Think You Can Do It All? 20,000 Reasons Why Automation Outperforms A Broad Approach In Cannabis

In an exclusive interview with Benzinga Cannabis, Alain Vo, CEO of LeafyPack, discussed the impact of automated cannabis packaging solutions on operational efficiency and cost reduction.

Alain detailed how his company's technology is helping cannabis producers streamline their packaging processes, ensuring consistency and reducing labor costs.

The Role Of Automation In Cannabis Packaging

Vo highlighted the critical role automation plays in enhancing efficiency for cannabis producers, particularly in the pre-roll segment, which remains the most popular and fastest-selling product in the cannabis market. "They are the fastest selling, lowest margin product out there in the market," Vo noted. This makes them a prime candidate for automation, as the process can be time-consuming and labor-intensive when done manually.

"There was always a need to figure out how we can make pre-rolls faster because they're very time-consuming. If you do them wrong, they're very ugly. They don't look good, they're cosmetically deformed, they're overweight or underweight," Vo explained. To address these issues, LeafyPack developed a pre-roll machine capable of producing between 800 to 1,000 consistent pre-rolls per hour.

Pre-rolls, despite their popularity, offer the lowest profit margins in the cannabis sector, making cost-effective production crucial. "Automation came in because operators wanted consistency. They were tired of theft, and the cost of labor was high due to the revolving door of temporary workers," Vo shared.

Automation allows producers to scale their operations without a proportional increase in costs.

Addressing Industry Challenges

LeafyPack's initial attempts at automation included using a volumetric filling system, which employed an auger to fill the pre-roll cones. However, this approach proved inadequate due to the inconsistent nature of cannabis. LeafyPack shifted its focus to developing a weighing system that could handle the unique properties of cannabis more effectively. The company invested two years to creating a machine that could weigh the product accurately before filling it into the cones.

The development process was complex and involved collaboration with engineers who provided insights into similar challenges faced in the tobacco industry. The final machine, introduced at the end of 2022, integrated both vibratory and tamping mechanisms to ensure that the product was packed tightly and consistently within the cones.

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Modularity To Escalate Quickly

Vo highlighted LeafyPack's commitment to providing scalable and modular solutions tailored to the unique needs of cannabis producers. "We work with clients to find out what their bottlenecks are," he said.

For smaller operators, scalability is often a key concern, as they need solutions that can grow with their business without requiring significant reinvestment. LeafyPack addresses this need through its modular equipment design, which allows clients to start with basic automation systems and expand their capabilities over time.

One of the foundational pieces in LeafyPack's lineup is the multi-head scale, a versatile machine capable of handling both flowers and edibles with high accuracy. "You can start with a multi-head scale and upgrade as you grow," Alain explained, illustrating how this equipment serves as the starting point for many companies.

The multi-head scale is particularly valuable for operators who need to switch between different products, such as flowers and edibles, without investing in separate machines. It offers flexibility by allowing users to switch between product types with minimal reconfiguration.

In addition, LeafyPack offers modular components, such as the eco-bagger, which allows for semi-automated packaging. For companies ready to scale further, LeafyPack also provides options to upgrade to more advanced systems, such as the rotary bagger, which significantly boosts production capacity.

The eco-bagger, suited for smaller operations, packages 15 to 16 units per minute, or about 1,000 units per hour. Upgrading to the rotary bagger boosts output to 120 units per minute or roughly 7,000 units per hour. This scalability allows producers to meet growing demand efficiently.

Automating Vape And Distillate Production

LeafyPack has developed specialized machines to streamline the production and packaging of vape cartridges and other liquid cannabis products.

The flagship product in this category is LeafyPack's vape cartridge filling and capping machine, which is designed to handle a variety of concentrates, including distillates and live resin. "The vape cart machine has the same concept as our pre-roll machine; it's in a rotary style because it reduces the footprint," Alain explained.

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The machine operates with two hoppers—one for the vape cartridges and another for the caps. It fills the cartridges with the chosen concentrate and then caps them, either by twisting or pushing the caps on, depending on the cartridge type. This process ensures consistency and quality across the production line.

In terms of output, the vape filling machine is highly efficient and capable of filling and capping approximately 1,200 units per hour. "That's just under 10,000 units a day," Alain noted, emphasizing the machine's ability to support large-scale production. This level of automation is particularly beneficial for multi-state operators (MSOs) who need to maintain high production volumes without compromising on quality.

Additionally, the system includes extra reservoirs, each capable of holding a liter of concentrate, allowing operators to switch between different products with minimal downtime.

Automation And Cash Flow

Vo highlighted that automation can define the strategic direction of a cannabis operation. Often, cannabis investors and companies, initially trying to do it all—producing edibles, vape cartridges, pre-rolls, and flowers—lack a clear focus and struggle to find their competitive edge.

However, the adoption of automation can ultimately guide their operations and ensure success in a crowded market.

While offering a broad product range is possible, the real challenge lies in identifying which products provide the highest margins and can be efficiently produced at scale. For example, in Michigan, where distillate is abundant, firms that automate their edible production lines could find them to be the most profitable—if they can produce quickly and cost-effectively.

“Companies go from manually bagging ten pieces at a time to packaging 45 bags of ten-piece gummies per minute," Alain noted. This leap in productivity—up to 2,700 units per hour—allowed them to produce nearly 20,000 bags in a single eight-hour shift.

Automation does not just streamline production, it can redefine a business model. By reducing the number of workers needed for packaging from six to two, companies can reallocate resources to other critical areas, such as expanding their pre-roll and vape lines. "They only package one day a week, freeing up time and resources to focus on other SKUs," Alain explained.

“This shift to automation also ensures better cash flow management where tight margins and intense competition are the norms,” he continued.

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Photo: AI-generated image.