In a complex industry still working to properly establish itself within Australia, The Entourage Effect stands out from the rest – a clear leader at the forefront of the medicinal cannabis market. And this is largely thanks to CEO Lisa Varley.
Joining the team less than a year after its formation in 2022, by December 2023 Varley had stepped into the role of CEO and rapidly began making waves.
“When I started at The Entourage Effect, we were one of many,” Varley tells The CEO Magazine. “Now we can proudly boast having the largest number of brands in the country – 90 and counting – and our revenue has gone from A$300,000 [US$202,500] in the first year, to now A$36 million [US$24.2 million] in our third year, which is especially impressive for a later entrant in such a dynamic industry.”
Changing perceptions
As someone who’s experienced incredible results from medicinal cannabis, Varley is particularly passionate about changing perceptions of, and improving practices within, the industry.
“This is something very close to my heart, as I am a patient. I was very ill, and it changed my life,” she explains.
“Our focus is helping people and educating patients and healthcare professionals alike. We love helping others understand the synergy between different cannabinoids, and we aim to set new standards of care in the medicinal cannabis industry.”
“We view all customers who we work with as part of The Entourage Effect family, and like any strong family unit we maintain open and honest dialogue every step of the way.”
The Entourage Effect goes above and beyond the normal reach of distributors, also connecting brands with pharmacies and prescribers and assisting with supply chains and pricing.
“Our aim is to continue to be pioneers and lead the way by building an ethical business that delivers superior service and education so more people can benefit from better quality of life, and that we reduce the stigma associated with medicinal cannabis,” Varley says.
“To do this is not easy, as there are so many with influence and differing opinions in the industry.”
Adding to the challenge, Varley explains, is how simultaneously rigid, unclear and ever-shifting the regulations are, in combination with highly restrictive advertising rules.
“In an industry fraught with many barriers; very tight and unclear regulations, the incredible growth we have achieved is a testament to the company, and the driven and dedicated team,” she enthuses.
Trust and transparency
Transparency across the board has been essential for The Entourage Effect to gain trust with all stakeholders, as well as within the strict yet somewhat unclear parameters of industry standards.
“We view all customers who we work with as part of The Entourage Effect family, and like any strong family unit we maintain open and honest dialogue every step of the way – whether you’re a new market entrant looking to launch your brand in the Australian market, or a seasoned pharmacist who is looking into dispensing one of our many brands,” Varley says.
“We also provide information about our sourcing, production processes and quality controls, reinforcing confidence, building credibility and positive sentiment among our customers.”
Fast facts
Year company was founded: 2022
Number of employees: 22
Market share: 20 percent
Annual revenue: US$24.4 million
Reduction in employee turnover rate: 90 percent
As well as maintaining honest and informative dialogue about the ever-changing industry landscape, The Entourage Effect utilizes numerous communication channels and platforms to ensure its message is seen and heard by a wider audience, not only to promote its businesses but also to share the important work of its industry colleagues. This, again, is challenging, given the strict rules regarding advertising.
“Authentic storytelling, highlighting our company values and mission, strengthens our brand reputation, and by actively listening and responding to feedback and offering personalized experiences – from educational support to targeted marketing campaigns – we can ensure all who we work with feel valued and understood,” she says.
Collaborating for accessibility
In a further bid to improve accessibility for patients in need, The Entourage Effect not only collaborates with healthcare organizations, medical advocacy groups and not-for-profit organizations, but also implements educational initiatives to inform healthcare providers and patients about the benefits and safe use of medicinal cannabis.
“Education is key to societal progress,” Varley says. “With this treatment type still considered an alternative treatment, and its potential therapeutic effects not widely understood, we find it imperative to educate all stakeholders – pharmacists, doctors, nurse practitioners, patients and regulatory bodies.
“We are doing that through supporting clinical trials, facilitating educational sessions and conferences, and through our online education platform MiEducate. Launching early next year, we’ll be providing complimentary access to students who are studying applicable degrees, and offering internships and training programs with hands-on experience to foster and support our future leaders.”
“Education is key to societal progress.”
Indeed, she emphasizes that by working together with institutions, stakeholders, medical professionals and other distributors, a substantial and long-lasting shift will occur within the entire industry. From sponsoring practitioner education to charitable donations and facilitating support for financially compromised patients, The Entourage Effect makes sure to give back to those around them.
“We actively engage with the communities where we operate, through development projects that enhance the quality of life for local residents: education, health care, infrastructure improvements, social services support and economic development,” she continues.
“We believe in fostering social responsibility through active involvement in social causes, which also creates a positive brand association and deepens our connection with our audience.”
A focus on sustainability underpins much of what transpires at The Entourage Effect, which is evident in every aspect of operations.
“We implement energy-efficient technologies and processes in our production facilities, reducing our carbon footprint,” Varley explains.
“By sourcing raw materials from certified sustainable suppliers, we ensure that our products are environmentally responsible, and, ultimately, our goal is to achieve carbon-neutral status, reinforcing our commitment to combating climate change.”
Prioritizing diversity
An empathic, tenacious and adaptable leader, Varley is proud that she has successfully cultivated a company culture where staff feel like they belong to a family.
“It is really important to me for people to be happy and fulfilled at work,” Varley says. “I am a well-known champion of diversity – by advocating for an inclusive workplace, you foster a culture where different perspectives strengthen the organization and help bring fresh ideas to the table.”
Over her tenure at The Entourage Effect, Varley has strengthened and prioritized their diversity (DEI), equity and inclusion standards – something she stresses is vital for any successful company. The company’s policies explicitly support DEI, also demonstrated through the implementation of flexible working arrangements, parental leave policies and anti-discrimination measures, with the publication of annual reports detailing progress and areas for improvement in order to remain accountable.
“Diversity in all forms enriches our company culture, drives innovation and enhances our competitive edge,” she says. “Through my leadership, The Entourage Effect is dedicated to embedding DEI into the fabric of our organization. It is not just a business imperative but a fundamental aspect of who we are as a company.
“I strive to create an environment where every employee feels valued, empowered and able to contribute their best work.”
“Diversity in all forms enriches our company culture, drives innovation and enhances our competitive edge.”
With the formation of a DEI Council, with representatives from a variety of departments and backgrounds, The Entourage Effect is able to develop, implement and monitor initiatives to ensure it remains a strategic priority.
“We provide mandatory DEI training for all employees, covering unconscious bias, cultural competency and inclusive leadership. Additionally, mentorship programs connect diverse employees with senior leaders, promoting professional growth and leadership development.”
Drawing on her more than 20 years of experience in the healthcare space, Varley believes what sets a truly great leader apart from the others is the ability to truly listen in all situations.
“During my very first job in big pharma, I was told by my mentor to learn really well to listen – to sit back, drink in the information and give nothing away,” she recalls.
“He said swallow your tongue if you have to, your time will come; and always be authentic and fair. I have found over time that this advice has served me very well.”
