Tier 1 and Tier 2 cannabis-related businesses (CRBs) play an important role in the cannabis industry. Tier 1 CRBs are directly involved in the production, distribution, testing, and sale of cannabis products. Tier 2 CRBs provide essential services that help Tier 1 CRBs operate efficiently and effectively. An alternative business is Tier 3 CBD. Tier 3 CBD businesses are directly involved in the production, distribution, testing, and sale of CBD products. Their CBD products are strictly sourced from Hemp plants, not cannabis.
Tier 1 CRBs are those that directly interact with cannabis products (plant touching), such as cultivators, processors, dispensaries, and testing laboratories.
Tier 2 CRBs are those that provide support services (non-plant touching) to Tier 1 CRBs, such as packaging and supplies, accounting, marketing, and other professional services, training, software, etc.
Tier 3 CBDs are those that directly interact with Hemp plants as cultivators, processors, and sellers of CBD products.
Here are some examples of Tier 1 CRBs, Tier 2 CRBs, and Tier 3 CBDs:
Tier 1 CRBs:
- Cultivators: Grow cannabis plants.
- Processors: Convert cannabis plants into concentrates, edibles, and other products.
- Dispensaries: Sell cannabis products to consumers.
- Testing laboratories: Test cannabis products for safety and potency.
Tier 2 CRBs:
- Packaging and supplies companies: Provide packaging and other supplies.
- Accounting and tax firms: Provide accounting and tax services.
- Marketing and advertising agencies: Provide marketing and advertising services.
- Professional services firms: Provide legal, human resources, payroll, and other professional services.
- Training companies: Provide training on cannabis cultivation, processing, and other topics.
- Software companies: Provide software solutions.
- Consulting companies: Provide consulting services.
Tier 3 CBDs:
- Cultivators: Grow hemp plants.
- Processors: Convert hemp plants into concentrates, edibles, and other CBD products.
- Seller: Sell CBD products to consumers.