GL420 Enterprise, Inc. Distribution
GL420 Distribution works with cultivators, manufacturers, and dispensaries. With a seasoned team of representatives, we have gained insight into the industry from our experience in working with the entire supply chain. Not only do we enable cannabis brands to sell their products through our broad footprint of retail locations, we also ensure all legal compliance, from testing to taxation.
GL420 is a reliable distributor and we pride ourselves on our integrity and hard work as we distribute the products of cultivators and manufacturers to dispensaries.
As a wholesale distributor, we are recognized as the gatekeeper to the retail channel in terms of making sure that the brands and products we distribute are compliant with all applicable regulations, such as packaging and testing requirements.
As a licensed distributor, we ensure that all vendors and retailers that we work with are properly permitted and licensed. GL420 makes sure that products meet all the state requirements, and if they don’t, we work with the brand owners to either modify their labels or sticker packages correctly. GL420 is also responsible for working with laboratories to do microbial or pesticide testing for CoA (Certificate of Analysis). If a product fails, GL420 will must work with cultivators and manufacturers to file remediation plans with the state.
One of our main connections with Cultivators is, as cultivators ourselves, we know all of the challenges a grower faces, and we also know the flower market. We understand the importance of their grow philosophy and we respect genetic lineage. We represent their voice to the retailers and get the highest value for their brands.
One of our main connections with retailers and what customers need in terms of flower is that we have our very own indoor grow. We have the genetics to grow the strains they know and like. We understand the retailers needs so we grow what sells and we keep that strain available all the time.
GL420 Distribution Process
Quality Assurance
Once retail or commercially-ready products are ready to be tested by a Type 11-distributor, they must be held in quarantine in a separate location from rest of the inventory, while awaiting testing from a licensed testing facility.
An agent of the testing lab will come onsite the distribution facility and pull random samples from each ready-batch to take for testing. Batches with passing test results may be sold.
A distributor must ensure proper packaging and labeling (and potentially re-labeling) before sale to retail, delivery, or micro-businesses.
Distributors may purchase tests and charge a markup or require their producer client to purchase tests from labs directly. Tax Collection and Remittance
Distributors collect the Cultivation Tax (from cultivators or manufacturers) but do not have to collect right when material exchanges hands. It might be that distributors will take material on consignment, sell it, and then pay off the producer less their fees and cultivation tax owed.
Distributors are responsible for collecting the excise Tax (from retail, delivery or micro-businesses) and remit those taxes. Excise tax is calculated as a % of invoice total. Transportation
Distributors are the only license types that can transport between licensees
Type-11 distributors are the only ones who can deliver to a retailer and may subcontract out to another Type-11 distributor.
Type-13 distributors may transport between licenses or transport immature plants to a dispensary
Distributors may end up handling a lot of cash as many sales are COD (cash on delivery)
Distributors can charge for transportation by either charging a fixed fee, a fee per mileage, and/or a % of the invoice amount Storage
Distributors may provide storage-only services or have it as part of
their overall offering of testing, storing and transportation
Distributors can charge producers for storage by the space the inventory occupies Sales & Marketing
Type 11-Distributors may engage in sales and marketing on behalf of Producers, including purchasing and reselling from other licensees
Not every Distributor buys and resells; many may strictly provide distribution-as-a-service and charge a fee accordingly
SIGN UP FOR CANNABIS DISTRIBUTION SERVICE
Are you a cultivator, manufacturer, sales rep, dispensary, or delivery service? If so, use the pulldown to select the user type that most closely represents you, complete the form, then submit.
