The Great Misconception About The Potency Of Cannabis Products

By Paul Botto, co-founder and president of Lucid Green

Inconsistent testing and potency inflation paired with rampant counterfeiting drive the overall misunderstanding of cannabis product potency and perpetuate the stigma that the cannabis industry isn’t legitimate. 

In Los Angeles alone, there are over 500 illegal dispensaries selling potentially dangerous or mislabelled products. Even legal and regulated dispensaries experience potency concerns due to corrupt labs cheating the system, the lack of national standards and grower’s lab shopping to dish out higher THC numbers. The incentives to inflate THC potency numbers reached new proportions in 2022 but this year presents an opportunity to right the ship through supply chain tech innovations. 

Potency Inflation Is Confusing Consumers 

As legalization of cannabis continues across the country, many are worried about what their product contains. Hard Hitters got burned when counterfeit products with their branding were discovered in LA shops. In New York, fake vapes and counterfeit Jetty cannabis products are threatening the legal weed market, leading to serious health concerns. There isn’t a consistent testing standard, so the reports vary from lab to lab making it hard to easily identify counterfeit products. 

Besides consumers being confused about how verify what’s in their product, there’s a narrow-minded emphasis that THC content determines a product’s performance, which is misplaced. Research published in JAMA Psychiatry found THC content alone is a poor indicator of potency. Cannabis potency should also be evaluated from terpene content. Terpenes are naturally occurring chemical compounds found in the cannabis plant that affect the taste and aroma of the product.

Tech Fosters Transparency For All 

Transparency in testing and labeling impacts every cannabis stakeholder. All parties need to understand what the end products consists of and its true potency to uphold regulatory frameworks and ensure consumer safety. New York state recently updated its testing guidelines due to conflicts between the actual and advertised levels of THC in several strains. As tech continues to be a driving force in our day-to-day lives, manufacturers and retailers can use this shift to their advantage to create a consistent information sharing pipeline. 

The digital transformation of the cannabis industry isn’t just for the sake of transparency, which is important, but it’s also to meet state-mandated regulations. Some states offer a little to no wiggle room in terms of allowable content variance on a product label. For example, the margin for error is +/- 20% in Arizona, +/-15% in Michigan and +/- 10% in California. Employing supply chain tech to level set potency can hold the industry accountable. 

Innovation In The Cannabis Supply Chain Is The Key  

As a relatively new industry, cannabis isn’t immune to supply chain issues. With nearly 25% of businesses losing over $500,000 worth of revenue due to supply chain snarls and product shortages. it’s imperative cannabis companies learn from other mistakes and use tech to its advantage. Supply chain innovations are key to ending potency misconceptions. Leading ancillary businesses in supply chain are able to digitize cannabis testing results and track, update and share with the public.  

Many cannabis labs are exceeding guideline expectations due to implementing supply chain technology. Pointing out potency inflation isn’t going to be a popular opinion as it challenges the notion that THC content is king and requires many stakeholders to change. Further, fostering transparency in a consumer-packaged goods industry that is battling rigorous and inconsistent regulations is a challenge but not insurmountable. Implementing supply chain technology within the industry is the change it so desperately needs to stop the misconception of cannabis potency. Leading manufactures and brands will rise to the challenge and set the record straight.