A panel of experts convened at the recent Benzinga Cannabis Capital Conference in Chicago to explore the advantages of manufacturing cannabis products such as vapes and edibles, contrasting them with traditional cannabis flowers.
The panelists addressed critical questions such as: How manufacturing can boost profits and diversify the world of cannabis? How does automation enhance efficiency in cannabis? And, what measures are being implemented to ensure research and safety standards in the cannabis industry?
Advantages Of Manufactured Cannabis Products
Moderator Tony Abel, managing director of Ultra Consultants, introduced the panelists, including Rob Wirtz, president & CEO of MACH Technologies, Andrew Glashow, chairman/CEO of CLS Holdings USA Inc., Arnaud Dumas de Rauly, CEO & chair of ISO Standards at The Blinc Group and Luna Stower, CIO of ISPIRE Technology.
Stower highlighted the significance of manufactured products in making cannabis accessible to a broader audience. She discussed how products like vape cartridges and disposables cater to consumers who may be unfamiliar with traditional methods of consuming cannabis.
“We’ve noticed a shift away from traditional flower consumption. Whether you’re a consumer, a manufacturer, or an investor, it’s crucial to stay ahead of these trends. Vaporizing offers numerous advantages over smoking, making cannabis more accessible. Our products adhere to GMP and ISO standards, ensuring they won’t face regulatory issues,” Stower said.
“They appeal to curious consumers, resembling familiar household items, offering a comfortable grip. It’s a new way to engage with the plant and contribute to industry growth, particularly for those hesitant about direct plant interaction,” Stower continued.
Higher Margins And Efficiency
Andrew Glashow shared his perspective on why an organization might opt for the manufactured cannabis business over-cultivation.
He emphasized the potential for higher margins in manufacturing and the ability to reduce bulk products to concentrate, making shipping and storage more efficient. Additionally, he mentioned the lower technology upgrade requirements in manufacturing compared to cultivation.
“We opted for manufacturing due to the higher margin and opportunity offered by value-added products compared to flower cultivation. As we witnessed the sharp decline in flower prices, we managed to offer more cost-effective products while protecting our margins,” Glashow said.
“Manufacturing also allowed us to avoid the constant need for technology upgrades, which is prevalent in cultivation. We saw that our existing technology, some dating back 60 years, was suitable for tincture states and concentrates production,” Glashow noted.
The Role Of Technology And Automation
Rob Wirtz explained technology’s crucial role in converting flowers to concentrate. He emphasized the need for flexibility and scalability, suggesting that companies should invest in various extraction technologies to adapt to changing market trends. Automation was a key factor in maximizing efficiency and minimizing labor costs in the conversion process.
“To achieve better ROI in the extraction process, a mix of factors comes into play. This includes equipment selection, adaptability to changing markets, and minimizing the conversion costs -from flower to oil,” Wirtz said.
“Automation plays a pivotal role in cutting labor expenses, enhancing scalability, and boosting efficiency. The evolving cannabis industry demands such automation for global competitiveness and growth,” Wirtz added.
Customization, Ease of Use And Flexibility
Arnaud Dumas de Rauly highlighted the importance of manufactured products in making cannabis more accessible to new consumers and how customization and ease of use play a significant role in attracting a broader audience. He also emphasized the significance of automation and the ability to provide flexible payment terms to smaller businesses in the industry.
Meanwhile, Stower discussed the value of customization and the unique touchpoints that can enhance the value and ROI of these products. Additionally, she touched on the stress reduction and increased focus on business that automation can bring to cannabis manufacturers.
Advice for Smaller Organizations in Cannabis Manufacturing
Stower emphasized the importance of people, relationships, collaboration, and education as key factors in success, whereas Glashow encouraged a people-centric approach, citing the value of education and destigmatization in attracting investors and helping brands innovate.
Photo by Testalize.me on Unsplash.
