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Each month we spend hours analyzing market research, data trends and private conservations to will keep you in front of the ever-evolving cannabinoid industry. Read the entire June Report here

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The article below is an excerpt from the Monthly Playbook.

Wholesale Hemp Genetics Pricing

Wholesale Data

Last month was a positive month for companies selling genetics in the hemp industry which saw increases across the board. Notably, industrial seeds have continuously seen monthly increases throughout the year. With planting seasons starting up, farmers who decided to plant again this year are proceeding with caution. The price of non-feminized seeds are continuing to rise, recently reaching the $290/lbs threshold. While waiting on the FDA’s ruling on the safety of CBD as a food additive, farmers may purchase non-feminized seeds to decrease the capital needed.

Wholesale Hemp Biomass Pricing

CBG Biomass
     (A GG RE G ATE)
CBD BIOMASS
     (AGGREGATE)
CBD BIOMASS
     (25K – 100K LBS.)
$0.89
CBD Biomass
     (0 – 25K    LBS.)
$0.53 $0.42
CBD   BIOMASS
     (100K – 1M LBS.)
CBD BIOMASS
     (1M+ LBS.)
$0.77 $0.31 $0.19

Note:
The color represents the percent drop in price from the previous month. The dollar amount refers to the
price of product in $ / % CBD or CBG / lbs.

The CBD biomass market continues to stabilize with price increases for every category, except for orders over 1 million lbs. This category saw a $0.01 or 5% drop. CBG biomass decreased $0.05/% CBG/lbs. over the course of this month, making CBG derivative products difficult to move. We speculate that farmers are finally starting to sell their 2020 crop, an overall higher-quality product compared to what is currently on the market. Due to the increased quality, we’re seeing increased price points. More good news; the biomass market is stabilizing with price fluctuations remaining within 10% over the last few months.

Wholesale Hemp Derivative Pricing

CBG ISOLATE
     $1,644
CBG   DISTILLATE REFINED HEMP OIL
     (AGGREGATE)
DISTILLATE
     (BROAD SPECTRUM)
DISTILLATE
     (THC    FREE)
$1,146 $855 $714
DISTILLATE
(THC FREE)
$1,146 $855 $714
$1,262 $551 $497 $224

Note:
The color represents the percent drop in price from the previous month.
The dollar amount refers to the price of the product in $ / unit.

Vio Coop, a large-scale crude oil provider for the Colorado CBD manufacturing sector, has recently closed, according to Hemp Benchmarks. This should result in significant ripple effects on all downstream CBD products, such as distillate and isolate, in the coming months. For the time being, the derivative market will experience volatility across the board with most categories observing price decreases. CBD crude, refined, and broad-spectrum distillate oils were down 14% since last month. CBD isolate and CBG isolate were up 1% since last month. Due to the lack of FDA regulations, brands continue to tread cautiously by holding limited inventory and maintaining a lean business model.

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Join the 1,512 others who are receiving high-signal, data-driven analysis to be in front of their peers in the cannabinoid space! If you have found value in our insights please share this with another canna-curious individual to grow the revolution!

Each month we spend hours analyzing market research, data trends and private conservations to will keep you in front of the ever-evolving cannabinoid industry. Read the entire June Report here

One Report, Once a Month, Everything you need to know

The article below is an excerpt from the Monthly Playbook.

Brand Spotlight: KIVA July 2021 Monthly Playbook

Why we Love them: The more brands, the more fun! Kiva’s product lines are clear and attractive.

Why we docked stars: We can’t come up with anything!

Divide and conquer.

It’s easy to get overwhelmed when one company is offering a sea of products, even if all the products are slightly different. Think about Coca-Cola; imagine the confusion and buyers’ hesitation if all the brands underneath their umbrella, ones like Dasani, Minute Maid, and Vitamin Water, were instead branded as Coca-Cola. The overlap in packaging, coloring, and stylistic elements would make the decision-making process a nightmare. Kiva has recognized what many other cannabinoid companies have not, which is that related diversification of a brand is key to ensuring that customers aren’t bombarded by too many choices.

With a variety of branding styles and delicious flavors, Kiva Confections offers an array of cannabinoid infused sweets that appeal to every user. From mints to chocolate, from gummies to almond bites, Kiva has curated unique sub-brands with varying target markets, visuals and flavor profiles to segment product offerings. For the daring flavor enthusiasts looking for a strong high, there’s the Lost Farm chews and gummies, and for those that want something refreshing yet balancing, the Petra mints offer the perfect solution. There’s also Terra, the brand that exclusively offers savory chocolate bites, and Kiva’s own house brand that caters to those looking for cannabis-infused chocolate bars. While each new product occupies a unique space in the market, the small Kiva logo found on the packaging of each sub-brand promises loyal Kiva consumers the same quality product.

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Each month we spend hours analyzing market research, data trends and private conservations to will keep you in front of the ever-evolving cannabinoid industry. Read the entire July Report here

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JULY 2021

A note from Your Partners

As we enter the hot months of summer and celebrate the birth of our great nation, the
cannabis & hemp industries continue to mature. This is more prevalent in the cannabis
industry, as it seems there’s a new state pushing for adult-use legalization every other week.
This breakneck pace has spurred more mature players with bigger and more daring goals to
enter the space through acquisitions and strategic partnerships. The size of some of these
recent deals have been astronomical. All the while, the hemp industry continues to stagnate
as the federal government refuses to approve CBD as an additive. With so much going on, it
can start to feel like you’re lost at sea with no refuge in sight, but we look forward to being
with you every step of your journey, helping you navigate through any murky waters.

– Kellan Finney

We’re just over halfway through 2021, and the progress the industry has made is
astounding. Connecticut has officially become the 18th state to legalize cannabis, the fourth
state this year, and 36 percent of the U.S. has now gone green. Even more impressive, three
other east coast states (namely RI, PA, and DE) are looking to follow suit. These previously
untapped markets will present areas of growth for current operators and outside
conglomerates to dominate the space and dive into the green rush. As the industry
continues to both expand and consolidate, we’ll be here every step of the way to help
you navigate these shark infested waters.

– Bryan Fields

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Join the 1,512 others who are receiving high-signal, data-driven analysis to be in front of their peers in the cannabinoid space! If you have found value in our insights please share this with another canna-curious individual to grow the revolution!

Each month we spend hours analyzing market research, data trends and private conservations to will keep you in front of the ever-evolving cannabinoid industry. Read the entire June Report here

One Report, Once a Month, Everything you need to know

The article below is an excerpt from the Monthly Playbook.

The marathon in the CBD industry is far from over, as prices and players continue to be volatile. With a large CBD player closing its doors, others operating in the space have a growing opportunity to gain market share. On the other side of the coin, companies manufacturing CBD are twiddling their thumbs, waiting for further guidance from the FDA and USDA, which hopefully will come before the industry is bare bones. Lastly, commodity prices continue to soar. We believe this current environment will allow companies to expand their revenue streams and harness the true versatility of the cannabis plant, whether this involves using the hurd for building materials, the chemical waste streams for commodities, or the phytochemicals for medicine.

Kellan Finney

After the Harvest & Trulieve deal, many industry insiders have called this upcoming month the “summer of canna love.” Will other large MSOs feel the need to quickly respond? Will urgency, the main theme of our May report, play a vital part in next steps? According to our research, the answers to both are a resounding “Yes.” As the industry continues to blossom, we recommend leaning into these feelings of urgency by conducting your own strategic moves during this time of consolidation. Our favorite approach is the smaller scale roll-up, and though it’s not as heavily celebrated or scrutinized as the Trulieve deal, it’s just as crucial to the development of your operations.

Bryan Fields

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**Please note this article is part of a larger series that was first released in the June 2021 Monthly Playbook.

Please note this article is part of a larger series that was first released in the April 2021 Monthly Playbook.  If you would like to receive the complete monthly playbook please join below.

If you would like to join the 1,512 others who are receiving high-signal, data-driven analysis to be in front of their peers in the cannabinoid space you can do so below. Each month we spend hours analyzing market research, data trends and private conservations to will keep you in front of the ever-evolving cannabinoid industry.

Cannabis Manufacturing For The 21st Century

Part 6: Overview of Extraction Methodologies & Monitoring

The separation of the wide array of compounds in cannabis sativa L. is becoming more important as regulations on cannabinoid containing products develop and become more stringent. There are a few common solvent methodologies used for extraction in the cannabis industry.

Alcohol extraction uses ethanol and is one of the most common and efficient methods of extracting the cannabinoids. The process can be done in either warm or cold ethanol. In warm or room temperature ethanol, the cannabinoids dissolve quickly leading to a high yield of cannabinoids. For warm ethanol extraction, the initial step is to soak the raw material in Ethanol to pull off the trichomes. In cold ethanol extraction, the first step is to chill the ethanol down to -40˚C before introducing the cold ethanol to the cannabis biomass.

Afterwards, the mixture is collected, filtered and the solvent is evaporated and reclaimed. In warm ethanol extractions, additional purification steps, such as winterization, are necessary. The biggest issue with scaling up this particular process is the ethanol itself. Because of its flammability, it is rated as a Class 1 Division 2 solvent, which limits the amount of Ethanol that can be stored on a particular site.[1] The evaporation of the solvent from the enriched liquid also requires specialized equipment to efficiently evaporate the ethanol to be reused in a closed-loop process.

ABCS Of Cannabinoid Manufacturing

Hydrocarbon extraction generally uses either propane or butane. Similar to the cold alcohol method, the hydrocarbon solvent is cooled down to below it’s boiling point so that it is in liquid form. The initial extraction washes the raw material with the cold hydrocarbon solvent. The hydrocarbons with the products of interest can be separated by flowing the mixture into a separate area and raising the temperature. [2] With low boiling points, the hydrocarbons evaporate well below the point of degradation of some of the more volatile compounds, leaving behind the cannabinoids, terpenes, flavonoids and waxes.

After the separation of the hydrocarbons from the extract, the propane or butane can be recirculated though the biomass creating a closed-looped system. The result is an extract that is relatively free of inactive plant matter such as chlorophyll, fats and lipids. Inline de-waxing can also be accomplished using the same hydrocarbon solvent thereby entirely removing the need for winterization.

Overview of Extraction Methodologies & Monitoring

Despite this advantage, hydrocarbon extraction is losing popularity for several reasons including, but not limited to, regulations for handling propane/butane and stigma attached to a using a hazardous chemical for the extraction. [3] Similar to alcohol extraction, hydrocarbons are flammable, but they are more stringently classified as Class 1 Division 1. Another difficulty is that many places are banning the use of hydrocarbon extraction, making the setup and scale-up of this process unachievable.

In the next issue, we’ll discuss the final extraction method: supercritical CO2. It’s many advantages make it a promising option for those looking to dive into extraction.

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Each month we spend hours analyzing market research, data trends and private conservations to will keep you in front of the ever-evolving cannabinoid industry. Read the entire June Report here

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The article below is an excerpt from the Monthly Playbook.

The Future Of Lumber And Its Effect On Cannabis Consumers – June 2021 Monthly Playbook

At the time of writing this, July 2021 lumber futures are trading at $1540 per contract, which is a 337.5% increase in price from last year. The interesting thing about lumber future contracts is that they include both the finished lumber products, like as 2’ x 4’s for framing houses, along with pulp which is a byproduct of the milling process. The pulp is used to create paper, cardboard, corrugated cardboard, and other consumables. While the housing boom requires finished boards and is driving the price of lumber future contracts up, the pulp industry operates differently.

Typically, only half of the fiber used for paper manufacturing processes is derived sawmill pulp, and the other half comes directly from wood that was purposely harvested for paper. 5,6, The glut of pine trees in the United States is escalating the stock price, helping cushion sawmill margins.

The Future Of Lumber And Its Effect On Cannabis Consumers

The cannabis industry is heavily reliant on paper products to package and label goods. The main product we believe could be the most effected by the increase in lumber and pulp prices is the pre-roll market. The total domestic market for pre-rolls in 2020 was ~$1.9 billion with ~200 million joints sold in the adult-use markets.

The average retail price is currently around $10.00 for a 0.7 gram cannabis pre-roll.7 If processors experience a 300% increase in packaging cost for pre-rolls (including the rolling paper, filter, packaging, and label), the consumer will most likely have to foot the bill. This spike in pulp pricing will inevitably lead to an increase in price for paper products. Considering the uptick in online shopping this year leading to increased demand for cardboard, we recommend locking in packaging inventory for the summer to avoid any dramatic price increases.

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