Wilmington-based Green Compass, a wellness company that sells plant-based products, is switching business models while preparing to adapt to North Carolina’s potential restrictions on hemp-derived products.

The company previously operated under a multi-level marketing structure, relying on independent advocates to make direct sales. Earlier this month, Green Compass announced that it would pivot to a direct-to-consumer or community-driven partnership model, which it has called “The Compass Collective.” 

“The landscape of wellness has changed so much, and direct selling, the MLM model, I do think there's a time and place for it,” said Farah Azmi, CEO of Green Compass. “But I think what ultimately hit for us was this realization … that (advocates) want to be able to share multiple things.”

According to Azmi, the new structure offers flexibility to wellness advocates or influencers seeking to promote multiple brands.

“The way that we started Green Compass was through word of mouth, through people,” said Meredith Cook, co-founder and president of Green Compass. “So it's a people-powered brand. We don't actually have a physical store."

Cook founded the company in 2019 along with her husband, Sterling. Green Compass rented lab space at one point at UNCW’s Marine Biotechnology in North Carolina (MARBIONC) center in 2020 to test hemp’s benefits. 

Since its founding in Wilmington, the company has expanded with new product launches and increased reach. The company has an extensive reach in South and North Carolina, Meredith Cook said, with its farms located in Chadbourn.

While Azmi said the model switch is not related to North Carolina legislation that could limit THC levels in drinks and edibles ahead of anticipated federal changes, the company is prepared to navigate any challenges the law change might bring. 

Earlier this month, the N.C. Senate voted in favor of a conference report for House Bill 328 called “Regulate Hemp-Derived Consumables.” Though the conference report has yet to pass the House, it has the potential to upend the state’s hemp business landscape entirely. 

The bill calls for restrictions on hemp-derived consumable products with more than 0.4mg of THC and raises the age to buy such products to 21. 

For the most part, Green Compass only expects its line of THC-infused sparkling drinks, called SIX, to be affected by the legislation. However, Green Compass has taken a diversified approach to its holistic products, Azmi said.

“We've operated at a high bar since day one,” she said. “We're not hemp exclusive; we're hemp inclusive, and we've developed a line of other products that will survive and do well even under this new legislation.

“The past two years we've been exploring more into functional mushrooms,” she added. “And so we have a couple of great products that utilize the power of mushrooms as well, utilizing our high standards.”