Catherine Chen “CC”

If you are a Canadian cannabis LP and you do not have an operational gross margin (net rev - cogs, excluding any biological assets revals) of at least 30%, you have a de facto zero percent chance of surviving. You will never cover the operating expenses needed to run the business and generate a positive IFO - never. A big part of the issue is, too much capacity and with that, the fixed cost burden that hits every gram that is grown. A second issue is continually decreasing sell-in prices, to try to sell all that too-much product. Then, you can likely throw in inefficiencies in portfolio management, with too many strains and skus. You'd love to see IFO margin, as a percentage of net rev, sit more than 10%, but that can never happen when operational GM, for many Canadian cannabis growers, sits at under 10%. It. Will. Never. Work. You are in the business of selling your cannabis for more than it costs to grow - you better start there and fix that.

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Top brands are making strategic moves in the vape market, and AIOs are leading the way ⬆️⬆️⬆️ 🚀 As demand for disposable vapes skyrockets, performance data is your secret weapon to outsmart the competition Check out ADCANN's latest article showcasing leading disposables, https://lnkd.in/g559xffB 💡Neobi’s insights empower brands to pinpoint their strengths, spot top-performing products, and fine-tune their strategies for maximum impact. Don’t just keep up—take the lead. Ready to dominate the AIO category? Leverage the power of data to boost your sales performance with Neobi.

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Neither of the contributors know jack-shite about strategy - and even less about consumer packaged goods... ...so, let's have them write an article about it - dumb, dumb, dumb. I will say it again, monosyllabic, so as to not confuse those for whom Mensa is not holding a chair: There - is - no - first - move - good - in - C - P - G. If you have a winning value proposition for your chosen consumer, they will switch to you, when you get there - they've done it for a hundred years. And retailers will list you because shoppers/consumers want to buy it and use it. Wait and prove out what you have and ensure a clear line of sight forward. At the Canadian federal gov't level, do you really think that setting new cannabis policies is anywhere near a priority - they just finished ignoring excise tax reform in the latest Budget. US federal legalization will be costly and complex and competitive - the last time I looked, there are a ton of incumbent suppliers and retailers. You better be sure your VP will win, otherwise, you will lose a lot of money, really quick. And the last thing the Canadian cannabis industry needs is the ability to import cannabis into Canada - it would have a lower total delivered cost than what's grown here now - that's a promise. Dumb, dumb, dumb. https://lnkd.in/gHJiJm5C

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Are you a cannabis grower looking to elevate your game? I'm excited to partner with PRO-MIX® to bring you a special trial campaign featuring their MYCORRHIZAL INOCULANT and a choice of premium substrates! 🌱 Choose Your Ideal Growing Medium: - PRO-MIX® HP® MYCORRHIZAE: Perfect for those who need high porosity for better root aeration. - PRO-MIX® CX (Coir-Based Substrate): Ideal for sustainability lovers, offering excellent water retention and root support. 🍀 Every Trial Includes: - PRO-MIX® MYCORRHIZAL INOCULANT: Packed with PTB297 technology and Glomus Intraradices to ensure 6,000 viable spores/g, enhancing nutrient uptake and plant resilience. 🌟 Why Join This Trial? - Witness the benefits of adding mycorrhizae to your growing medium. - Choose substrates that support your plants and the planet. Check the link to start your trial today! *Some criteria are required to enter the trial. Super excited about this trial campaign from PRO-MIX® in partnership with Grow World. To get started, head over to Grow World with the following link: https://bit.ly/3UOZc2i" *Note - some criteria are required to enter the trial." #cannabisindustry #cannabiscommunity #cannabisnews #cannabiseducation

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10,000 cannabis deliveries in just 21 months—and we're just getting started. We’re thrilled to announce a major milestone for 1922 Cannabis & Delivery — 10,000 deliveries completed in under 21 months! 🚴‍♂️💨 But this is more than just a number—it’s a sign of the shift we’ve been witnessing across Toronto and beyond. As demand for fast, seamless delivery continues to surge, 1922 Delivery has evolved from a local cannabis retail operation to a key player in the on-demand cannabis economy. Here’s what we’ve learned from serving Toronto’s cannabis community: - 70% of Torontonians order delivery at least once a week—and cannabis is no exception. - The Toronto cannabis delivery market is projected to hit $538M by 2027, and we’re perfectly positioned to capture that growth. - Fast, free, eco-friendly delivery has become essential—it’s no longer a luxury, but a must-have. The on-demand economy is transforming retail, and 1922 Delivery is leading the charge in cannabis. We’ve worked so hard and the crazy part is we’re only just getting started— thank you for being part of this chaotic journey. Stay tuned for exciting updates as we move into our next phase of growth.

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Variables to consider when it comes to packaging and POS are relatively consistent across cannabis* and non-cannabis CPG. Some are pretty unique to cannabis. 📌 Standardization Across Markets Each state is a different planet in terms of packaging and label regs (resealable vs not resealable, terpenes vs no terpenes, what’s defined as “appealing to children”, etc.). To optimize COGs, packaging that conforms to your most conservative market is best as it’ll work across all markets. Bigger order quantities usually means lower pricing. To stand out on the shelf, boundaries need to be pushed. If the goal is to maximize market share, using overly conservative packaging in less conservative markets is not going to help. State-specific packaging leads to lower order quantities which generally means higher pricing. 📌 Static vs Variable Data, Printing, Touchpoints  Cannabis label info requires static data and variable data. Using external printers for static labels and in-house printers for variable labels is often best from a brand standpoint as external printers almost always have more capabilities than what cannabis operators have in-house. However, if printed separately this means two touch-points. Using in-house printers for static data and variable data means all data can be combined into one label (less touch-points) and the risk of relying on external vendors is eliminated. Unique branding elements may be more limited though. External printers can create labels that come with static info applied and a blank section where variable data can be printed in-house. To make this work, operators need to be able to feed the partially printed labels into an in-house printer that can add the variable data. This route can offer the best of worlds as branding elements can be maximized and touch-points minimized (one label). Mylar bag exception: All the static info can be printed directly on the bags (this looks the best) and simple black and white variable data labels can be printed in-house. This typically requires market specific bags though. 📌 Storage Space Cannabis producers and retailers almost always have less storage and transport space in comparison to the non-cannabis CPG world. Jars take up more space than mylar bags. Prerolls with external packaging take up more space than prerolls without. And so on. On the producer side, packaging that takes up more space means vaults fill up faster, transport vans can’t fit as many units, etc. On the retail side, the larger the packaging the smaller an order may be. Retailers only have so much storage space for each brand. They can fit way more mylar bags vs jars in the same space. 📌 POS displays There are no “big box” cannabis retailers. They’re mostly the size of C-stores. There’s no space for big end caps, etc. The more compact a display is, the better chance a retailer will find space for it. *the regulated THC dispensary market What’d I miss?

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🔍 Attention Independent Grocers: The Canadian grocery sector's new industry-developed Code of Conduct is a game-changer. It aims to bring fairness, transparency, and stability to the supply chain—especially benefiting smaller retailers. This initiative addresses key issues like supplier access and fee negotiations, providing a blueprint that could inspire similar movements in the U.S. Explore how this could impact the grocery landscape and what it might mean for independent grocers on both sides of the border. https://lnkd.in/g7NBU-6H #IndependentGrocers #Retail #SupplyChain #GroceryIndustry #FoodSecurity

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As the international landscape for cannabis broadens both in geography and product diversity, acronyms such as GACP, EU-GMP, and IMC-GAP, find their way into regular conversation. Companies that would have once been hyper-focused on the domestic market are now considering export opportunities, and with that comes international regulation.

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Why are so many public cannabis companies failing? It appears Indiva is the next to fall. I hope this is not the end of Pearl's, Bhang and No Future brands. Does anyone have any thoughts on why so many big companies are failing? I never went to school for business but I figured out early in my entrepreneur days that you can't sell products or services at a loss and expect to be in business for very long. I don't believe in chasing market share. I believe in running a sustainable business that is profitable. https://lnkd.in/eYZXDnN6

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How Does Big CPG Look at Cannabis?   A few weeks ago, I assessed how Big Tobacco will step further into the cannabis space. This time, we'll consider consumer packaged goods companies. In our industry, few topics generate as much heat - and as little light.  To best answer the question, it helps to be employed at a CPG firm or work closely with them.  I’m fortunate to have done both (at P&G, Maple Leaf Foods and SC Johnson). CPG is a loose collection of national and global companies that sell everyday products like food, alcohol and household products to consumers.  CPG firms focus on uncovering consumer insights, creating IP and building differentiated brands. The large players typically compete in mature markets and leverage sophisticated practices and consumer data to develop multi-year strategic plans.  Why should cannabis firms care about CPG? > LPs & MSOs will need to play defence when more CPG firms enter the sector; > CPG firms can provide an M&A exit, world class capabilities and capital to a worthy weed company; > Despite differences, cannabis businesses can learn a lot from their CPG peers. I have consulted to some CPG firms who were thinking about entering the cannabis and CBD markets.  The scopes of work can give you a sense of what CPG really care about and how they might enter the cannabis space. In each case, my strategy and analytical work focused on 3 areas:  1. Defining the real market CPG cares a lot about choosing profitable markets and segments to compete in.  Big CPG needs to capture significant shares of large markets to justify the capital and organizational investment.  These generation 2.0 CPG players are also not naïve or overly exuberant.  They won’t fall for TAM fantasies or be seduced by the performance of legacy MSOs and LPs. 2. Identifying material risks These are risk-aware companies.  A ‘test & learn’ approach will be the entry path of some firms. They understand that you make money by not squandering it and by ensuring your limited capital is deployed in the best 'risk vs reward' situation. Furthermore, CPG take things like product safety, regulatory compliance and ESG very seriously.  3. Understanding the regulations:  today and tomorrow As expected, CPG want to know what’s allowed and not allowed by market. Furthermore, they want to understand what the path to legalization or relevant reform is. Two other strategic questions inevitably entered the strategy deliberations: - Can you differentiate and win at the consumer & trade level? - What is the fit with their existing capabilities and assets? Some LPs have danced with CPG partners and investors, with less than ideal results.  These are more teething pains and less an indictment of the CPG-cannabis fit.  Our sector has barely felt the impact of the big CPG players.  That moment will soon come. 🔔 Hit that follow bell to always get my unique, impactful content #cannabisindustry #CPG #cannabis #FMCG #cannabis #strategy

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Overbearing laws in Canada are placing unnecessary strain on the cigar industry, limiting the freedom of enthusiasts and stifling the culture that surrounds cigar enjoyment. These regulations, which include excessive taxation, restrictive advertising rules, and stringent packaging requirements, are causing cigars to suffer under a weight of legal pressures that many argue are disproportionate to their actual public health impact. Advocates are calling for a more balanced approach that respects both public health and the rights of adult consumers. It's time to puff on progress and push for fairer regulations that allow the cigar culture in Canada to thrive. #CigarRights #FairRegulation #CigarCulture #CanadaCigars

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Richard Rodgers <> The CPG View Out Now, "Mastering CPG Marketing: Strategies, Trends, and Innovations for Digital Leaders," on The CPG View featuring Richard Rodgers, Marketing Director at Keurig Dr Pepper Canada. Richard covers the following key points: 🎯 Integrated Omnichannel Marketing: Richard discusses the integration of omnichannel marketing, digital shelf, and brand marketing under one team to ensure seamless planning and execution. 🎯 Adapting to Consumer Behavior and Technological Advances: He highlightes the importance of understanding consumer behavior, particularly how they research and make purchasing decisions. 🎯 Balancing Short-term Wins with Long-term Growth: Richard emphasizes the need for brands to balance immediate sales goals with long-term sustainable growth. Tune in to discover integrated marketing, consumer behavior, and long-term growth in the CPG industry on The CPG View. 🚀🌟 Full Podcast Link (Apple, Spotify, Google, etc): 🎧 https://lnkd.in/ekY9w23v #ecommerce #digital #omnichannel #strategy #success #cro #ceo #leadership #cmo #cdo #retailecommerceclub #cpg #privateequity #playtowin #thecpgview

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This could be a pivotal moment for the convenience industry. If Alimentation Couche-Tard successfully acquires 7-Eleven, the company would have over 20,000 locations in North America. The next closest retailer would be Casey's at 2,639 (according to the CSP Daily News 202). With 7-Eleven’s previous acquisitions (Stripes, Speedway, etc.) they have kept unique branding regionally but worked to consolidate the back-end customer experience. The challenges of consolidating back-end technology for the two largest brands in the industry (and their various subbrands) would be significant, but would also provide tremendous opportunities for cost savings, innovation, and improving the customer experience. What other challenges and opportunities do you see with this potential acquisition? https://lnkd.in/g6ethX4n

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The Canadian government will provide thousands of dollars in alcohol excise duty relief to craft breweries. While we’re happy for craft brewers, the cannabis industry has been asking for similar relief for years. The Canadian government cited the number of jobs created by the brewing industry and the contribution it makes to the broader economy, but the cannabis industry’s contribution shouldn’t be ignored. For comparison: In the 2022-23 fiscal year ended March 31, the Canadian federal government received $610.1 million from excise duties applied to beer. Federal excise duties from cannabis that same year, meanwhile, amounted to approximately $894.6 million. According to Statistics Canada, in 2022, breweries employed nearly 23,000 Canadians. A Deloitte Report from 2021 said the cannabis industry employed more than 43,000 direct and another 180,000+ indirect jobs in its first three years. In 2018, the Conference Board of Canada reported that the beer industry supported 149,000 Canadian jobs, paid $5.3 billion in wages, and contributed $13.6 billion to Canada’s GDP in 2016. A Deloitte Report from 2021 said the Canadian cannabis industry contributed $45.5 billion to Canada’s GDP in its first three years, or an average of about $15 billion a year. We’ll continue to lobby on behalf of the Nova Scotian cannabis industry, but we’d love to know what you think. Let us know. 👇 #CannabisIndustry #Cannabis #CannabisCommunity

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Big day at BRĒZ on this end-of-month push! This is the power of direct-to-consumer (DTC) in the cannabis/hemp space—where brands like ours can connect directly with customers while ensuring safe, adult-only access through age verification services like AgeChecker.Net, which use public and personal information to verify age, similar to a soft credit check, with ID uploads required as needed. But let’s be real—traditional distribution is essential for any brand scaling into the mainstream. Beverage brands are ultimately built on retail shelves, where they reach the consumers who fuel their growth. Meanwhile, DTC is irreplaceable to ensure brands maintain a direct relationship with their customers. Losing that access by requiring brands to go exclusively through distributors would fuel monopolization and limit consumer choice—definitely not the free market we should all be fighting for. As we shape regulations for the low-dose cannabis/hemp beverage category, it’s critical to protect DTC as a responsible channel for brands to connect and engage in commerce with consumers while supporting distribution success. This isn’t about choosing one over the other; it’s about creating a balanced market that values both. Our recent email campaign announcing BRĒZ’s launch at Total Wine in Florida led to 20 cases sold in a week—proof of how DTC and retail amplify each other to benefit everyone. Big thanks to Alexa Alianiello from X for helping us find our footing this month—X is one of the few platforms where you can advertise THC products openly and fairly (thanks, Elon) And shoutout to our Chief Revenue Officer, Brian Dewey, for securing major distribution orders yesterday that drove growth across the board. At BRĒZ, we’re excited for a thriving market where brands grow through both direct connections and strong retail partnerships. A true free market values choice, accessibility, and the synergistic strengths of DTC and distribution—because we all know the best outcomes happen when we prioritize a free market over monopolization.

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I’m loving biased #journalism around #cannabis in #canada When I can tell who pays for the publication based on the article it says a lot about you as a writer. Lets start with citing sources. Do that. You should be clear with your sources. As much as this is relevant for journalists referencing data sets and news releases it is also important when talking about specific products. Illicit cannabis with mold in it? Where’d you get it? How much did you spend per gram? We think that part of the story matters? Did you walk into a downtown toronto pop-up storefront with blown out windows? No sign on the wall. Did you buy your pot from behind the bar at a biker roadstop motel and strip club combo? There’s probably opium in the pot and fentanyl in the bag of coke you picked up there. Free vd if you frequent all the stops that illicit store has to offer. Like, where’d you get the weed? As a grower, I would only buy pot from three legal corporate companies because I know the grower/producer. Even then the pricepoint, consistency and accountability for the product isn’t there because of the disturbingly ridiculous supply chain. Hell, I havnt found a legal pre-roll that doesn’t taste like dry hay, or have the overwhelming flavor and throat burn of added flavoring. What a shame. But if I need pot, which is seldom, I go to an illicit store and ask who the #grower is of the premium pricepoint pot. Im still spending 60 on a hal founce, or I spend 20$-30$ on a blunt that is hand rolled by an artisan. Be honest with yourself at the very least. Like, 20$ for an ounce means we aren’t talking to a consumer demographic that cares about mold, metals, amonia crystals or pesticides. The 100$-150$ illicit ounce is still grower centric, and the quality reflects that. The thing we are terrified to hear about the illicit world: There is quality there. Artisan craft quality. A 25$ blunt on that side, with a logo that points to who hand rolled the thing is unstoppable. Should be 80$. The quality is there from the blunt wrap, to the filter, to the hand selected (grown) cannabis within. .. and that item is incomparable to any offering on the legal side. Most comparable to live handrolled Cuban cigars. I’ve seen that at events. If I’m going to write an article about that blunt, I’m going to talk about where it came from, the pricepoint, and what I know of it. I highly suspect the pot being used to test is coming out the back doors of licensed producers… because it didn’t pass testing. Would you believe that there is lab testing with some illicit producers? This is why it’s important to, at the very least.. Cite your fucking sources. The illicit market has many faces. Grabbing a 20$ ounce, and letting that speak for the entire sector is Mickey Mouse journalism and reeks of corrupt propaganda. You want to rage against the illicit market? Start by doing better. #cannabisnews #selfrespect

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