WASHINGTON’S TOP PRE-ROLL BRAND SAINTS PARTNERS WITH VERTICAL TO BRING ARTISAN CANNABIS TO CALIFORNIA

Excited to share our newest Vertical brand partner for California… Saint’s from Washington State – check it out

Saint’s Will Curate It’s California Only Collection From The Best Craft Cannabis Producers Throughout The State

From Washington to California

Sept. 19, 2018

Award-winning Saints Joints has forged a strategic alliance with Vertical Companies to bring its innovative pre-rolls to the rapidly growing legal California cannabis market.

Based out of the city of Seattle, Saints Joints has collaborated with artists ranging in styles from Street Graffiti to Rock Poster art. They have released over 30 different box designs and will be focused on capturing the emerging artisanal market. Sold as singles or five-packs, hand-selected pre-rolls come in a variety of indicas, sativas and hybrids, including the Artist’s Series Pack, a five joint multi-strain sampler collection. Like the Saints namesake, Saints have been active in the arts community and believes in supporting these communities and giving back. Saints supports the arts by sponsoring concerts and with the support of Gold Leaf gardens and our retail partners have raised money for Equal Rights Washington. Saints will look for similar giveback opportunities in the California market.

Saints artists have included Jeremy Fish (famous for his work with Upper Playground), David D’ Andrea, AO Hamer, Jimbo Phillips (Santa Cruz Skateboards) and Skinner. Vertical uses a combination of creativity and consumer insights, to make their brands stand out from the crowd with marketing campaigns to match. Each box has become collector’s items and are traded amongst Saints and design fans. Together, the two companies will focus on quality cannabis and artistic packaging to not only create the perfect joint but create an all-encompassing and iconic experience for the legal market.

Saints owner Lawrence Perrigo is from Northern California, and excited to bring the gritty street brand home to where it was created in his experiences growing up Skateboarding the streets of Sacramento and San Francisco.

“I’m truly excited to bring Saints back to my home state of California!” enthuses Perrigo. “I know California consumers will love the artisanal boxes and the attention to detail and the quality we guarantee.”

Saints chose to collaborate with Vertical because of their business model, which is patterned after the large-scale wine, spirits, and beer distribution businesses that Vertical’s team has created.

“Saint’s has built a hip iconic brand by bringing out the best artisan expressions in Washington state. This is exactly the kind partner we look for to bring to our markets.  I couldn’t be more excited to bring Saints to the people of California!” said J. Smoke Wallin, President of Vertical.

About Saints Joints

Saints Joints was founded in the Seattle area by members of the Seattle Medical Cannabis community in 2015. Saints are dedicated to making the highest quality cannabis products using only natural organic ingredients and practices. Saints have released 30 different box designs and variants, and have been included in Entrepreneur’s Cannabis Top 100.

https://www.saintsjoints.com

About Vertical

Vertical is among the first and largest vertically integrated companies in the legal cannabis industry. It has operations in AZ, KY, and CA, combined with strategic partnerships in OH and additional markets, position it well to take advantage of the legalization and normalization of cannabis globally. Vertical’s brands cover all aspects of form factor and demographic.  Vertical is led by an executive team of entrepreneurs and business leaders from the alcohol beverage, agriculture, CPG, distribution, entertainment, food, healthcare, and medical industries.

Media Contacts

Vertical:

Jon Lindsay Phillips

RLMpr

646-828-8566

vertical@RLMPR.com

 

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CNBC’s Fast Money with Smoke Wallin re Branding Cannabis, Wine & Spirits and Market Observations

Thanks to CNBC and the Fast Money crew for a fun interview on the state of the cannabis industry.

Cannabis industry exploding with growth here, says top pot exec

The cannabis business is growing like a weed, even as pot stocks see wild swings. With Smoke Wallin, Vertical Companies, CNBC’s Scott Wapner and the Fast Money traders, Pete Najarian, Tim Seymour, Karen Finerman and Guy Adami…

Smoke Wallin on CNBC’s Fast Money

A few shots from the day at CNBC:
 

 

 

 

PORTLAND-BASED FORM FACTORY INC. FOODS PARTNERS WITH VERTICAL COMPANIES TO BRING INFUSED PRODUCTS TO VAST CALIFORNIA CANNABIS MARKET

Pleased to share our new partnership with Form Factory Inc. Foods!  Exciting times!

PORTLAND-BASED FORM FACTORY INC. FOODS PARTNERS WITH VERTICAL COMPANIES TO BRING INFUSED PRODUCTS TO VAST CALIFORNIA CANNABIS MARKET 

Form Factory Inc. to Build Full Production Facility at Vertical’s Needles Campus To Produce a Wide Range of Edibles

Portland, OR – August 6, 2018 – Portland-based cannabis products co-packer Gruner Apfel, now known as “Form Factory Inc.,” and Vertical Companies of Agoura Hills, CA, today announced a joint partnership where Form Factory Inc. is scheduled to build a full production facility at Vertical Companies’ licensed Needles, CA, campus to co-pack an array of new infused products for the California medical and adult recreational cannabis market.

The facility is the first California Form Factory Inc. co-packing facility to open under its Form Factory Inc. partnership with MacArthur Capital.

“I met the Vertical principals through YPO, and their experience from food and beverage is very strong,” said Todd Boren, MacArthur Capital Managing Partner. “It’s a tremendous partnership that will enable us to expand throughout California.”

Form Factory will manufacture the branded cannabis edibles for the California market. Vertical cultivation and extraction will provide raw cannabis ingredients, and Vertical distribution will bring these products to licensed retailers throughout the state.

“Form Factory brings deep expertise in the manufacture of edible products—a strong management team, a focus on quality, and a relentless pursuit of delivering a safe and predictable consumer experience,” explained Vertical President J. Smoke Wallin. “These qualities are what we look for to bring a broad array of the highest quality cannabis products to our markets. It’s the perfect addition to our rapidly expanding BCAA-licensed Needles, CA, operations.”

Led by food and beverage industry veteran Tony Bash, former VP of Sales for innovative food, beverage, and spirits giant LiDestri, Form Factory Inc. Foods is the first food and beverage packing company licensed by the Oregon Liquor Control Commission (OLCC)’s Recreational Cannabis Division. The company is currently packing products for a rapidly expanding list of edibles, beverage, and topical brands.

 

About Form Factory Inc. Foods

Form Factory Inc. Foods is the first Oregon-based company licensed by the OLCC’s Recreational Marijuana Program to pack and bottle cannabis-based food and beverages. The company covers all aspects of production, from concept to final execution, using modern equipment, professional packaging, and decades of experience in the industry. It is Form Factory Inc. Foods’ mission to package and bottle the healthiest, freshest products for the cannabis food and beverage industry.

 

About Vertical™

Vertical is among the first and largest vertically integrated companies in the legal medical cannabis industry. It has operations in AZ, KY, and CA, combined with strategic partnerships in OH and additional markets which position it well to take advantage of the legalization and normalization of cannabis globally. Vertical is led by an executive team of entrepreneurs and business leaders from the alcohol beverage, agriculture, CPG, distribution, entertainment, food, healthcare, and medical industries.

Tapping the Booze Business

May, 2018

Tapping the Booze Business

Hemp, CBD and extraction companies can crack the infused alcoholic beverage market but must navigate a regulatory thicket

By Vicky Uhland

When Prohibition was repealed in 1933, small, local brewers and distillers were the first to get back into the alcohol business. Many either grew into national brands or were snapped up by larger companies looking to expand.

Today, the same scenario is occurring with beer, wine and spirits infused with hempseed oil, cannabidiol or cannabis terpenes. Colorado-based New Belgium Brewing, for example, recently unveiled a hemp beer, while California-based Lagunitas Brewing last year offered a brew infused with cannabis terpenes.

“We’re in a unique moment in time. There are no big hemp or CBD alcohol brands yet, so there’s a window – maybe for the next three to five years – to establish a brand,” said Smoke Wallin, chief marketing officer and president of distribution for Vertical, a company in Agoura Hills, California, that is developing a CBD oil that can be infused into alcohol.

Some big companies are wasting no time, especially with Canada poised to legalize recreational marijuana. Last October, New York-based Constellation Brands, which distributes more than 80 wine, beer and spirits brands, paid $190 million (CA$245 million) for a 9.9% stake in Canadian cannabis cultivator Canopy Growth Corp. Wallin and others believe more large beverage companies will follow.

 

Smoke Wallin, former WSWA Chairman and President of Vertical Companies

 

“I’m absolutely certain the Anheuser-Busches, the Bacardis, the Jack Daniel’s are going to get into this, but they will wait until marijuana is fully legal to do it,” said Wallin, who has more than 25 years of experience in the alcoholic beverage business. “Anyone that can get a brand established in the meantime, and show traction, is going to be very attractive to the big players.”

That translates into business opportunities for hemp growers, CBD producers and companies that extract oils such as cannabis terpenes. Those products don’t carry the same stigma in the United States as THC-laden marijuana, but it won’t be a slam dunk.

The marriage of alcohol and cannabis faces unique regulatory and legal hurdles, making it difficult for hemp, CBD and extraction companies to produce their own booze. The simpler option for those companies is to sell their products to alcoholic beverage manufacturers to get a foothold in what could become a lucrative product niche.

Striking a Partnership

That’s what Joe Pimentel did. In 2017, Pimentel, the owner of Luce Farm in Stockbridge, Vermont, decided to start producing CBD-infused honey to set his farm apart from other area hemp growers. He approached Long Trail Brewing in Bridgewater Corners, Vermont, about carrying the honey in the brewery’s restaurant and gift shop.

“The CBD hemp market is so immature, so our strategy is to align with a lot of Vermont brands that are better known than ours,” Pimentel said.
Long Trail decided not only to sell the honey, but also to make a beer with it. “We liked that the hemp gives us new flavors we can’t get anywhere else,” said Head Brewer Ian Harbage. But the honey played havoc with the beer’s consistency, so the brewers opted for Luce’s CBD extract and hemp terpenes instead.

Terpenes are separated out at the beginning of the hemp-extraction process, like an essential oil, and then the CBD extract remains. Pimentel used to do his own extractions, but “nothing we could create in our kitchen had consistent levels of THC,” he said.

He started researching the best extraction techniques and decided on a carbon dioxide method offered by the PhytoScience Institute in Waterbury, Vermont. PhytoScience now handles all of Luce Farm’s hemp extractions, and the terpenes are consistently documented at less than 1 part per million THC.

CBD has more health properties but not as much flavor and aroma as terpenes. “The main terpenoid in cannabis is the main flavor in hops, which makes terpenes and beer a good partnership,” said Andrew Follett, the owner of Philadelphia-based Keystone Canna Products, which was founded in 2014 to help hemp farmers distribute nationally.

Follett also said CBD, which has a slightly nutty flavor, is a better option for wine and spirits manufacturers that don’t want a distinct cannabis taste or smell in their products. But he noted that it takes time, effort and creativity to mix the oily product into beverages, which can deter some brewers and distillers.

Regulatory Headache

Like the cannabis sector, the alcohol industry faces a web of regulations – in this case from both the states and the feds. Consequently, hemp, CBD and extraction companies must be aware of the complicated regulatory process when wading into the alcohol business.

The U.S. Drug Enforcement Administration’s declaration in December 2016 that CBD is a Schedule I controlled substance – like marijuana and heroin – complicated matters. Last year, a Colorado craft beer producer, Dad & Dude’s Breweria, butted heads with the feds over the brewery’s production of a non-THC, CBD-infused beer. Dad & Dude’s had previously won approval for the brew from the federal Alcohol and Tobacco Tax and Trade Bureau (TTB). The brewery, which continues to sell the beer on its premises, is for now locked in a legal battle with the DEA as well as the agency.

The TTB, meanwhile, presents other hurdles. Any alcohol company that sells across state lines, for example, must secure approval from the agency. Back in 2000, the agency’s predecessor issued requirements covering formulas, processes and labels for domestic hemp products. The policy requires all alcoholic beverages that contain hemp or a hemp component to submit a lab report stating the amount of THC in the hemp, a move that dovetails with the DEA’s policy.

“It follows the DEA’s rules, and the intent of those rules are to ensure the product is THC-free or has trace amounts,” said Ryan Malkin of Malkin Law, a Miami Beach, Florida, firm that specializes in alcohol law.

In December 2017, Weatherford, Texas-based TVM Wines received TTB approval to manufacture and sell its hemp wine across state lines. The process took two years and 28 different paperwork submissions to the agency, said Elease Hill, TVM co-owner and vice president of sales and marketing.

Hill said the key was to supply the agency with lab tests showing the hempseed oil used in her sweet, citrus-based wines had less than 4 parts per million THC, and that the oil was derived from hemp stalks, roots or stems rather than flowers or resin, which is considered a Schedule I substance by the DEA.

“You have to be careful where you get your hempseed oil from,” Hill said. “I had one that was 3% THC, from mature hemp stalks, and the DEA said that was too high, so the oil must be coming from hemp resin.”

Hill found her suppliers through a list provided by the Texas Hemp Industries Association and by simply Googling hempseed oil companies. She read product reviews and then called the companies to check their references and lab work documentation.

Hill eventually partnered with Keystone Canna Products. Its hemp oil and food brand, Cannagenix, specializes in paper trails and lab testing, according to Follett, the owner.

“There are a lot of hemp and CBD products but not a lot of quality documentation,” he said, noting that growers and CBD companies that can’t produce a regulatory paper trail are likely to be shut out of the alcohol business.

Labeling Semantics

Hill said even though TVM’s wines contain CBD, they’re labeled as “hemp seed oil infused” because the TTB and DEA preferred the word “hemp” to “CBD.”

But, like most cannabis law, this is a gray area. The determining factor appears to be where the beer, wine or spirits are sold. Even if alcohol doesn’t cross state lines, regulations vary from state to state, just as they do with cannabis.

So far, Long Trail’s Medicator beer hasn’t run up against the TTB, even though the can says: “Vermont’s first CBD infused beer.” But the company has made only three small batches and has limited sales to the brewery’s pub.

In California, Petaluma-based Lagunitas Brewing uses cannabis terpenes in its SuperCritical Ale. CannaCraft, a vertically integrated medical cannabis producer and distributor in Santa Rosa, California, extracted terpenes for the beer using a carbon dioxide process.

“There is no THC in the beer, so we simply made the beer and did not ask for permission to do that which we do every day,” said Lagunitas founder and Executive Chairman Tony Magee. “However, the TTB became interested, and we are talking with them about it right now. I’m pretty confident they will understand what we intend to do, and we’re looking forward to making a whole lot more of it.”

 

Standing Up: A Personal Journey To The Legal Cannabis Industry

I never imagined I’d be writing about this topic. For 25 years, I’ve enjoyed an amazing journey as a serial entrepreneur building companies and brands, leading companies in the beer, wine and spirits, distribution, and technology industries. The alcohol industry has been good to me and to my family.

Other than a little exposure in college, I have not been around marijuana. A few years ago, I met a bunch of U.S. Marines. Travis McVey created Heroes Vodka and I helped him launch the brand. His friend Stephen told me a story that has stayed with me. Stephen Cochran served as part of the 2nd (LAR) Light Armored Reconnaissance Battalion, 1st Marine Expeditionary Force. He served in Iraq and Afghanistan and was severely injured on patrol. Stephen spent nearly a year in hospitals paralyzed, unable to a walk. After undergoing an experimental procedure at Vanderbilt, he was miraculously able to walk again. Stephen said,

“In recovery, I suffered from extreme pain and Doctors prescribed me every prescription medicine you could imagine. The pain meds nearly killed me. That is when I turned to cannabis. Today I’m raising my family, writing, and performing music. I give back to veterans wherever and whenever I can ( Semper Fi Fund). Medical cannabis is the reason I can do these things today. It saved my life and the lives of many of my fellow veterans.”

This conversation opened my eyes to the many benefits of cannabis. There are more than 50 medical conditions for which cannabis is legally recognized as some form of therapy or medicine including Alzheimer’s, anorexia, arthritis, cancer, chronic pain, epilepsy, and post-traumatic stress disorder. I’ve come across people suffering with chronic pain and others going through cancer treatment. Cannabis allows them to live their lives without the destructive side effects of opioid based pain medicines. The more I learned about the benefits of cannabis to people suffering, the more research I did to understand the industry. Based on this, I’ve come to believe that its place in society needs to change.

BEVERLY HILLS, CA – FEBRUARY 15: Al Harrington (L) and Viola Harrington arrive at exNBA Star Al Harrington Launches New CBD Business at Wolfgang’s Steakhouse on February 15, 2018 in Beverly Hills, California. (Photo by FilmMagic/FilmMagic)

Al Harrington is a 16-year NBA great and cannabis entrepreneur. I used to watch Al at Pacer’s games. Al found his way into medicinal cannabis and CBD to treat his pain from a botched knee surgery. He tells a funny story about recommending medical marijuana to his grandmother Viola. She suffered from multiple ailments, and after some initial resistance, she tried it and immediately felt better. His cannabis brand, Viola, was soon born. He also has his Harrington Wellness line of CBD. Al’s story is genuine. In an interview with Al, former NBA commissioner David Stern pronounced that the laws and rules need to change around cannabis (See Al Harrington and David Stern). Al, and my friend, musician, and NFL great Kyle Turley, have been outspoken advocates for awareness and change. It’s clear, cannabis prohibition and the aggressive pursuit of its enforcement have also particularly ravaged the African American community.

The opioid epidemic is destroying lives, families, and devastating whole communities. I personally have more than one friend who has lost a (grown) child recently, due to accidental overdose or tainted product. We must do something to stop this epidemic. Doctors overprescribing opioids is one of the primary causes. Many patients start out with legal prescriptions and become addicted. They then turn to the illegal market to meet their addiction needs. Cannabis can be used to help wean people off these destructive drugs. Ideally, it could be prescribed to avoid opioid abuse in the first place. It is a legitimate part of the solution. Given this, I decided to find out how I could make a difference.

I attended the MJ Business conference in Las Vegas and networked with Young Presidents Organization (YPO) and other friends. I wanted to figure out how I could play a positive role in this emerging industry. I did some research to understand what led to the abrupt prohibition of cannabis in the US in 1937. I learned that Indianapolis pharmaceutical powerhouse, Eli Lilly was in the cannabis business until the prohibition. Cannabis prohibition seems to have been motivated by a combination of racism and the business interests of a few that had political influence (Why Is Marijuana Illegal). I learned that many feel the ratcheting up of cannabis to a Schedule I drug (the same as Heroin) in 1970 also had racist motivations. It was certainly not based on science.

The American public now overwhelmingly supports cannabis legalization, with over 64% in favor according to Gallop. It is more popular than any current politician. State by state, citizens have made local option the law of the land. There are now 30 states plus Washington DC where medical cannabis use is legal. There are 9 states where adult recreational use is now legal. This is a prime example of the importance of state’s rights leading the way.

As the industry has come out of the shadows of illegal activity and into the light of permitted activities in many states, incredible entrepreneurial spirits have been unleashed. I feel the excitement of being at the forefront of another Repeal of Prohibition. This time though, we have the added dimension of extraordinary medical benefits. Drawing from my 25+ years in the beverage alcohol business, I see many parallels to the industry I know well. The legal framework around local option, licensing and taxes are similar to alcohol beverage laws in many respects. Constellation Brands [STZ] recent $191 million investment into Canopy Growth [WEED] further convinced me that this developing industry is going mainstream.

Legal cannabis is likely to rival the Beer, Wine and Spirits categories and exceed $50 billion annually in the coming years. Some analysts predict the US industry over $100 billion. Regardless of the number, it is and will be massive.

I met my partners Todd Kaplan and Courtney Dorne through YPO last year. I joined the team at Vertical Companies as a partner, President of Distribution and Chief Marketing Officer in January 2018. I could not be more excited in this venture, building a large scale new enterprise in the emerging cannabis space. One of my objectives will be to play my part in bringing the right coalitions together to address and correct the State vs Federal conflict that exists today.

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