Standing Up: A Personal Journey To The Legal Cannabis Industry

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.

My Week of Leadership & Entrepreneurship @ Cornell and WSWA

My Week of Leadership & Entrepreneurship @ Cornell and WSWA

Celebration 15 logo

I’m really looking forward to next week’s Entrepreneurship @ Cornell University! The energy building up to this is incredible as I’ve begun to interact with my fellow speakers and attendees.

Right now I’m thinking about my topics and the most important take home value I can deliver to the students, entrepreneurs and attendees.

Before I get to Ithaca, I’m attending the 72nd Annual Wine & Spirits Wholesalers of America (WSWA) convention in Orlando, FL.  Since I’m launching a new brand project, it will give me an opportunity to further discuss packaging, branding, sourcing and overall strategy with some of the brightest leaders in the industry.  Last year at WSWA I kicked off the pre-launch of Sugar Skull Rum.

This is a cool brand that unfortunately got stopped in its tracks by certain partners before we could get beyond kickoff in a few markets.  Time will tell where it ends up, but the early response was terrific!  There are lessons in this one I will certainly share at Cornell.

Finally, although I rooted for Wisconsin at the Final NCAA game last week, I am looking forward to hearing Mike Krzyzewski- better known as “Coach K“- head of the legendary Duke University Blue Devils basketball squad, address our group on Monday morning.  Not a Duke fan generally, but definitely hold Coach K in high regard and interested in his message on leadership and winning.

Here’s an outline of my upcoming Cornell visit:Tech Entrepreneurship Roundtable Prgm image

Tuesday/Wednesday – participate in and speak at the Pillsbury Institute’s

Technology Entrepreneurship Roundtable, Chaired by: Mona Anita Olsen, Ph.D. Assistant Academic Director of The Leland C. and Mary M. Pillsbury Institute for Hospitality Entrepreneurship, Visiting Assistant Professor of Management & Organizational Behavior, Cornell University

Center for Hospitality Res - Cornell

Mona Anita Olsen

I’m looking forward to my session with  Cornell classmate Joe Tagliente, President, Lenrock and a fellow YPO’r.  Our panel is called “Brand Activation Through Social & Mobile Apps and Development of A Social Mobile Company” The full program is here.

It will be catching up with fraternity brother (Sigma Nu)  Zach Shulman, who I found out after committing to my visit is Director of Entrepreneurship @Cornell!  Very cool!

Thursday/Friday are jam packed with the Entrepreneurship @Cornell Celebration.

 

In this I’m joining more than 1,000 alumni, students, faculty, and staff for two days of on-campus events including:

  • Symposia on a wide range of topics including family business, social entrepreneurship, health administration and more!
  • eLab Demo Day
  • New Business & Emerging Technologies Showcase
  • BIG Idea Competition and Cornell Venture Challenge finals
  • Recognition of the Student Business of the Year
  • Networking opportunities …and more!

    Celebration 15 logo

I have the opportunity to speak with Dr. Olsen’s class called:

Technology for Bootstrapped Entrepreneurship

a topic with which I am intimately familiar!

Following class, I’m participating on a panel of distinguished entrepreneurs in what is dubbed a

Slice of Insight Social at Celebration ’15

The the rest of the day includes a keynote by Jay Walker (one of America’s best-known business inventors and entrepreneurs, has founded multiple successful startup companies that today serve more than 75 million customers in 15 different industries) and the banquet with special guest Svante Myrick ’09, Ithaca Mayor

On Friday I’m joining two other entrepreneurs in a celebration talk:

CEN talk Cornell panel

In between all this I’m visiting the Viticulture and Oenology department, with Prof. Gavin Sacks to learn about what Cornell is up to in the wine world and also to see what we can do to tie them into our 11th Annual Wine Industry Technology Symposium (WITS) in Napa in June.

Finally, I’m paying a visit to the Friedman Wrestling center and Coach Rob Koll,  4 X NCAA champion Kyle Dake and first time champion Gabe Dean…  and later meeting up with my old wrestling coach and Athletic Director, Andy Noel... this will entail its own post after we meet up!

I look forward to writing about my experiences and all the interaction with new and old friends!  Cheers!

 

 

 

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