Within any industry, you can be one part of a chain, or you can oversee a chain.
The benefits of being one part of a chain are many, particularly in the early phase of an industry. Within any new cannabis market that opens up, all the cannabis companies have one thing in common. They all need cannabis. It sounds simplistic but it’s a fundamental truth. Look at the Canadian Cannabis market, who are the biggest success stories? Cultivators like Aurora and Canopy. Because since day one, they’ve been farming and feeding the rest of the industry the commodity it’s built on.
Constellation Brands’ $4 billion investment in Canopy is impressive and creates rewards for early investors in cannabis stocks. But it represents the peak of what Canopy can achieve. The cultivators have built an industry and now, as that industry diversifies and grows, demand will sustain them. But they won’t have another tremendous day like that again.
The same is true for distributors, developers, and researchers. They’ve grown together with the cultivators and their success is dependent on them. Which is good inasmuch as they work together and one company’s success grows another. But one company’s failure affects the others too.
It seems Canadian cultivators might not have prepared enough cannabis to meet the high demand for highs. If cultivators aren’t growing it, distributors aren’t moving it. If distributors aren’t moving it, processors aren’t making products. Retailers have nothing to sell and they’re at the opposite end of the chain to distribution. But, if you control your own chain, you can be reactive and work off of data from multiple sources.
Green Growth Brands has end-to-end operations established within Nevada. Their cultivation operation currently produces around 300 lbs of product per month. That’s more than the Italian government grows for citizens in a year. Through their acquisition of Nevada Organic Remedies, they have access to The Source. The Source represents some of the finest dispensaries in Nevada and this Las Vegas branch was rated “Best in the City” by NPR.
This end-to-end approach means that data at the retail end of the operation can be used to make reports and forecasts. If GGB concerned themselves only with retail, these forecasts would become purchase orders to stock shelves. But GGB owns their own cultivation concerns. They can take information from different parts of their business to create knowledge and then share that knowledge throughout the business. Something you cannot do if you are a single company within the chain. Sure, you can become dominant in your part of the chain. If you’re an early adopter, you’ll also reap early investment.
For long-term investment in cannabis stocks, cannabis companies taking bigger stakes in the supply chain will be less susceptible to information deficiency and have more control over their future.
Interest in learning about the exciting Green Growth Brands investment opportunity?
You can download GGB’s Investor Presentation at https://www.greengrowthbrands.com/for-investors/investors-kit/
The above article was produced by Plexus Media. Learn more by visiting www.plexus.media
Disclaimer: Always do your research and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.