Discover your next big idea at PACK EXPO Las Vegas this September
Experience a breakthrough in packaging & processing and transform your business with solutions from 2,300 suppliers spanning all industries.
REGISTER NOW & SAVE

Catch 22s and Opportunity in Cannabis Packaging

An established brand owner says, ‘…if you're a small brand trying to get started, especially with bootstrap money like ours,’ minimum order quantities represent a hurdle.

Chris Coggan, CEO and lead designer of Therapy Tonics.
Chris Coggan, CEO and lead designer of Therapy Tonics.

Navigating the packaging landscape can be a challenge for cannabis brands when scaling up. Even celebrities hit stumbling blocks—recently, Whoopi & Maya, Whoopi Goldberg’s cannabis company closed.

While the company had multiple issues, packaging in an emerging industry was cited. “Suddenly we’re jumping through hoops like every other company in California,” Board Member Rick Cusick said to CNN Business. “We were well on the way to [being cash-flow positive] but then we had to jump through hoops to change our packaging … and then change our packaging again.”

In a recent panel at the CannaPack Summit co-located with WestPack in Anaheim, a brand owner shared some lessons learned.

MOQs

Big minimum order quantities (MOQs) that packaging/print suppliers require represent a hurdle, particularly for smaller companies who need to access packaging at affordable rates. “One of the really big problems overarching the cannabis industry is scale,” said Chris Coggan, CEO and lead designer of Therapy Tonics. Coggan is well-versed in packaging with 30 years of design experience, and holds a board position with the California Cannabis Industry Association (CCIA) heading their manufacturing committee.

Though California represents a huge portion of the global cannabis industry, companies are limited to the state, so they don’t have large packaging orders that will go country-wide or international. (Noted in our coverage from the CA Cannabis Business Conference.)

“We manufacture beverages. In our case beverages worked only because we were able to use equipment from the craft beer industry, but a lot of the other elements in manufacturing [are quite costly]—steam tunnels are $80,000. If you want a filling machine that's all unmanned, or a nitro head, you're spending hundreds of thousands of dollars,” he noted.

This is where semi-automated or small benchtop machines can bridge the gap, but there’s often sticker shock when companies try to scale. Producers go from doing everything manually, “or with hand cappers, and then you have to spend a few hundred thousand dollars to get to the next level, which can produce 50,000 units every two hours, but really you're doing a batch of 3,000 units, and you need it done in one day. So there's a lot of problems with scale in building cannabis,” he explained.

Coggan said they pay a premium for packaging. “It's actually a catch 22, because in the cannabis industry, if you really want it to stand out on the shelf, you have to invest in packaging. The problem is if you're a small brand trying to get started, especially with bootstrap money like ours, you can't afford to make those custom solutions because of the minimum order quantity. So you have to depend on the same old standards that everybody else is using, and it's really hard to grow a brand that way, because ultimately the first thing these consumers see, as it relates to your product, is that packaging, and if you can't stand out, you're screwed.”

Therapy Tonics has worked with their printer to reduce their MOQs to a number that’s more sustainable, and while they still pay a premium, he said it’s “a lot less than we would've been paying a few years ago, because they understand where we're at, and they understand where the industry is at right now too.”

Drop shipping and mail

Annual Outlook Report: Workforce
Hiring remains a major challenge in packaging, with 78% struggling to fill unskilled roles and 84% lacking experienced workers. As automation grows, companies must rethink hiring and training. Download the full report for key insights.
Download Now
Annual Outlook Report: Workforce
Annual Outlook Report: Sustainability
The road ahead for CPGs in 2025 and beyond—<i>Packaging World</i> editors review key findings from a survey of 88 brand owners, CPG, and FMCG readers.
Download Now
Annual Outlook Report: Sustainability