Jeff Applegate, president of Red Mesa Science & Refining, is driven to provide access to the benefits of cannabinoids to all. Applegate is a seasoned executive with extensive expertise in global supply chain management, manufacturing, product development, B2B sales, distribution, regulatory compliance, and quality assurance. Building upon his expertise in navigating complex organizational structures, he leads Red Mesa’s strategic growth, advancing its manufacturing processes to drive commercialization of the U.S. hemp industry.

Under Applegate’s leadership, Red Mesa has become a frontrunner in the cannabinoid industry, specializing in CBD, CBG, and CBN isolates, distillates, crystal-resistant distillates, and botanically derived rare cannabinoids like CBN, CBT, and CBL. Originally from Silicon Valley, he has now revolutionized the hemp wholesale market by addressing high costs and improving access to small-volume cannabinoid raw materials for benchtop trials.

To ensure success, he assembled a leadership team from the nutraceutical, cannabis, food ingredient, and semiconductor sectors, providing a foundation in science and innovation with a deep-rooted focus on quality and operational excellence. 

Area Code 420 (AC420): Please provide a short overview of Red Mesa. 

Applegate: Red Mesa Science & Refining is a premier globally recognized large-scale producer of hemp-derived CBD, CBG, CBN, and other cannabinoid isolates and distillates. We operate 24/7, manufacturing every product we sell within our 50,000-square-foot FDA-registered food facility in St. George, Utah.

Functioning without clearly defined federal regulations, we introduced overachieving quality standards to be the industry benchmark under the guidance of ISO 9001:2015 certification, cGMP, and the FDA’s CFR Parts 111 and 117. Manufacturing in this manner drives continuous improvement and efficiencies at every level to ensure safety and optimal product quality. Each product batch is analytically tested internally throughout manufacturing to ensure process optimization with final ISO 17025 accredited third-party lab Certificates of Analysis (COAs) confirming product safety and potency.

At Red Mesa, we aim to distinguish ourselves by building long-term partnerships built on trust through product consistency, transparency, quality, compliance, and exceptional customer service. Our success lies in mutually beneficial partnerships and helping to build brands, so we collaborate with customers to understand their unique needs and help guide them through product selection and formulation requirements. To service a broader customer base, we offer flexible ordering quantities ranging from wholesale large-scale quantities for industrial applications to smaller, affordable minimum quantities for R&D or niche formulators.

AC 420: Is the market for your products and services still growing? What type of companies are buying?

Applegate: Market demand for Red Mesa bulk cannabinoid raw ingredients is increasing, both domestically and internationally. This surge is partially driven by growing acceptance and legalization in various countries. However, as processors, we see increased industry consolidation and the industrial hemp sector’s overall maturation as the main factors for our growth.

Over the past two years, many extractors and refiners that started in 2019 and 2020 have either closed operations or pivoted outside of hemp. Many of these companies were caught up in the Green Rush of 2018, with many having very short-term business goals. In several cases, operators who rushed in lacked professionalism and were inadequately prepared in terms of human capital, industry know-how, quality systems, or the capital base to weather the absence of federal regulation.

New business opportunities abound for science-based innovators who have a true foundation in quality systems and operational excellence. As awareness grows, brands across dietary supplement, pharmaceutical, health and wellness, skin care and cosmetics, food and beverage, vape, and pet care are expanding their offerings by incorporating CBG, CBN, and other cannabinoids alongside CBD.

However, given the past, product formulators, contract manufacturers, co-packers, and white labelers are all seeking higher ground. Businesses like Red Mesa represent the safe haven customers seek for ingredients. There is a sea change happening right now within the hemp industry, with customers seeking supply chain stability to ensure the consistent, on-time delivery of high-quality products.

AC 420: As the overall CBD (and associated ingredients) market has changed, how has Red Mesa changed to keep pace?

Applegate: The hemp industry is incredibly dynamic, with a wide range of participants supporting it. Change is constant, requiring operators to be nimble and willing to pivot quickly. Red Mesa has changed significantly from our early origins, mainly regarding our equipment systems and human capital, while the constant remains our commitment to compliance, safety, efficacy, transparency, and quality.

The hemp industry was plagued by charlatan equipment providers shortly after the 2018 Farm Bill. Many refiners, including Red Mesa, purchased equipment systems from engineering firms leaning into hemp without the benefit of tried-and-true equipment systems. As a result, we shifted to staffing our business with technicians, welders, pipefitters, and engineers to augment existing systems and to design and build our own.

Market pricing for bulk raw cannabinoid ingredients has been suppressed for many years, creating an environment where operators must be highly skilled in their production refining operations. To address this, Red Mesa hired a team of process engineers to develop real-time equipment diagnostics and deploy statistical process monitoring software to support our continual process improvement mantra.

To stay competitive and maintain our focus on improvement, Red Mesa prioritized maximizing cannabinoid content from our crude feedstock inputs to enhance overall production yields while simultaneously expanding our offerings to include both mainstream and the most novel cannabinoids.

“Our vision as a company encompasses helping to provide greater health to humanity. To achieve our vision, we aim to provide the health and wellness benefits of hemp to all who desire, at affordable prices. Furthering the progress of the hemp industry through professionalism and leadership in the efficacy of our processing methods and quality standards drives improved quality in the finished cannabinoid goods that consumers can access.“

AC 420: What, if any, significant trends are you seeing?

Applegate: Increased research to understand the effects and benefits of cannabinoids is driving innovation and opening new markets worldwide across numerous verticals. With the increase in global demand for bulk cannabinoid raw ingredients, especially those grown and refined in the U.S., we see expansion alongside CBD to include CBG, CBN, CBC, and others for their unique potential benefits.

Perhaps the most notable change and emerging trend is Japan’s market, which now allows cannabinoids to be derived from hemp flower rather than solely stock and stems. Legislation allowing CBD in food in Japan is groundbreaking news for the hemp industry and producers based in the U.S. and Europe. Japan’s intense focus on quality and material specifications will limit the producers that can qualify to export their products to Japan. Setting a high bar for product quality improves the chances for a successful market opening and may allow Japan to lead the world to adopt similar legislation.

AC 420: Any pending legislation that could impact your company?

Applegate: We strongly support federal legislation that sets clear standards for the way products are made and sold. From the very beginning, we anticipated federal regulation and proactively prepared by achieving ISO 9001:2015 certification for our entire operation. This bold move reinforced our unwavering commitment to safety and quality from day one. Staying ahead of anticipated regulations remains a core priority, which is why we extend beyond the industry’s standards, by adhering to cGMP and the FDA’s CFR Parts 111 and 117.

Additionally, all final COAs are provided by an ISO 17025 accredited third-party lab, a practice we believe ensures quality and safety. We do all of this in anticipation of federal regulation, but also because it is good for the industry. As a result of our position and focus we do not see any pending legislation that would impact our business materially.

AC 420: Which is most important in your organization: mission, core values, or vision?

Applegate: The core values of our organization are most important. They define our philosophy and the belief systems that bind our staff together and lead to cohesive decision-making and actions at every level in support of our long-term goals. Our shared core values allow us to function effectively and efficiently while empowering our company culture. This is essential to our identity as a business and team.

AC 420: Any plans for growth?

Applegate: In 2025, we will be expanding our international footprint to include distribution hubs in Japan, Europe, South Africa, and Oceania. We also plan to continue to expand our product portfolio with the addition of CBD, CBG, CBN, CBT, and CBL water-soluble manufacturing capabilities to participate in the fast-growing beverage market.

Additionally, we will be connecting all our gates of operation utilizing an extensive closed-loop system that will promote safety and product purity, while ensuring greater efficiencies, improved yields, and increased capacities. These investments will improve our competitive position and ability to take additional market share.

AC 420: How are you evaluating success?

Applegate: Assessing our success is tied most closely to our ability to plan and execute the core projects in our business plan. Core projects are generally related to innovation, expansion, and efficiency that drive our ability to compete more fiercely. Some of the KPIs we monitor include customer growth, retention, referrals and reviews, production plan vs. actual outputs, product portfolio expansion, sales and gross margin growth, and employee retention of key positions. The relative position of Red Mesa among our peers in the industry, which is measured by what our customers tell us, is meaningful because their point of view is most objective.

AC 420: How does your business give back to the community or society? 

Applegate: Our vision as a company encompasses helping to provide greater health to humanity. To achieve our vision, we aim to provide the health and wellness benefits of hemp to all who desire, at affordable prices. Furthering the progress of the hemp industry through professionalism and leadership in the efficacy of our processing methods and quality standards drives improved quality in the finished cannabinoid goods that consumers can access. We are actively evaluating a variety of ways to participate more directly in our local community and special interest groups. We hope that in 2025 some of these pathways under consideration will materialize. 

AC 420: At the end of the day, what motivates you?

Applegate: The journey of helping our team grow to build a world-class refining operation that is instrumental in providing access to cannabinoids for all humanity. From audacious goals comes the strength to see our way past the myriad challenges this industry brings. We are fortunate to celebrate breakthroughs often and it’s those moments that provide the motivation.