2020 CMA Preview: Cannabis Manufacturer of the Year

The three finalists for 2020 Cannabis Manufacturer of the Year represent the diversity of operations in the cannabis sector, but more, the high bar being established by companies for quality and safety.

Nominations were judged on the achievement of national quality and safety certifications and best practices.

Stillwater Brands

www.stillwaterbrands.life

Commerce City

Founded: 2014

Privately owned

Employees: 19

Industry: Cannabis & Hemp

Products: Beverages and edibles infused with THC and CBD

Photos by Jonathan Castner

Stillwater Brands’ innovations extend beyond their extensive product and process testing protocols to product development, where the patented water-soluble Ripple brands of CBD and THC products have captured the imagination of cannabis consumers.

Trusted suppliers in the company’s raw material supply chain provide continuity that translates into consistent product quality for both CBD and THC lines. THC distillate is quality-control tested “before receipt” for potency, color, and aromas pursuant to highly transparent protocols.

CBD products are third-party tested for pesticides, heavy metals, residual solvents, potency, and microbiology. Raw materials sourcing is from U.S. providers only, with a focus on Colorado.

Finished goods manufacturing focuses on maintaining low formulation tolerances in the manufacturing process, targeting thresholds common in the food industry that ensure product consistency, quality, and safety. Shelf stability testing has been a staple of Stillwater protocols to verify dosage control.

CompanyWeek profile: https://companyweek.com/article/stillwater-brands

Medically Correct / incredibles

www.medicallycorrect.com

Denver

Founded: 2010

Employees: 101

Privately owned

Industry: Cannabis & Hemp

Products: Cannabis edibles, extractions, and equipment

Sustained success — staying power — is at the center of MedicallyCorrect’s stellar reputation in the cannabis market.

The company follows an operational path that reflects a deep food background, with emphasis on quality ingredients, refined processing, transparent packaging, and for cannabis, dosage management. The company’s consistently safe and quality-focused product line earned trust for Colorado’s industry early on, critical in the industry’s run-up.

Community involvement and industry and product education effort also distinguish the company. Medically Correct’s influence — and sales — will only increase as the company attains cGMP and other certifications. Yet there’s little doubt the company is already an elite operator.

CompanyWeek profile: https://companyweek.com/article/incredibles

Hemp Depot

www.hempdepotco.com

Colorado Springs

Founded: 2015

Privately owned

Employees: 85

Industry: Cannabis & Hemp

Products: CBD-infused products

Hemp Depot topped off impressive growth with an NSF Dietary Supplements GMP certification in 2020, increasingly the de facto standard for cannabis manufacturing operations. (View the Gold List of GMP certified manufacturers.)

Yet the company’s innovative and persuasive model also set the business apart. It’s in a catbird’s seat — touching much of the hemp CBD market, vertical integration in developing, growing, formulating, and wholesaling CBD seeds, clones, and an array of CBD oil. Many of cannabis leading brands deal in Hemp Depot products.

It adds up to a powerful position in a fast-changing hemp CBD world — a singular mission to certify and professionalize operations to feed a blue-ribbon list of brands. It’s a market position that also comes with responsibilities. The company has been up for the challenge thus far.

CompanyWeek profile: https://companyweek.com/article/hemp-depot

Colorado’s cannabis economy leads the nation. The mayor of its second-largest city pretends it doesn’t exist

If you wish hard enough, maybe it will go away.

That seems to be the approach of Colorado Springs mayor John Suthers, who argued recently to prevent voters from deciding whether recreational cannabis could be sold in the city. His “sharp criticism” of the option dissuaded the city council from approving a ballot measure this fall.

Suthers position was summed up by the Colorado Springs daily newspaper, The Gazette:

“Suthers also argued the promises made by recreational marijuana proponents when it was legalized statewide in 2012, such as reigning in the black market, have not been kept. ‘We are spending infinitely more time and effort regulating marijuana than when it was illegal,’ he said.”

It’s an obtuse statement for the ages. We’re spending more time regulating marijuana, because we’re regulating marijuana. Plus, not only have proponents kept their promises, the dark, dystopian future forecast by opponents of legalization hasn’t materialized.

Suthers shouldn’t be held to account for opposing legal marijuana. He’s been consistent in his opposition to it. That the mayor would instead relegate a billion-dollar industry to the black market is unconscionable for the leader of Colorado’s second largest city. Meanwhile, Colorado’s cannabis locomotive rolls down the track. Every month, the state’s residents demonstrate new and unwavering support for the industry’s products.

It’s a sparkling industry at that. Tomorrow we’ll announce the winner of the second Colorado Manufacturing Awards Cannabis Manufacturer of the Year. One of the finalists, Hemp Depot, is a Colorado Springs company that’s brought dozens of jobs to the city. They’re a national leader, one of a select few cannabis companies to receive an FDA-endorsed GMP certification for professional operations. They bring much needed science, transparency, and operational acumen to a legal hemp CBD market that further legitimizes the cannabis space.

Not that the mayor would know the difference between THC and CBD. For cannabis deniers, it’s all the same.

For the city, it’s more of the same. The professed need of denying citizens their vote is to protect the defense economy. Or as The Gazette surmised, “Opponents argued legalizing recreational marijuana could hurt the town’s chances of becoming the next permanent home for U.S. Space Command because the military would likely weigh the drug laws in competing communities in its decision.”

Left to generals, the U.S. military would do no such thing. Time and again, military brass sloughs off a conservative stereotype with progressive, modern leadership that reflects the makeup of their standard bearers — soldiers, sailors, airmen and women, and scientists. If the U.S. Space Command seeks a cannabis-free zone to host operations, they’ll need to look outside the U.S.

In the real world, if those in Suthers’ camp would embrace regulation and not work to undermine the industry with misleading nonsense, the black market would fade away.

Wish for it. Maybe it will come true.

Bart Taylor is publisher of CompanyWeek. Email him at btaylor@companyweek.com.

2020 CMA Preview: Innovative Product of the Year

Innovation comes in many forms, and in this inaugural Colorado Manufacturing Award for Innovative Product of the Year, companies were asked to submit products distinguished by design-centered manufacturing, with the following criteria:

  • Integration: degree to which manufacturing considerations are incorporated into the product design.
  • Advanced processes: the use of advanced manufacturing processes
  • Leading-edge visual aesthetic
  • Innovative functionality

Guerrilla Gravity

Consumer product, cycling frames

www.ridegg.com

Denver’s Guerrilla Gravity has earned a reputation both as an innovative cycling manufacturer and outstanding business, flashing important operational achievements including a $250,000 Advanced Industries grant from the Colorado Office of Economic Development and International Trade.

Yet a tightly integrated design-to-manufacturing process is the company’s calling card. Highly configurable designs, inspired by local talent, take into account the unique challenges of frame manufacturing. The use of proprietary carbon-fiber technology, in-house molds and printed parts are among the innovations that enable manufacturing of cycle frames in Denver, tipping over an industry paradigm that for decades have sent cycling OEMs offshore.

The improved manufacturability of the final product is further reflected in leading aesthetic functional attributes of the product, like impact resistance in demanding terrain.

CompanyWeek profile: https://companyweek.com/article/guerrilla-gravity

TEI Rock Drills

Commercial product, HCC10X Control Unit

www.teirockdrills.com

The innovative HCC10X control unit was inspired by a customer request to improve safety on the job site.

The company’s successful response started with a design process driven first by meetings with relevant manufacturing departments to address design concerns and simplify the manufacturing process. Design engineers were then available to shop managers once production started, to address issues that were missed in the concept phase.

The product’s rapid development required the use of additive manufacturing to meet the tight deadlines of the project. A working prototype was operational within two weeks, bypassing a longer lead time required with traditional tool and die processes.

The control unit is also functional with multiple excavators, enabling customers to utilize the product with rented equipment, potentially saving thousands of dollars in transportation costs alone.

CompanyWeek profile: https://companyweek.com/article/tei-rock-drills

Eldon James

Commercial product, SeriesLock disconnect coupler

www.eldonjames.com

The notable medical device manufacturer has been awarded multiple patents for spring-free couplers that improve user functionality while maintaining high levels of flow with lower line pressure.

A highly integrated design-to-manufacture process is distinguished by the use of additive manufacturing to rapidly prototype products, facilitate customer feedback, and move products to final production.

The shortened product manufacturing cycle enables a robust design process that results in enhanced usability, including improvements in latch mechanisms and mating features, that have set the product line apart.

SeriesLock innovations have also enabled the company to diversify from the biomedical industry to life science, automotive, and industrial food and beverage applications.

CompanyWeek profile: https://companyweek.com/article/eldon-james

The winners of this year’s Colorado Manufacturing Awards will be announced online from 2:30 to 5 p.m. on Aug. 6, 2020. REGISTER HERE>

How Polis, Newsom, and other Western governors can “get tough” on China

The same day this week the Washington Post reported the Trump administration was “trying to block billions of dollars for states to conduct testing and contact tracing in the upcoming coronavirus relief bill,” Colorado Governor Jared Polis was encouraging the opposite, stating flatly, “The national testing scene is a complete disgrace,” while slamming the federal testing strategy as “almost useless from an epidemiological or even diagnostic perspective.”

For a Western governor to be sideways with President Trump isn’t unusual. From Oregon to California to New Mexico, COVID-19 continues to widen the Grand Canyon-like political divide in the West.

Ironically, COVID also provides a means for political adversaries to rally around shared interests. Manufacturing has emerged as one. However unlikely it is that President Trump will work with Polis, or California Governor Gavin Newsom, or New Mexico’s Michelle Lujan Grisham in an election cycle, in theory each state has much to offer a Trumpian “get tough” strategy on China, namely by helping companies locate more production here.

Governors can’t set U.S. trade policy, but they can provide a road map for federal policymakers. Here are three things western Governors can do to support local manufacturing and chip away at China’s stranglehold on hosting U.S. companies.

1. Work with local companies, one by one, to develop domestic productions strategies. America’s governors are in a unique position. They interact with influential companies — every day. It’s part of the job description.

What’s been lacking are sustained conversations about why local companies and brands offshore production. If this wasn’t the case, there would be more local manufacturing.

A new approach would first acknowledge the uncomfortable truth that U.S. brands have made China a manufacturing superpower. If U.S. companies and brands were key to China’s manufacturing ascendance, so too are they at the center of any American renewal.

Governors can be local manufacturing’s most powerful advocates. One company at a time.

2. Make manufacturing-related R&D a priority. America’s research ecosystem is formidable, but to assume technology acumen translates into manufacturing-related leadership in automation and robotics is misguided.

Arthur Herman’s Wall Street Journal op-ed this week referenced a 2015 Strategy& and PwC study that found “found that U.S. companies were steadily moving their research-and-development centers to China to be closer to production, suppliers and engineering talent.”

It’s a troubling conclusion. The lesson for governors is that a strong manufacturing base is vital to maintaining a world-class R&D ecosystem.

Ensure there’s a connection between universities, labs, and manufacturers. Host events. Facilitate conversations. Put our R&D ecosystem to work for manufacturing.

3. Encourage and subsidize local buying. Products made in the U.S. are often more expensive than those made offshore. Why? Because labor is less expensive.

But the cost of not supporting jobs and infrastructure here, to save a few dollars, can’t be measured. Governors have a bully pulpit to educate and rally citizens to buy locally made products and legislators to subsidize local production. They should use it. It’s a winning, bipartisan issue.

“Getting tough” on China is election-year sloganeering. Deep, strategic partnerships shape Sino-American business and economic ties. Yet for every U.S. brand that leaves China to invest in American workers and communities, China’s influence wanes.

Presidents Obama and Trump both used the office to advocate for domestic production. It’s left to governors and local officials to fill in the gaps and drive a U.S. manufacturing resurgence that works to shift the balance of economic power to America’s shores.

Bart Taylor is publisher of CompanyWeek. Reach him at btaylor@companyweek.com.

COVID-19 provided an opportunity to rebuild CompanyWeek.com. What’s your plan?

For the CompanyWeek team, July feels like January. We’ve used the COVID-19 disruption to invest in both a redesign of CompanyWeek.com and a new supply-chain portal — SCoP. We launched our new site Monday, as the summer turned and as many companies look to the second half of 2020 as a new beginning. SCoP’s around the corner.

If the site is better — improved search, less clutter, better organization of our content, and with SCoP a fundamental realignment of how suppliers are sourced — our efforts are also a response to the shifting ground for U.S. manufacturing.

A common sentiment today is that COVID disruptions will translate to opportunity for domestic manufacturing. And to be sure, factors have aligned to favor U.S. production.

Yet for many companies, across multiple industries, shortening supply chains or locating domestic factories is more talk than reality. As much as we’d like, and despite the interests arrayed to bring back pharmaceutical and PPE manufacturing, many U.S. brands and buyers will fall back on trusted, cheaper suppliers in Asia.

The bar is even higher for other industries.

In a terrific expose on the challenges facing outdoor industry brands, Outside writer Christopher Solomon’s “How the Outdoor Industry Responded to Coronavirus” points out OI’s China addiction, one we’ve reported on for years: