Kanha nanoemulsion gummies
Since those on social media platforms and cable news networks are once again speculating about the urban legend of cannabis-infused edible gummies ending up in childrens’ Halloween candy supplies, it seems like a good time to check in on the actual legal cannabis edibles market.
Spoiler alert: the edibles category is soaring. According to data firm Headset, edibles have seen a 29% increase in sales this year. The firm also projects total sales to clock in at $2.3 billion across the United States for 2021. It’s safe to say things are going down smoothly in the edibles world.
Solid growth and good growth potential have set the stage for a check-in with co-founder of Sunderstorm’s gummy line, Kanha, which makes some of the top-selling edibles in California. Clarke discussed gummies, nanoemulsion technology, Burning Man, the future of the product category, and much more.
Jackie Bryant: Both you and your co-founder, Keith Cich, come from very different backgrounds, can you tell us more about how your paths led you to working in cannabis together?
Cameron Clarke: Both Keith and I have experience as entrepreneurs but come from very different work histories. Keith cut his teeth on Wall Street with early derivatives trading, while I studied engineering and had a number of startups.
More recently, I was embarking down the science path with self-study molecular biology working on engineering algae for extraction of high value compounds and Keith was doing real estate deals. A friend of mine showed me some extraction equipment for cannabis and I immediately realized that Keith and I should start a cannabis company.
We were both big advocates of plant medicines, community, and alternative lifestyles so it was an obvious new path for us both. I called him up and reminded him that all of our life experiences would help us build a successful company in cannabis and that’s what we have done.
JB: Can you tell us a bit more about Kanha gummies and how they differ from other brands in the edibles space?
CC: As I mentioned, I have a science background and I’m also very sensitive to cannabis. So I wanted to build an edibles brand that consumers could trust with the right ingredients, reliable experiences, and leveraging beneficial technology that has been proven safe for consumption. We are the first company in cannabis to sell a nano-technology fast-acting ingestible in 2015 and have been the pioneers of fast-acting edibles ever since. Our Kanha Nano gummies are known for their amazingly fast onset.
We are also known for the reliability and consistency of our products because we “measure twice and cut once” in our production process and test everything multiple times. We have tested all of our products and our competitors’ products since the beginning. This is why we won the award for the most accurately formulated edible.
Consumers know they can achieve the same experience each time they enjoy our products. That’s a big deal when you are talking about a psychoactive molecule that many people use for their medicine. Additionally, we were the first company to stipulate a Zero Pesticide Policy. We don’t allow 1 PPB of pesticides in any of our products. We have been huge advocates of all natural gummies that are healthy and safe for consumption. Lastly, we don’t gouge consumers. We sell our products at a very fair price that is affordable by everyone. Great tasting, reliable, safe products at a fair price. That’s Kanha.
JB: As mentioned, you are one of the oldest customers of CannaSafe and won the first “Most Accurately Formulated Edible” award. How do you view safety and transparency in this emerging industry where things are quickly changing?
CC: It was very frustrating when we first entered the industry in 2015. We tested a lot of products and found massive discrepancies between the products and the labels — both for pesticides and for cannabinoid content. We entered this industry because we knew that consumers were getting unsafe products and we wanted to be the brand they could trust with consistent, properly labeled products. Safety, transparency, and reliability are paramount for us and have been foundational for how we have built the business.
Investors often ask about past brands which have disappeared and I point out that in many of these cases, the brands misrepresented themselves to consumers and failed spectacularly in the process. We have always believed that we are delivering medicines that lead to a life of optimal wellness to our consumers. It’s both fair and ethical that brands consider safety and transparency a pivotal aspect of their businesses. And frankly, having clean, tested cannabis products available to consumers for the first time is the single most important achievement of the regulated industry. I’m proud to be part of this achievement.
JB: You were one of the first in the space to introduce nano-technology to cannabis – what gave you the foresight to employ this technology and what other innovations do you see on the horizon?
CC: I think it’s crucial that we continue to drive innovation towards rapid onset so that consumers don’t have to wait to get their medicine and we avoid confusion about the psychoactive experience. You are seeing this particularly in the beverage space.
In addition, cannabis is personal and impacts our bodies differently. I believe that research will continue to develop which points to how the various cannabinoids function according to our genetic variations and what are the appropriate ratios to consume.
It’s not just about understanding cannabinoids and their benefits, but rather how these molecules interact with our personal genetics. The endocannabinoid system exists throughout the human body and therefore the cannabinoids have a multiplicity of impacts. In the coming years, we will find that various combinations work well for some people while other combinations work well for others. I have been studying this in my own body. The complexity is fascinating and we have so much to learn from this new research. The Sunderstorm [Kanha’s parent company] R&D team has been working on this for two years and will continue to do so.
JB: Edibles are increasing in popularity, with a 29% increase in sales this year, according to data company Headset. What is your strategy to stand out in a packed crowd?
CC: During quarantine there has been a trend toward consuming discrete forms of cannabis, such as edibles, to avoid detection by the kids. No smoke, no odor. Also, because Covid attacks the lungs, people were happy to switch to edibles to avoid irritating the lungs with smoke. So edibles got a lift through the pandemic. At Sunderstorm we like the rapid onset form factor. We launched the first nano gummies in California two years ago that kick in within 15 minutes and offer an experience closer to vaping. Kanha Nanos have become a key differentiator for Sunderstorm.
JB: You are a California-based company, but have recently launched in Canada, Colorado, Massachusetts and Nevada. What is your approach to rolling out across the country and competing against home-grown brands?
CC: Every state requires its own strategies since regulations and the ability to get a local license varies considerably. Colorado is what we call a “free market” state, so we bought our own license and have set up our own production facility. It is a very competitive state like California with established edibles brands. To compete we brought in our seasoned marketing playbook from California that has been very successful. We believe in brand building and have given Kanha branded merchandise to local budtenders, installed beautiful point of sale displays, and focused on budtender education. California brands appeal to a wide cross section of the country, and the quality of California brands is top notch.
We are partnering with local license partners in MA and NV since they are “limited license” states, making it costly to get your own license. We believe in quality control, so team members from California have moved to the new states to manage production. We think the trick is to control production, manage sales directly, and focus on marketing assets that have not evolved to the same degree in limited license states.
JB: You are both Burning Man enthusiasts –15 years in a row, I hear — and Keith is a house music DJ, can you tell us about how cannabis and music come together for you?
CC: Cannabis heightens the senses which is why it so often accompanies people attending films, concerts, and clubs. Historically, the cannabis industry is more closely tied to hip hop and rap, but we think combining house music and cannabis is a great opportunity. We intend to throw outdoor house music events with onsite sale and consumption of cannabis products, inspired by our participation at Burning Man. We just want to bring joy into the world, one gummy and one beat at a time.
JB: Your recent collaboration with HBO Max’s “Close Enough” series was a major success, and you were the first cannabis company to partner with the network. How do you view partnerships as a means to attracting new consumers?
CC: One of the challenges this industry faces is that cannabis is still very much a subculture in American society. While there is a lot of support across the population, there is still very little cross-pollination into pop culture. One of the reasons we focused a lot of energy on the HBO project was because we want to be one of the brands that drives cannabis into the mainstream. We need traditional media to accomplish this goal.
I told my team at the time that we could not fail on this project with HBO because the industry needed to gain the confidence of traditional media for its future success. More recently, we have been working on other partnership opportunities because I absolutely agree that we need traditional media to bless the industry, help us attract new consumers, and become more mainstream in order to be successful. We need to move beyond the cannabis subculture.
JB: Which Kanha product or flavor is your favorite?
CC: I love the 5mg rapid onset Kanha nanos, including the Cran-Pomegranite Sativa for socializing and the Passionfruit Indica for chilling out. They both hit quickly, peak at around 2 hours, with a medium length overall duration. I find it closer to a vape experience than a heavy body high from conventional edibles.
JB: What can we expect from Kanha and Sunderstorm over the next year?
CC: We’ve introduced new high dose sour belts this month. Each belt is 50mg that can be broken into smaller 10mg doses. This is perfect for the heavy consumer who needs more THC but doesn’t want to eat an entire pack of gummies, and for the consumer that loved sour belts as kids. Longer term, we are looking at designing functional gummies that offer a particular experience. You can also expect us to launch new form factors in 2022 as we move into our new manufacturing facility in California, and we are cutting deals to expand to new states. We have a lot on the horizon.
JB: Headset projects edible sales to total $2.3B in 2021, the most yet, indicating significant market growth. Do you have any predictions for the future of the edibles industry over the next few years?
CC: As adult use markets mature, edible consumption typically grows faster than the overall market. So the pie is getting bigger, and the slice of edibles within that pie is expanding. We will see a lot more functional form factors that target particular conditions, such as our Tranquility sleep gummies. There will be a lot of innovation and expansion for edibles brands.