Vinny McCauley

Jay Z might have fumbled the ball https://lnkd.in/gVBqGf9R Cannabis is more of a culture/community then most outside investors want to accept. Yes it is a CPG that anyone can use but the culture/community often has the power to decide which products and brands will be successful. With Jay Z not being apart of the culture/community, trying to sell a $50 ultra premium product that is normally priced at $5 is a huge risk. He would have to OVER DELIVER in such a big way to get it to stick that Monogram probably never had a chance to be successful. I think launching Monogram as a brand that Jay Z was known to personally use and eventually invested in, is a much better genesis story. I also believe that Monogram's Head of Product DeAndre Watson would have been better to use as the face of the brand over Jay Z. DeAndre's background as a serial entrepreneur with 20+ years in California's black market is much more compelling to the culture/community. If it was me I would set up Monogram as a brand that started off in the black market selling $50 hand-rolled blunts that Jay Z became such a fan of he decided to invest in. As long as Monogram used some of that $500M to focus on delivering the best genetics I think this could of easily turned out differently.

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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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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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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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The cannabis industry has entered into a new stage. Gone are the startup days, we now live in the mature growth era. We’ve gone from low cost producer, to EBITDA, to now free cash flow. With Free Cash Flow and EBITDA margins improving, MSOs with excess cash flow can now pay down debt. However, companies continue to increase their debt and become more leveraged in the cannabis space. So why is that, and how do we measure company leverage? Here are 4 things: 1. Financial Leverage: It indicates the degree to which a company is using debt to finance its assets. Higher ratios suggest more leverage and potentially higher financial risk. 2 Risk Assessment: It helps in assessing the financial stability and risk profile of a company. Companies with lower ratios are generally considered less risky. 3 Comparability: It allows for straightforward comparisons between companies in the same industry by focusing on their leverage and financial health. 4 Creditworthiness: It provides an insight into the company’s ability to meet its obligations. A lower ratio indicates better creditworthiness and financial stability. Check out our list of companies and where they rank in our latest story written by our lead analyst William McNarland, CFA. Seth Yakatan Kyle Kazan Bruce Linton Jesse Channon Anthony Coniglio Dan Ahrens Mackenzie Peterson Charlie Bachtell Graham Farrell Rob Crocker Sofie Mikhaylova Michael Boughner Tyler Beuerlein Emily Paxhia #debt #finance #economics #safebanking #stocks

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They aren't competing with other forms of cannabis. It's like saying people don't want to drink their sugar, they prefer to eat it. They do both. Everyone that consumes cannabis drinks liquid. Add cannabinoids to that liquid, why wouldn't they drink that? Cannabis drinks are competing with other beverages, because they're beverages with cannabis in it. When they go to a party that doesn't allow smoking, are they going to pop a gummy and walk around with empty hands? When they get on a airplane, are they going to eat a gummy and then not get their free beverage? I want cannabev in both those scenerios. Non-alc beverages are 6% of the adult beverage category. Those drinks have zero cannabinoids or alcohol in it are are expensive. That category will get eaten up by cannabev. Pictured is one of my favorite cannabev brands, Happie, who also has their own flower farm. So it's not drink or smoke, it's do both.

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Brand loyalty doesn't exist in cannabis yet. No c@nn@bis brands are pulling the cultural & psychological levers to drive customers to develop a long-lasting connection. Rather, the crux of all c@nn@bis loyalty programs is receiving points/rewards/discounts, which is transaction-based instead of relationship-based. So customers have little to no emotional tie with a brand. As more and more adult-use markets come online, customers are quick to leave a retailer when something closer becomes available to them. Convenience is king. In addition customers can be easily swayed to a different brand with promotions and discounts. Plus, there's not a lot of clear differentiation among retailers, either in products available or customer experience. Agree? Disagree?

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The cannabis industry is booming, but let’s be real—hemp is clearly the MVP. In 2022, the hemp market raked in a whopping $28 billion, leaving the marijuana market trailing behind at “only” $26 billion. Who knew that while marijuana was out trying to look cool, hemp would quietly take over? Sure, marijuana has had its time in the spotlight with all the hype, dispensaries, and Instagram influencers. But hemp’s the one doing the real work, showing up everywhere from wellness products to eco-friendly materials, and let’s not forget all those everyday items people don’t even realize have hemp in them! It’s the true underdog story of a plant that doesn’t need all the flashy lights to make a big impact. While marijuana’s been focused on recreational fame, hemp’s been building a sustainable empire. It’s a jack-of-all-trades, fitting right into personal care, health products, healthier intoxicating products(than alcohol), food, textiles—you name it, hemp’s in it. So while the marijuana market is hanging out in dispensaries and waiting for its next big state to legalize, hemp’s already in the pantry, the medicine cabinet, and probably the clothes on your back. Just go into a marijuana dispensary and take a look around: it’s the usual suspects—standard CBD and THC products, nothing new. Meanwhile, the hemp industry is leading in real innovation with a whole array of natural cannabinoids. Delta-8, CBG, CBN—the options keep growing, with products designed for focus, relaxation, and everything in between. The hemp market is also adding other popular herbs and combining them with unique CBC, THCV, CBN, and CBG blends far before marijuana operators even think to. It’s no wonder they’re trying to shut us down—hemp’s raising the bar on every front. So while marijuana’s riding on reputation, hemp’s the one rolling in the real success, staying ahead of the curve, and keeping things interesting. #hemp #hempissmarter #cannabisindustry #hempindustry #minnesota #florida #wisconsin

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Community is a buzzword right now. It seems like everywhere I turn I hear every business, every podcast, every everyone talking about #community. #cannabiscommunity refers to the larger community of #cannabis users, a counter culture reference more than anything. What about operators? We're doing something that's incredibly difficult. We're building businesses in a developing industry where there's no playbook for success, access to capital is limited, and massive volatility is the norm. I've been an #entrepreneur for the majority of my career. Entrepreneurship is a lonely endeavor. Being an executive is hard, it can be lonely at the top. Being an entrepreneur or executive in the #cannabisindustry is a double whammy, lonely and stressful, squared. The most helpful thing I've found is the camaraderie of like minded people who are going through the same thing. On the most stressful of days, just knowing your not alone is comforting. Having a peer group to bounce big decisions off of is also incredibly valuable. That's why we built the Elite Cannabis Operators Mastermind Community, to create a forum for founders and executives in the cannabis space to come together and support each other. It's a vetted community for high level plant touching and ancillary operators who are also amazing people. If you're interested in networking with like minded people, we got that. If you want to connect with experienced peers who can give feedback on major decisions, we got that. Whether you've been in the game for a long time and you want to expand your network out of state, or you're new to the industry and looking for mentorship, we got that covered. If you've been sitting on the sidelines wondering about what we're doing, I encourage you to come check it out, it's a powerful group. Shoot me a DM for info on how to apply.

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Why are value brands and high end brands dominating the cannabis space? It’s the natural progression of a commodity CPG product: Phase 1: Price Shopping The market is new. Supply has not met demand. Goods are overpriced and most shoppers buy the most THC they can, for the least amount of money. Novelty goods move well becuase there is still novelty in dispensary shopping, but there isn’t a ton of differentiation in SKUs. In general, consumers are not smoking as much as they would like. They come into a dispensary with $100, get a half oz or less, and wish they left with more. Phase 2: Value Shopping The market is somewhat mature. Supply has met demand but not necessarily outpaced it. Shoppers are searching for the best intersection of price and quality (aka value). Overpriced novelty goods start to die out, and good brands begin to differentiate themselves. In general, customers are smoking close to their fill every day, but they don’t have a ton of extra cash to try new things. They come into a dispensary with $100, get a cheap oz from a brand they trust or a half oz of nicer product, plus an infused preroll or two, and feel pretty damn good about their purchase. Phase 3: True CPG Shopping The market has matured. Supply has exceeded demand and prices are near the long term ‘true cost’. Shoppers repeatedly buy from brands they trust becuase they provide consistent value. They have ‘daily smoke.’ High end goods that demonstrate consistent value begin to take up a larger portion of baskets. Why…? Becuase customers can finally get as much product as they want for the $100 they walk in with, PLUS a lot more than a couple infused prerolls. They come into a dispensary, spend $60-70 on an oz or a premium half, and still have $30-40 to spend! What are they spending it on? PREMIUM PRODUCTS. They toss in a jar of Jeeter, a 710 Pod, or a Cookies 1/8th… Lastly, becuase dispensaries (and the brands they carry) have diversified and build their menus strategically, when a customer has $3.50 left, out of the $100 they walked on with, the store can capture that as well. Retailers need to make sure their budtender sales process integrates with this type of behavior. Are they letting customers know what their ‘running total’ is before they get tot the close of the transaction, so the customer can max out their spend? Do you have a variety of $10 or less items to fill in those gaps? Do you have a solid offering of premium products in the $20-40 range that your budtenders are incentivized to sell as add ons? Likewise, brands in developing markets need to do their part to ‘arm’ retailers with a line of products that serves the shift in behavior we’ve seen in developed ones. Start thinking more about MSRP and use that to justify your cost targets and wholesale pricing. Position your brand as a daily solution or a premium treat, or be lost in the muddle of the middle. More than anything, PROVIDE CONSISTENT VALUE. The rest will follow.

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Holistic Approach to Revenue Operations A common error in management is compartmentalizing sales, marketing, and operational roles too rigidly: that all teams are aligned and working towards common goals. Marketing should generate leads that sales can close effectively, while operations should ensure fulfillment capabilities match sales efforts. Recognize that while sales teams are directly responsible for driving revenue, other departments like marketing and PR play crucial supportive roles that prepare the ground for sales to succeed. Each function strengthens the other, and their activities should be integrated rather than segregated

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🚛💨🍃Do you want the sales system blueprint on how to scale your hemp derived business wholesale? Message me to learn more. #hemp #thca #wholesale #wholesalemarketing #cannabisindustry

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Cannabis retail is hitting its discount quarter... a cash-flow killer Let's say you usually sell a 3.5g for $30. It costs you $15 to buy from your vendor. Your gross margin dollars is $15 per 3.5g. Now, imagine you decide to run a big sale: "Eighths for $20!" You sell way more eighths than usual. Your net revenue (total money coming in) goes up. But your gross margin dollars is now only $5 instead of $15. So even though you're selling more and your net revenue is higher, you have less profit overall. You make less money on each sale, and that adds up. This is why mature markets know that selling more products (driving sales) doesn't necessarily mean they're making more money (gross margin dollars) to pay vendors and teams with. Gross margin dollars show how much profit you're making on your sales, which is helpful to keep an eye on- from a cash flow perspective. Q4 is a big risk (Green Wednesday / Black Friday) • You increase sales volume through heavy discounting • You reduce prices to compete, increasing volume but decreasing per-unit profitability You can have what looks like a killer quarter, but after you pay for the inventory, do you have any dollars left? While net revenue is important for overall business health, declining gross margin dollars signal a cash flow crunch, even if net rev looks good in the short term.

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Hey Corporate Cannabis Companies!!! You cannot use the marker of THC levels to market cannabis. Whoever, told you it was is and has been sadly mistaken. Genetics matter. The corporate race to the highest THC level is beyond say 90%. So what will you do once this milestone is achieved? How will you market your product? How will you distinguish your brand from any other? What are your standards of quality?

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HOW YOU THINK ABOUT THE CANNABIS INDUSTRY MAY BE THE MOST IMPORTANT FACTOR IN YOUR SUCCESS OR THE BIGGEST REASON YOU FAIL. The game is hard. The climb is steep. The competition is fierce. The costs are high. The margins are thin. The rules are unfair. The deck is stacked against everyone. But it's not the way things are that determines outcomes. It's the way you think about the way things are that makes sh*t happen. Viktor Frankl said, "Everything can be taken from a man but one thing: the last of the human freedoms—to choose one's attitude in any given set of circumstances." I skipped MJ Biz. I've got a book to finish. What I missed wasn't networking opportunities or closing deals. What I missed was the conversations. I missed the boundless optimism of the cannabis community united as we all keep striving to succeed in this environment. For the most part, we all embody Frankl's words and it's my absolute favorite thing about the business. Keep shining and remember your world is however you think it is. You create it in your mind by how you choose to think about it. This post was a little freestyle that emerged from my morning meditation, but I will def be adding a version of it somewhere in "How to Sell More Weed - A Field Guide". I can point to a lot of reasons for the success of Tropicanna and deeproots partners, but none are more important than the belief we would succeed, the gratitude for the opportunity, and the optimism we brought to our greatest challenges.

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The Science Behind THCP & THCA: The Ultimate Vape Combo In the ever-evolving world of cannabis vapes, a new mix is taking center stage: THCP and THCA. Both cannabinoids bring unique effects, and when combined in a vape, they create a powerful and balanced experience that’s worth exploring. But what exactly are THCP and THCA, and why are they so special together? Let’s break it down. What is THCP? THCP (Tetrahydrocannabiphorol) is a relatively new cannabinoid discovery. It’s similar to THC but up to 33 times stronger in its interaction with the body’s cannabinoid receptors. This means THCP can produce a significantly more potent effect than regular THC, leading to a stronger psychoactive experience with a smaller dose. Benefits of THCP: Stronger psychoactive effects: THCP provides a powerful high, often described as more intense and long-lasting than regular THC. Efficient at lower doses: Because of its strength, users can experience effects at lower doses, making it a cost-effective choice. What is THCA? THCA (Tetrahydrocannabinolic Acid) is the non-psychoactive precursor to THC. In its natural state, THCA doesn’t produce a high. However, when it’s heated (like in a vape), THCA converts to THC, delivering traditional psychoactive effects. Benefits of THCA: Anti-inflammatory and neuroprotective: THCA has been studied for its potential to reduce inflammation and protect brain cells, making it popular for therapeutic use. Gentle psychoactivity: When vaped, THCA provides a mild psychoactive effect, great for users who prefer a balanced experience. Why Combine THCP and THCA in a Vape? The combination of THCP and THCA brings out the best of both cannabinoids. Here’s what makes this blend unique: Potency Meets Balance: THCP offers a strong, long-lasting high, while THCA tempers it with a smoother, milder effect. This creates a balanced experience that’s powerful but not overwhelming. Enhanced Health Benefits: THCA’s anti-inflammatory and neuroprotective qualities add a wellness boost to the vape, making it ideal for users looking for both recreational and therapeutic effects. Less is More: With THCP’s high potency, you don’t need a large dose to feel the effects, making the vape efficient and long-lasting. What to Expect with a THCP & THCA Vape A THCP and THCA vape combines intense psychoactivity with a smooth, relaxing undertone. Users often describe the experience as uplifting and clear-headed, with a lasting calmness. Uplifted Mood: The THCP delivers an immediate, strong high, enhancing mood and relaxation. Clear-Headed Calm: Thanks to THCA, you’ll feel balanced and clear, without the overwhelming intensity some high-potency vapes can bring. Final Thoughts The THCP & THCA vape blend is perfect for those seeking a new cannabis experience that combines high potency with therapeutic benefits. Whether you’re a seasoned user or curious about cannabinoids, this vape combo offers something truly unique. #vape #thca #thcp #smoke

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