Marianne Cursetjee, CEO of Alibi – Interview Series

As the American cannabis industry expands into states and territories once thought to be legally impossible, it will be interesting to watch the overall performance of states on opposite coasts of the country and determine which may have an advantage over the other. One professional with plenty of experience in both the nearly decade-old Oregon recreational industry and the newly formed New York recreational industry, and many of the factors impacting each, is Marianne Cursetjee, CEO of Alibi.

What subjects did you study at Walla Walla and City University of Seattle, and how did your educational experience prepare you for working in the cannabis industry?

I didn’t start university with a plan. I knew I didn’t want to be a specialist and business seemed like a good generalist degree. What I didn’t know at the time, is that it was the perfect field of study for me. I learned how financial statements work and how accounting systems are designed. As an entrepreneur, having a deep understanding of finances is crucial. Well-run businesses focus on systems and process.

Because so many cannabis professionals come from so many diverse educational backgrounds, what advantages and/or strengths does having a graduate degree, such as an MBA, provide someone who’s working in cannabis?

For me, education helped me create a framework for lifelong learning. Knowing how to ask questions, evaluate answers, and turn that into actionable intelligence is key. In my MBA coursework, the case studies of companies who have been around for millennia were fascinating. Alibi incorporates many of these ideas of creating a lasting, thriving business. We are focused on creating a brand that will stand the test of time.

Prior to working in cannabis, what industries/businesses did you work for, and what were some of your regular duties within those roles? Despite differences in federal legality and day-to-day operations, what are some similarities that those industries/businesses share with the cannabis industry?

I’ve worked in finance for a couple of the largest tech companies in the world. My most recent business before cannabis was ecommerce. When my kids were little, I started an ecommerce company selling educational science kits. This was intended to be a little hobby to keep me busy while raising my two girls. It turned into a good sized operation with a fulfillment center on the East Coast and a 24/7 call center. Learning how to setup an efficient lean operation was key to my success. This same mentality is key to cannabis. Find the best people to do the jobs, setup systems so they can be successful, and create a culture of learning.

How did you first become interested in cannabis, and what inspired you to begin growing cannabis and working in the Oregon cannabis industry?

When I was going through chemotherapy for breast cancer, a friend gave me some cannabis. Rick Simpson Oil (RSO) is a concentrated oil from cannabis that is often use by cancer patients. My treatment plan included a steroid which made it very difficult to sleep. Cannabis took the edge off so I could sleep and virtually eliminated the nausea. It really improved my quality of life during that time. Now, cannabis is an integral part of my physical and mental health.

Oregon legalized cannabis in 2015 and while going through radiation treatment in the spring of 2016, I started looking for property. We found some agricultural land, constructed our cultivation facility and became licensed in 2017. I was excited to be able to provide craft, quality cannabis to the Oregon market. Through our relentless focus on continual improvement, we have created an iconic brand and a reputation for quality in a crowded marketplace.

When did you create Alibi, and why is the name and brand special and stand out compared to other Oregon cannabis brands?

Alibi means being somewhere else. I love that idea, that cannabis can help you dream of a better world, a more beautiful day, a more connected circle. I fell in love with the idea of a beautiful woman representing the inner beauty that we all have. The image on our branding is named Mariposa (butterfly in Spanish) and she is our vision of a beautiful, connected, world.

Based on your professional experience in the New York cannabis industry and other relevant experiences, how would you describe the entry process into the state cannabis industry, and what are some common issues that the New York cannabis businesses you evaluated frequently encountered? And what are the most notable and/or widespread differences between the Oregon and New York cannabis industries? Has the extra years of legalization and operations strengthened the Oregon cannabis industry overall?

It is really interesting to see the differences between a mature market and an emerging one. Also the East Coast is very different culturally from the West Coast. With a population of 20% of New York’s and an area of almost double, Oregon is very spread out and disbursed. Outdoor activities including hiking, rafting, climbing, snow sports and more reign supreme. This active lifestyle translates well into the urban adventures of New York City and the outdoor lifestyle of New York State.

My family has lived in New York City for decades. I remember spending New Year’s Eve of Y2K (December 31 1999 for the younger generation) at the Brooklyn Bridge watching all of the fireworks and excitement as we left the 1900’s and entered the 2000’s. Could never have imagined that since then, we would be in a place where cannabis use is more normalized and we can use plant medicine to improve our lives. There’s still a lot of work to do, but progress is happening.

Oregon’s cannabis market has seen several cycles of expansion and compression. New York’s regulated cannabis industry is fundamentally different from Oregon’s in that Oregon’s barriers to entry were deliberately low. Licensing fees are relatively inexpensive, and licenses were initially unlimited. This egalitarian philosophy provided massive opportunities for so many families. The downside of this licensing scheme, is that there is excessive supply of cannabis and an over abundance of retail dispensaries. Oregon has approximately 4 times as many retail licenses as New York with only 20% of the population so it is challenging to be profitable. There are virtually no large out of state operators in Oregon. A few brands have expanded from home bases in Oregon. The scrappy, lean mindset that is a requirement in Oregon translates well into a larger multi-state operation. Alibi is poised to bring our operational efficiency, strong ethos, and love of the plant to New York.

While creating and developing the coursework for the Cannabis Business Program at LIM College in New York, what subjects did you include? In general, what subjects do you feel are the most pertinent and relevant to cover for educational degrees in cannabis and the overall flourishing industry?

Developing the coursework for a college class in cannabis was so much fun! It was challenging to distill the complexity of operating in this industry into something meaningful for undergrad students. The course includes some history of cannabis, an overview of operating in a regulated market, and a framework for creating a business plan. Fun fact – Canvas is a tool used by many universities to manage classes. The word “canvas” is based on the word “cannabis”. Another fun fact: early American farmers were required to grow hemp!

How does your work with the Cannabis Industry Alliance of Oregon (CIAO) impact the Oregon industry?

As an entrepreneur, it’s important to be connected to the broader community. When starting up, it’s easy to be task oriented to build the business. In cannabis, the community and network is so important. Relationships take time to build and sales are made through trust and consistency. For a number of years, Oregon had 4 different trade associations. Each had their own focus, but it became time for them to merge. We now have one trade association and I’m fortunate to lead the board in envisioning how the trade association can help influence policy and become a resource for operators.

From your experience within the two states and their respective cannabis industries, how would a federal cannabis rescheduling impact the Oregon and New York state industries? Would the changes be equal through both states, or would one state be more impacted by a federal reform than the other?

There are two main components of federal rule change. The first is tax treatment – IRS code 280(e). Currently plant-touching operators are allowed to deduct only the cost-of-goods-sold (COGS). This creates a massive tax burden on operators. Many dispensaries have an effective tax rate of more than 60%. After so many years without changes, we simply prepare our budgets and financial plans to include this tax. When tax rules change, it will be welcome, but in the meantime, we include it as a cost of doing business.

The second component of federal rule change would be interstate commerce. I don’t think the industry is quite ready for interstate commerce. There are so many differences now between states – packaging requirements, testing requirements, required warnings, and so much more. The industry should prepare for this and work together to agree on standards.

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