 Well, good morning, everyone, and welcome to the CPA, the Association for Contract Packagers and Manufacturers webinar. And today we're highlighting an exciting story of rapidly meeting rapidly changing market demands. Today's session is titled, In-House Compliance Labeling, where we'll explore how you can print labels in-house, save time and money, while complying with various regulatory entities. I'm Ron Puvak, the Managing Director of the Contract Package Association. Please advance the next slide. Thank you. The CPA has been around since 1992. We are the advocacy for the industry. We are looking to promote contract packaging and the use of contract packaging services while increasing the profile of our members and its capabilities. Next slide, please. Just a short demographic here about, you know, we have an RFQ tool that we use for requesting services. We get over 90 to 100 of those a month. We are growing at basically a 12.2% compound annual growth rate over five years. That number has been adjusted. So a lot of opportunities for networking and growth. Next slide. And it's just some of core benefits, core member benefits, and we will be at the upcoming PAC Expo show in Las Vegas here in about three weeks. Next slide, please. Little housekeeping. All attendees are on mute. And if you have any questions, please use the question box and we'll respond to as many as we can by the end of the webinar. This webinar is being recorded. It will be posted on the CPA website at contractpackaging.org. At the end of the webinar, you'll receive a link for a very brief survey. Please provide us your feedback. That always helps out. Now, let's talk a little bit about today's presenters. We are pleased to have co-presenters today. Let me introduce Andrew Moore, Product Marketing Manager for Epson America and Elizabeth Sinclair. She is now recently the Global Director of Marketing for Bar Tender by Seagull Scientific. Andrew has been in the auto ID industry since 2004. For the past 10 years, he's been the packaging label printing group, where Andrew resides in Southern California, and yours surfing, skiing, and playing loud rock music in a band. Awesome, Andrew. Elizabeth works within users and industry groups and sectors such as food, chemical, pharma, medical devices, retail and healthcare, helping them enable supply chain efficiencies and regulatory compliance. She has also recently served as the Chairperson of the Tracking Trace Committee of AIM, the International Industry Association for Auto ID Technology. Now, I'd like to turn it over to Andrew. Please take it away. Hey, thank you, Ron, and attendees. Thank you for joining us today. Next slide, please. So here's our agenda. We're going to quickly talk about company backgrounds. And then we're going to take a look at today's packaging label process, and then talk about designing and printing a label in-house. And we'll just show how Epson and bartender will help you do that. And then we'll look at compliance labeling tips. We've got some really relevant information, super useful information that you guys will find very useful and interesting. We'll let you know about our industry experts. We've got a whole network of experts out there that can help you after this call if you have some questions or you need some assistance with some opportunities that you're not quite sure how to get started with. And then we'll go into the Q&A. That's always one of our favorite parts. Next slide, please. Quick glance at company backgrounds. So bartender software by Segal Scientific enables organizations around the world to improve safety, security, efficiency, and compliance by creating and automating labels, barcodes, and more. And I'll just say, from a personal standpoint, it really is the most ubiquitous label design software out there. So they're really a champ. Hundreds of thousands of companies trust bartender with the labeling and marking processes that keep their businesses running. Epson, we're a provider of high quality photographic and packaging label printers. We have global operations. We have a large network of value added resellers, which we'll talk about at the end of the presentation. And also a national service and support network. Next slide, please. So let's start with today's labeling process. Typically, it starts just like this. Step one, a graphic artist would be commissioned to design some artwork for a brand owner. And that artwork is then sent to a commercial printer. And then a typical minimum order of 20,000 labels would be placed. So again, the designer creates the graphics, sends that off, and then that goes off to a commercial printer. Next slide, please. So in the second step, labels are ordered. And again, static color is laid down by a flexo press. 20,000 minimum order labels are required for an initial order. And you're going to need to inventory those labels. Now, from a cost standpoint, highly efficient. It's a great way to drive down costs. From a process standpoint, you know, there is a lead time involved. There's a lot of setup charges. And you know, an initial order can typically take about two weeks, sometimes three weeks just depending. Next slide, please. So the third step in today's process is you're going to define that entire label specific content. So there's the variable data that needs to now be applied to that artwork on that label. And that can include things like kosher and halal certification, non-GMO logos, nutrition facts panel, allergen icons and information, organic and natural logos, front of package, nutrition information, stoplight panel, QR codes for web-based consumer information. So a lot of variable content. Sound familiar? Next slide, please. And then the fourth step is that blank label, as we'll call it, or actually just the artwork itself, is then run through a thermal monochrome label printer. As a secondary step to apply that variable information, that variable content that we talked about in the previous slide. So as you can see over here on the left, we've got the label that's just the artwork. On the right, we've now applied the variable information, barcode, nutrition facts, et cetera, et cetera. So it's that secondary step there. Next slide, please. Some of you may be experiencing this. So there's a huge inventory expense and waste that you experience when you have to, especially when you have a lot of SKUs, when you have to stock all those labels. So again, you've got 20,000 minimum runs. And now you've got to stock 20,000 of each SKU. And after a while, that can be difficult to manage. Every variation of an image, color code, brand, or logo is going to require a unique pre-print. We've got that minimum order of 20,000 and any changes and that inventory becomes scrap. So if the FDA or some other regulatory agency said, we don't like the way you've done your formulations, we want you to do it this way, you've got to chuck those labels. And then, of course, the challenges of matching the pre-printed stock with the black variable data. So there are challenges involved. Next slide, please. Here's how Epson and Bartender do it. Next slide, please. So now you can print your labels in-house with, say, Bartender and Epson. So step one would be design the label with Bartender. Now you could even import that graphic art that your graphic artist had created for you from Illustrator. You could import that into Bartender and then design that label using Bartender's suggested compliance tips. And Elizabeth is going to show you a lot of that information here shortly. And then the second step is you print the label using, in this case, we're showing the Epson ColorWorks printers. Now the benefits to this are you're going to print only the labels that you need. You don't have to print the 20,000 minimum. If you only needed three, you could print three. If you only needed a hundred, you print a hundred. So you only print what you need when you need them. The majority of our users out there will actually produce finished goods and then package and label them that day and ship the same day. So the benefits to this are we reduce waste. We definitely save time and money. So as we're showing over here on the left, create that label in Bartender, send that to the ColorLabel printer, and do both processes in one step, printing the color and the variable information. Big time saver. Next slide, please. Thank you. Eliminates extra steps. So again, you're printing only the amount you need, and we're eliminating that two-step process where we've got first producing the color label and then running that through a monochrome label printer. Now we're doing all that in that one step. So the advantages to printing in-houses, again, we can make changes on the fly. So for many of you, you might have customers who actually, again, are being told to reformulate a supplement or some other good. They might have a seasonal. So here we're coming into the fall. My head always goes to the Pumpkin Spice Triple Latte. So there's all sorts of things, reasons for seasonal labeling. So compliance changes, branding. As the marketing department goes rogue and creates a new brand and says, hey, this one has to go on the next order. You have a way to change that on the fly. We mentioned formulation changes, a new SKU. So perhaps the retail partner has said we love the single pack. Now please produce this in a five-pack, a 10-pack, a 25, and a 100-piece case quantity. SKU proliferation. That's another headache that you can solve with in-house labeling. Again, customer updates. So you might have a customer who says, hey, my customer requires some unique identification, branding, what have you on this label, this particular order. You have a way to help your customer. Private labeling. I'm sure many of you are engaged in private labeling. So this is a great way to do especially short runs of private labeling. And prototyping. So this time of year, especially, you might have a lot of prototyping that might be involved and it might be a short run, only a pallet quantity. This is a great way to do that with a nice high-quality color label. Next slide, please. So something to think about is that in the packaging world, the pigment-based inks are usually the ink de jure in terms of those types of goods that require something that will be scuff-proof, perhaps moisture-resistant, what have you. There's a couple of different blends of inks. They might be dye-based or pigment-based. The dye-based might have a slightly higher color resolution. However, those will typically disintegrate more quickly, especially when they might come into contact with moisture. They might get scuffed, et cetera. The pigment-based inks are very durable. So that's something to think about is if you're going to be selecting a printer, be looking at one that has at least a pigment-based ink. Next slide. Now I'm going to turn it over to Elizabeth. She's going to really go into the details on compliance labeling, give you some tips and tools. Good morning, everybody, at least it's morning here on the West Coast. I guess it's morning on the East Coast as well. I'm really happy to have the opportunity to join you today. I'm going to talk a little bit about the regulations that your customers are struggling to meet, and I can tell you that in the food industry and in the cannabis industry, which are the two that we're going to cover today, there is a great deal of struggle. There was a report issued this year by the World Economic Forum. It was titled, Improving Traceability in Food Value Chains through Technology Innovations. The report explored traceability's ability to improve the safety, efficiency, and sustainability of food and food supplies, but it also said that simply applying new technologies for traceability within food systems would not necessarily provide the desired outcome, which is collaboration with trading partners and technological infrastructure, harmonized standards, and proper support for food producers, processes, and logistics providers, also packages. Not pointing any fingers here, but it also says that the food industry is super slow to adopt new technologies, so they're behind the curve. They're facing consumer and regulatory pressures that make manual processes unsustainable. The good news is that you, the contract packages, and by using automation and print-on-demand technologies like Epson and bartender, you can help them. Next slide, please. With that in mind, consider this. In the U.S. alone, more than 128,000 people are hospitalized every year as a result of a foodborne illness, and that's according to the CDC, 3,000 people die. Beyond the obvious public health issues, companies have another strong incentive to comply with food safety regulations. The cost of a food safety recall can be significant. Deloitte estimates that in the U.S., product recalls cost companies an average of $10 million per incident, so not trivial. And approximately 80% of small to mid-sized businesses fail within three years of a product recall. They attribute this not only to the cost of the recall, but also to the loss of sales, reputation, and brand value. And the greatest single cause for food recalls in the U.S. is not pathogens like E. coli. It's labeling issues. Next slide, please. Let's look at some data about food safety incidents. This pie chart comes from FDA's latest reportable food registry annual report. And you'll notice that the incidents that FDA considers serious enough threats to public health to record include those pathogens like salmonella, listeria, and E. coli, contamination by drugs or foreign object, but most significantly undeclared allergens. Of all the primary incidents reported to FDA, undeclared allergens comprise the largest segment. They account for 47% of all primary food safety incidents reported to FDA, which is approximately twice the next highest category, and about equal to all of the rest of the categories that FDA tracks combined. The statistics are parallel in the EU. So we have a problem, but the good news is we can help solve that problem. Next slide, please. A quick story that Andrew likes about food safety policy. There are three ways that food safety principles become practice. They are regulation, industry organization best practice recommendations that usually are an attempt to get out ahead of the regulators, and third, retailer setting requirements. We think that regulators are the entities with the teeth to enforce policy, but a few years ago, the product, the produce marketers association developed a new produce palette label for their produce traceability initiative. Consumers were demanding supply chain traceability, and FDA was getting ready to begin enforcement of the food safety modernization act, that's FSMA, and the produce traceability initiative was the industry's response on behalf of its members. Very few people cared enough to adopt the label format. Well, until Walmart decided in 2013 that they would not accept any palliative product into their facilities without this particular label format. Growers and cold storage providers immediately scrambled to adopt the format because who doesn't want to sell the Walmart? And now this label format is an industry standard. You see it everywhere. You see it at Walmart, it's at Costco, Kroger, Safeway, Wegmans. So we offer a pre-made template for this label and bartender, and even though everyone knows it as the Walmart label, we still call it PTI in-house back a nod to its roots. So about regulations and policy that don't come from giant retailers, each nation of Asia has its own regulatory agency and set of laws. The EU has its general food law enacted in 2002, and more recently the food information to consumers allergen labeling law. And in the US, FSMA, as you all know, is the sweeping set of reforms to earlier regulations directed at improving the entire food supply chain, which is interestingly enough the first real food safety policy enacted in the US since the FD&C Act of 1938. FSMA marks a departure from previous food safety regulations. It emphasizes preventive controls instead of corrective measures. And as most of you are probably aware, FSMA is brought. It covers things like production standards, training requirements, pest control. But what we're going to talk about today is traceability. Next slide, please. So when a collection of consumers comes down with E. coli from eating, say, romaine lettuce, the ability to quickly locate where the cow pooped in the lettuce patch is key to stemming the outbreak and preventing more illness. Current EU and US track and trace regulations require that any company that handles, produces, food, be able to track every ingredient back one node downstream in the food supply chain and every product that leaves their facility one node upstream. And in the case of a regulatory mock recall audit or an actual recall, they are required to be able to produce those data within 24 hours. That 24-hour time window for one up, one down traceability provides a powerful incentive for the transition from manual to automated supply chain tracking and on-demand labeling. If the food supply chain were binary, so one ingredient into each product, each product advancing to the same upstream node, the 24-hour window would be fairly easy to achieve. But it's not binary, and that's a challenge. The next stop for a single lot of Pollock fished out of the Gulf of Alaska is a variety of locations all over the world. It might end up as an ingredient in Surimi and in pet food and in frozen fish sticks and in canned products processed in places all over the globe, Asia, Europe, North America. And now the buzz that we're hearing isn't about one up, one down traceability. We're starting to hear a demand for full chain traceability. That's complete supply chain visibility and interoperability. Another challenge FISMA presents to manual processes is its requirement that establishments keep records of all labeling. So as a package, if you are producing food labeling, you're going to keep a record that includes the final label as applied to the product, and that's an image, by the way. The product formulation and accounting of the product's processing procedures and any supporting documentation, which FDA defines as evidence that the labeling is in compliance with all applicable regulations. Now I can't see a way for the food industry to accomplish this without print on demand technology that's enabled by automation and a supply chain that is at least at some level interoperable. Next slide, please. At a recent IFT annual meeting, Stephen Gendell, who was at the time the food allergen coordinator for FDA, said this, FISMA is the first time labeling has been considered a public health safety measure along with sanitation and other controls. Labeling has traditionally been considered a means to convey information for the food industry. This has meant information like ingredients, allergens, weight, supply chain management like tracking and tracing, but now labeling is considered a key public health driver. Next slide, please. So Jeff Canavan, who is the deputy director of labeling and program delivery of the USDA's Food Safety and Inspection Service, and yes, there is such a title. He recently spoke at a small food labeling conference. He told those of us in attendance that the most common process mistakes that result in enforceable allergen labeling errors under FISMA stem from new ingredients, new suppliers, or product reformulation, misprinted labels and product placed in the wrong package account for a significant number of enforceable incidents as well. He recommended that companies have some controls to prevent potential of undeclared allergens be based on three basic principles. First, identify. Labels and product formulations should always be cross-referenced with incoming ingredients and allergenic materials segregated into specific designated areas. The second preventive principle is prevent and control. Companies should use dedicated equipment for processing allergens. They should document cleaning procedures using checklist and maintain methods for tracking product. Note that this is another primary function of labeling processes in your business, supply chain tracking and tracing. And finally, Canavan's third recommended principle is declared. Ensure that there are systems and checklists in place for determining labeling compliance, meaning declaration of all ingredients on the final product with defined procedures for handling any labeling discrepancies that are found. Next slide, please. So I want you to know, though, that if your food customers are scrambling for tracking trace solutions, you're not alone. We hear from panic companies every day, even still, that haven't begun their transition to FISMA compliant traceability. And it's been years since it's been enacted. You need to know, though, that manual tracking processes, this might even mean Excel spreadsheets with keyboard data entry, put your organization and your customers' organizations at risk. If you can't meet the 24-hour window to provide data in the case of a recall or even a mock audit, you're in serious trouble with regulators and you've exposed yourself to civil and perhaps criminal action if someone gets sick. CEOs have gone to jail in the US over food safety incidents and in some countries, worse. So that's the stick. Here's your carrot. You can extract tremendous value beyond regulatory compliance from a well-designed auto ID and print-on-demand deployment. Traceability regulations afford the opportunity to evaluate and integrate existing processes, amplify existing efficiencies, and gain new ones. A well-deployed automation initiative provides the opportunity to standardize methodologies, examine, perhaps reorder, master data, and implement a single source of truth strategy. You can create a leaner supply chain, save time, money, and resources. With well-curated, visible data, companies have done things like optimize accounting, transportation planning, even inventory management. And the goodness from my perspective is that the world's automation technology providers like Epson and bartender have already helped medical device and pharma manufacturers meet very similar global regulations. It's not our first rodeo. We've done this before. We understand the promises and pitfalls. Next slide, please. Many companies manage a data file for every SKU shipping address or production date. As contract packages, you might manage a different file for every brand. I know that oftentimes you're producing the same product under different brand labeling and you're maintaining a different label file for every brand. That's not necessary. The truth is, you can drastically reduce the number of files you manage by leveraging the full capabilities of software, linking label templates, variable data fields to your central or master database to auto-populate the label and then print it on demand. Label software will automatically insert the correct information into the label fields at print time using business roles that you've created. It's very likely that the number of label files you have that you have to manage can be reduced to the number of label sizes that you print. So for example, one electronic file can generate all your four by four labels. I have a colleague that likes to say bartender is in every deli in America, but he's a sales guy, so I'm sure it's hyperbole. Anyway, deli labeling is a great illustration of how labeling software and print on demand is supposed to work, although this is only one of many applications of this technology for the food industry. At a deli, each product sold needs its own label, right? That includes the product SKU, its specific weight, its expiration date, sometimes allergen information, color product image, cooking instructions, maybe even recipe ideas. Using a static label with the deli clerk filling out all that information at print time would be impossible. There are too many variables. Instead, the electronic label file contains data fields that are calculated and filled from different data sources using business roles. The product's weight is pulled from the electronic weighing scale. Its per pound price is pulled from the product database. Business logic in the label file multiplies these numbers, populates the human-readable price field, and generates the barcode that will be scanned at the register. Allergen and product information is added. And finally, the file calculates the products used by date by accessing the labeling system's current date and then adding days based on perishability information in the product database. It's kind of like magic. Next slide, please. And, you know, variable data, I'm sure you're all familiar with the new FDA nutrition label. This is what it looks like in a bartender window. So, you'll notice we've got its Windows-based software. It has a familiar Microsoft Office look. Everywhere you see one of these Xs, those are variable data fields. At print time, the print operator uses a bartender form, selects the product that they're getting ready to print labels for, using a barcode scan, maybe a radio button, a dropdown menu or text box. Bartender pulls the nutrition label from a database. Here it's an Excel sheet, but bartender is a data source agnostic. So, if you're a giant company, it can be from an SAP database. It could even be from your customer's SAP database. We're able to do that kind of remote connection or Oracle or if you use Redline, Redline integrates bartender, many of the food safety softwares integrate bartender. Anyway, so bartender pulls the nutrition label from this database and sends the proper data to the printer to populate each of those Xs with the correct nutrition information. Variable data fields don't have to produce static numbers. They can be a call for bartender to generate serialized numbers or letters, or populate with text, lot numbers, production data, barcodes, or even images. Bartender includes a layers feature, much like Photoshop. Layers can house any kind of information and whether they print is turned on and off automatically, generated by the product that the print operator has selected on the print time form. And this can be particularly useful for contract manufacturers and packages who are often packaging the very same product from many different brands, right? By housing each brand's imagery, product name, and logo on its own layer, one label file can accommodate an infinite number of brands. For boutique brewers or bottlers with several products that use the same size label, the brand information can stay static on every product label. And simply by selecting the product using form fields, the proper label imagery can be sent to the printer. Next slide, please. Finally, you might remember that I said global traceability regulations require record keeping, including an image of the final label is applied to the product, the product formulation, and accounting of the product's processing procedures and any supporting documentation. By making a few simple selections when designing your label, Bartender can capture a complete audit trail, including the image of every label printed, who printed it, and when. All your labeling activity is logged, so on that day that an auditor stops by, you can cheerfully and automatically produce all the regulatory information and make that auditor go away happy. In the case of a recall or labeling scare, when time is of the essence, identifying and isolating the problem can be performed really quickly and easily. Next slide, please. Here's what everybody really wants to hear about, though, is the cannabis market. In the U.S. right now, 10 states are fully legalized for retail, 33 for medical. In 2019, I'm sorry, 2018 sales were $52 billion in 2018. 87% of those, by the way, were legal on the black market. We've seen a 76% increase in jobs. Cannabis, the cannabis industry in the U.S. employs five times as many Americans as the coal industry. Investments in the industry in 2018 were $10 billion, which is twice the amount of the investments in 2015, 2016, and 2017 combined. So the 2018 Farm Bill allowed for industrial production of hemp in the U.S., which is a source for CBD. And everybody understood, many people understood that CBD was going to be a great big deal. And so all of a sudden, there was a sudden acceleration and demand for supply chain resources, which has been good for companies like bartender and Epson, because we can help them meet these resources. But there's also a tremendous need for expertise. And I would suggest that everyone on this call consider the sophistication of the cannabis industry currently. I've been to a couple of conferences, and I work with medical devices in pharma and the food industry. And I'm used to a very sophisticated set of constituents in an industry. We go up and we lobby on Capitol Hill with industry organizations. People have, the way they go to market is sophisticated in these industries. The way they present themselves, the way they talk about themselves is sophisticated, realizing that in regulated environments, there's a certain decorum to be expected. I can tell you that that's not really happening yet in the cannabis industry. There is a huge vacuum for expertise and consultative partnerships. The way we like to describe the events that I've been to is, it's a bit of a gray ponytail special. It's still those people who are a little counterculture, who were involved in cannabis before it was made legal and legitimized. For example, I sat and talked at a conference in the booth with a law firm. This is a very reputable law firm. They know probably more about cannabis labeling than anybody else in the U.S. But their trade show backdrop was a big black hanging banner with big silver puffy letters and a green tool coming out looking like smoke. The people who spoke were not terribly professional. What this means to me and to someone like Andrew at Epson and to you is there is a huge need for expertise. The money in cannabis is not going away. There are going to be certain expectations going forward as the industry goes, gets more sophisticated. Again, there's tremendous room for contract packages, for auto ID and printing providers to really be a beacon for these companies and help take them to the next level out of the black market counterculture realm into the legitimate industry realm. When we talk about market segments, at my company, we have three different levels of product. We have the same product, but three additions. We see the small the small addition is going to be for the retailers. They're not doing a whole lot of packaging or labeling. They're doing a little bit. Growers is a larger segment, but for us, we see the CBD processors as being the ending up being the largest, most global kind of segment. So they're the ones that are going to need global integrations of their labeling software. We think of it much that market has the same feel as palm oil processors at this stage. It's going to be big. It's going to be global, and there's a lot of potential there. Next slide, please. CBD is a lot more friendly than THC to the general public. I mean, we're hearing every day we see it. We see personal care products in Walgreens and CVS that have CBD in them. One mistake that people make when they talk about CBD is they say that it's not psychoactive and THC is psychoactive. That's not true. We see a lot of people with the edibles with CBD. They're talking about it calms you. It settles your nerves. That psychoactive. What it's not is intoxicating. So going forward, you may want to consider the way that you talk with your end users as you present yourself as someone who is a growing expert in this sector about CBD and THC. CBD is going to hit a value of $5.7 billion in 2019, on pace to $22 billion by 2022, which is kind of a nice, there's a nice synergy in that figure. The data here on cannabis is provided by the Brightfield Group, which is a cannabis-focused consultancy. I would suggest that you go, if you want to learn more, cruise their website. They are an excellent, excellent provider of information, and they've really found their niche. So CBBs and CPGs is going to be a big deal. Before I started working in the magical world of barcode labeling and RFID encoding and labeling, I worked for a giant chemical company. Many of you probably work with that giant chemical company because we had a huge food industry, food development ingredient group. And one of the people that I worked with, one of the chemists that I work with has gone to be a formulator at a large, large, large soft drink company. And I talked to him at IFT this year, and he said that they've had a soft drink, a line of soft drinks that contain CBD in development for quite a while. They've got them prototype. They're ready to go as soon as the company has the executive appetite to go forward with having their product associated with CBDs. Because again, they know there's money to be made there. So next slide, please. So increasing standardization and alignment, eventually it's going to be, in my opinion, legalized federally, just because eventually every state is going to legalize cannabis, except maybe Utah. I don't know. There is a detriment to intrastate commerce to have a patchwork of regulations out there. And so eventually the federal government is going to have to step in and make policy to enable intrastate commerce. Every state has seed to sale traceability written into law. There's a software company called, well, I guess it's a cloud company called Metric. It's inventory management software. And I think seven out of the 10 states that have legalized require companies to use their registry. It assigns licensees, a unique identifier, and they have to work through Metric to make sure that the antraceability is there. You might want to go visit their website. It's all lowercase M-E-T-R-C. And you can read a little bit about what they're doing and how they're doing it. Canada and Uruguay, what did they have in common? They're the only two countries in the world that have legalized cannabis globally, I mean, federally. So I am actually doing some talks in Canada this fall to some of our resellers about cannabis. I was in Montreal last week and I had the very unique experience that at the end of a business dinner, one of the people asked everyone at the table if we wanted to go smoke, which I politely declined, but it did help me understand that we're in a brave new world. What I love about Uruguay, though, is they have a robust traceability program and it requires barcodes. So hooray for barcodes, right? And the interesting thing about Canada's labeling regulations, they used Colorado and Washington's regulations, which are the first two states to legalize retail as a blueprint for building theirs. So it's just regulations from state to state, from jurisdiction to jurisdiction. They're largely just nuances. I mean, if you can figure out, the most important consistent thing is making sure you're using CGMP as you package and then eventually, again, they're all going to be, they're all going to align. Next slide please. So packaging. The packaging rules are mostly about not making the stuff attractive to minors. These rules tend to be consistent across all states in Canada. The font has to be at least one sixteenth of an inch in height based on the uppercase K. The font can be larger. All required information has to be visible on the outside of the package. Barcodes can only be displayed once and must be rectangular in shape with no design. So none of those cool barcodes that, you know, look like flowers growing in the bars and our stems and things. And again, most of it is based around making the product really unattractive to children. You are never going to see a cartoon character on a cannabis product. That's by regulation, but it's also by common sense. Next slide, please. So what's on the retail label? What's consistent across every geography? This is all the variable data that you can use bartender to populate and then switch on the fly using Epson. So there's the cannabis facts panel, which, you know, every, every grower has to send every lot out for testing. So this is going to be different on a skew from batch to batch, right? So you have to know how much THC, how many, how much CBD is, and there are different cannabinoids that I've just recently learned about beyond CBD. And we're going to start hearing more about those as well. Then there's the licensee, the contact information, expiration date, package, lot, and batch weight. There's branding. There's the product name. There's a barcode for traceability and their warnings. The warnings are very much like the warnings on cigarette packs. The universal symbol is really interesting. Next slide, please. Every state has its own universal symbol and that's because you can't, you can't transport cannabis from California to Oregon to Washington. It has to stay within its jurisdiction. And this is a way for states to immediately recognize and retailers that it's been packaged for sale in their state. So with that, that's my quick primer on cannabis labeling. Andrew, you're up. Next slide. Thank you, Elizabeth. Great information. Okay, so we included here what we would consider next steps. Next slide, please. We actually have a case study that both companies share, say a food establishment up in the Bay Area in Northern California called Dish-Dash. And they are a chain of restaurants that also has a wholesale bakery operation. So they wholesale Mediterranean baked goods to other restaurants, to many other companies out there. So they had to have a way to do in-house labeling. So you can go to that link. If you go to the link there, it's basically epson.com forward slash colorworks. And you can just scroll down and see case studies. But they can show you how it's done very simply in a very low profile manner. It's really a complete desktop operation. It's nothing large-scale or anything. So you get an idea as far as footprint, as far as the workflow, et cetera. Next slide. We also have, as we mentioned, a network of value-added resellers. And these resellers are skilled in integrating bartender. And you've kind of heard a lot of what bartender does from Elizabeth here just now, along with our printer. So if you're interested and you want more information, we can have one of them reach out to you and just fill you in on more information that we weren't able to mention here. Next slide. You can also get some samples of this information. So we've just had some boutique label sample kits created. If you'd like to get one of those, you can raise your hand, send those to the CPA, and they will forward that request to us, and we'll send out a small packet of the types of labels that you can get there. And next slide. So that's really the end of our presentation. I think we still have a few minutes for Q&A. So we do, Andrew, thinking we've got a bunch coming in. That's pretty interesting. Let's get to them real quick. One of the first questions are co-packers of cannabis and CBD products subject to FISMA compliance rules. Elizabeth, that probably bounces to you. Yes. I mean, if you are packaging edibles, that qualifies as a food, and yes, you are obligated to meet FISMA packaging rules. Okay. And here's one again, same line. Please re-verify the CBD is considered psychoactive. First time I've heard CBD identified as such, has FDA stated this? FDA is treating the cannabis industry like a hot potato, which is why the advice that I like to give to my customers is to tell them, you know, the most important thing you can do is make sure you're following CGMP practices when you manufacture. They're not saying that. However, the science does. If you talk to cannabis chemist, the pharmacologist about the difference between CBD and THC, they're both considered psychoactive. CBD, again, is not intoxicating. And this is one of the great concerns of the industry is that people will think that CBD isn't psychoactive, and they'll give the edibles to their children. And it really is. I mean, there are certainly really interesting applications around anxiety, you know, it calms anxiety. And even for children, no one is willing to commit to doing a CBD study with pediatric patients yet, understandably so. But it certainly is psychoactive through the oral route. Now, topically, it isn't, but through the oral route, it is psychoactive. Very good. All right. Here's another one. Who's responsible for making sure labels are compliant? The copacker or the company that the copacker represents? Yes. So the answer there is, I would imagine for you, the brand owner will be largely responsible for making sure that all the entities they need on the label are compliant because, you know, it's their brand that's in question. However, FDA doesn't care. They care about the entire end-to-end supply chain. And you're in that as contract manufacturers. So you're exposed as well. There are risks and you're exposed to regulatory issues and legal issues if somebody gets sick and the label isn't correct. So it's really important that you have a system to vet the information that you're getting from your brand. And if the information is off or incorrect or it's not complete enough that you go back to the brand and say it's not just you who is exposed to liability here, it's me too. And we have these requirements for the labeling. So you're showing us applications of pressure sensitive labels. The next question is talks more about other substrates such as shrink, heat shrink, sleeves, materials, you know, PETG, PVC. Are there other materials other than pressure sensitive that can be used today? I'm going to take a quick shot at that one. So we also have a full-sized commercial press that does all or most of those materials mentioned. So there is another way, you know, to take that route as well. We do other substrates. Is that from a quantity standpoint in the same ballpark, you know, smaller quantities or is it got to be rather large? A larger commercial press is a pretty big jump. Okay. So you would be talking about a much larger production levels. Okay. This one has to do more with the workforce. You know, what workforce skills are needed to implement and operate, you know, your systems? Well, from our standpoint, it's there. Okay, there are two things that happen with our software. There is the person in the organization who designs the label, connects it with the variable data fields, maybe regulatory is involved, IT is involved, getting that done. That is a more skilled individual. I mean, the good news there, though, is that we do have a, we have a network of resellers who understand our software and how to integrate it with their data. So generally, when you buy, we don't sell direct. We only sell through our channel of resellers. So you buy it from a value added reseller who can come in and do the integration for you. They generally will do everything from, you know, get you the right Epson printer, get your software set up, create the label files you need, understand your needs. So there's a certain level of sophistication required there. For the end, for the print operator, the person that's printing the labels, that's just a matter if it's been set up properly of using a form and using a drop down box. I need to print this skew and it's, you know, it's as simple as using maybe an ATM or using Microsoft, less complicated than using Microsoft Windows for the actual print operator. I would agree with that. I would just say that internally, we actually have some special configurations of all of our different business products that are required. And guess what? We use bartender in that operation. So we do have somebody on the back end in IT designed the label content. And then we have people downstream that are operators, you know, less skilled. And that's all they do is they'll just, you know, do a print job. So Elizabeth is exactly spot on there. Okay. From your experience, what are some of the hurdles folks have had getting into this using this technology? Elizabeth, you want to go first? Yeah, I think it's cultural. I mean, we saw tremendous and rapid adoption in the pharma industry because the pharma industry is accustomed to technology. And they had regulatory pressures. Every pharma product manufactured now is serialized and has a unique code at the per item level, which required a tremendous amount of technology. I think, you know, particularly in food, it's a very fragmented industry. There aren't giant entities like there are in medical devices in pharma and automotive manufacturing, which is another one of our big regulated sectors. And so it's smaller companies, you know, and another one of the issues is if you have a palette of medical devices, that palette can be worth millions and millions and millions of dollars. So there's incentive to market to trace it adequately so it can be followed throughout the supply chain. Food, you know, you've got a you've got a palette of Captain Crunch, it's not worth a million dollars. And so people, there's been a hurdle about making that financial investment. But I mean, the truth is the financial investment is minimal. And when compared to the kinds of efficiencies and cost savings and protection against exposure from legal regulatory action, it really ends up being quite economical in the end. Great, thank you. Well, we're coming to the end of our session. Andrew, Elizabeth, I want to thank you both for presenting today. And I think we've had a great session today, a lot of useful information. And again, reminding everyone that this webinar has been recorded and will be posted up on the CPA website at contractpackaging.org in a few days. Please check back. Andrew, Elizabeth, thank you. Thank you all for attending.