THE CANNABUSINESS GUIDE TO ON-DEMAND CANNABIS …

ON-DEMANDCANNABISLABELING

THE CANNABUSINESS GUIDE TO

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Which InformationShould be Included on Cannabis Labels?

Example of a Label that MeetsRecommendations

In-House Labeling Versus Third PartyPSPs

Choosing the RightPrinter and Inkfor Labeling

How Does LabelDesign SoftwareWork?

What Do I Need toKnow About LabelMedia?

Introduction IN-HOUSE CANNABIS PRODUCT LABELING

Regulation is steep in the growth and production of cannabis but also extends to cultivators, processors and dispensers of medicinal and recreational marijuana, especially when it comes to packaging and labeling product. In the US, package and label regulations vary significantly between states, but newly established state regulatory agencies seem to be borrowing from and building on foundations established by early adopter states, taking lead from their experience. This documents aims to clarify and offer best practices for cultivators, processors, and retailers looking to achieve self-sufficiency in creating on-demand cannabis product labels:

1. What information needs to be included on labels?2. Examples of compliant cannabis product labels3. Comparing in-house and third-party label printing4. How to choose the right printer and ink options5. Who does label design software work?

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Which Information to Include on Cannabis Labels? SETTING THE STANDARD

In advance of cannabis sales being deemed legally federally, industry pioneers have put their heads together to establish a set of labeling and packaging recommendations. These recommendations help protect consumers as well as cultivators, processors, and retailers. The National Cannabis Packaging and Labeling Standards Committee is a collaboration between the Council on Responsible Cannabis Regulation (CRCR), and The National Cannabis Industry Association (NCIA).

Summarized labeling recommendations:

FONT AND TYPE SIZE All required labeling information shall be in any legible font that is at least 1/16th of an inch in height based on the lower case letter “o”. COMMON OR USUAL NAME OF PRODUCT Common or usual name of the product in boldface type on all cannabis product labels. “Cannabis” should be included. LICENSEE NAME / PHONE NUMBER / EMAIL ADDRESS Contact information of licensee that produced or dispensed the finished product for the purpose of receiving product complaints and inquiries. NET QUANTITY OF CONTENTS Stated in both U.S. customary and Metric (SI) units; ex-pressed as fluid measure if the product is a liquid; and expressed as weight if the product is solid, semi-solid, or viscous. LICENSE NUMBER / BATCH OR LOT CODE All product labels to include the state-issued license number of the cultivator or manufacturer who produced the finished product and the product batch or lot code, for tracking purposes.

INGREDIENTS LIST (For ingestible infused products) Require ingredients listed by common or usual name in descending order of predominance for all products con-taining at least one ingredient not derived from canna-bis.

ALLERGEN LABELING (For ingestible infused products) Require labeling of major food allergens for all ingestible infused products and concentrates that are intended to be cooked with, eaten, or otherwise swallowed and digested (i.e., Activated Concentrates). NUTRITION FACTS (For ingestible infused products) Require Nutrition Facts on labels for edible cannabis-infused products and concentrates that are intended to be taken orally.

CANNABIS FACTS PANEL Require a Cannabis Facts (Potency) panel on all cannabis product labels that includes % of effective THC and all other marketed cannabinoids by weight.

CONTAMINANT TESTING STATEMENT Require a generic statement of compliance with mandatory contaminant testing on all cannabis product labels.

UNIVERSAL SYMBOL Require a universal symbol that indicates the presence of THC in a cannabis product on the packaging or label-ing of all finished cannabis products.

WARNING STATEMENTS Require a standard warning statement on cannabis products based on the type of product.

PROHIBIT UNTRUTHFUL/MISLEADING STATEMENTS Prohibit untruthful or misleading statements in cannabis product labeling, including health claims.

LIQUID UNIT MEASUREMENT Require multi-unit liquid ingestible infused products intended for adult use to be dispensed to a consumer in packaging with a device or mechanism for measuring a single-unit portion of the product.

PACKAGING-SPECIFIC RECOMMENDATIONS • Child-Resistant Packaging • Avoid Packaging Attractive to Minors • Contaminant-Resistant Packaging • Prohibit Packaging that Resembles Packaging of Certain Commercially-Available Products • Opaque Packaging

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Example of a Label that Meets Committee Recommendations STRIVING FOR TRANSPARENCY AND CONSISTENCY

Below is an example of a compliant cannabis label that incorporates the recommendations of the committee. Note that the universal symbol is based on the recommendation when in practice, states have delineated their own unique cannabis product symbols.

EXAMPLE INFORMATION LABEL - FLOWER CURRENT UNIVERSAL SYMBOLS

CALIFORNIA

MASSACHUSETTS

NEVADA

COLORADO

MICHIGAN

OREGON

WASHINGTON

OG Kush • Dried Cannabis Mint Fields

614-223-4554 • [email protected]

Expiry Date: 2/10/20

Packaged on: 12/15/18

Lot 12345

Net weight 20 g

WARNING: This product may have intoxicating effects. Do not drive or operate heavy machinery while under the influence of cannabis.

Cannabis FactsActive ingredient in each gram

Effective THC.............................23%CBDa...................................................2.4%CBG.....................................................0.8%

Company Branding

Common or Usual Product Name

Cannabis Facts Panel

Warning Message

Licensee Name

Licensee Contact Information

Product Expiration Date

Product Packaged On Date

Lot / Batch Number

Product Weight

Universal Symbol

Product Barcode for Tracking

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12

1

2

56

78

109

3 11

12

4

Photo Source: BNN Bloomberg (link)

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In-House Label Versus Third-Party PSPs CONTROLLING YOUR OWN BRAND AND SPEED TO MARKET

A quick internet search will reveal dozens of companies (print service provid-er) ready to sell pre-made or special order labels, which may feel like a conve-nient shortcut but creating and printing your own labels in-house is likely faster, cheaper and smarter.

IN-HOUSE

• Create labels specific to state regulations• Labeling becomes “On-Demand• Change info from label to label or in batches• Save on short-runs or single-use special orders• Only print the labels you need• Meet shifting market demands• Correct errors immediately• Create labels unique to your business/brand

THIRD-PARTY PSPs • Pre-printed labels may require additional hand/type-written information• May need additional labels• Errors/misprints • Incorrect labeling can lead to recalls, fines or operational stoppages• Minimum order quantities• Lengthy lead times for non-stocks or custom orders

https://www.bnnbloomberg.ca/baggies-no-more-what-pot-products-will-look-like-when-they-hit-canadian-shelves-1.1140632

Color Inkjet Printer IMAGE QUALITY

IDEAL FOR

Photo Quality Vivid Color Printing

AFFORDABILITY OF INK (CARTRIDGE)

Color Laser Printer IMAGE QUALITY

IDEAL FOR

High-Speed Medium-Detail Printing

AFFORDABILITY OF INK (TONER)

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Choosing the Right Printer and Ink WHAT IS RIGHT FOR CANNABIS?

Inkjet printers have become a standard in the domestic market, especially for personal use but their popularity in business is growing. Inkjets aren’t new, but improvements in technology and quality have pushed them ahead of laser printers.

DYE-BASED INK Uses a small amount of liquid dye mixed with

water in the cartridge (mostly water, in fact).

Dye-based inking is typically a bit cheaper

and provides a higher quality transfer,

especially where colors are concerned, but

because the dye sits atop the medium, it is

susceptible to streaking from water and

fading when exposed to heat and

environmental gases.

PIGMENT-BASED INK Pigment inks are a powder-like, dry substance

that also mixes with water in the cartridge.

The particles bond with paper fibers creating

a thicker print that can resist heat, water and

other natural elements. Color retention is

longer with pigment-based ink as well,

potentially resisting fading for centuries

(not a typo!).

How Does Label Design Software Work? WHAT IS RIGHT FOR CANNABIS?

On-demand, on-premise labeling ensures that your label designs are always fresh and contain the most current, accurate data. In the U.S. label market, over half of all print jobs are short runs of 50,000 or less. Using on-demand labeling technology can reduce total labeling costs by up to 50%, by eliminating inventory of pre-printed label stock and waste.

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Importing ImageryIf you’re working with a professional designer, or want to bring in

company branding elements (such as logos) or state-mandated uni-

versal symbols, this is achieved by importing external image files such

as JPEGs and PNG files.

In order to automate batch data such as barcode identifiers, lot or

batch numbers, packaged on and expiration dates, your label design

software can connect to a database that will dynamically populate

your labels with this information on-the-fly.

Once your database connection has been established, you will place

fixed objects (such as text fields) that will act as containers for this

data.

Not all printers share the same characteristics and, as a result, different

options are available according to the model of printer chosen. The

Epson TM-C7500 is a recommended model that enables many of the

rich feature sets available in class-leading label design software.

Connecting to Database

Placing Variable Data

Connecting / Sending to Printer

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TEKLYNX CODESOFT LABEL SOFTWARE

CODESOFT is more than just a label designer. You

can easily integrate label printing and RFID

technology into your business process, increasing

your ability to quickly get to market with beautiful,

compliant labels.

LEARN MORE

https://www.appwaresolutions.com/us/rfid-and-barcode-labeling-solution-for-cannabis-production-by-teklynx-codesoft.html

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What Do I Need to Know About Label Media? DON’T BE OVERWHELMED BY ALL THE OPTIONS

When it comes to choosing the right label media for your products, there is definitely an element of preference at play, but you’ll also want to ask yourself these very practical questions.

LABEL SIZE & SHAPE

How Big Do Your Labels Need to Be?Color Inkjet Printers such as the Epson TM-C7500 offer a widerange of sizes and shapes when it comes to adhesive labels.

Typical sizes range from: .5” x 1.5” all the way up to 4.25” x5.5879”.

Standard shapes include: rectangular, square, circle, and oval.Custom label shapes are also available, and are called dye-cut in the printing industry. These come with a premium price, but offer flexibility and uniqueness of design.

LABEL FINISH

How Do You Want Your Label to Look?The finish of your label refers to look, but also feel and durability of your label media.

Standard finishes include: gloss, high-gloss, matte, satin, andclear.

You will also be faced with making a choice between paper labels and polypropolene label finishes. For almost all cannabis use cases, you’ll want to opt for polypropolene as it is heat and oil resistant, keeping your label design in tact when han-dled by humans or exposed the sun.

MATTE SATIN GLOSS

(619) 656-5887

cannabisinventorycontrol.com

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https://cannabisinventorycontrol.com

erik

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THE CANNABUSINESS GUIDE TO ON-DEMAND CANNABIS …