Table of Contents
A burgeoning wave of cannabis incubator and apprenticeship initiatives is poised to furnish nascent cannabis brands and apprentices with an array of resources and practical experience, aiming to foster greater equity within the industry and establish meaningful opportunities for individuals adversely affected by drug policy enforcement efforts. These programs are strategically designed to empower small-scale cannabis enterprises and individuals by providing them with the tools and knowledge necessary to thrive in a competitive market.
In exchange for these invaluable resources, program operators anticipate deriving significant advantages, including the establishment of robust connections within local communities and access to labor at a reduced cost. Moreover, these initiatives are expected to imbue employees with a sense of purpose, driving engagement and productivity through work that is aligned with broader social and economic missions.
The emphasis on partnerships, resource sharing, and community building emerged as predominant themes during the MJBizCon 2023 held in Las Vegas, reflecting a collective industry shift towards more collaborative and inclusive approaches to business. This pivot comes at a critical juncture for the cannabis industry, as operators grapple with the challenges posed by a contraction in available capital, compelling them to achieve more with fewer resources at their disposal.
Jesse Channon, president of the New York-based multistate operator The Cannabist Co. (previously known as Columbia Care), articulated the pressing need for an ecosystem that supports the growth and development of emerging cannabis brands during an interview with MJBizDaily. Although specific details remain under development, Channon revealed The Cannabist’s intentions to establish incubator-like initiatives tailored for small cannabis brands, drawing inspiration from successful models prevalent in the technology sector.
Channon’s vision entails leveraging these programs to enhance operational efficiency and maximize the utilization of existing assets, thereby driving additional production and scaling operations. Central to this strategy is the collaboration with distinguished brands that resonate with consumers, thereby accelerating market penetration and scaling efforts.
This innovative approach underscores a broader industry trend toward leveraging incubator programs as a means to nurture start-up ventures and facilitate their entry into the market. By doing so, the cannabis industry not only works towards rectifying the socioeconomic disparities engendered by historical drug policies but also creates a more diverse, equitable, and dynamic marketplace poised for sustainable growth.
Enhancing Fairness
The advent of New Jersey’s adult-use cannabis market in April 2022 was characterized by the predominance of large Multi-State Operators (MSOs), a development that initially appeared to marginalize smaller, local entrepreneurs. This situation was particularly galling for Oscar Carrillo, who had previously spent four years incarcerated in the state for drug-related offenses. The irony of his imprisonment, juxtaposed with the burgeoning legal cannabis market now being dominated by large corporations, was not lost on him. In an interview with MJBizDaily, Carrillo expressed his disbelief and frustration, encapsulating the sentiment with, “It was like, wait a minute, now. I went to prison for this.”
The narrative began to shift for Carrillo when he was awarded a social equity license later that same year, a move that served as a form of redemption for his past ordeals. However, this victory marked the beginning of a new set of challenges. Carrillo’s venture, Magic Garden Botanicals, aimed to be a vertically integrated operation, funded through the proceeds of his successful telecommunications business. Yet, the quest to secure a viable location for his enterprise proved to be a formidable hurdle.
The search for suitable real estate led Carrillo to a potentially promising opportunity in Penns Grove, New Jersey, although this prospect ultimately fell through. It was during this period of uncertainty that Carrillo encountered Alan Trzuskoski, the visionary founder of Cannabiz Incubator, who was in the process of seeking tenants for a novel facility in Bridgeton, New Jersey. This facility was intended to house a diverse array of participants from the cannabis supply chain.
Trzuskoski’s approach to tenancy, particularly his commitment to charging fair market rates without imposing a “cannabis tax,” was a rare and highly valued proposition for Carrillo. This equitable stance on leasing was a breath of fresh air in an industry where inflated prices due to the cannabis association are commonplace.
With ambitions extending beyond merely acting as a landlord, Trzuskoski envisions Cannabiz Incubator transitioning into an accelerator, a concept familiar to him from his previous experiences in the technology sector within California’s Silicon Valley. This model is designed to support companies that lack the substantial resources typically necessary for infrastructure development, enabling them to swiftly become operational.
Aware of the significant obstacle that real estate represents for smaller entities, Trzuskoski proactively secured a property in Bridgeton, located in a designated impact zone. He successfully pitched his innovative incubator concept to the local municipality, securing authorization to accommodate up to 15 businesses within the Cannabiz Incubator facility. With six tenants already on board, Trzuskoski is laying the groundwork for what he hopes will evolve into a vibrant ecosystem of smaller, resource-constrained companies poised to stand their ground against the industry’s giants.
Trzuskoski’s vision is grounded in the belief that by pooling their capabilities and resources, these smaller entities can collectively mount a credible challenge to the dominance of large corporations. This approach not only democratizes the burgeoning cannabis industry but also fosters a spirit of collaboration and innovation among the diverse participants within this rapidly evolving market.
Regional Charm and Affordable Workforce
Individuals who have previously engaged in the legacy market, along with emerging entrepreneurs, possess an intrinsic ability to forge profound connections within their local communities, enabling them to customize their product and service offerings to meet regional preferences and demands effectively.
For instance, Carrillo’s innovative approach seeks to resonate with New Jersey’s affinity for outlet shopping by introducing a novel concept in the cannabis retail space. His vision involves offering cannabis products at reduced prices, presented in unbranded packaging, within a dispensary environment that emulates the aesthetic and operational model of an outlet store. This strategy not only aligns with local consumer behaviors but also introduces a unique value proposition to the cannabis market in New Jersey.
In a parallel development, Zenbarn Farms, situated in Waterbury Center, Vermont, has significantly expanded its footprint in the state’s cannabis sector through strategic acquisitions, including a medical cannabis dispensary in Bennington, a dual-purpose medical/recreational outlet in Montpelier, and a greenhouse cultivation and manufacturing facility previously owned by the cannabis conglomerate Curaleaf Holdings. Curaleaf’s decision to withdraw from Vermont in December was interpreted by Zenbarn’s co-owners, Noah Fishman and Marlena Tucker-Fishman, as potentially indicative of the company’s disconnection from the local community. Despite this transition, Zenbarn Farms succeeded in retaining all former Curaleaf employees, ensuring continuity and stability for the workforce.
Zenbarn Farms, which operates as both a dispensary and a music venue, has long been committed to promoting wellness and education within its community. Under the new ownership, there are plans to further embrace and expand upon regenerative agricultural practices, such as the utilization of living soil and the integration of wildflowers around the greenhouse’s perimeter, to enhance the sustainability and ecological harmony of their cultivation processes.
Furthermore, with the assistance of the Pennywise Foundation, a nonprofit organization based in Richmond, Vermont, Zenbarn Farms intends to develop its incubator program. This initiative is designed to provide comprehensive, hands-on experience across the cannabis supply chain, offering participants exposure to various aspects of the business, including retail, cultivation, marketing, and bookkeeping. Emphasizing the importance of financial literacy, Tucker-Fishman highlights the program’s aim to equip participants with a broad range of skills and knowledge essential for success in the cannabis industry.
The co-owners of Zenbarn Farms also recognize the reciprocal nature of the learning process, acknowledging their ongoing development as business operators. By focusing on workforce development, they aim to address the significant labor demands within the cannabis sector, emphasizing the irreplaceable value of the human touch in certain aspects of production, such as the precision of hand-trimmed cannabis buds.
By targeting individuals facing employment barriers, including those with disabilities or those reentering society post-incarceration, and leveraging existing state-supported programs, Zenbarn Farms aspires to foster a more inclusive and supportive work environment. This approach not only aims to reduce production costs but also contributes to a more equitable and compassionate cannabis industry, underscoring the potential for mutual benefit through investment in workforce development and community integration.
Purpose-Driven Enterprise
The esteemed California cannabis brand Cookies has embarked on a commendable initiative through the establishment of Cookies University, located in the verdant expanses of Humboldt County. Each summer, this institution welcomes a select group of five students per cohort, offering them an unparalleled educational experience deeply rooted in the cannabis industry. The criteria for admission into this exclusive program are stringent, with a significant emphasis placed on meeting social equity requirements. Applicants undergo a meticulous screening process, involving interviews and comprehensive questionnaires, designed to ascertain their compatibility with the program’s intimate and collaborative learning environment.
The educational journey at Cookies University is both immersive and holistic. Students are provided with accommodations in quaint tiny homes situated on the campus grounds, fostering a sense of community and belonging. Over two months, they are immersed in an intensive curriculum that covers the entire spectrum of the cannabis supply chain. This curriculum is delivered by seasoned professionals, including industry luminaries like Lindsey Renner, the proprietor of Native Humboldt Farms, ensuring that students receive insights and knowledge from those who have navigated the complexities of the cannabis sector firsthand.
Amanda Friedman, who spearheads social impact initiatives at Cookies, shared insights with MJBizDaily into the underlying philosophy of the program. According to Friedman, the primary objective of Cookies University is not to merely produce candidates for licensure within the cannabis industry. Rather, the program seeks to empower individuals who are hesitant to bear the entrepreneurial risks associated with business ownership. It aims to cultivate a skilled workforce proficient in various facets of the industry, such as cultivation, manufacturing, and retail, thereby opening avenues for meaningful employment within the cannabis ecosystem.
Post-graduation trajectories for students of Cookies University are diverse. While certain graduates find employment opportunities with Cookies, utilizing the knowledge and skills acquired during their time at the university, others explore positions within alternative cannabis enterprises. Some graduates opt to return to the legacy markets, contributing their expertise to regions where cannabis remains unregulated, or they may engage in advocacy efforts aimed at fostering legislative reform in states where cannabis legality is still in flux.
Friedman emphasizes that the impetus behind Cookies University transcends conventional business motivations. Although one might argue that there is an inherent business advantage in aligning with the core values and ethos that Cookies represent, the initiative is driven by a deeper commitment to community and social responsibility. The leadership team at Cookies, including founder and CEO Berner, views the establishment of Cookies University as an essential expression of the brand’s dedication to fostering education, opportunity, and equity within the cannabis industry. This initiative exemplifies their faith in the transformative influence of education and their dedication to effecting a beneficial change within the industry and the communities it serves. As Friedman succinctly puts it, the decision to operate Cookies University is a reflection of a firm conviction in the importance of giving back and contributing to the greater good, underscoring the brand’s unwavering commitment to its mission-driven ethos.
