John and Julie Widmer, Co-Owners of Kaleafa – Interview Series

For many reasons, the Oregon cannabis market proves that state-level industries can evolve in unique and unpredictable ways. In the dozen years since adult-use sales first began, numerous issues have persisted, forcing business owners to find clever ways to adapt. Even in a market as established and experienced as Oregon’s, running a business here is far from a walk in the park.

For a deeper look into the current state of affairs and how to navigate a rapidly shifting landscape over the course of a decade, MyCannabis spoke with John and Julie Widmer, Co-Owners of Kaleafa.

Where did you attend university, and what were the most useful courses in business operations and management that you learned during your studies?

 John: I attended Portland State University with a degree in Advertising and Marketing. The marketing classes were the most useful because they taught me how to look at things through the lens of the consumer and set the foundation for how we operate at Kaleafa. Finance courses also were extremely helpful in getting a general business overview. These skills are utilized daily.

 Julie: I attended Citrus College (CA) with a degree in Performing Arts. My degree allows me to better understand people, our customers, and drive customer service training that reinforces that Kaleafa is a family.  This translates into trusted and positive experiences with our customers.

John, while working with Smith and Nephew, what were the most important lessons in sales and marketing that you learned during your time serving those roles?

 A few lessons I learned at Smith and Nephew stand out and influence how we currently operate:

1. Attention to detail, which is by far number one. Working with various vendors, employees and customers, attention to detail ensures we’re always focusing on the task at hand. This has proven to be imperative to success.
2. Being ultra-responsive and always available to answer communications. Smith and Nephew was a fast-paced business, and I learned the importance of being able to be responsive and available.
3. Understanding people’s perspective and putting myself in their shoes. For example, I often had to ask myself why a surgeon would choose one implant over another. It could be for one of many reasons, such as long-term sustainability or minimizing risk. No matter the reason, it was almost always about providing the service. 

What inspired you both to enter the Oregon cannabis industry and create Kaleafa? Did either of you have any professional concerns about starting a cannabis company?

We did have professional concerns; for the first two years John kept his job and Julie (and John’s brother Bill) were the primary leaders of the company. 

We originally entered the space because we were inspired by John’s brother Bill. We believe in supporting family and working together, and Kaleafa presented an amazing opportunity to do so. 

Kaleafa also provided an opportunity to invest in something that we both enjoy. Being from SE Portland, John was regularly around marijuana. Being able to provide a safe and legal option to improve people’s lives was (and is) important. 

Even though Oregon is a pretty progressive state when it comes to cannabis, what were some challenges you initially faced when starting up Kaleafa? What were some unplanned roadblocks that you faced?

Companies that are necessary to operate our business treat us differently because of our industry. Some simply do not provide access. This doesn’t just include banks, but also software companies, payroll companies, insurance companies, and so forth. When we do find companies who will work with us, we often pay an extreme premium because we are a cannabis company. 

 There was a big learning curve concerning rules and regulations. When Oregon cannabis was in its infancy, several people rushed to find dispensary locations. The Green Rush really existed. It felt like playing Monopoly: When you travel around the board the first time, you had to grab properties as quickly as you could because you weren’t sure if they’d be around the next time you passed them. 

Julie, what are your regular duties as President of Operations? How has that role and your duties changed as the Oregon cannabis industry has evolved over the years?

My most important job is to care for people, places and processes. There’s been a lot of new laws put into place over the last 12 years that have created confusion as we grew the company. It forced us to build a great team that allowed us to grow sustainably. 

From your experience, what are some issues that smaller cannabis businesses in Oregon that larger businesses/MSO’s don’t nearly as much?

Being a family-run business, capital isn’t as accessible as with many of the larger businesses. The larger businesses also have more resources that allow them to better influence policy at the state and federal level. 

What are the most notable ways that you’ve seen the Oregon market change over the years that Kaleafa has been in business? How did Kaleafa adapt to those changes?

 We’ve seen a few cycles of changes over the years that we have successfully adapted to. A few include: 

• We’ve gone from a lack of products available to oversaturation in Oregon.  
• A high level of competitors has entered a small space. Oregon has among the most dispensaries per capita and provides customers with a myriad of options.
• Price fluctuations have been great over the last 12 years, driven by supply and demand. This is a win for consumers but can create stress for dispensaries, vendors, and those in the industry.
• Regulation changes across all aspects of our business. Federal and state-level changes impact this.

No matter what has been thrown our way, we’ve found strong relationships with our partners paramount for success. It provides us with access to quality products, people, and allows us to be hands-on members of our community. 

How does Kaleafa keep their relationships with their local community strong? What are some ways that Kaleafa is involved in local causes and organizations?

At our core, we have always been community focused. We know that purchasing cannabis can be intimidating, and it’s always been our commitment to help improve people’s lives. We have grown alongside our communities. For example, a few ways we partner with our communities include:  

• Woodstock Gives Back & Farmer’s Market: Investing in our local community of our original location – both financially and through education – has brought us closer to local business owners and residents. 
• Various Chambers of Commerce: We want to be at the pulse of what’s happening in our communities and always support local businesses. Investing and being active in local Chambers of Commerce allow us to do so. 
• Business groups (e.g. LeTip): Learning from local business leaders provides new ideas and has helped us find partnerships with local organizations.

What are some exciting future plans for Kaleafa? Also, how do you envision the federal rescheduling of cannabis impacting the Oregon industry?

Federal rescheduling will, between 280E and more, provide more access to capital. All of these implications are positive for everyone in our industry. 

Being as financially sound as possible is always paramount. For Kaleafa, we’ll continue to make our operations as efficient as possible while continuing to build a company that supports every employee’s growth for years to come.

In the future, it means potentially expanding when the Oregon market stabilizes.

Thank you for joining us, John and Julie! For more information on Kaleafa, please visit their website.