Equity and Growth in the Cannabis Industry: Insights from a GMP Webinar

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On November 20, 2024, the GMP Collective presented the 27th installment in their monthly webinar series When Things Go Wrong. This episode titled, “Cannabis Cornucopia: Cultivating Abundance through Collaboration and Equity” featured guest speakers Ernest Toney, founder of BIPOCann and Dominique Mendiola, Senior Director at Colorado's Marijuana Enforcement Division & Natural Medicine Division and President of the Cannabis Regulators Association (CANNRA), and was moderated by Bethany Moore, Director of Content Strategy and Market Growth at the GMP Collective.

The theme of this webinar was the importance of collaboration, support networks, and supporting minority and underserved entrepreneurs in the industry for the benefit of all stakeholders. The first discussion point in the webinar focused on social equity and the challenges that social equity operators face. Ernest Toney defined social equity as “creating a process that is focused on fairness, justice, and giving people equitable access to opportunities to participate in the industry. That can look like policies that create pathways for entrepreneurs to participate and helping those communities and individuals, who were most negatively impact impacted [by prohibition], have an opportunity to participate.” Dominique Mendiola also noted the impact of creating deliberate discussions on progressing social equity opportunities beyond licensing eligibility and how people can access the resources available. She also noted the value of exploring learning opportunities and ways to increase stakeholder engagement and collaboration, specifically noting a social equity workshop with Mike Lomuto, Board Chair of the Minority Cannabis Business Association (MCBA). David Vaillencourt, CEO and founder of the GMP Collective, noted the ASTM International D37 subcommittee on diversity, equity, and inclusion as part an example of how to create a framework for social equity in the industry.

The next topic for discussion addressed how operators, regulators, and lawmakers could come together to advocate for improvement and change. Toney pointed out that in the federal rescheduling deliberations with the DEA, out of all who were selected to participate and provide feedback in the rescheduling discussion, there was no representation from a minority-focused organization. He stated, “If you don't have a voice from the people in the communities that have been most negatively impacted at the federal level, then we are intentionally repeating the same mistakes that got us to where we were in the first place. That's something I would like to see change.” Mendiola elaborated on regulators contributing to conversations that require collaboration. “We want a seat at the table to support the conversation around changes that we may be responsible for implementing,” she explained. “We focus on public health and safety, and that's just not limited to consumers, but also occupational safety and community safety. Those are areas that we want to make sure that we continue to have authority to respond to quickly, to maintain the integrity of our framework and continue to progress things forward in a really meaningful and productive way, and that requires collaboration with all voices.” Feedback from operators is also crucial for adapting to the constant changes in the industry, she added. Vaillencourt recommended that all stakeholders make data-driven decisions and engage early and often in policymaking decisions.

The panelists next discussed real-life examples of opportunities to share supportive programs. Toney discussed a mentorship program between the state of Colorado and BIPOCANN to offer grants to social equity applicators and guided structure to support the development of their business. He added, “I love the idea of creating ecosystems that provide accessible tools, knowledge, and resources, because at the end, it's going to help everybody win. What comes out of that is data. Now we can say, ‘these are the direct impacts of how those dollars were used, the real impacts of offering these programs and resources to boost businesses.’ You can take that back to regulators and other operators, and say, ‘this is an investment that you should continue to work on.’” He also suggested creating more pathways, such as scholarships, for more people to attend cannabis conferences as a way to promote the sharing of resources and knowledge. Mendiola explained examples of regulators providing proactive ways to support compliance through public-facing resources, education, and community outreach.

The next discussion topic focused on look at strategies for growth and how to reframe challenges as opportunities for collective success. Toney mentioned initiatives from the MCBA engaging with communities across the country and explained why businesses should be incorporating collaboration into their long-term goals for the future. Mendiola explained how CANNRA’s External Stakeholder Meetings bring many people together for tough yet valuable conversations where they can learn from one another. She also noted the importance of regulators continually reflecting on their requirements and ensuring that those rules are up-to-date and streamlined. Vaillencourt noted the importance of stakeholders realizing that they do not operate in silos: “It's about learning and sharing information. That's the only way we can move forward. If you take anything away from this today, it's to be willing to have hard conversations, ask questions, and have an open mind.”

Watch the full recording of this episode here.