Hartford Business Journal

HARTFORDBUSINESS.COM | JULY 8, 2024 21 scope, but now that the legislature has expanded its capabilities, the company plans to outfit its future East Hartford warehouse with manufacturing equipment. "The packaging license, as it stood at that time, the only thing that you could do essentially was to apply a label to a packaged product," she said. "So, we started talking to the General Law Committee to make them under- stand 'hey, this is a difficulty that all packagers have,' and this is a legisla- tive issue, not a regulatory issue. So, that's why we've been advocating for those changes for the past two years, and we got them." Business potential Justin Frytz said White Oak's main customer base will likely be new companies entering Connecticut's cannabis market. Existing growers, mostly made up of companies that have been operating in the state since the 2014 launch of the medical mari- juana industry, already have most of their logistics set up, so connecting with new startups is crucial, he said. "Our goal is really to get in front of all the other new licensees that haven't gotten to active status yet because now they can see that we're an option for them for support services and they won't have to worry about logistics," Justin Frytz said. In addition to traditional marijuana product distribution and warehousing, the company sees huge potential in cannabis and hemp beverages. They're currently working to obtain the necessary wholesale license to distribute these drinks to liquor stores, which are permitted to sell cannabis and hemp beverages thanks to legisla- tive changes passed earlier this year. "It is a trend that will continue to grow because the number of people who are looking for alcohol alter- natives and 'mocktails' is going up. THC beverages are filling that space," Justin Frytz said. "This way, no matter what business we're using our vehicles for, they're continuously out on the road and operational, whether it's the hemp beverage distribution or adult-use cannabis transportation. So, it allows us to be a lot more oper- ationally efficient and generate more revenue for our business." Future legislative changes White Oak Bridge's founders will be handling all deliveries before ultimately hiring drivers as business ramps up. Once fully operational, the company expects to have between 20 and 30 employees, Justin Frytz said. And its work lobbying lawmakers isn't done. Angie Frytz said she will be back at the legislature next session to push for changes that would consolidate into one license transporter and warehousing and storage services. It's too cumbersome to operate under different licenses, she said. Connecticut's cannabis transporter license requires same-day service, meaning products must be picked up and delivered to their final destination within the same day. "Ideally, we'd be able to go to 'manu- facturer A,' pick up their 40 orders for the week, and then go down the street to 'manufacturer B,' do the same thing, and bring it all back to our facility, consolidate it with other orders going to the same retail establishments and put them back out with another route," Justin Frytz said. "In any other industry, that's how logistics work." Santiago said he expects further changes in the cannabis industry as the sector and market conditions continue to evolve. "We'll have to continue to learn more and more as it changes — adapt or die," Santiago said. Applications received for adult-use cannabis licenses in CT LICENSE SOCIAL EQUITY COUNCIL GENERAL LOTTERY TOTAL TYPE LOTTERY APPLICATIONS APPLICATIONS APPLICATIONS Retailer 8,260 7,208 15,468 Micro-cultivator 5,527 2,935 8,462 Adult-use cannabis medical hybrid retailer 6,840 1,276 8,116 Food and beverage manufacturer 1,008 949 1,957 Delivery service 937 259 1,196 Product manufacturer 431 423 854 Transporter 165 324 489 Product packager 108 354 462 Totals 23,276 13,728 37,004 Source: CT Dept. of Consumer Protection RSVP at SouthernCT.edu/STEMDBA Learn about Southern Connecticut State University's STEM Doctorate in Business Administration. This innovative program bridges the gap between business disciplines and STEM fields, allowing students to leverage insights and methodologies from both areas to tackle complex business challenges and develop business resilience. STEM Doctorate in Business Administration (DBA) OPEN HOUSE JULY 23, 2024 12:30pm - 2:00pm SCSU School of Business

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