👋 Welcome to the free edition of Lessons from the Grow. 👋

Today’s newsletter is a preview of content you can expect as a premium subscriber. Each week, premium subscribers receive deep dives, grow updates, and tactical information that can be used in their daily lives–both professionally and in the grow.

If you enjoy this letter, I encourage you to check out some other fan favorites:

1. Never Punt - Lessons from Kevin Kelley and the Pulaski Academy Football Team’s Unconventional Strategy.

2. Federal legalization is the end of medical cannabis.

3. The #1 Mistake People Make When Flying with Weed (and 9 Tested Tips For Flying Without Issue)

Get all the details, not just the gist, by subscribing below 👇

Dear Friend & Premium Subscriber-

Working in cannabis, it’s not often that something truly new and “unheard of” comes up in conversation about this plant.

Sure, there are new trends here and there, but, as a cannabis co-author, I regularly have to remind myself how deep down the rabbit hole I am compared to those not engaged daily with this industry. And, as I’m the go-to cannabis guy for many of my friends outside this sphere, “new” topics are generally just older topics that have finally rippled past the industry bubble.

So, when I was catching up with a colleague and friend of mine a few weeks ago, you can imagine my delight to learn of a new conversation happening in cannabis: appellations.

No, not the mountains.

Appellations of origin are a legal structure for the certification of production exclusive to specific and distinct geographic requirements, has come to Cannabis thanks to California’s efforts to protect and promote the generational value of specific cultivation regions and practices, adding a source of legitimacy to the value of unique offerings and protection in the face of scaled corporate cannabis.

Appellations are a concept that most of us are already familiar with due to another popular vice industry: wine. Wine comes from many regions all around the world that offer distinctly different characteristics.

The short version: Wine from Napa costs more because of its appellation of origin.

Grapes grown in specific climates, light, and soils (often collectively referred to as terroir) has unique properties distinct from those grown elsewhere. It is why French wine and specific California Valleys, for example, are more sought after and typically carry a higher price point. Appellations of origin help protect these geographic regions’ inherent value.

With Senate Bill 67, California has become the world’s first government to develop and recognize an appellation program for cannabis cultivators.

Working hand in hand with Napa Valley Vintners Association, activists led primarily by the Origins Council have solidified the first appellation of origin program in the cannabis industry. The goal of these efforts is to "protect and promote these regions legacy cannabis farmers and medicine makers including their genetic, cultural, natural and economic resources."

My friend, Angela Bacca, co-authored the most recent version of Ed Rosenthal’s Cannabis Growers Handbook, which discusses this program in further detail.

I immediately snagged a copy, but because of the pandemic, shipping has been delayed (I just received my copy late last night!). Ed and Angela's publisher was nice enough to send me a preview copy of that section to better inform this newsletter.

If you’re not familiar, Ed has been at the forefront of growing advocacy and education for decades and I recommend grabbing a copy if only to continue to support those who pioneered this industry

(Full Disclosure: Amazon will kick me a few pennies if you buy it using that link).

Appellations 101

Without our even knowing it, most of us can probably name at least one unofficial cannabis appellation.

Humboldt. Mendo. BC.

Shit, technically states like California could be referred to as a very loose appellation for those legacy farmers following traditional outdoor methods.

As the cannabis industry matures, legacy farmers, especially in places like these, are getting squeezed out of the market.

In large markets, corporations with the ability to scale operations and reduce costs have the ability to price out smaller competitors. Without the ability to differentiate, and protect that differentiation legally, the inherent value of age-old intellectual property, practices, and culture will gradually drift out of this industry. A program was needed that informed customers of why certain products grown certain ways had a higher value than their more affordable options.

Appellations solve this problem by establishing industry-recognized standards for cannabis grown outdoors under certain conditions to protect the value and inherent quality of the end product and differentiate it from what can be accomplished in large, indoor grows.

California Cannabis Appellation Requirements

According to Kristin Nevedal, one of the contributing authors to Rosenthal’s recent book, petitioners seeking to create an appellation must:

• Demonstrate historical name use (I.e. “Humboldt”)

• Provide description of specific geographical features affecting cultivation that are exclusive to that appellation

• Provide evidence of distinctiveness and intrinsic nature of quality

• Identify “standard, practice, or cultivar” requirements for cultivation within the appellation

In California, to qualify for an appellation, cannabis must be grown in the ground, without the use of structure (no hoop houses or greenhouses; no light deprivation) nor supplemental/artificial lighting, and irrigation must be sourced within the appellation.

Additionally, in the same way that branding indicates familiarity and standard adherence, appellations afford customers this information. Products marked with geographic indicators have been produced in accordance with appellation standards, as well as offer a geographically unique experience.

Why isn’t this a topic of discussion in all cannabis markets?

The short answer is that there aren’t many places whose outdoor cannabis cultivation industry rival that of California, nor legal markets with such a variety of microclimates that affect the cannabis grown in those locales.

But, as national and global legalization efforts progress, so will efforts to protect the legacy value of cannabis grown in specific regions as winemakers have done with their wares. In markets like California, regulations and corporate interests make it increasingly harder for legacy growers to protect the generational value inherent to their properties and cultivation methods in the face of corporate cannabis warehouses that can sell consumable products for a fraction of the cost.

California is one of the oldest established cannabis markets in the United States, and has gone through may of the growing pains that newly legal markets are currently experiencing.

This affords activists and regulators to focus on additional aspects to this burgeoning industry, such as ways to protect even the earliest participants. Additionally, California’s market, unlike a market like Colorado, is largely made up of outdoor, sun grown cannabis. Sure, there’s outdoor grows (some of the biggest in the country) in Colorado, but outdoor weed is not a dominant, nor sought after, product in this market.

The Impact of Cannabis Appellations

Appellations will have little effect on indoor cannabis producers.

While appellations will not have a direct effect on the products produced, the intention is that there is an effect felt on the market, which might be noticeable at some point to larger corporate interests. Remember, at one time, France didn’t take Napa Valley wine serious, and the beer industry laughed off “craft” brews.

Appellations will have little effect on price-conscious consumers.

Let’s face it: if you’re shopping within a specific budget, you’re shopping with a different purchase intent than someone looking for a unique or exclusive experience. While a price-conscious consumer may want to get the most weight for their buck, a connoisseur may be looking for less overall product but a more distinct set of characteristics such as how that product was grown.

Appellations will have a two-fold effect on the cannabis market:

• They’ll be used in marketing to justify higher price points, and

• They’ll become recognizable value points to informed (and uninformed customers).

I’m not being cynical when I say that marketing will use appellations to justify higher price points; they should. If you are adhering to specific practices and guidelines, and are committed to producing a distinctly different product than lower tier offerings, you should have the ability to charge a higher price point. And customers should have access to education as to why the price point is higher.

Appellations will offer guidance for the informed and uninformed consumer.

Look, I’m not a wine guy. I drink it occasionally, and I know that I like reds more than whites. But, if I’m shopping for a housewarming gift, I know that something from Sonoma or Napa is probably going to cut it without having to dive too much into the vintage, vineyard, etc.

On the contrary, if I’m shopping for a scotch, I’m paying attention to a variety of factors. There’s a specific bottle I may be looking for or a specific cask that was used in a specific year. The regional distinctions are what may guide me to a certain locale, but the added detail inherent to regional standards is what allows me to make nuanced selections.

Cannabis Appellations: Long Term

Both the scotch and the wine industries have long, illustrious histories in legal and illegal markets, but they’ve been around long enough legally to offer insight into the long term impacts of appellations of origin as well.

As consumers are educated and appellations created and recognized, the market will evolve to the likes of whiskey and wine wherein sought-after regions fetch draw not only higher price points on the direct product, but also encourage niche travel and tourism. Recognition of these distinctions will encourage cultivators to preserve and develop local varieties through breeding projects that contribute to the general maturation of the cannabis market and the distinction among its offerings.

Eventually, we will see a shift in the cannabis market related to consumer purchasing behavior.

We are already seeing this in small microcosms already, unrelated to appellations. As consumers become more informed about how the cannabis they consume was cultivated, they are becoming more discerning when purchasing. This is evidenced in the marketing of products such as those grown organically or in living soil; while these are not appellations, they are indicators of quality that speak to the cultivation process and have proven to effect the consumer purchase journey.

Appellations will encourage interstate and international markets once legally allowed.

Let’s face it: If I could have cannabis grown in Campbeltown, Scotland alongside my Longrow Red Scotch produced in the same region under the same standards, I’d be one happy man. And others will see the value in imported cannabis products that are distinct from their local offerings.

Lastly, appellations will further the education of the growing community, increasing the overall quality of the cannabis market.

If everyone grows better, everyone gets better cannabis. By establishing standards for cultivation, growers continue to improve their understanding of how the plant behaves under specific conditions as well as what methodology works in those same environments. The more we understand about the plant, the better we are able to respond to and predict its needs to produce consistently better products for the end-user.

Appellations offer consistency to consumers looking for unique experiences.

As the industry develops, standards help us improve. Without order, chaos ensues and inherent value varies drastically. Specificity is key to creating consistent products that consumers can rely on.

How To Use Appellations to Your Advantage

Technically, unless you’re growing in California, you can’t directly use them, yet.

You can, however, learn something from the premise behind them: creating structure for consistent environments that produce distinctly unique cannabis experiences.

Whether you’re an outdoor or indoor cultivator, make an effort to document your processes, your metrics, your cultivars and how they responded to your environment, everything.

The more informed you are about how the environment affects the cannabis you’re cultivating, the better that cannabis will be at harvest. Plus, you’ll have true data to make informed selections related to different genetics and phenotypical expressions that work better for your specific setup.

Look to the wine industry for ways to take advantage of appellations.

You don’t have to grow cannabis to benefit from these programs. As a consumer, you can develop tasting events or curate regional farm tours, that further educate audiences on the efforts being made to bring quality cannabis from farm to market. As a regulator, you can take note of California’s cannabis program in comparison with historical successes of other industry that rely on appellations to develop programs that further benefit your constituent cultivators and consumers.

Cannabis appellations have the potential to have a large impact on the industry as we know it now, both in protecting legacy value, as well as shifting our perspectives on what makes and how to grow the best cannabis around.

Until next week,

Ben Owens