The Drive, Ep. 21: Lucas Nelson — Group President of Bud & Mary's

In the twenty-first episode of The Drive, presented by the West Des Moines Chamber of Commerce in partnership with ITA Group, we sit down with Lucas Nelson, Group President and CEO of Bud & Mary's.

Transcript

SPEAKER_01 0:00

Welcome to The Drive, your commutezed podcast powered by the West Des Moines Chamber of Commerce and ITA Group. In the time it takes to get across the metro, you'll get fresh insights from Iowa's top leaders, CEOs, innovators, and change makers who are shaping the future of business. I'm your host, Catherine Harrington, and each week we'll explore leadership, loyalty, and the big ideas that keep our region moving forward. Hello, everybody. Welcome to a wonderful episode of the Drive Podcast. We're so glad that you're here. Today I am so excited to interview Lucas Nelson, who is president of Bud and Mary's Cannabis in Des Moines. So thank you, Lucas.

SPEAKER_00 0:43

Thanks for having me.

SPEAKER_01 0:43

I'm so excited you're here today.

SPEAKER_00 0:45

Absolutely, me too.

SPEAKER_01 0:46

This is amazing. So tell us about Bud and Mary's cannabis and all the great work that you do.

SPEAKER_00 0:51

Of course. Bud and Mary's Cannabis is our family-owned and operated cannabis company. We're based right here in Des Moines. We do touch five other states. But we really got our start here in Iowa's medical cannabis industry, and we've been really proud to be a part of it from the very beginning.

SPEAKER_01 1:08

Oh my gosh, how did that journey start for you and your family? That's pretty neat.

SPEAKER_00 1:13

Yeah, so we really had the vision that when the state passed this program almost a decade ago, we wanted to contribute. We wanted to be a part of making impact with these molecules in this plant. We obviously have strong family history with Kemen Industries of extracting plant molecules, turning them into something else, and we felt like we could bring a lot to it. So we applied back in 17, we won the license, we got it off the ground in 18, and we've been on the journey ever since here.

SPEAKER_01 1:41

So what does that mean when you win the license? What does that actually mean?

SPEAKER_00 1:45

Yeah, so uh here what it meant was that we embarked on a construction project to get our facility, which is just a couple miles away on the uh the southeast side here, to get it ready to grow cannabis and then to extract and formulate it into the whole host of products that we manufacture today. Uh during the same period of time, we also applied for and were fortunate enough to win two of the dispensary licenses that the state authorizes. So we've got one in Sioux City and then one here in Windsor Heights serving the the Des Moines Metro. So yeah, it it it was a lot of work to get ready to go for the state's mandated December 1st deadline in 2018, but we hit it the night before, so we were ready to rock and roll. And uh yeah, off to the races since then.

SPEAKER_01 2:31

That's amazing. Tell us about your state-of-the-art facility, which I had the pleasure of touring. Thank you for the tour.

SPEAKER_00 2:36

Absolutely. Uh so we really invested a lot to make sure that what we can do is create the exact same consistent experience for our patients. Folks in Iowa that qualify for the medical cannabis program are dealing with some sort of chronic pain or they've got cancer or some other type of debilitating condition. And so one of the things that's really important to us is that the experience and what patients are getting from the products are consistent, are the same each time. So to do that, we've got to control the environment, we've got to make sure that our plants are healthy, that we can, you know, monitor things like the temperature and humidity, and that when we go forward with extraction, we're able to get the same molecules out, that we're able to purify it and then formulate it consistently over and over and over again. So it's taken us a little bit to uh, you know, make sure we can do that, of course. We've learned a lot along the way, but that's our our mission and our goal at the end of the day is to make sure that our patients are getting the best and the safest product possible.

SPEAKER_01 3:35

Wow. And so I know you're well rooted in technology and science, right? So tell us a little bit more about that. I when I went to your website and when we've we've been talking, that's really at the core of what you do. So tell us more about that.

SPEAKER_00 3:48

Yeah, it really is. Um, you know, I'll step back. Bud and Mary's is named after my grandparents and um Bud Nelson and Mary Nelson. My grandparents founded Kemen.

SPEAKER_01 3:59

Locally famous.

SPEAKER_00 4:00

Locally famous.

SPEAKER_01 4:01

If you don't know, look them up, y'all.

SPEAKER_00 4:03

Yeah, 1961, right here uh on about the same site. And at the core there is understanding what a molecule could do and what benefit it might bring to a farmer or to someone making pet food or to someone making something for human food. And so that basis is really what we tried to drive our business from. Cool. We wanted to understand, you know, what can THC do? What can it not do? CBD, what is it gonna do, what is it not gonna do, what you know, risk profiles and things might that mean for our patients? And if we understand that, then we feel very confident that we can get the best experience for the most amount of IOINs possible. So understanding it at that molecular level is key. Um, and into the future, if we can continue to unlock and and research and hopefully find different uses for these molecules, we think we can bring all sorts of new solutions to um to the world. I mean, you know, that we don't very often have a plant that is entirely new and it really hasn't been researched. Obviously, this plant has been here for thousands of years, but it really hasn't been researched that much. So we're really excited to hopefully embark on that journey as things continue to change uh around cannabis into the future.

SPEAKER_01 5:16

So, do you have patents then that you're working on? We do. Okay.

SPEAKER_00 5:20

We've got a couple different things. So we've got some formulation patents. Um, for instance, our water-soluble powder is patented. That's a product called the Mix. It's available here in Iowa, it's available in our Colorado market too. But we've got some big visions as well. Um, we've got a PhD researcher that works for us out of our Colorado location. Um, but one of his big focuses is on um dementia, neurological diseases. What can cannabis do? What can some of these cannabis molecules do to either slow the onset of some of those um neurodegenerative diseases, will they be able to prevent it? Obviously, we're in no place to make those types of statements at this point. However, it's a hypothesis we have. And, you know, um Alzheimer's and dementia have personally affected me and and my family. Uh and if there's anything we can do for a disease that doesn't have a cure, we want we want to be a part of that solution.

SPEAKER_01 6:13

Wow, that is such a great story. How far into the future, if you had to guess, would there might be some good research that says this works?

SPEAKER_00 6:25

Yeah. You know, there's uh there's a movement right now. Um maybe folks have seen it about rescheduling medical cannabis, and it has uh bumped into some lawsuits and things, but at least that we're on a path there that we haven't been on before. If it really does stick on Schedule Three, which you know potentially that could be kind of locked in this year, we might be talking within the next decade that we're actually able to realize uh a result from some of the scientific and some of the um scientific discoveries or some of the research that we'll we'll be embarking on. So um I'd love to to predict a specific date, but I mean it's very plausible nonetheless that within the next decade we might we're we should have a lot more info about what these molecules can do and all the potential benefits that they might have for people.

SPEAKER_01 7:13

That is so so neat. So I love to ask this question because AI comes up in every conversation with every CEO, every leader. So are you using AI at all to help propel you a little bit faster in that? We are.

SPEAKER_00 7:25

Our industry feels like it's not, you know, uh it's not years, it's decades behind uh most others. But nonetheless, there's some really interesting uses, really just across efficiencies for our business, probably similar to what a lot of people are are able to recognize. Um, but also trying to have it help as much as is possible with um, again, we've got a broad plant with more than 400 different molecules in it. What pathways could we potentially turn on and off that might be able to help a patient or to help deal with a particular disease? It could be really, really useful in those types of settings. Um again, there's not a ton of background out there in the world for it. So we are kind of charting this course as an industry on our own. Could you where AI can help there, um, and again, where it can make day-to-day operations a little bit more efficient, hopefully ultimately helping patients maybe be able to recognize hey, this is a benefit I could get versus this is something to watch out for, making that more accessible could be really, really key as we move into the future there too. So I think it could be it could be bringing a lot of potential to our industry.

SPEAKER_01 8:35

So for patient you mentioned patients a lot. Um what are some of the uses that people have had a real great success story with from a patient side?

SPEAKER_00 8:46

Yeah, yeah. I think number one, what we see here in Iowa is chronic pain. Okay. This pain might be brought on by a condition, it might have been brought on, you know, an accident or just daily life has worn you down like it has for all of us. Um we see a lot of patients, it's the number one um condition that that we see inside our dispensaries that are dealing with some sort of chronic pain condition. And you know, maybe it's keeping you up at night, maybe it's preventing you from doing something at work or from you know doing something with your family. Just giving that little bit of pain relief without some of the side effects that other painkillers can have, that's where we've seen the biggest benefits. But we've got really interesting stories from you know people that have dealt with MS, um, and maybe it's helped the the tremors and some of that those symptoms. We've had folks that have had really difficult time eating because of of nausea or something else from a cancer treatment, and that this has helped them get that appetite back. So there's uses across all conditions uh or nearly all conditions that um that are permitted here in Iowa. And so, you know, if you're curious, it's always worth the discussion. It's always worth reaching out to to us and hey, would this benefit? Would this help? Is there a path there? Um, which is one of the coolest parts about being in the industry and this these molecules. Yeah. Um some of the stuff we've seen over the decade here is just it's very rewarding that we've been able to be a small part of people's journeys.

SPEAKER_01 10:15

Do you know about how many patients total you've served across all of your different states and everything?

SPEAKER_00 10:20

You know, um I mean it has been so Iowa right now has about 18,000 patients total. Of course, those numbers have changed over the course of time. I think in this state, um, you know, we're probably double to triple that over the decade that we've been able to serve. That being said, I do think there are a lot more Iowans we could potentially benefit from.

SPEAKER_01 10:39

That's why we're doing this, to learn more about how we can help you.

SPEAKER_00 10:43

Yeah, amen. Um but yeah, it's been very rewarding that we've been able to make that impact.

SPEAKER_01 10:47

So you have three lines of product families and many, many, many different products. Tell us a little bit about those lines of products if you can.

SPEAKER_00 10:57

Yeah, so uh like for instance, right here in Iowa, um, we've got our batch line of inhalable products. So um predominantly those are in the vaporize category. Those are gonna be for people that are dealing with acute pain, maybe need something with really quick uh relief, you know, because their condition brings on something painful, for instance, yeah, in the moment. But we've also got our new O line that has cream and has tablets. Um for instance, the tablets are gonna be a little bit slower release, but they're gonna last a little bit longer. Um and then I I mentioned the mix earlier, but the mix is a really unique product. Again, water um dissolvable powder that has a THC loaded right into it. So if there are patients who maybe need to be able to consume something as a as a liquid, that's an option for them. If you know there's some other um issue with consuming uh an inhalable, maybe, or even swallowing a tablet, maybe it's easier in a you know putting type form, the mix can mix right in there with that. So very, very versatile product uh there. And again, one we're very proud of.

SPEAKER_01 12:03

Oh my gosh, so neat. How many employees do you have?

SPEAKER_00 12:06

So across the company, we're just under 120. Okay. Um we've got about 50 right here in Iowa, uh, many of which are located at either our facility on the southeast side or out in Windsor Heights.

SPEAKER_01 12:16

You've grown so much. I remember doing a tour way back when, and I think it was like three people or something like that.

SPEAKER_00 12:22

So we started with about three, and I think we were our first year, maybe had six total. So it's grown a lot since then.

SPEAKER_01 12:28

That's amazing. So, where do you see your company in the next five, 10, you know, 15 years? Where what's your big vision for your future?

SPEAKER_00 12:37

You know, just like Kemen, we take a very long-term view of wanting to make an impact on the world and on the community around us. Uh what rescheduling and some of these other legislative and regulatory changes may bring, who knows? But we know that because of our focus on science, because of a base and wanting to understand these molecules, we are going to be here in some form or fashion looking to transform the folks that we can serve. Um so whether I think that will continue to be in product delivery, that we'll have end consumer products for people in the medical recreational side, depending on you know how all that ends up shaking out. But like Kemon in the ingredient manufacturing world, we might also be producing some ingredients for the broader cannabis world. Um, we do believe strongly that THC, CBD, these molecules inside the plant have good uses, um, of course, when used correctly, and we want to be a part of this for decades into the future. So Butter Mary's isn't going anywhere.

SPEAKER_01 13:36

Oh, so exciting. And here you are in Des Moines, Iowa. Love that so, so, so much. So tell us about your um, you're very, very devoted to the community. You work a lot with the community, talk about some of your favorite nonprofits that you'd like to partner with. Absolutely. We could probably list a million of them, but but highlight a few of them for us.

SPEAKER_00 13:54

Oh, of course. So I serve on the board at Easter Sales Iowa and just couldn't be more proud of what that organization does. Um it's such an effective leadership team. The way that they shepherd and steward every dollar that comes into the to the organization, 93 cents of every dollar is spent on programming. I mean, those are making direct impacts on Iowans. And I think one of the things that I have learned even serving there is just how invisible some of the the um conditions and the things that people are are living with or dealing with might be to the the naked eye, and yet um Easter Seals is right there helping to make sure that they're living empowered lives. Um going out to camp, camp sunny side and uh in Des Moines is just an incredible experience and gives me the chills thinking about it each time we do. Um but again, a place that is just it's so inclusive, it's so empowering for folks that are living with disabilities, um, and and really I think serving still unfortunately uh a completely unmet need in central Iowa. So they've got some brain health programs that are are newer and delivering a new benefit to the community that we didn't have before. Um and whether it's you know working in rural communities too or or helping those folks right here in Des Moines, they're really truly making an impact. And again, it's really fun to be a small part of it and um just helping to to again serve those Iowans that uh that just need a little boost.

SPEAKER_01 15:20

That's amazing. So you are a leader, incredible leader, you've seen this company grow. What's your legacy that you want to leave as a leader in the community and and the world?

SPEAKER_00 15:30

So you know, I really draw the inspiration right from from my grandparents and and from the the legacy they have passed on. Yeah. Um they wanted to make an impact around the world. Yeah. And they knew that they were going to have to run a really strong and and successful business to do so. But what they remained focused on at the end of the day was a customer that they could serve that was going to help, you know, feed the planet or was going to help the planet be a little bit healthier or solve some other um uh problem that people were facing. And so here we've translated that into we know people have um, you know, chronic uh pain and some of these other conditions that they're struggling with, that there maybe there isn't another good solution for them, or you know, surgeries or other medicines haven't worked, we want to be able to offer another tool in the tool belt, right? Another potential option to help them live a better life. So if we're able, if I'm able to help make a small impact that way, it's worth getting up out of bed every morning.

SPEAKER_01 16:32

That's amazing. And you're in four states right now, is that right? Five states. Five states, okay. I can see is your goal maybe to be in in all all the states?

SPEAKER_00 16:40

Our goal is absolutely to be a national brand, um, to reach all sorts of folks across this country. But just again, just like our uh just like our inspiration here in my grandparents, they maybe moved internationally earlier than you would have thought. Uh maybe they should have uh decades ago. We want to be able to serve the entire world. No, not everywhere is on board with cannabis. Um, but nonetheless, that's the type of vision we we have for ourselves.

SPEAKER_01 17:05

We can't buy stock yet because you're not traded on that. Not yet.

SPEAKER_00 17:09

And one of the things we we value so much is being that family owned.

SPEAKER_01 17:12

Family owned, yeah, which is what an incredible legacy.

SPEAKER_00 17:15

Indeed.

SPEAKER_01 17:15

Oh my gosh. This has been so much fun. I have a million more questions, but this is so great. Find out more about Buddenberry's cannabis online. Lucas, just incredible what you've created here in our region. And and you've got a huge workforce now and growing and growing, and so thank you for all that you do for to help people and giving back to the community and you and your legacy. So it's incredible. So thank you. I'm so glad you were here with us, Lucas. Thank you so much. And thank you all for listening. Do check out Lucas Nelson and Bud and Mary's Cannabis online. And we appreciate you so much. We appreciate Bud and Mary's Cannabis. They are an investor of the West Des Moines Chamber of Commerce. So thank you all so much and have a wonderful West Des Moines day.

unknown 17:56

Bye.