California cannabis distributors are responsible for transporting, testing and quality assurance of cannabis goods as set by the State. Distributors ensure that all cannabis goods sold comply with the packaging and labeling standards set by the California Bureau of Cannabis Control.
There are two different types of licensed cannabis distributors in California:
- Distributor – California Cannabis Distributors purchase cannabis goods from farmers or manufacturers and sell product directly to retailers. In California, all cannabis products sold at retail must be purchased from a distributor. This means that the farmers and manufacturers of various cannabis goods sell their products to a distributor. The distributor then sells the cannabis goods to the various retail outlets. The distributor is responsible for all warehousing, safe transport, testing quality, and collecting taxes on the cannabis products.
- Distributor Transport Only – These guys do exactly that, they transport cannabis goods between the cultivators, manufacturers and distributors. The transporters do not sell to retailers, though. They only facilitate the movement of cannabis goods and are contracted on the back end of the market by providing a secure delivery of the goods.
California Cannabis Distribution
I’m sure it’s like the Wild West right now in California, as far as the cannabis industry is concerned. The retailers need product to sell, they don’t care where it comes from. It’s similar to 1933, there was no such thing as brand loyalty, the customers just wanted beer.
We’ll see lots of changes as the cannabis market matures. The cannabis distributor’s list of priorities are exhausting at first glance. To stay competitive and relevant in the market, a California cannabis distributor must focus on:
- Product – Procure a stable and high grade supply of the finest cannabis goods from the most popular cultivators and manufacturers. Cannabis branding will most certainly be a major focus later on.
- Compliance – Cannabis distributors arrange for all laboratory testing and quality assurance of cannabis goods. They also ensure that the cannabis goods comply with all packaging and labeling requirements set forth by the State.
- Warehousing – Safe and secure facility with climate controlled environment large enough to keep an adequate supply of cannabis goods to cover demand.
- Forecasting – Monitor changes in demand to adjust inventory levels throughout the year. Open and honest dialog with cultivators and supplier partners to make sure there is extra inventory of cannabis during peak selling seasons.
- Ordering – Simple and convenient online ordering process for retailers and a knowledgeable sales staff that regularly calls on and follows up with retailers.
- Payment – Make it hassle-free for the retailers to pay for cannabis deliveries and for delivery guys collecting payments. Cannabis fintech will be a huge component.
- Tax – Collect all excise taxes and remit payments on time at all times. It’s the cannabis distributor’s duty to provide an indispensable service for the State.
- Delivery Schedule – Develop a routine delivery schedule and call ratio to make sure the customers are serviced. Make sure your delivery schedule is sufficient enough to eliminate out of stocks at retail. Cut down on turn around time and have a plan in place for time sensitive hot shot deliveries. If you can get the product to the retailer whenever it’s needed – you build trust.
- Marketing – Develop an in-house loyalty program for retailers. Offer promotional credits and discounts to retailers that pass along savings to customers. Develop fresh content daily on your website and social media accounts, this is how the retailers find you.
- Governance – At any time California can take control of cannabis, do your best to keep it in the private sector. Make sure to follow all applicable laws, standards and procedures of the Bureau of Cannabis Control. Join the California Cannabis Industry Association (CCIA) and the NCIA to be a part of the legislative process. Give to organizations that promote the interests of the cannabis industry.
This looks an awful lot like what we as beer distributors do. Same concept. Buy it from supplier, pay excise taxes, warehouse it, make sure of quality, deliver product, collect payment, remit state taxes, merchandise product, and develop the business. Rinse and repeat. It’s all the same.
List of My Favorite California Cannabis Distributor Names
I want to share a few my favorite California cannabis distributor names. I wonder what would have happened if the old timers used a little extra creativity like the names below on their beer distributorships? No way the TTB authorizes some of them!
I think it’s time for a little fun and creativity when naming new beer distributorships.
Expiring Beer, Wine and Spirits Industry Domain Names for Wednesday November 21, 2018
Every morning I compile a list of the upcoming day’s expiring domain names. I find these domains in the aftermarkets and drop lists and then write about the best expiring domain names for beer, wine and spirits companies.
The names I find are perfect branding opportunities for breweries, wineries, distillers, distributors, retailers, vendors, etc., even cannabis companies. You never know, your company’s exact match domain name may be on the list today. You can acquire premium domains, often at a huge discount, in the aftermarket and on the drop.
The domains below are expiring today, if you have any questions about a domain name feel free to contact Andy here. I can help you acquire it. Let me know early – the auctions start at 11AM EST and the drop begins at 2PM EST.
Beer Distro Domain of the Day: GotBud.com – I love this one as a fun domain name for an ABI wholesaler. Not a bad email address, either. But, the big bids are coming in for cannabis. Got Bud is a great cannabis distro name.
StartBeer.com – This is the kind of beer you start your day off with.
BeverageTaxes.com – Maybe this could be a monthly service to help total how much excise tax to you pay.
NorthStarBeverage.com – Pepsi bottler in Minnesota.
GoldBeverage.com – Very nice domain name for a beverage company or beer distributor, even better if your last name is Gold.
BeverageTank.com – The beverage industry uses a bunch of different sized beverage tanks.
DistCom.com – I see distributor communications.
JacksonCraft.com – If you are a craft beer distributor in Jackson, you will not go wrong with this name.
BreweryTrips.com – I know they’re called tours, but folks are definitely starting to take trips to breweries.
SpecialBlue.com – You know, sooner or later Labatt is gonna brew one of these.
AlaskaCrown.com – Sounds like an Alaska Budweiser wholesaler.
ImportCo.com – Great domain name for a beer importer.
WintersAle.com/WintersAles.com – Do you see Winter Ale, Winters Ale or Winter Sale? It’s Winter Sale, but I always see Ale on the end. WinterAle.com would be the best domain to have, not these two examples.
KingMead.com – The best selling mead in the realm.
MillerFactory.com – This is where they make Miller Beer.
MillerSold.com – Another tricky one. Miller Sold or Millers Old. You want to stay away from these ambiguous meaning domains.
PearlOrders.com – We used to fax these in to San Antonio every month.
ProPremium.com – I like beer company names that use the word “Premium.” You always want your beer to be associated with the word premium. Premium = Higher price. And being a “Pro” has its benefits, too.
CraftCoaching.com – I see this domain used for a service to help new employees that have just been hired on at craft beer wholesalers.
GreatAlliance.com – Nice beer company name.
BrandSkills.com – With this domain you can show off those brand skills you’re always telling everyone about.
Thanks for reading. Thanksgiving is just around the corner! I hope everyone has a happy and safe holiday.
See you tomorrow,