Adam Grossman had been looking at the cannabis business from an investment perspective when his father developed a back condition that left him bedridden. First in the hospital and then in hospice, his father continued to deteriorate. Out of desperation, Grossman worked with a friend to create a strong cannabis balm at home using coconut oil and a crockpot. Working the concoction into his father’s back helped him to be able to get out of bed. “He lived another two years,” said Grossman.
The experience “was incredibly empowering,” said Grossman, “and I began to pursue the creation of the balm as a product.” This journey led him to partner with Guy Rocourt who is serves as chief product officer.
The co-founders’ company, Papa & Barkley, now sells a “professionalized version” of that balm and other cannabis-infused products said Grossman. They employ 75 people and Grossman says the company is growing at about 15% per month, with sales approaching one million dollars per month. Head offices are in Los Angeles, manufacturing takes place in Eureka, and distribution goes out of Sacramento.
Grossman says his past experience as an entrepreneur focused him on teamwork and partnerships for his current endeavor. In his most recent business venture, Grossman purchased dental practices and integrated them to achieve economies of scale in accounting, marketing, etc. “The key to successfully integrating new companies was to establish trust and strong relationships; demonstrating a positive corporate culture from day one,” he said, by listening to concerns of new employees and partners, and being part of the community.
He says he brings that same practice to the cannabis industry, looking for the best employees and partners and keeping them “motivated and empowered.”
Those partners include the farmers that Papa & Barkley buy from as well as local governments. “Guy spends a lot of time in Eureka, where our processing facility is located, and works closely with local farmers we buy input products from. He also works closely with the city and local community to make sure we are being good partners and members of the community,” said Grossman.
“We are focused on executing in California,” said Grossman, because it is the biggest market in the world and growing. The Papa & Barkley business is complicated, optimizing and automating production on existing products to keep up with growth, and creating new offerings at the same time.
In addition to California operations, Grossman is looking to Canada as a potential new market and is launching a Colorado based business this summer. Papa & Barkley Essentials will produce a CBD-only version of some of the company’s existing products.
The complexity of the industry requires “teaming and communication – lots of fire drills and quick pivots.” said Grossman. A current all-hands-on-deck event was spurred by changes in California’s regulations that now require each of the company’s individual products to be packaged separately by July 1. “We are working multiple shifts and weekends full time to remain fully compliant,” said Grossman.
The serial entrepreneur has advice for others starting out in the industry: “Find great people! The cannabis space is inspiring, and people want to be inspired,” he said. Equally important is implementing a day-to-day management system of goals, how-to’s, and feedback that becomes a common language and provides structure to deal with the myriad of issues that arise, he said. “This is very much a team sport.”
