The Cannabis Operations

October 2020 • Issue 4

The Cannabis O P E R A T I O N S

Pay it forward

A look into the women-owned cannabis cultivator Autumn Brands

Autumn Shelton and Hanna Brand, Co-founders, Autumn Brands

Pay it foward

A look into the women-owned cannabis cultivator Autumn Brands

Afresh perspective. That is one of the calling cards for Autumn Brands, a Santa Barbara, California licensed cannabis cultivator that is the perfect vision of two families committed to health and wellness. Started more than a century ago in Holland, the sixth-generation farmers apply the same expertise garnered in growing the world’s finest tulips to producing pure and potent strains of cannabis.

Co-founded by Autumn Shelton, Hanna, Hans and Johnny Brand—hence the name—the company embraces the values of fairness, honesty and trust. As one of the first women-owned cannabis businesses in California, the brand uses traditional farming techniques, natural sunlight and pesticide-free cultivation. Autumn Brands continues to increasing its standing in the cannabis world with initiatives like its Brand Ambassadors, which conducts PAD’s (Patients Appreciation Days) maps, Kushy and Budly are popping up in major cities to seamlessly connect consumers with product. Online

around the area. Today, Autumn Brands is doing in-store demo’s locally in Los Angeles and Orange County. We sat down with co-founder and CFO Autumn Shelton to get her take on where the market is heading as cannabis moves into another phase of growth and opportunity.

GIVE US A SNAPSHOT OF YOUR BRAND? Autumn Brands (www.autumnbrands.com) is a licensed California cannabis cultivator dedicated to the synergy of health and wellness. The Autumn Brands’ family the sixth-generation farmers apply the same expertise garnered in growing the world’s finest tulips to produce pure and potent strains of cannabis in sunny, coastal Santa Barbara County. Autumn Brands is proud to be 50% woman-owned, and free of pesticides.

WHAT TYPE OF CONSUMERS ARE YOU TARGETING? Our products are for everyone 21 and over who is looking for a fresher, cleaner cannabis experience. Our customers lead busy lives and are looking to counteract daily stress by eating mindfully, exercising wisely and reflecting on relaxation choices. Autumn Brands Cannabis aids customers reaching a higher state of peace and tranquility, while bringing balance to life. Our customers are primarily focused on wellness, balance and holistic health.

WHAT KIND OF ADJUSTMENTS HAVE YOU MADE IN TODAY’S NEW LANDSCAPE? As more states legalize the use of marijuana in some form, technology will likely play a large role in dispensaries’ interaction with consumers. Apps like Weedfarm started in Holland more than a century ago. Today,

ordering for curbside pick-up is also becoming increasingly popular, particularly in the wake of COVID-19 and social distancing measures.

WAS YOUR OPERATION DEEMED ESSENTIAL DURING THE LOCKDOWN? Yes, we saw a major increase in dispensary purchases as local municipalities started shelter in place orders. They couldn’t keep products on the shelves and wanted two to three deliveries per week. Once cannabis was deemed essential, the panic buying stopped, but sales have continued at a solid pace. There is still a limit to how much a consumer can purchase in one day, so consumers need to continue to go back in order to get more than an ounce. Only time

will tell how sales will continue. As financial situations and behaviors change we will see new consumers and current consumers adapt by purchasing more, less, different price points and different types of products.

WHAT IS YOUR SHORT-TERM AND LONG-TERM STRATEGIES? Our short-term strategy is continue to grow at rate that we can remain profitable and cash flow positive and enjoy what we are doing. Our long-term strategy is to expand our cultivation footprint, diversify our genetics, and develop new and exciting products for our consumers. WHAT IS THE BEST PIECE OF ADVICE YOU CAN OFFER FOR DEALING WITH WHAT’S HAPPENING IN TODAY’S MARKETPLACE? The marketplace has been hot since our industry was deemed essential. We have seen demand ebb and flow over the years, so it is important to know the high demand can shift at any moment and to be prepared for financial highs and lows.

TALK ABOUT SUSTAINABILITY. WHAT ARE YOU DOING? We are committed to sustainability of our planet and making sure all humans, animals

and the earth remain healthy and viable. We use a closed-loop watering system ensuring no water is wasted, but instead re-used and recycled and all of our organic waste is also recycled into compost. We do our best to limit the amount of packaging materials we use with our products, such as using glass jars and biodegradable plastics when possible.

WHAT TYPE OF OPPORTUNITIES DO YOU SEE MOVING AHEAD? Our biggest opportunity is that it is still a brand new industry. There is no glass ceiling and the opportunities are endless for growth, creativity and education.

WHAT TRENDS ARE YOU SEEING? Diminishing stigma: These five states (Recreational: Arizona, Montana, New Jersey, and South Dakota; Medical: Mississippi) voted on election day whether of not to legalize marijuana. Additionally, Mississippi, Alaska, California, Colorado, Illinois, Michigan, Nevada, Oregon and Washington all have formally announced cannabis businesses are “essential” during this pandemic.

Legislature: The most important bills to get passed right now are those that involve the health and wellness of humanity and provide stimulus to the economy.

Pay it forward: During this pandemic, essential businesses have the opportunity to continue operating under strict new operating procedures, so it is important to give back to those that are not as fortunate.

Research: We will likely see new research into unknown cannabinoid effects and how, together with terpenes, this plant can help so many more people. Social injustice: As education around cannabis grows during this pandemic and more states legalize, the demand will increase to free those incarcerated for marijuana-related offenses. Cannabis topicals: We will see a large increase in topical product development and sales next year. Top photo courtesy of Willis Jacobson Editor, Weed Week

Sustainable and ethical grow techniques: The year of health is 2020-2021.

Virtual technology: As more states legalize the use of marijuana in some form, technology will likely play a large role in dispensaries’ interaction with consumers.

WHAT IS TODAY’S CONSUMER LOOKING FOR? Quality over quantity. This has been a main factor in bringing our company to where it is today. Our farm is 100% spray free, [with] no pesticides, herbicides or fungicides. We also do all of our processing by hand, from the harvesting, bucking, trimming and packing.

TELL US WHAT MAKES YOUR BRAND SO UNIQUE? We are 50% women-owned and sixth-generation farmers. Sustainability has always been a top priority for both the brand family and

Autumn’s family, and definitely helped shape our farm and brand. We grow in the same hydroponic system the flowers were in and were able to reuse the infrastructure instead of buying new. It is a closed-loop watering system, meaning there’s no runoff and everything is recycled and reused. We are 100% spray free, so no harmful chemicals are getting in the environment. All of our green waste is brought to a facility to be turned to mulch.

ONE-ON-ONE WITH... Autumn Shelton, CFO, Autumn Brands

Describe a typical day. There is never a typical day. This industry keeps us on our toes. Every week for me consists of keeping an eye on our financials, KPI’s and sales, oversee payroll, making sure everything we do is compliant, work with the county to get us through an already 2 year permitting process, make sure our company staff is happy and healthy, support my partners and managers in whatever they need, make decisions on marketing and strategize our next steps.

Biggest thing on your to-do list? The most time consuming thing I am working on at the moment is transitioning to a new payroll company, which has been a very long and tedious process, but I know it will pay off once its complete! And the most exciting thing is our new topical product that will be hitting the market in December after two years of R & D. Most rewarding part of your job? The most rewarding part of my job is knowing how incredible this plant is and how many people it helps whether its medically or recreationally. And that I get to help develop an amazing company with my husband and friends (partners).

Best advice you ever received? Stay frugal when you can be and spend money when its important and will make a measurable difference.

Best thing a client ever said to you? That they respect who we are and the products that we produce.

How do you like to spend your down time? I love to go camping with my husband, almost five year old son, one year old daughter, our parents and friends.