Ep. 3: Navigating the Fast-Growing Hemp Industry

Cannabis Unraveled

In this episode, host Jessie Kater explores the rapidly evolving hemp industry, with a wide range of products being marketed and sold through regulated channels. Jessie welcomes two industry insider guests to shed light on this topic; David Neundorfer, Co-founder & CEO of Open Book Extracts, offers invaluable insights into responsible hemp-derived cannabinoid production. Morgan Davis, a renowned cannabis attorney, provides expertise on the legal aspects of the hemp-derived space and shares advice for consumers navigating this diverse market. The crew discusses the industry's trajectory, regulatory challenges, and hopes for the future, including the upcoming 2023 Farm Bill. They also cover the challenges of obtaining a level playing field in the industry, potential market course corrections, and tips for navigating this ever-changing landscape.

**The information, opinions, and views expressed in this podcast are those of Mr. Kater and his guests only and may not reflect the views of Curaleaf or its employees. The material and information presented here is for general information purposes only. Curaleaf does not endorse or recommend any particular product or service discussed, including products containing cannabinoids. Products discussed in this podcast may not be available to all listeners depending upon the residence state of the listener, the listener’s age, etc. Any products discussed in this podcast are not intended to diagnose, treat, cure, or prevent any disease.

Topics of Discussion:

[2:04] David shares his journey of transitioning from automotive manufacturing and industrial automation to the cannabis space in 2017.

[3:03] Open Book Extracts' mission is to be a responsible, trusted, transparent, one-stop shop for ingredients, formulation, research and development, and finished goods manufacturing.

[5:40] Morgan discusses her pathway to cannabis and highlights the fine line between civil and criminal liability in the cannabis space.

[6:09] How Morgan became a leading expert on the legal and regulatory aspects, evolving to the emerging hemp psychoactive market.

[8:43] David and Morgan offer their perspectives on the evolution of the cannabis market and the journey from the 2018 Farm Bill to its current state.

[11:24] How the cannabis industry has outpaced the law and the challenges this presents.

[19:39] Recommendations for manufacturers seeking entrepreneurial opportunities and advice for consumers navigating the hemp market.

[20:09] Why consumers must advocate for themselves, especially in emerging markets with ambiguous regulations.

[32:44] The group discusses whether the current state of the cannabis industry benefits the overall market.

[35:31] David shares his hope for the 2023 Farm Bill, emphasizing the importance of a harm reduction approach and the role of market forces.

[37:06] Creating a safe harbor with specific requirements to attract large retailers and support responsible brands.

[42:18] Morgan shares insights on North Carolina's proposed HB 563 and its potential implications.

[44:53] The significance of comprehending the risks and opportunities in the cannabis market.

[56:25] The group emphasizes the importance of always checking the ingredient panel in hemp-derived products.

[58:22] Opportunities and hope for the 2023 Farm Bill.

[58:55] David advocates for setting a level playing field in the market, allowing for growth and encouraging investment in safety studies for more transparent sharing of results.

Want to Learn More?

Cannabis Unraveled: Instagram

Morgan: Website

David: Open Book Extracts

Quotes:

• “There's this connection between the criminal world and the hemp world. It's a very slippery slope from civil to criminal liability in this space, even now. - [3:42] Morgan
• “The law is always way behind where any industry is. The law is very reactive. It's not proactive. - [11:24] - Morgan
• “If you’re a legal geek like me, it’s fascinating to watch the slight tweaks that happen on a state-by-state basis, causing this incredible innovation to happen where you see people in R&D constantly pushing the envelope of what they can make within the given guidelines.” [12:14] - Morgan
• “This plant is so versatile. And now, we’ve opened the door to be able to actually spend some time with it. Up until recently, you couldn’t do anything with it. You couldn’t experiment with it, and there was no legal pathway. Now, almost anybody can.” [13:42] - Morgan
• “Consumers, always have to advocate for themselves and be their own kind of citizen doctor, especially in emerging markets where regulations haven’t been clarified.” - [18:50] - David
• “It's also an unlevel playing field for low-THC brands that are legitimately focused on health and wellness products. And I think it's led to a point right now where something's gotta give.” - [34:43] - David
• “So rather than putting the onus on the FDA and Congress, create some level playing field across manufacturing standards, labeling requirements, and age verification where necessary. That allows the market to really open up, but open up for the groups that are putting these products through the paces that they deserve to ensure consumer health and safety.” [37:46] - David
• “I'm actually a big supporter of more broad access to cannabis. I think that everyone should have responsible access, whether under adult use or therapeutic applications.” [38:09] - Jessie
• “Always look for an ingredient panel. You need to know what is in that product, and if it does not list the ingredients, do not buy it.” - [56:25] Morgan