Hartford Business Journal

HARTFORDBUSINESS.COM | AUGUST 21, 2023 19 CTPharma employee Kyle Gibson stuffs and packages a pre-rolled cannabis joint in the company's Rocky Hill grow facility. HBJ PHOTO | STEVE LASCHEVER What's In The Name? CT relaxes naming restrictions for recreational cannabis products By Skyler Frazer sfrazer@hartfordbusiness.com N early a decade after Connecticut began allowing medical marijuana sales, the state has finally begun to loosen restrictions on product names, a move prompted by the state's legal- ization of recreational cannabis use. The shift, industry experts said, could help alleviate consumer confusion, and possibly provide a boost in adult-use sales, which have gotten off to a slower start than originally projected. The state's medical cannabis industry, which began sales in 2014, had strict regulations on product names, including restricting the use of "recreational sounding or street names" like haze or kush, which are traditionally associated with different marijuana strains. Those restrictions remain in place for cannabis products sold solely to medical customers, but have been relaxed for recreational or hybrid products. The change — inscribed into the sweeping adult-use market legaliza- tion law adopted in 2021 — is just now starting to have an impact. Three of the state's four marijuana cultivators in recent weeks have received approval from the state Department of Consumer Protection (DCP) for cannabis product names using kush and haze. Prior to July, the DCP had not approved products with those strain names. "We're very happy to see that the state is turning the corner on allowing those original names to have a place in the market," said Tripp McDermott, chief operating officer of Verano Holdings Corp., a multi- state cannabis company that owns Rocky Hill grow facility Connecticut Pharmaceutical Solutions Inc. (CTPharma) and several dispen- saries in Connecticut. "It's really important because it's easier for the consumer to understand the heritage of the strain, and it's just more trans- parent to the end consumer rather than having a pharmaceutical name that doesn't really mean anything." McDermott said Connecticut's naming restrictions have been unique compared to other states. "We have not had this type of regu- lation in any state that we've been in from a naming convention perspec- tive," he said. Altering names McDermott said cannabis strain names are important. Like tomatoes, peppers and just about every other type of fruit or vegetable, cannabis comes in a variety of strains that have different tastes, smells and effects. For example, kush is a cannabis variety that originated from the Hindu Kush mountains and is known for its heavy and sedative effect, according to Leafly, a marijuana education website. Haze is a strain that has its roots in California. It creates energetic and creative feelings that can help with stress, anxiety and depression, according to Leafly. Another strain, G-Purp, is known for its lush buds, and creates calming, relaxing, euphoric feelings. In Connecticut, those names haven't been allowed on products sold to medical cannabis customers. For example, CTPharma has sold its G-Purp brand in other states, but in Connecticut, it has called the product Purpalex. Being able to reliably identify a particular strain by name could be the difference between a good or bad consumer experience, McDermott said. McDermott said the state Depart- ment of Consumer Protection notified growers earlier this year they could start altering names of products sold to recreational customers to align with legacy strains. All cannabis product names must be registered with and approved by the agency. CTPharma received the first approval for a name containing kush on July 6 for its Seattle Sour Kush product, and the first containing haze on July 17 for its Nigerian Haze x Black Piff, DCP records show. Curaleaf and Theraplant have also each received approvals for a kush brand name, DCP records show. Shipman & Goodwin Partner Sarah Westby, who chairs the Hart- ford law firm's cannabis group, said the state was concerned about legacy cannabis names being associated with the black market or "unlawful" marijuana products when the medical program launched, leading to the strict naming guidelines. However, some name restrictions still remain for the recreational market, aimed largely at preventing products from attracting children, or sounding confusingly similar to non-cannabis goods. Medical-only products must also retain their more discrete brand names. Benjamin H. Pomerantz, a lawyer in the cannabis group of law firm Carmody Torrance Sandak & Hennessey, said his clients "know the value" of legacy cannabis names and have been more vocal about changing the tide when it comes to naming conventions. Sales impact Product name confusion is one of several consumer-centric issues facing the state's cannabis industry. Other issues revolve around product quality, consistency, variety and sales. According to the most recent data from the state, adult-use cannabis has generated almost $69 million in revenue from Jan. 10, when sales were first allowed, through the end of July. Adult-use sales have increased monthly, but tax revenue generated from the market is still a far cry from what the state projected in 2021. Connecticut's Office of Fiscal Anal- ysis initially projected the state's cannabis industry would generate $20.4 million in tax revenue in its first full year of operation, and over $55 million in its fourth year. Through six months of available data, recreational sales have gener- ated $6 million in tax revenue. Still, Pomerantz said the state's adult-use market overall is doing well, especially considering the slow roll out of many new recreational mari- juana businesses, including growers, dispensaries, delivery service providers, etc. McDermott said he doesn't think new customers will begin to visit dispen- saries solely because product names are changing, but customer familiarity with brands, such as kush and haze, provides potential upsell opportunities for impulse purchases at checkout. Someone is much more likely to buy a G-Purp pre-roll than a Purpalex pre-roll, he said as an example. "If you don't know what it is, it might not speak to you as much as if you knew it was OG Kush, or something like that," McDermott said. "I think that will improve sales ultimately. That's how I see the old-school naming conventions playing a part in increasing sales." RECREATIONAL CANNABIS PRODUCT NAMES APPROVED BY THE DEPT. OF CONSUMER PROTECTION* COMPANY NAME CTPharma Black Haze Nigerian Haze x Black Piff White Tangie Haze Cold Bubba Kush Cotton Kush Emerald Kush Seattle Sour Kush Wedding Kush Curaleaf Kush Mints Theraplant Purple Afghan Kush *As of Aug. 10 | Source: Dept of Consumer Protection

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