Weed makes mainstream move with formation of Cannabis Compliance Alliance

US Cannabis compliance consulting firms Allay Consulting, iComply Cannabis, GMP Collective and TraceTrust have formed the Cannabis Compliance Alliance, a collaborative group created to put the cannabis industry on the same footing as mainstream business sectors.

The Cannabis Compliance Alliance aims to service the cannabis industry through pooled resources and also to access deals such as the recently announced insurance discount companies with risk mitigation protocols.

“Though we may be competitors, we have a common objective: create a safer cannabis industry for consumers and businesses,” said Kim Stuck, CEO and founder, Allay Consulting. “Through this collaboration, we can institute real change nationwide – offering tangible ways to safeguard companies, ultimately protecting our customers in the long run.”

Working with clients in cultivation, processing and retail, each firm offers services like state compliance, audits, staff training and assistance with certifications from current good manufacturing practices, quality management (ISO 9001), food safety (ISO 22000) and Organic.

Earlier this year broker New Dawn Risk published its white paper on insurance for the US legal cannabis, CBD and hemp markets.

The 2021 report, Opportunity knocks at last in the US cannabis insurance market, urges insurers to consider how they can meet the market’s needs once they are legally allowed to write the risks.

Since the publication of the previous report in 2020, US sales of medical and recreational cannabis have grown exponentially, reaching $17.5 billion in 2020, a 46 percent increase from 2019. In addition, the legislative landscape in the USA has been transformed by the arrival of the pro-cannabis Biden presidency, supported by a Democratic majority in both Houses.

2021 has also been a pivotal year on the legal front for the North American cannabis market, with Virginia Governor Ralph Northam signing a bill that legalises the simple possession of marijuana in April.

The move is a seminal one as it makes the state the first in the US South to allow the drug’s recreational use, the governor said.

It followed New York Governor Andrew Cuomo’s signing a bill in March which paves the way for recreational sales of marijuana to begin in the state next year, another ground-breaking decision which is set to provide a huge commercial boost to cannabis farmers.

Indeed, New York’s legalisation of recreational marijuana could generate $5 billion in sales for the first year, according to the head of one of the country’s biggest producers, Ben Kovler, CEO of Green Thumb Industries.

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