Tim Purpura, Vice President Global Sales and Marketing and Jordan Andrews, Sales Manager, both Morse Watchmans, tell Security Journal Americas about the future of cannabis security.

The landscape of cannabis security

Medical and recreational cannabis usage is currently allowed in 24 US states and the District of Columbia with several additional states pursuing the legalization process to expand this $33 billion dollar industry.

According to the US Cannabis Industry Report by Grand View Research, the market is expected to rise a compound annual growth rate (CAGR) of 12.1% from 2024 to 2030.

Legalization at the Federal level takes markedly more time, which eventually will be the threshold to pass the SAFE Banking Act in congress.

The SAFE Banking Act will allow state-legal cannabis businesses to adopt traditional financial methods instead of current cash-only payment terms.

With lots of cash and products on site, cannabis enterprises are challenged to keep their assets physically secure to maximize profitability, while keeping public safety paramount to their business plans.

Security Journal Americas sat down with Tim Purpura, VP Global Sales and Marketing and Jordan Andrews, Sales Manager for Morse Watchmans to discover what physical security needs look like for the evolving cannabis industry.

What are some of the main considerations for cannabis security?

Tim Purpura (TP): As the recreational and medicinal cannabis industry grows and becomes legal in new states, legislation and regulatory compliance will evolve, change and vary state by state.

To meet regulatory compliance mandates, cannabis entrepreneurs need physical security technology to ensure business viability.

Also, it is imperative that cannabis operators develop a master security plan with a strong security program that keeps employees trained and law enforcement informed to reinforce public and enterprise safety.

Jordan Andrews (JA): With an abundance of cash and products on the premises, strong physical security measures are essential to ensure its safekeeping.

Currently, video surveillance is required for licensed locations in legalized states.

When legalization occurs at the Federal level, that list of state mandates will grow, as well as the need for additional security technology to meet regulatory compliance.

How can key and asset management solutions be deployed to enhance cannabis security?

TP: Incidents of theft at cannabis facilities are often caused by insider employees.

If keys to storage areas and cash vault access areas are not accounted for, there is no way to determine who last had the keys when investigating security incidents.

Electronic key control systems secure and track all keys with audit trail reports instantly available.

The system is based on permissions and allows only authorized users to access their specific keys and no one else’s.

JA: Adding key control improves operational efficiencies by assigning authorized users to all the keys on the premises.

Every key transaction is recorded, showing who removed and returned keys, including the day and time.

The audit trail reporting from the key control system provides superior forensics for investigating security incidents involving theft of cash and products, which ultimately improves cannabis enterprise profitability.

What are some of the benefits that these solutions can bring specifically to cannabis security?

TP: Key control provides secure asset management for keys, cash and product, and reduces the potential for insider and outsider security incidents.

Criteria can be programmed into the system, so keys can only be withdrawn by authorized personnel at specific times and even on specific days, which is ideal for around-the-clock shift changes.

When a key return is overdue, notifications inform supervisors so action can be taken immediately to identify the individual who last removed it from the system.

JA: Key control adds accountability among employees.

When there is a clear security plan with a key control policy in place that employees must follow, there is a significant reduction in security incidents.

When keys are locked away in the key control cabinet and are not allowed to be brought home by employees, keys are minimally at risk of being copied, misused, lost or stolen.

There is added productivity as well because employees are no longer looking for missing keys.

Do you have any key examples you can share?

TP: The cannabis industry is a newer, yet rapidly changing and evolving market.

Although we currently do not have a key control system installed in a cannabis facility, in time that will change.

We believe that key control systems will eventually be required by either state or federal mandates to protect business profits and ensure safekeeping of products to protect the public.

This is similar to how regulatory compliance for casino and gaming operations evolved.

Many decades ago, key control technology was not frequently used as a method of security for casinos.

Fast forward to the present and our key control systems are in practically every casino in Las Vegas.

This is all due to security and compliance mandates at the federal, state and tribal level that require casinos to have a key control policy and a key security system.

JA: Take a look at our website and read our case studies.

The same key control security benefits apply to every market sector we reach, including cannabis.

We service many vertical markets including educational campuses, hotels and corrections facilities.

These sectors have many regulatory and compliance mandates because public safety is always a concern.

Our customers love the peace of mind they have knowing that security is improved through key control.

Even if cannabis enterprises invest in a smaller, one-module key control system to manage a smaller inventory of important master keys now, that will immediately help to protect cash and product assets, which will noticeably reduce theft and positively boost profit margins.

What will the future look like for cannabis security?

TP: In such a relatively short period of time, cannabis has already become a billion-dollar industry and it is still rapidly growing.

In just a matter of time, I predict there will be exponential needs for additional security technology systems such as key control.

JA: The cannabis industry will continue to be legalized in other countries and the need for security technology systems for cannabis enterprises will grow globally as well.

Anything else you’d like to share with our readers?

TP: Over time we will experience AI’s evolving impact on cannabis enterprises.

This will mean greater efficiencies in product production and protection, inventory management, customer preferences and certainly, more sophisticated security solutions.

JA: AI-produced security technology systems are rapidly rolling out on the market.

Our intelligent inventory management key control systems at Morse Watchmans will keep pace with new technology enhancements that will provide even more robust features and benefits to protect cannabis assets and other enterprises that align with our vertical markets.

About the company

Morse Watchmans has been a trusted provider of security products since 1882.

The company has evolved alongside technological advancements to become the inventor and the global leader in electronic key control systems for a variety of industries, including hospitality, education, casinos and corrections.

This article was originally published in the January edition of Security Journal Americas. To read your FREE digital edition, click here.