Bryan Cochran, CEO of Buddies- Interview Series

One of the primary reasons that cannabis retail marketing and sales across most state markets have become so successful is the experience of the marketing managers and directors themselves. Many dispensaries and cannabis brands have marketing departments staffed with professionals who have prior experience at America’s largest retailers, from Walmart (WMT ) and Amazon (AMZN ) to popular luxury brands. One of those major retailers whose former employees carry that exceptional experience and strategy over to cannabis businesses with great success is Costco. For former employees who spent years with the award-winning company and oversaw large operational departments, that experience translates remarkably well into cannabis operations.

For a closer look into Costco strategies that work well in cannabis—as well as the current state of the California market—MyCannabis.com had the pleasure of speaking with Bryan Cochran, CEO of Buddies.

What roles did you hold during your many years with Costco? When it comes to effective large-scale retail operations, why is Costco such a successful business?

I worked my way up from cart pusher to general manager. During that time I held almost every position for some time including project management on the new warehouse opening team.

Costco success comes from multiple areas. There are high standards on product choices, discipline on pricing to whenever possible have the most competitive price. 

They also take care of their employees. Costco YOY pays the highest salaries in retail, demanding high performance support by a solid insurance and compensation packaging and lastly, they have a core value of always doing the right thing! We have done our best to follow a similar model to mirror Costco’s success within our own business.

How did your several years of experience with Costco provide you with a better understanding of cannabis retail and successful sales? What are some Costco strategies you’ve applied to the roles you’ve held in the cannabis industry?

There’s nothing quite like cannabis retail! Some Costco strategies I applied were the ability to manage a business at scale and effective management skills. Also, Profit and loss management strategies such as: 

Focusing on inventory management with a focus on JIT inventory, KPIs, daily and weekly metrics, scaling smartly and focusing on managing payroll daily to the needs of the business.

Where did your interest in cannabis and working in that industry first start? What opportunities could working in the cannabis industry provide that Costco and other bulk retailers couldn’t?

My interest in cannabis was the opportunity to make money and support my family quickly. 

I had left Costco after 20 years and through a series of bad investments in 2008 in mortgage collapse lost most of my retirement. I had tasted the entrepreneurial bug and didn’t want to go back to Costco. I saw an opportunity with the CA market to use my skill set to make money and be my own boss.  The more I became involved in cannabis there, I believed in the product and health benefits it brought to people.

As we scaled our business the more people I met that had used our product and were out of pain, gotten off opiates, etc. It changed my view of the industry and the plant.

What most excited you about joining the BuddiesBrand team when they acquired Tetra Labs? What did you feel like Buddies was doing differently from other cannabis brands in California?

We were excited to join the Buddies team in 2019 for various reasons.

They were ahead of the curve on product development. They had recently launched their live resin line in Oregon and California and the market was falling in love with it.

The Buddies team itself was outstanding and had a very solid vision of where they wanted to take their company. They value a focus on transparency, product quality and consistency, and. also fair pricing to the consumer.

What are the most widespread issues still facing the California industry? Is the unlicensed market still as big an issue as the estimates say?

The California industry is one of the hardest markets to exist in.

The taxes and fees on cannabis businesses make it difficult to exist. The market is overly saturated and has created an oversupply which continues to shrink margins The illegal market continues to thrive, making quality products easily accessible to consumers and have far better prices than the regulated market.

Also, retail shelf space is highly competitive due to the over saturation of the brands.  The various reasons above also create issues for wholesale brands as stores struggle to stay open. This creates an ongoing AR challenge for the brands.

What are some of your regular duties and responsibilities as COO of Buddies? As the brand has expanded into other states, how have your duties changed with those expansions?

In my current duties, I oversee day to day business operations such as: setting KPIs for the company and by department, overseeing both manufacturing operations and our farms, as well as supply chain management. Also, I oversee quality and compliance along with team leadership. 

 From a logistical perspective, what were the most difficult parts about Buddies expanding into other states? Were some state cannabis markets more receptive to new businesses opening up than other state markets?

The challenge has been the differences in licensing and compliance from state to state. Building the teams to open new states is always a challenge.

No state has been harder, just with different regulations and demands.

What have your experiences in the Nevada industry been like? From what you’ve seen, how big of an influence is tourism on that state’s industry in particular?

Nevada has been a great market for us. We are quickly moving up through the ranks after just launching this year. We estimate 30-40% of the market is tourism driven. 

What exciting plans do you have coming up for Buddies? Also, how do you envision the West Coast markets changing from any kind of federal rescheduling or reform?

We have new states on our white board for 2027 and we look forward to rescheduling for several reasons, such as the potential end to 280E, and the ability to move products between states will create reduced cost and efficiency.

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