MJBizMag August 2020 - 66

How to Compete With the Illicit Market
Moxie packages its flower with gold, tamper-evident seals and uses multicolored tins for its line of gummies. Courtesy Photos
COUNTERFEIT PACKAGING
A PROBLEM
Counterfeit products aren't the only
problem for legitimate cannabis
businesses.
" We have to do something about
the counterfeit packaging that exists
online, " said Andrew Kline, director of
public policy at the National Cannabis
Industry Association. " The other
challenge is making sure people aren't
selling that kind of packaging with fake
results at any trade shows, which is a
little harder to police. "
Jordan Lams, founder and CEO of
Long Beach, California-based multistate
operator Moxie, said that before he
sells gummies or flower to a retailer,
he conducts rigorous background
checks on the stores and ensures
his custom packaging is difficult to
duplicate. Moxie's custom packaging
includes multicolored tins for gummies,
Andrew Kline
cardboard boxes with a see-through
window as well as glass jars with gold
tamper-evident seals for flower.
" It would be nearly impossible to
replicate any of our products, and
64 Marijuana Business Magazine | August 2020
we ensure that through packaging, "
Lams said. " It would take hundreds of
thousands of dollars of investment for
someone to rip it off. It's too much of an
investment to undertake. "
During the 2019 vape crisis,
California-based KushCo Holdings
entered an exclusive distribution
agreement with De La Rue, a European
provider of anti-counterfeiting and
authentication solutions that prints more
than 8 billion product-authentication
labels annually. The partnership provides
enhanced packaging with secure visual
authentication technology using threedimensional
images, label tracking and
data-capturing capabilities.
KushCo sells stickers with De La Rue
technology to its packaging customers,
allowing them to monitor where the
package goes throughout the supply
chain and ensure products do not enter
the illicit market.

MJBizMag August 2020

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