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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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I've been thinking about how cannabis MSO expertise qualifies someone to do, well, just about anything. We are agriculture, manufacturing, wholesale, distribution, and retail - usually separate entities - but not always - governed by the same team. And all of it is wrapped up in state specific compliance layers rivaling pharmaceuticals or gaming... that in some ways support product safety and in most ways just make our jobs harder. Sprinkle the formula across different markets, with disparate supply chains, disparate stages of maturity, and the whole banking thing.... and you get the inevitable chaos of it all. Any one of you that are successfully navigating this - you should take a minute and appreciate what you are doing. People, process and technology transcends industries. If you can vertically integrate and scale, build teams, optimize process and implement new technology solutions to thrive in this environment - you can do it anywhere.

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The Million-Dollar Mistake and why DATA is the real HIGH. Is it Sexy? No. Critical. ABSOLUTELY. Picture two cannabis companies: CannaChaos 🌪️: Their inventory data's a mess. SKUs? Inconsistent. Units of measure? All over the place. Trying to forecast demand? Good luck. DataBud Ltd. 🌟: Clean, standardized data across all systems. Every SKU, every gram accounted for. Real-time inventory visibility? Check. CannaChaos is flying blind. DataBud? They're playing 4D chess while others play checkers. ♟️ Here's the kicker: Most canna-businesses are closer to CannaChaos than DataBud. They're drowning in bad data and starving for insights. Why? Because they overlooked the unsexy foundation: master data management. Spoiler alert: Without clean data, your fancy BI tools are just expensive paperweights. 🧱💸 I've seen cannabis companies burn millions (LITERALLY MILLIONS) on 'cutting-edge' tech, only to realize their data's too messy to use it. It's like buying a Ferrari but filling it with mud instead of gas. 🏎️➡️🥾 The future of supply chain isn't just automation or AI. It's having a single source of truth for your data. 🔮 Imagine: Generating accurate reports in minutes, not days ⏱️ Predictive analytics that actually predict 🔮 Inventory optimization that doesn't require a ouija board 🧿 That's the power of solid data governance. Is it glamorous? Hell no. 🥱 Is it the backbone of a scaled, efficient supply chain? Absolutely. 💪 So before you drop cash on the next shiny supply chain toy, ask yourself: Is your data house in order? 🏠🧹 Because in the cannabis rush, the real winners won't be who has the flashiest tech. It'll be who has the cleanest data. 🧼🏆 Tony Richards and Niki Rogers you know what I'm talking about!

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Lowell Farms is expanding its presence in California's cannabis market by taking on the management of two Los Angeles dispensaries, Rose Collective in Venice and Sunnyside Collective in Westwood. Through a management services agreement, Lowell Farms' subsidiary assumed operational control on October 1, with an option to acquire equity ownership in the future. The company sees this move as a step towards vertical integration, aiming to improve efficiency and profit margins while enhancing customer experiences. Lowell's expansion comes amid financial challenges, including a 50% year-over-year revenue decline in the second quarter and ongoing struggles in California's competitive cannabis market. https://lnkd.in/geUbGGnd

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#Colorado’s cannabis sales have continued their downward trend, with the latest official figures showing the largest year-on-year drop this year in June. This looming cloud did have a minor silver lining, however, with sales total sales in June of $113.7m rising marginally from May’s $113.1m. Despite this slight month-on-month respite, each month of 2024 has seen a year-on-year decline in total sales (medical and adult-use) compared to the same month in 2023, with the most significant drop occurring in June 2024, where sales decreased by 13.3%. In the six months to June, 2024, medical sales decreased by approximately 5.8%, while retail sales dropped by about 11.2%. https://lnkd.in/eGVjztbU

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"Thanks Kaleigh Theriault, great play by play on the first half, let’s take a look at what’s going to be needed to win the year." 🏈 Halftime Report: Preparing for the second half in the Beverage Alcohol Industry! 🏆 As we take a breather at the halfway point of 2024, it's clear that the beverage alcohol industry has seen some major plays and strategic moves. Let's huddle up and look at the game plan for the rest of the year: 🍺 Beer: The price increases in 2023 are putting pressure on consumers, with long-term inflation effects and multiple drivers pointing to lower volumetrics. To stay in the game, deeper price subsidization for core Beer categories is essential. However, Imports show potential for a positive finish. Maintaining consumer loyalty will be our MVP move here. 🍷 Wine: The $15-$25 range continues to be the sweet spot, driving consumer interest. But to achieve positive trends by year-end, we need to capitalize on Q4 gifting. A big comparable period is coming up, so some price adjustments might be necessary, especially for infrequent Wine shoppers. 🥃 Spirits: We're seeing a continued shakeout as consumers transition from traditional products to RTDs. Flavor and turn-key cocktails are the winning plays, making Q4 critical for gifting and entertaining. Price discounting is already in motion to boost revenue. 🍹 RTD (Ready-to-Drink): RTDs remain a game-changer this year. With their share of total Alcohol growing, we expect more stability in growth rates as the shift from Seltzers slows. Building consumer brand loyalty for Spirits RTDs is crucial, and we need to watch out for potential flavor fatigue in the second half. Let's get ready to tackle the challenges and seize the opportunities ahead! Here's to a successful second half of 2024! 🥂 "Why did the football team go to the bank at halftime? To get their quarterback!" 🏆 #BeverageIndustry #AlcoholTrends #Beer #Wine #Spirits #RTD #MarketInsights #SecondHalf #HalftimeReport Note: This report looks at the 26 week ending period thru July 6th, 2024

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Where’s the disconnect? Industry Insiders know that the highest THC percentage doesn’t always mean the best high, freshest flower, or highest quality. Yet, in stores, customers still gravitate towards the highest TAC numbers. How can we, as a community, turn this around? I think its starts with B2B, Cultivators and manufacturers need to change how we sell to stores. If we charge more for higher test results, they will do the same. That’s why I sell all my flower for the same price—I put my money where my mouth is and promise to buy it back if it doesn’t sell! 🌿 Check out our diverse menu on Apex Trading to shop for quality products: https://lnkd.in/ei-9RGG8 🌿 #CPG #Wholesale #Quality #WomenInWeed #WomenInspiringWomen #Erva #Packs #MicroBusiness #HandRolled #CraftCannabis #CannabisCommunity

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📊 California’s Vape Market Breakdown – September 2024 📊 With $98M in vape sales last month, California is once again leading the charge in cannabis. Distillate remains king, representing 75% of vapes sold, while live resin and rosin continue to grow. Vape cartridges account for 43% of sales, with full gram options as the clear favorite at 92%. Greater Los Angeles alone saw $25M in vape sales! 🔍 Leveraging Hoodie Analytics, we can dive deep into these insights and make data-driven decisions to stay ahead. Curious about more market trends? Read more in the link below. Written by Christopher Carroll

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CRD VAPING is in full effect and is growing as consumers seek relief from anxiety and pain without nicotine or a high. CRD vaping – the latest trend reshaping the industry. Remember when CBD vaping tasted like dirt? Not anymore! With Red Mesa CRD, enjoy pleasant flavors and powerful therapeutics. This emerging trend is gaining momentum, poised to become a "super-trend." Position your company at the forefront of this demand wave. Let's discuss strategies that drive sales and set you apart. Please feel free to message me to explore how Red Mesa can help you ride the CRD wave to success! We are here to help! CRD is commonly used in: Vapes Tinctures Edibles Balms and Salves #CBNCRD #CBGCRD #CBDCRD #CRD #RedMesaScience #CRDVaping #CBD #Innovation #Trendsetter #IndustryLeadership #TherapeuticVaping

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⚠️ When filling out the CCC accounts receivable survey: Know how the state operates on alcohol - 30 days terms standard for all orders. If any payment becomes outstanding a wholesaler can “post” a retailer’s license with the state liquor board, temporarily suspending them from legally accepting deliveries from any other wholesaler. This is a simple and effective model that could easily be implemented into Metrc and the MA market. #cannabisindustry #cannabiscommunity

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SAFE NOTES ARE NOW UNSAFE... OK so what is going to happen to the money that was poured into CPG Brands via these supposed SAFE Notes? Issue is that no priced round took place and now it is likely if it did happen it would be at a fraction of the valuation that was contemplated leading to massive dilution for the founder. Many have a cap...few have a floor. and unless they are converted it will be impossible to raise new money at any valuation. #cpg #safenotes #fundraising

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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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Instead of wine, let’s look at craft cannabis vs craft beer, which holds 24.7% of total US beer market share at retail! This means craft cannabis will be the same? Right? Not really… At wholesale, (where they actually make their money) craft brewers only hold 13.3% of sales. In some ways, yes, there are models in this category that could be feasible for cannabis companies to follow, (Tilray thinks so…) But that’s the point….TILRAY is the #6 ‘craft brewing’ company in the country… Simply put, ‘craft cannabis’ doesn’t equate to ‘craft beer’. “Craft Brewers” are defined by the Brewers Association as: SMALL Annual production of 6 million barrels of beer or less (approximately 3 percent of U.S. annual sales). Beer production is attributed to a brewer according to rules of alternating proprietorships. INDEPENDENT Less than 25 percent of the craft brewery is owned or controlled by a beverage alcohol industry member that is not itself a craft brewer. So… you can own 3% of total national market share, and Anheuser Busch can own 25% of your company, and you’d still be considered a craft brewer. This includes companies like: Boston Beer Co. (2,793 employees), $2B in sales Sierra Nevada (1,050 employees), $320M in sales Tilray , (1,600 employees*), $152M in sales *includes cannabis employees One vital point being missed in the comparison between wine and beer and cannabis… we have to note that both wine and beer exist in complex supply chains, wher the grower of the grape very often may not bottle or brand (i.e.selling bulk), and where beer requires hops and barley, which are grown by farmers. So… who are the cultivators in this scenario? The brewers? Or are they barley farmers?

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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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Wage increases are a real concern- download our white paper and learn how we can help mitigate the impact!

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"The results are in, the votes tallied, and we’re ready to announce who took home awards in 18 different states." Congrats to my colleagues at the Upstate Elevator Operators, and the Green State Dispensary. Vermont Leafly Budtenders’ Choice 2024—Best strain of Vermont: Grape GMO A double hitter with Upstate Elevator Operators winning for best strain and best brand! The living soil efforts have certainly paid off here with a beautiful, chunky bud plant that has the smell of funky, fermenting grapes and heavy, musky GMO. If that sounds a little less than appetizing, it seems that just one whiff is enough to get smokers excited and reports say it doesn’t take much more to get you majorly stoned. UEO say the high here is a creative and relaxed experience that does have a strong onset. They’ve also taken this strain and crossed it to RS11 to create something they call Grape Nigel. It’s clear from the buds that Grape GMO is the result of an extensive pheno hunt UEO went through and it’s only fitting that they refer to this strain as a “terpene-laden, living soil masterpiece.” Leafly Budtenders’ Choice 2024—Best flower brand of Vermont: Upstate Elevator Operators History is often important in cannabis and Upstate Elevator Operators have been a part of Vermont’s cannabis scene since 2015 when they started as a cultivation supply store. In 2017 they created Upstate Elevators to offer CBD wellness to their state and beyond. As 2022 came and Vermont legalized cannabis, UE was ready to begin offering living soil cannabis products to consumers as Upstate Elevator Operators. Their strain collection has some unique cultivars as well as some nation-wide favorites. It’s not often you see a brand that’s growing both Zoap AND Soap, alongside Triangle Kush and Larry OG. Not just flower, UEO also makes gummies, chocolates, capsules and live rosin vapes and all the product testing is easy to find on their comprehensive website. Being a budtender means offering background info to customers about the brand and the product, Upstate Elevator Operators make that easy to do and Budtender’s in Vermont have shown love in return.

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Bingo. Tilray buys up brands and companies (like, giggle, Hexo) because they need to prop up a topline that continues to drop based on a "same store sales" comparative. This leads to more costs and more complexity and bigger losses. And any rescheduling of cannabis in the US will do nothing to help Tilray, because, they have no cannabis business in the US. But Irwin doesn't want you to know that or account for that in your investment thesis, because, if you do, he can't get his hands on your money. "Simon added that if and when the U.S. does legalize cannabis, Tilray will be on the hunt for more acquisitions. “Stay tuned,” he said, “we have a great balance sheet, and there’ll be opportunities out there for us to buy other cannabis businesses in the U.S.” Which, he needs because, Tilray Brands has never turned a quarter profit. And that great Balance Sheet, really, is not that great - there is a ton of debt that sits on it and it will convert to current...

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In cannabis sales how many stores should 1 sales rep have? For California there are 1200 ish retailers. 400 don’t pay their bills and another 200 don’t move any volume so realistically there is 600 or so shops that we target. So how many shops should 1 sales rep expect to manage while still providing great service? Not all shops are created equal. Some have mutiple locations and central buying that allows a rep to be in 20 doors with one person of contact. So does it make sense to do it based on revenue vs number of stores or does it make more sense to do it based on number of buyers they have to talk with? With 3 reps we are able to easily reach out to 200 shops each every month. So does adding more sales reps help or hurt the process. If we had double the amount of reps they would be able to reach all their accounts, in 5-10 working days. Do you assign geographic areas for reps or is it first come first with reach out? Sales seems so connection based and sometimes different reps just mesh better with different buyers. If you do geographic how do you handle the fact that different regions produce far more revenue and there for commissions. Example one rep has the Central Valley and another has north of Santa Rosa, the central valley rep is probably gonna earn 3x the commisions vs the no cal rep. Curious with everyone’s experiences.

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