Joe Andreae, CEO of CULTA – Interview Series

As more East Coast states begin to legalize recreational cannabis, some within the industry are utilizing not only the businesses and operational models of the West Coast, but its pool of professionals as well. Given the many years of experience and operations that West Coast cannabis businesses and professionals have in most East Coast state markets, it’s understandable. One such professional with years of experience in the Colorado, Oregon, and California markets who is now overseeing retail and manufacturing operations in Maryland is Joseph Andreae, CEO of CULTA.

What industries did you work in prior to joining the cannabis industry? What were some notable roles you held, and what were the most valuable professional skills you learned in those non-cannabis roles? 

I’ve worked in cannabis most of my adult life. From ages 15 to 21, I worked in the restaurant industry.  I believe everyone should spend at least two years in hospitality. It gives you a front-row seat to what consumers expect in terms of service, professionalism, and attitude. Learning to connect with people from all backgrounds, communicate under pressure within a close team, and maintain a strong sense of urgency are the most valuable skills I’ve carried forward.

What professionally interested you about working in such a nascent and new industry, and what opportunities did you see in the cannabis industry?   

When I moved to California in 2008, the cannabis market operated under a nonprofit medical model. My passion was cultivation, and the nonprofit model encouraged me to build an ecosystem of businesses to support growers. I saw an opportunity in the “picks and shovels” side of the industry to legitimize my work. It was that work  that lit a fire in my entrepreneurial spirit. I’ve always wanted to own a business and lead a team of passionate people, and cannabis gave me that path.

Before joining the CULTA team, what roles in similarly vertically integrated companies did you hold? What were the most effective management strategies that you developed during your time with those companies?    

For the first ten years of my cannabis career, I ran small, owner-operated businesses with a group of incredible friends. We built vertical operations — cultivation, manufacturing, and retail — in Colorado, Oregon, and California. Over the last eight years, I’ve transitioned into leadership roles at larger vertical organizations, including VP of Business Development at Glass House (GLAS ) Group and EVP of Revenue at Story Cannabis. My leadership style blends both worlds.  I call it “Cannabis 1.5.” Large MSOs refer to themselves as Cannabis 2.0, but I prefer a balance: the structure and tech stack of big operations with the close-knit communication of small businesses.

As CEO of CULTA, what are some of your regular duties and some lesser-known duties of that role as well?  

My regular duties include tracking projects to budgets and timelines, ensuring alignment with projections and debt schedules. It might sound unglamorous, but when those numbers connect to projects you genuinely care about, it’s incredibly fulfilling. A lesser-known duty? I’m CULTA’s resident librarian. I keep a stack of books in my office for anyone interested, and we distribute either a book or a “CliffsNotes” packet at every monthly meeting.

What are some commonly occurring logistical issues that can arise when a cannabis company is fully vertically integrated and how do you remedy those issues?     

The biggest challenge is maintaining communication and culture across multiple locations. Retail teams can start to feel isolated,. To bridge that gap, we recently organized shuttle buses to bring retail staff to the Eastern (EML ) Shore for tours, team lunches, and face time with our cultivation and manufacturing teams. It’s an ongoing process, but we’re proud of the incremental progress.

What are some specific goals and milestones you have for CULTA as a company now that you’re the CEO? How will you change or alter current operations for greater overall success?      

Our focus is shifting from breadth to depth. We aim to be #1 in a few select categories rather than “top 15” across many. We’re currently renovating our production site to double down on this strategy. Concentrates are my passion, and Maryland’s concentrate scene is still underdeveloped. We plan to change that and become the market leader.

What are some special advantages that the Maryland industry has over other nearby state markets? Does the fact that the state only shares borders with one other state with a recreational marketplace (Delaware) provide an added advantage? 

Maryland boasts a strong population and a solid median income. Its cannabis program has matured over eight years, working through early-stage challenges. While border states have been slower to roll out recreational programs, that’s been an advantage.  We do expect Virginia, West Virginia, and Pennsylvania to come online soon.

What are some unique sales patterns that you’ve noticed about the Maryland cannabis industry and the state industry’s customers/consumers? Are certain product types or specific brands more popular than others?    

Like most emerging markets, Maryland consumers need more education. We’re still in a potency-driven marketplace, which I find a bit silly.  When was the last time you checked the alcohol percentage on your whiskey bottle? The pre-roll, concentrate, vape, and edible categories are still developing. We haven’t yet seen the nuanced product layering that defines mature West Coast markets.

As someone who has worked in both East Coast and West Coast markets as well, what are the largest differences between the two coasts? 

The West Coast was driven by competition. The East Coast has been driven by margin.

In California, Oregon and Washington, a flood of licenses created fierce competition. The market self-policed, and weaker operators phased out. On the East Coast, limited licenses gave less efficient operators room to survive, which limited innovation but improved company health.

In short: the West Coast optimized for consumers; the East Coast optimized for businesses. The sweet spot lies in the middle when we take the West’s lessons in innovation and apply them to the East’s stability.

Thank you for joining us, Joe! For more information on CULTA, please visit its website.