Raw rolling papers founder looks to further elevate cannabis name celebrated in Wiz Khalifa song

By Steve Gelsi

Raw founder is a cannabis smoker who believes in fun products and constant quality improvement by empathizing with customers' needs.

Josh Kesselman was hanging out with a friend one day and talking about how difficult it is to roll and smoke cannabis cigarettes in the rain.

So he invented an umbrella with a special slot for holding a joint and a mouthpiece so you can smoke while walking in a downpour.

"I believe I have created the world's first smoker's umbrella," Kesseleman told MarketWatch. "I made a prototype, and the hilarity it caused among my friends led me to create the real product. It's a fun experiment meant to spark joy in my community."

It's part of the overall philosophy Kesselman said he has when it comes to product innovation.

"It's not like we're selling ketchup or garbage bags," Kesselman said. "This business should be fun and it should uplift people in every possible way, because that's what rolling papers are all about!"

Kesselman said that he doesn't expect to make a profit on the umbrella, which retails for $50, but wants it to be part of his playbook of fun brand extensions to elevate his company, Raw, one of the United States' most popular makers of rolling papers for cannabis and tobacco.

"I think it's exciting for us smokers to create these eccentric inventions," he said. "Most of the ideas for Raw's creations are born during smoke circles with friends. 'What about a skateboard that looks like a burning cone?' -- This is the sort of innovative thinking that fuels our creative process."

For Kesselman, it's all about creating more buzz around the brand and the company he founded after opening up a head shop in the 1990s, when he was a college student.

"My goal is to make products that resonate with our core business -- selling rolling papers," he said. "Even if it's a t-shirt, it should feature elements like a built-in pocket or rolling tray, or hoodie laces that can be used to pack a smoke. I'd love to create a flying disk with a holder in the center and a built-in ashtray, making it a flying rolling tray. My aim is always to amplify the fun factor and creativity of our products."

Today, Raw is one of the leading rolling paper brands in the U.S. with more than $100 million in U.S. sales as it faces off against rivals such as Tuning Point Brands Inc. (TPB), maker of Zig-Zag rolling papers. Raw sells its papers in an estimated 10,000 stores around the country.

Raw could also be called a cultural icon, having been mentioned by celebrities such as Miley Cyrus and Lil Wayne. In 2014, multi-platinum rapper Wiz Khalifa featured the brand prominently in the song "Raw," which included the lyric, "Take that OG Kush and put it in a Raw."

Now after building up his privately held company with no outside capital, Kesselman said is looking to take Raw to the next level by bringing in a potential partner or possibly an investor. But it'll take a lot more than a big check before he signs off on any deal.

"As I think about my legacy, I'm looking for organizations or individuals who can elevate this company to the next level," he said. "We've done incredibly well, but there's so much more to achieve."

Kesselman told MarketWatch that he has admired Ben & Jerry's ice cream -- which was sold by the two founders to Unilever in 2000, but still maintains most or all of its ideals around product quality and innovation.

"They've demonstrated how a company can become a powerhouse without giving up on their core beliefs. To me, that's the Holy Grail," he said. "They sold to Unilever but they didn't sell out."

Rolling papers as magic

Kesselman said traces his love of rolling papers to his childhood, when his dad used Marfil brand rolling papers to create flashes of light and flames in illusions and magic tricks to impress kids.

He started collecting rolling papers and amassed a large collection by the time he attended the University of Florida, in Gainesville, where he had a class assignment to open up a hypothetical business in his senior year.

He saw a market opportunity in Gainesville, which lacked a place just to buy quality clove cigarettes.

"In 1993, while still in school, I opened my store. I sold everything I owned, held on to a $500 van, and maxed out my credit cards," he said. "I created a community-based store that catered to customers' needs."

A customer introduced him to a brand of natural American cigarettes, but the product wasn't what he had in mind.

"The paper didn't match my expectation of a natural smoking experience," he said. "This sparked the idea for Raw rolling papers."

Kesselman said that, between 1993 and 2005 he launched many rolling paper brands. This eventually led to Raw paper, which has a natural brown color.

"Raw was unique because it did not have any chalk (calcium carbonate), which is common in many rolling papers," he said. "It provided a different, more natural smoking experience that my friends loved."

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Raw grew organically through smoke circles where people would pass around blunts or joints and talk about life, Kesselman said.

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Kesselman has faced some challenges such as a seven-year legal battle over trademark and copyright issues with rival rolling paper maker Republic Brands. The suit ended in June with a $1.5 million award to Raw. Kesselman declined to comment on the matter. In a statement at the time, he said he planned to donate the money to charity.

"My personal goal is to live like a rolling paper," Kesslman said. "A rolling paper's job is to provide a positive, uplifting experience. I smoke because I enjoy it, because it's something I want to do. I often ask myself, 'what would a rolling paper do?' and use that as a form of guidance."

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-Steve Gelsi

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07-31-23 0818ET