When most people picture cannabis, they picture the counter, the plump flower already sitting on the shelf. The amount of industry it puts into it is visible, in cultivation and manufacturing and distribution, and in the filling work that consumes most of the day. Orlando Padilla got into the traditional side of the plant long before it was legal, and he made time for it, and now runs NovaGrow Labs, a social equity operator that takes cannabis from seed to sale and sells it vertically in Los Angeles. In a video recently released by the LA Department of Cannabis Regulation. “Now you have this opportunity to become an authorized operator, but you have to put in the work.”

Vertical integration
First came the factory, then the business. “I was in love with the plant at a very young age, and coming from the traditional side of things, it was exciting to be able to do things legally and correctly,” says Orlando. “So creating a real cannabis-based business was almost a dream come true for me.” Vertical integration is the way that dream holds its shape, each license in hand, the flower leads all the way. “We are able to cultivate, grow our own flower, package it under our own brand or package it for others, distribute it and ultimately sell it at our doorstep,” says Orlando. “The cultivation never stops. As an indoor crop, we’re basically growing 24/7. You have to have reliable people.”

It’s that hour-by-hour schedule that keeps Reg Escobar growing. “There are schedules to meet, there are many critical points,” says Reg. The room comes down to its inputs, the systems that maintain the temperature against the nutrient program, the watering cycles, the light cycles. Genetics carries the heaviest burden of proof. “We do a lot of fen hunting for different breeds,” says Reg. “Finding the right product that we believe is usable and will represent our brand.” None of them run on a person. “I couldn’t do it by myself, that’s why I need all these, we’ll call them lieutenants, running the business,” says Reg. “We rely on our employees because they have the final say. They are the ones in charge of the product, and communicating with them helps us ensure that what we get from distribution and cultivation is what we expect every time.”

© City of Los Angeles Department of Cannabis RegulationOrlando Padilla

That same trust carries over to the counter, where it becomes product knowledge. “Many of our employees are very knowledgeable about all the products in the store,” says Jewels, an employee of The Chronic. “So we make sure we pick the product that’s exactly what you need.”

Cultivation was NovaGrow’s first license, and every operator must clear the way to the filling machinery. “Metrc’s integration was very difficult to successfully cultivate and work through the industry on any type of license,” says Reg. “You have to understand our compliance systems, the tracking and tracing system, the SOPs that are issued by DCC, maybe DCR, any of our local regulators, with the proper training to overcome that.” SOPs have come together over time, written specifically for each license, the thing that moves the operation on its day. The day begins before the doors open. “The retail store opens at 6:00, so we have the staff coming in at 5:45,” says Orlando.

Part of the community
For people who work on the floor, shifts involve more than just your classic work schedule. “It’s a blessing to be a part of it, to see where we started and where we are and talk about our future,” says Moses, an attorney with The Chronic. The brand NovaGrow is launching comes with a name that carries its history. “If you know the history of running the brand, The Chronic, there’s a lot of responsibility with that brand name,” says Orlando. “I feel very blessed to have the opportunity to work with that name. So when I deliver the product I have to make sure it’s of the highest quality and people respect it. It’s a respectable name in this industry.”

The base of the whole thing is the block it sits on. “Our culture is about community. We’re part of the community and we’re happy to be part of the community,” says Moises. “I grew up in this neighborhood, so it’s very special to me. Everyone has their local coffee shop, their local donut shop. We’re the local cannabis shop.”

The weight of regulation is the part that Orlando says new operators misread. “This is the most regulated industry in the world, and there are so many levels, so many hurdles,” says Orlando. Fulfillment is the majority of the work, not part of it. “Cannabis fills almost 75%,” says Reg. “A lot of new operators and owners think it’s something they’ll be able to handle themselves, but a successful operation definitely needs a compliance manager, a familiar person who can provide training and guaranteed SOPs to make sure we’re staying within regulation, compliance and the 10 different tax levels that are going on.”

Los Angeles puts its own layer on top. “Now with the city of L.A., construction and safety and the fire department, it’s very difficult to operate here,” Orlando says. The scrutiny is heavier on someone who came from the illegal market. “I understand this came from an illegal underground place, but now that it’s legal, it’s a challenge because we’re constantly being watched,” Orlando says. “Getting a license is hard enough, and once we get these licenses, we need that extra support to be able to operate.” The tools exist, in his reading, and taking it is the gap. “I think the tools are there. DCR, you’re doing a good job of making the platform available, but I still think people need that push to get on there and actually use what you have available,” says Orlando.

Too many operators leave those resources on the table, as Reg sees it. “I feel like there are a lot of operators out there that aren’t making the most of their resources,” says Reg. “That’s what we’ve really tried to do here at Nova, especially starting in Orlando, being part of the social equity program.”

For Orlando, his stake is personal, and they cross everything that existed before the license. “I’m very passionate about this. I made time for this thing,” Orlando says. “For me, this is vindication and validation. Coming from the streets, let’s keep it real, seeing the evolution of cannabis and now being a business owner in the city of LA, speaking with Dr. B is a special day for me.” What Reg lets other operators do is stop trying to do it alone. “Get involved with your cannabis community, use whatever resources you have,” says Reg. “It’s the only way we can all stay together as a community and thrive and succeed.”

Source: Los Angeles Department of Cannabis Regulation