Crain’s Detroit Business: What led you to seek out a marijuana event organizer license?
Grant: In 2014, I founded a food delivery service company called Flash Delivery. I decided to walk away from the company instead of duking it out with Doordash and Uber Eats. But my mentor told me I needed to look into delivering weed since it had gone legal. So I started looking at license types and even got an investor lined up. To be honest, though, I just wasn’t getting the clarity on the projections I needed to go forward. I sought counsel of friends in Colorado and California where it was already legal. Secure transport is a really tough business, so I decided I should stay on the marketing side. I already had a thriving business on the PR and marketing side and these (cannabis) companies need those services too. A client asked for a large scale event in Detroit. I did my research and discovered the event coordinator license. The way that the legislation was written, any event where you can consume THC, buy or sell it now required you to have an event license. I saw an opportunity there.
What are some different types of events you plan to host?
We are event producers. When I worked at The Palace, I produced the event. By trade, I am technically an event planner. So any type of event, where weed is consumed or sold, really. Some clients want a dinner series. A small intimate gathering with infused meals, treats and such. That’s an example of one. Anything we can curate that elevates and showcases a brand, the potency and quality of the flower, etc. We can go all the way up to an outdoor event that is comparable to Cannabis Cup. With that type of event, you have a whole other level of interfacing with police, fire and safety. There are more sponsors. That requires the license. When you’ve got vendors that sell marijuana to a wider event audience, we need that license.
You’re hosting an event in Hazel Park in April. What can you tell us about that?
Not much yet. We have officially submitted our application to the state of Michigan to host, to our knowledge, the first licensed event where you can consume and sell marijuana. It will be a public event featuring a celebrity host that is sort of bizarre themed. We’ll have lots of local participants on the cannabis brand side and local Southeast Michigan-specific small businesses. Also have a food truck component. It’ll be an outdoor event where people get some food, support some local small businesses along with an entertainment component.
What sort of marijuana businesses are involved?
Mostly retailers. We’re seeing companies that don’t have locations in Southeast Michigan or Detroit, but want to try to market in this region. Some companies are closer to the middle of Michigan and don’t have any other means to get access to this market. The event will allow them to have a presence even if it’s a temporary event. But it’s mostly the consumer facing brands. At these events, people can actually purchase product. They can get more familiar with the retail brands that might not be local but in the shops they visit. Our clients will be able to sell their full portfolio of products and interface with the customers.
Who are these events targeting?
Everyone that’s interested in marijuana. There’s also an increase in the elderly and senior citizens that are taking to cannabis. Possibly perceptions are changing. These events are going to allow people not comfortable going into a dispensary, giving them the green light to check out what’s happening at this sort of event. They have less pressure and if they feel the need or desire to partake, they can. And your true die-hard consumer who has been doing it for years will be right at home. This is probably a celebratory thing for them, a way to publicly engage and enjoy (marijuana) at an event.
What sort of challenges are you facing, given this is an entirely new industry?
It’s taken us a little bit longer to even apply to the state than I’d like. Then there are the insurance implications. It’s been extremely difficult for us to find an insurance carrier. There’s one in the entire nation that we could find, and it’s extremely expensive. As much as we see the industry as wide open, the costs to produce these events are extremely prohibitive. It’s going to be a case of only large events being able to go through the process. Only events where you’re projecting a sizable revenue will justify the expenses on the front end. Even our insurance partners didn’t expect it to be this high. I see the demand increasing as the market awareness and curiosity increases, but prices have to come down.
