How a Veteran Transformed the Cannabis Industry with Automation and Community Focus

In the quiet hum of a manufacturing facility in Chico, California, lies a story as old as the American dream. It’s about a man who turned adversity into opportunity, using grit, ingenuity, and a commitment to better his community. From the fields to the factory floor, this journey underscores the belief that work is not just about profit; it’s about purpose and building something lasting while uplifting others along the way.

At the heart of this story is Dave Peterson, a former Green Beret and military psychologist, who found his calling in cannabis. After years of serving his country and battling PTSD, Peterson built a business that combines cutting-edge automation with a mission to educate and empower the next generation. His Chico California Cannabis Company (C4) isn’t just about making products; it’s about making progress.

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From Struggles to Success: Dave’s Journey

After serving multiple tours in Afghanistan and Kosovo, Peterson faced the challenges of reintegration and PTSD. Disheartened by traditional treatments that emphasized pharmaceuticals, he turned to gardening with cannabis. Initially a suggestion from friends, this experiment on gardening led to significant life changes.

“I was out in the sun, grounded to the earth, and working with these plants. Slowly, my symptoms began to subside—better sleep, less hypersensitivity to noise, and improved overall health,” Peterson shared in an interview with Benzinga Cannabis. This experience inspired him to move from military service to the cannabis industry, witnessing the plant’s medicinal benefits firsthand.

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Embracing Automation for Efficiency

Peterson’s military background, grounded in precision and strategy, offers him a unique perspective on the cannabis industry. Upon entering the market, he noticed a significant trend: cannabis operations were shifting from small-scale craft models to a competitive global industry prioritizing efficiency and scalability.

“Looking at market trends and licensing data, it was clear that automation was the only way to cut costs and maintain production efficiency,” Peterson stated. Analyzing operational inefficiencies, he found that traditional practices struggled with manual processes, high overhead, and limited scalability.

The solution was automation. C4’s facility is equipped with state-of-the-art machinery like the Xylem 3 cartridge filler and the APEHEX pre-roll machine. These innovative tools are changing how cannabis is processed. Peterson strategically waited for technology to develop, choosing to invest when equipment became viable for cannabis use. “In 2020 and 2021, we saw equipment tailored for the unique needs of cannabis,” he recalled. This investment paid off quickly, yielding returns within just seven months, far ahead of his expected 18-month timeline.

“Automation enables us to adjust production levels without the heavy burden of overhead, which is crucial in this unpredictable market,” he noted. By automating tasks such as filling cartridges and rolling prerolls, C4 cut costs while improving client service speed.

This strategic use of technology allows Peterson to compete in a market that’s known for narrow profit margins. With lower costs and reliable production, C4 is positioned to thrive, even against larger rivals burdened by outdated practices. “The industry is chaotic and unpredictable,” he affirmed. “By keeping our costs low and production consistent, we can both survive and grow.”

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Collaborative Manufacturing: A New Model

C4 thrives on cooperation, focusing heavily on white-label manufacturing. Peterson has crafted the company into a solutions provider for diverse clients, ranging from small brands to major cultivators. “We partner with everyone—from boutique brands needing tailored solutions to large farms,” he explained.

Custom agreements, such as profit-sharing models, allow partners to access top-notch products without needing to invest heavily in their infrastructure. Peterson’s connections with premium growers enhance this approach, allowing him to source high-quality cannabis biomass, which is turned into retail products like cartridges, prerolls, and extracts.

C4 also creates opportunities for brands. “Some of our clients don’t grow or manufacture at all. We take care of everything from production to packaging, so they can focus on sales and marketing,” he noted. This model supports operators with limited resources, offering flexible payment options and collaborative outputs that make high-quality production accessible.

“Our goal was to create good products that are accessible to everyone,” Peterson concluded. By blending top-quality materials with efficient automation, C4 can offer competitive prices while still maintaining healthy profit margins.

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Creating Opportunities through Workforce Development

For Peterson, automation’s benefits extend beyond efficiency to community development. Through C4, he trains young adults in operating and maintaining specialized equipment, providing skills relevant across various industries.

“These machines aren’t just about cannabis. The extraction and packaging techniques we use overlap with pharmaceuticals and essential oils,” he emphasized. “We’re offering guidance to young people who may lack direction, helping them to learn a trade, earn a living, and build a future.”

This commitment to workforce training resonates with the history of American manufacturing, where skilled trades offered pathways to economic mobility. Peterson hopes to revive the spirit of technical education and localized production, which he believes have declined over the years.

Innovative Equipments: Aiming for the Global Market

Peterson’s business philosophy embodies the blend of technological innovation and a belief in cannabis’s transformative potential. He views cannabis not just as a medicinal product, but as a foundation for an industry that can reshape the American economy and penetrate global markets.

“Automation isn’t merely about speed; it’s about creating sustainable systems and empowering people. Prioritizing cannabis is prioritizing America,” he stated, highlighting the promise of U.S.-made cannabis equipment to capture extensive international markets.

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