Cracking the Ancillary Code

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Ancillary Services to Enhance Your Extraction Business

In 1976, Steve Jobs and Steve Wozniak launched Apple with a singular goal: create user-friendly computers that were small enough for the home or office. Their original operating system, Apple DOS, was the precursor to something much bigger than anyone could have imagined. The industry evolved, and so did the company's offering. Apple branched out beyond its flagship product, the desktop computer, producing a handful of firsts - iPhone, iPad, iPod, MacBook, Apple Watch...you get the picture. Over the years, the company has undoubtedly led in the tech innovation space. More importantly, however, the storied success of Apple shines a light on what can be done, by design, to improve the experience and use of its products. Today, successful companies in nearly every industry, including cannabis, have taken that very same approach of leveraging ancillary to get to the top and stay there.

Ancillary Enhances Extraction  

Ancillary, while specific from one vertical to the next, proves similar in purpose no matter the context. Take, for example, a world in which your favourite restaurant outsources a critical part of the cooking process. Instead of making your entire meal in-house, they're only taking responsibility for the plating. Your steak gets seared in kitchen A, the spices are ground in kitchen B, kitchen C chops the vegetables, and kitchen D bakes them. The final dish comes together in the end. Still, because the process had steps that fell out of the restaurant's control, there's no guarantee for the customer in areas quality, safety, efficiency or taste, and in turn the success and longevity of the business.

Extraction is just one part of the "cooking" process. It turns raw material into a high-quality product that can be used for edible, topical, and consumable goods. And while extraction systems play a critical role in the outcome of the final product, so do the pre- and post- services within ancillary. How your cannabis flower is ground or milled, for example, determines the efficiency of extraction and the amount of product you yield from each run. Winterization, solvent recovery, decarboxylation, and distillation are all ancillary services that allow you to determine what you create from your crude oil and the quality of the end product that's turned into consumable goods.

Similar to Apple's approach to controlling its product, is how cannabis companies have built their pre-and post-extraction needs into their overarching business model. Unfortunately, there is no plug and play option, which means choosing the right ancillary services and equipment starts with asking the right questions. What do you want to make? How much? How well is your lab set up to accommodate your equipment? And quite possibly, the most important one of them all - how are you building your business today to meet consumer needs and regulation in the future? Bridging extraction with tailored ancillary services and tools could be the secret ingredient to that growth.

Keeping up with Cannabis

There's no doubt the cannabis industry is booming. Global changes in legalisation have suddenly created opportunities for new markets, new products, and in turn, a lot more cannabis oil. It's especially true in Canada, with the recently amended cannabis laws under Legalisation 2.0, which extends beyond the initial recreational cannabis list to include edibles, topicals and concentrates. The shift in legislation expects to see the Canadian cannabis industry grow by 50%, roughly $3.7 billion by the end of 2020.

While these new products bring with them an increased demand for both raw materials and extraction, they also introduce a new phase of compliance. Keeping up with trends and product demand will require equipment that produces the highest grade of oils, cannabidiol (CBD), and tetrahydrocannabinol (THC) extracts, while also meeting strict standards in areas of safety, quality and branding.

Vitalis Ancillary 

The Vitalis ancillary team helps companies bridge their extraction needs with equipment and services to increase opportunities in the cannabis, health and beauty, and food and beverage industries. This includes consultation on lab layout and equipment to vendor relations and providing support in sourcing the supply of consumables. No two companies are alike, which is why we focus on your business and provide the ancillary solutions that will position you for your next phase of growth.

Looking for more on how to achieve pre- and post-extraction success? Watch the replay of the Vitalis' Ancillary 101' webinar or contact one of our Ancillary experts today.

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