Sozo

This interview details Sozo, an indoor farming company based in the United States. The interview is with Kristi Kelly, Chief Strategy Officer of Sozo.

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What is the origin story of Sozo?

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Sozo is an ancient term that means “to heal, to make whole, to renew”. It is through this lens that all cannabis plants are cultivated at Michigan-based Sozo.

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Sozo’s founder and CEO, Aaron Rasty, turned to the cannabis industry after a successful exit from BlueStar Energy, a fast-growing energy services provider Rasty co-founded and operated across 10 states, garnering accolades from “fastest growing” to “largest privately-held” from standard-bearers of business like Fortune, Forbes and Fast Company. Rasty was introduced to owner-operators Nathan Kelly and Kristi Kelly through a mutual acquaintance. As some of the earliest legal cannabis operators in the first state to fully legalize cannabis, Colorado, the Kellys had garnered their own accolades running large compliant vertically-integrated operations. The rest of the cultivation ground team was formed locally, with Mitch Ziman in the role of finance/operations.

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The shared goal – to disrupt the Michigan market, which at the time was characterized by small operations growing quality cannabis, or large operations growing pedestrian cannabis, but no affordable quality cannabis at scale.

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What are some of the biggest challenges facing Sozo in the future?

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Sozo’s leadership team is no stranger to adversity. Sozo’s team, and its operations, all grew during the COVID pandemic. From December 2019, when the first license was granted, to September 2022, the company built out a 3.4 acre campus housing 84,000 square feet of operations, housing over 30,000 cannabis plants at a time in a vertical racking system, a hydrocarbon lab, a solventless processing lab, and six marijuana retail stores statewide. 

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As the pandemic waned, Michigan’s cannabis operators faced another challenge – massive oversupply in the illicit and regulated markets drove prices to record lows which forced businesses to explore consolidation, compression, and closures in an already-competitive marketplace. Agility fastidious process and cost controls have allowed Sozo to continue to grow and evolve. In the face of constant challenges, the company has persevered and succeeded.

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What is unique about Sozo compared to competitors?

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Sozo is achieving a level of quality and testing consistency more commonly associated with smaller craft cultivators and offering it at affordable prices to customers due to operational rigor. 

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What is the current size of your growing area?

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Sozo’s total cultivation footprint makes it the third or fourth largest indoor cultivator in the State of Michigan, which is the second largest cannabis market in the United States. The cultivation operations assume about 75,000 square ft. of the 84,000 square ft. campus. Sozo has approximately 35,000 square ft. of flowering canopy and 12,500 square ft. of vegetative canopy. 

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Do you use CO2 in your operation today -- if so, how much and what do you pay for it? What are your thoughts in CO2 usage in indoor farms?

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Yes. CO2, water, and light are the three things all plants need to photosynthesize so it’s integral to any indoor farming operation. Sozo employs measures to ensure employee safety, such as CO2 monitors and sensors inside of the cultivation environments, alarms inside and outside of the cultivation environment, automatic shutoff, emergency shutoff, and purge systems. Because the plants are using the CO2 for respiration, CO2 is constantly being used and replenished. The plants demand approximately 40,000-50,000 lbs of CO2 per month.

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Energy is a big topic in indoor farming right now. How much do you pay for electricity (kWh)? Is it mainly from the grid or renewables?

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Yes, energy consumption is something that Sozo has always been conscious of, including high-efficiency LED lighting and HVAC systems. The facility was designed with energy-saving electrical systems and Sozo was recognized by local utility provider DTE as a DTE trade ally for the project’s sustainability.

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Sozo uses approximately 990,000 kWh of electricity per month and was able to transfer a large portion of power to a primary service, with the remainder of the facility planned for transfer as soon as a primary power upgrade is complete.

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How can people connect with you or learn more about Sozo?

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Website: www.sozolife.com

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