Bruce and Annette Wiles in their Plattsmouth, Neb., greenhouse.
Annette and Bruce Wiles are spending the snowy winter selling their hops equipment after six years of selling their fragrant flowers in the brewery supply chain. It was a good experience, Annette says now, and the learning curve has helped get them to where they want to be as the 2021 season opens: primed and ready for hemp cultivation.
Bruce and his family are third-generation row crop farmers from Nebraska. Annette came from a business background. Six years ago, the allure of the hops market (small acreage, good ROI) brought them to split off from the row crop history and try their hand at something new. Their expertise blended well, and the business took off. They called themselves Midwest Hop Producers and located their farm in Plattsmouth, Neb., just south of Omaha.
“We were blessed with the experience, to get us prepared now for the next journey,” Annette says, looking ahead to an immersion into the burgeoning hemp business. “Who is lucky enough to have one plant that can have three different types of crops?”
In 2019, the couple was selected as one of 10 pilot businesses for industrial hemp cultivation. They grew four varieties of hemp in their greenhouse (72 plants each) and harvest late that winter. (A record-breaking flood devastated much of the area around Plattsmouth earlier that spring, altering the landscape and throwing agricultural timetables out of whack.) The couple’s biomass was used for smokable flower and pre-rolls, and, ultimately, the process helped the university extensions better understand what sort of work was needed on this crop.
In 2020, they added a ¼ acre outside, and Nebraska issued licensed to 84 growers statewide. (The Wiles family had been growing 32 acres of hops, but that land will need to be remediated, Annette says, due to the chemical inputs that remain unapproved in the hemp business.)
By this point, the couple was discovering that hemp, overall, demanded far less hands-on labor than hops—especially toward the middle of the season when hop plants must be trained to grow in particular directions.
Now, as 2021 unfolds, Midwest Hop Producers is planning to grow starts in their greenhouse for other farmers and develop an educational conference for the regional hemp industry. Annette says it’s a holistic path to a better business: getting university extensions up to speed, running variety trials, testing the state’s diverse microclimates and soils, building that core knowledge for a sustainable marketplace. She quickly points out that there are growers still burdened by 2019 biomass, wondering where to place it. Education—from seed to sale, as they say—is the key to unlocking that equation.
Courtesy of Annette Wiles
As for the name: Annette points out that she and Bruce are still working through some of the legal and marketing angles on rebranding the business. For now, they remain Midwest Hop Producers.
But the hop market is an important backbone to their story. The two plants share many botanical and regulatory similarities. Annette and Bruce had been processing their crops per food-grade standards, something they continue to do with their nascent hemp business in order to prepare for future FDA oversight. They’re familiar with product liability insurance and the importance of terroir. They’ve worked with university extensions to study wild hops, much in the same way that researchers are now analyzing feral hemp that grows freely across the U.S.
The couple has also worked for years to grasp the implications of seasonal change and lighting: watching their plants for movement into their flowering phase. Perhaps most critically, they’re adept at testing their crops for the necessary measurements of chemical compounds—something that new hemp growers often find to be a touch-and-go adjustment in the field.
Annette sees the future of Nebraska hemp industry moving toward the development of a robust fiber market, rather than the CBD business. But it’s not an easy task up front: involving a search for the market infrastructure needed to shepherd hemp biomass into the fiber segment—or even the animal bedding market, which Wiles points to as a distinct niche that Nebraska farmers could fill with their supply. Processors need assurances that a fiber crop will be there at the end of the season, and growers need assurances that buyers’ contracts will be fulfilled.
“It’s the chicken and the egg, right?” she says.
And yet, the promise of a Nebraska hemp market is too great to ignore. Annette says the key, again, is simply education. This is a crop that can benefit from shared knowledge and hands-on involvement from university extensions once everyone is on the same page. In that way, Nebraska isn’t so far off from all the other U.S. states wrestling with hemp right now.
Shane Cotee | Adobe Stock
Idaho Lawmakers Advance Constitutional Ban on Cannabis
The proposed constitutional amendment would prohibit legalization in the state.
Idaho lawmakers voted Jan. 29 to advance a joint resolution that would implement a constitutional ban on cannabis, according to an AP News report.
The Senate State Affairs Committee voted 6-2 to approve the proposed constitutional amendment, which would ban all psychoactive drugs that are not already legal in Idaho, the news outlet reported. The list of banned substances could then be adjusted if drugs are approved by the U.S. Food and Drug Administration, according to AP News.
The amendment’s supporters argue that neighboring states have legalized cannabis through voter-approved initiatives, which could also happen in Idaho, while those opposed said medical cannabis should be available for residents suffering from chronic or terminal illnesses, the news outlet reported.
The joint resolution needs to pass the Idaho Senate and House with two-thirds majority in each chamber, according to AP News, and would then go before voters in the 2022 election.
demerzel21 | Adobe Stock
New Jersey Assembly Committee Advances New Adult-Use Cannabis Compromise Bill
The legislation is lawmakers’ second attempt to pass an adult-use implementation bill that Gov. Phil Murphy will sign into law.
The New Jersey Assembly Community Development and Affairs Committee voted 4-2 on Jan. 29 to advance a new adult-use compromise bill, according to an NJ.com report.
The legislation is lawmakers’ second attempt to pass an adult-use implementation bill that Gov. Phil Murphy will sign into law, the news outlet reported.
Murphy refused to sign an earlier version of adult-use legislation until lawmakers added penalties for underage cannabis use, but that attempt at a “cleanup bill” fell apart when Black lawmakers voiced opposition to the proposal, arguing that the penalties outlined in the legislation would disproportionately impact minorities, according to NJ.com.
While the first version of the bill would have imposed a fine of at least $250 for those ages 18 to 20 who possess up to 6 ounces of cannabis, as well as a fine of $500 or more for those who possess more than 6 ounces, the new legislation lowers the fines to $50 for the possession of less than 6 ounces and $100 for the possession of more than 6 ounces, the news outlet reported.
The legislation would also prohibit law enforcement from stopping and searching a young person solely based on the odor of cannabis, according to NJ.com.
Paul | Adobe Stock
Mississippi Supreme Court Set to Hear Oral Arguments in Medical Cannabis Case
The lawsuit, filed by Madison Mayor Mary Hawkins Butler, challenges the initiative process that legalized medical cannabis in the state.
The Mississippi Supreme Court is set to hear oral arguments in a lawsuit filed by Madison Mayor Mary Hawkins Butler that challenges the initiative process that legalized medical cannabis in the state, according to an AP News report.
The court issued an order Jan. 28 that schedules the hearing for April 14, the news outlet reported.
Butler filed the complaint in late October, just one week before Election Day, to challenge the petition process that qualified Initiative 65, the state’s medical cannabis legalization measure, for the ballot.
The measure, which voters ultimately approved, requires the Mississippi State Department of Health to implement a medical cannabis program by the middle of this year, AP News reported, but Butler’s lawsuit seeks to block the program, arguing that the proposal should not have been on Mississippi’s ballot in the first place because the initiative process is outdated.
According to the state constitution, petitioners must collect and equal number of signatures from five congressional districts, according to AP News, but Mississippi only has four congressional districts following the 2000 Census. In her lawsuit, Butler argues that with four districts, more than one-fifth of the signatures must come from each, the news outlet reported.
Wine, Window Treatments and Cannabis: Q&A with CULTA COO Allison Siegel
Siegel, the newly appointed chief operating officer for Maryland-based, vertically integrated cannabis operator CULTA, shares how her past experience in other industries guides her perspective of the cannabis market.
Many might expect that the wine industry shares similarities with the cannabis market, from the strict regulations to brand development strategies, but few might think to compare cannabis with window treatments.
However, according to Allison Siegel, the former president of Next Day Blinds and a former information technology and marketing executive for Total Wine & More, both roles provided valuable experience and expertise that will serve her well in her new position as chief operating officer for CULTA, a Maryland-based, vertically integrated cannabis operator.
At Next Day Blinds, Siegel grew accustomed to owning the customer experience from manufacturing to sale to installation, which is not unlike overseeing the cultivation, manufacturing and sale of medical cannabis products. And, she adds, the cannabis industry is growing rapidly like the wine industry once was, which makes Siegel excited to lend her talents to another quickly evolving market.
Here, Siegel shares more about her professional background, how her experience guides her perspective of the cannabis market and her overall goals for CULTA as the company continues to grow in Maryland.
Melissa Schiller: Can you describe your background and previous experience with Next Day Blinds? What did your previous role entail?
Photo courtesy of CULTA
CULTA Chief Operating Officer Allison Siegel
Allison Siegel: Most recently, I was president of Next Day Blinds, a Maryland-based, vertically integrated, direct-to-consumer business with 400-plus employees. I ran the day-to-day business until I led the company through a strategic sale to a national competitor. Prior to president, I was chief revenue officer, responsible for sales and marketing. While at Next Day Blinds, my team significantly improved top- and bottom-line financial results and we had a fun time doing it! We implemented a full technology replacement, upgrading our systems while enabling a thorough omni-channel experience for our customer. We also increased our gross margin through our manufacturing plant while increasing customer satisfaction. We did all of this while improving employee engagement scores, too.
Prior to Next Day Blinds, I worked for Total Wine & More for 10 years. I built and ran the IT Applications & Business Process teams for Total Wine for many years, and then spent my final three years there building a [customer relationship management] (CRM ) system, a loyalty program and a consumer insights group within the marketing team.
I also worked for a number of years at Anderson Consulting (now Accenture), mainly focusing on strategy and technology implementation of product-based companies.
I studied industrial and operations engineering at University of Michigan in Ann Arbor. Go Blue!
MS: How will your background and previous experience benefit you in your new role as CULTA’s COO?
AS: My experience at Next Day Blinds running the day-to-day operations will help me both understand and implement the process, people and technology needs to effectively run the operations at CULTA. Even though the product is very different, Next Day Blinds was a vertically integrated company, owning the customer experience from sale to manufacturing to installation. That experience will help me here at CULTA as we are a seed-to-sale vertically integrated operator.
The focus of customer experience at Next Day Blinds is also something that mirrors the CULTA business. We at CULTA believe the customer experience always needs to come first, focusing on a quality product and always being transparent with our customer. In addition, my years of experience in retail will help me support our growing dispensary business.
Wine has a lot of similarities to cannabis, especially around the intense regulation, taxing and brand development areas. In addition, the extreme growth I was part of at Total Wine & More closely mirrors CULTA’s growth. Managing and keeping up in a growth culture isn’t for the faint of heart. I have already experienced it and loved it at Total Wine & More. I am excited that I get to be part this similar explosive trajectory at CULTA.
MS: What attracted you to the cannabis space, and to CULTA specifically?
AS: My path into this space was not a traditional one. While exploring what I wanted to take on after the sale of Next Day Blinds, I met one of the members of our board of directors. We met (in his backyard due to COVID restrictions) and spoke a lot about the challenges that go along with the excitement of operating growing businesses, as well as the lack of business (non-government) leaders in the Baltimore-Washington, D.C. area. At some point in the conversation, he asked me if I would be interested in consulting for a cannabis company in the area. After speaking with Mackie Barch, CEO of CULTA, as well as one of the other directors on our board, they quickly won me over with CULTA’s story, growth and vision. I agreed to consult with them for a few months.
Once I was consulting, I got a tour of the CULTA Cambridge campus and realized, this is a real business. What made me decide to come on board full time was three-fold:
1. I have never seen a company where the employees are so proud, happy and fulfilled. If you walk into any space occupied by CULTA employees, you can feel them living and breathing the CULTA culture. They have a sense that they not only are part of the culture, but that they were part of defining and building it. And they take the role of preserving that culture very seriously.
2. I am inspired by people who are the best at what they do. People who you always feel are at the top of their game and, even then, they continue to evolve, learn and grow. This is one of the things that drew me to CULTA. We have the best people, those that are true experts in their field, and they are open to new ideas and always ready to learn.
3. I can help. My expertise, background and passion are areas where there was an obvious hole that was created as the company went from start-up to growth mode.
MS: What is exciting to you about Maryland’s medical cannabis market in particular, and CULTA’s operations in the state?
AS: There is so much exciting about the U.S. cannabis industry, and Maryland is just a microcosm of that excitement. It’s an incredible opportunity for me to drive growth at CULTA, while also help to normalize cannabis, both medicinally and politically.
I am a Maryland girl at heart. I grew up in Baltimore and currently live in Rockville, Md. It is exciting for me to be part of the change in Maryland around [the] acceptance of cannabis as a mainstream medical treatment. The community here has made huge strides from where we were just a few years ago.
CULTA has had a positive impact on Cambridge, Md., where we are located. Our operation has brought new jobs to Cambridge and we are so happy to be able to make a difference in this community.
Our dispensary business is continuing to evolve, as well. While we already have a loyal following, we are continuing to invest in the dispensary business and the team. We will continue to ensure we are able to service our patients with the best products, most knowledgeable budtenders, and a clean and enjoyable dispensary experience.
MS: CULTA seems to be in the middle of a growth spurt, with a new headquarters and additional new hires, such as Vice President of Retail Sales Jonathan Lassiter. How do you plan to help support this growth in your new role, and where do you see the company headed over the course of this year?
AS: A growth spurt would be putting it lightly. This company is still in its infancy, yet it is growing leaps and bounds month over month. This company went from start-up to growth mode over an 18-month period. The board of directors and the current management team have recognized that in order to continue [the] amazing growth, additional talent is needed to complement the current players.
In my role, I am going to help drive the growth using more mature methods than are used during a company’s start-up phase. Over the course of this year, we will embark on a number of projects that will take this company to the next level. Through CULTA’s growth in 2020, the current team proved that CULTA was able to keep the products’ quality high while increasing supply. We now need to continue to dial in our production while implementing our plan for continued growth.
When you are in a growing, immature market, everything looks like blue waters. We need to ensure we have a strong plan for our growth, focus on the blue waters that we can own at CULTA and be able to pivot when we try something and fail. I am here to help support and drive those efforts and ensure our team members all feel engaged and fulfilled.
MS: What are some of your other shorter- and longer-term goals in your new role with CULTA?
AS: Short term, I need to spend a lot of time learning about the cannabis space—both what we are doing at CULTA and what the rest of the country is doing, especially in the more mature markets. I am also very cognizant that I need to be a steward of our culture. We need to keep the quality of our culture and our product at the forefront of all of our decisions, even as we grow. While the bottom line of a business is important, we can’t let short-term financial goals erode the long term, which would happen if we don’t ensure our culture and quality stay No. 1. I also have a short-term goal to start to understand the political and social landscape as it pertains to cannabis. This goes hand in hand with this industry and I need to educate myself in these areas.
Longer term, my goal is to make this the best, most admired cannabis company in Maryland. At Next Day Blinds, I helped transform it into a top-tier brand in the Mid-Atlantic. I’m excited to contribute to CULTA’s similar growth. Luckily, all of the foundation is already in place here—I just have to build on top of it.
Editor’s Note: This interview has been edited for style, length and clarity.
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