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.

Giving Thanks To Mentors: My Gratitude To Andy Paine, Jr.

Giving Thanks To Mentors: My Gratitude To Andy Paine, Jr.

As we live our lives, we all lose family, friends, colleagues and acquaintances. Sometimes, we lose someone who meant something very special at some point along our life’s journey. For me, that someone was Andrew J Paine, Jr., “Andy” who passed away this week after a battle with cancer. Andy lived a full life, raised a great family and has many great accomplishments as one of The Business Leaders of the Indianapolis community for decades. The Indianapolis Business Journal did a nice job in their tribute here Banking titan Andy Paine dies at age 80. 

Andy was one of the first people I met when I moved to Indianapolis after Cornell University. He was warm and inviting and we immediately connected on some of his work in the community. He was leading an effort with the Japan America Business Council which led us to long discussions on international business and relations. At that first meeting at my father-in-law, Jim Lacrosse’s house, Andy invited me to join him for lunch at his office. Little did I know that lunch would transform my life.

Andy and Jim were close friends. Indiana National Bank was one of two leading Indiana banks and Andy was, by then, the President (INB is now JP Morgan Chase). But when they met, Andy was the loan officer who ended up pushing through the loan that allowed Jim to buy the $11 million National Liquor Company (Later $1 billion National Wine & Spirits and now part of $8 billion RNDC). Needless to say, they were close, but Andy and I hit it off independently.

When I arrived at the Indiana National Bank tower, I was unaware that we’d be dining in the CEO’s private dining room. At 22, I was wet behind the ears in business, but possessed high ambition and the willingness to do whatever it took to make my mark. I think Andy sensed that and somehow felt a connection and the desire to help channel my raw energy. That’s what mentors do.

At that lunch, Andy said to me,

“Smoke, you need to get involved in the community early on.  Don’t wait until later, do it now. I want you to meet David Hicks (then president of JA of Central Indiana). JA is something you can help with now. I also want you to go through the Stanley K Lacy Leadership Series, but you will have to wait until you are at least 27.”

He talked about the importance of giving back in the community and getting involved early. That it’s an obligation for each of us who do well and thrive in our communities to give back to those communities and to people who need a leg up. Andy appealed to the best in each of us and translated that into action for me.

When I applied to business schools, Andy wrote me recommendations. When I led the Distinguished Lecture Series at Vanderbilt Business, Andy helped me recruit speakers (Hank Schacht CEO of Cummins Engine and later Lucent Technologies and James Baker, CEO of Arvin Industries). When I applied to the SKL Leadership series, Andy was my sponsor. When I later became Chairman of JA of Central Indiana and won a national bronze leadership award, Andy was there encouraging and supporting me at each step along the way. Andy supported my selection as “Forty Under 40” by the IBJ. As we grew our business and NWS, I became CFO to restructure our financing amid a torrid pace of acquisitions and growth. Andy was always around.

I reflect back now on the impact he had on my career and life. The advice he gave me at the first lunch and the later encouragement and support, although infrequent, came at critical moments in time that helped me make better decisions and ultimately become the person I am today.   For all of you who take the time out of your busy schedules to counsel an up and comer from your business or community, I say thank you. Know that a lunch with a bit of coaching and encouragement can make all the difference in someone’s life. Don’t ever think of it as a waste of time or unnecessary. Indeed, it may well be one of the greatest responsibilities we all have as leaders in our respective worlds.

Thank you, Andy. I will never forget you and your legacy continues.

COURTNEY DORNE AND J SMOKE WALLIN JOIN VERTICAL COMPANIES EXECUTIVE LEADERSHIP TEAM

COURTNEY DORNE AND J SMOKE WALLIN JOIN VERTICAL COMPANIES EXECUTIVE LEADERSHIP TEAM

VERTICAL EXPANDS EXECUTIVE TEAM; CEMENTS LEADERSHIP IN LEGAL CANNABIS INDUSTRY

Courtney Dorne, J. Smoke Wallin bring significant executive experience in Food and Alcohol Beverages to one of country’s leading medical cannabis companies

Los Angeles, CA (January 25, 2018) – Vertical, one of the country’s leading vertically integrated medical cannabis companies, announced today the addition of Courtney Dorne and J. Smoke Wallin to their leadership team.  Dorne is an entrepreneur and food industry leader who joins Vertical as a partner and President of Vertical Brands Co.  Wallin is a serial entrepreneur and thought leader in the beverage alcohol industry and has joined as a partner, Chief Marketing Officer and President of Vertical Distribution Co.

Vertical was founded in 2014 by entrepreneurs who saw the potential created by the transition of cannabis to a legitimate and legal business. Drawing from results-driven expertise in a variety of industries, the Vertical team has a synergistic energy that offers proven experience from seed to sale.

“I’m thrilled to welcome Courtney and Smoke to our executive team,” said Todd Kaplan, Founder & CEO of Vertical.  “Smoke’s deep knowledge of alcohol distribution and scaling new businesses in highly regulated industries, combined with Courtney’s perishable food distribution and extensive network strengthen our competitive advantage in the rapidly evolving legal medical cannabis industry.”

According to The Arcview Group, the U.S. legal cannabis industry represented over $6.7 billion 2016 and is expected to grow to between $22 and $50 billion over the next 10 years. Legalization of the medical cannabis industry began in 1996 with California’s passage of the Compassionate Use Act.  Since then it has operated in a quasi-legal environment with conflicting laws throughout the land, while growing exponentially.  2014 marked the beginning of adult recreational cannabis legalization with Colorado and Washington leading the way.  Today there are 29 states that have legalized either medical only or medical and adult recreational cannabis production, distribution, retail and consumption.  Gallop recently reported 64 percent of Americans support cannabis legalization nationally. In this vibrant space, Vertical is a pioneer and is the first to offer fully integrated services from legal compliance and operation of cultivation to extraction, product development and marketing.

Dorne brings literally a lifetime of experience in food services and the restaurant industry to Vertical. From her family’s restaurant to founding the giant Fresh and Ready Foods, Dorne has a proven track record in food manufacturing and perishable packaged food distribution and has built an extensive network of customers ranging from airlines and hospitals to convention centers, the military and convenience stores, all the while working under the rigorous scrutiny of FDA and USDA regulations.  She is a member of the YPO Global One chapter and is the current Chair of the Women’s Network (WYN).

“After years of suffering from debilitating pain and crippling migraines as a result of extensive surgical procedures, I learned first hand about the efficacy of cannabis on pain management,” said Dorne. “All too often our culture is quick to treat pain with a pill and we’ve all seen what that has gotten us. I believe that legal cannabis can be a part of a legal, safer and healthier alternative and I’m thrilled to join the team that can help make this happen.”

Wallin comes to Vertical by way of Taliera, a company he founded in 2005 to create, acquire, manage and advise brands in the beverage space. His career in beverage alcohol has included serving as Chairman & President of the Wine & Spirits Wholesalers of America (WSWA) and EVP and CFO for National Wine & Spirits (now part of RNDC/Breakthru). He is also active in YPO as Chair of the Beer, Wine and Spirits Network and has been active in legislative and regulatory affairs.

“I have always loved innovating, doing deals and building enterprises to scale, particularly in the beverage alcohol space,” Wallin said.  “I’ve been studying high potential growth brands and companies, and Vertical and is at the forefront of the rapidly growing legal medical cannabis industry. Both industries are highly regulated and for some time I have been expecting them to converge. The recent investment by Constellation Brands[STZ] in Canada’s Canopy Growth [WEED] validated my premise, and I couldn’t be more excited to be part of the team building brands and distribution in a market worth $100s of billions globally.”

Wallin continued, “I can’t help but think of Sam Bronfman in 1933 at the Repeal of Prohibition who went on to build Seagram into the alcohol industry leader it became before selling to Diageo and Pernod Ricard. Vertical is positioned to achieve that level of success.”

About Verticalâ„¢

Vertical is one of the first and largest vertically integrated companies in the legal medical cannabis industry. It’s operations in CA, AZ and OR combined with strategic partnerships in CO, MI, and NV position it well to take advantage of the rapid 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 and medical industries. Vertical’s operations include planning, permitting, development and operation of cultivation, extraction, manufacturing, distribution and retail facilities.  It has world class capabilities in product development, co-packing, branding, marketing, education, and legal compliance, Vertical does Everything Pertaining to Green. For more information visit www.vertcos.com.

The Power of Choice: A Boy Named Smoke

The Power of Choice: A Boy Named Smoke

“Well my daddy left home when I was three And he didn’t leave much to Ma and me Just this old guitar and an empty bottle of booze Now, I don’t blame him ’cause he run and hid But the meanest thing that he ever did Was before he left, he went and named me “Sue”” – Johnny Cash “A Boy Named Sue”

My whole life I’ve been asked if Smoke is my real name. Born John Smoke Wallin, I’ve been Smoke since memory. This might seem a trivial question, but explaining my name has been a reality for me since as long as I can remember. I attended a Young Presidents Organization (YPO) event last night in West Hollywood and met another member with an equally unique name. We connected on the issue of growing up with an unusual name and the challenges that presented each of us. He explained his story of growing up hating his name, wishing to change it, and then being given a choice by his family. He was offered a color TV or name change and picked the TV. He went on to describe the pivot that happened for him when he chose not to change his name and owning the decision for the rest of his life. “The day after my choice, someone called me a name and we fought. I stood my ground. From that moment on, I owned my name and it empowered me.”

I immediately realized he described my own experience. Growing up in multiple towns, from Hoboken, Boston, Siesta Key and ultimately Longboat Key. I changed schools and moved 4 and 5 times before entering high school. Each move provided the usual challenges of meeting new kids, introducing myself and getting asked (aka challenged) about my name. Kids generally want to be liked and fit in. Having a weird name always came with this challenge up front. As I’ve described it many times, kids can be very mean and I remember this being very upsetting. I can remember coming home in tears. I always felt like an outsider.

I entered yet another school for 7th grade and declared to my mom, “I’m sick and tired of getting made fun of, I am going to use my given first name at my new school”. Declaring that, and having mom’s full support, I entered Sugg Middle School in Bradenton, FL as John Wallin. The first day of school and throughout my 2 years there I quickly realized 2 things: 1. I did not respond to the name John. 2. There were 7-10 John’s in every class. No one made fun of me and I fit right in and yet realized I did not feel like me.

As I prepared to enter Bayshore High School I declared to my mom, “ok, I’m going back to my real name, Smoke”. I’ve owned my decision ever since. Having a unique name from HS through college through my business career is now a source of strength. I embraced the unique gift my parents gave me at birth. Proudly explain my American Indian heritage (very small) and my likely semi-hippie parents at the time. Everyone remembers my name and me. It is a part of what makes me me.

The power of choice in our lives is all powerful. Deciding something for oneself means you own the decision. The greatest gift my mom gave me was to let me choose.

If you are facing a challenge or problem great or small, think about the choices you have made to be in your situation. Realizing that there are many things outside our control, think about the choices you can make going forward that you do control. Worrying about things outside your control adds no value. Remember, once we have identified a problem or issue we all have these choices: to change it, to solve it or to live with it. Doing nothing is a choice. Once you realize this, you empower yourself and own the decision. No one can take it away from you.

By A Boy Named Smoke.

Cannabis, Crypto — Craft Beverages & DOT.Com Observations

Cannabis, Crypto — Craft Beverages & DOT.Com Observations

[ALSO PUBLISHED ON: LinkedIN, MEDIUM]

I spent a fascinating week learning about two of the hottest investment and business opportunity spaces right now. The block chain, crypto and initial coin offerings (ICOs), and the cannabis industry are literally on fire. Given this, I wanted to get an understanding of what’s really happening. I’ve been following the development of the block chain/coin movement along with the emergence of the legal cannabis business as these both are displaying signs of developments that may cause massive disruption (and therefore potentially big opportunities). Venture capitalist Tim Draper has been an outspoken proponent of the block chain and crypto offerings (see Exclusive: Billionaire investor Draper to participate in blockchain token sale for first time), while Jamie Dimon of JP Morgan Chase has been dismissive (see CNBC).

Constellation Brands (STZ-B) announced recently that it had agreed to take a 9.9% minority stake in the $2 billion Canadian medical marijuana company Canopy Growth. The stake is worth about $191 million, though Constellation will have the option of purchasing additional stakes in the future. This aggressive move marks a significant milestone with the first publicly traded US company making a material investment in the cannabis space. For the industry in which I have spent much of my business career — beverage alcohol (beer, spirits and wine), it’s also a taboo shattering wake up call. The financial community apparently agrees with the financial analysts, giving high marks for Constellation’s vision and the market supported it with a gain of over $1 billion in STZ’s market cap (essentially more than paying for the investment). Visiting Colorado frequently, I’ve seen how quickly the legal use of medical and recreational marijuana has ramped up with the state of CO taking in over $550 million in tax revenue as of July 2017.

To learn more about each of these rapidly developing industries and to test my hypothesis of potential disruption, I attended the StartEngine ICO 2.0 Summitin Santa Monica followed by the MJBizCon in Las Vegas which together gave me an interesting perspective. Here I will share some of my observations.

General Observations

First, I met a number of really smart people pursuing these industries with a wide range of business and investment strategies. I had the good fortune to join up at YPO meeting-in-meetings at both events and, as usual, learned a great deal from these informal gatherings and met some of the people leading the way in both industries. I cannot say enough good things about the YPO network and the ability to quickly get to the movers and shakers in any industry or geography, globally.

The hype around these industries surpasses the craft alcohol craze and matches Dot.com in 1997–2000. I know both of these booms well having participated by investing and starting my own DOT.Com eSkye.com raising over $55 million (Tim Draper’s Dad, Bill Draper, invested see Forbes) and my multiple ventures in the craft beverage space. The bright light inevitably attracts all kinds of people and as in both of these examples, there are a ton of people who have limited or no business skills coupled with business ideas/plans/ventures with little to no chance of scaling to success. The cannabis side has more similarities to craft beverages in that it appears that 95% of businesses currently in or entering the space are really “mom and pop” operations that are more lifestyle businesses than scalable enterprises. However, what is absolutely clear to me is that, this is changing rapidly with the addition of serious investors and business operators.

Block Chain — ICO What is it?

The technology of the block chain is real and big. I’m convinced over time, it will fundamentally change the financial side of all industries. This MIT Sloan article does a pretty good job of discussing the potential. Its potential is hard to overestimate but not without controversy. See John Battelle’s discussion of it here Alien, Dismissible, Dangerous, Greedy, True and the fights going on inside Venture Capital firms here CRYPTOCURRENCY MANIA FUELS HYPE AND FEAR AT VENTURE FIRMS .

For my non-technical friends, I’ll try to define it here in my own way. For my expert friends, let me know what I get wrong as I’m still learning. The best simple explanation I’ve found so far is A Blockchain Explanation Your Parents Could Understand. Essentially, instead of a central party (think a bank) keeping track of everyone’s money and transactions with each other, the record keeping takes place in public (without revealing names) with 1,000s or more independent operators verifying the information and agreeing on its accuracy before securing it. While banking and financial transactions are the first use, there are many other uses being worked on and many more to come.

The ICO “Initial Coin Offering” market is booming with new business ideas for the application of this technology. Over $2.8 billion has been raised using ICOs thus far in 2017. These have been unregulated and range from real businesses to potential frauds. The ICO 2.0 Summit put on by StartEngine was really about bringing the ICO market into the regulated security market in the US. It is clear to me, from the many presentations, that an offering for a coin to fund a venture is an offer for a security, and therefore falls under the SEC. There are many in the crypto world who dislike this and will fight it, but governments are not going to simply sit back and allow investments outside their mandated oversight just because they are called “coins”. Given that, I agree with StartEngine’s CEO Howard Marks that the crowd funding Regulation A and also traditional Regulation D exemptions are the proper way to issue an ICO in the US.

Lou Kerner gave an excellent presentation based on his article, Is Crypto (Like) A Religion? & 6 Other Crypto Thoughts .

He followed this with a very interesting fireside chat with Michael Jones CEO of Science who is serious about the space and currently has an ICO in the works.

We heard from 17 companies planning to do ICOs of some kind. Again, I can’t help but compare this to DOT.Com days as there were clearly real business ideas and teams and others that are simply slapping the ICO label on something that is really not well thought out. What was true back in 1997–2000 in DOT.Com is true today — there are and will be billions of dollars invested in the block chain space, some of it will go into real business ventures and some of it will go into not-so-serious business ventures. Sorting these out will not guarantee your investment is the next Google or Amazon, but is absolutely the key to avoiding almost certain failure.

Cannabis — Marijuana Industry — Where is it now and where is it going?

From a story in Fortune Magazine regarding Constellation’s investment — “The wines and spirits conglomerate has no intention of selling cannabis products in the U.S. until it is legal nationwide. But the company is betting that legalization is just a matter of time, according to the  Journal . However, Constellation may soon sell the marijuana drink product in Canada, where legalization of edible and drinkable cannabis products is expected by 2019.

The move comes amid signs that suggest some consumers are reducing alcohol usage in favor of cannabis . “We believe alcohol could be under pressure for the next decade,” Cowen analysts led by Viven Azer wrote in an April note. “Consumer survey work suggests [about] 80% of consumers reduce their alcohol consumption with cannabis in the mix.”’

Given the above, what is the current state of the legal cannabis industry and where is it going?

The legal industry today is estimated at $5–6 billion and expected to grow to $12–17 billion by 2021. While this is only a fraction of the US alcohol market which stands at $200+ billion today, it could take some of that business (especially in beer in my opinion). So it’s big already and its going to get much bigger quickly. State legalization started with medical use and they are rapidly adding recreational. Cassandra Farrington, CEO and Co-founder of Marijuana Business Daily who put on the conference gave a great presentation on the history of the industry. Basically, the timeline she presented is as follows:

· 1996 California passes first medical marijuana law

· 1998–2008 other states follow

· 2012 Colorado, Washington pass recreational cannabis laws

· 2014 OR, AK add recreational. Canada liberalization takes root.

· 2016 11 legalization ‘wins’ in the US — 4 medical and 4 recreational via ballots and 3 medical via legislative action. Importantly, CA adds recreational in January 2018

Here is a map showing the current state status:

Over ½ the US population lives in states with legal marijuana use — with 30 states + Washington DC allowing legal medical use and 8 states plus Washington DC allowing recreational use. That being said, it is still 100% illegal at the US federal level. This means there are significant risks and hurdles for investors and businesses who enter the space. Banking is very difficult as the national banks cannot conduct business in the space. Anyone contemplating investing in the space needs to be aware of these issues. In spite of these challenges and an uncertain regulatory environment, many investors and business owners are jumping in with both feet.

One of the best presentations I heard was by Patrick Rea, the managing director of Canopy, an early stage fund that has made more than 100 investments in the space. He breaks the business down into four investment buckets:

  1. Public Stocks — these are the Canadian companies like the one Constellation invested in.

2. Real Estate — this is the buildings for dispensaries and the land for farms

3. Touch the Plant — these are the actual growing, processing and selling businesses

4. Ancillary Products & Services — these are all the things around the business from software to equipment to banking to marketing.

Canopy is focused on #4 exclusively but there are certainly opportunities in all of these.

From a branding and stage of industry development perspective this is literally a “green field”. I saw some interesting but nascent offerings given the time businesses have had to think about and try to develop brands. With new entrants, this will of course change, but right now I can’t help but think it is like the days when Sam Bronfman and Lewis Rosenteil were at the cusp of the repeal of Prohibition ready to launch Seagram’s and Shenley’s whiskies into the US respectively.

Where is this headed? It’s hard not to believe there will be continued legalization on a state by state basis. With the overwhelming majority of American’s viewing legal cannabis favorably, and importantly with the amount of tax revenue legal markets are bringing, other states will certainly follow to not get left out. Federally it will likely take longer, but like alcohol and the repeal of Prohibition, it will probably only happen if it is left up to the states to decide how their citizens want to allow cannabis regulation.

What’s clear to me is that there are huge opportunities in both these new industries. What is unclear is who will emerge as the big winners. I know from personal experience what being ahead of the market is like. The next few years will be like settling the wild west and a lot of entrepreneurial ventures will be created to try out different ideas in both cannabis and blockchain. I will come back to these topics as I learn more on both and please share any thoughts you may have. Cheers!

included in this article Howard Marks Tim Draper John Battelle Lou Kerner Patrick Rea StartEngine Constellation Brands Canopy Growth Corporation MJbizwire Jamie Skella WIRED Erin Griffith Phyllis Berman YPO Michael Jones Cassandra Farrington Seagram Fortune Magazine Jamie Dimon

Thriving In The Gig Economy by Marion McGovern

Thriving In The Gig Economy by Marion McGovern

This is a useful guide to both the independent consultant/worker as well as business owners looking to take advantage of the new gig economy. Marion brings such a deep understanding and perspective to the topic and organizes all the disparate bits of information (noise) into logical and bite sized nuggets for consumption.

You can view it here on Amazon

My YPO Graduation Remarks – Giving Thanks

My YPO Graduation Remarks – Giving Thanks

YPO Graduation - J Smoke Wallin

Last week, I chose to graduate a bit early from YPO “Young Presidents Organization” into WPO “World Presidents Organization” its sister organization for the over 49 crowd.  While I will remain active in WPO and the Food & Beverage Network and Deal Network in particular, the past twelve years in YPO have enriched my life greatly and its a good moment to reflect on that. Also I’d like to give special thanks to Todd Maurer for his remarks introducing me.  These are my remarks giving thanks at the graduation ceremony.

Todd Maurer giving remarks on Smoke Wallin at YPO graduation 2015

YPO GRADUATION – J. Smoke Wallin

Thanks Todd, I really appreciate your kind words!  Speaking of giving thanks, today is the anniversary of DDay 1944.

In 2003 when I joined YPO and “Forum Unplugged” my kids were 13, 11, 8 and 3, today they are 26, 24, 21 and 16… wow nothing like kids to express the passing of time.

Since then I’ve been blessed with a lifetimes worth of experiences professionally and personally as a direct result of YPO.   This was not an accident.  It did not just happen to me.  You see, I don’t believe in doing things part way.  Either you commit or you do not.  When I joined YPO I made a commitment to give and get as much as I possibly could.

Henry David Thoreau said “True friendship can afford true knowledge. It does not depend on darkness and ignorance.”  This is YPO.

From Australia to India to the UK to cities throughout the US, YPO members have been welcoming and helpful to my family and me.  I know this because I dined at their homes, visited their businesses, attended their events and engaged with them in business.  I know the last 12 years of my life have been greatly enhanced by this commitment.

I will express my gratitude by sharing a couple of stories and mention a few people.

First, I met my wife Anitra on a YPO trip and that changed my life forever.  Thanks Darling.

YPO George HW Bush Event - Smoke & Anitra 2004

YPO George HW Bush Event – Smoke & Anitra 2004

I could stop there, but I won’t.

I joined Forum Unplugged and have had 12 years of deep relationships, friendships and confidences with 22 Forum mates.  They include:

  • Scott Webber
  • Don Palmer
  • Brent Eckhart
  • Mark Jackson
  • Bill McCarthy
  • Allen Furrer
  • Dan Horner
  • Chris Hilger
  • Richard Horn
  • Mike Bosway
  • Matthew Claymon
  • Gregg Schorr
  • Nelson Reyes
  • Jim Rapp
  • Brian Acton
  • Kent Morris
  • Todd Maurer
  • Anthony Brown
  • John Ryan
  • Bryan Brenner
  • Dave Foellinger
  • Dan Filby
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YPO Forum Unplugged

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Aspen_-_YPO

These are some of the finest individuals I’ve ever come to know and I am grateful for all they have done for me in my journey.

Some of our very best friends today are members we met through YPO including Bryan and Lara Sperber in Phoenix and Lesley Berglund in Napa

Through Networks, I’ve expanded my industry network tenfold.  Engagement in networks has been the single most important business and professional development aspect of YPO for me.  Fortunately, I’m excited to be able to continue through WPO as I Chair the 2016 Food & Beverage Roundtable in Napa, CA.

Looking back, I’ve lived so much life over the past 12 years it’s hard to summarize in a couple of minutes.   I’m not alone when I say it has come with great successes and great loss.  I’ve lost partners, friends and employees to both accidents and suicide.  I’ve had incredible business ups and downs and started numerous new ones along the way.  Throughout all of it, I’ve had YPO people to help me be better or simply to be there when I have needed it most.

To all of us, but especially those newer members… I’d like to remind you of some things that did not exist when I joined:

  • starting in my industry – there are 1,000s of new breweries, wineries and spirits brands available today that did not exist
  • There was no iPod or iPhone or iPad
  • There was no Facebook or Twitter
  • No AirBnB or Uber
  • no Freedom Tower
  • no Lucas Oil Stadium

All of these things that are now a part of the world and our every day lives.

“There are only two ways to live your life. One is as though nothing is a miracle. The other is as though everything is a miracle.”

– A. Einstein

Looking forward, what will the next 12 years bring?  I spend a lot of time thinking about what’s next in brands, but I won’t try and answer that question here.  There is one thing that I do know…. I am confident many YPO people will be involved in changing both the world and my life for the better.

Thanks for everything you have given me.

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