Every now and then, a game-changing product comes along that tempts us to throw all other gadgets and glass out the window. The Stüdenglass gravity bong is one such product. Chances are you know of the bong through the viral video showing contemporary stoner icon Seth Rogen gripped by a coughing fit after one hit — cementing the bong’s place in counterculture legend.
The original product was conceived by ex-Apple alumni Tracey Huston, who filed the patent back in 2016. Recently, Stüdenglass was acquired by one of the most innovative — and coolest — cannabis companies, Grenco Science. Shortly after, Michael Trzecieski, founder of Vapium and tech-designer extraordinaire, took up the challenge of refining the state-of-the-art mounted gravity bong for top-shelf aficionados.
Cannabis Aficionado caught up with Trzecieski to talk about the synergies between weed and tech, how the Stüdenglass has improved, and, of course, that Seth Rogen video.
Cannabis Aficionado: Tell us about your journey through entrepreneurship and how you found your way to cannabis.
Michael Trzecieski: Growing up in Canada has afforded me many opportunities but there are two that have been the most formative — the first was becoming a Roboticist and the second was to witness and experience a country who showed true compassion toward cannabis as medicine. I was allowed to see the power of the plant without shame or indignity.
My journey as a Roboticist started in fibre optics, engineering micro-robotic toys. At the same time, Canada was making enormous strides towards full legalization. The timing, coupled with my desire to support the medical cannabis consumer, allowed me to shift my focus and passion — making a different kind of robot to support the people who needed it most. With this goal in mind, I took my years of experience in safety and controls (from toys being so heavily regulated) and applied this to making our first haptic vaporizer back in 2012.
Can you share your thoughts around the synergy between tech and cannabis?
Tech allows users to titrate their cannabis experience so they can choose to consume at various levels. Traditional methods of consumption are not always effective for all patients, and innovation is paramount for harm reduction and efficiencies. It is essential to have clean air intake, temperature stabilization. Temperature stabilization allows the vaporizing device to toast the leaf material instead of combusint it using a closed-loop temperature stabilization feedback system. At lower temperatures consumers can experience improved terpene profiles while at higher temperatures they may enjoy stronger effects.
What were the things you set out to achieve when designing the Stündenglass gravity bong?
The new Stündenglass glass gravity bong was designed for aesthetics, precision machining and cleaner vapor. We also wanted to provide a more comfortable user experience. Through the kinetic motion activation, vapours are sucked into an upper chamber and as water rushes from the upper chamber to lower chamber, the vapor percolates through the flowing water stream and offers vapour filtration as well as vapor cooling.
Tell us about the materials and why you chose them.
The materials chosen for the Stündenglass were predominantly glass and metal.
Glass offers a supreme taste, it is easy to clean, and it does not attract vapor and oil particles.
Stainless steel was also chosen as one of the core elements in the device because of its cleanliness as well as its ability to be precision-machined and for its high wearability in the valve portion of the device.
Anodized aluminium was also utilized for its durability and longevity.
What’s your favorite thing about the Stündenglass gravity bong?
It’s magical. The kinetic motion activation allows the device to both suck vapour as well as expel vapor at the same time, and provides percolation and water vapor filtration. There are also many magnetic components because magnets are also kind of magical.
Stündenglass was recently acquired by Grenco Science. Can you tell us details of how this exciting acquisition came about?
We first got to know Tracey Huston, and it was immediately apparent that there was a synergy between the brands, with a shared goal of innovation and improving upon the user experience. We recognized the ingenuity behind Stündenglass and understood how we could help by bringing this product into Grenco Science’s global expansion plan. From there it was a natural next step to bring Stündenglass into the Grenco Science umbrella.
How has the device evolved since its initial prototype?
The initial prototype was a very functional and utilitarian type unit. The design was since improved for its aesthetics, robustness, as well as the modularity. Furthermore, the percolation was an added feature and an improvement over the first model.
Subsequent models have allowed for modularity. The modules may be removed and taken apart, cleaned and accessorized, as well as replaced with other future potential attachments and improvements. A wall mount was also provided.
The viral video of Seth Rogen with his Stündenglass put the gravity bong on the wish-list of every aficionado, cementing its place in cannabis culture legend. How did it come about?
It was very organic. An early prototype was given to someone in Seth Rogen’s family, who then gave it to him. It was his own idea to create the video and share the experience online.
What tech trends do you predict for the cannabis industry over the next five years?
The bigger tech trends in the cannabis industry include dosing and data. Many customers want to be able to monitor their dosages as well as have data associated with their consumption, like what a Fitbit tracker does for fitness. This will allow producers to develop more meaningful formulations for their consumers as the data and dosing science evolves.
How do your products help shift the stigma about cannabis?
Our products help the ship the stigma on cannabis by bringing technology to the industry. This tech comes in the form of improved heating technologies, industrial design, safer material choices and temperature stabilized heating control loops.
In your opinion, what’s the most important thing that needs to be addressed when talking about cannabis?
That cannabis is a medicine. We are only beginning to uncover its real potential as legalization around the world grows.
How do you think the cannabis industry as a whole can be better?
Accountability. One of the major issues in the industry at the moment is a lack of accountability and a lack of safety and testing standards. There are still some operators that are looking to make a quick buck from unassuming consumers, and last year’s vape crisis was a direct result of that.
The cannabis industry is just in its beginning stages and needs to evolve. With this evolution there will be added accountability and more rules and regulations to ensure it’s safer for all.
What do you wish you knew when you started out in cannabis entrepreneurship?
I wish I knew that it was not going to be easy, and this holds true for any entrepreneurship. Finding the right people and putting together the right team is really important. It took us years to finally find the right partners and the right people to work with. This allowed us to evolve from a smaller operation to a larger entity.
Finally, what are three things it takes to be a cannabis entrepreneur?
I would say the first thing is creativity. You have to be full of ideas; you have to understand how to change the game; and how to make a difference, not just fit in. As the industry quickly evolves with ever changing rules and regulations, you need to keep your head in the game. It’s an industry for sharp minded entrepreneurs who know they can make a difference.
You’ve got to be tenacious, never take no for an answer, and keep on pushing for what you want to achieve going forward. No one’s going to do it for you. You need to drive your creativity home to others and have them believe in you.
You need to show up and be present in order to know what the industry is about. You need to be present at trade shows, events and gatherings where you can meet the right people in order to develop the right relationships.
Follow Michael Trzecieski on Linkedin.
Jason Washington: Creating a Global Cannabis Kulture
Jason Washington is a successful entrepreneur both in and out of the cannabis industry. He is also the second person in U.S. history to face a jury trial proceeding on a state-licensed medical marijuana case. His story is a powerful reminder that the most dangerous thing about the cannabis plant is the grey area that surrounds its legal status.
In 2011, Washington’s Big Sky Health dispensary was the largest legal operation in Montana. And despite medical marijuana being legal in the state since 2004, the Feds raided him. At trial, he was found guilty of conspiracy to manufacture and distribute cannabis and possession with intent to distribute. His judge deviated from the mandatory minimum sentence guidelines of 10 years, instead sentencing the former University of Montana Grizzly quarterback to two years in federal prison. In October 2014, his original sentence was reduced from 24 to 21 months, with the judge ordering Washington’s immediate release.
Washington returned to his home state of California where his natural aptitude for business saw him start several successful companies, including Ignite with Matthew Morgan and Dan Bilzerian.
Fueled by his desire to help those who had been wrongly incarcerated like himself, Washington went on to found Kulture, a full-service cannabis agency with a twist — you have to have a proven legacy with the plant to make the cut. The company has cultivation, extraction and manufacturing operations in five different states: Arizona, California, Oklahoma, Michigan and Missouri.
Cannabis Aficionado spoke to Washington about his loyalty to legacy operators, his advice to newcomers to the industry, and his plans for a global cannabis network.
CA: What sets Kulture apart from other cannabis agencies?
Jason Washington: One of the mandatory stipulations for being accepted or invited into the Kulture family is that you have to be a legacy operator. And a legacy operator suggests basically that you have a proven track record of 10 plus years in the cannabis space. You’re someone that was in this when it wasn’t just the latest “cool” business venture for Ivy League grads.
My directors of indoor cultivation are Bill and Jeff Levers aka the Beard Brothers, who are legacy operators. We’ve been running together for over two years — longer than Kulture has been established. Our philosophies and ideologies align. In fact, their commitment to helping veterans inspired the backpacks in our new clothing line; these are based on tactical gear as a salute to our veterans.
Why is this so important to you?
The pioneers of this industry have not been able to participate in the new legal market. A lot of people have made a lot of money off the backs of those who are now deemed criminals. Guys like me — those with weed felonies or federal felonies — aren’t looking for handouts. To be honest, I don’t know how to solve the problem. I just know that the problem exists.
Tell me more about your new clothing line and how it’s helping to change the stigma around cannabis?
Some very successful brands started with clothing in emerging markets just for brand awareness. For me, it’s about establishing normalcy like any other brand. In California, Prop 64 means we have been able to normalize the use of cannabis as a recreational drug. And as a very beneficial medical alternative to pharmaceuticals and other forms of pain management. Cannabis is becoming more and more acceptable, and it’s one more facet of people’s lives.
I’ve been in the cannabis game for a long time, so for me, the clothing line is new and exciting. Normalizing cannabis is the main reason I’ve launched it. The style is influenced by what my cultivators wear when they’re in the facilities. It ties into the Kulture lifestyle and appeals to a lot of different demographics.
What are your expansion plans for Kulture?
Here’s the thing, cannabis doesn’t only help people in America. There’s a whole world of people that need this plant and our help and expertise. We have to focus on more than just America and more than our little micro-environments. I see Kulture as a 300-person global agency with offices in America, South America and somewhere in Europe or Africa. I see it as a combination that brings together the best cannabis talent in the world. Where the brightest minds come together under one roof to provide the best cannabis for everybody to enjoy.
What’s the most important thing that needs to be addressed when people are talking about cannabis legalization?
The conversation around inclusion needs to be further expanded upon. There’s still a lot of people that are in jail for this plant.
Another problem is people riding social equity but did not serve a day in jail or have never been prosecuted or raided. People get pushed to the front because they say, “I grew up in this neighborhood or I grew up in that neighborhood.” But those who were affected or who served time are not able to obtain a license. For example, I live in California, but my charge is federal, is in the state of Montana. So I can’t get an equity license in California because my charges did not originate in California. I’d have to go back to the state of Montana to participate or to be a license holder.
Look, I understand why states have said that in order for you to be an equity applicant the crime or the charge has to have been committed in that state or jurisdiction. I totally get that. But it’s keeping guys that went to federal prison for cannabis-related crimes shut out. They’re kept from participating from a licensing standpoint because their charge originated in a different jurisdiction than where they reside. Most federal indictments are brought in different jurisdictions than your home state.
How do you think the cannabis industry can be better?
The biggest thing is if all these new executives and people coming into the space entered with more knowledge. They can’t get the experience, I get it. But at least the knowledge and understanding of what so many people have sacrificed for so long and went through. Understand the culture. Don’t completely strip cannabis of everything it’s been for so long and turn it into spreadsheets and mass production. Because that’s not what it is.
I get bringing a more professional business environment to the space; more legitimacy, more scientific data and more research-based products to market. But at the same time, don’t forget those who have given you this opportunity. Don’t forget how you got here and the sacrifice that was made to allow you to participate in this industry.
What do you wish you knew when you first started out in cannabis?
The power of the federal government and what substitute asset forfeiture meant. Haha.
What are the three qualities you need to be a successful cannabis entrepreneur?
I think perseverance is one of the biggest. I’ve been in it for 12 years and I’ve seen people come and go who don’t have the character and the stamina to fight through all that you have to fight through — whether it’s local municipalities, competition, or failed crops. You’ve got to be an innovator. You’ve got to be someone who is a survivor and a fighter.
Do you have a career highlight?
There’s one thing that really sticks out to me to this day and it was when we opened the first Montana dispensary. I’ll be honest, I wasn’t 100% sold on the medical benefits of cannabis at first until one particular firsthand account from a mother. I was her son’s caregiver; her son was 13 or 14 years old and was epileptic. She came in one day and broke down crying because she didn’t have to go to the streets for cannabis anymore. She said, “You have no idea how much I admire and respect your courage and how much you helped my son. You guys being here and taking care of us has been like God answering my prayers.” It was very heavy and very emotional.
Hearing those kinds of stories and testimonials gave me the strength to stand up for what I was doing and believed in at the time. It still does to this day.
Believe it or not, I don’t look at federal prison as the worst thing that ever happened to me. It gave me the opportunity to sit back, reflect and learn from the choices and decisions that I’ve made. Maybe mistakes, maybe not mistakes.
Any advice for anyone that’s thinking of getting into cannabis?
If you’re thinking about getting into it now, you need to position yourself and prepare yourself for the long haul. You’re only warming up after five years in the space. This is a daily education. Cannabis is unique in a sense, it’s not like any other businesses. You can apply past experiences from other businesses ventures. But the hands-on education that you get on a day to day basis is like no other.
Brett Stevens: Lighting the Way for Indoor Cultivators
Brett Stevens of Fohse is on a mission to make his company’s name synonymous with hi-tech LED grow lights for the cannabis industry.
At Fohse, meeting the challenges faced by indoor cannabis cultivators with superior lighting solutions is the prime directive. It’s a niche that co-founder and CEO Brett Stevens says is rife with opportunity for those with the talent to innovate. A serial entrepreneur with several successful exits in new and emerging markets under his belt, Stevens is now firmly focused on the cannabis industry.
“I originally got into the farming side of it, and I could definitely see where at that time, five or six years ago, there were so many holes that needed to be filled. It was kind of like, pick a side and go with it,” Stevens told Cannabis Aficionado.
The sector he believed had the most potential to impact the cannabis industry was engineering, and Stevens had kept his ear to the ground for tech opportunities, specifically for cannabis. So, when an engineer friend shared his design for advanced LED lighting, he saw a chance to bring value to a nascent industry.
For Las Vegas-based Fohse, the vision is to continually expand the tech in the cannabis industry, and Stevens is proud and unapologetic about the company’s focus.
“We’ve pigeonholed ourselves into the cannabis industry. We didn’t create the light for any other plant,” he explained. “We are sold on the plant. We’re sold on the medical purposes of the plant, and we really want to be there as the plant is more readily explored.”
In order to be true innovators, Fohse doesn’t settle for the services of outside engineers. Instead, the company has its own in-house engineering team creating cannabis lighting solutions from the ground up. Stevens touched on SolidWorks, a 3D computer-aided design (CAD) program, that Fohse’s engineering team uses for their technical drawings.
“We do all our material science, and we do all of our material engineering to make sure that the materials we’re using to dissipate heat or to project that photon where it needs to go [are sound]. We’re doing all that in-house.” he explained.
A Company Driven by the Question, “What If?”
Stevens noted that he’s not one to micromanage his executive team though. Instead, he said that his leadership style is to assemble a solid corps of professionals and let them go to work. And as inspiration, he encourages his engineers to continuously ask, “What if?”
“What if we could do ten pounds a light?” he wondered aloud. “What if we could do four micromoles per joule? How would we do that?”
“We’re consistently thinking, ‘How can we be more efficient, and more powerful?’ And I think that’s what drives me,” he added.
According to Stevens, the combined talent and drive at Fohse are producing the most advanced LED lights available to cannabis cultivators. And that’s not just an assertion. It’s a claim that is backed by the company’s research.
“We are literally the most powerful and the most efficient light in the world right now,” Stevens said, adding that Fohse has done grow ops where they have bought and tested every single competitor’s light.
“There’s no question,” Stevens states confidently. “We will outgrow anything on the market.”
Creating an Industry Standard for Indoor Cannabis Cultivators
When his company entered the business, Stevens says the light manufacturing industry was racing to the bottom, with everyone trying to produce the cheapest lamps that would still grow cannabis. But Fohse took a different approach altogether.
“We looked at it more like, ‘What if we put massive power supplies and 5,000 diodes in a light?’ and ‘What if we could replicate indoor sunlight?’” he explained, adding that they focused closely on grams per square foot.
“Because in the end, that’s what it comes down to, right?” he asked. “If you have a finite amount of space, the more you can grow in that area, the more productive and the more successful you’ll be.”
Constantly striving to increase productivity and efficiency for indoor cannabis cultivators is what the team at Fohse is all about. And that drive, Stevens says, will become increasingly evident when the company’s products are known as the industry standard.
“I think that we’re hungry, that we’re always advancing. We will not stop until we will reach the absolute pinnacle,” he pledged.
Bill Shevlin: Cultivating Carbon-Neutral Cannabis at 3 Bros Grow
It’s no secret that indoor cannabis cultivation techniques leave a substantial carbon footprint. The immense amounts of water and energy required will make the model unsustainable if it continues unchallenged. Fortunately, by implementing cutting-edge technology and the best production practices, it is possible to grow top-shelf cannabis in a way that’s sustainable for both businesses and the environment. That’s the vision of 3 Bros Grow, a vertically integrated cannabis company in Santa Cruz, California, dedicated to growing the very best cannabis using environmentally friendly processes.
Cannabis Aficionado spoke to CEO Bill Shevlin about the 3 Bros Grow mission, their revolutionary cultivation practices and the importance of giving back to the community.
Cannabis Aficionado: Tell us about your journey through entrepreneurship and how you found your way to cannabis.
Bill Shevlin: I grew up in the Santa Cruz area, and if you grew up in this part of the country, cannabis was always around. When I was in high school, I took an outdoor ed program and learned how to read topography maps. My friends and I picked some locations that were back in the woods, in the canyons, planted there and grew. After school, I ended up getting into real estate development and management. For the last 15 years, I have advised technology and vertical ag companies while working in large-scale commercial construction and renewable energy.
In 2017, I started looking at energy usage in the cannabis and hemp space, as I knew cannabis was super energy-intensive. I worked with a few different companies in the industry — some were small, some were large — and I saw all sorts of issues from the infrastructure requirements but also on the corporate side. Due to my background in vertical ag, I knew you could cultivate and deliver food crops into local markets sustainably. I knew there was value in being able to do the same thing in cannabis.
I met the founders of 3 Bros Grow — Tyler Smith, ‘CEBrO’; Mark Taylor, COO, and Russell Smith, CMO — at the end of 2019, and formally joined them as CEO in January of 2020. They have a really cool mission to be a sustainable company from day one and had some interesting things they were doing.
Tell me more about the 3 Bros Grow mission.
We believe it is our responsibility to offer only the highest quality cannabis products at an approachable price and in a sustainable manner. Cannabis is medicine, but we plan to use it to heal more than just people. From climate-positive business practices to community care initiatives, we strive to assist in the healing of our planet. Unfortunately, the cannabis industry is far from green. There is a lot of waste and a lot of pollution. 3 Bros is committed to leaving this planet more beautiful than when we arrived and vow to put forward our greatest effort in sustainable and community-centred operations. That’s where my background in renewable energy comes into play.
Why is creating a zero-carbon footprint cultivation model so important to 3 Bros Grow?
From day one, 3 Bros Grow has been about sustainability — the founders were pushing the sustainability message in cannabis even before I was around. They grew up in the surf industry and were professional surfers, so they’re very conscious of the environment. When I joined, it was really because we were having conversations around using renewable energy and sustainable energy for indoor cannabis, which is really energy-intensive. Sustainability has always been part of the core culture of 3 Bros Grow. We’re doing some really cutting-edge stuff around sustainability.
What are the sustainable ‘green’ initiatives at your new facility?
We’re creating a climate-positive impact at our revolutionary new vertically integrated facility in Santa Cruz. It allows us to offer truly green practices across cultivation, manufacturing, processing, and distribution.
Our COO, Mark, figured out a way to not use any outside water in his cultivation operations. The 3 Bros proprietary systems and technologies don’t use any outside water for cultivation, which creates a lower cost of operation, and it also has a positive impact on the environment. If you look at what the industry standards are, for water there is, unfortunately, a lot of waste. It’s a problem that needs to be fixed, and we are fixing it.
We’re also implementing a carbon-negative microgrid that generates power onsite, allowing us to lower the cost of operation, and create a climate-positive impact. Again, cannabis is an energy-intensive industry. So even though a lot of people associate it with being “natural” and “clean,” the reality is that there are a lot of fossil fuels that are used to grow most commercially available cannabis.
Thirdly, using our proprietary Direct Air Capture technology allows us to sequester CO2 in our cultivation and manufacturing processes, which we’ll inject back into our grow environment. So, we’re actually pulling CO2 out of the air at a larger scale than we normally would, because we’re not supplementing with standard C02. We’re just supplementing with CO2 that we’ve captured from the air.
The facility is being brought online in phases and will have a cultivation capacity of 10,000 pounds of top-shelf indoor cannabis. The interesting thing is that our environmental impact is positive, costs of operations are lower and our efficiencies are higher. Lowering the cost of operations is critical but doing them in an environmentally friendly way is even more critical. It really is the best of both worlds.
I believe sustainability should be taking place across all aspects of cannabis. In California, the Bureau of Cannabis Control requires certified hauliers to remove any cannabis waste — like stems and miscellaneous biomass — in a locked drum or container. It’s fairly expensive and very wasteful. We want to be able to take our waste and turn it back into something useful, not just bury it in the ground because the BCC considers it a hazard. So, we’re in the processes of obtaining authorization from the local county government to be able to take our waste and send it to our nursery site. This zero-waste program essentially creates a circular economy, not to mention a healthier soil program for our own growing.
We work with a company who has a soils program, the founder used to be with the Rodale Institute. They are creating a compost program and implementing regenerative agriculture practices, which has multiple benefits: the crops produce more; the soils are healthier; the local climate is healthier, and those products are typically consumed in the local market and can fetch a higher price point.
Sustainable cannabis growing is all about reducing the negative impact on the environment. 3 Bros Grow demonstrates that sustainability in vertical agriculture can be achieved, that is profitable, and it is good for the planet and good for people.
How does the packaging that’s required for the sale of regulated products work into your sustainability model?
All 3 Bros Grow products are packaged using the most sustainable and environmentally conscious packaging available, like soy-based inks, recycled ocean-based plastics and bio-based plastic or hemp-based plastics. We’re talking to companies that are emerging that are using hemp fibers in this space.
I hate plastic. The amount of excess plastic and packaging used in the cannabis industry is a nightmare. The world’s starting to realize that plastic is going to kill us, and we’ve got to be able to find alternative packaging materials to be able to do it.
I think that as an industry, we need to insure everyone uses sustainable solutions. Right now, it is a little bit more expensive to use sustainable packaging. But in our opinion, it’s worth it to not pollute the planet and delay that cost into some future generation. Plus, I think we should be supporting our own industry to help it evolve — even if it costs a little bit more in the packaging up front for hemp fiber and plastic to come to market. From my perspective, it’s the right thing to do.
What are the benefits of sustainable growing techniques?
You create a healthier, cleaner and consistent product. You also lower or remove your carbon footprint. And you lower your costs of operation. All three of these are important from a business perspective. You always have to have the lowest cost of business operations possible, so you can have a margin and continue to grow, expand and do what you need to in the marketplace. But from an environmental perspective, you have to do what’s right up front and every day.
Can you tell me about your community programs, like the compassionate program 3 Bros Grow started during the pandemic?
We want to support the community that’s supported us. Any company can make money, but it is important to give to the community that supports us. We take a portion of our proceeds during a month and give that to a local nonprofit.
When COVID-19 came around, we decided to start a compassion program for people who were struggling. We reached out to a lot of the vendors we work with and we had an overwhelming response; they donated products to us, and we donated it to our less-fortunate customers. Not just cannabis products — we donated large amounts of food to the community, too. We did the same thing when the fires came; we reached out to a lot of our vendors and created a compassion program.
We also support minority-owned companies and local brands that are trying to get in the market. We’ll bring their product in, give them some shelf space, get them some attention through our social media platforms and, most importantly, try to give them additional margin on their products. We truly believe that it’s not just about growing our business – it’s about supporting the industry. It’s about making the industry better.
In your opinion, what’s the most important thing that needs to be addressed when talking about cannabis?
Educating people that cannabis is not a harmful thing – it’s really a helpful thing. I have friends who are veterans who treat themselves for PTSD with cannabis. I have friends who are senior citizens that treat themselves with cannabis for pain. I have friends who treat themselves for anxiety. I have friends that have weaned themselves off major opiates and other addictions by using cannabis and other cannabinoid products.
Cannabis is a crop you can grow in a really sustainable manner and deliver it into local markets where it creates local jobs. It helps people. It’s a healthy product. That Reefer Madness type of mentality has really been politically driven in the past and comes from corporations and the government — they want to keep this plant out of the people’s hands, unfortunately.
How do you think the cannabis industry as a whole can be better?
One thing the industry doesn’t do very effectively as a collective group is get together to push legislation that actually supports our industry. As a united industry, we should be reaching out to the political parties, to demand the legislation that we need that will allow us to continue to thrive and scale. There are still too many people who are focused on their own operations and aren’t spending time thinking about the big picture.
Cities, Counties and States want the sales tax revenues, but they don’t want to create the banking and infrastructure support that’s required for the industry to evolve. You can’t bleed tax money from the cannabis industry but also not have the legislation that supports it. It’s counterintuitive and counterproductive.
The cannabis industry pays a lot in tax, and at the same time think about the job creation that it brings to the community. It’s huge. Somewhere between 250-350,000 jobs have been created in the last few years. The only other industry that’s been on par with that has been the renewable energy industry. But unlike other verticals, we’re not supported, and we don’t have a united voice from the political perspective that will push the legislation that should be in place.
The amount of compliance we have to go through on the banking side means spending several thousand dollars a month in banking fees, cash pickup fees, and everything else. We’re fortunate that we actually have a bank account. Just recently, we’ve been able to start taking electronic payments. But in order to do that, we get charged a 3.5 percent transaction fee that we have to pass on to the consumer. In any other industry, you’d have a normal credit card system that would be half a percent, or one percent — maybe 50 cents. But there’s hardly anyone in electronic payments that wants to deal with you. We’re in the middle of expansion, so we’re talking to multiple different finance groups and capital groups. If this were any other industry, we could go out and get a regular credit line, pay a couple of percent and get a credit line of a couple of million dollars, no problem. In this industry, that doesn’t exist.
What’s next for 3 Bros Grow?
We’re continuing to expand. We’re doing some collaborations with some large brands. We just signed an agreement with Sherbinski to cultivate and manufacture some product for them using our environmental approach. We are working with a couple of their genetics and bringing them to the products to the market that shows the climate-positive impact. We’re also working with some other brands to make create new products that come into the market in a sustainable manner.
Finally, what are three things it takes to be a cannabis entrepreneur?
You have to be able to tolerate pain; you have to be able to jump through hoops, and you have to be compassionate and, in our opinion, serve the community.
If you’re in Santa Cruz, be sure to swing by the 3 Bros Grow dispensary.