How Small Cannabis Producers Can Keep Up With The Giants

The explosion of the cannabis market over the past decade has brought with it, new industry villains. And it looks like our corporate overlords are here to stay.

How Small Cannabis Producers Can Keep Up With The Giants

The explosion of the cannabis market over the past decade has brought with it, new industry villains. And it looks like our corporate overlords are here to stay.

RECEP KARACA
RECEP KARACA
04 mart 2020 Wednesday 12:50
1773 Reads
How Small Cannabis Producers Can Keep Up With The Giants

The explosion of the cannabis market over the past decade has brought with it, new industry villains. And it looks like our corporate overlords are here to stay.

The likes of Canopy Growth (NYSE: CGC), Tilray (NASDAQ: TLRY) and Aurora Cannabis ( NASDAQ: ACB)—each valued at over $5 billion, respectively—have taken over the cannabis industry, pushing hundreds of mom and pop producers out.

It’s no surprise really, with the total cannabis market in the U.S alone reaching an insane $77 billion market valuation in 2018, greed has come to roost. Last year alone over $10 billion in investor funds poured into Wall Street’s cannabis darlings.

Thankfully, there is still plenty of room for growth in the industry and that means plenty of time for small cannabis producers to find their footing and fight back.

To date, only 30 U.S States have legalized medical cannabis and just 11 have legalized recreational usage. Not to mention the illegal cannabis market remains ~7x the size of the legal market in the U.S. Overtime as legality becomes the norm and the illegal market fades, the best small cannabis producers will be able to find their niche and make a living.

If you’re looking to become one of those businesses, to fight back against the giants and make it as a small cannabis business, then here are 5 tips to help get you started:

Offer A Unique, Artisan Product

One great way to keep up with the big guys as a small cannabis producer is to offer special, artisan strains of cannabis. Not unlike wine, cannabis strains get their unique flavors and aromas from a combination of their genetics and the unique terroir(climate, soil, sunlight, etc.) in which they are produced.

Small producers have the ability to produce distinctive varietals based on particular growing conditions and rare genetics. This is a great way to create a reliable niche and survive as a cannabis producer.

Consumers love variety. Take the recent takeover of craft beers as an example. Craft beers recent rise has been a nightmare for Coors and Budweiser whose main products have seen billions in lost sales to smaller beer producers. Something similar can happen in cannabis if small producers are able to create a unique, artisan product that offers consumers real value.

Green Farms For Green Patients

Cannabis may be green, but growing cannabis sure isn’t.  Industrial cannabis farms produce A LOT of pollution and use A LOT of power. That means opportunity for smaller growers.

Small producers have the ability to reduce power usage, reduce waste, and utilize organic processes that consumers love. Going green in 2020 is a great way to beat the industry giants.

Having that unique offering to entice consumers to spend a little more on their cannabis can be a game-changer. Furthermore, recent studies, like the one done by Atmospheric scientist William Vizuete at the University of North Carolina in Chapel Hill, have revealed volatile organic compounds (VOCs) are released by cannabis plants during production.

This research has pushed Colorado officials to launch one of the largest studies to date of pot farm emissions. The study’s results are set to push further green regulation on the cannabis industry.

Indoor farm pollution and energy consumption is a huge problem for the cannabis industry. Small producers can thrive by getting ahead of the curve and going green and organic in 2020.

Form A Co-op

One of the most common ways small producers have found to fight the bargaining power of larger producers is to form a co-operative. Co-operatives are groups of small cannabis producers that come together to bargain with sellers collectively. This allows them to get higher prices for their products and have better quality control.

Daniel Fink, owner, and operator of Down OM Farms in Nevada County, California gave his take on the value of co-ops in a recent interview with MJBizDaily saying:

“The purpose of this is to unite all farms that are trying to work cooperatively to gain greater market share. If we’re able to collectively market our product, we’re able to secure greater shelf space. With the force of the cooperative, we’ll be able to approach retailers and distributors with a consistent and quality-controlled supply.”

Unfortunately, many larger cannabis businesses have begun taking advantage of the regulations by creating license-staking mega-farms. This is where one supplier applies for a number of small grower licenses and then combines them all under one co-op to skirt regulations and confuse consumers.

Co-op’s can still help smaller growers get their product to the shelves at better prices, but they aren’t the powerful tool they once were for the industry. Still, without the support of a co-op making it as an individual grower is nearly impossible.

Utilize Industry-Specific Software

The final way small cannabis producers can fight back against the giants is through the use of industry-specific software. Seed to sale software can help small producers stay compliant with industry regulations, reduce overhead, and increase connectivity all while improving efficiency, product quality, and overall sales experience.

Whether you need CRM(customer relationship management) tools for B2B and B2C services, or you need a retail POS system, it pays to use industry-specific software.

Perhaps the best aspect of these software services for small cannabis businesses is the compliance features.

Big growers need to hire full-time compliance specialists to follow the ever-changing industry regulations. Software, and the compliance services that come with it, can help your small business maintain compliance without hiring a full-time compliance officer. Learning yourself and keeping well-maintained, organized compliance documents in software can help you save money vs. big growers.

As the cannabis industry matures, and Wall Street comes for its profits, small cannabis producers will be forced to work harder than ever to keep their businesses afloat. Thankfully, there is plenty of room for everyone in this green gold rush.

The explosion of the cannabis market over the past decade has brought with it, new industry villains. And it looks like our corporate overlords are here to stay.

The likes of Canopy Growth (NYSE: CGC), Tilray (NASDAQ: TLRY) and Aurora Cannabis ( NASDAQ: ACB)—each valued at over $5 billion, respectively—have taken over the cannabis industry, pushing hundreds of mom and pop producers out.

It’s no surprise really, with the total cannabis market in the U.S alone reaching an insane $77 billion market valuation in 2018, greed has come to roost. Last year alone over $10 billion in investor funds poured into Wall Street’s cannabis darlings.

Thankfully, there is still plenty of room for growth in the industry and that means plenty of time for small cannabis producers to find their footing and fight back.

To date, only 30 U.S States have legalized medical cannabis and just 11 have legalized recreational usage. Not to mention the illegal cannabis market remains ~7x the size of the legal market in the U.S. Overtime as legality becomes the norm and the illegal market fades, the best small cannabis producers will be able to find their niche and make a living.

If you’re looking to become one of those businesses, to fight back against the giants and make it as a small cannabis business, then here are 5 tips to help get you started:

Offer A Unique, Artisan Product

One great way to keep up with the big guys as a small cannabis producer is to offer special, artisan strains of cannabis. Not unlike wine, cannabis strains get their unique flavors and aromas from a combination of their genetics and the unique terroir(climate, soil, sunlight, etc.) in which they are produced.

Small producers have the ability to produce distinctive varietals based on particular growing conditions and rare genetics. This is a great way to create a reliable niche and survive as a cannabis producer.

Consumers love variety. Take the recent takeover of craft beers as an example. Craft beers recent rise has been a nightmare for Coors and Budweiser whose main products have seen billions in lost sales to smaller beer producers. Something similar can happen in cannabis if small producers are able to create a unique, artisan product that offers consumers real value.

Green Farms For Green Patients

Cannabis may be green, but growing cannabis sure isn’t.  Industrial cannabis farms produce A LOT of pollution and use A LOT of power. That means opportunity for smaller growers.

Small producers have the ability to reduce power usage, reduce waste, and utilize organic processes that consumers love. Going green in 2020 is a great way to beat the industry giants.

Having that unique offering to entice consumers to spend a little more on their cannabis can be a game-changer. Furthermore, recent studies, like the one done by Atmospheric scientist William Vizuete at the University of North Carolina in Chapel Hill, have revealed volatile organic compounds (VOCs) are released by cannabis plants during production.

This research has pushed Colorado officials to launch one of the largest studies to date of pot farm emissions. The study’s results are set to push further green regulation on the cannabis industry.

Indoor farm pollution and energy consumption is a huge problem for the cannabis industry. Small producers can thrive by getting ahead of the curve and going green and organic in 2020.

Form A Co-op

One of the most common ways small producers have found to fight the bargaining power of larger producers is to form a co-operative. Co-operatives are groups of small cannabis producers that come together to bargain with sellers collectively. This allows them to get higher prices for their products and have better quality control.

Daniel Fink, owner, and operator of Down OM Farms in Nevada County, California gave his take on the value of co-ops in a recent interview with MJBizDaily saying:

“The purpose of this is to unite all farms that are trying to work cooperatively to gain greater market share. If we’re able to collectively market our product, we’re able to secure greater shelf space. With the force of the cooperative, we’ll be able to approach retailers and distributors with a consistent and quality-controlled supply.”

Unfortunately, many larger cannabis businesses have begun taking advantage of the regulations by creating license-staking mega-farms. This is where one supplier applies for a number of small grower licenses and then combines them all under one co-op to skirt regulations and confuse consumers.

Co-op’s can still help smaller growers get their product to the shelves at better prices, but they aren’t the powerful tool they once were for the industry. Still, without the support of a co-op making it as an individual grower is nearly impossible.

Utilize Industry-Specific Software

The final way small cannabis producers can fight back against the giants is through the use of industry-specific software. Seed to sale software can help small producers stay compliant with industry regulations, reduce overhead, and increase connectivity all while improving efficiency, product quality, and overall sales experience.

Whether you need CRM(customer relationship management) tools for B2B and B2C services, or you need a retail POS system, it pays to use industry-specific software.

Perhaps the best aspect of these software services for small cannabis businesses is the compliance features.

Big growers need to hire full-time compliance specialists to follow the ever-changing industry regulations. Software, and the compliance services that come with it, can help your small business maintain compliance without hiring a full-time compliance officer. Learning yourself and keeping well-maintained, organized compliance documents in software can help you save money vs. big growers.

As the cannabis industry matures, and Wall Street comes for its profits, small cannabis producers will be forced to work harder than ever to keep their businesses afloat. Thankfully, there is plenty of room for everyone in this green gold rush.

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