Pubdate: Fri, 30 Jan 2015
Source: Denver Post (CO)
Copyright: 2015 The Denver Post Corp
Contact:  http://www.denverpost.com/
Details: http://www.mapinc.org/media/122
Author: Ricardo Baca

NEW RULE BOOK FOR "POT FOR BEGINNERS"

Industry Adjusts to New Packaging, Potency

Colorado's pot industry will face its first major regulatory shift of 
2015 on Sunday when popular but controversial infused edibles will be 
forced to comply with new packaging, labeling and potency 
restrictions passed last year.

Under the new regulations, edibles sold recreationally must be 
wrapped individually or demarked in increments of 10 or fewer 
milligrams of activated THC, the major psychoactive ingredient in 
marijuana. The state's recommended dose is 10 milligrams. Edibles 
packaging, too, is changing as new, more child-resistant restrictions 
go into effect.

Often considered pot for beginners, edibles make up roughly 45 
percent of the legal cannabis marketplace in Colorado.

But the first year of legal sales was not without problems. The death 
of a Wyoming college student who jumped from a Denver hotel balcony 
after eating an infused cookie, a surge in the number of children 
brought to emergency rooms for accidental marijuana ingestion and the 
sheer popularity of edibles with tourists led to calls for tighter regulation.

The changes grew out of the findings of a work group that included 
representatives from the state's Marijuana Enforcement Division, the 
industry, parent groups, hospitals and law enforcement agencies. And 
while the switch is costing pot businesses, the industry is speaking 
out in favor of the regulations. Consumers stand to benefit, not just 
from rules that should make consumption safer but in cut-rate prices 
in the short term.

"In clearly marking what the dose is, hopefully that will lead to 
more responsible use and public education," said John Lord, owner of 
LivWell, which has nine pot shops in Colorado. "It keeps us safe, and 
it provides uniformity for the product itself."

The Post requested comment this week on the new rules from the state 
Marijuana Enforcement Division, but a spokeswoman said no one was 
immediately available.

Playing it safe

An example of the shift is seen in Dixie Elixirs' popular infused 
mints. The mints used to come loose in a tin, 10 mints at 10 
milligrams each ( 100 milligrams total). Dixie's new mints come 
packed individually in blister packs, similar to some pill and gum 
packaging, 16 mints at 5milligrams apiece ( 80 milligrams total).

The reason behind the lower potency: Dixie is playing it safe, making 
sure the now-individually wrapped edibles wouldn't surpass 10 
milligrams apiece-hoping to cash in on the state's new incentives, 
including less stringent testing, for low dose products. The new 
mints as a package also are less likely to top the state's 100- 
milligram limit. If a recreational edible tests for more than 100 
milligrams of activated THC, its maker risks being forced to destroy 
the entire batch.

"A lot of us are being conservative when we approach product 
development," said Dixie marketing chief Joe Hodas. "Instead of 
pushing the upper limit of a 100- milligram product, we'd rather put 
out a 90milligram product."

Edibles company The Growing Kitchen already was focusing on low- 
dosage edibles, so its preparation for the Feb. 1 deadline was mostly 
on the packaging end, according to Cody Mayasich, a sales lead at the company.

"We started preparing for the child-resistant packaging in August, so 
we're already sending out compliant packaging this week," said Susan 
Armitage, an executive assistant at The Growing Kitchen. "We're very 
excited for the change. We think it's good for the industry and for 
safety reasons and corporate responsibility."

Other companies are phasing out infused edibles that couldn't work 
under the new recreational regulations. Dixie's high-dosage 
recreational 100- milligram Colorado Bar will become extinct as of 
Feb. 1 - and that leaves Dixie needing to unload some of its soon-to 
be noncompliant inventory.

"Because of these changes in packaging and serving size and potency, 
a lot of our products are going to change," Hodas said. "The 
dispensaries are hesitant to take new product because they won't be 
able to sell high-dose products like our Colorado Bar, which is a 
single serving item that has 100 milligrams, after the end of the month."

That's why Dixie is partnering with marijuana chains Euflora and 
LivWell to offload its old product. Dixie's wholesale price to 
Euflora was recently cut by 50 percent with the understanding that 
the store would keep costs low for its customers, according to 
Euflora owner Jamie Perino.

"I'm running a bunch of ads in magazines and newspapers advertising 
blowout sales, trying to get stuff moving," said Perino, who owns 
shops in Denver and Aurora. "I'd rather run out and have shelves 
empty than have a bunch of product on the shelves that needs to be destroyed."

Cut-rate deals

Euflora's normal price on a Dixie Elixir infused drink with 70 
milligrams of activated THC: $ 22.50. Her current price on the almost 
non-compliant Dixie drinks until she closes shop on Jan. 31: $ 7. And 
she's not alone. "We are doing 40 percent off all recreational 
edibles at all of our recreational stores until Feb. 1 so we can 
offload all the product," said Brian Keegan, director of retail 
operations for LivWell.

The temporary price cuts are substantial, especially when you 
consider that the cost of a recreational eighth of marijuana at 12 
prominent Colorado pot shops dropped only by 9 percent from January 
2014 to December 2014, according to Denver Post data.

Some stores are pushing 30 percent to 40 percent discounts through 
the end of January, while others are offering deals in which 
customers can buy one and get another for a penny.

These regulations are only the beginning. The work group that helped 
create them in 2014 never reached a place of full agreement.

At one point, Colorado health officials proposed a ban on most forms 
of edible marijuana, and the industry fought back immediately.

"Even though I would have shaped it a little bit differently," said 
Dixie's Hodas, "this is a necessary step in the growth process for 
the industry. We all agreed: ' We have an issue here. Let's head it 
off at the pass and make some changes.' And most would agree that 
most of the changes we're making are positive for here and the rest 
of the country."

[sidebar]

Changes for pot-infused edibles

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Starting Sunday, marijuana-infused edibles face new state-mandated regulations:

Packaging: Each standardized serving, which, according to the state, 
is 10 milligrams of activated THC, must be demarked "in a way that 
enables a reasonable person to intuitively determine how much of the 
product constitutes a single serving of active THC."

Labeling: There will be more explicit warnings and thorough 
information on labels, including warning statements such as "This 
product is unlawful outside the State of Colorado" and "The 
intoxicating effects of this product may be delayed by two or more hours."

Potency: The Marijuana Enforcement Division is providing incentives 
for companies to produce 10 milligram products by putting greater 
burdens on manufacturers of products between 10 and 100 milligrams.

The changes mean many edibles companies are being more conservative 
with dosing sizes.
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MAP posted-by: Jay Bergstrom