Editors’ Note: This is an excerpt from our Monthly Playbook. If you would like to read the full monthly playbook and join the thousands of others you can sign up below.

October 2021 Cannabinoid Playbook

A Note from Your Partners

The cannabinoid industry as a whole continues to rapidly evolve and grow with the total addressable market potentially reaching $100 billion by the end of this decade. With such rapid growth there is bound to be growing pains and learning opportunities. This is evident as the CBD hemp industry continues to experience dramatic ups and downs. Today, Delta 8 is restricted in 21 U.S. states. Six months ago Delta-8 was providing significant liquidity to operators capable of manufacturing the chemical. The scientific evidence continues to build regarding the benefits cannabinoids provide to the human body, and because of this evidence, the future outlook for hemp and cannabis could not be brighter. We look forward to continuing the journey with everyone involved.

– Kellan Finney

As operators look to expand their footprint, an increase in mergers and acquisitions (M&A) is a path toward larger strategic positions. Tim Seymour of CNBC recently said “You’re going to see those companies that have been waiting on the sidelines begin to start nibbling some more as valuations become attractive enough for certain capital-rich players.” Recently, conversations have intensified with outside organizations looking to dive headfirst into the exploding industry. These opportunities can lead us down two different paths. This could lead to either the acceleration of consolidation and strong growth, or it could lead to a more difficult path toward one entity, which has never been straightforward and is even more challenging when it comes to cannabis. The path you choose depends on your plan of action and the resources leading the charge.

– Bryan Fields

Editors’ Note: This is an excerpt from our Monthly Playbook. If you would like to read the full monthly playbook and join the thousands of others you can sign up below.

Manufacturing, Retail, & Distribution

From childproof plastic containers to vape hardware, the majority of packaging for cannabis products is manufactured in Asia. One of the main transportation routes out of Asia to the US markets has been the Shanghai Pudong International Airport. However, due to reported COVID-19 cases which were reported among cargo workers, the airport has closed the airport cargo terminal. This closure is already affected several major cargo shippers including Lufthansa Cargo, Qatar Airways, Air Bridge Cargo, and Polar Air Cargo, which were all forced to divert shipments to other airports.

As the global pandemic continues to flare up and affect the supply chain in various ways it is important for operators dependent on consumables to display extra diligence when managing inventory levels of consumables and packaging. Maintaining several months of inventory is vital to keeping your brands on shelves and consumers coming back for the same product. Consistency will be key to managing the ever evolving supply chain.

Editors’ Note: This is an excerpt from our Monthly Playbook. If you would like to read the full monthly playbook and join the thousands of others you can sign up below.

Nearly half of the states have implemented or are in the process of implementing regulations regarding Delta-8. However, some of the states with the largest markets (California, Texas, and Florida) have yet to provide any insight as to how the state will handle the new molecule. Due to this fact, there are more branded products that have started to hit shelves across the country. From our perspective, this suggests that there is enough runway before the products are completely outlawed or legalized to justify investing into development and launch of Delta-8 brands. Even though this is the case Delta-8 distillate did fall 5% from last month to $1000 / kilogram, the second consecutive decrease, this summer. This could be a result of more operators providing the product, or a lack of demand, either of which would negatively influence the price. We recommend staying closely attuned with each state’s regulations relating to Delta-8, as they may vary depending on where your operations are based.

Note: Figure 1. 2021 Delta-8 legality by State sourced from New Frontiers.

Editors’ Note: This is an excerpt from our Monthly Playbook. If you would like to read the full monthly playbook and join the thousands of others you can sign up below.

Why We Love Them: The Wooden Elements Blend Nicely into the Rustic Feel and Design

Papa barkley’s beautifully designed branding is minimal but powerful and professional. It’s a masterclass in colors. Brands sometimes feel the need to push multiple artistic elements when creating their packaging. Papa Barkley demonstrates this is not needed. The wooden appearance works beautifully with the blue and white. The same stylistic approach is used on their website. The shades of tan don’t interfere with the product branding. The social proof is also apparent under the main header that is clear, clean. The photo elements of the product are also strategically placed to take your eye from the right toward the left where the Call to Action CTA is located. The colors are used to systemically take you from the main header to next key point as your eyes work through the page. The biggest negative on their website is their USP. Why Papa Barkely vs others? What makes you unique? This element helps me understand the why. The element is positioned farther down the page but its white and green contrast doesn’t work as well as the others.10

Visit Papa And Barkley at papaandbarkley.com

Editors’ Note: This is an excerpt from our Monthly Playbook. If you would like to read the full monthly playbook and join the thousands of others you can sign up below.