Marijuana Business Magazine May-June 2019

May-June 2019 | mjbizdaily.com 71 CURRENT BEVERAGE & EDIBLES SALES BY SEGMENT AND STATE Gummies 49% Chocolate 24% Candy, Lozenge & Gum 2% Caramels, Chews & Taffy 6% Other Edibles 14% Beverage 5% Gummies 46% Chocolate 19% Candy, Lozenge & Gum 10% Caramels, Chews & Taffy 8% Other Edibles 8% Beverage 9% Gummies 52% Chocolate 17% Candy, Lozenge & Gum 12% Caramels, Chews & Taffy 4% Other Edibles 9% Beverage 6% Gummies 17% Chocolate 15% Candy, Lozenge & Gum 19% Caramels, Chews & Taffy 17% Other Edibles 16% Beverage 16% • Partnering with a vertically integrated multistate cannabis operator can provide an opportu- nity to rapidly expand the number of markets where your products are offered . And there’s an added benefit of streamlined training on standard operating procedures. In other words, you have one point of contact and train one team of opera- tors who, in turn, train others. The catch: If the relationship with the operator turns sour, you risk losing widespread distribution. • Partners who want to rush to get your products to market aren’t necessarily the right fit. A commitment to quality and a desire to replicate your high-quality products is more important than speed to shelves. 3. PROTECT YOUR BRAND Intellectual property and brand protection are perhaps the most critical consider- ations for manufacturers that license their products for out-of-state distribution. “A contract is a document you never want to have to look at, and a lot can be done by supporting your manufacturing partners,” Knoblich Palmer said. “We treat every issue seriously and work collaboratively to solve problems.” To better protect your brand and intellectual property, she noted: • Your contract must include a noncompete clause. During the course of the contract and in the event the partnership is terminated, a noncompete clause will prevent your manufacturing partner from using your intellectual property to produce similar products. • Design all packaging for your products. Packaging is an important part of your brand identity, and rules for packaging and labeling vary from state to state. The design may need to be adjusted to comply with new rules, and you should maintain control over any necessary redesign to ensure Source: Headset