AFTER ABOUT TWO MONTHS, ADULT USE MARIJUANA SALES RESUMED ON
MONDAY, BUT WITH AN EYE ON STOPPING THE SPREAD OF THE NEW
CORONAVIRUS THERE ARE HEALTH AND SAFETY RESTRICTIONS FOR BOTH
EMPLOYERS, EMPLOYEES AND CUSTOMERS.
I SPOKE WITH STEVE REILLY, COFOUNDER OF INSA, WHICH HAS A
SITE IN EASTHAMPTON ON THE, TO LEARN MORE.
>> I THINK THE GOVERNOR HAS TO MAKE DIFFICULT DECISIONS IN
TERMS OF WHICH INDUSTRIES HE'S GOING TO SELECT TO OPEN AND ONCE
HE MAKES THAT DECISION, OBVIOUSLY, THERE ARE SPECIFIC
PLANS THAT HAVE TO BE IMPLEMENTED FOR EVERY INDUSTRY
TO OPEN SAFELY. SO I THINK BETWEEN THE
GOVERNOR'S OFFICE AND THE C.C.C. THAT THEY'VE PUT TOGETHER A
REASONABLE A PLAN AS POSSIBLE. I THINK THE CANNABIS CONTROL
COMMISSION HAS BEEN EXCELLENT TO DEAL WITH IN TERMS OF WORKING
WITH US AND PUTTING TOGETHER A PLAN.
EVERY OPERATOR HAS A UNIQUE SITE, AND I THINK THAT THEY
HAVE, TO DATE, FOR OUR FACILITIES HAVE RECOGNIZED THAT
AND BEEN FLEXIBLE IN TERMS OF WORK AT EACH SITE.
>> WHAT HAS REOPENING MEANT FOR YOU IN TERMS OF ALTERING THINGS
AT THE LOCATION IN EASTHAMPTON DEN WHICH HAS BOTH ADULT USE AND
MEDICAL, RIGHT? >> YES, SO BAIL WHAT IT MEANS IS
CREATING A SALES SETUP OUTSIDE SO WE CAN DO THESE TRANSACTIONS
OUTDOORS. WE SUBMITTED A PLAN TO THE
C.C.C. THAT WAS APPROVED, BUT IN TERMS OF INFRASTRUCTURE THERE'S
QUITE A LOT THAT HAS TO BE PUT IN PLACE IN THE BACK OF THE
HOUSE. ALSO WHAT PEOPLE SEE FORWARD
FACING AT THE FRONT OF THE HOUSE WHEN THEY SHOW UP, THAT'S NOT
GOING TO BE THE SAME EXPERIENCE THEY HAD PREVIOUSLY.
WE'VE REALLY HAD TO PAY ATTENTION TO THE NUTS AND BOLTS
OF THE OPERATION, KEEPING THE SOCIAL DISTANCING, MAKING SURE
THAT ORDERS ARE THERE, WE GET PEOPLE IN AND OUT QUICKLY.
SO WE LIKE TO HAVE A GREAT SERVICE MODEL AND WE DO AS BEST
WE CAN WITH THAT NOW, BUT IT'S A LITTLE HARDER TO DO IT IN THE
ENVIRONMENT WE HAVE TO OPERATE IN.
>> CURRENTLY, AS I UNDERSTAND IT, I JUMPED ON THE WEBSITE THIS
MORNING TO SEW WHAT WAS GOING ON, YOU ARE DOING ONLINE
ORDERING, NOT PHONE ORDERS, CORRECT?
>> YES, AND THAT'S A PERFECT EXAMPLE.
SO WE'RE GOING TO GET BACK TO DOING THE PHONE ORDERS.
AT THE COMMENCEMENT OF THIS WE DIDN'T WANT TO TAKE ON TOO MUCH
AND WANTED TO BE ABLE TO BE RESPONSIVE TO PEOPLE PLACING
ONLINE ORDERS AND HAVING ANY KIND OF ISSUES.
SO WE EXPECT THAT WE'LL START DOING THE TELEPHONE CALLS AGAIN,
NOW THAT WE'VE GOT OUR FEET UNDER US, PROBABLY WITHIN A FEW
MORE DAYS. >> WHAT HAS DEMAND BEEN LIKE
FROM CUSTOMERS WHO HAVEN'T HAD ACCESS TO LEGALIZED ADULT USE
MARIJUANA IN A COUPLE MONTHS NOW?
>> IT'S BEEN HIGH. AND WHAT WE'VE SEEN IS A HIGHER
TICKET, I'M NOT SURE IF THAT'S PEOPLE SPECULATE THAT THEY
HAVEN'T HAD A CHANCE TO PURCHASE OR THEY MIGHT NOT IN THE FUTURE,
SO WE'VE SEEN A HIGHER TICKET NUMBER.
IN TERMS OF VOLUME OF CUSTOMERS, WE'VE SEEN A PRETTY SIGNIFICANT
VOLUME. I DON'T KNOW THAT I WOULD SAY IT
WAS THE SAME AS WHEN WE FIRST OPENED IN EASTHAMPTON ON THE,
BACK IN DECEMBER OF 2018. BUT IT'S A PRETTY HIGH VOLUME.
OUR SYSTEM ALLOWS US TO REGULATE HOW MANY PEOPLE MAY COME IN BY
HOW MANY ONLINE ORDERS WE'LL ALLOW, SO WE'VE BEEN ADJUSTING
THAT PERIODICALLY, JUST TO GET THE RIGHT FIT IN TERMS OF BEING
ABLE TO PROVIDE PRODUCTS TO CUSTOMERS BUT THEN ALSO BEING
ABLE TO HAND TELL TRAFFIC. >> WHEN YOU SAY TICKET NUMBER,
YOU MEAN AMOUNT OF MONEY THAT'S SPENT PER CUSTOMER PER ORDER?
>> YES, EXACTLY. >> SO ROUGHLY GIVE US A SENSE.
>> SO WE'VE PROBABLY SEEN CLOSER TO 20, $30 EXTRA ON THE AVERAGE
SO IF THE AVERAGE TICKET SAY IS $80, WE'RE CLOSER TO 110.
AND THEN IT DIFFERS FROM SITE TO SITE AS WELL.
>> SO THAT'S A BIG JUMP. ARE YOU WORRIED ABOUT RUNNING
OUT OF PRODUCT? >> WE'VE HAD SOME LIMITS ON
FLOWER, BUT WE'RE HOPEFULLY GOING TO BE LIFTING THOSE LIMITS
GOING FORWARD. AT THE INITIAL OPENING WE WANTED
TO MAKE SURE WE COULD ACCOMMODATE AS MANY CONSUMERS AS
POSSIBLE AND GIVE THEM A REASONABLE AT OF PRODUCT TO BUY.
BUT AS WE'RE READJUSTING BASED ON THE DEMAND THAT WE'RE SEEING,
HOPEFULLY WE'LL BE LIFTING THOSE LIMITS AS WELL.
>> EARLIER IN OUR CONVERSATION YOU MADE REFERENCE TO BACKUP
HOUSE, WHICH IS BEHIND THE SCENES WHERE THE EMPLOYEES WOULD
BE WORKING, RIGHT, PEOPLE WHO ARE COMING IN AS CUSTOMERS MIGHT
NOT BE SEEING THAT ON A DAY-TO-DAY BASIS.
BUT CAN YOU TELL US WHAT CHANGES YOU'VE MADE BACK THERE TO MAKE
SURE THAT YOUR EMPLOYEES ARE SOCIALLY DISTANCED, TAKING THOSE
SAFETY PRECAUTIONS THAT THE STATE HAS SAID ARE NECESSARY TO
BE OPEN AND JUST WHAT YOU'RE DOING TO KEEP YOUR EMPLOYEES
SAFE RIGHT NOW? >> YES AND IT DEPENDS ON WHICH
OPERATIONS WE'RE TALKING, ABOUT RETAIL VERSUS CULTIVATION.
WE'RE TRYING TO STAGGER SHIFTS, CREATING SEPARATION FOR ANYBODY
IN THE STATION, OBVIOUSLY THE CLEANING, THE MASKS, ALL THOSE
REQUIREMENTS THAT THE STATE HAS WE'RE COMPLYING WITH.
SO WE'RE DOING THE BEST WE CAN WITH IT.
WE'VE INSTALLED PLEXIGLAS WHEREVER WE CAN BETWEEN
EMPLOYEES OR BETWEEN PATIENTS AS WELL.
AND PATRONS. >> WHEN THE STATE MADE THE
DECISION THAT ADULT USE MARIJUANA WAS NONESSENTIAL, IT
CAME OUT WITH SOME OTHER MARIJUANA COMPANIES IN THE
REGION AND SAID YOU MIGHT HAVE TO FURLOUGH, YOU MIGHT HAVE TO
LAYOFF, YOU DID IN FACT MOVE FORWARD WITH THOSE LAYOFFS AND
THOSE FURLOUGHS. ARE YOU ABLE TO BRING PEOPLE
BACK, AND IF SO, HOW MANY? >> WE HAVE.
I DON'T HAVE THE EXACT NUMBER, BUT WE'VE BROUGHT BACK A
SIGNIFICANT AMOUNT. WE'VE HAD SOME DIFFICULTY DOING
THAT. I THINK THERE ARE SOME EMPLOYEES
THAT ARE PROBABLY DOING BETTER WITH SOME OF THE BENEFIT
PROGRAMS FOR COVID-19. BUT I'D SAY FOR THE MOST PART,
THE EMPLOYEES HAVE BEEN WILLING TO COME BACK AND I THINK HAVE
BEEN HAPPY TO BE BACK. SO IT'S BEEN A GOOD ENVIRONMENT
TO BE IN. >> DOING BETTER, YOU MEAN MAKING
MORE MONEY ON UNEMPLOYMENT THAN THEY WERE AS PAID EMPLOYEES?
>> YEAH, I THINK THAT THERE'S SOME OF THAT, A LITTLE OF THAT.
BUT WE'VE SEEN PRETTY GOOD RETENTION IN TERMS OF THE
EMPLOYEES WHO WE'VE CALLED BACK WANTING TO COME BACK.
>> CAN YOU TALK ABOUT THE IMPACT THIS HAS HAD FINANCIALLY FOR THE
COMPANY? >> YEAH, A LITTLE BIT
THE ADULT USE SALES ARE PROBABLY AROUND 95% OF OUR GROSS REVENUE,
SO OBVIOUSLY THAT'S A LARGE HIT AND WE'VE HAD TO SIGNIFICANTLY
READJUST THE BUSINESS BASED UPON WHAT WE CAN AFFORD TO DO.
SO WE'VE HAD TO CHANGE OPERATIONS SIGNIFICANTLY.
IN ADDITION TO THAT WE'VE HAD A LOT OF OUT OF POCKET EXPENSES TO
BE ABLE TO SET UP THIS CURB SIDE PICKUP.
WE'VE GOT POLICE DETAILS AND OTHER THINGS LIKE THAT NOW.
SO THOSE FACTOR IN AS WELL. >> THOSE POLICE DETAILS, IS SORT
OF AKIN TO WHAT YOU NEEDED WHEN YOU OPENED?
>> YEAH, PRETTY MUCH THE SAME THING
THE WHICH WE LOOKED AT IT WAS TO SAY LET'S BE SAFE ABOUT IT,
WE'LL HAVE THE DETAILS, WE'LL START WITH THE DETAILS, SEE HOW
THINGS GO AND IF IT DOESN'T MAKE SENSE WE CAN BACK OFF OF THAT
LATER, BUT I'D RATHER BE PREPARED FOR THAT AND MAKE A
DECISION LATER THAT WE DON'T SEEM TO NEED IT.
BUT WE'RE FORTUNATE THAT WE'RE IN TWO COMMUNITIES IN SALEM AND
EASTHAMPTON ON THE WITH ADULT USE, WE'VE GOT GREAT CHIEFS AND
GREAT MAYORS THAT ARE FLEXIBLE IN TERMS OF HOW THESE OPERATIONS
RUN AND THEY'VE BEEN VERY FAIR TO DEAL WITH.
>> SPEAKING OF BEING SAFE, WITH ALL THIS ONLINE ORDERING NOW,
HOW ARE YOU ASSURING THAT THE PEOPLE WHO ARE PURCHASING THE
PRODUCT ARE OF LEGAL AGE? >> EVERYBODY IS BEING CHECKED SO
WE HAVE THE SAME ONLINE, I'M SORRY, THE SAME IDENTIFICATION
SYSTEMS THAT WE'VE HAD. WE HAVE OUTDOOR HAND HELD BEAR
SCANS AND I.D. CHECKS AT THE POINT OF SALE.
>> WHEN THE STATE DECIDED TO CONSIDER REX --
RECREATIONAL MARIJUANA OF NONESSENTIAL STATUS, DID YOU SEE
AN UPTICK OF PEOPLE ON THE MEDICINAL SIDE?
>> WE DID. I THINK THE C.C.C. RELEASED SOME
NUMBERS THAT SAID THEY WERE AROUND 18% INCREASES.
I WOULD SAY THAT'S CONSISTENT WITH WHAT WE SAW.
WE SAW A LOT OF NEW FACES, PARTICULARLY AT OUR MEDICAL
DISPENSARY IN SPRINGFIELD. >> DO YOU THINK THAT THIS PUSHED
ANYBODY TO THE BLACK MARKET, MAYBE THEY WEREN'T ABLE TO GET
THAT MEDICAL CARD BUT STILL WANTED ACCESS TO MARIJUANA IN
THE LAST COUPLE OF MONTHS? >> I'M SURE IT DID.
THERE ARE PEOPLE THAT DON'T GET CARDS FOR A NUMBER OF DIFFERENT
REASONS AND I DON'T KNOW THAT THAT WAS GOING, THAT THOSE
REASONS WOULD CHANGE WITH COVID-19.
SO FOR ANY OF THOSE PEOPLE THAT WOULD USE THAT PRODUCT TO
REGULATE THEMSELVES MEDICINALLY, THEY WOULDN'T HAVE A VENUE TO
PURCHASE IT OTHER THAN THE BLACK MARKET, SO I WOULD SUSPECT THAT
THEY DID. >> GIVEN THAT YOU HAD A
TWO-MONTH PAUSE AND I KNOW THAT THE MARIJUANA INDUSTRY
CHALLENGED THE GOVERNOR'S DECISION TO STOP THOSE SALES,
YOU DIDN'T WIN ON THAT CHALLENGE, DID THE TIME OFF GIVE
YOU AN OPPORTUNITY TO EITHER RETHINK PROCESSOR DEVELOP MORE
PRODUCTS? WAS THERE ANYTHING GOOD THAT
CAME OF IT? >> I DID HAVE AN OPPORTUNITY TO
REDEVELOP SOME PROCESSES HERE. WE WEREN'T PART OF THAT LAWSUIT.
I THINK THERE WERE THREE OR FOUR COMPANIES, WE DIDN'T FEEL THAT
WAS AN APPROPRIATE THING TO DO SO WE WERE NOT INVOLVED IN IT.
BUT WE DID TRY TO WORK ON EVERYTHING WE COULD WITH THE
DOWN TIME. SOME OF THE DIFFICULTY WAS
PREPARING FOR HOW WILL WE OPEN WHEN WE CAN REOPEN, BECAUSE
THOSE PLANS AND THOSE PROCESSES ARE A SIGNIFICANT AMOUNT OF WORK
TO PUT THEM IN PLACE. >> WHAT DO YOU THINK THE NEW
NORMAL IS GOING TO LOOK LIKE? ARE YOU GOING TO GO BACK TO WHAT
PEOPLE EXPECTED WHAT IT LOOKED LIKE WHEN YOU FIRST OPENED OR
WILL IT BE TOTALLY DIFFERENT? >> THAT'S PROBABLY A QUESTION
FOR THE GOVERNOR. AND FOR THE LEGISLATURE.
BUT THE WAY WE LOOK AT IT, WE'RE GOING TO CONTINUE TO PLAN TO
OPERATE IN THIS MANNER FOR THE FORESEEABLE FUTURE.
UNTIL WE HEAR OTHERWISE, THIS IS GOING TO BE THE MODEL.
I THINK IT BECOMES MORE DIFFICULT PROBABLY AS THE
WEATHER TURNS, I THINK IT'S FORTUNATE RIGHT NOW THAT WE'RE
COMING INTO SOME GOOD SUMMER MONTHS, SO THINGS LIKE CURB SIDE
PICKUP ARE A LOT MORE FEASIBLE. IF THIS WAS HAPPENING IN JANUARY
OR FEBRUARY WITH SNOW BANKS AND BAD WEATHER IT WOULD BE FAR MORE
DIFFICULT.