Harvest Season is Coming…
Kellen Finney, Eighth Revolution
Harvest season has started for several hemp farmers, as well as outdoor cannabis farmers. The next four weeks will be a busy time for the industry with harvests, and the industry’s biggest show all taking place. The lack of federal ruling on CBD as a nutraceutical, paired with the glut from 2019 harvest, have taken its toll on the wholesale market for biomass and derivative products. Given these variables it is still important to remember the massive potential cannabinoids have as a medicine, which is what started the industry down this path. Once the science catches up to the anecdotal claims and supply and have stabilized, the industry will be one of the most beneficial industries for humanity. Because of these reasons, our firm will continue to provide the most up to date information surrounding the entire cannabinoid industry.
Maturity and Market Share Battles
Bryan Fields, Eighth Revolution
Cannabis Is an incredibly capital-intensive industry. As the industry begins to mature, battles in certain markets will continue with operators big and small looking to use resources to acquire market share. Market share battles, at this current moment, are currently contained to individual skirmishes within states lines. Single State Operators (SSO’s) and Multi State Operators (MSO’s) are confined within these boundaries due to the inability of interstate competition. As consumers continue to educate themselves and consume more cannabis products, how do these operators separate themselves amongst their peers? These battles likely will use one key approach to challenge their peers and that’s price. With margins currently very healthy, look for “a race to the bottom” to be come a common theme in headlines moving forward.
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