One Big Step Toward a Better Edibles Market

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Research is necessary to legitimize any new industry, and cannabis is no exception.

Until 2015, one American university—University of Mississippi-Oxford—was the sole source of marijuana for sanctioned clinical research. That monopoly ended on the heels of burgeoning legalization, with the Drug Enforcement Agency changing the rules to allow any educational institution to apply for permission to grow their own. Just as the industry is establishing its leadership now, the opportunity for securing scientific renown is ripe.

Creso Pharma has identified a white space and developed a solution to capitalize on our pharmaceutical background, deep cannabis knowledge and legalization across Canada. With this in mind, our Nova Scotia facility, Mernova, has been declared the Centre of Edible Cannabis Research, Development and Refinement.

Why “Edible” in the name? Demand and responsibility.

First, demand: The edibles market is strong and swiftly growing. The edibles segment accounted for 10% of all cannabis sales in California in 2017 and is anticipated to settle as twice that for 2018. To satisfy this demand, manufacturers have gone beyond the stereotypical brownie to present a wide range of options for consumers, including butter, marshmallows, chewing gum, even beef jerky. The approachability of familiar food products carries with it a challenge, however: the often unpredictable nature of edibles.

General clarity around dosing, ingestion and activation time is needed. Once this hurdle is passed, a more knowledgeable consumer base no doubt will demand clarity about quality, consistency and anticipated effects.

Enter responsibility: Our work is differentiated in part by our extensive background in pharmaceutical practices. The same strict protocols necessary for responsible, safe pharmaceutical development have informed the planning of our facility and operations. Besides applying our stringent quality standards to self-made products, a byproduct of our supplementary white-labeling services will be influencing an industry-wide expectation of responsible manufacturing.

The result? Consumers and the industry alike will benefit from a marketplace of edibles with predictable effects. Users will be primed to expect terms like “high-quality” and “lab-tested” to be associated with consistent results. And to usher in greater clarity and further establish ourselves as a trusted source of cannabis, our self-manufactured products will be positioned to target specific consumer outcomes, such as enhanced energy and restful sleep.

At Creso, we’re dedicated to taking an active role in setting the standards for the cannabis industry and performing beyond expectations to make safe, reliable products. The Centre of Edible Cannabis Research, Development and Refinement is one big step toward that vision.

With Nationwide Legalization, Canada Opens a New Global Frontier

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This month, as its Cannabis Act goes live, Canada enters a new age of private freedom and public progress. At the individual level, adults may now legally possess and use limited quantities of cannabis. At the national level, as the first G7 country to legalize on top of an established medicinal use system, Canada has taken big steps toward positioning itself as a global leader in cannabis production, distribution and responsible regulation.

Beyond the social advancements within Canada, this measure represents the tipping point for acceptance of cannabis throughout the world and the inevitable opening of a new global marketplace. As Creso’s CEO, Dr. Miri Halperin Wernli, said: “This is an historic milestone for progressive policy in Canada and one which will change the global debate on drug policy. Canada has set the stage for a movement that will be followed by other countries.”

Cannabis is estimated to be a $6.5 billion industry by 2020 in Canada, according to research by Canadian Imperial Bank of Commerce. That’s more than the $5.1 billion Canadians spent on alcohol in 2017 and a figure fast approaching wine sales. More equity capital has been raised in Canada for cannabis companies than anywhere else in the world, with over 50 cannabis related companies listed on the Canadian exchange.

It’s clear that demand will immediately outpace supply in Canada, creating a huge opportunity for licensed suppliers to expand, new brands to enter the market and industry leadership to be established.

Having anticipated this pressing dearth in supply and booming investment activity, Creso’s Canadian subsidiary Mernova worked to have its application for a cultivation license accepted by Health Canada this month. (Creso remains the only company listed in the Australian Securities Exchange that owns a cannabis facility in Canada and that will be able to reap the benefits of being able to supply this growing market.) The Mernova facility, which has been constructed to full Good Manufacturing Practice (GMP) standards, is designed to produce an annual yield of three to four tons of dry cannabis.

Beyond positioning itself as a responsible cultivator of quality plant material, Mernova will market its cannabis to a primed public under the brand name Ritual Green. Other forward-looking plans for Mernova include leveraging Creso’s Swiss food engineering capabilities and technologies to form the Canadian Institute for Research and Development of Human and Pet Edible Cannabis Products.