Low prices, over-supply, market saturation - recent headlines from the world of cannabis have portrayed an industry that is going through a significant amount of turmoil.
In Colorado, Marijuana Enforcement Division figures show that in the second quarter of 2022, total cannabis sales were down 21.5% over the previous year. The report also found that the per gram price of cannabis flower is currently at $3.85, 21.5% lower than the previous year.
Falling prices have only further complicated the business challenges of an industry in which, according to an early-2022 report, only 42% of businesses are profitable.
But while cannabis business owners and executives look for ways to stay profitable, one factor they must not overlook is safety.
- Why safety and cleanliness matters in cannabis
The safety risks that cannabis companies face are numerous and can be the difference between building a retail storefront that lasts and one that becomes a Spirit Halloween the next time Fall rolls around.
Poor cleanliness and safety vigilance can increase the likelihood of product recalls. These can happen for various reasons, such as the presence of contaminants like mold or salmonella or errors in packaging and labeling.
But a product recall may not be the worst result. If a cannabis product harms a consumer, the manufacturer could potentially face a ruinous product liability lawsuit.
Product recalls and liability claims can ruin a cannabis brand's reputation and bottom line.
These safety concerns don’t only affect customers.
Failure to adhere to safety and cleanliness standards can also harm cannabis workers.
A manufacturing facility that doesn’t adhere to the safety and cleanliness demands of cannabis can be one in which slips and falls are more likely to occur. Such facilities may be less vigilant about the potential respiratory dangers faced in indoor cultivation, manufacturing, and processing facilities. A failure to adhere to cleanliness demands can also increase the risk of contamination of cannabis products and make manufacturing facilities and retail storefronts more likely to suffer a rodent or pest infestation.
To avoid these critical safety and cleanliness pitfalls, companies must adhere to industry compliance standards and build a culture of safety that makes these guidelines an integral part of daily operations.
- Why cannabis companies need a culture of safety
The Occupational Safety and Health Administration (OSHA) states that safety culture “consists of shared beliefs, practices, and attitudes that exist at an establishment.”
According to OSHA, when properly implemented, a safety culture includes several major benefits, including fewer at0rsk behaviors, greater safety, and low accident rates, as well as low turnover, low absenteeism, and high productivity.
But how does this play out for a cannabis business? Having a safety culture means that employees see safety as a primary, central component of their daily operations and the top priority in decision-making. Once the safety culture is established correctly, it becomes a self-reinforcing way of working.
- The Importance of Compliance Regulations and Standard Operating Procedures
Knowing precisely what constitutes proper safety and cleanliness can be difficult in cannabis. It’s probably obvious to most people that a dispensary needs surveillance cameras and protocols for checking customer IDs. Still, few people probably know that the proper disposal of cannabis waste is an essential part of workplace safety in the industry.
A key way that cannabis companies can know what is needed to ensure safety and cleanliness is by checking the compliance guidelines in their jurisdictions. Often annoying and challenging, the regulatory requirements of cannabis are designed to boost employee and customer safety and should be seen as such.
Cannabis companies can better meet these requirements by developing Standard Operating Procedures (SOPs) to guide them. SOPs are carefully created documents to walk people through the processes needed to meet compliance obligations.
For cannabis professionals, this can take the guesswork out of compliance and safety and provide them with a road map to guide them to a safer, cleaner, and potentially more prosperous workplace.
- Get the right people and tools
Hiring a full-time employee to manage compliance, safety, and quality assurance is a smart option for companies that have the means. With such a team member in place, companies can rest easier knowing that there is someone in charge of keeping up with all of the compliance demands of cannabis - and the frequent updates to these regulations.
A more affordable option for many companies can be a digital compliance and education platform like the Rootwurks Learning Experience Platform. Such platforms can monitor and track compliance management and free cannabis professionals to focus more time and effort on all the other complicated tasks that run a cannabis business.
But whatever solution a company pursues, it is imperative that safety and cleanliness remain a top priority and a vital component of the workplace culture.
Image sourced from Shutterstock
This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Cannabis is evolving – don’t get left behind!
Curious about what’s next for the industry and how to leverage California’s unique market?
Join top executives, policymakers, and investors at the Benzinga Cannabis Market Spotlight in Anaheim, CA, at the House of Blues on November 12. Dive deep into the latest strategies, investment trends, and brand insights that are shaping the future of cannabis!
Get your tickets now to secure your spot and avoid last-minute price hikes.