NOTHING ALIEN ABOUT IT
What We Learned from Higher Exchanges' Talk with Ted Lidie from Alien Labs
When one of the leaders of cannabis’ top brands talks, you listen.
Truth is, I’ve been listening and sharing ideas with Ted for years. First as a consumer chasing the early Alien Labs (“AL”) and Connected drops post Prop 64. And now as a trusted colleague across multiple markets, supporting initiatives that actually matter.
One example: AL and Zig-Zag were among the first national brands to sponsor the NY Grower’s Cup in 2022. That’s how I got to know Ted personally, and we’ve been sharing ideas ever since. I could talk to Ted for hours—the passion just oozes out of him.
If you’re building a brand, investing in one, or running an MSO still wondering why you can’t move weight—this conversation is required listening. There’s something in here for everyone who focuses on the consumer—inside and outside cannabis.
Salute to Jesse and Morgan at Higher Exchanges for a sharp episode that goes beyond the typical C-Suite cannabis guest.
As always, let’s roll up a doink and dive into Sunday Sesh. Here’s what I took away:
1/ LET’S GET REAL
“There hasn’t been a better time for cannabis in general for a while. I mean ever, probably. The world is opening up….The brand is powerful so we’re in a bit of a different position.” — Ted Lidie, Founder/CEO Alien Labs
That’s how Ted opened his Higher Exchanges interview. Not with a sob story about hemp, pricing, taxes, competition, or unfair regulations—but with optimism. A refreshing change from the usual tone on Higher Exchanges, myself included. Sometimes you have to see it before you believe it.
Yet as I said during my last Sesh, we need to get real. But real doesn’t mean pessimistic.
Yes, it’s a dark and lonely place right now—especially for many of the pubcos facing dwindling capital and no clear path forward. But if you stay objective and deeply understand the fault lines, you’ll see there are players in this massive emerging market who treat today like a rest stop—not the final destination.
Prohibition lasted over 80 years. Anyone pretending the rules of the road should be clear less than 10 years after Prop 64 is getting high on their own supply.
Many—like AL—are growing through the pain. And many—like AL—remain optimistic about the future.
The winners? They’re the ones who see through the smoke that will eventually blow over.
2/ TECTONIC THEMES STILL IN PLACE
In late 2022, I listed 4 major themes that would persist during this phase: bifurcation, specialization, optimization, and collaboration. Ted gave a masterclass on what I meant, and illustrated why these themes are not a “zero sum” game. Here are my favorite examples from the pod, but I encourage you to listen with these themes in mind:
BIFURCATION: This theme is nuanced, but for this Sesh let’s focus on bifurcation of the shelf within Dispensary 2.0. AL/Connected are laser-focused on growing quality flower at scale. Each brand has a clear value proposition, a unique menu and price point (a double-edge sword at times), and an authentic voice to create enduring (global) fans. AL has proven it can “slot in” to multiple mass/premium shelves beyond CA, and its focus on R&D and QC allows it to uphold that brand promise to the very community that built it. For AL, it’s a Quality-First mission (see below) with an authentic “let’s get weird” vibe that’s fresh, edgy and fun. They let the product speak for itself—but the “product” is always more than what’s inside the jar.
SPECIALIZATION: For AL, they specialize in quality flower at scale and build engines around that specialty to reinforce their edge. Sure they dabble in other form factors, but it all starts with their genetics and SOPs geared to premium flower. AL knows what it wants to do best, and leans on others and competitors to round out the shelf. They don’t try and do it all. They lean into their craft.
OPTIMIZATION: Powerful brands find a way. In CA, it’s a collection of four company-owned grows. In AZ, it’s one large facility. And in FL, it’s an MSO-partnership where company-trained employees changed jerseys to work for Trulieve. NY seems to be next—and that’s not a coincidence. AL knows it can’t win nationally without having a strong presence in those 3 critical states which represent 25% of the US population (and skews even higher for cannabis).
It’s certainly not perfect, but every consumer brand that matters—regardless of subsector—experiments and fine-tunes its model throughout its lifecycle. AL is no different.
Ted’s approach to scaling comes down to four critical aspects:
Brand Equity/Authenticity
SOPs
People/Training/Processes
Trust
COLLABORATION: Find someone to solve your problems—and in doing so, you’ll solve theirs. AL’s collab with Talking Terps for Brainwash is a fantastic example. As Ted mentioned, it was the #1 monthly 1/8th launch in company history. No surprise that Talking Terps is also finding another gear through these kinds of meaningful partnerships. Find ways to collaborate that are truly mutual.
3/ “QUALITY 1ST”…BUT KNOW WHAT QUALITY MEANS TO YOU
It’s hard to say you’re focused on “quality” without knowing what “quality” is. And to be clear, “quality” means very different things to very different companies. Similarly, “quality” means many things depending on which consumer you survey.
To repeat, “quality” is not the most expensive product on the shelf. Could be weed. Could be handbags.
To me, quality is nothing more than delivering value beyond the perceived value proposition. Real quality isn’t about price or prestige—it’s feeling like you got more than you paid for. High-end to low-end. Event-specific to everyday products and experiences.
You know quality when you feel it. It strikes an emotional chord every time you buy something from them, and for many businesses, every time you transact with them. Each brand has its own rightful place in your wallet.
That is the holy grail in consumer.
For Ted and AL, it’s very clear what quality means to them: growing innovative, forward-thinking and premium strains at scale.
Yes, you expect quality flower. But the emotional connection—to be seen as a true “alien”—resonates more. Remember: a brand is an emotion. An ethos. A connection. And above all, a brand is trust.
Listen to how Ted describes what he and his team are looking for in an innovative menu. He talks about flavor translation — how the nose hits the palate. The combustibility. Smoothness. White ash. Consistency. Not just potency. Not just nose. The whole medicinal experience.
Yes, do all “quality” growers say that? Many do. But not many can do this at scale, day in and day out.
“A lot of brands have one good drop, maybe two. But by batch four or five? They’re done.”
4/ EAT YOUR OWN COOKING
Jesse made it a point to call out how Ted really knows his product and the competition.
Whether it’s “quality” food, wine, booze—or anything we “consume”—the best founders and CEOs eat their own cooking. They ooze their product. And it’s hard to ooze your product if you don’t actually use it. Whether it’s Sam Adams or Uber. Or The French Laundry or Starbucks, you can’t walk away from meeting the C-suite without an energized feeling that s/he truly believes its products are different.
If you don’t feel that, walk away.
Like any great chef or artist, it starts by having a deep understanding of what great actually is. With AL, it’s abundantly clear Ted and his team know great cannabis. It’s in their DNA, their culture, their SOPs. As a weed nerd, I could (and do) talk to Ted for hours about his products—why he chose certain strains and cuts, understanding nuances of great flower and how he judges it, and how innovation will continue to push AL’s envelope. And just imagine for one second what Ted and his team see each year—they can’t walk into a room anywhere in the world without some eager grower trying to show them their work. That level of engagement fuels the AL machine.
From a business perspective, it’s not hard to assume that everyone around Ted and his partner Caleb also specializes in great weed—from top to bottom. From QCing product, to knowing what strains the market will crave, to which markets to enter, to reaching new customers, and how to scale operations in multiple states.
Whatever you’re chasing—regardless if that’s weed or “widgets”—make sure you eat your own cooking. You don’t have to be a head. And yes, you need a talented team around you to keep you honest.
But you absolutely have to understand what your core customer is seeking.
5/ END: THE LONG GAME
For a more heady conversation with Ted on cannabis culture, check out the I Smoke New York pod—hosted by the same crew that birthed the NY Grower’s Cup. It’s a great listen that dovetails nicely with Higher Exchanges to give more meat behind above.
AL is not building hype. They are trying to build something that lasts. And if you’re serious about this game, so should you.
Onward,
SUNDAY SESH
