This article originally appeared in the September/October print edition of Cannabis Business Times. To subscribe, click here.
New growers are joining the industry, hoping to capitalize on rapid growth and broader public acceptance of marijuana use. Newcomers and many veterans have a steep learning curve when it comes to understanding how important packaging and branding is to their product, and how compliance plays a role in packaging choices and quantities ordered. These factors are a significant part of the total cost of goods regardless of the type of product being sold.
What makes a great cannabis package? Here’s how Nick Kovacevich, CEO of Kush Bottles, a distributor of marijuana packaging and supplies, defines packaging:
-It keeps the product safe, convenient and compliant with regulations
-It is labeled to educate consumers about the product and its possible effects
-It draws consumers with a compelling brand message
-It fits into the company’s economic model, whether operating in a single state or attempting to build a national or international brand.
In trying to meet those criteria, growers are most often challenged by the cost of packaging and processing, according to Garett Fortune, CEO of FunkSac, a Colorado-based packaging company. “You want the compliant side of your house to be in order, and you want to market your product in a way that dispensaries and retailers can sell it,” Fortune says. “But there is cost associated with that.”
Packaging that meets American standards for safety and food-grade materials can be costly. “In a market like ours, people gravitate toward the value of American-made, but money is also a national value, and it’s a huge consideration for us,” says Christian MacMillan, vape specialist at Rogue Raven Farms in Shelton, Washington.
To read the full article in our September/October edition, click here.