Nathan Russell’s Post

Retail will be the demise of Michigan cannabis producers and potentially the industry. " I can buy it cheaper, my margins are tightening". At what point do the tables turn? Will they ever turn? Will we always have to sell for less, while giving our employees higher wages and more benefits, oh and don't forget we're still limited because of 280e. I run a licensed cultivation facility that employs 30 people. I provide above minimum wages, 75% covered health benefits, and retirement benefits come online this fiscal year for employees with over a year vested. I will continue to give raises, and keep all benefits, I don't care what it takes. How does one legitimize their business with the environment we are in today? We will buckle down, improve our processes, become more efficient, and move the company forward. I see people talking about how the Michigan market will be when states surrounding go licensed legal. I'm not sure it will matter at that point when 50% of growers/processors no longer exist. The way I see things today, I will not be surprised in 2 years bulk flower prices go back to $2000/lb and we see $4-$6k liters of distillate. People will quit, give up, run out of money. It's already happening. Supply will not meet demand, and we swing the pendulum again. It is AWFULLY quiet everywhere right now. People are in a panic, people can't pay their bills, debt cannot be paid, and banks/private lenders won't even touch the industry. Does the state step in to regulate, or do they let the chips fall where they may? I am also very anti government, less government the better. But, in this case, I would be an advocate for a temporary moratorium of all new licenses unless you currently own, or are purchasing an already operational license. I'm a free market capitalist, I want the strong to survive, but I also feel the state should at least attempt to have some sort of Fiduciary responsibility to the Industry they have very loosely managed. What I'm trying to say: Where does the Michigan Cannabis Industry go from here? Love to hear your opinions! Win The Day

Alright Cannabis industry! I got some exciting news/opportunity. I'm a bit terrified to open the doors but here we go anyways! Wyld is officially starting the next phase of the plan.... which is to begin looking at partnerships and distribution for other brands! Now let me clarify a few points: -Wyld does not have wholesale licenses in every market, but we do in some. -That being said, Wyld controls its infrastructure from tip to tail (manufacturing to fulfillment/sales) in all 15 states we operate in. We have more infrastructure than any other cannabis company in North America and we also have more distribution points than any other cannabis company. -We are able to manufacture edibles (and in some states other items) in all of our markets if we can't bring in your product from your location directly for wholesale. What we are looking at: -We are looking at finished good products only (pre-rolls, carts, extracts, edibles, topicals, lozenges, etc.) - we do not want to get involved in the commodity trading of bulk commodities like oil or flower.). We operate Wyld CBD and are in D9 space as well, but we are still building there. Our bread and butter is the dispensary retail network, but looking at everything. -We are looking at deeper partnerships and companies who don't have the resources or appetite to scale quickly.  -Our ideal partner is someone who wants to partner with us and look at a longer term relationship or an exit within our portfolio. We are not trying to compete with the Nabis' of the world and be a distro/fulfillment partner only. We scale things quickly, but we do not operate in the traditional lenses of "educated business philosophies". Wyld still controls its own destiny. Now lets talk about flaws: -We started Wyld with 150k, with little to no experience. I have never written a business plan in my life. We do a lot of things live and our ethos around here is "Rebels and renegades while holding our middle fingers in the air". We build things brick by brick - we do not over promise, but we always deliver. -I do not have a full grasp on the economics or timelines, but more opening the doors to start communications with other companies so we can try to align the stars. -We also do have cash on top of infrastructure to help scale your business into other states. Let me know/reach out if you are interested or tell your friends that Wyld is beginning to finally open its doors. We have been allergic to working with others for the last 9 years as we were solely focused on building Wyld to what it is today. I will not be taking inquiries without some details and "brokers" who want to connect before they tell me who their client is or want to be put on retainer to search.  We have been hiding in the shadows for a very long time, but the Wyld army is crushing life and it is time for to look at expanding into the next phase.

The price of retail cannabis in Michigan has reached record lows with the average cost for an ounce of cannabis flower dropping to $79.70 in July, according to a Crain’s Detroit Business report. Adult-use product prices have fallen nearly 14.5% in 2024 - the previous record low for cannabis flower prices, set in January 2023, was $80.16 per ounce. Total cannabis sales in the Great Lakes State reached $268.4 million in July, only slightly trailing the state’s monthly sales record of $286.8 million, which was set in March when Michigan became the first state to surpass California in monthly legal cannabis sales since the launch of California’s legal market. Read more: https://lnkd.in/eZ9c5aD4

Prince Edward Island Cannabis achieved nearly $25 million in sales during 2023-2024, marking consistent year-over-year growth. Dried flower and pre-rolls dominated sales, with local craft producers playing a significant role. "Sales of dried flower were 43.2% of all sales in the province, while pre-rolls were 24.56%. Concentrates were the next largest category at 14.83% of sales, edibles were 5.85%, ingested extracts were 3.67%, and beverages were just 1.98%." Online orders also increased, reflecting changing consumer habits. This success emphasizes the steady expansion of the cannabis market and the growing demand for diverse product offerings. Retro Cannabis is proud to be a local craft producer that contributes to the growth of the cannabis market and we are excited to see where the market will go next! Read the full article here: https://lnkd.in/giCCuWX8 #RetroCannabis #CraftCannabis #PremiumCraftQuality

What a great product Blitz Insurance Group has put together with a span of 3 years. You can go on our Agent Portal and rate directly through our system! Please contact me to learn more on how we can facilitate the needs of the Cannabis Industry! #letsgrowtogether #riskmanagement #wholesure

Packaging Salespeople--When Times Get Tough--Should You Sell Cannabis Pkg?? All too often when the economy slows, the requests for information on cannabis packaging floods the internet...sure, there are companies that are looking for cannabis packaging but the vast majority are packaging salespeople trying and thinking they are going to hit a grand slam. Just one order is all they need to make their year (or so they think). Whoever they are dealing with or talking to, have blown their minds with massive projections and "cash" ready to spend. However, rarely is this the end result. The packaging salesperson needs to understand that cannabis people know all about Alibaba...and that 99.9% of cannabis packaging is coming from Asia in some way shape or form. Then those that "stock" cannabis packaging (Green Rush-etc) buy in such numbers it becomes a race-to-the-bottom. Selling on "whoever is cheapest" never goes anywhere. But if the packaging rep looks just below the surface, they can find hidden opportunities. All too often cannabis packaging may look nice to the naked eye but there are more flaws, problems and issues growers and dispensaries don't readily share. Packaging is the wrong size, it leaks or doesn't protect the product or is broken when it arrives, or arrives WAY later than promised and paid for or lids don't fit tubes or tubes are the wrong color, child resistant caps or zippers don't work, etc. The way to make money with cannabis packaging is to re-engineer it. Get a customer who has reached their tolerance level with over-promises and rejects and delays...and dial in one or two things ONLY...nothing more (it's easy to get seduced by chasing everything...don't fall for this trap). Find something with decent volume (doesn't have to be massive) and find a factory to make it directly for you...no middleman, no Green Rush, etc. There are lots of opportunities to solve problems...or provide added value by going factory direct and improving on what is already out there. If you can do this...you can become the trusted partner for your client and sell at higher profit margins (because you don't have any competition). There are factories that will work directly with you...directly...but you need to know where to find them and how to vet them (hint, NOT Alibaba). Find PAIN and solve it, and suddenly you are way more than just an order taker...you become a trusted partner. Blocking and tackling (fundamentals) in the packaging industry versus "Hail Mary" passes always wins in the long run.

The New York cannabis market saw 12% month-over-month growth from Jan'24 to Feb'24. The market has demonstrated a robust growth trajectory, with total sales reaching $30 million in February 2024, marking an 11.9% month-over-month increase. The average item price in February 2024 stood at $38.87, slightly down from $39.93 in January, indicating a slight price adjustment as the market matures. Despite the infancy of the legal market in New York, consumer demand is evident through the 14.9% month-over-month unit growth. This suggests a rapidly expanding consumer base that is becoming increasingly comfortable with purchasing cannabis products. The market's growth is accompanied by a diverse range of product categories, each with varying price points and growth rates, appealing to a broad spectrum of consumers. Pre-Rolls saw a scorching 19% increase in sales, just squeezing by edibles to take the number three spot. This brings the New York category mix in-line with many major markets like California, Michigan, and Massachusetts. Ruby Farms takes the top spot in the category with their value priced 7 packs of pre-rolls (only $11.30 per gram!), followed closely by Packwoods and Jetpacks with their focus on the higher end Connoisseur / Infused segment. https://bit.ly/3PigByy #cannabisdata #cannabisindustry

The New York cannabis market saw 12% month-over-month growth from Jan'24 to Feb'24. 👉 Market Dynamics: Demonstrated a robust growth trajectory with total sales reaching $30 million in February 2024, marking an 11.9% month-over-month increase. 🤜 Pricing Trends: Average item price slightly decreased from $39.93 in January to $38.87 in February, indicating market maturity and price adjustments. 👏 Consumer Demand: Evident through a 14.9% month-over-month unit growth, suggesting an expanding consumer base increasingly comfortable with purchasing cannabis products. 👍 Product Popularity: Pre-Rolls experienced a 19% increase in sales, overtaking edibles to become the third most popular product category, aligning New York with trends in major markets like California, Michigan, and Massachusetts. 👌 Market Leaders: Ruby Farms led the Pre-Rolls category with competitively priced 7 packs, followed by Packwoods and Jetpacks focusing on the high-end Connoisseur / Infused segment. #cannabisindustry #cannabiscommunity #cannabisbusiness #cannabis #cannabisnews #cannabisretail #cannabisculture

What’s one reason cannabis prices are dropping that no one is talking about? Processors are getting better at their job. If a processor can produce a preroll for $.10 cheaper due to innovation, that means it’s $.20 cheaper to a cultivator, and $.40 cheaper to the consumer. In a 28 pack of prerolls that would mean up to $11.20 off. Even with a tight 33% markup all the way down, the consumer still saves $6.30!!! This is what I mean when I say ‘natural compression’…. In a free market, competion forces savings from innovation to be passed on to the consumer. Cannabis is a brand new industry in terms of industrial scale, and a huge amount of savings will come simply from advances in processing efficiency. Now let’s say the process of the input cannabis drops by just $25 per lb (12.5%) - this means about $.055 in savings to the processor, $.065-$.11 savings to the cultivator, and $.13-.22 savings to the consumer. All in, on a 14pack, with just a slight drop in commodity prices and a slight boost in efficiency, the consumer might see savings up to $17.36. A lot of people might tell you this is a bad thing… In a free market, it’s simply the natural outcome. (In a limited license scenario, corporations have no reason to pass these savings on to the consumer, or to pass earnings on to their employees, becuase they have no reason to compete for either.)

The Ontario Cannabis Store (OCS) is set to streamline its product offerings, reducing its inventory by several thousand SKUs over the next 18 months to create a more efficient supply chain. This move addresses the growing product glut, limited storage, and slowing market growth. Starting in September, expect fewer products but more efficient distribution. Key changes include: Expansion of the Flow-Through Program: On-demand products without permanent warehouse storage. Multi-Tier Delivery Platform: Reducing lead times for faster access. Increased Product Calls: From four to five annually, accelerating market launch. Harmonized Submission Process: Simplifying product introduction. Enhanced Wholesale Metrics: Detailed data for better product availability. For producers and retailers, these updates mean improved efficiency and faster market access. Stay tuned for further details from the OCS on these significant changes. 1CM Inc. is committed to helping you navigate these shifts seamlessly. Connect with us for insights and strategies to stay ahead in the evolving cannabis market! READ FULL ARTICLE BELOW: https://lnkd.in/gtCpDjwP