Marijuana Business Magazine October 2018

If an infused product maker in Washington state submits a seasonal or limited-release product for approval, it’s published in a spreadsheet that lists approved products on the LCB’s website. If a product is submitted and approved too far ahead of its manufacturing date, a competitor may see what’s being developed and – with more capital resources – could be first to market with its own version. Washington state regulators also must approve package design.The turnaround time on approvals varies from weeks to months. If regulators have additional questions or different interpretations of product or packaging regulations, that can slow the process. “Any hiccups are detrimental in trying to pull off a seasonal product,” Stannard said. Factor in Manufacturing Needs Seasonal or limited-release products typically don’t carry a high whole- sale markup because retailers have a wide variety of options from which to choose.That means it’s important to dial in your manufacturing processes and keep underlying costs low to pre- serve revenue margins. As a result, you must plan ahead and have an agile manufacturing team, said Julie Berliner, CEO of Denver’s Sweet Grass Kitchen, an infused product maker that released a 20-to-1 CBD cookie in July as part of a new corporate social-giving campaign. In particular, be cost conscious and anticipate how seasonal or limited-release products fit into your current manufacturing process. Hope Frahm, a chef at Love’s Oven, said it’s best to leverage ingredients you already have before purchasing new or seasonal ones.When you devise products that use new ingredients such as fresh fruit, make sure they’ll be available dur- ing your targeted manufacturing times and within your budget, she said. The cost of labor must be factored in, too – particularly if manufacturing seasonal or limited-release items require manual labor or a change in automated processes. For example, the chefs at Love’s Oven manually mix, roll, com- bine and cut rainbow- and camouflage- colored doughs for two of their limited- release products, said Joshua Nettles, a partner at Love’s Oven. If you specialize in baked goods, a seasonal infused beverage would require a significant capital investment or strategic partner to bottle or can liquids, Green Labs’ Stannard said – and it might not complement your product line. When considering such a large investment, consider whether profits are likely to make up for the expense. Cobranding Can Boost Visibility Cobranding seasonal or limited- release products can take your brand to EXECUTIVE SUMMARY Seasonal or limited-release infused products can be a boon to brand equity and a good way to boost a corporate social-giving campaign. But before infused product makers start product development, industry experts said they should consider: • State packaging, testing and product-development regulations that may delay manufacturing – or give competitors insight into what they’re working on. • The added cost of manufacturing seasonal and limited-release products, including seasonal ingredients, new manual processes or new automated equipment. • Factors that will influence when they keep a product in annual rotation, extend it another season or discontinue it. • How to select recipients of corporate social-giving campaigns – then to follow through on commitments and communicate donations to the public. The ginger spice cookies created by Love’s Oven of Colorado are a seasonal offering. When seasonal products are successful, companies may want to release them at other times of the year. Photo courtesy of Love’s Oven Colorado’s Sweet Grass Kitchen released a new 20-to-1 CBD-to-THC double- chocolate cookie with 5% of proceeds donated to Planned Parenthood of the Rocky Mountains. Photo courtesy of Sweet Grass Kitchen Swifts Edibles, manufactured by Washington state’s Green Labs, releases a seasonal pumpkin truffle. Packaging and product-development regulations can be a challenge for bringing seasonal products to market. Photo courtesy of Green Labs 76 • Marijuana Business Magazine • October 2018