVICES
Lagunitas's newest IPA doesn't just smell like marijuana -- it contains actual cannabis extracts
Fritz HahnThe Washington Post
Brewers like to describe super-hoppy IPAs the way that they might talk about marijuana: "dank," "resinous," "sticky." It makes sense, after all: Both cannabis (pot) and Humulus lupulus (hops) are members of the Cannabaceae family of flowering plants, and both rely on compounds called terpenes to provide their essential flavors and aromas.
While breweries have tried to mimic the flavors of marijuana in beer - see Lagunitas's the Waldos, DC Brau's Smells Like Freedom and Oskar Blues's Pinner Throwback IPA - few have actually attempted to brew with marijuana extracts.
Last week, Lagunitas debuted SuperCritical, an IPA made with marijuana terpenes provided by CannaCraft, a California company that makes cannabis vape cartridges called AbsoluteXtracts.
"These are created using a combination of dozens of terpenes that we isolate and refine during cannabis extraction, and they are what give our strains their unique flavor and sensory profiles," says Kial Long, the vice president of marketing for AbsoluteXtracts.
Long says a number of terpene blends were prepared "with the Lagunitas-style taste in mind," and Lagunitas brewer Jeremy Marshall selected one that was a mix of the Blue Dream and Girl Scout Cookies strains, and then picked six different kinds of hops, including Summit, Tomahawk and Zeus, to match and balance the flavors of the cannabis terpenes.
In return, Lagunitas, which infamously had its license suspended by the California Department of Alcoholic Beverage Control in 2005 after an employee was caught rolling a joint at a brewery party, collaborated on a line of vape cartridges flavored with a mix of hop terpenes and cannabis oils.
"We really just wanted to pool our resources to see what we could create," Long said.
Because SuperCritical is made with the terpenes that AbsoluteXtracts removes from cannabis plants, it doesn't contain THC, so any pleasant buzz that drinkers might feel comes from the alcohol, not the cannabis. Karen Hamilton, Lagunitas's director of communications, wrote in an email that the beer is tested in the brewery's lab, and "lots of people have had the beer, at this point, and NO ONE has experienced any psychotropic effects (to the dismay of some!)"
The beer itself is a dank, odoriferous IPA, checking in at just 6.8 percent alcohol by volume, with grassy flavors, a decent amount of earthy hop bitterness and a noticeably sticky finish. It's not much different from other IPAs designed to mimic weed's characteristic flavors, though the taste is slightly greener.
Lagunitas is viewing SuperCritical as an experiment and produced only one batch of 60 barrels, or 120 kegs. Those went to bars across California, primarily in the San Francisco area, by late last week. (A full list is available on the Lagunitas website.) "There may be more SuperCritical coming in the future, and this time to other areas in the U.S.," Hamilton said.
California Cannabis = 1.800.420.4124 COMPASSIONATE CARE SUPPORT SERVICES