Picking up on my most recent article, The Cannabis Cream Puff War and The Role of Trade Associations, I decided to do a deeper dive into the relevant trade associations servicing the cannabis industry (i.e., the cannabis industry represents the combination of the hemp sector and the marijuana sector).
So, let’s first return to fundamentals. A trade association, also known as an industry trade group, business association, sector association or industry body, is an organization founded and funded by businesses that operate in a specific industry. An industry trade association participates in public relations activities such as advertising, education, publishing, lobbying, and political donations, but its focus is collaboration between companies. One of the primary purposes of trade groups, particularly in the United States, is to attempt to influence public policy in a direction favorable to the group’s members. For example, a trade association may help establish industry standards that protect the public or allow components from different manufacturers to operate together.
But there seems to be an indecipherable narrow focus of these cannabis trade organizations. If the niche is defined too narrowly, you’ll have a hard time getting anything accomplished. And along the way, you might not be following your own purpose or meeting your own goals.
With all of that said, I reached out to a wide array of the trade associations that have been active in the space, and who have been active concerning the so-called ‘civil war’ issues, in particular. It is my opinion that these trade associations reflect the necessary reputation and thoughtful hard work that is required to make a difference in the cannabis (hemp and marijuana sectors, combined) industry. And, as you will see, they are not entirely aligned, but their positions are (mostly) cogent and not blatantly protectionist. So where do things shake out?
H/T: www.forbes.com
