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SPOTLIGHT ON BUSINESS MAGAZINE • JANUARY 2018
EDITOR Lee Atwater
RESEARCH TEAM Ashley Saint Ashley Tanner EDITORIAL TEAM David MacDonald
DIRECTOR OF CREATIVE & GRAPHIC DESIGN Carmen Fitzpatrick
MANAGING DIRECTOR Stewart Gregg
SOCIAL MEDIA LEAD Calli Gregg
CONTENT AND OPERATIONS DIRECTOR Rod Gregg RESEARCH & SPECIAL PROJECT MANAGER James Oxley
John Allaire Jamie Barrie
CONTENT SERVICES LEAD Cameron Gregg ADMINISTRATOR LEADS Erica Atwater Alia Morash
CONTRIBUTING WRITERS Katie Davis Janice Buckler Denise Alison Jody Euloth Ceiledh Monk Dan Monk
PUBLISHER AIDACA Media
2 018 is off to an exciting start, the stock markets are up, government officials from the United States, Canada and Mexico are in Montreal for another round of NAFTA negotiation talks and the opening ceremonies for the XXIII Winter Olympics in PyeongChang, South Korea are just around the corner. With Canada only months away from legalizing recreational marijuana nationwide, we thought it was only fitting to have a Q&A with one of Canada’s foremost authorities on legal cannabis, Max Zavet, a lawyer and the founder of Emblem Cannabis in Paris, Ontario. As Canada moves closer to becoming the first G7 nation to legalize recre- ational cannabis – a multi- billion-dollar marketplace we learn that Max is well-pre- pared for what is ahead for the company and the industry along with answering ques- tions that are on the minds of so many Canadians. That is why Ken Greer’s attitude is so refreshing, which happens to be a doubly-apt adjective for his line of work. We sit down with Ken and discuss his Halifax-based company BeerTech, which specializes in draught system technologies offering consult- ing, design and installation, cleaning and maintenance, as well as beverage dispens- ing gas services to craft breweries, pubs, and restaurants throughout New Brunswick, Prince Edward Island and Nova Scotia. We also learn that even if you’re not in the beverage industry BeerTech has something for you. Last month we had the pleasure of speaking with Fieldstone Granary’s founder and owner Tony Van Den Tillaart and general manager Paula Siddons. Tony and Paula were more than eager to separate the wheat from the chaff as passionate representatives of British Columbia’s certified organic grain handling facilities. We are quick to find out what motivates the Fieldstone Granary team. It’s their collective belief in the goodness of organics and whole grains. It’s their pride in healthy organic foods grown exclusively in Western Canada. It’s their partnerships with local farmers in British Columbia to grow the best crop on healthy soils for long term sustainability. It’s the knowledge that their market is no longer a niche market and that increasingly informed consumers want their food grown and handled without the use of chemicals, herbicides, pesti- cides or synthetic fertilizers and we are excited to tell their story. Is it just us or are too many cannot people in the business world today?
There is no shortage of tales about way- farers heading up to Canada’s north, looking for a new life adventure. And with nearby diamond and precious metal mining, Yellowknife, Northwest Territories sees its fair share of new faces. The locals will tell you that people come and go, but there are a few constants — it’s very cold much of the year, the Aurora Borealis is stunning and the inhabitants of Canada’s north enjoy a good brew. That is where Fletcher Stevens comes into the picture. Fletcher, who has lived in Yellowknife his entire adult life was building a career as a mechanic for a major car company. He and his wife Miranda were looking to beat the high cost of beer in the Northwest Territories by trying their hand at home brewing. However, this hedge against liquor taxes turned into a full-time career in brewing and Canada’s most northern- most brewery, The NWT Brewing Co. was born. We chat with Fletcher about how the NWT Brewing Co. came about, and the challenges of brewing in Canada’s remote north. We hope that you and your business is off to a great start in 2018 and we would like to thank all those involved with this issue and our readers as we look forward to telling more stories about successful busi- nesses and the people making it happen.
Lee Ann Atwater Editor
279 Gary St, Winnipeg, Manitoba, Canada R3C 1H9 | PO Box 350007 Halifax, Nova Scotia B3M 0G3 P: 204 272 6228 E: info@spotlightonbusinessmagazine.com spotlightonbusinessmagazine.com
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There is no shortage of tales about way- farers heading up to Canada’s north, looking for a new life adventure. And with nearby diamond and precious metal
mining, Yellowknife, Northwest Territories sees its fair share of new faces. The locals will tell you that people come and go, but there are a few constants — it’s very cold much of the year, the Aurora Borealis is stunning, and the inhabitants of Canada’s north enjoy a good brew. Fletcher Stevens has lived in Yellowknife his entire adult life, building a career as a mechanic for a major car company. He and his wife Miranda were looking to beat the high cost of beer in the Northwest Territories by trying their hand at home brewing. However, this hedge against liquor taxes turned into a full-time career in brewing.
The NWT Brewing Co. is the northern most brewery in Canada. They combine Canadian-grown grains with the purest water in the world to create their unique beers, infused with the “can-do, make-do” spirit of the North. Spotlight on Business...
If a picture is worth a thousandwords, a tab label on a culturally-relevant and customer- friendly web page has got to be worth more, right? Head to fieldstoneorganics.ca and you’ll find front and centre – and layered over a flannelled and sun-kissed forearm with an outstretched hand freely grazing the top of a grain crop – a tab that reads Our Dif- ference. Click on that tab and you’ll know straight away what motivates the Fieldstone Granary team. It’s their collective belief in the goodness of organics and whole grains. It’s their pride in healthy organic foods grown exclusively in Western Canada. It’s their partnerships with local farmers in British Columbia to grow the best crop on healthy soils for long term sustainability. It’s the knowledge that their market is no longer a niche market and that increasingly informed consumers want their food grown and handled without the use of chemicals, herbicides, pesticides or synthetic fertilizers. Fieldstone Granary benefits local communities not only in the Okanagan but through- out North America by providing delicious whole grains, legumes, and seeds for bulk, wholesale and retail consumers through their online store. In early December Spotlight on Business had the pleasure of speakingwith FieldstoneGranary’s founder and owner Tony Van Den Tillaart and general manager Paula Siddons. Tony and Paula were more than eager to separate the wheat from the chaff as passionate representatives of...
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03 SPOTLIGHT ON DECEMBER
08 JANUARY INDUSTRY EVENTS
10 SPOTLIGHT ON INDUSTRY 10 STRATIGRO SMALL BUSINESS TIP FOR JANUARY (Don’t) Wait for it 12 EMBLEM CANNABIS T ake the First Step to Better Living 18 WEED MD Dedicated to Client Care 24 MESH MEDIA NETWORK Three Ways to Nurture a Motivated Mindset for Optimal Selling 30 CONTRACTORS’ CORNER How long will the project take & do we need to be home while the work is in progress?
82 I know I’m not the only one who thinks there are too many cannot people in the business world today. I know I’m not the only one who thinks that moxie is in short supply when your business is in a pinch. That’s why Ken Greer’s attitude is so refreshing, which happens to be a doubly-apt adjective for his line of work. “You can put a draft tap anywhere if you really want, it just needs to be properly balanced and cooled behind the seam so that you’re not pouring shaving cream. But yes, you can pop a draft tap onto pretty much anything,” Ken explained .
32 SPOTLIGHT ON BUSINESS 36 CANNERY BREWING
Brewing Great Beer in Wine Country 40 GRAIN BIN BREWING COMPANY Beer of the People 44 FIELDSTONE GRANARY Whole Grains from Field to Fork 50 RED COLLAR BREWING CO Bombs Away! 56 OLD PRAIRIE SENTINEL DISTILLERY Community Spirits 60 NWT BREWING CO. Spirit of the North 68 POSTMARK BREWING A Special Delivery from the West 72 STILL 360 Savouring Life Through Spirits 78 MISPILLION RIVER BREWERY Adventures in Creative Beer 82 SPOTLIGHT ON INNOVATION 82 BEERTECH Draught System Technologies
When you think legal cannabis, you should think Max Zavet. He’s a lawyer and he’s the founder of Emblem Cannabis in Paris, Ontario. To say that Emblem’s approach to medical cannabis is holistic, in every sense of the word, would only begin to pay compliment to Max’s business acumen. As Canada moves closer to becoming the first G7 nation to legalize recreational cannabis – a multi-billion dollar marketplace Max is well-pre...
88 SPOTLIGHT ON HEALTH
88 HOLISTIC HEALTH TIP FOR JANUARY BY JANICE BUCKLER Hypothyroidism- Basal Temperature Test (BTT)
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A IDACA MEDIA understands that small and medium size enterprises and businesses are key to the successful growth of any economy and just as import- ant as big businesses to the global economy as a whole. By putting a spotlight on your business, organization or commu- nity with effective and interactive media and advertising we will help you capture the interest of business leaders and potential clients, giving you an opportunity to promote your brand and grow market share through mobile, online, print and social media support, helping your business connect and stay engaged with your customers.
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T’is the season to reflect on the year that has passed, the great people that we have met and worked with and the amazing stories that we have been able to bring to our readers as we put the spotlight on businesses and the people that make it happen. It is also a time when many businesses are looking to close out their year, while planning strategies and setting goals for 2018. 2017 was an interesting year which saw many new challenges and changes to both business and government on both sides of the border. We, like any other business will learn from 2017 and look ahead to all the potential that the New Year offers.
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CanGift fairs allow you to handle the products you’ve sourced online, build business relationships with new and existing suppliers, and attend seminars and one-on- one consulta- tions with industry experts to increase your professional knowledge. For more information of the event: ht tps: //www.cang i f t .org/ toron - to-gift- fair/en/home/ Follow on Twitter: @CanGift Follow on Facebook: @CanGift
LAS VEGAS MARKET SHOW 2018
January 28 th – February 1 st , 2018
Las Vegas Market – Las Vegas, NV, USA
Since its launch in the Summer of 2005, Las Vegas Market has become the most comprehensive furniture, home décor and gift market in the Western United States! With 4,000+ lines in a world-class destination, Las Vegas Market offers efficient access to furniture, bedding, lighting, flooring, acces- sories and gift resources as well as signature west coast introductions on an easy-to- shop campus at World Market Center.
THE FRANCHISE EXPO – HALIFAX
INTERNATIONAL PRODUCTION & PROCESSING EXPO (IPPE)
January 27 th – 28 th , 2018
Halifax Convention Centre – Halifax, NS, Canada
January 30 th – February 1 st , 2018
Come to Atlantic Canada’s LARGEST “Own Your Own Business” Event! See the most successful franchises + brand new opportunities from every industry. 2 Days Only! Meet Face to Face with proven, money making businesses that are now expanding in the Maritimes and are there to meet new potential owners. This is your only opportunity to meet with the hottest businesses face to face. Ask questions and get the informa- tion you need in a no pressure envi- ronment. For more information of the event: http://www.franchiseshowinfo.com/ halifax/
For more information of the event: https://www.lasvegasmarket.com
Georgia World Congress Center – Atlantic, GA, USA
Follow on Twitter: @LasVegasMarket Follow on Facebook: @lvmarket
The International Production & Pro- cessing Expo is the world’s largest annual poultry, meat and feed industry event of its kind. Awide range of international decision-makers attend this annual event to network and become informed on the latest technological developments and issues facing the industry. The IPPE will bring together more than 1,200 exhibitors and 30,000 visitors from over 129 countries to Atlanta. The trade show focuses on; Innovation - bringing together buyers and sellers of the latest technology of products and services to make your business more successful. Education - learning
TORONTO GIFT FAIR
January 28 th – February 1 st , 2018
The International Centre – Toronto, ON, Canada
Each year, more than 2,500 exhibitors participate in CanGift fairs across Canada displaying hundreds of thou- sands of products from international name brands to unique, local and handmade goods.
Follow on Twitter: @FranchiseExpoCA Follow on Facebook: @NationalFranchiseCan
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SPOTLIGHT ON BUSINESS MAGAZINE • JANUARY 2018
DESIGNCON 2018
from the experts and like businesses. Global Reach - attracting more than 8,000 International visitors from 129 countries, and Networking - meeting new and rekindling old relationships with leaders across the industries. For more information of the event: http://www.ippexpo.org Follow on Twitter: @IPPEexpo Follow on Facebook: @IPPExpo
January 30 th – February 1 st , 2018
The Santa Clara Convention Center – Santa Clara, CA, USA
DesignCon is back in Silicon Valley for its 23rd year! Created by engineers for engineers, DesignCon brings together 5,000 professionals from the high-speed communications and semiconductor communities for three jam- packed days of education and activities. Through an in-depth conference program — curated by a 90-person Technical Program Committee — and expo showcase, this event offers state-of- the-art design methodologies, applications, technologies, and unparalleled networking opportunities.
THE INTERNATIONAL SURFACE EVENT
For more information of the event: http://www.designcon.com/ Follow on Twitter: @UBMDesignCon Follow on Facebook: @DesignCon
January 30 th – February 1 st , 2018
Mandalay Bay Convention Center – Las Vegas, NV, USA
Comprised of three world-class tradeshows: SURFACES, StonExpo/ Marmomac, and Tile Expo events, TISE is THE industry marketplace for floorcovering, stone, and tile industry professionals - offering three impressive days of the newest products, hands-on demos, inspir- ing trends, key manufacturers + industry suppliers, along with unmatched education and network- ing opportunities. For more information of the event: https://www.intlsurfaceevent.com Follow on Twitter: @TISEevents Follow on Facebook: @TISEOffical
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Denise Alison empowers business owners to build relationships and connect with their poten- tial customers on social media, and through live video.
By Denise Alison W elcome to 2018! It’s the beginning of a new year! Like everyone else, I’m sure you are planning and setting goals for 2018. I know I have been! So, what are those goals? The most common (high-level) goals we hear from our clients are: • I want to make more money/increase profits • I want to reach more customers/ grow sales • I want to position my business for an eventual sale (usually in 2-5 years) Great! Knowing what you want to accomplish is an important first step to actually getting there. But, I hate to break this to you, setting the goal is the easy part! Making the same mistakes as last year Too many small business owners set these goals, but don’t have a plan to achieve them. They just go back to
doing things the same way, hoping that their dreams will come true. It sure sim- plifies the annual goal setting process because nothing much changes. What are you waiting for? Don’t let waiting for things to happen become a habit. Are you waiting for your customers to discover you and for your business to make you more money? That magical day where everything changes and you become a sudden success? Or are you waiting for your business to suddenly increase in value and become more attractive to a potential buyer?
Stop waiting now!!!
Waiting is not productive. Waiting is putting control into the hands of others, and YOU should be in control of YOUR BUSINESS!
Your goals aren’t achieved by patience and waiting, they are achieved by you TAKING ACTION to accomplish them.
You need to ask yourself: what steps can I take to get closer to my goals? Each day ask yourself what you can do today to get you closer to your goals. Then do it. How? Not attracting the right customers? Define who your ideal customers are and go out there and find them.
Not making enough profit? Take a close look at your financials and see what changes you can make to put more cash in your pocket.
Thinking of selling your business? Consider what a potential buyer is looking for.
The best way to achieve your goals is by making a plan and writing it down. Now that you have your plan in place, put it into action and make it happen in 2018!
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By Jamie Barrie P rime Minister Justin Trudeau is meeting Canadians face to face holding a series of town hall style public meetings across Canada. In what can only be charac- terized as a vast departure from the Harper era, Trudeau’s public forums are all inclusive. As witnessed at the first event in Lower Sackville NS, there was no pre-registration to identify subversives, questions were not vetted, and the audience was as politically diverse as they get. In a bold move, screaming protesters from outside were permitted into the venue. They were given seats placing them in front of national and regional media in attendance. Trudeau not only acknowledged them for a question, but answered with compassion and respect while standing firm on policy. It’s a new day in Canadian politics. One of the anticipated topics was the legalization of recre- ational marijuana in Canada which under Bill C-45 is sched- uled to takeplace this July. The PrimeMinister was challenged on the government decision to ignore medical advice from the Canadian Medical Association (CMA) that 18 years old is too young to be the minimum age to purchase the drug. The CMA suggests 21-25 years-old as a better limit. The man asking the question suggested doctors believe the brain of an 18-year- old is subject to acute damage from regular marijuana use and that inhaling any smoke is bad for a developing respiratory system. Additionally, the speaker asserted, provinces choosing the lower age will open the doors to some students having the legal right to purchase drugs and increase their prevalence in high schools. The questionmet significant applause. There aremany, includ- ing Liberals, who feel the move is a bad one. The case has not been well explained in the media and Trudeau has been accused of trying to win votes with younger Canadians by legalizing drugs. The PM’s answer on this question appeared to settle the debate once and for all for those in the room that were still questioning the wisdom of the initiative. Shockingly Trudeau said he agreed with all the scientific evidence the gentleman quoted from the CMA and that he too wants to keep marijuana out of the hands of young people. He then pointed out as a society we have failed to do this emphasizing that marijuana is in our schools now and young people have easy access to it. Trudeau noted that his information suggests it is easier for young people to get their hands on “pot” than it is beer. He noted beer requires an ID to purchase because there is no black market like the one that exists for marijuana.
people because it would be too high to disrupt what is already happening with people younger than that. His theory is that “pushers” don’t ask for ID to sell and they will do business with just about anyone. By lowering the legal age, you eliminate the number of potential customers who rely on black market drugs as their supply. The PM believes the less sources there are to buy black market marijuana, the harder it will be for young people to purchase it illegally. Trudeau went on to say that despite what people think and hear he is personally not a fan of marijuana or legalizing it. Jokingly he added he is not a fan of coffee either but banning it would get him kicked out of Ottawa within a month. He said he recognizes the need to try something different in protecting the very young from getting their hands-on drugs. While at the same time ensuring that those who do use marijuana have assurances what they are smoking is safe and coming from a government controlled source. The Prime Minister stated regulation like alcohol is a far better model than ignoring what is happening today with marijua- na. Black market sellers dealing to anyone and funnelling all the profits to organized crime needs to end in his opinion. According to Trudeau the illegal marijuana trade is a multi-bil- lion- dollar cash cow for crime groups in Canada. In the new regulatory model, the federal and provincial governments will receive the profits versus street gangs, bikers and other orga- nized crime groups.
The PM added using a minimum age of 21 or higher would have no impact on keeping marijuana away from young
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By David MacDonald M ax, I know the readers would love to hear about you and how Emblem Cannabis came to be in a marketplace with a notorious amount of red and yellow tape which likely hampered your every move. MZ: Well, cannabis is something that has been a part of my life since my late teens, late high school, early university and I knew the medical benefits back then. I saw how it helped people, how people who consumed cannabis socially were better off than people who were drinking socially. I’ve always been familiar with it on that level and I’ve never seen it as a social ill, I’ve never been quite able to understand the stigma attached to it. After university I was practising law, but I’ve always been very entrepreneurial. I founded a law firm with a partner about a year after practising – I still have the law firm, it’s at Avenue Road & Eglington in Midtown Toronto. We were dealing in real estate and condo development and a friend of mine came to me one day and told me that Health Canada was changing the rules in respect to how medical cannabis is going to be cultivated and distributed. That obviously piqued my interest. I knew what the market demand for cannabis was and hearing how profitable it was in certain jurisdictions in the United States and around the world and I couldn’t resist the opportunity. Having my own practice – we had grown to 10 lawyers and over 30 employ- ees at that point – I was able to step back and start focusing on getting a license, which is a very difficult road. That took a number of years. It was a journey that started back in 2012 and I was able to submit the application in early 2013. Here we are in 2017 and it’s still a journey. Was your background in real estate law helpful when you were looking for a home for Emblem Cannabis? MZ: For sure. The first transaction for the facility we’re in today was done through my law firm. I had a lot of familiarity with zoning and things like that. I knew I wanted to be in a municipality where zoning would be easy to acquire where the bureaucracy of land planning wouldn’t be too cumber- some.
When you think legal cannabis, you should think Max Zavet. He’s a lawyer and he’s the founder of Emblem Cannabis in Paris, Ontario. To say that Emblem’s approach to medical cannabis is holistic, in every sense of the word, would only begin to pay compliment to Max’s business acumen. As Canada moves closer to becoming the first G7 nation to legalize recreational cannabis – a multi-billion dollar marketplace Max is well-prepared for – questions about its medicinal efficacy and its social cost continue to rankle a conversation that’s long been wrapped- up in the minds of so many. There are more than 200,000 registered medical cannabis users in Canada and 80 licensed producers, or growers, coast-to- coast. But there are few better qualified to represent the medical cannabis industry – and cannabis as a whole – moving forward than Max. He sifts through dogma and political rhetoric with a precision you’d expect from a clerk of the court and he does it all from a perspective that needs to be a part of a conversation where the i’s need to be dotted and the t’s crossed before Canada Day 2018. And One of Emblem’s mantras “Cultivated with love” is the perfect opening salvo to that conversation. Each of Emblem’s 18 strains of dried flower, and their four cannabis oil products range in potency on two different and important scales: THC and CBD. THC, or tetrahydrocannabinol, is the principal psychoactive constituent of cannabis – the kick, as it were. CBD, or cannabidiol, is the other major cannabinoid found in the cannabis plant and is typically used to treat inflammation, epilepsy, and pain associated with diseases like multiple sclerosis. Emblem’s Aqua Flora: Shark Shock CBD has a CBD yield of 9.2 percent by weight with a much lower THC reading of 4.1. Artemis Maximus: Quantum Kush, on the other hand, has a THC yield of 22.6 and a CBD reading of 0.1. Both strains and every strain in between are grown and sold with a plethora of patients in mind. Max recommends that patients “track their symptoms and dosages daily” using Strainprint, a third-party personalized app for medical cannabis patients. Strainprint is just one example of Emblem’s holistic approach to medical cannabis. When Max and Emblem’s marketing manager Jordan Rodness spoke with Spotlight on Business in November all was revealed.
My past experience also really helped with Health Canada.
Navigating through the levels of government officials was something I knew how to deal with. If there are problems with the applications oftentimes it’s just a matter of interpretation and my legal background definitely helped with those sorts of issues.
We were at one point stuck on a particular issue. Our first
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But the big landmark for medical cannabis patients in this country was R v Smith. Basically, they were then allowed to grow their own or designate a grower to grow on their behalf. But there was no commercial system; there had to be a direct relationship between grower and consumer where the grower had to be compensated for their overhead – and you know how that could work. Through the courts, these growers were given permission to grow for up-to four people and the plant counts were pretty massive for pre- scriptions, as much as 150 grams a day. That equated to something like 30 grams per plant, I believe. The point is, that program grew exponentially. Unfortunately, in some cases, much of the product wasn’t going to the designat- ed patient and it was flooding the black market and illegal dispensaries, the illegal market – the gray market we’ll call it because it was being cultivated under a legal guise but then distributed illegally. Law enforcement has been shutting down these dispensaries. What’s interesting is that there are now cases in front of the court in respect to “medical” dispensaries. The federal government is still being taken to task on its responses to the court’s rulings in respect to distribution, access, and product availability. How does this fence sitting impact your long-term planning? MZ: At Emblem we have three main verticals and I think each of them is well-poised to meet the market demand that’s coming, even though that’s evolving all the time. On the one hand we have our pharmaceutical division that’s run by John Stewart who is the former president and CEO of Purdue Pharma in both Canada and the US. He’s looking at dosages and cannabis medicines that aren’t dried flower. For example, we have a patent pending for a slow release tablet. In respect to those more advanced formulations and drug-like medications, they’re far better choices in many circumstances to opiates and other prescription drugs out there. It will take a little bit of time for regulatory approval after clinical observations and trials, but it is one side of this medical market that the black market will have a hard time infiltrating. In the long term that side of our business looks really promising. It’s not something we’ll have to adjust based on uncertainty with the illegal market. “My past experience also really helped with Health Canada. Navigating through the levels of government officials was something I knew how to deal with.”
application was for a different site and we changed course because we couldn’t get the proper electricity for that site and Health Canada wanted to drop our application. That would normally mean starting again from the back of the line but I was able to argue that our licensing process should proceed with the new site – and I won that argument. There are definitely times where I was in a good position to manoeuvre around the administrative hurdles that can get in the way for any entrepreneur. “I’ve always been familiar with it on that level and I’ve never seen it as a social ill, I’ve never been quite able to understand the stigma attached to it.” What was the state of the medical cannabis industry prior to the regulatory changes in 2012 and how has the industry changed since becoming a more open market? MZ: Medical cannabis has been legal in Canada since 2001.
Another part of our business is growing high quality premium flower. The evolving recreational market is some-
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of these plants? MZ: The growing process is an interesting one – it has a lot of nuances. I’m not a trained grower but I know process at a very high level. We use skilled labour, people coming from horticulture and the food industry and people coming with pharma experience. It’s about quality assurance. We also have a lot of people who have science and lab back- grounds. There is a lot of science that goes into growing the optimal plant for whatever your needs are. You need to know about specific traits and then the necessary and pertinent details on theprocessing side for that plant type. It goes beyond the growth stage, too. We’re talking curing and packaging and then on the pharma side the extracting of the cannabis plant and then doing further refinement like specific distillation on cannabinoids and terpenes. It gets quite technical. We also have staff that take care of sanitation and support work. JR: There are also programs being introduced at a number of colleges and universities in Ontario particularly that focus on the cultivation and processing of cannabis. I know Niagara College has announced a horticulture program that focuses specifically on cannabis; Durham College, as
thing we must consider while we’re thinking about the expansion of our current facility. With the backdrop of the illegal market – because it’s still going to be around for the foreseeable future – I think there will be more pressure on the price in respect to licensed producers. We’d have to produce at a lower cost and produce higher volumes to meet the objectives of the government (which is to keep prices to 10 dollars a gram). There will always be options on the black market and the reputation of government stores won’t help the matter. I understand that expansion is in your future, Max. MZ: We originally acquired 80 acres in Paris, Ontario and we’re looking at expansion at that site. Our current facility is about 30,000 square feet of space between the grow space and admin and that facility will be expanding to about 60,000 square feet with more advanced lab space and materials handling – with very high indoor production capability as well. Who’s behind the research, the care, and the cultivation It will take a while for the legalized marketplace to develop.
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well. It’s an educational angle that a lot of the more pro- gressive schools are taking.
and a brand that connects with its consumers. We have the best-rated customer service teams as evidenced by them winning the Canadian Cannabis Award for Top LP Customer Service this past December – and we provide gifts with pur- chases. We want to build brand loyalty, customer loyalty because at the end of day it comes down to word of mouth given the restrictions on publishing. The customer is the key influencer. JR: Health Canada has given cannabis companies a pretty well-defined box that we have to play in. It’s more or less the harsher aspects of the pharmaceutical, tobacco, and alcohol restrictions all rolled into one. We’re building a brand that stands for something more than just being a cannabis producer. We’re focusing on the wellness aspect. We’re saying that cannabis can be one tool in the tool kit people use to maintain a healthy and active lifestyle. Getting behind important causes like fundraising cam- paigns for certain conditions that cannabis can be benefi- cial in treating or managing is a major part of our branding process. So much of what we’re focusing on right now is education-based and it’s going to be that way for the fore- seeable future. The market is largely naïve about so many aspects of medicinal and recreational cannabis. We’re going to champion a lot of causes that shed light on it’s efficacy. What would you say directly to potential patients and customers guys? MZ: The Emblem experience. We’re all about caring for our clients, our customers, and making sure they’re going to have the best experience possible from calling one of our sales reps to opening the package. We’re going to be as transparent with you as possible. Cannabis is some- thing that people need to have the right information about because everyone’s experience is a little bit different; everyone reacts differently. You have to consider the strain and how you’re consuming it. Is it oil? Are you vapouriz- ing or ingesting it? If you have a caring team behind you it makes all the difference. JR: People have a misconception that everyone smoking a joint is flying, that they’re woozy and that’s just not the case. CBD has medicinal effects and benefits for people suffering from pain, mental illness, anxiety, and all sorts of other health conditions. That’s a big part of my mission at Emblem: to educate. You can’t judge a book by its cover. The first rule of cannabis marketing is Don’t talk about cannabis.
These students who are already there to learn about hor- ticulture and who have interest in the cannabis space will benefit from programs like this, from teachers with years of growing experience because these schools are adopting such a progressive outlook. I’m sure many readers have pre-conceived notions about the company culture at a medical cannabis operation, Max. Care to either verify or divert their imaginings? MZ : We’re leaders in marketing and branding and we have great relationships with people in the industry, in govern- ment, and on the legal side. It’s a business at the end of the day so the usual stressors are there but everyone from the growers to the executives want Emblem to be a leader in all categories and spaces. We don’t have to be the biggest, but we’ve got to be the smartest. “The evolving recreational market is something we have to consider while we’re thinking about the expansion of our current facility.” I’ve got to say that your “Let’s be buds” marketing slogan is a stroke of genius. I’m sure you and Jordan have had to dance the dance that Health Canada has laid out for the cannabis industry when it comes to mar- keting, Max. MZ: Marketing in this industry is difficult and I know Jordan can speak to this a lot more colourfully than I can. Health Canada is, of course, watching us and there are a lot of advertising restrictions, especially for recreational cannabis. Our advertising is going to be akin to tobacco advertising so promoting the use of cannabis is a big no-no. So, you’ve got to ask how you go about doing that effec- tively. We can’t even show pictures of the plant or the bud, so we’re limited to showing people having a good time without any product in the picture. It’s quite restrictive and what we need to do is be sort of cheeky while at the same time promote ourselves as an all-around wellness brand
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JANUARY 2018 • SPOTLIGHT ON BUSINESS MAGAZINE
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SPOTLIGHT ON BUSINESS MAGAZINE • JANUARY 2018
Its ticker symbol on the TSX is WMD. Its CEO Bruce Dawson-Scully appeared on BNN moments after it started trading publicly in April 2017. Its niche is medical cannabis for seniors. And it’s a Health Canada-licensed producer (LP) under the Access to Cannabis for Medical Purposes Regulations (ACMPR), a part of the 2009 Legislation Revision and Consolidation Act. Weed MD Rx Inc. is one of 45 licensed producers in Ontario and one of 80 in Canada. What sets Weed MD apart from other medical cannabis producers across The Great White North is its foundation. “I come from a family business,” Bruce explained. “I have spent most of my career operating, managing, and developing long-term care residences and retirement homes. I am third generation in that sector, actually. As a family we’ve dedicated most of the years of our lives taking care of seniors and we really helped pioneer that industry. We developed a really great housing program for seniors because we understood the market. Over the years we’ve established a great sense of how to build quality programs by focusing on enhancing the quality of life for seniors and that’s really the same mantra on which I’ve built Weed MD.” Bruce’s family recipe business plan is working. Since growing and storing its first plants in early 2016, Weed MD has gone from operating solely in its 27,000 square foot greenhouse in Aylmer, Ontario – with an annual yield of 1600 kilograms of dried cannabis annually – to an expanded operation that covers an approximate 220 000 square feet in a massive Strathroy, Ontario greenhouse – with an anticipated annual yield of 20 tonnes. “And that’s just the first phase of our production in our expansion plan. In totality we will have over 1 000 000 square foot of production space operating at our farm,” Bruce said. By David MacDonald B ruce, 20 tonnes of annual production from one of the 80 licensed ACMPR producers seems like a big piece of the pie – but I don’t have much in the way of a reference or comparison considering the early stage of your industry. BD-S: That’s significant. That certainly pushes us into the
realm of a larger producer in this industry and it gives us a lot of latitude for growth and expansion. We found amazing partners who had a greenhouse in Strathroy that’s about 620 000 square feet – so close to 14 acres of greenhouse. In addition, we are currently building an additional 440,000 square feet. Our first phase of that will be in five acres of production or approximately 220 000 square feet. We will be producing about 20 tonnes of cannabis during that first phase. First and foremost, we want to ensure that we are always able to provide for the needs for our patients – and we do have a lot of patients. Outside of our seniors market that we take care of cur- rently, we’re north of 1200 patients that we are caring for right now and growing every day.. So, it is a lot but in the industry as a whole right now there seems to be a shortage of cannabis. A lot of LPs are expanding their operations to be able to accommodate not only the medical market but also in anticipation of accommodating the adult recre- ational market that’s slated for summer 2018. So we want to make sure that number one we can provide for our medical prescriptions for our patients. That being said, we’re also excited to expand and participate in the adult recreational market as well. One of the big factors that made me really dig-in to this industry was the issuesissues, so many seniors deal with because of polypharmacy. There are seniors in long-term care who take between 10 and 14 prescriptions per day on average. Many of these seniors look for ways to manage
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that on their own and cannabis has really gained a lot of traction in larger discussions about pain management, for instance. “That’s significant. That certainly pushes us into the realm of a larger producer in this industry and it gives us a lot of latitude for growth and expansion.” Anecdotal evidence shows that the use of cannabis can reduce the use of opioids, reduce the use of anti-psycho- tropic drugs, treat depression, and increase appetite. All of the different pharmaceuticals we’re prescribing are creating negative interactions and setting limitations rather than managing symptoms and treating people like cannabis can. I understand that Weed MD has become a licensed producer and retailer of cannabis oil as well, Bruce. BD-S: We just got our sales licence for cannabis oil in July and I can imagine as we move forward that it’s a part of this business that will grow exponentially. For a lot of patients, and that includes seniors, they’d like to use the oil instead of smoking cannabis.
Getting that sales licence for oil is a huge milestone for us.
For the seniors market, our goal was always to move toward extracting the medicinal oils from the cannabis plant. To be able to provide specialty oils means more patients, more seniors, will experience the benefits of medical cannabis. Between growing over 60 different strains of dried cannabis, harvesting those plants and now extracting medicinal oils, you must have a very diverse team at Weed MD. BD-S: Absolutely. We have grown our team in the last year from about six people to 60 – and I suspect by July 2018,
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by the time we roll out the recreational side of the business, our expansion plan will include well-north of 120 people. SoSo, we’ve really grown into things and we certainly do have a diverse group. We have people, scientists, who do specialize specifically in the extraction of cannabis oils. We also have horticultur- ists, growers, who specialize in tailoring our crops for our patients. “All of the different pharmaceuticals we’re prescribing are creating negative interactions and setting limitations rather than managing symptoms and treating people like cannabis can.”
We are currently growing a number of very diverse strains that we are very proud of. I think one thing to take real note of is that there are two cannabinoids that are really quantified in our testing: THC and CBD. THC gives you the high and CBD covers many of the medical benefits you hear about: it’s an anti-inflammatory and it helps manage anxiety, for example. So we have plants that actually have ranges in the body of the plant that affect each of those We look good together. ®
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JANUARY 2018 • SPOTLIGHT ON BUSINESS MAGAZINE
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user-friendly web presence in your industry? BD-S: It’s like any other company these days in that regard. It was important. But for us in particular and this industry in particular, it’s probably one of the most important pieces that we have to offer our patients. We have a very limited ability to advertise for anything and in addition to that we have a very limited ability to make any claims about effica- cyefficacy, so we use our website as a means for patients to login and talk about how they are being supported by Weed MD. We have a client portal, or a patient portal, where they can come on and see what strains we’re offering, what oils we’re offering, and what products we’re offering. It is a very important tool for our patients right now because we don’t have a retail storefront and all of our business is done online – like every other licensed producer in Canada, currently. Anything that is not online right now in Canada is not legal for the most part, in terms of its distribution of cannabis – that’s the bottom line. There are many different dispensaries that have been around for many, many, many years treating patients – and I know quite a few of them – and unfortunatelyunfortunately, they’re not covered under the terms of the ACMPR and we can’t sell them products. I think there is a lot of confusion around how dispensaries work and how they deal with patients and the product that they’re providing patients. That’s notwithstanding the fact that they have many, many great people who understand the industry and some who pioneered it from the very beginning. Some people will go get a prescription from a doctor and the doctor will give them literature and direct them to the list of LPs, like us, on the Health Canada website and they’ll say, “No, I’ll just go to the dispensary two doors down from where I live. They have got everything that I need and they can just take my prescription and sign me up.” I think a lot of patients don’t understand the legal scope of the industry. A lot of these places are very informative, I’m not saying they have bad products, I just don’t know how they test for what they provide their patients and I don’t know where the product comes from. Nobody does, except for the dispen- sary. Here, at Weed MD, everything we do is regulated and fully transparent. How we grow our plants and how we approve our product is around traceability from seed to sale. We know where every plant has been and what has touched our plants. Every- thing is on camera and everything has been tested from the beginning to the end –and in between. So with the whole battery of quality assurance and regular inspection by Health Canada, patients can enjoy our cannabis with peace of mind. I understand that the LCBO, the Liquor Control Board of Ontario, will be the sole retailers of recreational cannabis come July 2018. As one of the larger LPs and given your potential for further expansion in your new
profiles. We have plants for example that are high THC but little CBD and then we have plants that have high CBD with little THC and there’s some that are one-to- one. We are constantly looking at strain development; we are constantly looking at better ways to improve the quality of our products and that’s because we are really listening to our patients. We have a team that really cares about what they do and who they’re doing it for. I’m really proud of this team. We have invested a lot of time bringing together the best in-class from our scientists to our cultivation team and growers, our distributors, and our customer service team. I hear the accolades all the time. We get so much positive feedback about how we treat our patients and how great the customer support and customer service experience is. It certainly makes me very proud to be part of this team. Are there practicum experiences for horticulture students at Weed MD, Bruce? I understand that college campuses across Canada are getting their students ready for opportunities in the cannabis industry. BD-S: We have a great relationship with the University of Guelph and we have the opportunity to bring-in interns regularly. It’s an emerging industry and young people are really answering the call. We have students working with us right now and we’ve hired people after graduation. “We are constantly looking at strain development; we are constantly looking at better ways to improve the quality of our products and that’s because we are really listening to our patients.” There are so many fantastic jobs in this business and opportunities at so many different levels of this industry. I think that the colleges and the universities that are really paying attention are putting together wonderful programs and we’re collaborating with them whenever we have the opportunity. Across Canada there is going to be a huge emergence of a need for people to come in and work in this industry. It is exciting times and anyone who comes into this industry right now in its infancy stages is going to get to take advantage of so many more opportunities.
We’re just scratching the surface.
The website is a patient’s or prospective patient’s dream come true. All the pertinent registration documents are available for print, including instructional medical documents to show to your doctor. How important was establishing such an informative, transparent, and
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SPOTLIGHT ON BUSINESS MAGAZINE • JANUARY 2018
620,000 square feet greenhouse in Strathroy, have you been contacted by the LCBO? BD-S: We have initiated the discussion and we’re current- ly having meetings with various agencies from different provinces across Canada. Each province has a different model for distribution and it is still being ironed out across the map. The LCBO model is probably one of the more advanced and they’ve really played a part in the regulations that have taken shape as they’re set to roll out in 40 stores across Ontario. “We have a client portal, or a patient portal, where they can come on and see what strains we’re offering, what oils we’re offering, and what products we’re offering.” I think they have a huge job ahead of them, though. So it’s not so onerous on the province, a single distributor, a sort of hybrid provincial-plus- private retail model might be required to meet the demand. Either way, we’re ready. Does your TSX stature help with negotiations with the LCBO and your standing as a trusted Licensed Producer of medical cannabis? BD-S: Definitely. Last year in April, we did go public, which was another big milestone for us. We are excited to go into the market. We have been support- ed by shareholders in the market and there is a tremendous amount of value and opportunity for shareholders in this industry – especially in our company. It was a huge day for us being on the market with industry colleagues for the first time. There is a little bit of speculation out there in terms of where the industry as whole is headed but the good news is that I think it’s all heading in the right direction. We are sitting here on deck and we are ready for it, either way. We will continue to listen to our patients, our customers, and we are excited about the growth of Weed MD and the ability to continue to grow into the different markets with the cannabis industry.
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We are pioneers in this industry and we are really excited about the future of cannabis in Canada and not only from a medical perspective but also from an adult recreational use perspective. I want people to know that we value our patients and we value our customers immensely and we will be listening to them and looking for ways to continue to improve all of our processes. “So with the whole battery of quality assurance and regular inspection by Health Canada, patients can enjoy our cannabis with peace of mind.”
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