Cannabis lemonade. Cannabis honey. Even cannabis krispie treats — bottled, packaged and labeled like any other products.
A few years ago, they could have landed you in prison. But in Illinois, they’re about to become big business.
“When we first started in Colorado, there was no blueprint for this business,” said consultant Greg Gamet, walking the exhibit floor at Chicago’s Marijuana Business Conference and Expo. “We’ve seen real estate prices go from $50 a square foot, to $250 a square foot in three years.”
The conference is in Chicago for a reason. The state’s first medical marijuana licensees were confirmed in January, and product is expected to start flowing by year’s end.
An Illinois advisory board has voted against recommending that anxiety and diabetes be added to the list of qualifying conditions for medical marijuana. NBC Chicago’s Charlie Wojciechowski reports. (Published Monday, May 4, 2015)
“We’re hoping sometime in September or October,” said Edward Jauch, head of security for InGrown Farms, which is building a sprawling cultivation center near Freeport. “We came to this conference to support this industry. It’s new, it’s up and coming, and we’re here to learn from other people.”
There is plenty to learn. From cultivation, to packaging, to security and transport, marijuana is one of the few businesses which Illinois residents will witness from the ground up.
And one of the biggest learning curves, involves money.
“Marijuana is only cash,” said David Ellerstein, CEO of Jane Systems. “There’s no Visa or Mastercard.”
Because trafficking in marijuana is still considered a federal crime, many banks believe processing the cash from medical marijuana businesses will expose them to money laundering charges with federal regulators. Finding a bank willing to handle the millions of dollars the business is expected to generate, could be challenging. Ellerstein’s firm offers a hardened kiosk machine, which handles the cash inside the dispensary, and controls the entire point-of-sale experience.
“We think this is something the regulators would embrace,” he said.
The exhibit halls of the Chicago Hilton and Towers were packed with vendors offering a glimpse of the world as it’s about to become in Illinois. From growing lights, to child-proof bags, to marijuana labeling systems and safes for the cash, it’s all here.
“We get to change people’s perceptions of what cannabis is,” said Marco Hoffman of VCC Brands. “We take people and their preconceived notions, and knock down that wall.”
VCC produces marijuana edibles. Their “Cannabis Quencher” is a THC-infused lemonade. They also offer candies, olive oil, even rice-krispie treats, all carrying the active ingredient which gives marijuana its punch.
“This is the equivalent of six or seven beers,” Hoffman said, holding a bottle of his lemonade. “This is a THC delivery system. We extract the oils from the plant and infuse it into products that they don’t have to smoke or even eat.”
Hoffman has been in the business for 10 years and is considered one of the “graybeards” of the industry. He’s 40 years old. And because cannabis can’t be transported across state lines, all of his products have to be manufactured in the state where they’re sold. They would not be licensed, but would work with licensed growers here.
“We’d teach them how to extract and infuse it and how to make these brands, then they would become the distributor of these products in this state,” he said. “I am confident we are going to get into Illinois.”
By any measure, it’s a surreal experience to see exhibitors selling materials to legally cultivate a product which has put to many people behind bars. Perhaps Gamet, the Denver consultant, sums it up best.
“Financial institutions that wouldn’t even take our phone calls five years ago, are calling us now trying to lend us money in this industry.”