California deems it necessary to introduce new rules when it comes the packaging and labeling of cannabis products.
Cannabis products are becoming more readily available in various stores and locations all over the U.S. as more states have voted to legalize cannabis use during the recently concluded midterm elections.
Since it is now more common to see cannabis products, certain states and regulatory commissions have found it proper to set new rules regarding the packaging and labeling of these items.
The latest development, of course, remains to be the “final” state regulations for packaging discussed at the NCIA California Cannabis Business Conference in Anaheim. The new regulations will focus heavily on the need for child-resistant (CR) packaging for most of the items for the market. Companies will need to fully comply with the new regulations by Jan. 1, 2020.
There are a few new standards that companies must abide by once the grace period has passed. First off, multi-dose items will need resealable CR primary packaging if the individual doses are child-resistant. On the other hand, single-serving, topical or inhaled products will need to be packed with one-time CR packaging. Lastly, products that are edible or are orally consumed must be child-resistant throughout their lifespan.
Aside from stricter packaging standards, the new regulations in California also look to eliminate white labeling as brand owners are required to partner only with other brands that are licensed. Operators who are unable to partner with unlicensed brands cannot label their packages with “cannabis goods under a non-licensee’s brand or according to the specifications of a non-licensee.”
Regulations such as these will push the cannabis industry forward. As brands are able to showcase their willingness to abide by regulatory standards, people will become more trusting about companies that are in what used to be a controversial industry. However, the state regulations in California are not without drawbacks.
Concerns of cannabis companies
The immediate concern of cultivators and producers is that CR packaging is costly. Another issue companies might have with this is that they will have to implement CR packaging in a way that makes the product still visually appealing. This is easier said than done because there are not a lot of CR packaging that offer both functionality and visuals.
Perhaps the biggest problem they are concerned about are the brands they can partner with. Many companies have already secured the proper licenses. In California alone, there is an estimated 6,000 growers and cultivators that have licenses. Not all of these brands offer a huge potential for growth and development, however.
Now, partnerships in the cannabis industry are fairly common. Earlier this year, Simply Innovative Products, Inc. was able to solidify its Merger Agreement and Plan of Reorganization with White Label Liquid Inc. (OTCMKTS:WLAB). The leader of the merged brands is WLAB CEO Yaron Elkayam who will assume the position of sole officer and director of the company.
The partnership was great on the part of Simply Innovative Products. WLAB specializes in developing business solutions and logistics for CBD and e-liquid manufacturing. With WLAB’s expertise in market strategies, it can easily penetrate the California market even if it is going to implement new regulatory standards.
Companies in the state can even consider becoming a part of WLAB’s growing family or they could turn towards it for strategies regarding the steps they should take to balance out their packaging with regulatory standards.
Thanks to its state-of-the-art facilities, the company can provide businesses with everything it needs to launch as early as two weeks. White Label Liquid’s developers and engineers are experts when it comes to developing a diverse lineup of products, and all they need is two weeks to complete CBD products with a distinct flavor, labels and packaging.
The big question amidst all this of course is why regulation is such an important aspect of the cannabis industry. Many states are developing standards that cannabis brands should abide by and while some companies may find this worrying, it is all for the greater good of the industry.
Why regulation is crucial for the industry
Aside from keeping consumers safe, regulation keeps the legal marijuana market strong. The regulation allows people to ease into the product with fairly minimal concern as there is a certain form of security that comes from various government agencies and regulatory commissions.
In the case of California’s new regulatory commission, the state wants people to see that marijuana is more than just a commodity that people once considered as a highly dangerous drug. By giving it the same treatment as medicine or other health and wellness products, people will see cannabis in the same light as well.
The cannabis industry is one of the most regulated sectors currently. That should be a given though as it is changing at such a rapid pace. Once the dust has settled and all that’s left to regulate has been regulated, cannabis companies will come to understand why such changes are vital for the growth of the industry as a whole.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of CBD News, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof.