RJ Kayser

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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Marijuana Myopia:  How Cannabis Retail is Being Disrupted I have seen firsthand the business challenges faced by Canadian cannabis retailers.  Sadly, many evaporated in 2024 while others are stuck in a death spiral with little hope outside of making big changes. Well known fixes such as increasing budtender education, cost reduction schemes or increasing your social presence can help.  But for many retailers this low hanging fruit has already been picked. More worryingly are the unstoppable forces of technological disruption and innovative business models.  Cannabis consumption lounges, on-demand cannabis delivery and the inevitable entry of large grocery chains will magnify the risk to unprepared or inflexible operators. Don’t believe me? Ask small town retailers what happened when Walmart came to town or physical booksellers when Amazon took off.  Unsurprisingly, many retailers have chosen to keep their head in the sand hoping that destructive market forces or regulations will suddenly become favourable.  However, some sober-minded, forward-thinking Canadian retailers have embraced these challenges and recast their customer strategy and operations.  Consider what Inspired Cannabis Co has done in their new 2400 sq ft Vancouver BC store, located at 1032 Robson St. Inspired Cannabis reimagined the typical vanilla cannabis store, turning it into a consumer friendly, immersive, and brand welcoming environment (attached photo). This is experiential-based selling and service. Ten LP brands are the highlight of the store, where they communicate their brand stories directly to consumers. According to Jesse Dhami, CEO… “Our store is all about delivering a unique and powerful customer experience. We are passionate about sharing our knowledge, but wise enough to know the right time to offer it. We can talk you through choosing just the right type of product for any occasion or hook you up with your usual order really quickly, with no fuss.” So far, customer satisfaction and foot traffic have exceeded expectations plus LPs are lining up to get their brands featured.   For many retailers, the only path to better performance will be a strategic pivot just like what Inspired did.  This pivot will define a new way of differentiating from your competition, serving customers, and running your operations. The recipe will differ for each company. Leaders should look to traditional retailers (e.g., micro-retailing), online sellers (e.g., Amazon Go) and brands (e.g., DTC commerce) for disruptive ideas and best practices.  Naturally, proven tactics like improving consumer targeting, optimizing the product mix and better cash management (not to mention merging with your peers) will still have an important role to play. Don’t be a Luddite.  As a retailer, you are either getting better, treading water, or slowly dying. 🔔 Hit that follow bell to always get my unique, impactful content #cannabis #cannabisindustry #retail #inspiredcannabis

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It is not about #Cannabis or even low-to-no alcohol It is not about chasing fads, especially the ones with uncertain regulatory framework like #Cannabis or some others that have low penetration potential and no taste advantage for (sometimes) both beer & non-beer drinkers It is about understanding finely consumers, their barriers/ drivers & build relevancy vs. other beverage options & win share of occasions/ throat within each occasion Unless beer companies shift their approach from brand saliency within beer/ incremental innovations within beer to breakthrough innovation to win total share of throat, #beer will continue to lose share of throat Last decades battle for beer players was about: - Building brand saliency within beer - Having razor sharp country/ channel where-to-play choices & excellent GTM execution In the next decade, the above will not be enough anymore. It will be about saliency on the holistic consumer job to be done and it requires a drastically different approach to innovation strategy starting deeply with the consumers (cf. our Zero-Based-Growth approach - ) In this context, we predict the gap between Winners & Losers in the beer vertical to widen drastically Exciting challenges ahead for the #beer players Constellation Brands The HEINEKEN Company Carlsberg Group AB InBev Diageo Pernod Ricard The Coca-Cola Company PepsiCo

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What is CBC? Another new cannabinoid?! What is CBC? Well, let's talk about it... CBC is a minor cannabinoid - a compound found in the cannabis plant, just like THC is. However, it does differ from its cannabinoid cousin in a few, important ways. THC, tetrahydrocannabinol, is the cannabinoid responsible for the psychoactive or "high" feeling from using cannabis. The most common effects felt are euphoria and relaxation. CBC, cannabichromene, is one of the "Big 6 Cannabinoids." CBC is found in the early stages of the cannabis maturation cycle, stemming from the all important CBG. It is known for its mood boosting and euphoric effects. CBC acts on unique receptors in the brain to support the activity of the endocannabinoid "anandamide" - the bliss molecule. The word "anandamide" is partially derived from the sanskrit word "ananda," meaning bliss, or happiness. THC + CBC work together much like THC + CBD do, by creating a synergistic effect. The energizing effects of CBC in combination with THC and terpenes found in Sativa strains may create a more blissful experience than THC alone. This combination may be particularly useful for carefree adventures. Long story short... It's a little like a hot air balloon for your mood. Wyld offers CBC in a few of our yummy SKUS! Blood Orange and Grapefruit (if you saw my post on CBG, Grapefruit combines THC, CBC, AND CBG!! Trifecta of amazingness!) both feature CBC! If you have any questions please DM me and I can help you discover the Wyld flavor and feel to support all of your adventures!!! Do you love Blood Orange? Tell us why in the comments! ***NOTHING FOR SALE, EDUCATIONAL/INFORMATIONAL ONLY!*** #jessinthewyld

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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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When it comes to hiring hire a cannabis processing consultants, here are 5 big ways I can help: 1. Compliance with Regulations Think about it: The cannabis industry is highly regulated, with laws varying significantly by location. Staying compliant is critical to avoid fines or shutdowns. Your Benefit: A consultant ensures your processing operation meets all legal requirements, including safety, testing, packaging, and labeling standards. 2. Process Optimization Think about it: Efficient production processes can reduce costs, improve yield, and enhance product quality. Your Benefit: Consultants bring expertise in refining workflows, selecting the best equipment, and implementing scalable systems for long-term growth. 3. Cost Savings Think about it: Mistakes in equipment purchasing, facility design, or workflow can be costly. Your Benefit: A consultant can guide you in making informed decisions, avoiding unnecessary expenses, and identifying cost-saving opportunities. 4. Product Development Expertise Think about it: Creating unique, high-quality cannabis products can set your brand apart in a competitive market. Your Benefit: Consultants can help with formulating new products, improving existing ones, and ensuring they align with market demands. 5. Industry Connections and Insights Think about it: The cannabis market is dynamic, with constant changes in consumer preferences, technologies, and regulations. Your Benefit: A consultant provides access to valuable industry networks, market trends, and the latest innovations, giving you a competitive edge. By discussing projects and leveraging consulting when appropriate, businesses can avoid pitfalls, enhance operational efficiency, and achieve faster, more sustainable growth. At least thats my .02, what do you think? Are there benefits to consultants or are most of them just blowing smoke?

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May 3, 2024. Dietary Supplement Industry. "Information on Select Dietary Supplement Ingredients and Other Substances A directory of FDA actions and communications" May 3, 2024 list pdf. Get It - Read It - Use It "To help manufacturers, retailers, and consumers stay informed about ingredients and other substances found in products labeled as dietary supplements, we have put together this ingredient directory with links to FDA’s actions and communications. The agency’s actions and communications in this directory include FDA’s evaluation of health claims, safety communications, and compliance and enforcement actions. We encourage users of this directory to reference the linked action or communication for additional explanation about an ingredient’s use in dietary supplements. We will update the directory periodically to reflect new developments. As a reminder, FDA does not approve dietary supplements for safety and effectiveness. This directory is not intended to be a comprehensive list of all ingredients used in dietary supplements and may not include all actions the agency has taken with respect to a particular ingredient. We welcome additional feedback and information regarding these ingredients. If you have evidence that calls FDA’s views into question, we invite you to submit such information, along with your reasoning, to the FDA's Office of Dietary Supplement Programs." [email protected] 973 729 2240 b. FDA actions/communications on each of the ingredients in this directory generally fall within one or more categories, numbered below and included in this column:1. Ingredient is the subject of an authorized health claim or qualified health claim 2. Ingredient is the subject of a safety communication 3. Ingredient is not a “dietary ingredient” under section 201(ff)(1) of the Federal Food, Drug, and Cosmetic Act (FD&C Act) 4. Ingredient is excluded from the dietary supplement definition under section 201(ff)(3) of the FD&C Act 5. Dietary ingredient has not met the safety standard in section 402(f)(1)(A) of the FD&C Act 6. New dietary ingredient has not met the safety standard in section 402(f)(1)(B) of the FD&C Act 7. New dietary ingredient requiring a premarket safety notification under section 413(a)(2) of the FD&C Act but for which no notification has been submitted

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Why is there an illicit cannabis market in Canada? Because, it's worth it to be in the illicit cannabis market in Canada. Don't give me some "flowery" explanation that they are in it because they believe in the plant and providing access to it for all...please. They are in it because, they can make money being in it, and the risk of penalties are sufficiently low. You want to reduce the size of the illicit cannabis market in Canada - you increase the penalties associated with being in the illicit cannabis market in Canada - you actually police it and charge and try and convict and sentence. You make it not worth it - it's just a business - nothing more - they will move on to something else. There is no illicit alcohol market of any relevance - of course, it took time to make it go away, but, it has gone away - and the last time I looked, spirits have a very high excise tax applied. You may never take the illicit cannabis market to zero - but you can reduce it if you focus on reducing it. And it won't come from reducing legal cannabis excise taxes - that will help the legal companies to get closer to profitability, but, in the case of many, you could cut the excise tax in half and they would still lose money - in some cases, you could cut it to zero and they'd still lose money.

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The only thing worse than being talked about, is not being talked about. When you fire up the Google machine and put in "Canada budget cannabis", the only publications that seem to talk about it, are cannabis publications. That's not good - they needed this to be more important - higher profile. If no one cares, except those in the cannabis industry, will the government care? Care enough to revise the excise tax system? The Liberals plan to spend a lot of money - they need ways to pay for it - reducing a revenue stream like cannabis excise tax might not land well with them, and with the broader voter base. The cannabis industry needed to do a better job of showing the government how they would get that money back. I guess we will know before the day is done.

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https://lnkd.in/geQP6JYq Organigram Inc to Bolster Auto-Flower and Rare Cannabinoid Portfolio with Partial Third Tranche Investment of US $1M into Phylos Top 3 Key Points 1. Expansion of Product Portfolio: Organigram's investment in Phylos Bioscience Inc. aims to expand its product portfolio with unique and differentiated aromas and flavors, focusing on high-potency rare cannabinoids like CBG, CBC, and CBDV, along with exclusive rights to THCV cultivars in Canada. 2. Strategic Investment and Milestone: The investment includes a convertible loan of US $7 million, with the current partial tranche of US $1 million. This funding is conditional on Phylos delivering unique auto-flower seed varietals for testing, which will further enhance Organigram's market position. 3. Exclusive THCV Offerings: Organigram is a leader in Canada for THCV products, offering a variety of formats and ratios, including exclusive rights to certain cultivars. This product line includes pre-milled flowers, pre-rolls, and gummies, providing a range of options for consumers. #cannabis #cannabisgenetics #strategicinvestment #CannabisInnovation #RareCannabinoids #thc #thcv #cannabisbrand

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I've been saying this for the past few years. As a Canadian cannabis licensed producer with at least a cannabis processing license you need to maximize the monetization of the space in which you operate under. You can do so by leveraging Health Canada's other licenses ie. drug establisment license, NHP site license, medical device establishment license. All three of these licenses and their respective activities gives an LP the capability to manufacture/process thousands of products with thousands of ingredients.....not just tens of products with one ingredient which a cannabis processing license limits you to. Rescheduling of cannabis by DEA will legalize medical cannabis across the United States. That will also open up the doors for exportation of medical cannabis to the United States. DEA will likely recognize a drug establishment license holder who is following Health Canada's drug GMP over a cannabis process licensed holder. For those operators that have both, they will be in pole position for export opportunities to the United States. Your stock portfolio shouldn't be just one stock. Your manufacturing business must not be based on 1 product or plant. You must diversify to survive and thrive, especially in the competitive cannabis sector. I'm happy to discuss a regulatory strategy to capitalize on this impending reschedule and how it could benefit your business. #cannabis, #DEA, #reschedule, #SiteLicense, #DEL,

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MSRPs in cannabis for the most part have been stagnant now for years. Price compression isn't coming from here. It's coming from higher demand in larger formats vs smaller formats. $28 excise tax in a $120oz MSRP = $1.05 to the grower. Consumer behaviour is the causality. Pure economics.

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Our community's united push for higher edibles limits is making waves, and it looks like Health Canada may be listening to our requests. I sincerely hope these new recommendations are not only approached with common sense but also with an environmentally conscious mindset. I would personally opt for childproof outer packaging and inner packaging which clearly states the amount per piece #CannabisCommunity #HealthCanada #EdiblesRegulations"

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Bonus post about Pressure Pack because they're killing the game: There are 2 types of cannabis flower shoppers... Gram or Ounce. Bulk orders result in considerably cheaper prices for customers, but it's a trade-off for less freshness/variety. Pressure Pack stands out in the store for not having any Ounce options. Not many brands make this work. At some level of scale you will need to start selling bulk or you'll be left with tons of oversupply, but why ramp up production beyond demand? True 🔥 runs out fast this way even though it's only sold in 8ths. Less overall quantity, but it never sits and still leads to acceptable margins for retailers. It's Saturday. 80% of the strains I pictured on Monday are gone. Some brands are just on another level. Edit for clarity: This brand has bulk flower possible in select locations, but keeping that limited adds to feelings of scarcity.

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Research on Cannabis Research. Exploring the Challenges in Cannabis Research. Canadian Cannabis Researcher Perspectives on the Conduct and Sponsorship of Scientific Research by the For-Profit Cannabis Industry. Recent studies highlight the multifaceted challenges in cannabis research, emphasizing the critical role of funding. Despite the growing interest in the medical benefits of cannabis, researchers face significant barriers, including regulatory hurdles, limited access to quality study materials, and insufficient financial support. These obstacles hinder the advancement of scientific understanding and the development of evidence-based policies. Increased funding and streamlined regulations are essential to unlock the full potential of cannabis research and its applications in medicine and beyond. November 2024 #Cannabis #ResearchandDevelopment Read more: ScienceDirect Article Link in comments ⬇️

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Did you know that your diet can have an impact on the effectiveness of your CBD? According to the findings of a study carried out by Canadian experts, what you eat before taking cannabis may affect how long it takes for the effects of the cannabis to begin to take effect as well as how intense the effects are. Learn more in our blog here: https://lnkd.in/g5gNsHTV #HealthyEating #Healthy #HealthFood #HealthyFats #HealthyLifestyle #Weightloss #Food #Foodie #CBD #THC #MMJ #Medibles #Canada #Canadians #Health #Fitness #Wellness #Workout #Gym #Motivation #HealthandFitness #Happy #Support #Success

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The holidays are coming! Is your cannabis brand ready to maximize sales during Q4? Our on-demand webinar will show you proven marketing strategies to make this holiday season your most successful yet. Learn: • Data-driven tips for boosting holiday sales • Creative ways to stand out in a crowded market • Key trends shaping Q4 cannabis marketing Watch here on-demand > https://bit.ly/4h4sJPT #MediaJel #webinar #cannabis #Cannabisgrowth #cannabismarketing #Q4Strategies #HolidayMarketing

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