With several areas where the legal cannabis industry still lags behind black market sellers, such as excessive packaging or higher prices, licensed companies have been working to address those issues to lure in black market customers.
While the price issue continues to be battled by ramping up production and increasing supply, companies such as KushCo Holdings, Inc. (OTCQB: KSHB) are now tackling the problem of wasteful packaging by offering biodegradable solutions.
Today, KushCo announced a partnership with SunGrown Packaging, LLC to begin offering biodegradable packaging for cannabis products while still remaining child resistant. That new packaging follows the protocols set down by ASTM International (formerly known as American Society for Testing and Materials) for proper certification.
Several new compostable packaging types are additionally in development through the partnership to be used in other cannabis and CBD products in the future. The end goal of the relationship is to increase the company’s sustainability while focusing on using renewable resources. KushCo Holdings CEO Nick Kovacevic commented on the new initiative:
In celebration of the SunGrown Packaging partnership deal, KushCo is gearing up to hold an industry round table event at the company’s Garden Grove, California site. The May 30 event will feature an appearance by Fiona Ma — the California State Treasurer – in addition to executives from KushCo, SunGrown, and other cannabis entities to discuss regulations and cannabis banking reform.
That issue has been particularly difficult for companies in the US to overcome, as cannabis remains illegal at the federal level despite being legalized for recreational use in 10 states and medical use in 33 states.
The Secure And Fair Enforcement (SAFE) Banking Act introduced by congress last month seeks to address that problem by allowing cannabis companies to use normal banking procedures and apply for loans like any other business.