cannabis data

GUEST: Bethany Gomez, Brightfield Group, LLC
HOST: Harry Brelsford, The CannaTech Group 

Customer insight is all about analyzing your customers data to better understand who your customers are, what brands they like, and how to provide better customer service to them. Gathering, and evaluating this data not only allows you to make better decisions on how and when to sell, market, and improve customer experiences, it also provides you the opportunity to grow your business by increasing profits through targeting the correct customers.  Although, many businesses have insight into their customers data, they are not leveraging the information to optimize customer experiences.    Harry Brelsford of The CannaTech Group sits down with Bethany Gomez of Brightfield Group, LLC to discuss the importance of customer data and how to leverage it.  

Learn More @ TheCannaTechGroup.Com 

A new study from the National Institute on Drug Abuse suggests that 30% of those who use marijuana may have some degree of cannabis use disorder.

The study claims patients could depend on cannabis to keep their issues under control, like chronic back pain and anxiety. In 2015, the same group found about 4 million people in the United States met the diagnostic criteria for a marijuana use disorder.

Guests:

-Jessilyn Dolan, RN: Director, American Cannabis Nurses Association & Founder, Vermont Cannabis Nurses Association

-Christopher Smith: Publisher & Host, The American Cannabis Report

The #TalkingHedge...

https://youtu.be/LDH4CBnf_ik

Consolidation of the cannabis industry is inevitable as the market matures.

Heading into 2022, numerous forecasts predicted another flurry of M&A activity after an energized 2021. With nearly three months of the year complete, opinions are split on M&A activity so far.

A Canadian investment firm bankrolled by a unit of lawn and garden giant Scotts Miracle-Gro agreed to purchase New York-based marijuana company Etain Health for $247 million.

Toronto-based RIV Capital (OTC: CNPOF) said it signed an agreement to buy the female- and family-owned vertically integrated medical marijuana operator for cash and stock.

The transaction is believed to be the largest involving a female-owned business in the cannabis industry and gives RIV Capital – and, indirectly, Scotts Miracle-Gro – the opportunity to capitalize on the upcoming launch of New York’s adult-use marijuana market.

Etain, one of New York’s original five MMJ operators, has four dispensaries in the state, including a flagship store in Manhattan, and is in the process of expanding its cultivation and production facility in Chestertown.

The company was the only independent remaining among New York’s now 10 medical cannabis businesses. The other nine are multistate operators.

The #TalkingHedge...

https://youtu.be/U75Z4WbSO_I

After the World Health Organization declared a global pandemic on March 11, 2020, much of the U.S. began lockdown restrictions – a move that dramatically altered the cannabis business landscape.

By contrast, legal marijuana markets in 32 states and Washington DC were allowed to stay open during state-mandated stay-at-home orders, according to the Marijuana Policy Project.

Then came the stimulus and employment checks, as the U.S. government sought to keep money circulating throughout the economy to counter layoffs and untold numbers of shuttered businesses.

Early during the pandemic and the subsequent lockdowns, cannabis sales skyrocketed across the six U.S. adult-use markets tracked by Seattle-based data-analytics firm Headset.

By the week of March 16, 2020, cannabis sales in California, Colorado, Michigan, Nevada, Oregon and Washington state were already 38% higher than during the first full week of January that year.

After a brief dip in late March, when many states were in full lockdown, purchases continued to climb through the summer, peaking during the week of Aug. 31, 2020, at 59% greater sales than the first week of January.

Sales declined slightly toward the end of 2020 before surging again in the spring of 2021, around the marijuana industry’s unofficial April holiday, 4/20.

Since then, U.S. cannabis sales in those markets have been gradually slowing, possibly returning closer to a pre-pandemic normal, according to Headset.

Episode 919 The #TalkingHedge looks at MJ Biz Daily’s article...

https://youtu.be/hehq84BUbF0

Time to examine how Prerolls are sold: singles or multiples within a pack. When you compare the market share in the US and Canada, Multi-Packs of Pre-Rolls are more popular in Canada than single Pre-Rolls. For example, in 2021, Multi-Packs accounted for 79% of Pre-Roll units purchased in Canada, and only 25% in the US.

Focusing on different age groups and how they purchase Pre-Rolls in Canada, you can see that share of Multi-Packs increased as age groups got older.  

Female consumers in Canada also had a larger market share in Multi-Pack Pre-Rolls compared to Males within the same generation. Consumers in the US and Canada seem to prefer different package sizes of Multi-Packs.  

In Canada for example, the most popular package sizes of Multi-Packs are the 3-packs (36%) and 10-packs (27%). In the US however, consumers are purchasing 5-packs (37%) and 2-packs (14%) the most, with 10-packs of Pre-Rolls making up 13% of the market.

Episode 890 The #TalkingHedge looks at Headset’s data...

https://youtu.be/HJe60WOvaPE

#CannabisIndustry #CannabisData #MarijuanaData #CannabisAnalytics #MarijuanaAnalytics #CannabisSalesData #MarijuanaSalesData

Sales of cannabis-infused beverage market is projected to grow from $915.06 million in 2021 to $19,063.58 million in 2028 at a CAGR of 54%, as companies sought to capitalize on new cannabis consumers seeking a familiar form of consumption and those looking for an alternative to alcoholic drinks.

Cannabis beverage companies, for example, have been cashing in on health-related trends such as Dry January, when alcohol drinkers abstain for the month and look for alternative ways to relax.

The strong demand for infused beverages has not propped up prices – at least not yet. Despite the strong growth, the infused-beverage market remains a small portion of the overall cannabis product mix.

While it might be a ways off before customers can walk into a bar and order an infused drink, several licensed cannabis markets have begun the process of licensing public-consumption lounges, which many businesses see as a good fit for beverages.

Episode 885 The #TalkingHedge dives into brightfieldgroup’s article…

https://youtu.be/0L6f6P93kps

#CannabisIndustry #CannabisData #MarijuanaData #CannabisAnalytics #MarijuanaAnalytics #CannabisSalesData #MarijuanaSalesData

Cannabis stock prices and valuation multiples have been trending downwards since peaking in mid-February 2021 with multiples fluctuating around 15x.

They spiked upward in February 2021 on renewed hopes of federal legalization and have drifted lower ever since, despite improving profitability and cash generation, proven access to both debt and equity capital markets, strong cash positions, scaled operations, and the near-certainty of legalization, albeit with an uncertain timetable.

The market is likely to get an upward boost from news that the Safe Act will be attached to the America COMPETES (Creating Opportunities to Meaningfully Promote Excellence in Technology) Act of 2022, a domestic spending bill. We doubt that the bill will get any further now than before, but it is likely to give the market a temporary boost.

Viridian Capital Advisors projects Federal legalization in 2025 followed by a spike upward in growth. With legalization, they project two years of increased growth followed by slowing growth for the following years as cannabis normalizes into a regular consumer staple.  

The macro headwinds are considerable, but multiples are in excellent value territory. Legalization or banking reform is likely to bring new investors into the cannabis market with positive effects.

Episode 884 The #TalkingHedge looks at Viridian Capital Advisors’ report…

https://youtu.be/HTc_ONWz9Xk

#CannabisIndustry #CannabisData #MarijuanaData #CannabisAnalytics #MarijuanaAnalytics #CannabisSalesData #MarijuanaSalesData

We don’t often examine so many cannabis categories in a single report, but some interesting trends emerge when Capsule, Tincture & Sublingual, and Oil categories are compared in the US and Canada.  

When we look at the combined market share for the US and Canada, we can see that the Capsules, Tinctures & Sublinguals, and Oil categories (CTSO), are stabilizing at just below the 1% mark.

When we compare package sizes of these categories between the US and Canada, we notice that the trends are quite different between the two countries. For example, when we look at Capsules, the 0mg-5mg package size is the most popular in Canada with 35.4% unit volume. In the US on the other hand, the most popular package size of Capsules is 1000mg of THC with 32.7% of total unit volume.

Given the potential for maturation and innovation within established and emerging cannabis markets, there is plenty of opportunity for these categories to continue to grow and develop.  

Whether that includes new products or advanced formulations, or brands that speak to the ever-changing cannabis consumer, we’re excited to see what is to come for these cannabis categories.

Episode 883 The #TalkingHedge dives into headset’s data…

https://youtu.be/HxujCk7mTGg

#CannabisIndustry #CannabisData #MarijuanaData #CannabisAnalytics #MarijuanaAnalytics #CannabisSalesData #MarijuanaSalesData

There are many facets that influence sales trends within the cannabis industry. However, no question may be as alluring as: who is buying all this cannabis?  

In this report, we’ll explore the proportional sales contributions of customer demographic groups over time and compare these trends across the US and Canada.  

For example, sales to both Male and Female consumers have grown in the US, with sales to Females increasing slightly more at 55% from Q1 2020 to Q4 2021, and sales to Males increasing 49% in the same time period.  

By analyzing basket and category wallet share trends, we’ll gain a better understanding of how different customers shop and what types of products they tend to purchase.  

For example, younger age groups have an increased likelihood of purchasing Vapor Pens, while the opposite is true of Edibles.

Episode 881 The #TalkingHedge dives into Headset’s data…

https://youtu.be/ygW7qPGtnrU

#CannabisIndustry #CannabisData #MarijuanaData #CannabisAnalytics #MarijuanaAnalytics #CannabisSalesData #MarijuanaSalesData

Are any public cannabis companies potential Leveraged Buyout (LBO) or Recap candidates?

The recently announced Curaleaf (OTCQX: CURLF) acquisition of Bloom can be considered an LBO. The acquisition, valued at 8x 2021 EBITDA, included 6x EBITDA in seller notes as consideration.

Neither Curaleaf nor its subsidiaries will guarantee the debt, which will only be by recourse to the equity and assets of Bloom.

Only one company in Viridian Capital Advisors database- Red White & Bloom (OTCQX: RWYBF) appears to be trading low enough for a full buyout. Several other companies, however, appear to be capable of repurchasing a significant portion of their outstanding equity.

AYR Wellness is the only company on the list that publicly announced a share repurchase program, with others appearing to be candidates. Seventeen other companies tracked do not have analyst estimates but may be potential candidates.

Partial recaps may also be an attractive alternative means of providing cash to owners in private companies.

The combination of languishing stock prices and more available and lower-cost debt could lead the cannabis industry in a direction few of us would have expected a year ago.

Episode 873 The #TalkingHedge looks at Viridian Capital Advisors Chart of the Week...

https://youtu.be/7uCXVKLKn8s

Summary:

E-commerce & Future of Retail

Compliance in cannabis

Safe Banking's impact

Revenue model & exciting new markets

M&A activity

SPAC / IPO (NASDAQ: MAPS)

Cannabis stocks & Federal legalization

Stock Buybacks

Crystal Ball Predictions

WM Technology (NASDAQ: MAPS) signature consumer-facing platform, provides consumers with information regarding cannabis products, including online ordering, local retailer and brand listings, product discovery, and consumer education on cannabis and its history, uses, and legal status.

MAPS was founded in 2008 with a strong belief in the power of cannabis and the importance of enabling safe, legal access to consumers worldwide. Since then, MAPS has worked tirelessly to be more than just the most comprehensive platform for consumers.

Given MAPS strong global footprint, deep relationships with participants at all layers of the supply chain, and understanding of the policy landscape at the federal, state, and local levels, WM Technology is positioned to continue its role as a technology provider serving the cannabis economy.

Episode 872 The #TalkingHedge Interviews Arden Lee & Chris Beals of WM Technology...

https://youtu.be/clP2CbOOYgw

The volume of cannabis capital raised in the first two weeks of 2022 has been significantly lower than in any comparable period going back to 2018.

The average deal size was $7.0 million vs. $70.4 million in the same week last year. Three equity deals totaling $492M by AYR, Columbia Care, and Curaleaf skewed last year's totals.

The valuation gap between the most prominent companies and everyone else continues to be a prime driver of M&A activity. One M&A transaction closed this week with a total transaction value of $0.53M compared to three transactions with a total value of $431.4M in the prior year.

Episode 871 The #TalkingHedge looks at Viridian Capital Advisors’ Cannabis Deal Tracker…

https://youtu.be/k91s4FcoJgE

Cannabis sales surged in January after falling four consecutive months across all 15 markets Headset currently tracks, with 2021 sales totaling $1.84 BILLION.

California is the December sales leader with $442.7M. Year-over-year sales growth continues its single-digit trend with many states experiencing negative YOY sales growth.

Decreased average basket size trend continues, while the number of transactions continues to increase- indicating consumers are still going to pot shops more often, but spending less per transaction. This could mean consumers are trying to avoid higher minimum delivery requirements and opting to go to dispensaries and buying only what they need instead.

Brand concentration has remained relatively steady, however, it's anticipated that consolidation will pick up as Canadian companies and private equity and venture capitalists come into the space in anticipation of U.S. Federal legalization to snap up under-valued cannabis prospects in hopes of a legalization rally that'll spark the next wave of cannabis stock speculation.

Episode 869 The #TalkingHedge dives into Headset’s data…

https://youtu.be/8ep-oPfzwfs

#CannabisIndustry #CannabisData #MarijuanaData #CannabisAnalytics #MarijuanaAnalytics #CannabisSalesData #MarijuanaSalesData

Chatting with George Jage, CEO, Jage Media Inc. about crystal ball predictions within the Cannabis Industry and 2022 being the year of the brand.

Summary:

* George talks about retailers historically owning the relationship with the consumer based on limited shelf space and significant category duplicity.  

* Expanding distribution capabilities, more significant investment into brand marketing and emerging DTC models

* MJ Brand Insights is predicting brands will gain ground to own the relationship with the consumer moving forward

Episode 866 The #TalkingHedge chats with George Jage, CEO at Jage Media, Inc. | MJ Unpacked | MJ Brand Insights  

https://www.linkedin.com/in/georgejage/…

https://youtu.be/Cn8aSLVcSeY

the opportunities presented in the United States #cannabis market have been consistently increasing year over year since the inaugural states of Colorado and Washington voted in 2013 for #legalization.  

Despite the piecemeal approach we have seen in new states approving and implementing adult-use cannabis markets, we are seeing synergies within regional approaches and established operators improving scalability across distinct cannabis markets. With public support increasing for advancement in #MMJ and recreational cannabis, we expect to see the total addressable market in cannabis continue to increase.

By 2025, Headset is predicting that the total annual United States cannabis market has the potential to reach $45.8 billion.  

Episode 861 The #TalkingHedge looks at Headset’s report on Florida, New York, New Jersey, Virginia, & Ohio #CannabisMarkets…

https://youtu.be/0JbszyBwAv8

#CannabisIndustry #CannabisData #MarijuanaData #CannabisAnalytics #MarijuanaAnalytics #CannabisSalesData #MarijuanaSalesData

This week's discussion is focussed on reviewing the cannabis industry shifts we've seen in 2020, and what we are likely to see going forward in 2021. Our experienced guests share their insights on a variety of topics and developments including consumer behavior, state and federal legalization, what we should expect to see in 2021, and more.