WEBVTT - Cannabis at Intersection of Commerce and Culture

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<v Speaker 1>This is Bloomberg Business Week with Carol Messer and Jason

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<v Speaker 1>Kelly on Bloomberg Radio. So, as we were talking earlier,

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<v Speaker 1>among the Bloomberg Fifty, which will be in the current

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<v Speaker 1>magazine's hitting news stands on Thursday, is executive chairman of

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<v Speaker 1>one of the big cannabis companies. And you know, we

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<v Speaker 1>talk a lot about the industry. We did, Jason last year,

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<v Speaker 1>we certainly did this year, and we will, no doubt

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<v Speaker 1>about it continue into So we want to find out

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<v Speaker 1>a little bit about what's to come the importance of branding.

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<v Speaker 1>D Simms is with us CEO of the cannabis brand

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<v Speaker 1>consultancy company BRN Group, joining us in our Bloomberg Interactive

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<v Speaker 1>Broker studio right here in New York. Welcome to Bloomberg Radio. Hello,

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<v Speaker 1>glad to be here. So tell us a little about

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<v Speaker 1>the cannabis industry, because I feel like there's been some

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<v Speaker 1>highs and lows, no puns intended, but I do think

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<v Speaker 1>like we've talked to a lot of the CEOs of

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<v Speaker 1>various companies, and you know, we still need to get

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<v Speaker 1>the regulations figured out so that there's federal regulation the US,

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<v Speaker 1>so it's not a state by state cases, we're still

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<v Speaker 1>trying to figure out the financial aspect of it. So

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<v Speaker 1>tell us abe about your thoughts on what's to come

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<v Speaker 1>and and and how it's moving along incredibly early days, Um,

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<v Speaker 1>when we're excited to be a part of it. I

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<v Speaker 1>mean at the Burn Group, our focuses and rooted in

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<v Speaker 1>three pillars and tech distribution and brands. Sorry, I SBRN

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<v Speaker 1>Bird Group, Burn Baby Baby exactly, So I don't want

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<v Speaker 1>to get in the weeds. But okay, So so the

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<v Speaker 1>reality is, Um, you know this is an industry, right,

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<v Speaker 1>I've I've worked in everything from fashion, fragrance, TV celebrity

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<v Speaker 1>spirits where you kind of had to build and determine

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<v Speaker 1>what segment you're going after. This is interesting, right you

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<v Speaker 1>have like a you have a plan that is centuries old,

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<v Speaker 1>Like this is like how do you take this? Is

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<v Speaker 1>like cinnamon? Right? So you have an existing proposition, um

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<v Speaker 1>that essentially needs to be rebranded and destigmatized, which is

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<v Speaker 1>which would be you and primarily by I think actually

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<v Speaker 1>a step before marketing is really in my education. Um,

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<v Speaker 1>you know, as a person who has built a gazillion brands,

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<v Speaker 1>there's a huge gap in the basics of like nomaclature

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<v Speaker 1>and what is CBD, what is tc H, what does

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<v Speaker 1>cannabis even mean? Where does the plant come from? Is

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<v Speaker 1>this new as a novel? Um? So I think for

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<v Speaker 1>us at the Burn group, we look at the brands

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<v Speaker 1>that we're building. We've put together kind of a crack

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<v Speaker 1>team of UM people who deeply understand how to build

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<v Speaker 1>cannabis brands, but at the intersection of commerce and culture,

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<v Speaker 1>which we feel like don't exist right now. UM. I

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<v Speaker 1>think on top of that, when you look at what

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<v Speaker 1>the futurist and fashion or is it like alcohol you've

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<v Speaker 1>worked with, you know certainly getting a lot of you know,

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<v Speaker 1>spirit brands out there. Is it the same thing? And

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<v Speaker 1>that's important responsibly, um, But there are lots of rules

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<v Speaker 1>and regulations when it comes to the alcohol industry. So

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<v Speaker 1>is it the same thing? Can we make the comparison

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<v Speaker 1>a hundred percent? I mean, when I was looking at

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<v Speaker 1>the industry, UM, somewhat longingly from the outside, there's a

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<v Speaker 1>ton I think of some hilarities, um, you know, in

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<v Speaker 1>terms of in the spirits business, in terms of building

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<v Speaker 1>premium brands, in the opportunity to connect with consumers. The

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<v Speaker 1>gap though, is in an industry where in spirits where

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<v Speaker 1>it is heavily self regulated, right, um, which is which

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<v Speaker 1>is really the really the way to go when you

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<v Speaker 1>think about the future of potential. Um, what regulation looks like.

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<v Speaker 1>My hope is that regulators understand it can be done

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<v Speaker 1>in isolation. It has to be legitimate private public collaboration,

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<v Speaker 1>just because the information is so disparate. Um, so we

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<v Speaker 1>kind of have to also at the same table share

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<v Speaker 1>information to determine what regulations make sense from a guidance

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<v Speaker 1>counsel standpoint, not a whole mon understandpoint. And you talked

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<v Speaker 1>about the intersection of commerce and culture, which is so fascinating,

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<v Speaker 1>and you probably sat at one of the most fascinating

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<v Speaker 1>next side of that, which is working for Daddy brother

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<v Speaker 1>Love Combs. Yeah. So, I mean, and very few people

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<v Speaker 1>candidly in the modern era have done that as well

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<v Speaker 1>as he has obviously, as you did in many ways

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<v Speaker 1>across a variety of brands and really understanding an audience,

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<v Speaker 1>really understanding marketing. What do you bring from that experience

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<v Speaker 1>to this Yeah, like fourteen years um work, they're building

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<v Speaker 1>everything from you know, from from fragrance as I mentioned,

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<v Speaker 1>and you know, my favorite story from Rock Vodka, which

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<v Speaker 1>was horrible, terrible story negative five years Kager the spreadsheet

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<v Speaker 1>you woquy at too. You know what is now considered

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<v Speaker 1>to be like a two bion dollar retail value brand. Um,

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<v Speaker 1>but the science I think of what of what Sean

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<v Speaker 1>brought to the table, whether it was and then you know,

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<v Speaker 1>a new biggie song, or whether it was building the

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<v Speaker 1>second most popular ultra premium baca in the world is

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<v Speaker 1>really around. You can't like, you can't fake a conversation

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<v Speaker 1>with your audience. And this was true thirty years ago,

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<v Speaker 1>but today is hyper true and it's incredibly missing right

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<v Speaker 1>now in the cannabis space. I um, you know, my

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<v Speaker 1>newest parlor trick right now is ask anybody to name

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<v Speaker 1>three CBD brands outside this building, and no one can

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<v Speaker 1>get to If you can get to, like you're in

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<v Speaker 1>an audience that's probably an analyst and I know, but

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<v Speaker 1>I have to say, you're overwhelmed. And I have felt

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<v Speaker 1>the same way, Like I'm curious, but I feel like

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<v Speaker 1>what are the standards and there's just an array of

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<v Speaker 1>products and I don't I don't have a brand connection

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<v Speaker 1>yet with any Yeah, you need someone and something to

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<v Speaker 1>trust and believe in. If you're just to your point,

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<v Speaker 1>kind of candy curious, which you know, we're. The cool

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<v Speaker 1>thing about the industry is it is literally like one

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<v Speaker 1>of the true nonpermose issues. Right over six percent of

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<v Speaker 1>Americans are pro federal regulation, and it's definitely an interesting frontier.

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<v Speaker 1>So you're gonna have to come back. Wait, Thanks for

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<v Speaker 1>having Sims is the CEO of Burn Group. Here in

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<v Speaker 1>our Bloomberg Interactive broker's studios, spending your time between New

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<v Speaker 1>York and Toronto, watch this space for sure. Noted