Ready?
Damn it!
Okay, so thank you for being here.
We're going to have to do a lot of questions
that we've already done over, but
that's okay.
Absolutely.
Let's start off easy though, so what
got you and EGLE Park into doing
THC for everybody?
We started out doing them
over two, two and a half years ago
and, you
know, we saw the beverages gaining
popularity.
We've always been pro
THC in all industries and
we had
our customers start asking and,
you know figuring out are we going
to jump into this industry and
it made sense for us to do it at
that time. I mean, craft beer has
definitely been a huge thing for us
but to have different product
segments that we can jump into.
Especially if there's a massive
consumer demand, which clearly there
is because they've been growing like
crazy, we were excited
about kind of the opportunity to
have A, a new product line, and B,
we know it does help people,
and yeah, it's been really good for
us thus far.
Is the noise a concern?
No, it's fine. We've got a lot of
noise.
You did this because your customers
wanted to.
Yeah, it was mainly because we found
our customers were asking and
we saw the demand growing in the
state of Wisconsin.
So we waited and waited
to figure out, you know, to see what
the climate of the state of
it was. And it seemed to be there
hasn't been, you know, products were
continuing to grow.
We weren't hearing a lot of
government backlash or anything.
So we jumped in and a lot of
companies did. I mean, it's a huge
industry now.
So we weren't the only ones that saw
the opportunity.
And how much, over time,
how much of your THC products have
been a part of your videos?
I mean, it's grown to like 16%
of our company in the last two and a
half years.
So I mean that's just how fast like
the product segment has been
growing.
Explain to me this loophole that
allowed you guys to put THC
in your beverages even though it's
not a legal mistake.
Well, within the farm bill, the way
that they had it is, you know, it's
within dry, it's the THC content
was in the dry weight of the
product. So it allows that
the weight of it in the actual can
or package is still within the
tolerance the way they wrote the
law. And if it was from the
2018 farm bill.
I mean, the government knew that
this was happening forever.
And they allowed the industry
to grow to, you know,
I know beverage alone is like $28
billion. Dollars.
And then that's not even including
the other side of the hemp industry
which is far bigger than that.
So I think it's one of those things
where I've heard people say like
the cat's out of the bag but like
it's the industry has been growing
since 2018 to a point now where you
know there's 350,000 jobs
on the line and companies entire
livelihoods so I think my
opinion at least for the government
to allow it to happen that long and
no one to have any real issues with
it and then to kind of just it
off is kind of the issue.
Yeah, so can you expand a little
further about your reaction to this
band?
Yeah, I mean, we were, you
know, I hate to say we weren't
surprised with the way that
certain bills and
legislative decisions have happened
lately. And I was surprised
that they stuck it in the
budget bill to reopen the government
when I feel I feel like
the hemp beverage side
and the hemp industry as a whole
probably shouldn't have been
something that was their worry in
that moment when trying to reopen
the government that was shut down
for over 40 days.
But...
Clearly there was some bargaining
going on and I think the bigger
issue is the public just didn't
know. A lot of people in our
industry didn't know.
I mean it affects,
like I said, 350,000 jobs just
in the beverage industry alone for
him and a lot of these
companies that is their livelihood.
So I mean, it's billions of
dollars on the line and the public
didn't, know the companies didn't
and they did it within two days.
So when it went through the Senate,
it immediately went to the House and
that window was two
days. There's not enough time to
react and not enough time to do
anything.
And the other problem, too, is
because the shutdown was so
leveraged and it was going on for so
long, I think a lot of the
politicians were like, it has to get
reopened, so we're just going to
full send.
And it's going to affect a lot
people.
And I know that a lot of
opponents of the bill, a lot of
opponents to the loophole,
their concerns were that it was
unsafe, that it was able
to be sold to underage people,
that maybe it was a path to
addiction. What are your reactions
to safety concerns like that?
Yeah, no, and again, I agree.
Like, there is, their concerns
with the safety, their concerns
underage, we get all that.
And the big thing that we're pushing
for is regulation.
The TTB has ran alcohol regulation
for us for pre-prohibition,
so the system has worked.
And they can use the same system
that they're working
for alcohol as they can with
the hemp drive THC.
It can be the same and we
want it to be 21 plus,
you know? The safety concerns for
everything are like,
the regulation put in place would
take all of those concerns away.
We're regulated, you know, as in,
as all the FDA and
DATCP and all the other
certifications that we all have,
like those things are all there.
And that safety is
for the customer, but we're just
asking for regulation and
not a complete ban.
Because alcohol is legal and it's 21
plus and it has existed for a very
long time.
And people don't have a problem with
that. And I haven't gotten any
backlash from us selling the
products that we do on the Hemp THC
side. Zero.
I thought, you know, we honestly
thought in some areas maybe we'd
hear something. There's been nothing
but positivity and
I think once the public
fully understands where this is at,
there's going to be a lot of backlash.
So what kind of regulation would you
like to see?
I think the opportunity for states
and the federal government to make
tax revenue, they can tax it.
I mean, we're taxed on the alcohol
that we produce and the spirits that
we produced.
There's an excise tax on those.
We welcome an excised tax if that's
what needs to happen to have
regulation in place.
So I think an excized tax would make
millions and millions of dollars for
the state of Wisconsin and far more
for the federal Government.
That would allow us to obviously
allocate more funds towards things
that we all want, like education,
roads. It would make
money for the state and the federal
government, and on top of
it then it would be regulated with
terms, so then retailers then would
have to sell 21 plus.
Those things can be done.
I just think, for lack of a better
word, it was kind of lazy
on the government's part just to ax
it when they can literally do a lot
of good and make a lot money
for the states and the Federal.
So what is Eagle Park's plan
right now to deal with this
man?
There's a 365 day grace period,
so I think as of right now, we're
going to continue to sell.
We are going to, I think, bolster
as much support as we can with
the people, customers, consumers of
the products. Obviously with the
companies that their livelihoods are
at stake, there's going to be a lot
of people joining together to talk
to politicians.
People need to call their
representatives and senators, and
the word just needs to get out.
And I think the industry as a whole
is so large now.
And there are retailers,
distributors, manufacturers, all
making a lot of revenue from this
that if it all goes away, a lot
people are gonna be in trouble.
So I think there's gonna be a
massive amount of support
and hopefully lobbying power to
get the conversations to be had
with the state and federal level to
push for regulation.
And I think that's the thing is
like, no one's asking it for it to
be the Wild West.
Everyone wants things to be done the
right way and appropriately.
And we run an upstanding business.
We're supportive of that.
And I think everyone is willing to
work with them to get that to
happen.
And so, when this year period is up,
what are you hoping the outcome?
Well, I'm hoping that there's so
much on the line
that I think I'm
hopeful that I think our politicians
hopefully will see the benefits
and decide that maybe they
didn't see initially.
And I'm hopefully that I think we
can get laws in place and
regulation passed so that this
industry can continue forward.
I think the big thing that I've seen
too is just the understanding
of what our industry is and the
majority, most of our customers I
think, I've see are 40 plus.
I think the age demographic
is I think what shocks the majority
of people. I think everyone assumed
it was gonna be one demographic that
was buying these products, but it is
far exceeded any of my expectations
of the clientele.
I mean, it's across the entire
board.
Yeah, 21 plus, people in their 20s,
but then also, I would say the
majority of our customers are 40,
45 plus.
So I just don't think there's,
people need to know more about
what's happening in the industry and
the customers that are.
Using the products versus just
assuming it's one kind of person.
Yeah, yeah, and let's say
worst case scenario,
you know, added restrictions or
maybe they don't come and they
legalize or add regulations.
What happens to your business?
What do you think happens to the
industry?
Well, worst case scenario if they
ban it a year from now,
we're a distillery and a brewery, so
we have things to fall back on.
I still have to figure out how to
take 16% of our revenue and allocate
it somewhere else, so it's gonna
definitely put a massive challenge
on my shoulders next year to
figure a way to generate that
revenue somewhere else and it's
going to be a lot of stress on me.
It's gonna be far worse for the
companies who are pure hemp
companies and I think the
restrictions on top of it, they've
tightened up the tolerances for hemp
as well.
So even for like CBD products, it's
gonna make it more challenging to
produce because the tolerances are
way tighter than they were previous.
So even, for just normal CBD
products it's going to make it
harder. And I think a lot of these
companies that are solely based in
the hemp market and the farmers,
I mean, the farmers are going to get
destroyed. I mean it's 50%
of, I think it's upwards
of 50% of a lot these farmers,
hemp farmers products that go out.
50 to 60 is what I heard.
It's gonna destroy families and it's
to destroy companies.
I know a few friends who have.
These companies and it will shut
them down overnight and
you know it's their livelihoods and
these companies have existed for a
long enough time and instead of
regulation they're just willing to
shut down an entire industry and
I think in today's world economy the
way everything is feeling a bit
uneasy I think that's the worst
possible decision we can make for
our citizens to just
shut down a massive industry than
regulate it.
And you keep on mentioning that it's
like the 16% of your business,
that's grown over time.
Oh yeah, yeah, that's completely
grown over time.
I mean, it ends up being, I think,
like 16% this year, but it's
nowhere, when we started out, it was
a very small percentage.
But I think the thing is, it's
growing like crazy.
It's growing so fast.
And as the products have
gotten out there and people have
realized what they are,
more and more people keep trying
them and enjoying them, and
it's done safely.
It's done responsibly, and...
You know, we sell alcohol, so I
don't see the difference, and I
don't think our customers do either
from that perspective.
And I think it's just another
alternative for people to enjoy
a product and relax or have fun.
And yeah, I mean,
safety has not been our concern.
Like we're a responsible company,
and I think with regulation,
then there can be people with the
faith and consumers
then will have full faith
in these products.
But I know all of the people that I
know making them are doing a very
good job.
And they're made extremely well.
Yeah, so even if
this band goes through,
obviously that 16%
growth number, have you had to plan
around not having that
16 percent growth or that continued
growth?
Yeah, I mean, we're
literally right now
trying to figure out all of our
plans for what to do if it does get
banned a year from now.
And obviously, as of right now, we
are planning accordingly because we
have to plan accordingly.
And with how fast these have been
growing for us, next
year could have been an incredible
year for us just because of how the
segment has been doing.
So now, instead of looking forward
into a year where, you know,
we were like, wow, this is going to
be a great year, we'll be able to
grow. Now it's literally we
have to go into defensive mode and
our optimism is
extremely shifted and we're now very
concerned for next year.
So yeah, it's very disappointing and
it's unfortunate and I
hope that everyone can come together
and hopefully make these changes.
And what have your customers been
saying about this?
I haven't heard a single person that
hasn't been upset by the ban.
I mean, I had people coming up to me
this past weekend that were
literally saying, I can't believe
that they're going to do this.
Like no one is upset by
any of these products existing.
Um, I honestly haven't.
One person, not one
person, not a customer and there
have been anywhere where someone in
the last two and a half years since
you've been making these has said
anything negative.
I haven't heard it like not one
persons come up to me and been like,
Oh, you shouldn't do it.
Like nothing but positivity.
So I think when you have...
The masses and the majority of
the population for the products.
It's like living in the United
States of America. We should have
those freedoms to make our choices.
That's just the way it should be.
Anything else that you want to add
that you feel like we didn't get to?
Nah, I would just tell every single
person that sees
this interview and knows what's
going on to reach out to their
politicians, talk to the companies
that are making them, support them,
support if
petitions go out for signatures,
just do your part to hopefully help
everyone out and continue to push
this forward, because I don't think
it's going away.
There's a lot of legal states in
this country to say that it's not
going to happen everywhere at some
point I think is just short-sighted
and I think we should all work
together to make sure that it is
done appropriately, regulate it.
And the amount of revenue that can
come from this for the state and
federal level is, I don't know why
they would throw it away.
I think, you know,
no one's going to say no to, I'm
surprised the government would say
no more tax revenue.
Jason, do you have any final
questions? That was good, yep, all
good. All right, well, thank you so
much.