Marijuana Business Magazine - March 2018

consumers to find a strain that offers the taste and effects that meet their needs. Care By Design, its CBD-rich line, is available in five ratios of CBD to THC and in eight applications – vape cartridges, softgel capsules, concentrated oils, sublingual sprays and droppers, chocolates, dissolvable strips and pain creams.That allows MMJ patients to decide the level of treat- ment and mode of consumption that works best for them, Hunter said. Bloom Farms sells limited seasonal batches of Single Origin Reserve strains of cannabis that come from farms in different regions in California. One of its most popular small-batch strains is its CBD-rich, low-THC ACDC strain, which is grown in Calaveras County. “Much like wine, certain varieties or strains of cannabis thrive naturally in some areas and climates, and growers in those regions master their art,” said Bloom Farms’ Ray. “We choose the best strains grown in specific regions.” Aloha Green has an extensive menu of CBD products.The dispensary carries more than 100 CBD products from 15 brand names and oil infusers so consumers can make their own edibles, which can’t be sold in dispensaries under Hawaii’s current regulations. When consumers learn more about CBD and “Once all taxes are levied throughout the supply chain, what starts as a 5% tax ends up a 25%-35% tax,” he said. Adelanto, California, for example, was one of the first municipalities to provide licenses to marijuana busi- nesses under the state’s 2015 Medical Cannabis Regu- lation and Safety Act – but it liberally approved permits and hiked taxes to fix the city’s budget shortfalls. Also, taxpayers in Salinas approved a tax that will eventually rise to $25 per square foot for cultivation space. “Overtaxation is going to have businesses move to neighboring communities with more reasonable tax laws, and overtaxation could lead to a stronger illicit market,” Drayton said. He added: “Lawmakers need to create policy that draws consumers away from the illicit market and into the regulated market – that brings the conversation back to reasonable taxation.” Municipal taxes are a danger to the regulated can- nabis market and could drive consumers back to the black market, said Michael Ray, founder and CEO of California-based Bloom Farms. When tax rates are 10%- plus for each step of the supply chain, consumers suffer the consequences, he said. “Taxes should be reasonable,” Ray said. “People rely on cannabis for a wide variety of medical reasons. They don’t have the money to pay an unreasonable tax on medicine. They’ve built today’s numbers into their budg- ets. And if we see a 40% price increase due to taxes, that’s going to hurt consumers.” For business owners, the conversation of how to com- pete with the black market often shifts to how the state is going to support the regulated sector while quashing the illicit market. “The even larger question is how the state incentivizes citizens to use the regulated market rather than the black market,” Gallagher said. “As licensed businesses, we can only do so much. The state has to ask itself how it can continue to shift the market and prevent black-market sales.” – Joseph Peña how effective it can be, they consider legal THC products, too, Cho said. “In the black market, you get what you’re given – you can’t question it and you can’t expect consistency,” she added. “When we tell you we’re selling our high-CBD Pennywise strain, that’s the strain you know you’re getting, and it’s backed with testing that proves its cannabinoid and terpene profiles, and you know it doesn’t have harmful ele- ments in it.” In terms of unique product offerings, Dockside’s annual themed ADVENTure Calendars have been popular with customers, Holder said.The calendars are curated collections of products from different producers that Dockside partners with. Holder said the products are “thoughtfully assembled” so that each day builds on days that came before. For example, an early day in Dock- side’s “Road Trip” calendar includes a battery for cartridges with an Michael Ray is founder and CEO of California’s Bloom Farms. Photo courtesy of Evan Thompson March 2018 • Marijuana Business Magazine • 53