As more states adopt policies to legalize cannabis, Colorado’s marijuana pioneers are bringing their successful brands to new territories, both nationally and internationally. At the recent CBEC Connection Denver conference,  the founders of two of Colorado’s best-known brands – Nancy Whiteman, co-owner, Wana Brands, and Bob Eschino, founder of incredibles/MC Brands – revealed the intricacies of cultivating a successful cannabis brand into a lucrative international business model.

Have a solid foundation

Whiteman began by emphasizing the importance of a solid local foundation upon which to grow the business in the first place. “Wana waited to expand until we had a stable offering of products and a brand that was well-known in Colorado. Make sure that your core offering is well established,” she said.

Eschino said that background knowledge and thorough preparation are key. “When you enter a new market, you’re starting over,” he said. “The tools for running a smooth operation are often not at your disposal. We often have to help teach and regulate our new partners in the new markets for a reason – we’ve been doing it longer than they have, and the infrastructure in new markets is usually not there yet.”

Importance of planning

With a wealth of opportunities for cannabis businesses, it is important to be strategic with business objectives and to have a detailed plan in place before expanding. Whiteman provided perspective from her experience nurturing Wana Brands’ growth: “Many new states are legalizing, and people want to work with brands that are already established,” she said. “It’s imperative to pick your geographic priorities as otherwise you can get pulled in too many directions.”

Whiteman said when evaluating a market she looks at total population of the state, who is allowed to prescribe and what conditions are allowable, as well as whether adult-use/recreational cannabis is legal. Based on these factors, Whiteman develops her priorities for the prospective market, including a look at bandwidth. “Know your limits,” she said. “There’s a temptation now to take on as much as you possibly can, and it is starting to feel like a land grab.”

It is equally as important to be reactive and flexible, according to Eschino. “It is not always possible to plan in advance,” he said. “Crises and opportunities will arise and it is imperative to act upon them. There are so many potential pitfalls in

this business, and each market has its own set of challenges.”

For businesses looking to expand into a new market, developing sound partnerships starts with being a good teammate, according to Whiteman. “Expect to be involved in a much deeper level than you anticipated,” she said. “Wana looks for companies who want to be partners with us, and we expect to be deeply involved.”

Whiteman noted that it is likely new business partners in emerging markets will not come from a cannabis-business background, and that means there will be a steep learning curve. Cannabis organizations that want to protect the quality of their brand will need to stay deeply involved with new partners to ensure that the collaboration is successful and fruitful.  “The most complex part of the expansion process is finding the right partner,” she said. “It’s very similar to dating in that you have to network like crazy to find the person that suits your business best. Find people with compatible values and goals who have passion for the industry. You might have to kiss a lot of frogs to find your prince.”

Whiteman described the contract process as a prime time to discuss the nuances of the business relationship. “Initial conflict can often be an opportunity to figure each other out,” Whiteman suggested. “Especially in the contract period, conflict or disagreements can be indicative of behavior later in the partnership. If you’re not able to resolve differences of opinion in the early stages, it’s not likely to improve down the road.”

Executing a launch

New cannabis consumers will likely be receptive to new brands launching in their area, so it’s imperative to launch your brand according to your company goals in a manner that resonates with potential consumers. “We have a very detailed launch plan, including specific time frames,” Whiteman said. “We don’t assume everything can be replicated entirely from market to market. For example, we send our research and development chef to each market first to determine the local intricacies. We do a thorough competitive analysis to aid dosage and pricing decisions. We have an implementation team that we send out for launch and on an ongoing basis for the first six months. The launch phase is vital to success in that market.”

Protecting your brand

“It’s difficult to run a national brand when each state has different regulations and policies,” Eschino said. “It adds a layer of complexity that is impossible to anticipate. Discrepancies from state to state can affect the overall brand. You want your product to taste the same in every state. Yet each state that you move into has different labeling, different potency, different testing labs. Often you must re-teach the testing labs in each state according to the existing cannabis market standards.”

On the importance of ongoing effort to harness and protect brand identity, Whiteman noted that brands must remain involved from the beginning. “Set up a control system that you’re comfortable with, and implement regular checks. Develop a robust QA system and remain involved to provide support when necessary so you can monitor progress and check in with your partner,” she said.

Both Whiteman and Eschino agreed that there is no correct blueprint to follow when navigating a national expansion project in the legal cannabis industry. Preparing a strategic plan, lining out standard operating procedures, committing to be present throughout the process, and expecting the unexpected, are just a few tips that can be utilized to ensure a successful brand expansion.