The lowdown on extraction-refinement processes of today and tomorrow.

Crude extract is exactly that: crude. As an unprocessed material, it must be refined into a specific, desirable form—similar to how the petrochemical industry refines crude oil into petroleum jelly, kerosene, gasoline, diesel fuel, aviation fuel and hundreds of chemicals, among other forms.

Crude cannabis extracts are the result of basic extraction methodologies—be it ethanol or CO2 extraction. Further refinement is usually dictated by the desired end product. For example, a vape pen cartridge has slightly different extraction requirements than an edible. A cartridge may require an extract that has been completely refined to the point that all flavonoids (including pigments) have been filtered or distilled out, resulting in a colorless (clear) extract. An edible may not require use of a clear extract; therefore, some colorants (i.e., pigments and/or flavonoids) can remain, and the extract may require less filtering or refinement.

Filtration techniques have recently evolved, and some extraction companies offer remediation services for extracts and/or distillates that would otherwise not meet testing standards. An example is the removal of contaminants (e.g., fungicides). Filtration comes in many forms, but no matter the method, the first step is usually to winterize the extract, which involves dissolving the CO2 extract in ethanol or a similar solvent. This results in a cannabinoid-rich ethanol slurry. The cannabinoid-rich ethanol then is subjected to sub-zero temperatures to freeze fats, waxes, flavonoids and other undesirable compounds by solidifying and coagulating them, so that they can be filtered out via multiple methods. These filtration methods range from using a Buchner Funnel (a funnel with a perforated disc to filter out impurities) to the utilization of different-sized particulate filters (screen filtration).

Some advanced manufacturers mitigate this step by utilizing in-line, de-waxing apparatuses. Many hydrocarbon extractors utilize in-line de-waxers as well to avoid introducing ethanol that will eventually need to be removed to their extracts. Adding ethanol also changes the extract’s composition and increases production costs.

After winterization and/or filtration (if necessary), any remaining ethanol must be removed from the extract. The most common ethanol removal method is to utilize a rotary evaporator, which heats the cannabinoids and ethanol in a vessel under vacuum from a vacuum pump. The heated ethanol evaporates and is collected by a condenser, leaving ethanol-free, concentrated extract in the vessel. At this point, the extract is ready to be used as-is for certain products that do not require further refinement, such as Rick Simpson Oil (RSO).

Multiple options exist to further purify and refine the extract, should it be necessary. For example, some hydrocarbon extractors also utilize distillation when they are using trim, or lower-quality cannabis buds, to extract. In this case, even though the product may be cannabinoid-rich, the extract may have excessive fats/waxes and exhibit a darker color. This is a less desirable product. But it can be refined further via distillation to eliminate those undesirable qualities and produce a cleaner concentrate.

Distillation methods range from short-path distillation, wiped-film distillation, falling-film and thin-film distillation, as well as other, yet-to-be-adapted methods not commonly used by most current cannabis extractors, but that will soon become more relevant as production sizes increase.

The distillation process allows processors to further separate available cannabinoids, which yield purified compounds, such as CBD and THC exceeding 95-percent purity. The same principle would also separate other available cannabinoids such as Delta-8, THC-V and a host of others if present en masse. Distillation allows a processor to target specific boiling point temperatures of the available cannabinoids, resulting in purified cannabis compounds that can then be formulated into the final desired forms.

As production increases, equipment manufacturers will evolve. Already, hydrocarbon, ethanol and CO2 equipment manufacturers are rapidly scaling up their apparatuses (or completely re-engineering them to handle much higher capacities) and innovating large-scale automated systems that minimize production time and labor, thus lowering overall production costs.

Some companies utilize technologies common in industrial applications, such as spinning band distillation (SBD), which is used to refine fish oil on an industrial scale. Technologies such as these will ultimately migrate into cannabis extraction refinement companies. Petrochemical companies and many other chemical manufacturers, as well as flavor and fragrance industries, employ equipment and methodologies that will carry over into the cannabis space as well.

Dissolve the CO2 extract in ethanol or a similar solvent.

Freeze fats, waxes, flavonoids and other undesirable compounds.

Filter out compounds using methods such as a Buchner Funnel or screen filtration, or by using in-line de-waxing offered on some equipment.

Remove any remaining ethanol, often done with a rotary evaporator.

Step 3 may be the final step for products such as Rick Simpson Oil (RSO) that require no further refinement.

Distillation methods range from short-path distillation, wiped-film distillation, falling-film and thin-film distillation, among other less-common methods.

Using target cannabinoids’ boiling points, you can begin distilling specific cannabinoids to make isolates of THC, THC-A,CBD, etc.

In the future, production costs will factor into what is considered crude extract. Crude will be considered cannabinoids and terpenes that have been separated from the biomass (the green vegetative plant material) through fresh-freezing. The reclaimed material is kief (aka resin gland heads) and it is the most desirable component of cannabis as it contains the active ingredients (cannabinoids and terpenes). The resin gland heads will then be dissolved into ethanol for winterization, filtration and distillation; made into rosin form via heat and pressure; or further refined by utilizing CO2 or hydrocarbon extraction methods. Because extractors buy their extraction material by weight, removing the plant biomass before extractors purchase the product (i.e., separating the resin gland heads from the plant material) concentrates the amount of active ingredients available by weight, increases output capabilities and lowers production costs—enabling a concentrate company to provide final products without compromising quality. Superior quality at a superior price usually wins.

As we move into the future, manufacturers will continue to investigate other methodologies. For example, will it be possible to squeeze active ingredients out of large amounts of cannabis? While industrial-scale hydraulic presses that would be required for this process are expensive, and most do not have heating capabilities, I believe this form of extraction will be investigated thoroughly, especially when considering the possibilities of pressing 100 pounds of kief. If a manufacturer desires only cannabinoids and not to preserve terpenes, then pressing the cannabinoids out of kief with heat would be perfectly acceptable and an economical extraction method—that is, if it can be accomplished en masse.

In California, separating active ingredients has other serious implications that must be considered by both growers and extraction companies. In the Golden State, cannabis is taxed by product weight. Eliminating the green vegetative material and concentrating the active ingredients minimizes the taxable material’s weight, in that taxes paid on 1 gram of bud would be the same as 1 gram of kief, yet with kief, the available percentage of those desirable compounds is much higher.

Separating biomass from active ingredients prior to selling product to an extraction company or conducting in-house extraction has numerous benefits. It is advantageous for extraction companies to simply purchase and refine raw resin, whether it is from fresh-frozen material, dry material, bud or trim. A friend once said to me, “But nobody wants to buy kief.” That may be true—the consumer may not; but eliminating the biomass and paying taxes only on weight sold can dictate success or failure for some companies. The same friend then pointed out kief’s low market price today, to which I replied, “Soon, the industry will adapt and price kief and other crude forms by percentage of available cannabinoids and terpenes, and producers will ultimately be paid according to the milligrams of cannabinoids and terpenes, because they are, in reality, all that is desired.”

Kenneth Morrow is an author, consultant and owner of Trichome Technologies™. Facebook: TrichomeTechnologies Instagram: Trichome Technologies k.trichometechnologies@gmail.com

Deciding on a covering system for a new greenhouse can be difficult due to the many options now available.

Deciding on a covering system for a new greenhouse can be difficult due to the many options now available. The choice used to be glass, rigid poly or double co-poly film. Today, growers can incorporate energy conservation and shading into the mix. Energy conservation must be considered in many northern states, whereas shading is more important in southern locations. Three main factors affect the choice: light, energy conservation and shading. Here are a few suggestions that may help you make a decision.

Winter light is still the limiting factor for plant growth in most areas of the U.S., even in the Southwest, where the average daily light integral (DLI) is only 20 to 25 mol/sq. m/day (endowment.org/dlimaps). In most current greenhouses, only 50 percent to 60 percent of outside sunlight gets through to plant level.

Research continues to find better ways to capture and make use of natural light. Glass and plastic with nonreflective surfaces and better diffusion having up to 95-percent transmittance are becoming available. Using larger panes and smaller composite material, structural members can also increase the amount of light reaching the plant level by up to 10 percent.

Although great strides have been made in improving the efficiency of artificial illumination, the increasing cost of electricity is offsetting some of the benefits. For example, Connecticut power suppliers were given the go-ahead to increase electricity costs last year, and the new policy went into effect on Jan. 1.

Growers in northern climates are usually more concerned with heat loss during the winter. Energy requirements in cold weather are frequently 15 percent to 30 percent of production costs for many crops. To offset this, energy screen systems can be installed to reduce heat loss by 50 percent or more. New screen materials plus the use of multiple screens can also offset the loss of heat, compared to having a single-layer glazing.

Research has shown that using a translucent screen left closed both day and night on cold, cloudy days can both provide good light levels and save energy. The greater hours of use can more than offset the use of a screen having a higher U-value (meaning lower insulating qualities) but greater shading.

In warmer climates, high summer temperature is of greater concern than energy savings. Typical material shading choices are in the 40-percent to 60-percent range, but materials with a shade factor as high as 86 percent are available. By using multiple screens, the benefits of both shade and energy can be achieved.

Put all this together to choose a covering system:

For the glazing, select a lightweight material such as a corrugated polycarbonate or modified acrylic with a 90-percent light transmission. This allows a lighter greenhouse frame than if glass was chosen. A lighter frame means more light to the plants.

Add a shade screen that diffuses the light and provides the level of shading that the crop requires.

Install a transparent energy screen with 40-percent to 50-percent energy savings, translucent strips and a closed structure that can be left extended during the day without much light reduction.

If daylight exclusion is required, install a blackout screen material instead of the energy-saving material. Most blackout screens have a greater energy-saving rating. Select a material with one reflective aluminum surface. Face it up to reflect summer heat; face it down to reflect winter heat or supplemental artificial lighting.

The above suggestions will help you select a good covering system that will have at least a 10-year economic life. With the rapid development of new materials and production concepts, such as photoselective glazings and photovoltaic electric power generation panels, any structure with a longer life may be obsolete in a few years.

Bartok is an agricultural engineer, an emeritus extension professor at the University of Connecticut. He is an author, consultant and certified technical service provider doing greenhouse energy audits for USDA grant programs in New England.

Editor’s note: This article originally ran in the February 2019 issue of Greenhouse Management magazine, a sister publication to Cannabis Business Times.

We asked five specialists to provide insights into essential cannabis retail topics to help dispensary operators enhance their businesses.

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A good onboarding program is key to retaining your dispensary employees long-term.

Onboarding is not just orientation or going through new-hire paperwork, it is a managed process to integrate a new employee into your dispensary’s work environment, culture and business processes. Onboarding is designed to help the new hire have the tools and information to do their job and help your dispensary be successful.

The onboarding process can be informal—without an explicit plan—or formal, which is a written set of plans and experiences. However, most human resources experts agree that a formal approach produces better results. This process focuses on the critical experiences of the new hire over several months, up to the first year, based on the ideal that when new hires feel welcome and prepared for their job, they will be able to contribute to the company’s success faster and more efficiently, and will be more likely to remain with your dispensary for the long term.

And while new hires do have important paperwork to complete, making them do paperwork on their first day is not welcoming nor does it help them get acclimated to your dispensary culture. In fact, a best practice is to have the paperwork completed before the new hire arrives. You can automate new hire paperwork (and reduce manual paper files) so that all employee documentation is completed once before being fed to various online files and databases prior to their first day. Several companies offer this service and will take care of federal, state and local tax forms, direct deposit and payroll processes, policy authorization information, emergency contacts forms, security/network access, and other new hire paperwork. You can also send an electronic copy of your employee handbook to new hires prior to their first day so that they can become familiar with your dispensary’s code of conduct, vision and company policies.

There are three main goals of an onboarding process:

1. Acclimate: Integrating a new employee is more than showing them their workstation or the location of the break room. More in-depth information and demonstration is necessary for the new hire to understand the workplace, the dispensary’s vision, what is expected from them, and how their specific role will help achieve the dispensary’s goals. At the same time, new hires need to understand what they can expect from your dispensary, such as supervisory support, regular performance reviews, and the tools available to them to perform the job.

2. Engage: An effective onboarding plan offers an opportunity to engage new hires’ minds and skills, to demonstrate the importance of the dispensary standards, and to build a positive and supportive relationship between a new hire and management. For new hires, onboarding also includes discussing all experiences that they may have expected but were disappointing, unpleasant or didn’t occur, which will shape their perception of the dispensary and influence their level of engagement. HR experts note that there is a high correlation between employees who are engaged and a company’s profitability and customer satisfaction.

3. Retain: Losing an employee because they are confused, don’t feel a part of the team, or lack support and resources often can be linked to poor or non-existent onboarding. Because of the monetary impacts of recruiting, interviewing and training to replace an employee, as well as hidden costs of lower productivity and reduced morale—employee retention should be a driving force in your onboarding plan. Gallup identified a high correlation between engaged employees and retention. A structured onboarding process increases the likelihood of employee engagement and thus leads to employees who are more likely to stay with a dispensary than those new hires who were not in an onboarding program.

Before developing your dispensary’s onboarding program, or revising the one you currently use, consider and answer these questions.

1. When will the onboarding process begin and end? What impressions do you want on the first day? After one month? After 90 days? Effective onboarding requires good planning and integration with other HR functions. For example, as soon as a dispensary has made the decision to hire an employee, there should be a plan which prioritizes learning experiences and exposure to company methods and culture for new employees during the first 30 days. Once the new hire is on the payroll, additional plans for structured experiences and education should be in place for the next 30 days to 90 days.

2. What are those experiences new employees need to navigate? Because resources are limited, an onboarding plan needs to prioritize what it is about the dispensary culture, work environment, performance expectations, company policies and the customer experience that needs to be communicated to the new hire. Decisions need to be made about which experiences are most important, and what the timing should be. These decisions are based on which business processes and experiences will have the most impact on the new hire’s success or failure. Additionally, dispensaries need to make decisions about which experiences should be shaped specifically for the new hire. Those decisions should be allowed to occur more organically and at the discretion of the manager or supervisor.

3. Who in the organization is responsible for implementing the program? While HR might design the process, management and dispensary co-workers are critical to onboarding success. Everyone in the organization needs to understand that they have some responsibility in acclimating and engaging new hires. Management needs to participate in the onboarding process in a significant way, using the onboarding process to ensure new hires feel respected, valued and appreciated. Managers who offer specific encouragement and provide guidance during the new hire’s first few months will help to establish a positive relationship between the employee and the manager and will likely be a big factor in employee satisfaction. Ensuring that the key players are available and accessible during the onboarding process is an important part of the planning that needs to be done.

4. How will feedback and success be measured? Part of the onboarding plan design is identifying what success looks like. New hires represent a very expensive investment: How will you measure the return on this investment? How will the new hire behave after participating in the onboarding process? What is a reasonable time-frame for the new employee to know the job and be able to perform it well? If the job is customer-facing, how should the dispensary obtain feedback from customers regarding the employee’s service or commitment to company goals? Another piece of feedback that is important to include is whether the new hire’s actual experiences met with expectations—both the expectations of the new hire and the expectations of management and team members.

There is no “one-size-fits-all” approach or a single “correct” process for onboarding because every new hire is unique, generational or learning differences may exists, and each job role may require different experiences and planning. While situations will vary, an effective onboarding program is directly aligned to the dispensary’s strategy and business goals, and will have these basic elements:

Easily accessible information about how the dispensary works. At a minimum, this is information about your operating hours; when team members take breaks; how customer inquiries are handled; who is who and their roles in the organization; how to contact team members and managers; whether there is a dress code; how sales are tracked; inventory is maintained; and how team members are expected to interact with one another. Spread this information over a period of time—don’t try to cram 15 hours of information into the first day!

Formal and informal information about the company culture, the dispensary’s goals and values, and compliance requirements (such as basic legal and policy rules). Provide the new employee with current information on what the dispensary operations are designed to accomplish, your business model and what the future looks like. Don’t just hand out an organizational chart to explain lines of communication. Rather, discussions with peers and supervisor(s), attendance at meetings and structured experiences demonstrating the dispensary’s cultural norms and behaviors will provide both context and meaning that looking at an organizational chart cannot provide.

A copy of the job description and a written statement of the new hire's responsibilities and objectives. A discussion or series of discussions regarding the job and performance expectations should be planned during the new hire’s first weeks. Again, don’t just rely on a job description to inform the new hire how their role fits into the big picture and how the dispensary strategy relates to the job. Whenever possible, progressive work assignments should be made so that the new employee is always experiencing success.

If possible, make lunch the first day a group event, or have the supervisor take the new hire to lunch. Look for ways for the new hire to socialize and get to know team members. Help the new employee make connections that can help with their job performance, understanding the company’s operations and how team members support one another.

Tools should be accessible and working on Day 1 (such as a workstation, tablet or whatever is needed to perform the job). Ensure that product information is available, the work area is clean, safety equipment if required is ready and all the necessary resources are available to the employee to help them perform their job efficiently and with confidence.

Choose an employee peer to be the new hire’s “buddy.” This person will guide the new hire through the process, will be a “safe” person to whom all types of questions can be asked, and will help the new hire navigate the dispensary’s unspoken culture. Select a high-performing employee who will be a good influence on the new hire, and who will be supportive during the onboarding process.

Meetings with key team members. These meetings will provide a sense of how the dispensary is organized and how the structure aligns with the dispensary’s sales targets, marketing goals and company mission. The new hire needs to establish work relationships and networks that will be available for support and questions.

Build their confidence. Managed experiences and shadowing of key staff and/or functions can help build the new hire's skills and confidence, and help them understand the importance of their job to the dispensary’s success. New front-line employees can perform at much higher levels when they understand how their day-to-day work contributes to the company’s goals.

Individual mentoring and role clarification to provide job role guidance and foster continued improved performance. Don’t start the new hire on the day the supervisor isn’t there! The supervisor should let the new hire know about the dispensary’s first-year performance review process, which should include both formal performance reviews and informal “check-ins” to find out how the new employee is performing and integrating with the dispensary. Early and consistent performance evaluations can offer new hires an initial sense of accomplishment when done as early career support. The new hire should be made aware if your dispensary’s 30/60/90/120-day performance reviews could include feedback from peers, management and customers.

Managing these first experiences is an on-going process that continues until the new hire is a fully committed member of the dispensary team. While implementing an onboarding process requires considerable effort and time, it will pay big dividends in increased engagement and productivity from employees who are as committed to making your dispensary successful as you are.

Note: This column is not to be considered as legal or financial advice nor does it address all HR regulatory actions that may impact your business.

As industry media professionals, it’s our duty to share your stories—highlighting the best your dispensaries have to offer your unique marketplaces, including novel approaches to consumer experiences, new technologies as well as business models—in hopes we all can learn from each other.

However, it’s equally important for you, as a cannabis business owner, to share your story and the value you bring to market with your customers, your communities and the industry at large, and to do so with confidence and pride. The more you can communicate your unique background, company values and mission, the more you will be able to propel your business to the next level. This issue of Cannabis Dispensary explores just a few of the benefits of sharing your story both internally with your employees as well as externally with the public, including:

This month’s cover story subject, Maryland-based, vertically integrated company Curio Wellness, didn’t make its way into 63 of Maryland’s 71 dispensaries by keeping mum about its dedication to high-quality cannabis. Nor was it quiet about its vision for its retail location being “your total wellness destination,” with spa services and more. The company also appears regularly in local radio, TV and print news reports as part of its marketing strategy. Through these collective efforts, the Curio team has increased its brand awareness, and it shows: In its first year of operation, Curio’s patient numbers doubled initial projections, reports contributor Thom Lieb.

HRHQ columnist Maria Denzin says new hires are more likely to remain with your business for the long term when you develop a comprehensive onboarding plan. One important part of that onboarding plan is sharing your dispensary’s goals and values—and how your employees specifically contribute to achieving those goals and maintaining those values.

The first step to successfully raising capital for your business from outside investors, Quick Tips contributor Sara Batterby explains, is to recognize your value as a business and be able to communicate that effectively without chasing or sucking up.

With social media companies and tight regulations muzzling cannabis-related marketing, getting the word out about your company can be challenging. That is why it is important to be creative in your storytelling and marketing efforts. It’s also valuable to stay connected with your industry peers, to not only learn from their efforts, but to share your struggles, and solutions, with them as well. As an industry, the more we share, the more we can advance the market as a whole—and finally end the stigma surrounding cannabis.

Noelle Skodzinski, Editorial Director | nskodzinski@gie.net

Cannabis Business Times’ interactive legislative map is another tool to help cultivators quickly navigate state cannabis laws and find news relevant to their markets. View More