Where Did My Cannabis Come From?

CannaProve Inc.
Aug 1 · 3 min read

Ever wonder, what exactly is in the cannabis product you’re consuming? If you think it’s 100% pure and organically grown, you stand a good chance of being wrong. The reasons behind that are varied including:

  • Contamination of product from mould or mildew that wasn’t reported;
  • Unintended chemical contamination through either “blow-by” or water table contamination;
  • Pure product mixed with other products of unknown origins;
  • Out and out fraud.

Looking at the labelling on the package gives you some idea but it doesn’t confirm that it was made at a reputable place and it really is what it says it is. In this day and age, where one revelation of bad processing or completely fake products can go viral and destroy your brand, isn’t it worth having some insurance?

“The consumers’ perception of counterfeit products have a negative effect on the consumer perception of brands. Both the consumer’s brand associations and how consumers perceive the quality of brands are affected by counterfeit products.” — Cademan, Henriksson & Nyqvist, Linnaeus University, 2012

In the recent past there have been multiple studies showing that CBD products are often not what they are supposed to be, often with the products containing virtually no effective ingredients with the US Food and Drug administration issuing a number of warnings.

Clearly the “clean” brands are being affected when false or counterfeit products are in the market. One recent study found that 47% of brands were losing revenues because of these practices. According to research by firm IP Watchdog, almost half of brands are losing revenue due to counterfeiting. We’re not just talking about tiny amounts of money, either: one in three brands said the loss in sales equates to more than 10 percent.

“The amount of total counterfeiting globally has reached 1.2 Trillion USD in 2017 and is bound to reach 1.82 Trillion USD by the year 2020” — Global Brand Counterfeiting Report, 2018

There is a clear course of action for these brands: provide full-chain of provenance to all parties in the supply chain and tie this to the packaging to increase the brand confidence.

How would this work? For each product produced, an immutable record of its production, distribution, etc. would be recorded on a blockchain backed solution and tied to previous steps so that fraud during the processes up to retail are protected. Once the product(s) are shipped to the end sale point, the packaging becomes very important and any special identification is tied to the provenance record. A process step would be that each end sale point (retail or on-line shipping location) would be required to scan the unique bar/QR code so that any product after this event is either tied to this location and time, or if not, it is identified as counterfeit. Counterfeits can also be identified if a product is returned out of sequence or at a different location that is logical based on the provenance.

The benefits of a more secure supply chain provenance solution are increased revenues, decreased counterfeit returns, better brand value and, ultimately, higher stock price or brand value.


About CannaProve, Inc. — CannaProve is the recognized leader in solutions that empowers trust and knowledge across the global cannabis industry. CannaProve was founded on principles of improving life quality through the adoption of cannabis and all its derived health and wellness benefits. CannaProve proprietary software platforms offer a user-rich, simple to implement experience that enables cannabis supply chain participants to be agile and responsive to turbulent markets, while capturing maximum value. To learn more, visit www.cannaprove.com.

CannaProve Inc.

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Recognized leader in solutions that empowers trust and knowledge across the global cannabis industry.

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