Marijuana Business Magazine April 2019

Marijuana Business Magazine | April 2019 104 Come Back Daily sells more than 100 products from about 22 companies, including Full Spectrum Hemp Elixir from California-based Ojai Energetics, cannabis-infused lip balm from New York-based Herb Essentials and chocolate bars from Oregon-based Grön CBD. “I like to be able to tell the cus- tomer, ‘Look there’s a price difference between all of these products, but there’s a difference,’” he said. “I can explain the details of each one.” Partnering with the Community Come Back Daily isn’t relying on CBD products to be the sole factor bringing customers through its doors. The company is partnering with other entrepreneurs to host events with cannabinoid or cannabis themes. A five-course brunch, advertised as an “upscale CBD experience,” was scheduled one Sunday in January with Trill Cooker, a pop-up restaurant concept out of the Bronx. The following weekend, Come Back Daily booked Sanna CBD Yoga for a “Restorative CBD Yoga” class, where attendees used Grön CBD salve for sore muscles or tight joints. Setting aside space for hanging out or gathering is important to the Come Back Daily team because the found- ers want room to support and grow the community that understands the positive benefits of cannabis. “My biggest focus right now is community collaboration,” Phan said. “Traffic is good, no matter what. People coming in here is a chance for them to buy something. And having this space is beneficial for other startups like myself that need space to either host things or a workspace.” Right now, Come Back Daily can- not sell or allow its occupants to use marijuana in its shop because rec- reational use of marijuana remains illegal in New York. However, New York Gov. Andrew Cuomo has said he’d like to see the legalization of adult-use marijuana this year. The founders of Come Back Daily believe legalization would help their business and possibly lead to customers being able to use and buy THC-infused products within their shop, opening new revenue opportunities. “It’s CBD for legality purposes. But at the end of the day, it’s about can- nabis education,” Phan said. “It really goes back to having a cannabis-safe space for all these things.” Flying Under the Radar of New Regulations The New York Department of Agricul- ture andMarkets issued new rules in December banning manufacturers in the state frommaking CBD food or va- ping products such as cartridges. State manufacturers could still make CBD dietary supplements if they signed a waiver acknowledging the “inherent risk” involved. So far, the new rules have created more uncertainty for manufacturers than for CBD retailers, said Steven Phan, co-founder of Come Back Daily. Come Back Daily opened in Manhattan about a month before the new ban was put in place. The shop sells both drinks and edibles infused with cannabidiol, including a sparkling CBD drink fromNew York-based Bimble. It’s largely been business as usual for the store since the regulations were announced. Phan said he’s been in touch with his lawyers to ensure Come Back Daily is compliant with the new rules from state regulators. The company is await- ing further guidance from the U.S. Food and Drug Administration (FDA) on CBD food sales. In December, the agency reiterated that CBD is still not legal to add to food, but it promised a further review of its guidelines. New York City officials, meanwhile, said they’re not going to allow the sale of CBD-infused edibles until the prod- ucts are cleared by the FDA. “The (federal) government shutdown did not help things, being that FDA is a federal organization,” Phan said in early February. “If (food sales) do become an issue though, I have no issues becoming compliant.” Health inspectors are providing guidance to restaurants about the prohibition of the addition of CBD to food in restaurants, said Jill Montag, spokeswoman for the New York State Department of Health. At least one restaurant, Fat Cat Kitchen, reported having CBD product seized by department officials. Altogether, drinks and edibles account for 10% of Come Back Daily’s monthly revenue, according to an estimate by Phan. — Adrian D. Garcia Business Strategies | Retail Come Back Daily offers more than 100 products at its retail store in Manhattan, including tinctures from Tonic CBD and Grön CBD. Courtesy Photo