Anthony Corsaro (AC)

As the cannabis industry matures, we are starting to get reliable data. This can help make decisions based on real sales figures and not predictions. 10 years ago, there was only one state with adult use sales (#colorado) and a handful of states with medical seals. Now there is 24 sates with adult use sales and an additional 15 states with medical seals. At the moment #california leads with total seals but #michigan leads with per capita seals. #florida leads in medical seals. #missouri with a relatively small population and only 17 months since they launched their adult-use market, is already in fifth place. Thank you Debra Borchardt from Green Market Report for the financial update. #cannabisindustry #cannabiscommunity #cannabisnews #cannabiseducation #cannabispolicy #cannbislaw https://lnkd.in/gc96gcCh

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Good morning California Cannabis Industry, Today, in the economic evolution of cannabinoids (both cannabis and help), there's one question remaining: WHO WON THE RACE TO THE BOTTOM?  I'd love to hear your thoughts.  

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Launching canned beverages allows you to tap into a rapidly expanding market, diversify your product offerings, and meet the evolving demands of today's consumers. Here's some wild statistics 😲 - Cannabis canned beverage market is expected to grow to $117B by 2032 - Ready-to-drink Coffee surging towards a projected $64.78 billion by 2032 - Hard Seltzer market, valued at $16.5B in 2023, is expected to more than quadruple by 2033 Beverage production can be daunting, but knowing where to start and how to optimize your procedures is the first step to tap into the explosive growth of canned beverages. If you're considering launching a craft beverage, check out the complete guide to production and packaging here. https://lnkd.in/eRRDG72Z

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The cannabis companies that ‘WIN’ in 2025 and beyond will have these five things in common: 1) They understand the scale that they are trying to achieve and their entire operation is appropriately focused based on that scale. -Local companies need to market and connect locally (in an extremely authentic way) while focusing on profitable, sustainable revenue streams that are mostly consumer driven. -Statewide companies need to do the hard math and modeling to understand what realistic growth means for them. Set specific growth targets based on achieveable modeling. Too many statewide brands operate, market and spend like a national brand, and it will cost them in the end. -National brands must focus on lean profitability and maintain a highly targeted approach to their spending, despite a world that may seem like it has limitless customers. 2) They don’t try to do it all. Developing mastery and economies of scale in specific sectors, while building strong partnerships in the rest of the market, is the model for success in the years to come. The great companies from 2025-Federal Legalization will seek out expansion via truly strategic partnerships (and careful aquisitions) while the mediocre companies attempt to do it all themselves. The largest, best capitalized MSOs will be buying up statewide and regional businesse with lean, focused, positive-cashflow operations, which solve specific problems in their infrastructure. 3) They are building a business that is designed for the New World of Cannabis, and the Era of Commercialization. -We aren’t trappers anymore. -Hitting licks can only take you so far. -Weed is a CPG product. -THCA is sold openly online and in gas stations. -D9 Bevs and Gummies are sold in some of the deepest red states. -Weed by mail is probably here to stay. -Mushrooms are legal in various cities and states. -Consumer trust in a brand is the most valuable asset in the industry. No matter their scale, the companies that win in the next five years will integrate themselves into the new ways consumers interact with and purchase cannabis…. (Online, DTC, Low-Dose, Mixed Nootropic, Bev, Smoke Shop/Gas Station, Mass Market, Seshes, N.A. bars/lounges, add-on dispensary licenses) 4) They build continuous feedback loops with their customers. The great brands and companies that succeed into the 2030’s will have a deep, data-based understanding of their consumers at all levels. Brands must understand the buying criteria of the stores that carry them as well as the buying criteria of the consumers that drive sell-through. The very best will encourage a rewarding consumer engagement loop that directly influences operational decision making. 5) They just don’t quit. (In fact, they continue to innovate, pivot, and understand that at the end of the day, their business is change). A lot of cannabis operators will quit in the next five years. In all business, but especially in cannabis, sometimes it’s just about being there tomorrow.

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Cannabis startups are DEF a rollercoaster - 2 wks ago I was reeling from several gut punches... but today, things are looking bright: ✅ LOTS of new products in the pipeline that I'm SO pumped about... our Live Resin Vapes drop in NY before 710 and they're 🔥 🔥 🔥 . A bunch more new stuff I can't reveal them yet too… ✅ in NY, LIVE NUGS are in almost completely sold out - with most places re-ordering after < 2 wks selling a $100+ SKU! We’re getting a ton of inbound interest - shows that innovative products that deliver real value sell. Still early, but we should 2-3X our best month ever... NY as a market feels like it’s FINALLY getting its footing (hope I’m not jinxing us here). ✅ in CA, we've signed 4 MONSTER accounts since HoF and our new SKUs (esp Live Rosin Pre-Rolls and Live Rosin Vapes) are FLYING... it's painful for our cash flow to be scaling to meet demand, but feeling very positive about the turnaround in the most challenging state. About to sign up for the next big show in Sept… ❓thinking about expansion - though it's still early (wanna make sure our foundation & processes are solid in CA / NY)... but what potential partners should we be talking to in NJ for cultivation / processing / sales & distro? HMU via DM pls... None of this would be possible without our incredible team (Martin Mills, Cirona Labs, Peter Pietrangeli, Euphoric life , Lowell Farms Inc.) and our amazing retail partners. In general, I try not to get too high or too low - but feeling immensely optimistic about the state! Gotta celebrate the wins - as tomorrow I'm fully expecting to be punched in the face again LOL. BTW, in the rollercoaster analogy - which part is “good”? I assume it’s when you’re going downhill (despite Kevin Hart’s face)?! But then when we talk about life’s ups and downs or highs and lows - it’s the opposite right? Make it make sense?!

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Did you see our feature in the Sacramento Business Journal? We are sharing how Exceedient Foods, the innovation arm of Farmers' Rice Cooperative, is revolutionizing the food industry with single-source gluten-free ingredient solutions. 🌾✨ Dive into the full article to explore our commitment to shaping a future of delicious and sustainable food:https://lnkd.in/gkUarX24

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California tax revenue from cannabis has declined each of the last two years from a peak of 2021. (Source:DCC) Where do we expect 2024 to finish? It sure seems to be a broken system, with very few profitable operators. The state is trying, and AB 2223 will be a pivotal moment for the industry. Many brands have given up, and are finding better margins and consumer access in hemp, that allow them to do basic things like make payroll. I voted in favor of prop 64. At the time, I had faith that the state supported profitable industry to boost the economy and provide jobs. I didn't believe they had altruistic motives to improve access to a beneficial plant. I didn't think the mismanagement would be so bad that the industry would already be in a decline 3 years into it. Question: How much tax revenue would we generate for the state if we had low-dose cannabis beverages accessible everywhere alcohol was? How much would we need to tax cannabis beverages to achieve their goal? Allowing adult beverage producers, distributors and retailers to freely sell low-dose cannabis beverages isn't competing for revenue from the dispensary channel. People buy beverages where they already are. Someone ordering a Coke at McDonalds or a Red Bull at a concert wasn't going to buy the same drinks at a grocery store later that day. Please tell me where I'm wrong, or your ideas to fix this decline -

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🌿 Despite #high hopes, the #cannabis industry has faced significant challenges. Turns out, it's not as #dope as investors toked it'd be. 📉 The leading player, Curaleaf, saw its value drop from a peak of 💲11.5B in 2021 to 💲4B today, highlighting the downturn in #marijuana stocks. The #market: 💰 Total U.S. Cannabis Market (legal + illegal) is valued at 💲75B, while the the legal US TAM, currently 💲32B, expected to grow to 💲43B by 2027 (source: BDSA) 🗽Just the New York state TAM is a hefty $6 billion cannabis market (and if you've strolled through NYC lately, you'll know it's not just the hot dog vendors adding to the aroma). 🌿 🍺 In comparison, the U.S. #Alcohol Market was valued at $247B in 2021, with the beer market alone at $115 billion, a stark 8x times cannabis TAM. 💼 Diageo, the leader in the spirits market boasts a 💲76B market cap, 💲21B in revenue and over 💲4B in net income. AB InBev, the leader in beer, commands a 💲120B market cap, 💲60B revenue and 💲5B net income. Some analysts believe that if a cannabis leader emerges, it might eventually reach similar figures. A long way to go for Curaleaf and others... 🌍 Besides the US and Canada there's potential in Europe with countries like Germany, Poland, and the UK that loosening cannabis regulations. More are expected to come. The #issues: 💸 Profitability hurdles include prohibitive taxes, with cannabis businesses unable to deduct common expenses, resulting in significant tax burdens despite losses in net income. 🤝 Fragmentation plagues the industry, with no player holding substantial market share, signaling a potential need for consolidation through mergers. 📊 Data on major companies: 📈 Revenue (2023) Curaleaf - $1.35B Trulieve - $1.22B Green Thumb Industries (GTI) - $1.02B Verano - $879M Cresco Labs - $825M 💹 Gross Margin (2023): Trulieve Cannabis Corp. - 52% Verano Holdings - 51% Green Thumb Industries Inc. - 49% Cresco Labs Inc. - 48% Curaleaf Holdings, Inc. - 45% 💼 EBITDA (2023): Green Thumb Industries Inc. - $291M Verano Holdings - $284M Trulieve Cannabis Corp. - $263M Curaleaf Holdings, Inc. - $239M Cresco Labs Inc. - $125M 👥 Total Employees: Curaleaf Holdings, Inc. - 5,650 Trulieve Cannabis Corp. - 5,400 Green Thumb Industries Inc. - 4,561 Verano Holdings - 3,900 Cresco Labs Inc. - 2,760 💼 Market Cap (may 3rd 2024): Curaleaf Holdings, Inc. - $4.17B Green Thumb Industries Inc. - $3.13B Trulieve Cannabis Corp. - $2.33B Verano Holdings - $1.75B Cresco Labs Inc. - $1B Fast forward a decade, where do you envision the cannabis industry? Do you anticipate pharmaceutical companies making their mark in the cannabis market? Could tobacco or alcohol giants venture into cannabis diversification?

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Ventura Foods is a California-based joint venture between CHS and Mitsui & Co. that produces oil-based ingredients and food products for the foodservice industry. Co-owning Ventura Foods directly connects CHS farmer-owners to the food supply chain, says Todd Biedenfeld, director of vegetable oil and sunflower sales with CHS. “CHS has had incredible returns from our soy and canola processing businesses over the last few years and Ventura Foods is a large contributor to that success,” he says. “Rewards to owners traditionally end when we ship out the refined oil and meal from our facilities. Owning 50% of Ventura Foods allows CHS to participate more completely in the supply chain and when Ventura Foods is profitable, we share in that success.” Learn more about Ventura Foods and how it is driving oilseed demand: https://bit.ly/3Uzm1H8.

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What do consumers actually expect from a cannabis brand? Hint: it’s the same things they expect from non cannabis CPG brands… 1) Consistency. Consumers want dependable experiences, and logos serve as seals of approval that guarantee those experiences. Brands should only put their logo (and their reputation) on product that maintains consistency in consumer experience. 2) Ethos. Consumers want their brands to be more than just the product build, and they build an impression of a brand based on all available data. If your messaging doesn’t match your product, or if your real world actions are not representative of your ethos, it will be painfully obvious, and consumers will punish you for it. What does your brand represent? What set of values does it align with? What niches does it serve? Are the answers to those questions clearly apparent to your customers? 3) Humanity. Consumers under 40 want to buy from PEOPLE, not faceless corporations. Social media has given consumers access to the founders behind their favorite products, which means they now expect more from them. Conversely, digital personalities with significant followings can leverage them to move products. The power of an authentic evangelical founder cannot be understated. It’s extremely difficult to build an authentic brand without a human being behind it. How would I sum up these three things? TRUST. Consumers want brands they can trust. Trust in quality. Trust in messaging. Trust in the humans behind the messaging.

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NEW CannMed Coffee Talk, we discuss Preserving Cannabis Beverage Potency! Dr. Harold Han is Chief Science Officer and co-founder of Vertosa, and the pioneer in water compatible cannabinoid ingredients for infused products. Harold designed the industrial leading cannabis emulsions that are widely applied in the cannabis beverage brands. Harold holds 16 patents in emulsion applications, and prior to founding Vertosa, he led a team that developed the emulsification oil for Bio Rad’s Digital Droplet PCR system. Listen Now: https://hubs.li/Q02M2X0-0 Our conversation covers:
 ⦾ The difference between cannabis beverages and alcoholic beverages  ⦾ What happens when cannabinoids oxidize ⦾ How to put THC into water-based products using physical and chemical processes ⦾ How every aspect of the supply chain can lead to potency loss in cannabis beverages ⦾ Which beverage ingredients hasten potency loss ⦾ How packaging conditions can affect scalping and oxidation rates

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NEW CannMed Coffee Talk, we discuss Preserving Cannabis Beverage Potency! Dr. Harold Han is Chief Science Officer and co-founder of Vertosa, and the pioneer in water compatible cannabinoid ingredients for infused products. Harold designed the industrial leading cannabis emulsions that are widely applied in the cannabis beverage brands. Harold holds 16 patents in emulsion applications, and prior to founding Vertosa, he led a team that developed the emulsification oil for Bio Rad’s Digital Droplet PCR system. Listen Now: https://hubs.li/Q02M2-Vb0 Our conversation covers:
 ⦾ The difference between cannabis beverages and alcoholic beverages  ⦾ What happens when cannabinoids oxidize ⦾ How to put THC into water-based products using physical and chemical processes ⦾ How every aspect of the supply chain can lead to potency loss in cannabis beverages ⦾ Which beverage ingredients hasten potency loss ⦾ How packaging conditions can affect scalping and oxidation rates

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When you have a career in start-ups, you truly never know what kind of opportunity the future holds. It's likely that when you found your next career move, you previously didn't know that business existed - or it didn't exist before you got involved. If I sketched-out the characteristics of my ideal start-up opportunity - the top of the list would include: Help start a company that's a first to market mover in an emerging industry, do it with an incredibly bright and motivated founding team, get to bring other folks from past teams along for the ride to help build and lead, the chance to carve-out long-tail career paths for everyone involved. When we started Terpene Belt Farms, it was a project within our former parent company - we would enthusiastically become the first to build and scale a company in our niche in our (emerging) industry. And 6 years later, we're incredibly proud of our team, our business and place in our industry - and getting some pretty cool press like this is an illustrative time stamp of how far we've come and how much farther we still get to go: https://lnkd.in/gbATfhtH Shareef El-Sissi Pamela Epstein Jack N. Omar El-Sissi LTG!

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As we continue to navigate the complexities of cannabis reform, industry organizations — including the Cannabis Beverage Association, the Hemp Beverage Alliance, and the American Trade Association for Cannabis and Hemp's Cannabis Beverage Council — must agree upon a unified approach. 🤝 Unity and collaboration are key: With the political landscape varying across markets, it’s vital that we move together, advocating strongly and setting standards that pave the way for a cohesive industry. Standards should aim to ensure safety, consistency, and ease of business across states, advocating for dosages and packaging that make sense for everyone. 💡 We are not just competing within the cannabis space but positioning ourselves alongside mainstream adult beverages, embracing the unique opportunities that THC and CBD-infused drinks offer. This strategic realignment emphasizes our commitment to not only advocate for, but also innovate within, the beverage sector. 🌐 As we embrace these changes, we invite our partners in mainstream distribution and retail to prepare for the integration of these exciting products into the broader market. Educate, engage, and ensure compliance to make the most of the burgeoning cannabis beverage opportunity. Let’s toast to a future where cannabis and hemp beverages are not just alternatives, but standards within the beverage industry! 🥂 Read the full article: https://lnkd.in/gUfkiCg5 #CannabisBeverage #HempDrinks #IndustryUnity #BeverageInnovation #CannabisReform #FutureOfCannabis

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Bloom Nutrition just launched a functional beverage that puts them in direct competition with their largest investor. So, why did Nutrabolt (owner of C4 Energy) not only encourage this product strategy, but help make the vision of Mari Llewellyn and Greg LaVecchia a reality? Bloom Sparkling Energy actually provides great incremental opportunity for Nutrabolt because its positioned within the opposite "energy plus" subcategory as C4 Energy. Now…we can argue if consumers even binarily think like that within the energy drinks market or if this is just segmentation minutia, but most importantly Bloom Nutrition taps into today’s female Gen Z audience that’s highly incremental to Nutrabolt overall and becoming an extremely important consumer cohort with the overall energy drinks market. Beyond sharing the growth prospects of Bloom Sparkling Energy, I'll also deeply examine how this product launch could impact: - Nutrabolt portfolio expansion ambitions (through M&A) - Keurig Dr Pepper Inc. energy drink categorical strategy - my previous Nutrabolt IPO prediction (and an interesting benefit to KDP) #strategy #trends #markets #fmcg #cpg #beverages #energydrinks #supplements #sportsnutrition #wellness #nutrition #innovation #marketing #branding #productdevelopment #retailing #merchandising #retail #grocery #business #businessintelligence #entrepreneurship https://lnkd.in/gHX_CS8Z

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Let’s compare wine and cannabis consumption: Only 2% of wine drinkers typically spend $100+ on wine. Conversely, jug wine accounts for a whopping 44% of the market. When I say “Cannabis is corn, dispensaries are gas staions,” what I often hear back is: “Cannabis is like wine, not tortilla chips! There’s a stratified market with a high end!” Well when you dive into the numbers, wine is not as stratified as you might think… Only 7% of wine sells for $21+ per 750ml! The vast majority (77%) sells for under $10. Why do people think cannabis will be different? **Wine data based on 2020 data compiled by SFSU - so the numbers would need to be adjusted for 2024**

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Look Ma, we made it to Sprouts Farmers Market ! 🥂 3 flavors are landing in 30+ select locations in Southern California as part of Sprouts’ Innovation Table and we are thrilled! Big shoutout to the team at Pod Foods for including EATABLE INC. in their Box of Innovation which was instrumental in having us be part of this launch alongside other fab CPG brands. As much as we’re celebrating today, I also wanted to take a second to call out (esp to my non-CPG friends who may not realize this)… The road to mass grocery and retail is HARD AF. 😅 It has always been a dream of Vincent Li and I as founders to see EATABLE popcorn on the shelves of major grocery stores. But truth be told, this journey to bridge EATABLE’s brand identity from a premium gift/department store brand to mass grocery brand has been chock full of headwinds. We’ve pivoted countless times over the last 2 years to tweak: - Pricing (one of the BIGGEST hurdles for emerging brands) - Pack size - Pack design and branding - Distribution model - Logistics and supply chain - Channel strategy - Trade marketing support strategy - Balancing a lean marketing budget between online and offline to drive sellthrough and velocity Getting on shelf is an important first step, but there’s lots of heavy lifting to be done to ensure we sell OFF the shelf too! 🛒 Our journey has been full of small tests, lots of failures and rejection along the way, which have resulted in a TON of learnings (for future posts!) In the meantime, if you or someone you know is in SoCal - Please shop EATABLE INC. at your local Sprouts and grab a bag of popcorn that will POP a party in your mouth, and start conversations at your next gathering! How we perform in these next 90 days at their Innovation Table will determine whether we get to stay on the shelves for the long haul! 🥳 Any CPG friends who have experience selling into Sprouts I’d love to connect and learn from you! And if you happen to see us in store, help a girl out and send a quick photo or “shelfie” with EATABLE - it’ll make my day in more ways than you know! 🍿+🥂 #EATABLE #CPGbusiness #CPGfounder #foodstartup #RetailLaunch #Sprouts #SoCal

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