It’s no secret that the cannabis industry comes with its own unique set of challenges, from fierce competition to navigating regulations. And let’s not forget about the long hours and struggle for work-life balance that can easily lead to burnout. But don’t worry, you’re not alone!
I’m pleased to have the opportunity to speak with Guy Rocourt, an esteemed judge whom I’m excited to meet at the upcoming National Cannabis Festival. Mr. Rocourt serves as CEO of Papa and Barkley, a well-known California brand that specializes in topicals and edibles. The company is a leader in cannabis education and community building.
Whether you’re a newcomer or a seasoned pro, Guy’s advice will help you navigate the industry and grow your business. Join us as we dive into the challenges and opportunities of running a successful cannabis business.
The History of Papa and Barkley
Papa and Barkley is a California-based cannabis wellness company with the motto of unlocking the power of the plant to improve people’s lives. Guy Rocourt, had been in the cannabis industry for quite some time, starting with cultivation after working with Montel Williams on his talk show. After moving to California, he found himself providing safe access to cannabis, which made him feel like a bit of an outlaw.
One day, Guy saw an electronic cigarette and thought that cannabis should be added to it. He and his partner figured it out and started selling vape pens. People in New York went crazy over them, but Proposition 19 had just failed, so Guy recognized that they would need a huge reserve of funds if they wanted to succeed in the industry.
Guy saw an opportunity to create something scalable and compliant, which wasn’t currently available in California. He flew to Colorado and saw a lab where they were making light hydrocarbon extracts. This experience led him to have an aha moment where he realized that he wanted to focus on solventless cannabis products, rather than extracts made with butane or other solvents.
Guy’s desire to make high-quality, true plant-made medicine led to the creation of Papa and Barkley’s first product: a topical made with great inhalable green flowers soaked in coconut oil and mixed with essential oils and beeswax. The company also created tinctures using the same process, and they became known for having the first cannabis conversation with those who were new to the plant or had cannabis shame.
Papa and Barkley’s Ethos and Core Principles
According to Guy, as Papa and Barkley grew, they added concentrates to their product line, which he believes is a form of aromatherapy. The company’s ethos is to speak the truth and uplift small farms in the area, and they have partnered with 200 such farms to manufacture their products in Humboldt, California.
Papa and Barkley have received outside investment from New York Wall Street, but they remain a true California cannabis company. As Guy stated, they choose to speak the truth and focus on making high-quality, true plant-made medicine rather than chasing trends or gimmicks in the industry. The company’s core is based on cannabis advocacy and securing a legacy for the plant’s future.
What does Guy’s day-to-day Life Look like?
With almost two decades of experience in the cannabis industry, Guy understands the constant threat of legal repercussions, especially as a person of color. Despite the challenges he faced, he persevered and found success. Running Papa and Barkley is comparatively easier, and he feels energized by the gratitude he has for being able to do what he loves without fear.
As Chief Product Officer, Guy is responsible for overseeing 100 employees across 75,000 square feet of manufacturing and distribution facilities. Papa and Barkley has three brands, including PNB Kitchen and Papa Select, which cater to different segments of the cannabis market. Guy’s focus is on core products, such as strain-specific gummies and concentrates. He takes pride in the unique and high-quality gummies they make, which derive all their flavor and color from rosin.
The Three Brands under Papa and Barkley
Papa and Barkley have three brands that cater to different categories of cannabis namely: Papa and Barkley CBD, P&B Kitchen and Papa’s Select. But they do not produce flower products. Instead, they have a partner at el Blanco who makes excellent products in conjunction with their selection. As a co-founder, Guy Rocourt played a significant role in the creation of core products as the Chief Product Officer. One of their most innovative products is the strain-specific gummy, which he believes is unique in California. These gummies derive all their color and flavor from rosin, making them, unlike any other gummies on the market.
Weed can actually taste great and Guy knows it. He is proud of their unique and flavorful strain-specific gummies made with rosin, which he claims are some of the only actual gummies in California to feature only rosin as the source of color and flavor. Their gummies come in a variety of delicious flavors like Rainbow Rubble, Papaya Punch, and even Grassy Screens, Garlic Cookies, and GMO. Creating these high-quality, tasty gummies was one of Guy’s dreams, and they continue to innovate.
In fact, they recently launched Satsuma Sherbert, a new concentrate and gummy that may even become a cup winner. Customers can try it out at Papa and Barkley’s dispensary and consumption lounge in Humble, where they can also meet Hannah White from Emerald Queen, smell the flowers, taste the gummies and concentrate.
What is your advice for aspiring CEOs in Cannabis Industry?
If you’re interested in entering the cannabis industry, Guy Rocourt has some advice for you. He suggests that now is a good time to acquire distressed assets, but cautions against simply buying out friends in the industry. As CEO of Papa and Barkley, Guy understands the importance of bringing positive energy to the workplace, especially once an organization has over 50 employees.
He stresses that all eyes are on the CEO and it’s their responsibility to support their team. Rocourt relies on his executive staff, which includes marketing expert Cassie Perlman and lead salesperson Nabil, to help him achieve his vision. Being available to his employees is a top priority, even if it sometimes feels like he’s not actively doing anything.
What does your schedule look like?
According to Guy, his corporate coach advised him that if a CEO works more than 30 hours a week, they’re likely not managing their time effectively. To maintain his energy and ability to solve issues as they arise, he keeps office hours on Wednesdays and Fridays for any employee to schedule time with him.
On Mondays and Thursdays, he participates in executive meetings, where they focus on developing new products such as a sleep vape. Guy’s expertise lies in research and development, and he admits that he’s not particularly skilled in finance. He trusts his finance team, led by Pauline and Christine, to handle that aspect of the business while he focuses on quality product creation. While cost is a factor, he prioritizes producing high-quality products and only adjusts if the cost is too high to bring the product to market.
What is Guy’s role as CEO?
Guy believes that consumers are starting to recognize and appreciate quality cannabis products and are willing to pay a premium for them. He also notes that it’s important to educate customers about the products, rather than simply meeting them where they are. As a co-founder and Chief Product Officer of Papa and Barkley, he’s not overly concerned with the finance side of the business but is actively involved in product development and R&D.
He notes that while it’s important to meet customers where they are, only those who understand where the industry is going are truly qualified to do so. To that end, he creates the products he believes are needed and then educates the customers to help them understand. Rocourt is committed to thought leadership and regularly participates in events such as the IRMO cup, where he judges and shares his expertise with others.
He sees himself as a coach and values his leadership skills, which he developed in the Navy. For him, being in charge is not about power over others, but rather a power through or with them.
A skill any CEO must possess
As the CEO, it’s crucial to hold onto your personal vision. Guy acknowledges that his vision is personal to him, but he’s fortunate to have a team that’s honest and can push back when necessary. He knows that it’s easy to become emotional when something is personal, but it’s important to remember that you can’t do everything yourself.
Guy advises against micromanaging and trying to force people to do things exactly the way you want them done. Instead, the key to success is getting people to buy into your vision and execute it as a team. This is a vital skill for any CEO to master.
What types of licenses do Papa and Barkley hold in California?
Cultivation License to Distribution License
In 2015, Papa and Barkley started with a cultivation license. However, they quickly realized that they needed to get out of the grow house that they started with, which led them to humble themselves. They partnered with a grower and looked for land to start their own grill, but Guy did not feel right bringing Wall Street money to farmers who have been in the business for generations. Instead, they decided to focus on manufacturing, specifically pain balm.
Guy made the decision to sunset their growth and pursue a distribution license. They tried partnering with early distributors right after adult-use happened but found it to be a total nightmare. Eventually, they decided to build their own business, and with access to capital, they were able to get their distribution license. This approach allowed them to focus on manufacturing quality products and building a reputable brand.
Retail Licenses and Manufacturing Licenses
Papa and Barkley has several manufacturing and distribution licenses and is currently in the process of collapsing into a large facility, an old KMart. The community of Humboldt played a significant role in helping them acquire the Kmart building. They were able to convince the owner, who wasn’t initially interested in cannabis, to sell them the building at a cannabis price and even took a little bit of stock in the company as payment. Papa and Barkley value community and was the first cannabis company to join the Chamber of Commerce.
Our Partners
So, in addition to their core business of sales, distribution, and retail, Papa and Barkley also prioritize community engagement and charitable events. They recently participated in a charity event for the Discovery Museum, where some of their team members braved the 40-degree water of the Bay.
At Papa and Barkley, they prioritize working with generational farmers who are true stewards of the land and who have inherited it from their families. Hannah Whyte of Emerald Queen, Andelain Lorena Roy of Dewpoint, Lorelei Sandomeno of Sunrise Farms, and Tina Gordon of Moon Made are all female-led farms that Papa and Barkley partner with.
These farmers provide the real cannabis that consumers want and appreciate. For example, Lorelai at the Emerald Cup shared how she was traumatized by helicopters when she was young but continues to push flowers on that land and deserves recognition for her work. Papa and Barkley highlight these farmers in their dispensary and buys a flower from them to push into their core products. They also source fresh frozen from partner farms and get great hash strains that are grown specifically for them.
Meet our Farm partners: Our Partners
The Importance of Solventless Manufacturing and Unique Product Development
When Papa and Barkley first raised money, an investor suggested that they go to a contract manufacturer. However, according to Guy, there were no contract manufacturers producing solventless products at the time. While some may wonder why Papa and Barkley haven’t expanded to other states or become a multi-state operator, he prefers to stick to their unique approach to cannabis production, which involves sourcing high-quality biomass from partner farms, conducting Fino hunting, and having talented hash makers create a top-notch hash.
Papa and Barkley is not a push-button distillate operation; instead, they use real rosins and raw cannabis for their products, making the manufacturing process more complex but also more authentic. As a result, they are able to produce their own products in-house.
Institutional Fund for Papa and Barkley
According to Guy, Papa and Barkley has four founders, he and Adam Grossman are the operators, with Adam having a unique origin story that led to the creation of the company. The other two founders are Scott Gordon, who has experience in the FinTech industry, and Eli Halliwell, who has a background in real estate.
When they started Papa and Barkley, they raised around $6 million from friends and family, including high-net-worth individuals from their personal networks. This helped them to get started and build a strong investor base. When they approached institutional investors, they were able to secure funding and achieve high valuations due to their core investor base and their success in the market, including partnerships with companies like MedMen.
How did Guy and his partners raise the money for Papa and Barkley?
In the summer of 2016, Guy and the other founders raised money before the legalization of cannabis in California. Adam wanted to handle the financial aspects of the business but Guy was hesitant about holding other people’s money and handling contracts. However, they were able to raise money from friends and family, which allowed them to pursue their broad vision for the company.
With the legalization of cannabis in California, Papa and Barkley hit another inflection point, as they already had investors on board. This made it easier for them to raise the next tranche of cash, as they had a privileged license, a facility in the works, and were ready for the market.
Lesson Guy Has Learned
Guy cautioned that raising too much money can be a mistake. He believes that the company should not have raised its last tranche of capital at such a high valuation as it further dilutes his personal equity. Despite this, he takes pride in his ability to interlock the vibe of the company into his brand. While he would love a successful exit, he cautions that it’s important to know the people that you’re talking to. Those who have had a successful exit have more flexibility and options than those who haven’t. Guy warns others to be careful because people always have hidden agendas.
He feels fortunate that his talent and passion align with his role at Papa and Barkley. He acknowledges that if the company were to get diluted, he would likely receive points to ensure he is incentivized to continue running the company. Guy believes that his and Adam’s personalities have been woven into the brand in a way that other founders have not done right.
What is Guy’s exit strategy?
Speaking of an exit strategy, Guy explains that his duty to his investors is to bring them a return, and he knows they would love a 10x return. Therefore, they are driving towards an exit, which typically means a transaction. However, as they close out seven years and head into eight, they face challenges as the market is down, and mistakes have been made along the way. Although they don’t have a bad relationship with their current investors, they are not ready to stroke checks since they don’t have to.
These investors have a lot of money and are playing a game. While Guy is thankful for the lesson, he acknowledges that his current investors won’t give him another dollar since it’s not in their interest. He ground it out, and they may “lose the rest of their investment.”
Guy acknowledges that the investors have the option to scope the entire company and push him out or do whatever they want. However, he knows that they would like for the industry to come back so they can invest more money to grow the company back to its original valuation or more. This would allow for a larger entity to cash them out or for the company to go public, providing liquidity for the investors’ assets.
To achieve this, Guy needs to bring in a ton of money and generate lots of cash flow to increase the possibility of an exit by selling or going public. While the investors want an exit, Guy’s desire is to remain in the cannabis industry forever, as Papa and Barkley is his baby.
The Company Culture of Papa and Barkley
At Papa and Barkley, they have a regular event called “all hands,” where everyone gathers and discusses a theme or intention for the month or quarter. Guy believes in the collective power of people working towards the same goal. For this month, their intention is momentum, as they are currently on track to meet their annual plan or EOP (another business acronym that Guy acknowledges can be overwhelming for those new to the industry). Their annual plan is referred to as RLE or annual operating plan.
Guy shares that their company was on track for their annual plan or EOP as they headed into April, with strong momentum and hitting their targets through March. He wanted to encourage the team to keep the momentum going, especially since their retailers were about to have their quarterly targets, which included the new excise tax. Guy acknowledges that getting paid is always the hardest thing in the cannabis business and it has always been a challenge for those who have been in the industry for a while.
What does Guy think his biggest challenge as a CEO has been?
One of the essential things in any workplace is making sure that every employee feels valued and heard. It’s not just about money; it’s about creating an environment where everyone has a place and feels like they are a part of the overall mission and vision. This includes even hourly employees.
Bias can often seep into the workplace, and it’s essential to recognize and combat it. However, the focus should always be on ensuring that every employee, regardless of their position or title, feels like they have a voice and are heard. By creating this type of environment, employees will feel more invested in the company’s success, which can lead to increased productivity and a better workplace culture overall.
If Guy could do it all over again, what would he do differently?
Guy reflects on his past decision to take too much money, acknowledging that it was a mistake. He states that if he didn’t take as much money, he wouldn’t be in the current situation he is in. In hindsight, he realizes that he didn’t even need the excess funds at the time.
If Guy had a magic wand and could change one piece of cannabis policy, what would it be?
Guy expresses his support for all things cannabis, but he has a specific policy change in mind. He would ban all chemical extraction and active pharmaceutical ingredients.
What’s the thing that excites Guy the most about The National Cannabis Festival?
The National Cannabis Festival takes place in DC, where policymakers can see how the cannabis community behaves. Guy believes that events like concerts and sports that serve alcohol are often rowdy with fights and police activity. On the other hand, he thinks that at the RFK Stadium, where the festival is held, everyone will be smoking, and they will float away quietly without any incident. Guy appreciates the perspective, leadership, and energy that others bring to the table.
To learn more about Guy and his Journey as the CEO of Papa and Barkley, Listen to the full episode here:
If you’re competing, or you’re thinking about competing for a license, but you don’t know where to start, I went ahead and cleaned up all of my application material, and updated a lot of it and you can get your own copy here: https://highsalwa.com/business-downloads. It is what I use to win licenses in multiple different markets. I have cultivation, production and retail that’s currently available and I’m looking forward to adding more to give you a head start.
