Independent Testing Initiatives
Catalyst Cannabis Co., a prominent retailer in Long Beach, has embarked on an independent testing initiative to identify potentially contaminated products and trace their origins. This proactive approach underscores the urgency within the industry to restore consumer trust.
Elliot Lewis, CEO of Catalyst Cannabis Co., has implemented a rigorous testing protocol using several state-licensed labs. Despite the logistical and financial challenges, Lewis prioritizes testing high-risk products like pre-rolls and vapes, which are more susceptible to contamination due to the varied sources of THC distillate used in their production.
Regulatory Scrutiny and Industry Response
The Department of Cannabis Control (DCC), California’s principal cannabis regulator, has come under fire following investigative reports by the Los Angeles Times and WeedWeek, which revealed the presence of pesticides in several regulated products. Some products exceeded the safety thresholds set by the U.S. Environmental Protection Agency, highlighting significant consumer safety concerns and posing a challenge for retailers and other license holders.
Catalyst Cannabis Co. plans to randomly test products from its store shelves, focusing on pre-rolls and vapes. However, testing the entire inventory, which consists of thousands of SKUs, is deemed impractical and economically unviable. Lewis emphasizes the necessity of ongoing, selective testing to maintain product safety and uphold the company’s reputation.
Impact of Product Recalls
The heightened scrutiny has already led to product recalls. On June 25, the DCC issued a mandatory recall for a 1-gram Curepen vape cartridge from West Coast Cure (WCC), a leading brand in California. The recall was due to the detection of chlorfenapyr, a banned pesticide in California, typically used to combat various pests in greenhouses.
WCC, implicated in the recent scandal, maintains that all products brought to market undergo thorough lab testing. The company asserts that products failing these tests are destroyed, and quality control tests are conducted on sourced materials to ensure compliance with state standards.
Erosion of Consumer Confidence
The fallout from the pesticide scandal has shaken consumer confidence in California’s cannabis market. Bradley “James” Gude, CEO of Blackleaf SMS Marketing and a loyal WCC customer, expressed his concerns and is considering alternative brands that adhere to regulatory standards.
Catalyst’s Lewis acknowledged a slight dip in business following the scandal and is contemplating in-house certifications based on comprehensive testing results. This move aims to restore consumer trust and reinforce the company’s commitment to product safety.
The Role of Certificates of Analysis (COAs)
In response to consumer inquiries about product safety, The Artist Tree, which operates multiple stores in California, has made certificates of analysis (COAs) readily available to customers. Lauren Fontein, the founder and Chief Compliance Officer, emphasized the importance of transparency and careful vetting of products to ensure compliance with safety standards.
Increased Lab Testing and Industry Accountability
The scandal has intensified the focus on California’s cannabis testing labs, with many operators expressing concerns about the credibility of the regulated market. However, some labs, like BelCosta Labs in Long Beach, view the increased scrutiny as an opportunity to demonstrate their commitment to safety and wellness.
BelCosta Labs has experienced a surge in business, attracting new clients, including large-scale operators and retailers with in-house brands. This uptick follows the suspension of Verity Analytics, a San Diego-based testing lab, by the DCC, prompting many to switch to more reputable labs.
Litigation and Regulatory Oversight
The recent events have also sparked infighting among cannabis brands, retailers, and testing labs. Infinite Chemical Analysis in San Diego and Anresco Labs in San Francisco have filed a lawsuit against several testing labs, accusing them of inflating potency results or ignoring contaminants in COAs.
The DCC has faced widespread criticism for its perceived lack of oversight, which some industry stakeholders believe has emboldened non-compliant labs. George Sadler, CEO and co-founder of the Gelato brand, expressed frustration over the lack of guidance and communication from regulators, particularly regarding product recalls.
Regulatory Response and Enforcement Actions
In response to the scandal, the DCC has increased its enforcement actions across the supply chain. This year alone, the agency has issued 23 product recalls and significantly ramped up license denials, citations, fines, suspensions, and revocations compared to previous years.
The DCC’s spokesperson, David Hafner, emphasized the agency’s commitment to supporting licensees who adhere to regulatory standards while taking aggressive actions against those who do not. Despite the increased enforcement, several brands and retailers linked to contaminated products have declined to comment or failed to respond.
Rebuilding Trust in California’s Cannabis Market
Rebuilding trust in California’s cannabis market will require a concerted effort from all stakeholders. Brands, retailers, and testing labs must work collaboratively to ensure product safety and transparency. Independent testing initiatives, like those undertaken by Catalyst Cannabis Co., and the availability of COAs are crucial steps in this direction.
Consumer education is also vital. Retailers and brands need to communicate effectively with their customers about the measures taken to ensure product safety. Providing clear and accessible information about testing results can help reassure consumers and restore confidence in the regulated market.
Looking Ahead
The pesticide scandal in California’s cannabis market serves as a wake-up call for the industry. It highlights the need for robust regulatory oversight, stringent testing protocols, and transparency at all levels. As the market continues to grow, maintaining high standards of safety and quality will be essential to building and sustaining consumer trust.
By addressing the current challenges head-on and implementing rigorous safety measures, California’s cannabis industry can emerge stronger and more resilient. Ensuring that all products meet safety standards and providing transparent information to consumers will be key to regaining and maintaining their trust in the long term.
