Marijuana Business Magazine February 2019

Marijuana Business Magazine | February 2019 90 I nfused edibles company Green Labs was blindsided in early Octo- ber, when Washington state regu- lators detailed new rules that would effectively kill off the company’s hard- candy offerings and eliminate the sizable chunk of revenue that went with those product lines. Green Labs ultimately was able to save its Swifts Sour Drops candies after the state’s Liquor and Cannabis Board (LCB) shifted the rules in December to allow candies in limited shapes, colors and packaging designs. But the Raymond, Washington-based company must spend tens of thou- sands of dollars to meet the new regu- lations—all while navigating the state’s evolving edibles regulations. “If they tell us to go left, we’ll go left; right, we’ll go right. We’re not planning to leave the market, so we just have to take it in stride,” said Jordan McAulay, Green Labs’ sales director. On Oct. 3, Washington’s LCB ordered edibles companies to cease production of infused gummies, hard candies, fruit chews, colorful choco- lates and other products that could be deemed “especially appealing to children.” Regulators said licensees could sell through their product(s) until existing inventory was depleted or until April 3, whichever came first. After the state’s cannabis industry rallied against the ban, the board put a one-month pause on reviewing products in the market. On Dec. 12, regulators introduced yet another set of rules allowing manufacturers to keep making edibles, provided they used approved colors, shapes and packaging. Licensees have until Jan. 1, 2020, to meet the new rules. Measuring Losses Sales of Green Labs’ brightly colored lemon-raspberry, orange-mango and key lime-strawberry Swifts Sour Drops were on the chopping block in Washington, per the rule enforcement in October. The company’s chocolate truffles, honeys and sugar-free mints would have been safe because the state is focusing its efforts on gum- mies and hard candies, McAulay said. “For us personally, the ban only affects three of our 100 SKUs,” McAulay said in mid-October. “There are some companies that lean heav- ily on these two edible segments, so we definitely worry for companies in those situations.” Losing Swifts Sour Drops under the initial October order calling for a production halt wouldn’t have been painless for Green Labs, however. Building the Plane as You Fly By Adrian D. Garcia Green Labs eyes product expansion, revamped packaging and other changes during edibles regulatory overhaul in Washington state ApprovedShapes forMarijuana InfusedEdibles Foranadditional shape tobe considered,a request can be submitted to theBoardusing the Request forEdibleChange formwhichwill be reviewed quarterly. If approved, the shape willbe added toourwebsite andavailable forall licensees touse. Shapes thatmimic productsespeciallyappealing to children suchasbutnot limited to, fruits andanimalswillnot beapproved. RGB :225, 37,39 CMYK : 0, 86,100, 10 Hex :E52100 Pantone :485 Red shade RGB : 152,38, 44 CMYK :0,75, 71, 40 Hex : 98262C Pantone : 7622 Maroon shade RGB :255, 164,0 CMYK : 0, 36,100, 0 Hex :FFA400 Pantone :137 GoldenYellow shade RGB :254, 218, 36 CMYK : 0, 14,86,0 Hex :FEDA24 Pantone : 115 LemonYellow shade RGB : 0, 133,36 CMYK : 100,0, 73, 48 Hex : 008524 Pantone : 2258 Green shade RGB :128, 140, 37 CMYK :9, 0, 74,45 Hex :808C25 Pantone :2306 AvocadoGreen shade RGB : 0, 51,160 CMYK : 100,68, 0,37 Hex : 0033A0 Pantone : 286 Blue shade RGB : 0, 32,91 CMYK : 100,65, 0, 64 Hex : 00205B Pantone : 281 DarkBlue shade RGB : 0,132, 118 CMYK :100, 0, 11,48 Hex : 008476 Pantone : 327 Teal shade RGB :81, 13,119 CMYK : 32,89,0, 53 Hex :510D77 Pantone : 2607 Purple shade RGB : 244,98, 121 CMYK :0, 60, 50, 4 Hex :F46279 Pantone :709 Pink shade RGB : 100,53, 17 CMYK : 0,47, 83,61 Hex : 643511 Pantone : 732 Brown shade RGB :91, 102, 112 CMYK : 79, 9,0,56 Hex :5B6670 Pantone :431 Gray shade RGB : 16,24,32 CMYK :50,25, 0, 87 Hex : 101820 Pantone : 6 Black shade RGB :144, 124,75 CMYK : 0, 14,48, 44 Hex :907C4B Pantone :871 Gold shade RGB : 133,136,139 CMYK :4,2,0,45 Hex : 85888B Pantone : 877 Silver shade PackagingandLabelingColors The formulas forLCB-designated colorsallowed foruseon packagesand labelsare indicatedon the color sheet.All formulas represent the same color.CMYKandPantone color guidesare traditionallyusedwithprinting,whereasHexand RGB representon screenequivalents. Anygradientofeach colorbetween zeroand100% isalso permitted foruseonpackages/labels. Washington State LiquorandCannabisBoard RGB : 241,230, 178 CMYK : 0,5,26,5 Hex :F1E6B2 Pantone : 7499 Cream shade RGB : 185, 151,91 CMYK : 0, 18, 51,27 Hex :B9975B Pantone :465 Tan shade ExamplesofDullvs.BrightlyColoredProducts Dull According toMerriamWebster, dull in colormeans low in saturation and low in lightness. Brightlycolored According toMerriamWebster, bright in colormeans high in saturationand lightness. Marijuana InfusedEdiblePackaging andLabelingReviewChecklist Images submitted: ☐ Product ☐ Packaging ☐ Label □ Application submitted □ WSDAapprovedMIEEndorsement Does thisproduct appear to be therapeuticor curative? (medical) ☐ Yes ☐ No □ Business or trade nameand thenine digit unifiedbusiness identifier (UBI)numberof the licensees thatproducedand processed themarijuana ormarijuanaproducts □ Theunique identifiernumbergenerated by theWSLCB's traceability system.Thismust be the same number thatappears on the transportmanifest □ Ifmore than one serving is in a package, the labelmust prominentlydisplays the numberof servings in the packageand theamount ofproduct per serving □ Serving size and thenumberof servings containedwithin the unit □ Netweight inouncesandgrams or volume as appropriate □ THC concentration (delta-9 tetrahydrocannabinol) listed as totalTHCand activatedTHC-A andCBD concentration (cannabidiol) listed as totalCBD and activatedCBD-A (cannabidiol) listed as totalCBD and activatedCBD-A □ List of all ingredients in descending order of predominance byweight or volume asapplicable and a listofmajor food allergensas defined in theFoodAllergen Labeling andConsumer ProtectionActof 2004 □ WSDAapproval of ingredients/recipe □ If solventswere used,a statement thatdiscloses the type of extractionmethod, including any solvents,gases, or other chemicalsor compounds used toproduceor thatareadded to the extract WarningStatements andSymbols □ “Warning -Maybe habit forming" □ "Unlawful outsideWashingtonState" □ "It is illegal tooperate amotor vehiclewhile under the influenceofmarijuana" □ CAUTION: “Intoxicatingeffectsmaybe delayed by2+ hours” □ Themarijuanauniversal symbol □ TheNotForKids symbol Business Strategies | Infused New regulations seek to make edibles unattractive to children. 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