Greenway Media’s Post

Question of the day! Do more dispensaries expand the market or "split the baby?" The "splitting the baby" effect in the cannabis industry underscores a critical challenge: opening more dispensaries does not expand the market but merely redistributes existing demand among more outlets. This phenomenon is illustrated in states like Colorado, Massachusetts, and California, serving as cautionary tales about the pitfalls of an uncontrolled expansion of the cannabis industry. However, we are starting to see this in more nascent markets as well. In Colorado, despite the initial surge in sales and the expansion of cultivation from 15 to 24 counties during the pandemic, the market has seen a significant downturn, with sales hitting their lowest since 2015. This downturn reflects an oversupply issue exacerbated by a decrease in demand post-pandemic. Similarly, in California, the wholesale prices have plummeted by as much as 95% since legalization in 2016, indicating a market flooded with supply far exceeding demand. Massachusetts has also seen a decrease in retail prices, further evidencing the broader trend of price compression and market saturation across states that have legalized cannabis. The excitement surrounding the acquisition of a dispensary license has overshadowed the reality that the lines around the block, a common sight in the early days of legalization, are becoming a thing of the past. The proliferation of dispensaries, potentially surpassing the number of coffee shops, does not bode well for the industry's long-term health. It leads to market fragmentation, where the only differentiation becomes price, squeezing margins and potentially driving operators out of business. These states' experiences send a clear message: strategic planning and regulation are crucial to prevent the cannabis industry from spiraling into a cycle of oversupply, declining prices, and business closures. At the end of the day, we need to create profitable, sustainable businesses that provide value to our patients and consumers. How do we break this cycle? #cannabis #cannabisindustry #cannabiscommunity #pricecompression #expansion Jeni Cohen Elana Cohen Cassie Tomaselli Lori Ferrara Lori DeCarlo

[New Course] Revolution Cannabis for IL This course is an overview of Revolution as a brand, including their full lineup of award-winning products! 🎁 [Learn & Earn] Complete the course to receive a Revolution sample when your Dispensary reaches 70% completion! (Expires 2/25/25) . . . #Revolution #SeedTalent #Producttraining #onlinetraining #learningandeducation

The California Department of Cannabis Control has issued a mandatory recall for Mike Tyson’s Undisputed Truth Cannabis Flower products due to contamination with a type of mold. Last week, California’s Department of Cannabis Control (DCC) issued a mandatory recall for a Mike Tyson-branded product, Tyson Undisputed Cannabis Flower, due to contamination with Aspergillus sp., a type of mold. The recall, published on April 9, affects multiple products sold after August 24, 2023, including the TOAD and TADPOLES batches, distributed across several counties including Alameda, Los Angeles, and San Francisco. The flower was grown by manufacturer Northern Emeralds, who also partnered with rapper Future for a product collaboration last year. This incident follows on the heels of other recent product recalls in California’s cannabis industry, which has been plagued this year by issues related to both product safety and testing integrity. Among industry insiders, the practice of “lab-shopping” — where cannabis manufacturers shop around for labs that might provide inflated or fabricated test results to increase sales or obfuscate the presence of contaminants — has been a controversial subject for years. The incident also brings fresh attention to concerns about celebrity-backed cannabis brands, which critics argue may prioritize marketing over product quality and safety. Consumers who have purchased any of the affected Tyson Undisputed products are advised to check their packages for specific batch and UID numbers listed in the recall notice. Those with matching numbers should dispose of the products or return them to the retailer for proper disposal. The DCC has also instructed all licensees with recalled products in their inventory to follow specific procedures to address the recall and has offered assistance via recalls@cannabis.ca.gov." - Ganjapreneur

Venturing into the #cannabisindustry in Minnesota presents a ripe opportunity, especially after the passing of HF100 last year. ⤶ This landmark legislation not only legalizes adult-use cannabis but also sets the stage for a comprehensive regulatory framework under the newly established Office of Cannabis Management. ⤷ With 16 diverse license types soon available in 2025, entrepreneurs will have a unique opportunity to carve out their niche in this flourishing sector. HF100 is more than just a law; it's a gateway to the burgeoning cannabis industry in Minnesota, laying down the rules for licensing, cultivation, manufacturing, and retailing. The Office of Cannabis Management stands at the helm, ensuring compliance, overseeing licensing, and fostering a craft industry that outshines the illicit market. In addition, as of August 1st, 2023, possession of cannabis in modest amounts becomes legal, setting a new precedent for personal use and cultivation within the state. For those eyeing the retail side, dispensaries—or "Retailers" as termed legally—face certain limitations but also enjoy the perk of operating up to five locations under a single Cannabis mezzobusiness license. 👀 🚧 The path to opening a dispensary involves navigating through a maze of licensing fees and regulatory compliances, with initial costs ranging significantly based on the type of #cannabisbusiness . Each category has its own financial commitments and operational guidelines, from micro to mezzo businesses and cultivators to retailers. For those ready to embark on this green journey, the time to strategize and plan is now. With the legal landscape taking shape and the market poised for growth, Minnesota's cannabis industry is beckoning entrepreneurs to join the revolution. 💡 Your next move could shape the future of cannabis in Minnesota. What path will you choose?

In this final installment of the Q2 2024 Leaderboard Series, we are diving into #MANUFACTURING. In this post, we cover the companies setting the standards in cannabis manufacturing, identify which states are leading the charge and who their top performers are, tap into the latest trends that are shaping the future of cannabis manufacturing, and delve into detailed data and analysis of the top players in the industry. Read the post below ⬇

Alaska is emerging as a leading force in the U.S. cannabis market. According to data from our Summer 2024 edition of Insights Into the State of the U.S. Cannabis Industry, Alaska ranks highest in per capita cannabis spending, with shoppers spending an impressive $366 annually—more than any other legal state. Explore the factors driving this remarkable trend in GreenState ’s latest article on The Last Frontier's unexpected success. Ben Burstein #Alaska #CannabisData #CannabisCommunity #LeafLink #GreenState

Why is the cannabis industry struggling? In short, it’s because the costs of compliance and taxation are sky-high. When trying to run a business, you quickly realize that the biggest “middleman” in the game is the U.S. government, taking an enormous “commission” in the form of taxes and regulatory fees. The cannabis space is burdened with complex regulations and heavy taxation—up to 50% off the top. This makes profitability nearly impossible for businesses aiming to operate compliantly. The Solution? Shift from Cannabis to Mushrooms. The functional mushroom industry is wide open, with low competition and enormous potential. Mushrooms offer the returns cannabis once promised, and we’re at the frontier of what’s possible. At Mushrooms, Inc, we’re building the infrastructure to support brands in this space. We offer complete white-label manufacturing for products like lion’s mane, cordyceps, and other specialty mushrooms, producing up to 10 million units daily in gummies, drinks, powders, and creams. The returns in cannabis might be 2:1, in hemp maybe 4:1, but mushrooms? We’re seeing 10:1 and beyond. It’s a massive opportunity to get in early on a market that’s just starting to take off. If you’re ready to launch your functional mushroom brand or want to learn more about our capabilities, please DM me. You’ll start seeing more from Mushrooms Inc. in the next few weeks, including the debut of our new drink line. Let’s shape the future of wellness together!l

One of the most interesting things I’ve seen in the Michigan cannabis market: Distillate tested by Cambium Analytica goes for 20-30% more per liter than that distillate tested by other labs. What does this mean? It means there is a serious lack of trust in testing labs in Michigan, but Cambium has differentiated themselves enough for brokers to add a few $100 to the liters they test. It means that enough buyers have been burned that they are willing to pay more for product tested by a reputable lab. It means that end consumers are also be looking for more trustworthy products. (God knows brokers stock what sells...) It’s a sign of things to come. A sign that good brands, good value, and good business will win out in the long run. A sign that the trap mentality of making more money tonight - at the expense of money tomorrow, is going out of style. We need to look at compliance testing and our supply chains as part of our product. Good brands build their empires on trust on value. A business built on anything else is a house of cards.

It doesn’t matter if you’re a cannabis start up or a multi state brand operating in 20 + markets.  We’re building Vert to serve you. Our initial idea was to bridge the gap between drop culture and cannabis. What we architected resulted in a product & service offering much greater than anticipated.  Since going to market last June, we’ve learned a lot about ourselves and what the market truly needs. Vert is the only custom packaging company in cannabis that is a real multichannel, single source supply chain partner. This means you can choose between different tiers of primary containers (good, better, best) based on where you want to keep your COGS. It also means you can choose different manufacturing methods from domestic quick turn to import. We are the only cannabis packaging company offering no minimums and 11 business day turn times on a complete solution for your branded products. This means, you can buy your primary, buy custom labels, buy product boxes and case packs all from one partner. You can get prototypes from us within a 1 week turn and have your commercial requirements 2-3 weeks after that. We've taken what is a 4-6 month traditional process and turned it into 4 weeks as it relates to going from concept to shelf. Cannabis operators deserve better. We’re laser focused on building just that 🔨🫡

Growing a cannabis manufacturing business requires careful planning and a strategic approach. Jake Berry highlights the importance of understanding local markets, customer preferences, and operational efficiency. Catch the full article for cannabis business strategies! #CannabisManufacturing #MarketStrategy #CannaBizCPA