California Allows Regional Designation for Cannabis Marketing

Under a new California law, cannabis brands grown in the “sun and soil” of a city or county can be labeled with a regional designation, the Sacramento Bee reports. The law allows products to carry an “appellation of origin” label similar to those featured on the state’s wines.

California is the first state in the nation to apply a “terroir” law to cannabis and the law will likely help California‘s small, craft, cannabusiness protect their brands.

State Sen. Mike McGuire (D) said he wrote the law because smaller cannabis farms needed an edge to compete with big companies. Brands grown in the sun and soil of Humboldt County or the Emerald Triangle might be more appealing, and farmers could ask higher prices for products carrying the appellation of origin designation, not unlike in the wine industry, he said.

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