Introduction
If you go back far enough on my blog you will find that my reviews used to include much more personable stories. One day it changed–I instead focused my writing on the weed and the reviews. This was due to a moment in time where I didn’t want too much of my private life online and I thought people benefited more from my reviews. To be honest, I still do enjoy my privacy. However, I think I can add value in sharing my personal stories and experiences. This brings me to the story I’d like to tell today, about the time I met the cannabis venture capitalists of Arizona: An Inside Look at the Arizona Cannabis Industry.
The Westin Kierland
On this day, I found myself in Scottsdale, Arizona at the Westin Kierland Resort. Tucked away in ritzy Scottsdale, the Westin is pure upscale elegance meets Scottsdale chic. We’re talking plush rooms decked out in desert hues with killer views of Camelback Mountain. At the heart of the property is a huge pool complex with a water slide, lazy river, and private cabanas. Golfers can tee off at the 27-hole championship course designed by the legend himself, Arnold Palmer.
Dining-wise, you’ve got options for days, from fancy Southwestern cuisine at Deseo to chips and guac by the pool at Agave. It’s a very luxurious property, and one of the nicer ones in Phoenix and its suburbs. They have three bars, a traditional lobby, bar, a high-end scotch bar, and a bourbon bar that I enjoy very much.
Good Times
I was there with a good friend of mine, Pat, and we always have the goal of not ending the night until we have a really good story to tell. We’d had a great day so far with many amazing stories to tell already. It was my birthday and we had spent a bunch of time with a good number of friends, some of which were based in Phoenix and others who were in town visiting. Pat had got me a singing cow telegram that performed in the middle of the hotel lobby, ensuring the most embarrassing experience that I leaned into.
After a great day and night hanging with the friends, Pat and I went on our own adventure and ended up at the Bourbon bar I like so much. By this time it was probably close to midnight. This is where it gets interesting. We grab some drinks and sit down randomly at a table with two venture capitalists–who invest in cannabis in Arizona–as well as an advisor to them.
Once they shared their line of business, Pat was very quick to inform them of my expertise. At first they were very skeptical. I’m sure when you have that kind of money people are constantly trying to scam you. But after some vetting by both the VCs and their advisor, it was very clear that my skill set far exceeded that of their advisors.
The Bourbon bar eventually closes and we all headed to a sticky, nasty dive bar where everything is sticky and nasty. The bar, the floor, the drinks, the countertops. It was not long after we arrived that the VC group shared with me they were going to tour a grow facility the next day. They asked me to join them and advise, which would me a first-hand experience in the Arizona Cannabis Industry.
Arizona Cannabis Industry Facility Visit
The next day their driver picks me up and we head to the facility. The organization is the third or fourth largest in Arizona. The cannabis licensing in Arizona is very different than California, or even other states. A single cannabis license in Arizona allows you to cultivate, distribute and sell direct, whereas most states require separate licenses for each process.
The venture capitalist had already invested millions of dollars in this facility. At the time, the client was requesting more funding, which was the purpose of the meeting. The owner greeted us and was our tour guide throughout the entire experience.
I began to ask questions to the owner and his history with cannabis. He was very honest in admitting that he did not have one. He was a retired businessman who came out of retirement to help his kids run this cannabis company that they had obtained a license for. He’d never cultivated cannabis, nor had he even really smoked it. It was a pure money play. And an introduction to what was ahead.
Okay, quick disclaimer. I don’t cultivate the plant nor am I an expert. However, I do have friends who are. They’ve shared tons of knowledge and experience with me. With their guidance, I’ve gained enough knowledge to capably lead tours on my own on their behalf through cultivation facilities, explaining growing processes and operations.
With all that said, I’ve learned that most important factor of a cultivation is the ability to control the environment. If you can’t do that, it’s a wash. Notwithstanding, the first room we walk in was a complete and total disaster–a wave of mildew aroma encapsulated us. The plants were almost soggy, all leaning to the side with visible mold in the growing medium.
The Issues
Every room–whether it was a nursery, pre-flowering room, flowering room or dry room–all had mold and mildew issues. The facility had three different buildings, each one with dozens of rooms, and out 100+ rooms, I only saw 10 with a controlled environment.
There were many other issues. They distributed the same nutrient recipe to every strain, and the nutrient distribution system that they built only allowed for one type of nutrient. They weren’t able to accommodate differing flowering cycles between strains, preventing some products from fully developing. Their canopies were completely uneven, preventing plants from getting an even amount of light.
The tour lasted about three hours through three facilities, and also allowed us to spend time with the extraction team. The majority of the concentrates they make are butane-extracted. Solventless was not on the road map. For those who don’t know, solventless means an extraction made without a solvent such as butane. You should only smoke solventless extracts, as it’s very hard to get all the solvent out of a traditional extract, and so you would inevitably end up consuming some of that chemical.
The tour also took us through their edible facility, which for the most part looked very professional–except for the fact that they were creating edibles with moldy weed. We were then led through their mechanical pre-roll area, where machines resembling medieval torture devices churn out joints.
The Scariest Part of the Arizona Cannabis Industry
And this is when we get to the scariest part. The owner says he’d just purchased two radiation machines, which are used to process moldy weed and allow it to pass testing. But wait–he goes even further and admits he currently has 2,000 lbs of moldy weed he is trying to process.
This is very concerning. We do not yet know the effects of radiating weed, and furthermore, I’m very confident that even after treatment the mold still exists in some form, and is not healthy to smoke. It was also very concerning to see the young adults in a very small room working these two radiation machines, most likely being exposed to radiation themselves. You can see in the pictures how tight the room is.
It’s also worth noting that this radiation machine has been reverse-engineered to infuse terps into flowers. I do not think this is a good thing, nor do I think spraying weed is a good thing. I think these examples are indicators of cannabis going in a tobacco-like direction that is going to lead to many health issues.
Companies are trying to innovate too quickly without regard for health risks, and they’re using customers as guinea pigs. This is one of the reasons why I smoke so much living-soil flower these days. Stuff grown all natural.
The Feedback to the Cannabis Venture Capitalist
After the tour, when I gave my feedback and advice to the venture capitalists, I told them they should not invest money in expansion as requested, but instead invest money into getting the right experts in place. Master cultivators who know how to design their rooms properly to create the ideal environment for the plants to thrive, including proper airflow, ventilation, humidity and temperature. I also discussed how each strain will have unique nutrient needs to thrive, and how a properly managed canopy can lead to a better yield, which can increase revenue. Not only a higher yield, but also a higher-quality product which can be sold at a higher price.
That however, did not fit their business model. They are trying to put out as much inexpensive low-quality product as they can, sell what they can and convert the rest into edibles, concentrates and pre-rolls. The worst part is their market is low income, people of color. It feels like exploitation and I hate to see the plant I love so much associated with it.
I also told them that I only see this company surviving for a very limited time pushing this moldy, irradiated weed. California companies that take this approach tend to fail, while expert cultivators who focus on quality thrive by running circles around inexperienced business operators. The market rewards skilled growers who avoid shortcuts, and this company will likely struggle unless it changes course.
I never provided any feedback directly to the business owner or the cultivator operators.
My Recommendation to the Consumer of the Arizona Cannabis Industry
My recommendation to you, the consumer, would be to not buy in-house grown flowers. If the price is too good to be true, there’s a reason why. Now, there are always going to be exceptions, but I would generally go with brands I trust that deliver consistent quality.
The old saying “you get what you pay for” often rings true in the cannabis industry. Be wary of flower being sold at rock-bottom prices – it likely means poor quality control or cut corners in the growing process. Stick to reputable brands known for their meticulous cultivation and curing standards. An extra few dollars spent per eighth is worth it for clean, mold-free cannabis you can feel good about putting in your body.
As the consumer, you have the power to guide this nascent legal weed market in Arizona toward quality over quantity. Each purchase for expertly grown artisanal product versus budget basement bud sends a message. Support the cultivators who do it right – your health and the integrity of this industry depend on it.
