Supply chain management risk comes to the forefront in a recent cannabis flower recall. It is reported that contaminated single-use gloves were responsible for a recall of cannabis flower products from a pesticide-free cannabis producer and processor in South Lake Tahoe, California. The antimicrobial chemical o-Phenylphenol was identified as the contaminant found in the FDA-compliant food-grade gloves that the grower used. Kirk Berry breaks down how a risk-based approach can be used to analyze the issue.
After measuring the size of the grows, the LCB determined they were out of compliance by 50%. Based on their determination, the LCB destroyed thirteen thousand pounds of harvested flower that the three growers had produced. Thirteen thousand pounds is a lot to lose so let us dive into this event, discuss risk management and compliance, and how you might approach these issues to avoid being out of compliance.
On November 5, 2021, the cannabis compliance board from the state of Nevada issued a public health and safety bulletin for product recalls. The recall included 14 different edible products from one supplier that were distributed to 10 different dispensaries. Kirk provides a succinct analysis and 6 things to consider to make sure you are ready for a recall.
The EVALI cases in 2019 were certainly a common topic of discussion. After reading this report I would like to highlight a few of the reports interesting conclusions: 1) in states where marijuana policies were in effect, a statistically lower number of EVALI cases were seen, 2) EVALI incidents were about 40% lower in states that allow recreational marijuana use, 3) contaminants found in marijuana vaping products were problematic.
Operators must not only manage the day-to-day challenges unique to the industry, but they must also find ways to improve performance while reducing costs if they wish to remain competitive. While profitability and market share are the ultimate goal, maintaining compliance in an ever-changing regulatory environment puts additional pressure on companies looking to carve out their piece of the pie. Unfortunately, the pursuit of profits and the desire for a competitive advantage can sometimes lead to hasty decisions that result in unnecessary operational risk. The good news is that with the proper planning, processes, and systems in place, managers and executives can significantly reduce the operational risk associated with their business.