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Opinion: How marijuana retailers can make their delivery services future-ready

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Jack Underwood

Marijuana delivery has come a long way in the past decade.

With nearly half of U.S. adults having tried marijuana, a push for widespread legalization and a growing cannabis culture have made it easier than ever for MJ delivery operations to flourish.

However, it wasn’t always this way.

Before states such as California and Colorado began legalizing recreational marijuana, cannabis delivery was a covert affair, carried out through illicit trades in dorm rooms and fast-food restaurant parking lots.

Still, slightly more sophisticated methods arose.

In the early 2000s, a network of organized delivery formats quietly emerged, in which cannabis users could make a call and a bicycle courier would arrive sometime during the day with a discreet delivery.

In California specifically, these services popped up as a way to evade restrictions on cannabis storefronts, even as the state made moves toward the sweeping legalization it enjoys today.

Now, with recreational marijuana legal in 19 states and Washington DC, cannabis delivery is going the way of Uber Eats and Doordash.

In fact, a 2021 poll of marijuana users in California revealed 90.1% of respondents primarily purchased cannabis via delivery during the COVID-19 pandemic.

With this rising expectation of convenience, retailers must be prepared to tackle the challenges of the post-pandemic delivery landscape head-on in order to meet this demand.

Below are three strategies to help:

Practice safe delivery

It should go without saying that a good delivery business cannot cut corners, no matter the product being sold.

But for cannabis stores, whose highly valuable product faces complicated legal regulations, this means taking numerous extra precautions to ensure product is stored, transported and delivered within compliance.

The most important step to practicing safe delivery is prioritizing driver safety.

Depending on the size of the delivery team, having two employees in each delivery vehicle can be an effective accountability tactic – some states even require it.

Retailers can also monitor their drivers on the road and implement regular check-ins to ensure deliveries are being conducted properly and address any hazards or concerns.

Stores must also plan safe, efficient delivery routes in accordance with local laws.

For example, if drivers are permitted to deliver only one order at a time, retailers might consider hiring more drivers to increase daily delivery volume – instead of forcing drivers to rush orders on the road.

One cannabis transport service in California is able to boast delivery in less than an hour because they have their own highly trained delivery fleet.

However, as this might not be possible for smaller stores and individual sellers, retailers should prioritize ongoing driver training as well as the use of proof-of-delivery systems to ensure the intended recipients are the ones who receive their packages.

Overall, customers want to know their deliveries are being made with care, and safe delivery practices will mitigate errors and reduce the risk of a lost or damaged order.

Prioritize the customer experience

Cannabis delivery is a hot industry at the moment, with competitors scrambling to create the most convenient, high-quality service for consumers.

But the customer experience is about more than simple convenience. Personalization and open communication can go a long way in shaping the delivery experience, allowing customers to be an active part of the process.

While it’s not quite the friendly relationship a customer might have had with their former marijuana dealer, a more personal experience can help to foster consumer trust.

Retailers should take an approach to personalization that best fits their business.

Some cannabis delivery platforms are educational communities for various consumer and industry topics, but they also position themselves as a source of expertise.

Others offer personalized product recommendations and follow-up after deliveries to keep customers engaged and satisfied.

On the communication side, stores can use special apps – or more traditional methods such as text messaging and email – to keep customers informed of the status of their order.

In a time when consumer relationship-building happens more and more frequently online, making communication around deliveries accessible has become a critical part of customer service.

Invest in delivery technology

Using the right software can also help marijuana retailers optimize and secure their delivery processes.

When developing a cannabis delivery tech suite, route planners, proof-of-delivery applications, driver monitoring systems and package trackers should all be priorities.

  • Route plannersoperating like a more advanced version of Google Maps, can help companies save on fuel costs and cut time on the roads without compromising safety. A good route planner is adaptable to traffic hazards and likely includes other functionalities, such as package location.
  • Proof-of-delivery (POD) apps use photo, text messaging or e-signatures to confirm packages are delivered on time and to the appropriate sender. POD is vital to maintaining proper delivery records and resolving any discrepancies that might arise.
  • Driver monitoring systems allow stores to keep track of their delivery people in real time, which is critical when delivering valuable product, especially if employees are using their personal vehicles to make deliveries.
  • Package-tracking and management systems facilitate the delivery process by allowing drivers to locate packages within their vehicles instantly, preventing mix-ups and loss of valuable product.

There are also software technologies that help keep marijuana retailers compliant with local and state regulations.

Depending on the extent of a store’s delivery services, when implemented properly, delivery tech should accelerate and optimize the process, ultimately making things easier for them – not harder.

The future of delivery is here, and in order to adapt to a heightened demand for cannabis, as well as a growing reliance on convenience, retailers that deliver must create a balance of safety, efficiency and personalization in their processes.

Source: https://mjbizdaily.com/how-marijuana-retailers-can-make-their-delivery-services-future-ready/

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New Mexico cannabis operator fined, loses license for alleged BioTrack fraud

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New Mexico regulators fined a cannabis operator nearly $300,000 and revoked its license after the company allegedly created fake reports in the state’s traceability software.

The New Mexico Cannabis Control Division (CCD) accused marijuana manufacturer and retailer Golden Roots of 11 violations, according to Albuquerque Business First.

Golden Roots operates the The Cannabis Revolution Dispensary.

The majority of the violations are related to the Albuquerque company’s improper use of BioTrack, which has been New Mexico’s track-and-trace vendor since 2015.

The CCD alleges Golden Roots reported marijuana production only two months after it had received its vertically integrated license, according to Albuquerque Business First.

Because cannabis takes longer than two months to be cultivated, the CCD was suspicious of the report.

After inspecting the company’s premises, the CCD alleged Golden Roots reported cultivation, transportation and sales in BioTrack but wasn’t able to provide officers who inspected the site evidence that the operator was cultivating cannabis.

In April, the CCD revoked Golden Roots’ license and issued a $10,000 fine, according to the news outlet.

The company requested a hearing, which the regulator scheduled for Sept. 1.

At the hearing, the CCD testified that the company’s dried-cannabis weights in BioTrack were suspicious because they didn’t seem to accurately reflect how much weight marijuana loses as it dries.

Company employees also poorly accounted for why they were making adjustments in the system of up to 24 pounds of cannabis, making comments such as “bad” or “mistake” in the software, Albuquerque Business First reported.

Golden Roots was fined $298,972.05 – the amount regulators allege the company made selling products that weren’t properly accounted for in BioTrack.

The CCD has been cracking down on cannabis operators accused of selling products procured from out-of-state or not grown legally:

Golden Roots was the first alleged rulebreaker in New Mexico to be asked to pay a large fine.

Source: https://mjbizdaily.com/new-mexico-cannabis-operator-fined-loses-license-for-alleged-biotrack-fraud/

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Marijuana companies suing US attorney general in federal prohibition challenge

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Four marijuana companies, including a multistate operator, have filed a lawsuit against U.S. Attorney General Merrick Garland in which they allege the federal MJ prohibition under the Controlled Substances Act is no longer constitutional.

According to the complaint, filed Thursday in U.S. District Court in Massachusetts, retailer Canna Provisions, Treevit delivery service CEO Gyasi Sellers, cultivator Wiseacre Farm and MSO Verano Holdings Corp. are all harmed by “the federal government’s unconstitutional ban on cultivating, manufacturing, distributing, or possessing intrastate marijuana.”

Verano is headquartered in Chicago but has operations in Massachusetts; the other three operators are based in Massachusetts.

The lawsuit seeks a ruling that the “Controlled Substances Act is unconstitutional as applied to the intrastate cultivation, manufacture, possession, and distribution of marijuana pursuant to state law.”

The companies want the case to go before the U.S. Supreme Court.

They hired prominent law firm Boies Schiller Flexner to represent them.

The New York-based firm’s principal is David Boies, whose former clients include Microsoft, former presidential candidate Al Gore and Elizabeth Holmes’ disgraced startup Theranos.

Similar challenges to the federal Controlled Substances Act (CSA) have failed.

One such challenge led to a landmark Supreme Court decision in 2005.

In Gonzalez vs. Raich, the highest court in the United States ruled in a 6-3 decision that the commerce clause of the U.S. Constitution gave Congress the power to outlaw marijuana federally, even though state laws allow the cultivation and sale of cannabis.

In the 18 years since that ruling, 23 states and the District of Columbia have legalized adult-use marijuana and the federal government has allowed a multibillion-dollar cannabis industry to thrive.

Since both Congress and the U.S. Department of Justice, currently headed by Garland, have declined to intervene in state-licensed marijuana markets, the key facts that led to the Supreme Court’s 2005 ruling “no longer apply,” Boies said in a statement Thursday.

“The Supreme Court has since made clear that the federal government lacks the authority to regulate purely intrastate commerce,” Boies said.

“Moreover, the facts on which those precedents are based are no longer true.”

Verano President Darren Weiss said in a statement the company is “prepared to bring this case all the way to the Supreme Court in order to align federal law with how Congress has acted for years.”

While the Biden administration’s push to reschedule marijuana would help solve marijuana operators’ federal tax woes, neither rescheduling nor modest Congressional reforms such as the SAFER Banking Act “solve the fundamental issue,” Weiss added.

“The application of the CSA to lawful state-run cannabis business is an unconstitutional overreach on state sovereignty that has led to decades of harm, failed businesses, lost jobs, and unsafe working conditions.”

Source: https://mjbizdaily.com/marijuana-companies-suing-us-attorney-general-to-overturn-federal-prohibition/

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Alabama to make another attempt Dec. 1 to award medical cannabis licenses

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Alabama regulators are targeting Dec. 1 to award the first batch of medical cannabis business licenses after the agency’s first two attempts were scrapped because of scoring errors and litigation.

The first licenses will be awarded to individual cultivators, delivery providers, processors, dispensaries and state testing labs, according to the Alabama Medical Cannabis Commission (AMCC).

Then, on Dec. 12, the AMCC will award licenses for vertically integrated operations, a designation set primarily for multistate operators.

Licenses are expected to be handed out 28 days after they have been awarded, so MMJ production could begin in early January, according to the Alabama Daily News.

That means MMJ products could be available for patients around early March, an AMCC spokesperson told the media outlet.

Regulators initially awarded 21 business licenses in June, only to void them after applicants alleged inconsistencies with how the applications were scored.

Then, in August, the state awarded 24 different licenses – 19 went to June recipients – only to reverse themselves again and scratch those licenses after spurned applicants filed lawsuits.

A state judge dismissed a lawsuit filed by Chicago-based MSO Verano Holdings Corp., but another lawsuit is pending.

Source: https://mjbizdaily.com/alabama-plans-to-award-medical-cannabis-licenses-dec-1/

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