Cannabis Leaders Focus On ‘Top Shelf’ Quality By Balancing Innovation, Branding, IP Protection

The cannabis industry continues to evolve, and a significant challenge for businesses is how to deliver top-shelf quality products without driving up costs. This issue is tightly linked to concerns over gross profit margins (GPM), manufacturing processes, intellectual property (IP), and the potential of introducing denomination of origin standards, much like those used in the wine industry.

During the recent Benzinga Cannabis Capital Conference, a panel of experts addressed these themes, providing valuable insights into maintaining product quality while optimizing profitability.

The Consistency Challenge

One of the major issues discussed was the difficulty of maintaining consistency in cannabis products. Tassa Saldi, co-founder and CEO of TUMI Genomics, explained that achieving consistent quality across regions can be a real struggle due to biological differences and agronomical complexities of the plant. She pointed out how difficult it is for customers to find the same strain from one location to another, even when the product carries the same name.

Building on this point, Shareef El-Sissi, founder of Terpene Belt, highlighted that the industry is still lagging in adopting the consumer packaged goods (CPG) standards, which could improve consistency. Customers expect uniformity in their products, and without it, they often have disappointing experiences, making it difficult for the industry to build trust. “There’s still a lot of packaging and innovation that needs to be created so you can have a repeatable experience,” he said, while pointing out that packaging technology will have a major role in the upcoming years.

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Innovation And Intellectual Property

Dr. Chanda Macias, CEO of Ilera Holistic Healthcare and Women Grow, emphasized that innovation in the cannabis sector needs to be safeguarded through intellectual property. “The only way to protect innovations is through IP,” she said.

The registration of IP with the U.S. Patent and Trademark Office (PTO) will play a pivotal role in the growth of cannabis businesses as the industry matures. Macias urged small growers to find ways to safeguard their innovations and emphasized the importance of not choosing “to stay behind.”

Macias also noted that for cannabis companies to scale successfully, they must invest in automation, adding that relying solely on manual labor “just won’t cut it.”

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Cannabis Quality And Market Positioning

Branding emerged as another critical factor in defining top-shelf quality. Macias highlighted the importance of positioning products in a way that resonates with luxury and adult-use consumers, particularly as the market moves towards larger scales of production. A strong brand identity can set premium products apart from the competition.

Echoing this idea, James Mallios, founding partner of Charlie Fox with a background in the restaurant business, pointed out that the cannabis industry could learn from the wine industry, where the denomination of origin plays a crucial role in creating a premium experience.

According to Mallios, for cannabis brands to establish a luxury presence, high-quality packaging alone isn’t enough. A brand needs “to find itself in an experience that helps define that sense of top shelf” and must deliver an experience that resonates with consumers and reinforces its premium image.

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Tassa Saldi, co-founder and CEO of TUMI Genomics, speaks at the Benzinga Cannabis Capital Conference. Photo by Wendy Davis.