The marijuana market nationally has been projected to exceed organic food sales within the next decade. As the market becomes more sophisticated, growers and dispensaries will need to emphasize efficiency and capitalize on economies of scale. As fluid as the industry has been, it stands to undergo seismic changes on a global scale over the next decade. One of those changes will center on how the industry uses lab-testing data as an educational tool to broaden its consumer base and maintain profit margins.
Consumers of every product, in every industry, demand quality and safety assurances from their products. This is especially true for cannabis in light of the medicinal properties it exhibits. In Colorado, one can sense a general drift toward testing more in line with federal agriculture and food processing regulations. Will the industry see this as a burden or an opportunity?
In Colorado, recreational potency (cannabinoid profiling) is the only mandated test. This is a marked difference from the regulatory framework in other states. In Connecticut, every 10 pounds of flower, leaf and stem, needs to be tested to meet the AHP guidelines. In Nevada, every 5 lbs. of flower and 15 lbs. of leaf and stem are tested.
Lab-certified testing and transparency in presenting that data, can have one of the highest returns on investment for growers and retailers. The burgeoning wholesale market, where testing is not currently mandated in Colorado, is one clear example. “We’ve already seen sellers of lab-certified cannabis commanding a premium price over non-tested products”, said Steve Janjic, CEO of Amercanex, a leading cannabis wholesale exchange. “There’s little doubt that buyers are looking to protect their investment and ensure the quality of their wholesale purchases. CannLabs’ certified seal helps them to quickly identify cannabis on the exchange that has passed the state’s mandated requirements.”
Consumer loyalty is also driven by trust. Carfax is a perfect example of the loyalty benefits to embracing transparency. Today we take it for granted that every dealer will have a full history of any car on the lot. In the beginning however, a seller stood out as trustworthy by offering to include a Carfax report with every used car sale. A similar dynamic is taking shape within the cannabis industry.
The Internet is a critical research tool for buyers today. Businesses need to provide useful, trusted content at the exact moment a buyer needs it for the relationship to work. This is especially critical for medical patients. Getting to a proper dosage profile requires accurate, consistent data that can only come from a lab.
Partnerships between growers and labs are creating a better experience for consumers and leading product innovation throughout the world. Savvy growers and dispensaries are staying ahead of the curve with smart usage of their testing data. Is your local favorite one of them?
via The Cannabist