Founder/CEO Of NUG: Dr. John Oram Has Lunch And Five Questions – Forbes

Sharing a meal with someone as influential and intriguing as Dr. John Oram of NUG can be a most enlightening experience. He is obviously interesting to talk to about a multitude of educational and nerd-driven topics. Well educated in the classics of applied science, chemistry, biochemistry, etc. Dr. John has the stuffing with a PhD to show for his determination and ambition. When you say doctor, he’s done the hard work to get there. And cannabis? That’s only scratching the surface. Dr. John is down to earth and kind. He speaks with a soft-spoken cadence that makes you want to ask more questions. But five is all we have time for. Thank you. WB

Warren Bobrow= WB: Where are you from? Why cannabis? When did you first discover the plant? What was cannabis like when you were young?

 JO: I am originally from Alameda, CA, a small town near Oakland in the San Francisco Bay Area. I attended college in Boulder, CO where I studied chemistry, biochemistry, and applied math. After some time off traveling and chasing an endless winter I enrolled in a doctorate program in environmental engineering at the University of California, Los Angeles. Seven years later I graduated with my PhD and continued my academic pursuits with fellowships and non-profit research positions studying agricultural pesticides and their impacts on coastal water quality. It was academically challenging work but it didn’t satisfy the entrepreneurial drive that I had. I wanted something more. I needed something more.

A good friend of mine was the operator of one of California’s first medical cannabis dispensaries. I was intrigued by the business and began consulting for him part-time to help establish commercial cultivation facilities. He was having a difficult time securing quality cannabis and I knew I could help. I had been a cannabis enthusiast since high school (sorry mom) and always had a personal hydroponics operation in my closet (again, sorry mom). So I helped establish a few facilities and operated them part-time for a year or so.

Moonlighting part-time began to wear on me. But at the same time I saw incredible opportunity in cannabis. This was early 2007. Medical cannabis existed in California since 1996, officially. But there was no “industry” per-SE. There was no official supply chain. No official quality assurance. It was truly a cottage industry. I saw endless opportunity, especially in the area of analytical science and quality assurance.

In 2008 I left my non-profit research position and partnered with another PhD scientist to form one of the nation’s very first analytical laboratories focused solely on cannabis science. I took a home equity line and purchased some used analytical instruments. We spent the next year establishing the fundamental science of testing cannabis and cannabis products. I am happy to say that the methods we developed are still very much the basis for the countless analytical labs now testing cannabis across the country.

The work we were doing in the lab fundamentally changed the types of cannabis products that could be developed. We began working with clients to develop products that were leaps-and-bounds ahead of the cliché “pot brownie.” Manufacturers were able to consistently dose their products for the first time ever. They began hard-printing the product’s potency right on the package. And they actually began developing real product labels including ingredient lists and nutritional facts. Seems trivial today but these were major breakthroughs. Again, my entrepreneurial instinct kicked in and I decided to start my own cannabis-products company. I spun out from the lab and started what eventually became NUG Inc.

WB: Tell me about your company? Where do you see the business in six months? A year? What’s next on the horizon in cannabis?

JO: My company is NUG Inc. We are a vertically integrated cannabis company based in Oakland, CA. Actually, we are more than a cannabis company; we are a cannabis brand with a strong presence in the nation’s largest market. NUG currently employs nearly 200 people across California. We control the entire process from seed-to-sale. That means we cultivate all our own cannabis plants, we extract the active components (e.g., THC and CBD) from the plants, we manufacture cannabis-infused edibles, we distribute our products across California where our products are represented in approximately 65% of the state-licensed retail outlets, and we operate our own high-end retail outlets in key markets. We do this all under the NUG brand.

This vertically integrated business model has not been easy to establish and maintain but is absolutely critical to our company’s mission. In order to stand behind our products we felt it necessary to control every step of the process. Again, not easy. And not cheap. But this model has allowed us to iterate and adapt to the market and build a strong and relevant brand presence across the state.

I see NUG increasing its market share over the next six months. We will do this by continuing to produce consistently high-quality products and getting them to market in an efficient and timely manner. We have a few new products in our pipeline that I hope to release within the next six months. But product releases always take twice as long, and cost twice as much, as you initially intended. We are also on track to open two more retail outlets in the Bay Area within the next six months. Our stores are beautiful! Some liken them to a museum. We work with incredible architects and designers to create a welcoming and normalizing environment for people to access cannabis. Normalizing … that is a key term we use within the company. We are trying to normalize the cannabis experience. This is important not only for NUG but for the industry as a whole. Really for the benefit of the consumer. No more dingy dispensaries. No more questionable products. No more stigmas and labels. The cannabis consumer deserves a normal experience when purchasing and consuming cannabis. That is the future of cannabis. It might seem to some like we are already there. Let me assure you we are not. We have a great deal of work to do as an industry,

both locally and at the federal level.

WB: How would you change stigmas in the cannabis business? What business model do you follow for success?

JO: Unfortunately, negative stigmas still surround cannabis. The lazy stoner persona still exists. The assumption that cannabis businesses lead to increased crime is still pervasive, though factually incorrect. It is a shame, really, but not unexpected. The past criminalization of cannabis and its consumers has a legacy effect and it will take time to break down those stigmas.

NUG is intent on normalizing cannabis. However, that does not mean that we have to take away the “stoner” or “inebriated” perception of cannabis and transform entirely into a medical- or wellness-only model dominated by affluent consumers. The industry needs to embrace all cannabis consumers. At NUG we understand that our core consumer demographic skews towards the 20 to 30 year old adult-use crowd. We intend to maintain a strong relationship with this core audience while at the same time develop new products and services for other demographics. Our retail outlets, for example, are geared towards a higher-end experience. But within those stores we offer a wide variety of products at all price points. There is something for everyone. People talk about the future of cannabis and the new innovative products that will be available. That is great and I am excited for those new innovative products. But let’s not forget about the current cannabis consumer. And let’s not forget about the current cannabis product offering; manicured flowers and pre-rolled joints make up approximately 60% of the market today.       

WB: Do you cook? If so who taught you? Do you have a favorite restaurant in NYC? Anyplace? If you had one food that you loved more than any other what would that be? From where?

 JO: I am famous for my buttermilk pancakes. They are the lightest, fluffiest pancakes and I love making them for my kids and their friends on weekends. Other than that I really am just the sous-chef for my wife. She is an incredible cook.

My favorite NYC restaurants have to be Balthazar (steak frites and a Manhattan at midnight) and Joe’s Pizza. In Oakland I enjoy Flora & it’s sister bar Fauna; great food and cocktails. For a working lunch I like Chop Bar. The Bahn Mi sandwich and the Spicy Q cocktail go well together. We’re allowed to have a cocktail at lunch, right?

Favorite food? That’s easy. Has to be pizza. For breakfast. For lunch. For dinner. Is there anything better? Really.

WB: If you could be anywhere in the world right now, where would that be? Doing what? With whom? 

JO: I love nothing more than being with my wife and two daughters. We are big winter sports enthusiasts; my kids are actually competitive snowboarders. I want to be on the top of a beautiful snow-capped mountain with my family getting ready to race each other down the hill. Of course, I win every time …

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