"How am I going to get this product on the shelves?" Creating creative, innovative packaging has made DIZPOT the cannabis industry's premier packaging company. CEO and Co-Founder, John Hartsell joins Dan Humiston to talk about their company's rapid growth and to explain why managing supply chain logistics is especially important for cannabis companies. Produced by PodConx MJBulls - https://podconx.com/podcasts/raising-cannabis-capital Dan Humiston - https://podconx.com/guests/dan-humiston DIZPOT - https://www.dizpot.com/ John Hartsell - https://podconx.com/guests/john-hartsell
"How am I going to get this product on the shelves?"
Creating creative, innovative packaging has made DIZPOT the cannabis industry's premier packaging company. CEO and Co-Founder, John Hartsell joins Dan Humiston to talk about their company's rapid growth and to explain why managing supply chain logistics is especially important for cannabis companies.
MJBulls - https://podconx.com/podcasts/raising-cannabis-capital
Dan Humiston - https://podconx.com/guests/dan-humiston
DIZPOT - https://www.dizpot.com/
John Hartsell - https://podconx.com/guests/john-hartsell
[00:00:00]
Dan Humiston: Today at MJ bulls, we are joined by John Hartsel, the co-founder and CEO of decibel.
John, welcome to the show.
John Hartsell: Yeah. Great. Great to be here, Dan. We appreciate always the opportunity to be with you. We enjoy listening into your show and all the great guests that you.
Dan Humiston: Well, we were really happy that you.
could take time out today , for our listeners that aren't familiar. This poll is one of the largest cannabis industry, packaging company, providing customers with single source branding, packaging, and proprietary technology. And I got to say Jina Feis said to somebody they 10 years ago, describe cannabis packaging.
Most people would say a Ziploc bag.
John Hartsell: That's
Dan Humiston: We've come. We have come a long way from there. Describe cannabis packaging today.
John Hartsell: Sure while it's getting more sophisticated and, and today's marketplace with as many con competitors that there are we certainly need to help our brands stand out and meet their demographics. The customer [00:01:00] base that they're seeking to be in front of where they are. And so we have multiple marketplaces that are important, whether it's medical or adult use, whether you're appealing to the soccer mom crowd or the daily dads or the senior crowd there's something out there for everyone.
And, and there are many products that can be repackaged differently to meet those customers where they are and the brands that they're seeking. We're using sophisticated software and technology to understand where the purchaser wants to see their product and what kind of products are most important to them.
We're also starting to use technology beyond QR codes and NFC near-field communication and RFID. To convey marketing messages through packaging, to consumers, and to eliminate quite a lot of the risk. If you've got RFID technology, you can really mitigate risk for loss prevention and your [00:02:00] dispensary's as well.
So, packaging you're right has come a significant amount towards being sophisticated just in the last five or six years, let alone the last day.
Dan Humiston: Jeez. I mean, just about anything that you see on the shelves in. Drugstore or anything is, is what you see in this cannabis dispensaries today. I mean, it's so much more than just slapping a label on a generic package. , I guess one of the reasons why so many people like working with you is because you guys are kind of known for branding expertise.
John Hartsell: Yeah, it's branding and it's compliance. We work with quite a lot of the MSOE multi-state operators, like cure leaf and Verano and true leave. And they not only have compliance issues in one marketplace, but in many disparate marketplaces. And because we don't have federal rules. All of those states have created commercialization their own way.
And that means the packaging requirements in Florida are different from those in Missouri are different from those in Arizona and California. [00:03:00] And when they've got places of business meeting compliance in each of those marketplaces, having a partner like dispo, Can I make that problem go away. We can help them meet those compliance rules easily and keep their packages on the shelf without disruption, the end of the day what we specialize in certainly branding, packaging, getting things produced, but what we really specialize in is logistics.
Getting your products and your pieces, whether they're packages or light. Or other items from overseas, getting those to the United States and then moving them across the United States to your different facilities for production.
Dan Humiston: Yeah. I didn't even think about that. That's gotta be so complicated, especially right now with the supply chain issues and everything. It's gotta be, it puts a lot of pressure on you guys to make sure that the products hit the shelves. , when you say they're going to hit the shot.
John Hartsell: Yeah, that's exactly right. And complicated as good from our [00:04:00] standpoint because we can Uncomplicate situations when customers can trust us to put their goods in the world, it just means that planning needs to start sooner. Expectations need to be really met. And our organization has seen so many other businesses, literally hundreds of them brands across the cannabis industry grow and become successful.
And so we're a really good partner to, to have through what is a continuing crisis in our supply chain. It's not going to stop anytime soon. We've got. A newly reinvigorated surge and the Ukraine by Russia. We have instability across Europe as a result of that. We have a governor in Texas that is inhibiting.
Food trucks from crossing the border because he's pissed off at Joe Biden. I mean, who's not pissed off at Joe Biden, it's tax season, but at the end of the day, let's not stop the food trucks and let our fruit rot down at the border. And so these [00:05:00] supply chain issues are getting And the challenges are going to continue to get harder.
So working with the company that faces the cannabis industry specifically, and is moving products from China that say marijuana and have pot leaves on them and is navigating the customs border protection agency, successful. Is a much better risk than leaving it up to some freight forwarder you found on some load bearing organization online.
And that's why we think people should be working with us.
Dan Humiston: Well, it certainly would solve a lot of problems for people. And I agree with you walk me through the process. If I'm a new company, or if I'm switching to work with you, I have an idea for packaging, for my products. Just from the time I, you take the conceptual all the way to the time it gets to the shelves what's involved.
John Hartsell: Sure. It's, it's pretty simple process one. We have a discovery meeting with our creative team. We've got about a dozen people that work in our marketing, creative and web dev [00:06:00] department. And so we can help you in, in all three of those areas from developing your brand to creating your website and social media assets and marketing materials, and ultimately creating your packaging.
And so we'll create what we call a style guide to be sure that your brand has continuity across all of your platforms for communication. From that point, we will start to design packaging around your products, whether that's flower, concentrates, or edibles of course, or other types of consumables that people were putting on the marketplace right now, like powders and things like this that are to be mixed in with drinks are sprinkled on to other food products.
But I'm working with you to understand the medium, which you're going to convey the cannabis and then designing packaging around your brand for that. Most organizations are looking for quite a lot of support for what skews should we have. And so we spend a lot of time in the data. There's really great data coming [00:07:00] from BDS analytics and from MJ biz and other resources like headset.
And so we're using national geographical and consumer data to help the brands build the right amount of skews under each brand. They're going to put in the marketplace. Once we're there. It's all about production and timeline, and we have the ability to turn around packaging as quickly as three weeks.
To get you on the shelf and most efficiently over 12 to 14 weeks if, if we want to do it for the least amount of money possible. And and so I just really depends on what their needs are. We know that the most important thing to our customers is producing cashflow and we can help them get cash flowing in as a result of having packaging for their product in as little as three weeks.
And that's why a lot of organizations choose to work with.
Dan Humiston: Yeah, cause tying up inventory before it even hits your shelves is expensive and it, [00:08:00] and , I could see where they're, they're concerned about that because. That's not making them any money right. now.
John Hartsell: That's right. And it asked anyone who's growing cannabis and is extracting cannabis. These are materials that just simply don't have a lifelong shelf. They are continuing to off gas. They're continuing to degrade as far as the material goes. And so if you get to the point where you're not able to place your product on the shelf, now you're in a place where you have to preserve the product and that's even more expensive.
Now I've got to freeze it. I need a sub 40, I've got all these other mitigating factors that are going to cost me more money because I'm not getting the product to the. When you're starting a new brand, one of the first conversations you should have is how am I going to get this product on the shelf and make sure that you have a plan for that as well as your wholesale situation, right up front.
Dan Humiston: That's good advice. Good advice. Well, what kind of opportunities do you see coming [00:09:00] forward or what, or what's next for.
John Hartsell: Yeah. So, like I said earlier, logistics is really where we see ourselves residing in the future of cannabis and any company that has not evolved. With the industry right now that evolution is real. It's getting more sophisticated and, and you must be meeting the industry where it's headed and, and try to be there ahead of it.
And so what we're doing right now is we're developing software that will manage all of your logistics. For movement of your goods, whether those goods are packaging or lights or humidifiers or dehumidifiers, depending on the place in the country, , your existing other extraction components Ultimately, it will also manage the logistics of moving your material right now within the state that you're in and in the future, when we have federal legalization across the stage with interstate commerce.
And so we will [00:10:00] offer that software platform called does logic starting in the third quarter of this year.
Dan Humiston: Man, I love it. I love it. We'd be raising any money to help your growth.
John Hartsell: We're not currently raising money. And Jeff and I started this company with $45,000 and a computer and an 800 square foot office. And, and we've scaled to be more than $10 million company. And now we have 38 computers with 38 people sitting behind them.
And so we've cashed load this business and, and have never really needed the horsepower that the capital would bring. But in the near future here in the next couple of days, actually we'll be releasing an investor deck. , and that'll give folks an idea of where we're headed and give them an invitation to come and let us know what they think they can do and what kind of horsepower they can provide to our organization.
A special investor. One that sees the future that we see. And one that brings not only some [00:11:00] capital, but brings some talent from the industry as well. So we're looking for kind of a player, man.
Dan Humiston: Yes.
John Hartsell: if you will, if somebody that will cooperate with us in this business is what we'd be looking at.
Dan Humiston: Yeah, strategic partner, maybe somebody who can make some introductions help you for future rounds. I think that makes a lot of sense. Well, we're going to have links to despoil , in our show notes. And so if you wanted to. Learn more about what they're doing, or maybe
talk with them about packaging, or maybe you've talked to them about having a sneak peek at the investor deck. Just click the links in the show notes, and I'm sure somebody from John's team would be happy to talk to you, John. Great catching up. Thanks for being on the show today.
John Hartsell: Yeah, Dan, I'm so glad we were able to do this and look forward to seeing you here in the near future.