Since marijuana is legal in 18 states and more are looking into the idea, many businesses and entrepreneurs want to incorporate cannabis into their ventures. So, whether you’re planning on opening a dispensary or selling cannabis-infused food or drink in your restaurant, there are always legalities to consider.
Ensure you have the proper licensing for your cannabis business.
If you already have a restaurant, you already have all the basic legal requirements for that business. However, you likely don’t have everything you need to sell cannabis beer. One of the first things you’ll need is a license to sell cannabis. The licensing can vary drastically from state to state, whereas some states have open applications and others are stricter.
The type of cannabis license you’ll need varies as well. For example, you may need different licensing depending on if your cannabis business falls under cultivation, retail, edibles, or investments. For a restaurant, you’d be interested in the edible category. There are also licensing requirements for the employees working at your cannabis-related business. These requirements can vary from state to state. In addition, your local government may have requirements to meet. For example, some cities or towns require a permit to operate a cannabis business while others may prohibit it regardless of whether it’s legal or not. The key to having all of the proper licenses is to check with your state and local government to be sure you’re meeting their requirements as well.
Another crucial aspect of the licensing side of your business is that it is now legal to hold both an alcohol license and a cannabis license. However, it is not currently legal to sell both alcohol and cannabis products from the same establishment. So, if you’re planning on adding cannabis beer to the menu, remember you’ll be taking alcoholic beverages off the menu.
Don’t forget to add cannabis insurance to the list.
Most business owners take full advantage of the various insurance companies available to meet their general needs. However, when you add cannabis to the mix, it can change things. There’s no reason to worry, though, because numerous insurance companies are out there geared toward the cannabis industry. In addition, the cannabis industry comes with its own set of challenges that cannabis insurance can cover. For example, a credible cannabis insurance company will have a wide array of coverage options, including:
- All risk property coverage
- Business interruption
- Crime insurance
- Cyber liability
- Directors and operators (D&O) insurance
- Errors and omissions employee practice compensation
- Equipment breakdown
- General liability and excess
- Inland marine coverage
- Operations liability
- Product recall
- Professional liability
- General liability
- Product liability
- Stock and inventory coverage
- Workers’ compensation
You’ll need a source of cannabis for your craft beer.
Probably the most essential aspect of this list is the cannabis itself. You can’t brew cannabis-infused craft beer without the cannabis, of course. Not to mention, if you’re running a restaurant, it’s not likely you’re dabbling in professional cannabis cultivation. Therefore, you’ll need to find a cannabis supplier. However, you should always properly research and evaluate your supplier to ensure you’re providing a safe product for your customers. The job will fall to you to identify the best products for your restaurant. As a result, you’ll need to communicate with grow operations, sample products, investigate lab testing, and more.
Get out there and start brewing the best cannabis-infused craft beer on the market!
It can be a challenging experience to jump into the highly regulated cannabis industry. However, with the proper licensing, insurance, planning, and preparation, you can do it. Be sure to follow all of the legal requirements, and you’ll be on your way. You may even find your beer being distributed by a major supplier one day, like this beer distributor in Allentown, PA.