California’s cannabis testing regulations became effective July 1, 2018, increasing the cannabis test thresholds to levels never before experienced in the California market. Most California producers believed the state would, yet again, extend the regulatory implementation period another six months. Grupo Flor however, took a contrary view. We organized our processes and lab partner relationships so that our in-house flower and concentrates brand, Smoke Stacks™, would hit shelves July 1, 2018 being fully tested, labeled and packaged in full compliance with the law.
The July 1, 2018 implementation impact was massive and sudden. Whole swaths of California wholesale supply chain producers were unable to meet the new test standards and Facebook and Instagram posts went viral of empty dispensary shelves across the state. One winner emerged: Smoke Stacks™.
While certainly exciting in terms of validating and testing our products and business processes, the most thrilling aspects has been relationship development and the acquisition of market share. The cherry on top is the great response to the quality of our product from shops throughout the state.
While betting on July’s implementation and preparing to mobilize may not seem genius, consider that Grupo Flor’s distribution company had to source goods from a small and diverse archipelago of farms that were themselves producing compliant cannabis.
Quite a feat in the absence of a robust and standard supply chain.