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Kyle Marshall is the founder of Morsel Bakery in Oakland CA. Listen in as Kyle shares how he deals with the challenges and opportunities in California since adult use became legal on January 1st. Kyle talks about real estate challenges, incubators, building a brand and driving a truck full of trim. http://www.morselbakery.com/
– Learning cannabis baking before finishing high school
– Discovering the affordable but high-potency niche for edibles
– Driving around a truck full of trim
– The challenges and opportunities in California
When California legalized adult-use cannabis on January 1st, it presented an incredible opportunities and challenges for many people in the industry. Today, Kyle Marshall of Morsel Bakery is going to give us a snapshot of his life in the cannabis community in California creating edibles. Kyle, welcome to CannaInsider.
Kyle: Matt, thank you for having me.
Matthew: Give us a sense of geography where are you in the world today?
Kyle: We are located in the sunny Oakland, California.
Kyle: Yes, yes, next to the water, beautiful Bay Area.
Matthew: You know, whenever I look at a seismology map which I do often that's the type of nerd I am, I noticed that Oakland is like bright red for earthquakes. Does that ever make you paranoid?
Kyle: You know, I mean that might be an implication or perhaps translated as an analogy for what's going on in the cannabis industry, you know, but no, not really. I think everybody here in California is a little numb to the possibility of an earthquake. So, it's one of the things we're willing to live with to live in beautiful California, so.
Matthew: Okay, good. And what is Morsel Bakery? What can you tell us about Morsel?
Kyle: Yeah. So, Morsel is we are infused products manufacturer based in the Bay Area and we specialized in affordable and potent infused products. So we've been, you know, growing with the industry for the past eight years and we're continuing to innovate and create tasty new products for people to get medicated with or I should say now to recreate with.
Matthew: Yeah. So usually, you don't hear affordable and high potency together. How did you arrive at that formula because I just don't hear that around?
Kyle: Yeah. So, as an infused product manufacturer, I think anybody in the industry, we all have to create what people want and that's at the end of the day what people demand is, you know, a good bang for their buck, yup.
Matthew: So you're like... are you like the Costco of a infused products that you're getting bulk size for cheap?
Kyle: I guess to an extent. You know, we like to make our own individual products affordable, and we like to say affordable but not cheap either. There's definitely a balance with providing a value but also retaining some value to your brand too, you know, that transcends the cost, yeah.
Matthew: Yeah. And how did you get started as an edibles maker? What's the background there?
Kyle: Yeah. You know, really not by choice. I think a lot of people in the industry can relate to, I didn't choose the cannabis industry, the cannabis industry chose me. You know, kind of in a way where it's the universe is incredible in the way that, you know, different things come together and I think it was really a right place right time. I was attending Humboldt State University in the year of 2009 and that was during the time that California was finally transitioning out of the black market into the gray market and now we're entering the new age and the new frontier of a full-on regulation. But really, you know, edibles ended up being really just the format in which I was best able to express myself.
You know, I wanted to, through what I did in my life, help changed the world and, you know, I think infused products really provide that platform for people. You know, there's a lot of creativity involved. I love to bake and I loved to consume cannabis, so that was, you know, a fantastic marriage right there.
Matthew: Okay, I like to express myself through quilting, Kyle, does that surprise you?
Kyle: That does, that does. I really wish I had the patients for, you know, a little bit more relaxing hobbies like that for sure.
Matthew: Yeah. I'd be happy to show you my Jedi quilting tricks if you're ever interested.
Matthew: So tell us a little bit this here. Now, you went to Oaksterdam University, what's that and what can you tell us about your experience there?
Kyle: Yeah. Oaksterdam was really interesting. That was, you know, one of the new fresh things that really helped bring the industry into an age of mainstream recognition. Oaksterdam opened up in about 2007, 2008 and I... you know, kind of a testament to how passionate I was about cannabis kind of early on is I ended up graduating Oaksterdam before I graduated high school. And, you know, that was a...
Matthew: What? That's crazy.
Kyle: Yeah. It was a... you know, I'm one of those late high-schoolers that ended up turning 18 while they're a senior. And, yeah, I mean it's just, you know, I saw this as an opportunity to kind of get my feet wet. You know, check out the early networking and it was really great. It was productive to see what people were interested in the industry and, you know, it was fantastic. It's like it was like a family reunion where, you know, the family hasn't been together for quite a while but you really find that, you know, cannabis really unites all different kinds of people in walks of life, yeah.
Matthew: Yeah. Unless you're my family and everybody just get drunk and fights, so that really depends on what family you're from. I'm like... and they don't do that. Mom feels like... Okay.
Kyle: Yeah. That's what we're trying to change with cannabis, for sure.
Matthew: We'll exhaust you today Kyle, I've had a little bit more caffeine than I normally do, so...let me explain a few things.
Kyle: Oh, no. I'm double fisting coffee and Red Bull right now, so I'm trying to catch up.
Matthew: Oh, my gosh, wow.
Kyle: It's like that.
Matthew: Well, you know, on January 1st, Adult Use was passed, it went live in California. The whole landscape changed. What's that's been like? What's the transition been like?
Kyle: Yeah. You know, I think the landscape has been, you know, you could only see so far into the horizon. You know, we're all walking the same steps. You know, and I think a lot of people had kind of a preconception of, you know, what was then happened in January 1st and, you now, the process has been a lot more collaborative and required a lot more patience I think than a lot of people anticipated. You know, I mean we felt that, you kno,w come January 1st, you know, the regulations were gonna be relatively absolute that the decisions that the state were making, was making, were gonna be effective immediately.
And so really what happened with the landscape is, you know, we were kind of, you know, the entire industry was already kind of on even playing field in the context of regulation who allows what. But, you know, you mentioned seismology earlier and I think that plays into this. It's very much been shaking up. And, you know, especially in the first months of January, there were a lot of different interpretations on the state law. And so that being said, a lot of people, you know, lost their place in the market, a lot of dispensaries had their own interpretation of how to handle the law. So, you know, we're still very much in the active states of really figuring everything out together, so.
Matthew: Yeah. And do you feel like more capital is flowing into the state and people are starting to get serious like, "Hey, it's go time now. The firing shot has been fired and people are off to the race and they're looking over their shoulder like, 'I need to put some distance between me and, you know, my competitors.'"
Kyle: Yeah. You know, I think that's one of the preconceptions that people had is that people were planning on or expecting big money to just jump into the game right away but, you know, one of the things that has limited investors in they're coming into the spaces, I mean we have, you know, properties were held up with loans, bank loans, you know, so there's a lot more obstacles than just, "Oh, hey, you know, California has it regulated." You know, there is big money coming in but, you know, you really see that in a very unique circumstances where they're utilizing, you know, a financial vehicle such as a Canadian public company or, you know, they have a public management company, or, you know, but still the industry is pretty... remain relatively grass roots. You know, there are a lot of people like myself, you know, that have been in the industry for quite a while and, you know, are looking to the investor community to kind of just expedite the growth of what we've established.
So, you know, it's investment, you know, doesn't necessarily dictate whether or not you're gonna be successful. There's quite a lot of, you know, capital coming in in the industry where even before January 1st there is a lot of capital coming in the industry and, you know, I mean really what reflects, you know, success in this industry is really I think, you know, whoever is operating that company with or without capital, you know, they're understanding what could be successful and what isn't in this industry.
Matthew: So, Kyle, let's talk about some of the challenges. You mentioned just briefly real estate but what has it been like trying to secure real estate for Morsel?
Kyle: Yeah. It's, you know... and I think there was about four or five years ago there is an article that came out with I believe one of the guys from Medicine Man and I think his quote really summarize it the best which is, "The Cannabis industry really is the real estate industry and people's growth and really people's ability to enter the market place is dictative of or dictated by the real-estate market and the real estate that they have." So, you know, I mean what we're really seeing here in the cannabis industry is, you know, we have a lot of people, a lot of participants, a lot of people who have been in the industry for a long time that are willing to comply with these new regulations, this new requirement of compliance and the ultimate obstacle is the real estate. And, you know, not only the real estate but also the limited amount of jurisdictions that are allowing manufacturing.
There are a number of jurisdictions that are licensing but very few of them are licensing manufacturing and furthermore, those that are licensing manufacturing in and of themselves have a very limited real estate market. So really what even the entire State of California which is the fifth largest economy in the world, you know, we're only looking at a handful of cities that are ultimately viable to operate out of. And, you know, when you're talking about a multibillion dollar industry with people that are very anxious to jump into it there's just a huge bottleneck.
And really, I think one of the biggest issues with real estate is that there is real estate out there and, you know, the biggest obstacle within real estate is the or are the property owners that you know are still from the Reagan era or, you know, from an era of prohibition or even if they've been... you know, have had that standpoint of a conservative view on cannabis, even some property owners have had a negative experience unfortunately with cannabis tenants in the past. So there is property, there are jurisdictions but I mean you stack all of those obstacles up and, you know, what we're left with is crumbs at the end of the day to find a place to operate.
Matthew: Yeah. In some ways I feel for the landlords because sometimes I'll walk past an industrial building in Colorado or some place and you can tell there's growing going on inside because it's just... it's the fragrance is so intense. And it's like they need some the industrial fans with filters on there. And even if you have those, you can minimize it, but you can't really get rid of it. And so what you have to do when a cannabis tenant moves out if they're cultivating, you probably have to... you have to do some more things to make it rent ready again. But it seems like there'd be...it seems like if you're a landlord there'd be an opportunity here to charge a premium to, you know, get cannabis tenants in there but it sounds like I'm wrong. What's happening with property values? Any spikes since January 1st or they're just maintaining, there already just nosebleed levels?
Kyle: Yeah. You know, again it comes down to who your landlord is or who your property owner is. You know, I mean if you're really lucky, you'll end up with a landlord that's understanding that will provide you a property with, you know, market rate. But finding that is like finding an affordable apartment in San Francisco. You know, it's extremely limited and I think, you know, the inevitability is whether you're in Oakland and you find a property with a higher than market value or you end up in another jurisdiction with a lower property value, I mean whichever way you cut the pie, you know, we're all operating on some kind of premium whether that'd be with the real estate or the fee and licensing process with the cities. So operating a cannabis industry is inherently and more expensive venture and that being said that much more challenging.
Matthew: Okay, let's talk about some opportunities. Once you surmount the challenges we talked about, what excites you the most about operating in this new environment?
Kyle: Yeah. I think, you know, I think the most exciting thing is that, you know, the industry is going through an incredible maturation process, you know, we've...especially the infused products industry. You know, there's been a lot of maturity in the flower, in the concentrate section I believe. But with, you know, with the edibles, you know, we've still been in the age of drip-on candies, you know, products that imitate a common snack food brands. I won't say any brand names or anything but, you know, I think that's the most exciting thing is that the playing field for regulation and for producing a product is a lot more even now. Obviously, you know, aside from the overhead cost which can vary widely, you know, that's the element of the playing field that is definitely uneven at least on the regulatory end and at least on a supply chain and pricing end. You know, I think the market is going to be driven more by the quality of the brands than they all are by the exclusivity of, you know, somebody happening to have, you know, the supply chain or the relationships at the end of the day.
So it's gonna be... you know, and I think too just to add on to that as I think, you know, we expected this maturation to happen a lot earlier on but I think it's, you know, I don't think we're gonna see the future of the market until perhaps the end of the year or early next year to see who's gonna be in the market and how that's gonna evolve, how it's going to evolve, sorry.
Matthew: No problem. How about cannabis incubators there in the Bay Area? Is there anything you can tell us about that?
Kyle: Yeah. We are, as I mentioned before, we are located in beautiful Oakland, California. And, you know, there's been a common theme of equity or equity incubation programs within Oakland especially. Oakland has been the poster child for equity incubation programs. I've been told that there's similar programs in San Francisco in Sacramento but I haven't explored the details of that, you know, in contrast to Oakland. But, you know, the equity program in Oakland has the best of intentions. You know, the people that voted in the equity program and I completely understand, you know, from the people who championed the equity program and the reasons for getting that past.
You know, obviously, as I mentioned before I mean there's a lot of exclusivity in this industry and I think it's fantastic, you know, that people have legislated, you know, a possibility for people who would be otherwise disadvantaged, you know, to have an entry or at least, you know, some kind of way to put their toe in the water with the industry. That being said, you know, equity is definitely a case-by-case basis. You know, with Oakland they...your equity partner has a lot like a marriage and it really depends on who you're with that dictates the quality of that relationship. You know, there's a lot of people that have qualified for the equity program that are leveraging licenses to do expensive asks especially early on when there actually was no incubation program and perhaps I'm getting a little too detailed here, but, you know, early on people were willing to give up over 50% of the equity of their company just to have a license, so, you know?
Matthew: Wow, that's a lot.
Kyle: Yeah. That was...and, you know, I mean there was definitely a lot of push back on the equity program and, you know, we've seen that hinder the growth in Oakland. But, you know, at the same time, I mean we have to be understanding of the flipside of the coin which is that this is very exclusive and, you know, I think it's been in the best interest of the local city government to champion the little guys, the small business owners. So, yeah, we've been very lucky ourselves to find a quality incubation partner, so it's been very exciting.
Matthew: You mentioned before that you think the future is brand-driven. Let's talk about that a little bit. What do you think... how do you go about creating a brand that will resonate with customers so that you stand out in this new competitive market place? I mean, to me it seems like there's just an abundance of cannabis in California. I know, people are buying it up like crazy but it's just like I feel like I'm in some sort of like Cheech & Chong wet dream when I'm out there. So it's like there's no shortage, so the reason people will buy one product over another is because they like the impact they get from it but a lot of times the story and the consistency. How do you look at a brand especially if someone that's created their own brand?
Kyle: Yeah. I mean, yeah, just like you said. There's plenty of options out there and I think at the end of the day it's understanding what your consumer wants, you know, your specific target consumer wants and also just having a quality consistent product through your good manufacturing practices and so on and so forth. I think the best way that the brand orientation can be summarized is that people buy brands, they don't buy products. And when you go to the... you know, when you're buying a candy bar, when you're buying a soda, when you're buying water, you know, at the end of the day, you know, what is your relationship with that brand? And I think, thankfully, in the edibles industry there's an element of creativity that allows you to express your brand and your product in a different way that could differentiate yourself from the competition as opposed to let's say flowers or vape cartridges especially. You know, I mean with vape cartridges, a lot of those producers are operating with the same technology, the same raw material, the same strains, the same everything top to bottom, you know, with producing that vape cartridge.
And I think the best way to draw a correlation there is that, you know, branding vape cartridges is a lot like branding water. Being that, you know, they're at the end of the day it's a water bottle. You know, your purchasing something to perform a function and, you know, it's more about the brand relationship than it is about the quality of the water because, well, all water is the same. And that's not to say that all vape cartridges are the same, I shouldn't say that. There's probably some people that are producing vape cartridges that are listening to this being like, "Oh, you know, I disagree with that."
But, you know, it's about that brand and how people feel and, you know, I think we live in an Instagram-oriented society. So people want to be seen with your brand. People want to relate to it. People want to embrace it. So I think that's...and I think we have yet to see the very tip of the iceberg with that in this industry.
Matthew: Okay. Now, you're obviously involved deeply in baking and making edibles, so your way of thinking about it is much...you've much more intimacy with day-to-day details of edibles. I was wondering if you could share a little bit about how you think about making butter. Can you tell us why you make butter and roll that feels as an edibles maker?
Kyle: Yeah. You mean butter specifically like the actual starting material of the butter and how that's changed?
Matthew: Yeah, and maybe start with why you pick something fat soluble like an oil, and butter, and so forth.
Kyle: Yeah. I mean from a consumption point of view the infusing cannabis into a fat delivery whether that'd be coconut oil, whether that'd be butter, whether that'd be vegetable oil, you know, at the end of the day infusing cannabinoids into a fat based where it could be soluble and where it could be delivered provides, you know... and again, this is just from, you know, a hands-on experience not necessarily quoting any, you know, scientific papers or anything but, you know, it provides the best delivery and really the most affordable and effective method of delivery.
You know, I think the industry is constantly evolving and there are a lot of people that are working with different homogenizers, you know, different things that they could put cannabinoids into to deliver. And, you know, us ourselves I mean we've spent a lot of time, energy, and money on exploring these different delivery methods. And, you know, as excited as I am, you know, about the cutting edge of the industry, at the end of the day I still come back to fat soluble or fat based, the delivery methods. Even with our drinks, you know, we focused on in oil or water emulsification as opposed to using unknown chemicals that deliver THC into your system.
So, you know, the delivery of cannabis has been very different over the years. You know, with producing butter we've...back in 2009, 2010 is where we're working with another edible company that I won't name the name too. That's, I'll say, very well-known for their high potency products in California.
Kyle: And yeah, I mean we started from that point and the technology is used still very widely which is a whole plant material cooked into butter with water and then pressed and distilled. So the, you know, the delivery method is constantly evolving over the years. So even within, you know, the context of making butter, you know, even that has evolved and changed over the years. You know, we started with green butter, we moved to concentrate infused butter and now we're finally at the point where we're utilizing a concentrated distillate oil which is now becoming the most common raw material for infused products, so, yeah.
Matthew: Maybe you can talk a little bit about the difference between green butter and concentrated distillate so people can get a sense.
Kyle: Yeah, definitely. Gosh, I'm trying to be clever here, I'm thinking of an analogy but I'll just go right to it. You know, the green butter is very green, has chlorophyll in it. So I mean the reason why we call it green butter is it's a whole plant extraction and the chlorophyll remains in that extraction process, and so you get a green color. But you get a green color and you get a cannabis flavor but you also get a fuller spectrum or really a total extraction of everything that's fat soluble in that plant material. So, you know, that was the very beginning of infused products, you know, kind of like how concentrate makers were doing... they were doing open plastic in their backyards, you know, I mean green butter is the glass tube and the butane can of the edibles industry.
And so now that we've graduated beyond that point, you know, the green butter was really by necessity. So, you know, we really didn't have... concentrates were not being produced in a large enough volume or a large enough quantity to provide a price point that was conducive to create, you know, an affordable product. So, you know, what myself and a lot of edible producers would do is we would drive them to the mountains, we would fill up a car or a U-Haul truck, literally packed full of trim.
Kyle: You know, I mean that's how all of us, you know, really got our start as driving on the highway with white knuckles and, you know, driving up to a metric ton of dried plant material and I mean obviously you can imagine the anxiety level that's associated with that. But...
Matthew: No wonder you're not worried about earthquakes.
Matthew: You've got bigger paranoias to deal with.
Kyle: Absolutely, absolutely. Yeah. Having the house full on our heads is a drop of the bucket compared to getting arrested by CHP. But, yeah, green butter was by necessity. You know, and now that this industry has matured and now that clear oil has become a common commodity, you know, there's no reason to compromise with green butter because...and to explain clear distillate. With clear distillate it's a heat and water based, you know, extraction process. What a lot of these oil manufactures are doing which very thankfully they're the ones that handle those white knuckles drives now which is fantastic.
So they take in the trim and what they do is they process it through their oil machines and what results is a very golden clear and cannabis-taste free starting material. So we're able to have a more consistent source of raw material that also doesn't result in a fresh-mowed lawn taste, I'll say that.
Matthew: Right. And I've experienced exactly what you're talking about. How do you think the clear oil compares in terms of how with the green oil with the chlorophyll and of the plant parts still in there?
Kyle: Yeah. You know, again I think it's one of those things that really deserves more exploration in the context of understanding what is the difference between the chemical effects of green butter versus distillate. And really a lot of us are operating on, you know, anecdotal evidence, you know, people who have tried this and that and, you know, have their own feelings about how the feelings differ. And for our opinion based on what we've produced and our transition really from a green butter company to a clear distillate-based company, it's a... the high is a lot more clear headed and, you know, I think within green butter you're getting all the other complex cannabinoids that provide that different high. And I think, you know, people end up with a groggier but also more relaxed, you know, high with green butter as opposed to clear distillate butter which provides you more higher functioning high. You feel very clean which is fantastic.
And so, you know, at the end of the day it's kind of a matter of preference and also a matter of where does your personal consumption preferences align with the products that you're consuming, you know. And the transition from being a green butter company to a clear distillate company was one of our biggest existential, you know, crises where it's like, "Okay, we'll, you know, do we stick with this format that we've had for years and years and years or do we make our product a little bit more expensive and a little bit less weed tasty with a different high?"
And I think, you know, part of our motivator to make that decision was that, you know, despite people wanting to get, let's say, very recreational with their edibles, you know, there's still a very loud representation of edible consumers that were like, you know, "I'm really tired of my weed-cookie tasting like weed, you know?"
Kyle: And I think that's it's, you know, and I mean you know, once you're compare and contrast there's no reason to compromise anymore, so, yeah.
Matthew: Okay. What about compliance? How do you deal with that in an efficient manner and how do you think about it in general?
Kyle: At the end of the day we try. We try our absolute best and in kind of as I was saying, you know, early on is that obviously we all expected, you know, things at this point to be a little bit more concrete and absolute. But the course of compliance requires communication. You know, I think the biggest component of being a compliant company is communicating with your regulatory body that, you know, you work with in particular. For us it's the California DPH, and, you know, for cultivators and for retailers, you know, it's more like the CETFA and the CalCannabis I believe I have had enough coffee but the other industry that regulates growing and so forth. But anyways, it's, you know, it requires constant communication because the regulators are...
Matthew: Schizophrenic? Sorry, sorry.
Kyle: I wouldn't say... maybe myself more than the regulators, but they're on the journey with us, you know, and they are in and of themselves on a journey to understand their own regulation that they put out. So, you know, we're quite literally, we're operation on emergency regulations which means that, hey, anything could change on any point which obviously, you know, in the course of trying to establish a product that's gonna be, you know, we're trying to achieve a point of stability. You know, having a constantly moving target is, obviously, a moving obstacle. I mean as long as you're in constant communication and perhaps pushing the envelope on how much you could actually talk to the regulators, you know, you'll be in a good place. I mean I'll say that the DPH has come to know me by first name by now whether for better or for worse.
But it's, you know, I mean that's... it's just, you know, the requirement of... you know, there's a human element, I'll say, to the law and to the enforcement of law.
Matthew: Sure, sure. It's always good to be on speed dial of a regulator. Don't envy that position, but, okay.
Matthew: Let's go to some personal development questions. Is there a book that had a big impact on your life or your way of thinking that you'd like to share with listeners?
Kyle: Yeah. I've been thinking about that question a lot and, you know, I guess even outside the context of cannabis is I guess to the course of my journey is that one of the biggest books that have hit home for me is, and the risk of sounding like a James Dean type or whatever, you know, is, you know, I really enjoyed the book, "The Catcher in the Rye."
Matthew: Yeah, that's great.
Kyle: I think it's, you know, that was the time in my life where I understood that, you know, holding it and being negative, you know, isn't gonna get you anywhere. And I think in this industry it's very easy to get frustrated, very easy to think other people are phonies, you know? And that's something that could get the best in this industry and, you know, as long as you remain positive and, you know, stay on that hill with your hands out and remain, you know, a strong pillar, you know, I think success is inevitable. But I think, you know, the ultimate lesson to be learned is I think cannabis is definitely a challenging test even for the strongest of entrepreneurs, so.
Matthew: How about, is there a tool you consider vital to your business or productivity you'd like to share?
Kyle: Yeah. It's hard to pick between, you know, all these incredible Web 2.0 programs that we have out and I don't know if I could still use the term Web 2.0. I know that's outdated in 2010 or whatnot.
Matthew: I call it, you know, it's like web infinity now, you got to say. It would be cool on the cutting edge.
Kyle: Yeah. The biggest pillars for us are G Suite. Google has done a fantastic job at creating a collaborative platform based on Gmail. Shoebox is a little secret.
Matthew: I love little secrets. Tell us your little secret, go ahead.
Kyle: Yeah. Shoebox is, you know, I think have been underrated and understated web program that's what they do is, if you're like me, if you work in a cash-based industry you're gonna have a lot of receipts. And so there's a... what they do is they send the envelope out to you and you just... rather than sifting through your Shoebox, hence the name, you just grab a handful of that. You just stuff it into that envelope. You seal it up. You send it out to... or you drop it in your nearest neighborhood mailbox and days later those receipts are rendered into a spreadsheet. And so they're even so much as, you know, retaining the image of the receipt telling you what kind of expense it is, and it's only $30 a month. So it's just a really incredible program. And I swear they're not paying me to say that, so.
Matthew: That's pretty clever how they combine, you know, traditional world of physical receipts with the digital world. That's great. Because you get all these things and like, "What do I do with it?" There's one app I like for it, right, is take a picture of the receipt and then it just sends, it emails it to myself as a PDF. It's a TurboScan, I like that because then I can be done with it, because I don't know what to do with these receipts, you know, I get handed.
Kyle: Yeah. And Shoebox kind of has a similar method where you could take the picture and it's not counted against your automated processing credits because I think you could process like 500 receipts a month or so, or something like that but it's...when you're constantly, you know, running around at the cannabis industry it's a, you know, basically grabbing a handful and stuffing it in the envelope is, you know, saves a lot more time as opposed to individually taking pictures. So it's been very helpful, very helpful.
Matthew: Before we close, is there any advice you'd have for entrepreneurs aspiring maybe outside the California market or in on what they can do to be successful?
Kyle: Yeah. You know, I think myself personally, you know, I've been ultimately born and raised in the cannabis industry so my experience can only speak to, you know, those that are in the cannabis industry. And, you know, the biggest thing for me is stay strong. You know, regardless of what obstacles come your way, as long as you have a...in your heart a strong passionate drive and a clear vision to manifest what you want to make happen in the cannabis industry, I don't think there's any stopping anybody. You know, there's been a lot of...I think a lot of people around me and who are first listening to this can attest and, you know, I mean quite literally every year has been a bounce back situation. And unless you're, you know, passionate to make a social change through cannabis, you know, succeeding in the cannabis industry really requires that, definitely more than any other industry, so.
Matthew: Well, Kyle, thanks so much for coming on the show today and educating us. I wish you all the best as you continue your journey in California as the Wild West gets tamed, keep us updated.
Kyle: That's a fantastic way to summarize what's going on. Thank you for that.
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Lastly, the host or guest on CannaInsider may or may not invest in the companies' entrepreneurs profiled on the show. Please consult your licensed financial adviser before making any investment decisions. Final discourse to see if you're still paying attention, this little whistle jingle that you're listening to will get stuck in your head for the rest of the day. Thanks for listening and look for another CannaInsider episode soon. Take care. Bye-bye.
Avery Collins is well known in the UltraMarathon community for excellence in competing but also his consumption of cannabis. Listen in as Avery explores why and how he uses cannabis and how it impacts his training.
– Is Cannabis a Performance Enhancing Drug
– What training on cannabis feels like
– Difference between edibles and smoking/vaping
– How to encounter a moose while running and survive
What are the Five Trends Disrupting The Cannabis Industry?
Find out with your free cheat sheet at https://www.cannainsider.com/trends
Today we're going to talk with an ultramarathon runner, Avery Collins, about why and how he integrates cannabis into his fitness regime and what it does for him. Avery, welcome to CannaInsider.
Avery: I appreciate it, man. Glad to be on.
Mathew: Give us a sense of geography. Where are you in the world today?
Avery: Today I'm in Buena Vista, Colorado which is just south, an hour south of Breckenridge. I guess for most people near Leadville would be a good way to describe it, just 30 minutes north of Leadville.
Mathew: Okay. There's a big race in Leadville. Is that right? Is that going on?
Avery: Exactly, [inaudible 00:00:59].
Mathew: Okay. It's pretty high altitude up there too, isn't it?
Avery: Yeah. Yeah. I think the town we're in right now is right around 8,000 feet and then Leadville itself is 10,000 feet.
Mathew: Ten thousand feet running, that's high. Okay. Well, give us a little background. How did you get into long-distance running or ultramarathoning?
Avery: You know, it's kind of a natural progression and really kind of just similar to most people. I got into college and didn't feel like paying for gym membership anymore, so I decided, well, running might be a good way to stay in shape. So my first six months of running kind of consisted of working my way up from 5K to half marathon and really running and laying down quite a few half marathons in a half-year period. And then after that, so my birthday war right around the corner. It was April and I was looking for my first marathon to do. I wanted to do it on my birthday.
So I was gonna do a marathon on April 26, which is my birthday, when I was turning 21. And I started doing some research and I found a race called the Blue Ridge Marathon in Roanoke, Virginia, and I got registered for the race. And under the tab there's an option to sign up for what's called the Unofficial Official Double Marathon. And, you know, it seemed like this really big adventure in which I really had no idea at the time what I was getting myself into, which I think was good to some extent. And I reached out to a family friend and asked, you know, "Hey, what do you think about me doing this double marathon?" And he asked if I had done a single marathon before and I said, "No." And he said, "Well, there's no way you're gonna finish thing if you've never done a marathon." And that was kind of just like the fire that ignited everything inside of me. I went and did that and it kind of just grew from there because I wanted to become more involved in the mountain world and kinda engulf myself in everything that had do with mountain running.
Mathew: So this might be a case of like, you have like authority defiance disorder, or somebody just has to tell you can't do it, and you're like, "That's all I need. I'm doing it."
Avery: Yeah. I mean, at the time, yeah. That was a big motivating factor and then, you know, I don't know. It was kind of this I enjoy the fear of the unknown and I had no idea what I was getting myself into and I liked that.
Mathew: Yeah. That is crazy. And then how did that end up being for you doing that? Were you like, "Gosh, I really wish I hadn't given..." and taking this challenge?
Avery: No. No, no, no. I had never felt that kind of low before in my life. But as soon as I finished I knew right then and there this was something I wanna continue doing. Excuse me, sorry. I kinda wanted to figure out, you know, where do I go from here, what's the next step, and that's when I started really research ultramarathons. And when I did this 50, I had no idea there were 100-mile races. So immediately after doing this 50, I'd say within that week I was in search of a 100-mile race.
Mathew: Wow, you have some special kind of genes that are from another planet. Okay. So how far do you run per week would you say?
Avery: When I'm in a true training block, for instance, like this month I'll be running about 80 to 100 miles a week, which is for what I'll be doing this summer on a lower scale, June and July, 6 of those eight weeks I'll be doing about 120 to 150 miles a week.
Mathew: Wow. Okay. That's incredible. And when you run 100 miles, you know, we have a mutual friend that introduced us and he told me a little bit about what this does. He participates in these ultramarathons and like it's not uncommon to have like toenails fall off and just like crazy things happen to your body when you run this far. Is that accurate?
Avery: Oh, yeah, very much so. And it's kind of ever-changing. I could go race after race with, for instance, no tail nail problem, and then all it takes is one random circumstance in a race and I lose four or five of them. But every race presents its own difficulties throughout the race. But the beauty of this sport is as you do more and more of them, they become slightly more predictable. But what keeps bringing me back is the unpredictability of running 100 miles.
Mathew: Wow, okay. And you're hanging around with some people that are also ultramarathoners. I mean, this is so much harder than just a typical marathon for it to go 100 miles. I mean, what do you see as a common characteristics among these group of people? How do you think they're different from your average everyday person? Is there anything you see?
Avery: Yeah. I mean, especially the people that I kind of surround myself with, I mean, typically it's really more the mountains or being in the mountains itself that is kind of the driving factor behind it all. And then it's just, you know, really enjoying being out and active in doing something all day long. To an extent, you have to be able to embrace the pain. So, I mean, a prime example, my girlfriend is also an ultramarathon runner. So we kind of share this commonality of really enjoy getting out and being outside all day long. And there's a great feeling of coming back home at the end of the day after being out for six hours and just feeling exhausted and mutually feeling exhausted. It's definitely hard to find, you know, a partner in life that can understand why you're doing this and why you're putting yourself through this much pain.
Mathew: Yeah. Well, I've run 5 and 8Ks and I was jubilant when I was done with that. There is that...I don't know, was that hormone that's released in your brain and you're around other people that have accomplished something, and it's just a tiny fraction of what you're doing. So I can't imagine what it feels like to, you know, get through that. So how did you first consider, you know, cannabis as something to do to help your performance or help recovery? What was the spark there?
Avery: I mean, there was no performance-related reasoning as to why. I mean, I was a cannabis user five years before I was a runner. So it was just kind of something that naturally came hand in hand. I mean, the day kinda came where I started using during runs when my buddy, my old roommate, we used...I mean, it was kind of a nighty thing. We would just have a social smoke on our bowl and he one night kinda presented the idea of, "Hey, why don't you do this before a run?" And I kinda had never thought about it. And so the very next day, that's exactly what I did and went for a run in one of my favorite parks and...
You know, it was like...and still to this day I like using inedible or hitting a vape pen before I run because of the simple fact that it... You know, it really allows me to become just locked in to the present moment. You know, I had an interview last night and I said, "It kind of makes everything much more vivid and you feel much more connected with everything around you." And I don't mean to sound like a hippie, but you feel very connected with the earth, with the rocks. For instance, when you're running or navigating very technical terrain down a mountain, it's as if I can feel just the finest grains of rock underneath my foot. I can feel the slightest movement of rock when it shifts. It's just this very connected feeling.
Mathew: Yeah. Now you're not doing like a six-foot bong rip. I mean, how much are you consuming before you run would you say on average?
Avery: Two to three vape pen rips I guess you'd say. I mean, I'm not gonna lie, I'll smoke a flower or two a few times a week. And then if it's an edible, typically, 20 to 30 milligrams before I run.
Mathew: Okay. And how would you contrast, you know, eating the cannabis versus a vape pen or smoking it, and then going on one of these super long runs?
Avery: I would say they're two different runs. I think for those that have used edibles before, I would call it a commitment. Once you take an edible you're in for a little bit more of a ride. I think it's just a much more intense body and head high, whereas I feel like when I smoke it's a little less body. I'm a little more in control and it's more head high. And, you know, it wears off a little bit faster too, whereas an edible 20 to 30 milligrams is I'm set for the next six hours of running, whereas a few rips off a vape pen or a bowl is gonna be, you know, a couple hours, maybe three at most.
Mathew: Yeah. Okay. And just so everybody knows, five milligrams is considered an introductory dose for people that have never used cannabis before, not to say that we're suggesting it or not suggesting, but that's just to give you an idea of where Avery's dosage come in. Okay. So, you know, I think before people would probably cannabis would make you not perform as well in the years past. There was no talk of it being a performance-enhancing drug. But do people...are they starting to say like, "Hey, perhaps this is a performance-enhancing drug." Where do you weigh in on that?
Avery: You know, I've had quite a few discussions on this. As far as performance goes, it doesn't enhance performance, I mean, and what it comes down to, I'm not a scientist. However, I have talked to a buddy of mine who has his Ph.D. in biochemistry. He spent 12 years in school. And he has done quite a bit of research for me. And he found that at the end of the day for any pro, there is a con to it. Actually, it hinders performance. I think where it kind of, if it is a performance enhancer, I would say it's not a physical enhancer. It's more of a mental. You know, it does allow you to kind of forget about everything else that's going on in life and kind of lock into the present moment. And that's gonna vary person to person too because, you know, for every person that really enjoys getting high before a run, there's another person that absolutely hates it and has, you know, anxiety and a panic attack. It's like it's not something for everybody, but I think if you can kind of tune into your body and tap out of everything else that's going on, you know, it allows you to kind of mentally be in a really good place as opposed to not being high.
Mathew: Okay. And what do your fellow ultramarathoners think about cannabis, and running, and also the racing authorities? Has that changed at all, or they're starting to become more open to it? They used to look at you sideways maybe, or what's that like?
Avery: I mean, the rules have actually...they've progressively been changing towards a cannabis user. So as of 2018, WADA, the World Anti-Doping Agency, that kind of oversees endurance sports, they officially made it so that you can now use CBD in race, in competition. However, you cannot use THC in competition. You can use THC all the way up until 12 hours before the event. Suggestively speaking, I would say, you know, it's a little safer to quit a week before the event, but WADA, in theory, does allow up until 12 hours before the competition. It's really nothing new. I'm just the first outspoken advocate for it. There is a lot of very, very competitive ultra runners, elite ultra runners some of the bigger names in the sport that are cannabis users. I mean, majority of them are. You know, it's kind of sad, a lot of are pretty ignorantly blind to the fact that there are a ton, half if not more of the community uses or uses every once in a while, and especially among a lot of the elite runners, it is a common practice. It's just that most people, they're not outspoken because they're worried about losing sponsorships which is understandable. It's also unfortunate.
Mathew: Yeah. And what do you think about keeping food down? I mean, when you're running 100 miles you got to be feeding in the run or eating something and you need to be able to keep the food down so you can get the nutrition. Do you think cannabis can help with that, or CBD, or [crosstalk 00:15:05]?
Avery: Yeah, absolutely. Yeah, yeah, yeah. I mean, CBD at the end of the day is an anti-nausea product per se. You know, I've actually personally never used CBD or THC in a race yet. I think moving forward now that CBD is allowed in competition, I may kind of dabble with that. But, you know, I've never had a problem, for the most part, keeping food down. But, I mean, for those people out there that do have that problem in a race, CBD is a great option, CBD oils, CBD capsules. And now that it's legal in competition, I think it's something people should use. It's a little more natural than taking something like Ibuprofen or Tylenol for inflammation. You know, most people don't realize or know that CBD is legal in just about every single state. So you can literally order right online and have it delivered to your doorstep.
Mathew: Yeah. Great point. And in Steamboat there, you've got the beautiful Strawberry Springs. I've been there once in the summertime to the springs. They're beautiful. Do you go up there and kind of immerse yourself in the springs to recover after a long run? Does that help?
Avery: You know, that's something I haven't used a whole lot. There's a single track trail that runs through there. So I run through there all the time but I don't actually stop there very often. I mean, it's more of just like... I don't know. Yeah, I've never really... I went maybe three or four times. I don't know. It's like a novelty to the town that I don't care for as much.
Mathew: Okay. And how about in terms of recovery? I mean, we touched on it just a little bit, but after a 100-mile run is consuming cannabis just something that gets you in a place where you can relax enough to just let your body recover, do you think it assists in that way?
Avery: Oh, absolutely. Absolutely. I mean, once I'm back in Colorado or I guess in a legal state, well, I guess, as far as CBD use goes, the first thing I try to do after a race is just douse my legs in compound and salve because it really does help get that blood flowing again and really cut back down on inflammation which in turn is going to help speed up the recovery process. And then if I, and say after a race, you know, a race like a 100 miles, you'll find that after the race, your body is still going. You think you'd be able to fall right asleep, but oftentimes that's not the case. It's like restless leg syndrome I think would be the best way to describe it which I really think is just a syndrome that a farmer made up to sell drugs.
But, you know, after 100, that's real. Your legs are still rolling, your metabolism is still skyrocketing and it's all whacked out of place. And, you know, taking a few hits off a vape pen or especially taking an edible helps calm everything back down, puts you right back into like a normal state where you can finally relax and fall asleep. But falling asleep is something I know a lot of people really have a hard time with after, you know, even a 50-mile race, 100K or a 100-mile race.
Mathew: What about the endurance athlete that's listening that's really kind of curious. They're hearing you talk about this and they're like, "How can I integrate this into my fitness regimen so I can perform at a different level or experience what you're talking about?" What do you suggest?
Avery: You know, I think one of the best starting points, if you're looking to use cannabis more on a cycle active level or in other words getting high, you know, I suggest using it at night before bed to start because that's kind of a safe place for everybody. It's a judgement-free zone. Give it a try right at home, you know, maybe an hour, two hours before bed. See if you like from there. And then, like we were saying, you know, the packaging on these products says 5-milligrams or 10-milligram doses. I would suggest taking whatever the package says or even cut it in half before a run. Typically a good time to take it before a run is about 45 minutes before a run because then it's going to kick in as you begin the run, say, a mile, two-mile, three, it should be starting to kick in. I think a good learning lesson that I could kind of help others with is taking too much and not getting out the door on time could be problematic.
You know, once you're actually moving and going, it's very easy to continue moving and going. But if you kind of stay in a stagnant position and sit around, once it kicks in, it can perhaps cause you to be a little bit more lackadaisical, especially for someone who is not an avid user. I think once you begin to use more the stigma of being a lazy stoner, that's something that's really easy to actually kind of stay away from once you're an avid user. And then, you know, you just kind of get a go from there. I would suggest, you know, a lot of people make the mistake of taking, say, five milligrams, nothing happens after an hour, So they say, "Screw it," and take 10 more. Nothing happens in 10 minutes and they take 10 more. That's a bad idea. I would not suggest taking that.
Mathew: That happens all the time. It's like a waterfall effect. Like, "Oh, this didn't happen. I still don't feel it. I still don't feel it." And then they're on a rocket ride to the moon.
Avery: Oh, yeah. And then two hours later, that's when the anxiety kicks in.
Mathew: Yeah. Now you're out there in the wilderness, up there in the Yampa Valley, and do you ever encounter wild animals and which kind?
Avery: Oh, yeah. Absolutely. I mean, I would say on the average summer, I will run into about 5 to 10 bears on a bad summer. So, for instance, a bad summer would be a dry summer. When it's not raining much, there's not a lot of food in the mountains. Everything is kind of dying off. The bears tend to work their way towards the human population a little bit more because they start scavenging dumpsters and what not. And the first summer, I probably ran into about 25 to 30 bears. It was kind of like an every other day occurrence. You know, I've been lucky and I can say I haven't run into a mountain lion because personally, that's...I don't wanna run into a mountain lion. But, you know, moose and elk are pretty frequent depending on the season.
It's pretty normal, especially in the Yampa Valley, there's lots and lots of moose. Elk is a little more seasonal, but you see moose all of the time on just about any trail. But people kind of in that area know where to look out for moose, where to look out for a bear, where to at least be a little conscious of the fact that you're in mountain lion country especially depending on the time of day. If you're out before 8 a.m., you know, you should be making noise because mountain lions are more active through the night into the early hours. But, you know, once you kind of break out of 8, 9 a.m. into the afternoon, it's definitely a safer time of the day to be out in the wilderness.
Mathew: Okay. And what do you do if you encounter a moose? I mean, they're actually amongst the most dangerous. They're just very unpredictable. They're enormous. I don't know. What do you do?
Avery: You know, after running after into who knows how many moose, I actually was on a night run a few weeks ago and I was wearing instead of a headlamp I was wearing a waist lamp. And unfortunately couldn't see a moose and just about got clotheslined by one. It's probably one of the more scarier encounters.
Mathew: Oh, jeez. Hope you didn't have a 30 milligram edible going. "I just sped into a moose."
Avery: Yeah. We'll say it was pretty close to that. [Inaudible 00:23:37].
Mathew: So you're saying that moose are nothing really to worry about as long as you just keep a safe distance or what would you...? Any suggestion?
Avery: I mean, you should be. I wouldn't say worry, you don't have to worry. You just need to be smart. Yeah, keeping a distance. Their vision isn't very good. So standing behind a tree is actually a lot safer than it sounds. I mean, you could stand behind a narrow tree and it'd be fine. They're not laterally fast animals. I mean, they can only really go forward backwards. So, you know, if you were charged by a moose, jumping basically laterally from tree to tree would be a very safe bet. But what it comes down to is, you know, if you see some baby moose in the area, you really need to either reroute your run or perhaps, like we said, keep a safe distance and maybe go up an embankment and around the moose. But keeping an eye on them is important. But if you're not posing a threat to them then, you know, oftentimes they're really not that bad. They don't charge frequently. But of all animals, they charge more than most.
Mathew: Okay. Wow, I really knew how serious it was there when I got there and all the good dumpsters and everything have bear locks. It's pretty serious stuff because they're just everywhere.
Avery: Probably, yeah. Oh, yeah.
Mathew: Well, let's transition to some personal development questions. Is there any training tool or equipment that you would recommend for I guess either aspiring ultramarathoner or someone that's maybe just getting started?
Avery: Yeah. I mean, some of the beginning, more essential equipment would be something like a pack. So I use an orange merge [SP] 12-liter and 20-liter pack depending on the run. Obviously, the shorter the run, a 12-liter pack. Really short runs, I'll use hand-held. And I think especially if you're a beginning ultra runner, you probably should be overpacking. Or if you're in the mountains, a rain jacket is always good. One tool I began using last summer especially on long runs that I can't perhaps carry enough water, I started bringing a filter, a water filter so I can drink out of rivers, drink out of ponds, even streams on the trail. And that could be a possible lifesaver. And then also just finding a good trail shoe.
I've been...one that I kind of lean towards... Well, so I run for Inov-8, but I personally run more in a lower drop shoe, something that's a little bit more natural, a little more minimal. And a headlamp is one investment you need to make as well which is also something you can always...it's smart to put in your pack if you're going on an afternoon run, even if you think you're gonna be back home within two hours. You know, accidents happen on the trail. You could trip. You could roll an ankle. And it's just good to be prepared for the worst. And with that being said, it's always, not that...you know, I'm definitely guilty of not doing this, but it's a good idea to bring extra calories in case you find yourself in a pretty tough situation where you're moving really slow and you could be taking a long time to get back to your car or the trailhead.
Mathew: Okay. And are you still sponsored by The Farm out of Boulder?
Avery: Yup. Sure, I am. Absolutely tremendous sponsor. You know, I don't know how I would afford my lifestyle without them.
Mathew: Yeah. They're a great group and also a great dispensary. When I'm in Boulder I drop by there. They're eating nice. They're kind enough to give me a tour, and show me around, and just a very professional group. I always say like if Martha Stewart wanted to go to a dispensary, it should be The Farm because it's just so clean and organized. It feels like a Pottery Barn or something like that.
Avery: Exactly. I describe it as a five-star restaurant.
Mathew: Yeah. Well, are you looking for any more sponsors?
Avery: Yeah, yeah. You know, I specifically I'm looking for a more CBD-oriented sponsor at the moment. I ran for Mary's Medicinals for a couple years and unfortunately, they're not going to be a sponsor moving forward this year, or at least not that I'm aware of. So, you know, something that kind of can supplement that would be great, more of a recovery-based product. And then I'm just always open ears to ideas or possible sponsorships, partnerships. Currently, The Farm and Incredible Edibles are essentially my two cannabis sponsorships.
Mathew: Okay. And how can people reach out to you if they want to connect with your or follow you?
Avery: So I'm on Instagram @runninhigh, and that's running with no "G" at the end. And then on Facebook, add a simple Avery Collins or at Google, Avery Collins. Facebook, I'm sure it would pop up. I don't know do Twitter or any of the other fun stuff. I try to keep it somewhat simple just enough to make the sponsors happy.
Mathew: Yeah. Now last one question. Do you think there's a cosmic balance and the reason that you're so active and endurance-oriented is because I'm so slothful and the universe brings everything into balance? You don't have to answer that question. I'm like joking. But anyway, Avery, thanks so much for coming on the show today and educating us. And good luck with all your marathons, and races, and everything. We'll be watching out for you.
Avery: Yes, sir. I really appreciate it. Thank you.
Contact your licensed physician before taking cannabis or using it for medical treatments. Promotional consideration may be provided by select guests, advertisers for companies featured at CannaInsider. Lastly, the host or guest on CannaInsider may or may not invest in the company's entrepreneur's profiled on the show. Please consult your licensed financial advisor before making any investment decisions. Final disclosure to see if you're still paying attention, this little whistle jingle you're listening to will get stuck in your head for the rest of the day. Thanks for listening, and look for another CannaInsider episode soon. Take care. Bye-bye.
In this interview, Ana Hory of Enlucem discusses the data she has collected from interviewing over 1500 customers that have visited dispensaries for the very first time. What do they buy, what gender are they, how old are they? Find out in this interview.
Learn more at:
What are the five trends disrupting the cannabis industry?
Find out with your free cheat sheet at https://www.cannainsider.com/trends
Matthew: Hi, I'm Matthew Kind. Every Monday look for a fresh new episode where I'll take you behind the scenes and interview the insiders that are shaping the rapidly evolving cannabis industry. Learn more at cannainsider.com. That's C-A-N-N-A insider.com. Now, here's your program.
Just a quick reminder before we get started. In this episode, me and the guests will talk a little bit about dosaging with cannabis, and this is provided just for informational purposes only. Please speak with your doctor before considering taking cannabis, how much or whether to do it at all.
We often talk about existing cannabis customers on this program, but who are the brand new customers who are trying cannabis legally for the first time and making their first dispensary purchases? We're going to find out the answer to this question in our interview today with Ana Hori from the Enlucem. Ana, welcome to CannaInsider .
Ana: Thank you.
Matthew: Give us a sense of geography. Where are you today?
Ana: I'm in Sunny Los Angeles, California.
Matthew: Okay, and what is Enlucem?
Ana: Enlucmn is an online community. The idea is to have a place where patients who have benefited from using cannabis to treat illness or reduce side effects with pharmaceutical meds, to share their stories so that other people who find themselves in similar situations or having similar ailments to learn from those experiences directly from other users.
Matthew: Okay. And what got you into this business? What were you doing before and what was kind of the motivation to spark this idea?
Ana: My background is in product and brand development. I have a passion for creating new products, new ideas, and the cannabis industry caught my attention a few years ago when I came across a book about the industry called "We the people". And there was the first really interaction when I learned a lot of details on how cannabis was using, was helping a lot of consumers to treat ailments, so that got my attention.
Matthew: Okay. And you've spoken with a lot of people in different geographies about their cannabis use and gathered data. Can you tell us about that?
Ana: I've conducted two quantitative studies across five largest legal cannabis states, including California, Colorado, Washington state, Oregon, and Nevada. A total of 1800 people, both users and non-users of cannabis.
Matthew: Okay, and what have been your illuminating insights or any kind of trends or things that you pop out?
Ana: One of the things that I've learned was that the first-time users are very different than current users. It's interesting because...well, there's a little small slice of the population that is still not understanding the benefits on...are concerned that since it's not legally federally, that might be a problem with it and that's like 17% of the population. Everybody else, 83% are like talk to me, they're either users or they've used in the past which is really exciting.
Matthew: Okay. So let's just kind of contrast first-time users and existing users. What, what is the real difference between the two? I imagined that existing users feel more comfortable with how much of their purchasing and things like that?
Ana: Absolutely. What we find is that the ones that use on a regular basis, are very familiar with the type of products, some benefits, they've used for many years, so cannabis is not new to them. But the ones that are newbies in this space, the first-time users, which is about 21% of consumers, they are mostly female, about 67% of them. Their age range is between...like the core is 45-65, so they're slightly older than the current users, which tend to skew a little younger. But they're curious, they want to learn more about the benefits of cannabis. It's the grandma who has arthritis and has been using opioids to treat it and doesn't like that experience. It's the mom who's overworked, keeping the house organized, the kids on their schedules and has a full-time job, but suffers from insomnia. It's also men who lead stressful lives and are looking to find ways to unwind. Or the 50-year-old who suffers from back thing and he's looking for healthier alternatives to treat it. Those are the first time enthusiastic that I learned from my studies.
Matthew: Okay. So let's say I'm a dispensary owner and I'm trying to coach a budtender on how to welcome new customers differently than existing cannabis enthusiasts. What would your suggestion be if you were looking over a budtender's arm and the customer says, "I've never used cannabis before." How would you approach that person?
Ana: You know, it's really, really important for the budtender to be very knowledgeable and to listen a lot to what that patient is telling them. So I would suggest first thing, engage him or her and understand what they're looking for. Is it an ailment? How long that have they had it, have they talked to a physician, has the physician given recommendation. And then understand what comfort level they have with different types of products. Are they open to smoking? Have they smoked weed before? So for example, if smoking is a preferred format for a first-time a dispensary consumer, if it's a format that are open but they haven't smoked before, maybe a pre-roll, may be more easier for them to experience cannabis.
But chances are this first-time user also want to... When a consumer carry products that are more discreet and if they are open-minded to smoking, they'll probably want something like a vape pen because you know, the scent of cannabis is not as strong. But from my studies, they generally prefer other types of formats. Edibles and topicals first versus smoking in general. Next, it's very important that the budtender shows different types of products, explain dosage, how much should they start from? It's really important that they start with a low dose, maybe three to five milligrams of THC. So that the consumer learns what's their tolerance level to make sure that they have a good experience with the product. And lastly, they should be knowledgeable enough to answer any questions that the patient might have.
Matthew: There's kind of like an ecosystem shame to the people who have never tried cannabis before where they say, "Hey, if I pull this out in front of my friends who also have never tried before, do I look like I'm a crazy person?" So they're not going to be doing dabs with a crowd if they're a first-time cannabis user, they're not going to be doing, you know, maybe offering, you know...wax or things like this are not appropriate, because they have this, you know, they're pulling out this, this product and they, they're kind of sensitive to what their, perhaps their friends or their family or their spouse might think. Which kind of leads me to the next question. How do people...first-time users consume? Do they do that at home? Do they do it outside with a spouse, a friend, in the car at work? What have you come up with?
Ana: Absolutely, 95% of users use it at home, which is interesting, I was surprised. It's pretty consistent across all states.
Matthew: That's high.
Ana: It's really high, it's mostly something they do at home. About half the time they do it alone, half the time they do with other family members or friends. And the current users actually, even though they...half the time they're using with friends, it seemed to shrink. It seems like the using it by themselves tends to be a preferred format than with others, which was surprising to me.
Matthew: I guess they want to kind of figure out how it's going to affect their behavior before they think of their friends.
Ana: I think so, too.
Matthew: Yeah. Okay, so I can almost think of how you can position this to a new dispensary customer. You can, you know, you mentioned they're using it at home so you could say so when you get back home, whether you're using this with your spouse or your significant other, you know, and then you walk in how to use it. Like just press the vape pen, screw it in and there you go. The pre-rolls, you know, I've been looking at the data of what sells in dispensaries and the pre-rolls are just unbelievably popular and I think it's just because they're so easy, and it's taken something that used to be hard, especially if you have fumbling Mr. Maggio fingers like me, and you're trying to roll a joint and then you've got those beautiful pre-rolls that looks like, you know, Zeus or some mythical figure did it for you and it's just perfect. You're like, "Gosh, this used to be something that was hard. Now look how beautiful this is. And it's cheap." Sometimes it's given as a little bonus, too. Its like, "Hey, you bought $50 worth of stuff. You get a free pre-roll."
Now, in terms of, you know, we talked a little bit about people coming in and trying to treat a specific symptom, but is there, can you kind of break down what the biggest symptoms are kind of like if we're looking at a pie chart, why new customers are coming into dispensary's and what it is they want, like what's their desired outcome?
Ana: It's interesting that for this particular question, both current users and future users or people that are interested in using, they say that they are interested in using or use it for the exact same reasons in the same proportion. So the number one thing is to relax, that's the one thing that they're looking for. The second thing is pain relief, and it's across the board. Next, is anxiety relief and then treating insomnia. Those are the top four reasons why people use cannabis and it's pretty consistent across states and users and non-users.
Matthew: I wonder why we have so much anxiety in our culture now. Do you have any clue there? I mean because things are changing so rapidly. There's no kind of anything, any steady or stabilizing things in our lives, it's all just up in the air?
Ana: No, I've read a lot about just consumer behavior in general, and I think people lead stressful lives, you know, if you're live in a large city you're faced with traffic and you drive far and if you have kids and you're married, that aspect of it. There's the financials, there's the political environment we are in today. So everything that we're exposed to on a daily basis generates some type of stress and anxiety and people manage anxiety differently.
Matthew: Yeah Now, let's talk a little bit more about the breakdown of how the consumption takes place, because you mentioned pre-rolls, you mentioned vape pens, but do you have any kind of numbers or anything around them so we can get kind of an idea of how much the first time consumer likes to consume each one of those?
Ana: So for the first time consumer, and that's very different from the current user, 55% of them are planning to have edibles, which is not surprising. Edibles to your point earlier saying that they probably don't want to show people that they're using, it's very discreet, it doesn't smell, you can just have it in the a convenience of your home. And then 55% of them are interested in using topicals, lotions and 35% tinctures. When you look at the population of current users, that changes dramatically, 69% of them smoke flower, 50% edibles, 44% pre-rolls, 30% vape pens, 25% concentrates, 25% topicals, 22% drinks and 17% tinctures. So you can see how very different, even though edibles is somewhat similar, everything else is very different.
Matthew: Interesting. Gosh, you know, the topicals, that's higher than I would've thought, so that's good to get that data. Okay. And any insight onto what strains or what type of flowers being smoked for the first-time consumers?
Ana: Well, first-time consumers, they're really not open as much to smoking flowers and so strains and the different types of strains doesn't really impact them as much as current users. Current users they like the traditional ones. Blue Dream, Gorilla Glue, GSC, those are the most popular strains. But for the newbies, they are not very aware or familiar with strains. They're looking to solve, to get the effect or something that will help heal what they're going through, or trying to heal, so the strain is secondary.
Matthew: Okay. And how big a concern is dosage? What can you tell us about initial first-time cannabis consumers dosage questions or preferences or anything around dosage?
Ana: You know, this is one of the most important pieces I find. I, myself, experienced a lot of different situation, especially with edibles, where I'm given something that, let's say, has 100 milligrams and I have to cut it in pieces and it's never precise, right? So sometimes I don't get enough, sometimes I get too much. So for them it's the difference between having a really good experience to having a very bad experience. So my recommendation to first-time consumers, it's always just start small and to look for, let's just say edibles as an example. Edibles that are tested by piece. So for example, let's just say I buy a bag of gummies, and that bag has 100 milligrams of THC. I'm looking for a product that has 10 gummies inside, so I know that each one should have 10 milligrams and even then I cut it in half so that the dosing is small. So tested and certified that each piece has that dosage ist very, very important.
Explaining to them to start small and to wait before having more. As you know, edibles take longer to digest because they're absorbed in the stomach, so they can take anywhere from 30 minutes to two hours depending on not only the... And how the patient, if have they just eaten? Is their stomach full? How big are they? What's their weight like? So all of these things combined can make a difference. So that's why it varies greatly from person to person.
And then we'll just talk about topicals for example. If the problem is inflammation or pain, you're looking for a topical that has high CBD content. The higher, the CBD content, the quicker acting it will be. And the advantage of the topicals is that you don't have any psychoactive effect, which I think it makes people more willing to try, especially if it's something on your skin or in your muscles. It makes absolute sense to do so.
Matthew: And that's does work. I've tried some topicals and some family members have and, you know, it does work for soreness and so forth. So I think that is kind of a good entry. I thought, you know, we might be farther along in terms of people knowing dosages, but I guess a kind of a first-time dosage of people. Many people call it like a rookie cookie or a bar would be five milligrams, but still, there's lots of instances everyday of people taking, you know, 100 milligrams and freaking out and hallucinating and things like that. So what typically happens for people that are listening that are not aware is that, you know, you take some, you wait an hour and they say...someone says, "Nothing's happened. Nothing's happened." So they take more. And then when it comes on, it all comes on at once and you hope you got the right dosage.
So it really is much better to start slow and I'm not... And just think like, "Hey, I might have too little tonight." And that's okay because the alternative cannot be...can be unpleasant if you go that route and start eating more, taking more edibles. I like some of these new things are coming to market, these low-dose, like individual candies and stuff from like Kiva confections, I think they're called Petra, they're...I don't know if you've seen those, but I think they're mostly in California, but they're designed just for what you're talking about, it to be kind of like this maintenance mode type of effect. It's not like, you're not going heavy. It's just like you're hitting a single there. Is that, is that what your experience is?
Ana: Yeah, that's my experience. And that's what I tell everybody. I'll have a lot of friends that approached me asking how should I do it. How should I start? And I always tell them, start small, start with something that you know exactly what the dosage is going to be, and that's when you have the best experiences for sure.
Matthew: Okay. What have you seen since legalization began in California? Anything interesting there? What's it...is it...is the Wild West being tamed?
Ana: It's interesting, I think people thought, you know, in California, it's been medicinally legal for 20, almost 22 years. So I had no idea that that was the case, I didn't even know it existed. So a lot of people thought, "Oh, now it's going to become recreationally legal and it's gonna, you know, mayhem." No, there's, there's no real change. I think the biggest challenge is that there's a lot of dispenses who are still not fully licensed in this new...they all had to get new licenses, which has been a process. So I think it's been just very slow. And for consumers themselves, it's really hard, they don't know where to go. Often times they call me, do you know what dispensary opened that I can go buy product? And I have to just call them up and find out because it's not even displayed on their websites, oftentimes you don't know. So it's been a slow process and hopefully things will improve. But I heard a number a few weeks ago that, I think there's about 2,000 or so dispensaries in California and back like a month ago, there were only like 300 or 400 that had a license.
Matthew: Oh, wow!
Ana: Which is not good, but they have until July 1st.
Matthew: Yeah, that's not good. And I know some of the different marketing platforms aren't even...are being told the by judges not to show the unlicensed dispensaries. So it's kind of getting interesting now as this all... So I guess these companies will fall in line or kind of go by the wayside. So this is interesting. Now I know some flour producers, cannabis growers in California, they call their product organic. Can you call cannabis flour organic in California?
Ana: You can't. And here's why, and it's such a shame. So the agency that gives the organic certification is the USDA, which is a federal entity and since cannabis is not legal federally, they can't issue organic certifications. So the right way to do is for farmers to say it's pesticide free and cannabis users, consumers, they understand that that's the case, but the ones that are saying it they will not be able to say it now...that it's...with a new licensing rules, they're being a lot more strict. And it's unfortunate that you can't call it organic.
Matthew: I think it'd be great if we did with food is call food grown with pesticides say grown with pesticides and then say pesticide free because then people, I mean, this organic labeling is great, but I think just doing it that way, grown with pesticides. You might say, "Oh, I don't want that."
Ana: You're absolutely right. People would stop buying for sure. That would help us tremendously, help us by, I mean, people that are more health oriented or, you know, healthy eating.
Matthew: Now, do you see the initial cannabis consumer preferences evolving over the next few years? Any kind of trends or things you see in motion that kind of piqued your interest in how things might unfold?
Ana: Yeah, absolutely. Within the legal states, the brands will likely start consolidating, and what are we going to start to see is clear winners that have not only launched strong products and brands, but they are introducing innovation and a delivering consumption experiences that are seamless with products that are consistent and reliable, easy to find. What we find so far is that you find a product you like and it's really hard to, when you go back to the same dispensary, to find that product there. So with time I think that will stop happening because then it's just going to have solid brands that will continue to build their presence. And then you can also, the way I see it, if you want to think of how is it going to look like three to five years from now, it's going to start behaving more like a consumer product goods companies.
So if you look at how their products have evolved through time, that's what we should expect. So for example, there'll be new product segments, there will be segments that are low sugar, non-dairy, there'll be new formats, extra strength for example, flavors, consumption methods even, portable storage, things that are more social for social use, packaging, different value sizes, bigger, smaller, things like that. So that's what I expect, and then when we talk about other states, as more states move to legalize cannabis, there'll be a lot of licensing opportunities for established brands in these current legal states to expand to these new states.
Matthew: Yeah, that makes sense. A lot of them are starting to do that now, we're starting to hear about that. It's challenging, though, I mean, think about how all the unnecessary work these brands have to do because it's not federally legal like I can give you all the intellectual property, but you just aad the, you know, THC there on site. It's really a shame. I think they could really, we could be moving a lot faster if it was federally legal, but at the same time it is kind of nice that it's Balkanized like this because there's no massive, massive brands yet, so a lot of different people can get involved and participate still. So I guess there's trade-offs there.
Matthew: Well, Ana, I'd like to ask a few personal development questions to help listeners get a better sense of who you are personally. So with that, is there a book that has had a big impact on your life or way of thinking that you'd like to share?
Ana: I would say books by Malcolm Gladwell, particularly "The Tipping Point and Outliers." I liked the way he writes. He's very, I would say casual, he writes it in a way that's almost like he's talking to you and I've seen him speak also. So to me his books help spark ideas on how we could approach new markets or strategize and better understand market dynamics. So it's been very useful to me.
Matthew: Okay. Is there a tool, web-based or otherwise, that you consider vital to your day-to-day productivity that you'd like to share?
Ana: Yeah, we use Base Camp. Base Camp as a software and it's a great way to keep everyone on the team informed on key projects, milestones, deliverables. It's a good way for me to track who's doing what. I don't like wasting time and I think sometimes work can be duplicated unless it's very clear who's owning each piece of it, and it's also a great place to upload documents and shared. It's also a very easy interface, I like it a lot. Though it can get a bit pricey, they do charge a monthly fee.
Matthew: Yeah. I'm a big fan of those guys. The two founders, Jason Fried and David Heinemeier Hansson. They're both interesting characters and also fun to follow on Twitter, they have a whole...a book that I read called "Redesign". I think it's called "Redesign" or "Rework." I can't remember, but it's all about like don't have meetings. You don't need meetings and just because your Outlook calendar books, you know, meetings in 30-minute chunks or 60-minute chunks. He's like you don't have to book them in those time periods. You could book it for 13 minutes, but just by default there, you know, Outlooks says 30 minutes or 60 minutes, so they have all these the counter-intuitive ways of thinking that I find really helpful. But you're right, Base Camp, I think they've just raised their price quite a bit, too, for new customers even so that's good. Do they have a chat function in there, too?
Ana: I'm not familiar with...I don't know, and if they do, I haven't used it.
Matthew: Okay, cool. Well, Ana, tells us one more time how listeners can reach out to you and find out more about your business.
Ana: I can be reached on my website its www.enlucem.com. I will spell it out, its E-N-L-U-C-E-M.com. There's a contact form page, so I will be more than happy to interact and answer any questions.
Matthew: Well, Ana, thanks so much for coming on CannInsider today and educating us about new cannabis consumers' preferences. That was very enlightening.
Ana: Thank you for having me.
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Daniel Yazbeck is founder and CEO of MyDx Inc (MYDX). Today, Daniel shares how his company has grown from one product, a cannabis analyzer to a new product and platform. The new product the EcoSmartPen and MyDx360 allows start-up cannabis brands launch and track their customer’s preferences so they can achieve true product/market fit.
You can hear Daniels 2015 interview here:
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