Welcome to our live show!

Hey everybody, welcome to another episode of the Drink Up Podcast. Uh, today we've got myself as well as Sam Anderson, and today's guest is Faye Coleman, the CEO and co-founder of Pure Genesis. Welcome, Faye.

Thank you so much, great to be here.

Of course, we're very excited to have you. Um, before we get into it, uh, I gotta come up with— I gotta write down a list so I do these in the same order every time. Sponsors we're gonna give shoutouts to are Sam and Alicia with Bev Assets and Frontline. Jay Williams, as always, who popped in on our last episode, which was really cool, with Freebird, who's now in NASCAR and Walmart and everywhere. Jay has so many things going on. We've got Ryan Halliman and the team over at On the Rocks Advisors that I work with. Ryan and I have a ton of stuff in the hopper right now. And then myself, uh, Alias Advising. So with that, we are through our sponsors. And, uh, Faye, welcome. Tell us a little bit— I know you did a little bit with me already, so I apologize for making you do it twice— but just about kind of yourself in general, how you came to Pure Genesis. Give us the backstory.

Uh, absolutely. Uh, well, again, thank you so much for having me. Uh, I am— I will start with I'm a Pittsburgh native, so since football season is starting, I feel like, you know, I need to make an announcement for, you know, all those who are Steeler fans that you've got a Steeler fan right here. But yes, from Pittsburgh originally. I started my career in engineering in the food industry.

Okay.

Kraft General Foods. Campbell's Soup brought me to New Jersey in senior-level positions in engineering, and then I switched gears, went into operations with The Home Depot, Target, and CVS before jumping into cannabis full-time. You know, as I was giving thought to it, I had to sit my children down who were at the time in college and share that their mom was going into the cannabis industry. And they were like, okay, so why and why now? So the why behind that, Adam, is You know, when I was younger, my mother had breast cancer and I saw her lose 70 pounds on a 5-foot frame. I saw her skin turn coal black, her mental acuity greatly diminished. And had she been able to maintain her appetite during chemo and radiation with cannabis, she would've had a healthier recovery. She did make it through that, but the last 17 weeks of her life she spent in surgical ICU. And the week after she passed, I was diagnosed with breast cancer.

Oh my gosh.

And then, well, and so the first thing that came to my mind was cannabis as an alternative medicine, believe it or not. Um, but it was a number of years before I actually, uh, decided to step into the industry. So I was home one day, I was, um, doing some writing and I had decided to go to a conference in Colorado, a woman grow conference, to see if this was something I could do and thrive in because I had been very successful in corporate America and done it and done at the next level and was like, okay, what's next? And so I thought now is the time for me to do something for me. So I went out and I thought either I'm going to figure out this is a bunch of folks that are stoners just getting high and I need to get my behind back to to New Jersey and forget all about any thoughts of cannabis, or this is going to be a great opportunity. I found out it was an industry that I could absolutely thrive in. I came back, I grabbed my bestie, we started the business, and we have not looked back.

That's fantastic. Who is your bestie?

Uh, uh, Priscilla Nguyen. Uh, she's the co-founder and she's our CIO. Uh, and so that's how we got started. And then my other bestie, uh, in, in corporate space is Valerie Dollison. She's our COO, uh, and, uh, it's just been an amazing trajectory. Uh, today we have— we started with trying to win a license. That's how we got started in this, looking to win a license.

Like a cannabis license? Yes, because it's like, uh, like a selling license or a farming license. There's different type of licenses, I believe, right?

There are several, and this was what we call a Full vertical license or an opportunity to cultivate, process, and dispense or sell cannabis. And so we were applying to actually win. That's actually during the time, guys, when you had to win something. Today you apply and there's all— everything is a rolling process. And, you know, if you meet the requirements, you're awarded a license. But back then you had to apply and actually win it. So that's how we started the business. And that's also how we got indoctrinated in terms of we were in shark-infested waters. We figured out, like, you know, where we were. We ended up returning a $10 million check because we had an investor who was somewhat nefarious. And as a result, we had to step back and we were not even able to apply Yeah, you're—

I remember you telling me that, and you're not in all verticals of this, right? So you're not— you're on the growing side, seeding side, farming side. I'm getting it all wrong, but what side of the business are you on?

So great question. I'll go through our, our, our business portfolio. So on the cannabis side, we have applied and received a dispensary license in New Jersey. We're on a joint venture license in New York to actually grow, process, and dispense cannabis as a medical license. We have one of 8 of those licenses in New York. And then in Florida, we are part of a joint venture as well for a cultivation, processing, dispensary license as well. And so in New Jersey, we are looking to get dispensary operations up. And in New York, we're looking to start with a dispensary operation, uh, primarily in Harlem.

Gotcha.

So we're focused on that on the cannabis side. On the hemp side, uh, we've now grown hemp in several states. So we've cultivated hemp in New Jersey and Pennsylvania, uh, South Carolina. We have a small farm in Senegal. Uh, and we're also doing an international project involving critical materials. And we're looking to work with various countries in Africa to move that forward using industrial—

We talked about building materials, right? So I'm thinking when you think Africa, you're going to be building some things there with the product, correct? Correct? Am I wrong or not?

So you can. However, for this project, we are looking to have the opportunity to bring critical materials stateside is important. Right now we import 100% of all critical materials, right? Most of them come from China, some of them from Canada, France, Mozambique. We're looking to compete with China. And in order to do that, we have to go where labor and land, uh, is competitive. And certainly Africa provides that opportunity. So we're in partnership, uh, with various, uh, kings and countries. To bring forward those critical materials where they be grown and—

Did you say kings? Did you just say kings?

Yes.

There's kings of countries?

There's kings within countries, right? So yes, there are various kings within countries. And so we're looking to partner with them as they are the owners of the majority of the land within those countries. So we're looking to partner with them.

When you say I'm so sorry to interrupt. When you say critical materials, for the uninitiated among us, what does that mean?

Certainly, and great question. Thank you. So we're looking to focus in on critical materials as we talk about hard carbon, right? So, and why would we be even interested in hard carbon? As we know, if we're— if anybody has any thoughts around technology, Hard carbon is the future, right? Right now, there's a lot of production using graphite, which we all know is very costly and very waste-generating. With industrial hemp, you can provide and manufacture hard carbon material that can be further utilized. Think EV, think sodium lithium-ion batteries, think supercapacitors. This is what critical materials we're looking to bring to the market because the demand is so high, right? Right now there's about 10% hard carbon. And with, I think, a CAGR of about 22% a year, year over year in terms of the growth of the hard carbon market, while graphite continues to decline, hard carbon is picking up.

Sam's having a hell of a time. So thank you for indulging me with the explanation. So you're— I guess what's the—

So yes.

This is the supply chain guy in me coming through. Like, what does that tail, that timeline, I guess, look like of like you're having these conversations with kings and countries where these critical materials come from. Until when, like, at what point do you reach, okay, now, now we have what we need, or now we have a consistent supply chain, or we have a good flow and we can then do the thing?

Absolutely. Yep. So right now we are looking to, uh, put in place something that takes us from pilot to commercialization, uh, within the next 24 months. And right now we are talking with, um, those, uh, tech leaders that have the— and I'm trying to prevent— I'm stopping myself because I can't really share what the technology is.

Sure.

So I'm saying those tech leaders that can bring that process to life within the US so that we can have some green leadership stateside and bring those demand partners that are stateside for that hard carbon that they are requiring for their for their critical materials. So that, that is the process.

Okay. Also, again, for as much share, right, is there also an infrastructure that has to be built here to work kind of hard carbon and some of those other materials, or is that already in existence?

So the entire supply chain is being built from the ground up. So as the cultivation and harvesting would be happening in Africa, over here we would be doing the processing through the equipment that we are leveraging, the proprietary equipment that we'd be leveraging over here to generate the materials that can be further produced for hard carbon application. So that would happen here. And then we bring those demand partners to the table. Of course, for stateside, and then of course we would be looking to be an export partner to those who would be looking for those materials also internationally.

So I have another question, but before I ramble right into it, Sam, you got us? Are you back?

I am back. That's what happens when you go live, raw, and real on this show. My computer on the right crashed. I have no idea why.

Oh no.

And you guys are still rolling. So the good news is it's still working. I apologize deeply, but that's the, that's the beauty of this. And by the way, that happens in business, right? You just got to pivot as you go.

All the time.

When you had $10 million sitting on the table and you had to walk away from that $10 million, you had to figure it out, right? And it's— yes, I remember you sharing that story with me a couple weeks ago, so Anyway, keep on going. I'll, I'll engage here and we'll figure out where we sit.

Absolutely.

My— lest I interrupt you, Faye, was there something else you wanted to add?

No, no, I, I think you may have another question. I just wanted to pause for a second.

Oh, I do. Uh, so, okay, so you've got all this working on— I'll call it the, um, the industrial manufacturing side of the business, right? And then you also have the, the kind of more direct-to-consumer, whether that's, you know, retail or online, whatever. You have the CPG side, right?

And we do have the CPG side, and that's our Genesis Beverage. Um, and just to give you a little idea, a little window into, you know, why Genesis, you know, And as I shared a little earlier, wanted to make certain that there was clarity around the value, the benefits of cannabis. And many, and still today, have a fear of cannabis for one reason or another. But a lot of it is around consumption, right? Whether they have smoking, There's many that don't like to smoke. They don't want to tincture it. They don't want to vape it. But you can control consumption through beverage. And so we started Genesis with a belief that feels obvious once you say it out loud. But, you know, many people are getting that, that, that thought process in motion because Feeling good is a right. It's really not a privilege. And as a minority women-owned business, you know, we built Genesis to prove that as a company, you can pour into your community and still thrive, that access, advocacy, and ownership belong in the same sentence. You know, the culture that made this industry possible deserves a seat at the table. You know, when we launched this last year in partnership with one Goldberg, you know, we decided, you know, we were going to put this into a can, and we did. And so Genesis was born. Uh, today we have 2 flavors on the market. We'll have 4 flavors by the end of the year. Uh, we have an amazing pineapple coconut champagne, uh, lightly carbonated, uh, that's 10 milligrams. Uh, we have a—

Did I hear you partner with Whoopi Goldberg? Did I just hear Yes.

Last year, uh, yeah, I, I guess I glacially mentioned that, but, uh, last year, um, we were looking to move down the road, um, with our cannabis dispensary operations. And Whoopi was very interested in partnering with someone in the brick-and-mortar side. She found out that we were developing a beverage And she said, hey, I'm interested. And so, you know, we started down that path and our oolong tea lemon flavor we actually created in her kitchen. And so it has been wildly successful. And our pineapple coconut champagne right behind that is uber successful. People say it smells and tastes like summer. And then we have 2 other flavors coming the balance of the year. And we have also 3 formats, like a shorty, a 2-ounce, 2-ouncer that'll be available in Q3 as well as a 750-milliliter. So we're pretty excited about it.

What's your route to market? How do you go to market?

Sure.

We've got 5 channels that we are focused in on in terms of going to market right now in terms of DTC, we're in 13 states. Uh, in terms of retail stores, uh, we're in 5 states currently. And then dispensaries, we're going pretty deep within, uh, our region right now, uh, in 3 states within our region.

How do you get delivered?

Uh, we deliver straight from our manufacturer.

So you're direct to retail, uh, direct to DTC. You don't use a distribution channel at all?

At this point, no. But it's interesting you say that, right? Because we don't know how— with Section 781 and decisions forward, we may be going that path, right? There's quite a few paths to take here as we're focusing in on what's going to happen. You know, Section 781, in my opinion, is—

I agree.

It's a political football, to say the least, but not to be taken lightly. As you know, if it goes into effect, it basically kills the industry, right? So it's really about figuring out the opportunities forward, what that's going to look like.

So they delayed it to December for a vote. Is that what it looks like in terms of how How they're going to address the category?

Yes. So the delay has happened. Well, I would say the delay is on the horizon. Yet I think we still have to get the House approval and the presidential signature required. So— but I'll say right now, Looks like December 11th for a decision point. Yes.

Yeah, it's interesting because I think the category is going to behave a lot like the liquor industry, which obviously, you know, I'm in. It'll be interesting from a taxation standpoint. And then, you know, a lot of cannabis brands obviously go through distribution, especially the beer network relies heavily on many of those brands. How does it, from a, from a traditional— I'm gonna get this all wrong, but I'm just gonna try to say it— the THC side of the business that people are going through, you know, is there like a little bit of battle between the hemp and the THC side? I mean, I know that hemp-derived become THC and everything else, but the people that go through dispensaries, do dispensaries actually like the fact that these hemp beverages can be available in traditional retail? Is there a little bit of a battle going on there? Obviously, I don't know. I mean, what's your view on that?

There's an absolute battle going on with that. And so the question becomes, how does everybody— how's everyone able to play in the sandbox, right? Because of course the cannabis industry feels as though hemp-derived THC beverages, if able to be sold, sold outside of dispensaries will pull away from their business, right? And so if you have a dispensary and you're selling cannabis-specific THC beverages, not hemp-derived THC beverages, you feel as though you, you're splitting your customer base, right? So that opportunity does exist. Yes, it's contentious.

So what's your plan? So you— are you just wait and see? Are you talking to different potential partners to actually get you to market? What are you planning?

No, great questions. We have some soft contracts in place with manufacturers by state if Section 781 takes effect. We don't believe it will, but we're putting those plans in motion. We're also reducing our inventory levels, assuring retailers that we will keep product on the shelf regardless of how we move forward. But those inventory levels have dropped. Even our co-packer has said that they've had a significant decrease in volume this year with, of course, you know, Section 781. But they're starting to see some increase in that volume as of late. So there could be some tea leaves with regards to that. But you really have 4 channels in terms of how states are moving. And I would probably say those alcohol channel states, which are those 3-tier that you're talking about, right? And so are we going to go in that direction? Then you've got the cannabis channel states like New Jersey, where they want to bring all hemp THC into dispensaries. Then you've got prohibition states like Ohio, um, where they're repealing, uh, as we speak. And then you have those, uh, federal default states, um, like the Carolinas and Florida, where they've got no potency rules. They've got the biggest challenge because they've got the steepest, uh, uh, cliff, because if that goes through, then, you know—

You just described the liquor industry, by the way, state by state. Every municipality is different. How, I mean, you know, it's, it, they make it so hard to bring a brand to market when brands come talk to us. So like, I've never seen anything like this in the US, the 3-tier distribution system, how you have to apply to states. They're just gonna do the exact same thing for this category and they've overcomplicated it. That's my opinion. You know, obviously I believe that you have to regulate. I believe in regulation for sure. sure what actually goes in that can or whatever you, you're choosing as the gummy can or whatever. You should know what you're going to get, but that's with any category of business, right?

I think you're right. You know, right now I think what is top of mind to be given thought to is I think we're now past percentage, you know, dry on a dry weight basis conversation.

Right.

And it's more about milligram-based dosing, right? So that's, that's where we're headed. Is it 5? Is it 10? What do those numbers look like? And every state is starting to drill down into that. Of course, it's over 21. COA certificates of analysis are required from third parties to make certain you have safe product. And, you know, of course there's packaging and tamper evidency around child— around children.

The certificate of analysis, is that like you have to— with the stuff that goes on the can, or you have to have that like a QR code or something you have to scan and be able to see that on the can?

Yes.

A little bit how that works.

Absolutely. So, you know, when you're— when your product is manufactured, you send it out for testing. Quality testing, and you are provided with a certificate of analysis that talks through every everything from potency to what type of chemicals are in there that may be from a fertilization preservative dot dot dot and the like. That said, what happens is that is your Those are your quality or compliance specifications and analysis around your product for that lot or batch run that you had. What we do in the hemp-derived THC space in terms of those that have beverages is we place a QR code on our can, every can, so that any any consumer can scan that and they can understand what the potency is. And if it's at 10 milligrams, then you should have 10 milligrams as a part of your certificate of analysis. If you have something different, then that is a major question where that, that could be a challenge for you in terms of your ability to produce that product, or there could be some legal ramifications around that. But certainly that certificate of analysis comes with the QR code on the can. Everyone should be able to have it. That gives you the safety safeguards in terms that you've got a safe product that's in your hands.

It's amazing. I have a client that we're trying to move some inventory, right? We're like, what's the easiest place to go. And what I gathered is Wisconsin for labeling might be the easiest place. You can tell me, but trying to research like the different states you can take and maybe close out some inventory, because there are a lot of people trying to close out some inventory as well in anticipation of what's, um, you know, potentially coming. I think they're going to solve it, quite frankly, but given everything going on— and I'm not trying to go political here on this Yeah. With everything going on in our country, I'm not so sure that people want to attack it. But if I was a congressman or senator and I was going to try to get a vote, I would vote for this because there's millions and millions of people that are going to be put out of work. There's millions of people that want this for what you described with you and your mama and what she went through. And if you had that opportunity I think they need to solve for this.

I think you're right. I think up and down the supply chain, you're 100% correct. You know, you have to think about the farmers, right? First and foremost, they're at the tip of the spear on the supply chain. And why would we want to do any more disservice to our farmers, right? In an industry that's got at minimum 25% CAGR, you know, growth year over year. So why would we want to do anything as a disservice to our farmers? And then you got to think about, of course, our manufacturers. You know, our country was built on, on strong manufacturing. And so you've got to look at that aspect in terms of do we want to now pull back from manufacturing as well? And then looking at our retailers. And so—

I mean, you're describing economics here, right?

101, right? This is 101. So why would we kill something that is not just good, but good for you?

And good for our country, our GDP.

Yes, yes, yes. And so I'm not seeing the argument for why not, you know, why would we want to do such a thing. And that's why I say it's a little bit of a political football. I think it'll get resolved because it's also, you know, about a $1.5 billion industry today and looking to be $5 billion by 2035. You know, we're a capitalistic society. We know numbers. We understand economics quite clearly. And so I think there is significant opportunity here.

Well, in this category, in this category you're describing, if you think about the, um, AI, right, and robotics and everything that's coming, and you're putting people out of work, right? This, you actually need human beings to go create this and go sell this and implement it. I think this is a great opportunity as people transition from one sector And to another sector. This is a sector that people can thrive in and human beings can work in. You think about that because things are going to evolve, right? When you think about where the TV went to the computer, the typewriter to the computer, the calculator to the computer, the phone to the, you know, the little handheld thing we have now. I think people need to— people don't have jobs, people can't go spend money and buy other goods and services. They can't go buy those great robotics and all that. Maybe I'm off-kilter here, but I think this industry, one thing it's not going to— I don't think robotics are going to replace us.

No, I don't think robotics are going to replace us.

I might have had a can of THC when I went down that path, but hey, why not?

There you go. You know, it's interesting that you say that though, because As people look to people like, what's the big deal, you know, in terms of the industry in and of itself? Why is it so important? You know, again, folks don't realize the benefits of cannabis. And even for something with a small milligram dosage, like a hemp-derived THC beverage with 10 milligrams, you know, people talk about, well, what's the, what's the big deal in terms of cannabis? The main reason that people actually consume Yes. The reason people consume cannabis, especially on the medicinal side, is for pain, sleep, and anxiety. Something the majority of us, right, have challenges with. One of those 3 or all of those 3, right? So if you have something that clearly you can consume in a nonthreatening way that is safe, why would you want to take that away from your citizens? So, you know, there's an amazing benefit with a plant that is thousands of years old. And so the value is endless. And right now we know that jumping over the 0.3 milligram fence, we know that President, you know, Trump just took You know, cannabis from Schedule 1 to Schedule 3, right? So now that really lets in the medical community to really discern the true value of cannabis. And so we're at, we're just at the beginning of what the opportunity for this plant really is. We're just looking at the vehicle, be it a beverage in terms of of being able to bring those benefits to our citizens.

That's amazing. You worked for Target.

I did.

So what's— so it seems like they've gotten behind this category. Have you spoken with them about this opportunity?

I have not. I have not. But I do know, you know, Target is very good at understanding the value of products and brands and feel very confident that what they're bringing in makes sense. They normally don't misstep in that manner. So it's one of those guidances in terms of those earmarkers, those tea leaves, as how the industry is moving, because you also have, you know, Sprouts. That has Total Wine, who's of course moved through this space.

I saw David Trone at WSWA this past February, March in Las Vegas, and he was on the stage with Charlie Marinoff, who owns obviously Breakthrough Beverage Group, and they were talking about the importance of the category. So I'd hope that, you know, the Trones are obviously political as well, that they're entrenched into this, um, this category. I think it's essential that it does go forward. I do believe it needs to be regulated. I'll go on record to say that, um, because I don't know of everybody that creates something actually— is that really in the can? I don't know. So—

I would agree with you. I love the pun too, uh, but I would agree with you. I think regulation is what the industry is looking for. No one wants regulation to go away. Everyone wants to see the industry regulated. We want to make certain though it's appropriate and that you don't just push regulation for the sake of pushing regulation that actually kills the industry at the same time. That's why I say it goes back to the numbers, right? And you're looking at those 5 milligrams versus 10 milligrams. What does that look like per serving? Are we going to move forward and do our 2-ounce shorties as well as our 750-milliliter bottle. Can we do that safely and regulate it accordingly? Absolutely we can. We just have to sit down and figure out what that looks like and have everyone come together and have some agreement. While everybody doesn't win, we certainly can put something together that that makes sense for everyone. And there are bills out there that do that.

What's next for you?

What's next? Well, right now we are looking to expand our beverage within various states. So that is— people might say, wow, you're still you know, putting your foot on the gas given what's going on. We are, because we are very confident that regulation will come. Delay may come as well, but we believe regulation will come and we'll understand how we can move forward with that. So we can— we intend to continue to grow within this market. We absolutely intend to get our industrial hemp international project off the ground. within the next 24 months. So we're super excited about that. We, as I said, we do have cannabis, but we also have non-cannabis business as we are building a 65-unit mixed-use development property in Atlantic City that we're absolutely excited about. And, you know, not for anything, we started our company actually educating. We have a workshop called Now You Know where we educate at-risk youth. Ages 13 to 22 on the history of the plant, the plant itself, the medicinal aspects, and the business of cannabis. So that's been, um, that was our—

You can make anything with it, right? You can eat it, you can put it in concrete, it's stronger than concrete, you can make clothes with it. I mean, it's— talk about the— I mean, it has a great impact on Mother Earth, right, from a carbon footprint standpoint.

A huge impact, and you're absolutely correct. And now the— in the U.S., we can use industrial hemp to do, of course, hempcrete, which has been talked about consistently, and we can use it for foundations as we're looking to build homes. Hasn't been approved just quite yet on the commercial side, but Yes, it has been approved for residential and then also utilizing hemp seeds for animal feed. So, you know, there's significant opportunity for hemp as hemp is— I call the industrial hemp is the trillion-dollar crop. The cannabis on the cannabis side. It does well, but industrial hemp really is the marker for economic success, and that's where you're going to see over 50,000 uses. BMW, I think, still uses it for the manufacture of the side panels of their vehicles. So there's so much significant use that industrial hemp is just coming up. Both nationally and internationally in terms of uses as those businesses begin to discover its value.

That's amazing. So this is an entrepreneur's dream.

It is an entrepreneur's dream, but it also is an emerging market. You guys understand, an emerging market that certainly has a cloudy past, that certainly has an even cloudier future. There is trepidation as people move forward, but there are some folks that are burrowing right through. You know, I'm on the board of the National HIP Association, so we get a chance to see, you know, what some of those opportunities are that are forthcoming. That's why the critical materials piece was so important to myself, because now you get a chance to have underutilized land in Africa as well as in the US, uh, be utilized in this manner. So it's quite, uh, amazing, uh, what opportunities, uh, hemp/cannabis can provide.

I gotta go back real quick to, uh, to one thing you said, and I'm just curious. I'm gonna, I'm gonna take a shot at what I think you mean, but I would love to Okay. You said on the CPG, on the PG Fire, you've— I'm paraphrasing, but you've engaged in some soft contracts with your manufacturers, right?

Yes.

Yes. So my question is, you know, because I talked to— and we don't know each other super well yet, but a lot of the folks that I talked to, regardless of their product type, are very early stage. Right. They're, you know, yes, they've never done this before, or maybe they, you know, have a, they have a bar or they have a different business and they want to enter the hemp or the THC or the cannabis space. Um, and so when you say soft contracts, my assumption is that you mean you have spoken to your co-packers, you have given them confidence that, you know, if you go, it will be paid for, you know, prepaid or terms Whatever. Um, but that also if a person, you know, federal laws dictate not proceed forward, that they're not on the hook for, uh, you know, untenable— Is, but I would be curious for as much as I care when you say soft contract, just for the, the new brand owners in the industry lingo as well listening, what do you mean when you say that?

Absolutely. It's a great question. And soft contracts for us are more verbal commitments. So as we are looking to discern, like, how we're moving forward, if in fact it's an if-then-else statement, right? If this happens, then we will pick up and start doing volume through your manufacturing operation as of these dates, given this decision. If that decision doesn't exist, of course we won't start up that relationship. But we're already contracting, already having those verbal agreements so that they can understand how we will shift in terms of where our volume will go to, right? Because the industry won't die, it'll just shift in terms of where it will go next. So for instance, New Jersey, I'm sitting in New Jersey, they have decided decided that, uh, as of November, um, that anything over 0.3%, uh, will be considered cannabis and will need to go into a dispensary, period. Uh, and so we're having those soft conversations now.

So regardless what the federal does in New Jersey, you have to go to a dispensary.

That's correct. That's correct. So, uh, unless You know, guys, unless something changes. So, you know, things have changed all year. And so right now—

Sure.

But then we then put the options in place in terms of what dominoes will fall will dictate the direction that we go in for future manufacturing, right? Because that's what it's going to boil down to. And it's going to come down to state to state in terms of how they are maneuvering with these decisions. And so will states' rights trump or not? And how do they move forward in accordance? And in some cases, municipality rights. Chicago has something on the books now.

I'm in the liquor industry right now.

It's funny. Right. So it is. And so everybody says, well, then just do we go to the 3-tier system and let it be? And then, you know, put the milligrams out there in terms of what it is and let's, let's move forward and do business. So there's a lot of conversation and I would say lack of agreement at this time, but I think we're beginning to align. And throwing out the window percentages and starting to get into the milligram conversation, which to me means, uh, it hearkens to regulation is coming. Uh, it's just a matter of how.

Right. So right now, the way the changeover is going to be is 0.4 milligrams. If anything over that will be illegal.

Yes. So 0.4 milligrams just means that we kill the industry.

Yeah.

The industry doesn't survive at 0.4 milligrams. So it's basically, you just said you might as well just have a non-infused beverage, which is called juice. We have that category, all right? We can— we have that category. It's defined. There's not much regulation around in terms of potency. But we know what that is.

And actually, I want to ask this question just on, on this, the, the guise of what we just talked about. Functional beverage is what people move to. I know a lot of brands are trying to reposition, like what things can I put in there that aren't regulated that have the same effect? Are you looking at that as an opportunity? Are you staying focused on what you are? In other words, there's, there's, there's things, and Adam, this is like your world, But there are things that you can put into that can that could have some effect on your sleep, your anxiety, you know, going out with friends that aren't regulated by the government. Now, I don't— and I'm not— I don't want to go down the FDA route or whatever to get— but there are things that can have the same benefits. Have you looked at that as an opportunity?

There's certainly—

there's quite a few things that quite a few things that we could just go over to CBD, you know, in terms of, you know, having some similar effects, right? Because CBD certainly has some similar effects as well. Um, but, uh, for us, we have— we are— that's not our path. Uh, and so we are continuing to march forward. Uh, given the hemp-derived THC, we feel like that is our direction that we would like to move on. If you look at— if we just want to look at this as a business and look at the market and look how things are moving, we know that— just take for instance the 25 to 40-year-olds, right? They tend to be the ones who are the culture curators, right? They're the tastemakers. They kind of decide how things—

Adam is a tastemaker, man.

That's the tastemaker. But they, they decide how things are moving. They really do. And what's happening right now, 69% of them are saying that they will— they're looking for alternatives to alcohol. And 65% are saying they're going to drink less. And so as you're looking at that, What direction are they looking to go into? To your point, there's a myriad of directions that they can go in, but certainly hemp-derived THC is something that is beginning to resonate with them as an opportunity to have a great experience and have something that is good and good for you. Something that elevates you, creates a great vibe, makes certain that you have an amazing moment. Um, but that's a direction that is currently being, um, looked at. But at the same time, I think there are many things that are going to come to the market as a result of this. Many, uh, people talk about, you know, shrooms. They talk about a number of different, uh, vehicles, uh, for consumption, uh, to provide experience. And so this is certainly one of them, and this is our path.

No, I love it. I mean, I think there's an onslaught of products, industries, things that people are going to take advantage of. You know, I mean, you think about— I always talk about Mother Earth, and I believe that we can help manage our carbon footprint, help manage our health, You know, put people to work. I mean, there's so many good things about what you do and what you're bringing in, the things that you're involved in. I mean, you're not just involved in one, one channel, one vertical, one way to, to do this product, which is amazing to me, uh, Faye, and what you're, you're doing.

I appreciate you mentioning the channel piece because, yeah, we started out doing direct-to-consumer. That probably will be most at risk as we look at how this moves forward. But definitely direct-to-consumer so that people can actually purchase it and bring it into their homes as they need to. But the retail piece is very real, as Total Wine and Target can tell you. The dispensaries are very real. But then you have also various events where, you know, we bring the product on site to have a great as well as you're looking at amplifications out in the market, you know, where people are influencers that are supporting this beverage. So there's just a number of different vehicles in terms of how we're conveying the message around the value and providing the opportunity for consumption. So it's not going away, hopefully. But I think there's enough tailwinds in terms of interest and those who are already invested that will put us in good shape as we get toward December 11th.

Amazing. So, Adam, you want to ask the most important question of the day?

I would love to. Faye, what is the difference between success and failure?

You never stop. That's the difference.

What keeps you going?

What keeps me going? I would say I always go back, this statement stays with me all the time, and that I always say, you should be afraid of failure, but you should be terrified of regrets. That keeps me going.

That's amazing you say that.

That's a new one. I don't think anyone's ever said that on the show.

Yeah. So, so I think about myself. I'm 61, so I didn't hit that category of the 25 to 40-year-old taste I don't hit it either. Adam does. But you know the regret, right? You know, we all go through— we get the job, we put our head down, we, we work really hard, and we are heading towards some type of destination. We build our maps, however we build our maps or our missions in order to get there, right? But my biggest regret is I didn't try earlier. I never had the courage to, you know, get on the high dive and jump off the deep end and, uh, and go for it. So that's really amazing you said that because— and it's not too late, right?

It's not too late. It's never too late. It's— I mean, and, and you might be considered, you know, young just in terms of those who are stepping off to off the high dive, right? Because there are folks in their 70s and 80s who are now starting to look at their lives quite differently in terms of, you know, what's next, and really gaining the confidence and the clarity as an opportunity to do just that. So you're right, you're never too young. But certainly I think what happens is today with those that are in Adam's demographic, they are looking at life quite differently. And Adam, you can speak to this. Folks are looking at life quite differently. They are not subscribing to how our parents raised us in terms of you're going to go to college, you're going to go into corporate America, you're going to do A, B, C, and D, right? Although I had my children come up the same way, college-educated, moved into, you know, corporate America, but they certainly see life quite differently just in terms of how they approach it, how they see it moving, how they see themselves moving within it. And I'm excited for that because they're more free-thinking than I ever was. My scope and frame were so narrow. And I think I had such a high degree of fear of failure as an engineer coming out into the world that I did not give consideration to doing something on my own until also much later in life. So I applaud my children. And of course, I like to be an example for them. as I go through life that they can see what I'm doing and of course see that that opportunity exists for them. So you're, you know, you're 100% right. And you gotta— you have to make certain— I'll give you another one. Um, you know, as a friend of mine told me, uh, never waste time listening to those committed to misunderstanding you.

Never waste time to listen to those that are committed to misunderstanding you. Is that what you said?

Correct. Never waste time listening to those committed to misunderstanding you. You can waste a lot of your life commit— when you are so focused on trying to convince people who are never going to agree with you, align with you, support you, you need to pivot away from that. And I think sometimes we waste a lot of life, uh, trying to just do the opposite.

That's so interesting because I felt like I spent, you know, 27 years— I mean, or, you know, I guess— excuse me, 37 years trying to be something I wasn't. So I'd go to the review and they'd tell me I need to work on this, this, and this. And I was being molded into something I wasn't. And it took me a lot of years to accept the fact and just to get myself my own skin that I don't care what Adam thinks about me. He's either gonna like me or he's not gonna like me.

That's right.

Who I am, right? And that's just the reality. I mean, I was at the point where I'd write up a person because he wore a t-shirt to a virtual call, right? Today I think back at how silly that was. I should just let that person be that person, right? Let them be who they are, right? At the end of the day. So, um, I was that guy that would be like, you need to mold this way, right? And, and it's just amazing that you said that, that you shouldn't waste one ounce of energy on someone that doesn't get who you are.

That's right. That's right. And that being who you are is okay. Matter of fact, it's great because you can only be the best at you.

That's amazing. So we could go around a little round robin. I'd like to make sure that you have the opportunity to share with our audience anything that we did not cover. Number one, and 2 is how do they find you? And maybe, Adam, you can type it up on the screen and stream it. Mm-hmm.

I got you.

Oh, absolutely. Well, first of all, I just want to thank you guys for the opportunity to connect and share a little of my story, who we are, with your, with your audience. You know, we're in a pretty exciting time today and a tumultuous time at the same time. And certainly, again, as we look at why Genesis, it's really about, you know, feeling good being a right versus a privilege. And being able to bring something to our community and making certain that people understand that pouring into your community is an opportunity that we We foster and encourage, and that we want to make certain people understand at the same time we look to still thrive, and that access advocacy and ownership is very real, and it is it is our our true north, if you will. And so, as we've brought this product to life, Genesis, we hope it'll allow you an opportunity to have a great experience. experience. It's about elevated togetherness, and we hope you'll see it on your shelves sometime in the near future. You can, of course, right now you can still order it online at genesisinfused.com. And please follow us on Instagram @genesisinfused. Or if And of course, you can also connect with us on LinkedIn at Genesis Infused as well. But I thank you guys for allowing us— allowing—

What does Genesis mean?

So for us, our company, our overarching company is Pure Genesis. And we started with that because the cannabis plant for us started as just a plant from a medicinal aspect that had value. And so, and today, steel, just in and of itself as a plant, has value. It doesn't need to be adulterated in any way. Hence the genesis of those opportunities in terms of medicinally how it affects you and the experience that it provides you. So that's where Pure Genesis comes from.

That's amazing. Adam, any closing thoughts to you?

Um, yeah, I mean, I think just the, you know, the conversation around some of the industrial hemp stuff is always really interesting to me because I don't spend a ton of time in, in those spaces, but it's fascinating nonetheless. You know, you see clips here and there of some of the commercial building or, or, you know, auto manufacturing deface point, uh, uses, which are— as nerds in the space, whether it's CPG or anything else, that kind of stuff's always fascinating and fun to hear about. And then, you know, I think just, you know, Faye, overall, I really appreciated your perspective and your stories and your insights on like, yeah, we don't know what's gonna happen, but it's happening nonetheless, and we're gonna be there for it. You know, like, we're gonna sit in whether it's the discomfort or the unknown or whatever, and however we need to— whatever word you want to use— adjust, pivot, plan. You know, we're going to do so because we believe in this as a movement and as an overall good for people. And so that's what we're doing. And I, I just, I applaud you for it, and I appreciate you sharing your story.

Thank you so much. Thank you guys so much for the time.

Yeah, absolutely amazing. Uh, I'll forever now look at Adam as a tastemaker. So there'll probably be an episode soon that we'll be bringing on. So you're forever a Drink Up alumni, by the way. So we encourage you to always come back on Saturday morning and join us. You can pop in. We're going to start doing some more pop-ins. We did that last weekend where we had some pop-ins, which sometimes just to have a conversation. So maybe as we get closer to November and the election, and maybe there—I think there's a government shutdown bill that's coming up in December. Interesting. So are they going to try to sneak something in there? That's what I'm thinking. Maybe, maybe, maybe have a conversation leading up to that or right after that would be amazing. Would love to have you back with us, but you're an ever alumni first. For me, the regret thing that you shared is something that this—I'm gonna go back and listen to this on my walk this morning because I always go for a walk after this, and I always listen to this and learn. I'll ask both you and Adam to stay on the line because we have to make sure things upload. Lord knows with me popping off earlier what that's going to cause. But hey, we'll—we'll get through it, and then thank everybody. Thank you, everybody that joined us this morning. We're somehow figuring how to stream this on LinkedIn Live. I have no idea, Adam, how it's doing. I have it like— I think we have 5 different invites from Sunday to figure it out, but it did stream live, which is amazing. And thank you both, and everybody have a great weekend.

Thank you again.