Jeremy Johnson

Executive Summary: Possibly some of the #wisest words ever written are below 👇 #Cannabis

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I've seen a ton of cannabinoid CPG brands advertise with "made with organically grown hemp" and I support the sentiment 100%... But why not maintain organic status through to the finished product? Why stop using organic inputs in your hemp derived products once the hemp leaves the field? First of all, any company can claim they grew a crop organically, but without the USDA organic seal (aka a third party audit), it is just their word with no guaruntee organic practices have truly been followed. Second, using non-organic solvents and processing aids can introduce harsh chemicals into the raw cannabinoid ingredients. Then, formulating finished products with non-organic ingredients opens another door for harmful contaminates to be introduced into products. At Kentucky Heritage Hemp we farm our hemp using 100% organic practices and we have a USDA organic certification to prove it. We don't stop using orgnaic practices at the farm level either. We extract, distill, isolate and produce finished products, to 100% USDA organic standards (with the USDA organic cert to prove it). For our clients, we provide USDA organic extracts, distillates, isolates and finished products, so that they can make claims that surpass "organically grown" and put the USDA organic seal onto their products when applicable. In order for a finished product to carry the USDA organic seal, it doesn't just have to contain USDA organic ingredients, it also needs to be produced/handled in a USDA organic facility until the product is in it's final state (sealed, labeled, etc.) Without a doubt, it can be a bit of a burden to go through the USDA organic certification process, maintain proper records/protocols, and undergo an annual audit. That's why KHH has started to offer private label products, like tinctures and salves, under our USDA organic seal. Meaning your company can have us co-manufacture a tincture or salve under your brand name. Shipped direct to you, ready for sale, out of our USDA organic certified (and annually audited) facilities. That allows you to offer your customers USDA organic products, without the hassle of having your facilities go through the USDA organic certification process. If you prefer to manufacture your own products and would like to pursue a USDA organic certification for your facility/manufacutring processes, we are happy to help provide you with some guidane towards that goal too. Alternatively, if you want to simply further a claim from "organically grown hemp" to "organically grown, extracted and refined cannabinoids", then we can help make that happen as well. Want to learn more about USDA organic cannabinoids, our quality standards and working with KHH? Visit KYHeritageHemp.com or shoot me a message here on LinkedIn. #USDAorganic #CBD #CBG #CBDproducts #cannabinoids #health #organic #CPG

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I’ve been working in the cannabis industry for 6 years. Here’s the toughest part (aside from the stiff competition, startup capital needed, federally illegal status, and plenty of other things): Each state is its own market. What works in Illinois may not work in Florida. Either because the market is different or the specific regulations don’t allow it. Does this make branding and marketing a CPG product ridiculously challenging? You bet. Is it worth it? Most definitely. (Just ask our clients!) Despite the hurdles, this is still a growing industry. And it’s one built on the quality of your relationships. Over the past 6 years, I’ve been able to make some great partnerships in… - Construction - Compliance - Insurance - Banking - Media - PR Our national network of experts and freelancers helps our clients understand both niche markets and broader landscapes. And our partners are a HUGE reason we’re able to deliver quality work. This industry wouldn’t be half of what it is without the people. If you’re looking for a trusted partner to help understand the nuances of your market, feel free to reach out. I love chatting cannabis!

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The #cannabisindustry seems to be interested in HubSpot!!! Love it! 💚 The cannabis industry had grown leaps and bounds since I joined back in 2016. (2016!!!!??? It can't be that long... can it? 🥺😱🧓) I have seen the industry go from hiring only stoners and burners, to hiring the top executives from other industries. No longer is cannabis business done on the couch. It's grown up, put an clean shirt, and at least works from the kitchen table 😅 With professionalism, comes the software to track, implement, and grow. HubSpot has been one of the many tools in my tech stack that have helped me grow business and keep the team on the same page. What features of #HubSpot do you and your team use the most? Do you use it for #B2B or #B2C? Are there any features you wish were better tailored to the cannabis industry? 🍃 What other software providers are in your trlech stack? 🥞

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Holistic Approach to Revenue Operations A common error in management is compartmentalizing sales, marketing, and operational roles too rigidly: that all teams are aligned and working towards common goals. Marketing should generate leads that sales can close effectively, while operations should ensure fulfillment capabilities match sales efforts. Recognize that while sales teams are directly responsible for driving revenue, other departments like marketing and PR play crucial supportive roles that prepare the ground for sales to succeed. Each function strengthens the other, and their activities should be integrated rather than segregated

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The landscape of cannabis is clearly shifting. The winners in the New World of Cannabis will be the ones who do these four things: Form Strong Partnerships …with complimentary operators in their supply chain. …with providers of capital. …with strong vendors. Maintain Equal Scale Across All Investments …so their manufacturing lines don’t sit idle. …so their marketing spend actually reaches people who can buy from them. …so they aren’t handicapped by an oversized cultivation facility. …so they don’t throw good money after bad. Operate Lean …because change is coming and change requires capital. …because bigger money is coming into the market that can lose money for a LONG time. …because prices will drop, elbows will get sharp, and assets will be cheap. Get Really Good at One Thing …or be a master (read: market leader) of none. …or someone else will, and they’ll do it cheaper than you. …or have a ton of money, becuase being really good at one thing is expensive, and being really good at a lot of things is REALLY expensive.

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🚀 Exciting Times for Cannabis! 🚀 Coming from a background in CPG and alcohol, it's incredible to witness the rapid growth of the cannabis industry in both the US and Canada. Recent financial data from Beacon Securities Limited reveals that cannabis is set to outpace major players like Coca-Cola, Marlboro, and Budweiser in market growth. This presents a remarkable opportunity for investors as the sector remains undervalued compared to alcohol, tobacco, and other CPG giants. Here's a quick snapshot: 🔹 EV/Sales ratios for 2024-2025: Cannabis shows significantly lower ratios compared to alcohol and tobacco, suggesting it might be undervalued. 🔹 EBITDA CAGR for 2023-2025: Canadian Licensed Producers at 65% and U.S. Operators at 42%, far outpacing alcohol and tobacco. This indicates not only the robust growth potential but also an exciting investment opportunity as cannabis continues to expand. Thanks to Benzinga Cannabis for highlighting this information. Looking forward to seeing what is next. Jeni Cohen Cassie Tomaselli Elana Cohen Lori DeCarlo Lori Ferrara Elliot Lane Patrick Lane Emily Lehmann Kaitlin Domangue #CannabisIndustry #GrowthOpportunity #Investment #CPG #Alcohol #Tobacco #CannabisGrowth #MarketTrends #BusinessDevelopment #LKPImpactConsulting https://lnkd.in/g6kNXRiq

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Approach PR-Marketing, Marketing-Sales, Sales-Customer Success as if you are the customer, because at in the end it’s ALL about the customer or else your just another salesperson. In 2024 and years to come customers will become hyper aware of which brands are authentic and which are just out for quick cash. Yes I just said that, meaning $ shouldn’t be your driving force because if it is, you just built your house upside down.

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Becoming overreliant on 3rd-party platforms is always a risk in marketing, but more so for cannabis than most other industries. I can’t tell you how many times I’ve seen companies get their Facebook pages shut down and Instagram posts removed. And don’t even get me started on ad accounts. Restrictions make organic social and paid advertising difficult, but they also make influencer marketing a lot harder. Many influencers are afraid to endorse cannabis products because their profiles – which are often their livelihood – might get shut down. I’m not saying you shouldn't use 3rd-party platforms. It’s entirely possible to be successful with them if you're careful (thank your paid and social media people next time you see them). But I am warning you against becoming so reliant on these platforms that suddenly losing one of them will cost your brand a significant chunk of revenue. The solution is to develop owned customer acquisition channels. These are channels that your brand more or less controls end-to-end. Specifically, you need to invest in SEO and email marketing. Focus on driving organic traffic to your website (with SEO), and then funneling that traffic into your email marketing system (whether or not they buy right away). To a great degree, you control these channels. The quality and quantity of SEO work you do determines how much traffic you’ll get and how valuable it is. Google Updates are a small risk, as the last few updates have favored e-commerce brands for product-related search terms and left local search terms alone.  Assuming you aren’t violating Google’s TOS (with a bad SEO strategy) and aren’t breaking the law, Google doesn’t care what you put on your site as long as it’s what people want. They’ll rank you, and you can use those rankings to grow your business. And yes, email platforms can shut you down. But they generally give you fair warning; you’ll have time to evacuate your contacts and email flows before they lock you out (not so with social media). You'll never have complete control of any platform you use for digital marketing. But if you diversify and invest in highly stable channels along with the volatile ones, your cannabis brand will be safe if (when?) a platform shuts you down. If you’re ready to reduce your cannabis brand’s reliance on 3rd-party platforms and drive sustainable growth through SEO, send me a DM. Let’s talk. 

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Yes, people search for #cannabis products by name and it can add measurable new revenue to your #dispensaries bottom line, DM if you think it might be time to upgrade your eCommerce.

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🌿 Despite #high hopes, the #cannabis industry has faced significant challenges. Turns out, it's not as #dope as investors toked it'd be. 📉 The leading player, Curaleaf, saw its value drop from a peak of 💲11.5B in 2021 to 💲4B today, highlighting the downturn in #marijuana stocks. The #market: 💰 Total U.S. Cannabis Market (legal + illegal) is valued at 💲75B, while the the legal US TAM, currently 💲32B, expected to grow to 💲43B by 2027 (source: BDSA) 🗽Just the New York state TAM is a hefty $6 billion cannabis market (and if you've strolled through NYC lately, you'll know it's not just the hot dog vendors adding to the aroma). 🌿 🍺 In comparison, the U.S. #Alcohol Market was valued at $247B in 2021, with the beer market alone at $115 billion, a stark 8x times cannabis TAM. 💼 Diageo, the leader in the spirits market boasts a 💲76B market cap, 💲21B in revenue and over 💲4B in net income. AB InBev, the leader in beer, commands a 💲120B market cap, 💲60B revenue and 💲5B net income. Some analysts believe that if a cannabis leader emerges, it might eventually reach similar figures. A long way to go for Curaleaf and others... 🌍 Besides the US and Canada there's potential in Europe with countries like Germany, Poland, and the UK that loosening cannabis regulations. More are expected to come. The #issues: 💸 Profitability hurdles include prohibitive taxes, with cannabis businesses unable to deduct common expenses, resulting in significant tax burdens despite losses in net income. 🤝 Fragmentation plagues the industry, with no player holding substantial market share, signaling a potential need for consolidation through mergers. 📊 Data on major companies: 📈 Revenue (2023) Curaleaf - $1.35B Trulieve - $1.22B Green Thumb Industries (GTI) - $1.02B Verano - $879M Cresco Labs - $825M 💹 Gross Margin (2023): Trulieve Cannabis Corp. - 52% Verano Holdings - 51% Green Thumb Industries Inc. - 49% Cresco Labs Inc. - 48% Curaleaf Holdings, Inc. - 45% 💼 EBITDA (2023): Green Thumb Industries Inc. - $291M Verano Holdings - $284M Trulieve Cannabis Corp. - $263M Curaleaf Holdings, Inc. - $239M Cresco Labs Inc. - $125M 👥 Total Employees: Curaleaf Holdings, Inc. - 5,650 Trulieve Cannabis Corp. - 5,400 Green Thumb Industries Inc. - 4,561 Verano Holdings - 3,900 Cresco Labs Inc. - 2,760 💼 Market Cap (may 3rd 2024): Curaleaf Holdings, Inc. - $4.17B Green Thumb Industries Inc. - $3.13B Trulieve Cannabis Corp. - $2.33B Verano Holdings - $1.75B Cresco Labs Inc. - $1B Fast forward a decade, where do you envision the cannabis industry? Do you anticipate pharmaceutical companies making their mark in the cannabis market? Could tobacco or alcohol giants venture into cannabis diversification?

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Instead of wine, let’s look at craft cannabis vs craft beer, which holds 24.7% of total US beer market share at retail! This means craft cannabis will be the same? Right? Not really… At wholesale, (where they actually make their money) craft brewers only hold 13.3% of sales. In some ways, yes, there are models in this category that could be feasible for cannabis companies to follow, (Tilray thinks so…) But that’s the point….TILRAY is the #6 ‘craft brewing’ company in the country… Simply put, ‘craft cannabis’ doesn’t equate to ‘craft beer’. “Craft Brewers” are defined by the Brewers Association as: SMALL Annual production of 6 million barrels of beer or less (approximately 3 percent of U.S. annual sales). Beer production is attributed to a brewer according to rules of alternating proprietorships. INDEPENDENT Less than 25 percent of the craft brewery is owned or controlled by a beverage alcohol industry member that is not itself a craft brewer. So… you can own 3% of total national market share, and Anheuser Busch can own 25% of your company, and you’d still be considered a craft brewer. This includes companies like: Boston Beer Co. (2,793 employees), $2B in sales Sierra Nevada (1,050 employees), $320M in sales Tilray , (1,600 employees*), $152M in sales *includes cannabis employees One vital point being missed in the comparison between wine and beer and cannabis… we have to note that both wine and beer exist in complex supply chains, wher the grower of the grape very often may not bottle or brand (i.e.selling bulk), and where beer requires hops and barley, which are grown by farmers. So… who are the cultivators in this scenario? The brewers? Or are they barley farmers?

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Awesome morning🌅, Entrepreneurs, Professionals, Leaders, and Creators! Check out this excellent and insightful article by HIGH TIMES A.J. Herrington! Ben Kovler, the CEO of Green Thumb Industries (GTI) is pitching a merger between his company and The Boston Beer Company, the manufacturer of the Samuel Adams family of brews. The Boston Beer Company has a market capitalization of about $3.6 billion, while Green Thumb Industries (GTI) is worth about $2.8 billion! Alcohol consumption is declining with young adults drinking less than previous generations. Stock market analyst Aaron Grey, CFA, CPA, CEO of Alliance Global Partners, said on Monday that the proposed merger would allow The Boston Beer Company to enter new markets as alcohol sales continue to decline. Aaron stated that a Green Thumb merger with Boston Beer would give the cannabis company a listing on the New York Stock Exchange, making its shares available to a wider base of shareholders. Read more below 👇🏿

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Benzinga Cannabis takeaways: 1. Talked to a few marketing agencies as I continue to think growth at a reasonable cost is one of the most important metrics in cannabis. - One agency talked about how they could help my business achieve a 10x return without much substance or details as to how they're able to achieve such an outsized return. - Another, checked in with me personally, talked about aligning interests between our businesses and wants to explore a strategic partnership. The latter, was received much better. Wish agencies would stop flashing high level big return numbers without meaningful detail and case studies to back it up. I smell bs. 2. Majority of folks think Florida passes recreational cannabis in November. However, I now understand 5 and maybe 10MG hemp intoxicating products will still be allowed for sale in Florida even if they take a more restrictive stance on hemp. I'd love to increase exposure to Florida operators however I'm not certain the ballot will reach the 60% it needs to pass. 3. No one knows about rescheduling. Not even worth hearing opinions on it as the government continues to be a rather black box on when and how this will happen. Show me time. Enough talk. 4. Prohibition has never worked and it won't work with intoxicating hemp products. This was a lightbulb moment for me because it's true. Intoxicating hemp products are here to stay and at worst we will see some sensible regulation which would still make the market more attractive than the non-sensible regulations in the legal state markets. 5. Equity capital is still very restrictive however more companies achieving profitability and righting the ship. Some large pensions sniffing around and may make a play. Debt lenders out in force. I stay away from those financing options. 6. Some investors not even interested in new limited market states because they know all to well that markets continue to follow a pattern of explosive revenue and high margins to slower growth, oversupply, increased competition and margin compression as everyone fights for their piece of the market. Wise take. I've passed on entering new markets because the early value achieved is short lived. 7. Border town dispensaries in MI are crushing it. MI has better product, pricing and taxes than IL and dispensaries on that boarder are enjoying strong foot traffic and large basket sizes. 8. Beverages. Really showing up and all have positive feedback from their launch into the intoxicating hemp market. Larger TAM, bigger POs, better payment terms. What's not to like? 9. Really awesome people. The cannabis community, despite many bad actors, has one of the best communities and is what keeps most of us in the industry. Free the plant | People > Profits | Plant Medicine ☘

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Want to know the biggest mistake I see #cannabisindustry operators making? It's not understanding the graphic below 👇 I see it time and again. "We need marketing" followed by "Why aren't they closing sales." Or "Why won't this PR agency guarantee me article placements?" Or "I hired a sales team and it's working for our wholesale business, but not doing a thing for retail" The list of examples could go on for a bit... The reality is: Every. Single. Cannabis. Company. Needs. It. All. They just don't know that. They THINK they need 1 or 2 of them, and then some slick sales person promises them the world. They sign on with a marketing agency expecting sales, or a publicist expecting advertising, or SOMETHING like that. 6 months later the account rep is catching heat for it. The business owner is mad and likely hurting in the pocketbook region. The agency's reputation is damaged. Or... They hire a new CMO and expect them to run a sales team, or they hire a new VP of sales and wonder why the marketing calendar is hurting and all the article pitches keep getting rejected. Or... They hire someone and expect them to do 5 jobs, or they hire an agency and expect the same level of commitment as an employee. Or. Or. Or. Many Scenarios. Same Errors. Every Time. And it's always the operator's fault. ALWAYS. It's their duty to ask the right questions. Here's my three best tips to start you off right: 1.) Clearly explain your goals, and ensure any KPIs align with them. Want more sales? Tie success to that metric alone, and make sure you get a detailed explanation about how each planned activity drives towards that goal. 2.) Agency's scale faster, Internal Teams scale better. Early stage companies need strategy internally and to contract out the work, late stage companies need to contract out the diversity of thought (and occasionally the work). Hire accordingly. 3.) Think holistically. CROs and Rev Ops people get a bad rap for being "just another sales guy" but with some spreadsheets... and that just isn't the case. A good CRO (Even a fractional one, or an agency filling that role) is the glue that holds the front end of a business together. Find one of those and you can ignore the rest of this post. Have any other tips on this topic? Drop them in the comments 👇 Disclaimer: This post is brought to you by a former sales person who got a master's in PR (that he rarely uses) and parades around as a marketer (and somehow people believe it). 🤷‍♂️ Take it with a grain of salt. 🧂

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Only 7% of wine sells for $21+ per 750ml. 77% sells for under $10. Why do people think cannabis will be different? When I say “Cannabis is Corn, Dispensaries are Gas Staions.” I often hear back: “Cannabis is like wine, not tortilla chips! There’s a stratified market with a high end.” We’ll, I’m guessing they don’t know the data above, or that only 2% of wine drinkers typically spend $100+ on wine, and that jug wine accounts for a whopping 44% of the market. There’s a stratified market within corn that affects price as well. You can look up the USDA Standards for Corn for an objective scale. You could also imagine a local farmer selling their corn to a high-end farm to table restaurant vs. a large organic farmer selling to a tortilla chip manufacturer vs. a mega farm growing their corn for animal feed. While the % of corn that sells for ‘luxury’ prices is far less than the 2% figure above for wine, the stratification of each market is similar. The same goes for cannabis. 40-50% of cannabis consumers will smoke the equivalent of jug wine. Another 30% will smoke the next tier up. 98% will not be buying luxury. One last thing to consider: The equivalent of jug wine (mass produced greenhouse and sungrown flower) is going to get better and better and better as more money pours into the industry. The gap between ‘mids’ and ‘fire’ is going to close rapidly. **This is based on 2020 data compiled by SFSU - so the numbers would need to be adjusted for 2024**

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Want to know what cannabis content gets 🚩on Instagram? Rapidly evolving AI detection spots EVERYTHING from images to text to audio. There's no discerning journalism, news, educational content vs sales. Yet they have no problem accepting dollars for sponsored ads promoting the sales of legal cannabis, and targeting us as a demographic to buy weed themed consumer items, while also censoring any cannabis related. I've been seeing patterns and testing content watching Meta's contradictory move to a zero tolerance policy. I'm reposting all of my 🚩 IG content with observations on what got flagged and why to X (Twitter) with #censoredbyMeta, so you can see the patterns and avoid getting your IG account shut down. Follow me on X (Twitter) @fruit_flower_co https://lnkd.in/gtkQ53gw

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We love email marketing in this house, especially for cannabis and psychedelics businesses. Imagine this: Your Instagram gets shuts down ‘cause you’ve been posting cannabis flower and using trigger words. Your carefully curated feed — all gone. Your thousands of subscribers? Dusted. Your loyal customers? Lost, marooned on the internet, with no way to find you. Too many dispensaries out here rely only on social media. The latest issue of High Notes takes a peek at why that’s a no-no. Read more at the link in comments & subscribe for cannabis & psychedelics marketing tips. #cannabismarketing #emailmarketing

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I'm changing my tune on whether this is a good time to work in the cannabis industry... Whenever I get outreach asking about it, I've been historically saying I'd avoid it... I just think it sounds cooler from the outside than it really is. Yes you get to go to tons of events where a lot of people are smoking weed (if you’re into that - which I’m not really TBH - just puts me to sleep). And yes it’s a “growth” industry - but mostly driven by units since pricing in most markets open a few years are compressing. What people outside the industry DON’T appreciate: ❌ it’s immature - people who’ve moved over from legacy wo a ton of “biz” experience or came from alcohol or big CPG. And no tech and processes - so much done on spreadsheets or w crappy cannabis software. ❌ uncertain reg environment - things change on the daily both on state and federal level - and even if you execute PERFECTLY you still may be barely profitable (if at all) and your biz may not be worth much unless something happens on Legalization / 280e / banking etc. _____________________ So when someone I’ve worked with in another industry asks about an offer they’ve gotten from a cannabis co - I’ve almost always said tread carefully… probably more risk than reward for the next 1-5 yrs. I’ve been bullish LT forever - it just MAY take 5 yrs - so be prepared for getting punched in the face on the daily if you join. ___________________ But I think things are about to get REEEEAAAALLL interesting... ▶️ GTI proposing to merge with SAM / Boston Beer?! ▶️ Cansortium actually merging with Etain ▶️ S3 imminent?!?! 🤞 ▶️ Hemp-derived beverages still crushing (despite House bill & short-sighted states trying to rein it in) ▶️ Curaleaf coming out in support of hemp-derived beverages under Farm Bill ▶️ Hearing rumblings of other potential deals in next few wks (gotta get em done before financiers go to islands for the summer LOL) Yes, consolidation needs to happen in the industry - it will come from tobacco, pharma, possibly even CPG, but mostly from alcohol IMO. So, yeah - I think it could be an interesting time to come into the industry now.. the water's no longer ice cold... it’s NOT boiling hot either - so I wouldn’t jump in blindly… But starting to think our LT theses may be coming true a bit sooner 🤞🤞🤞🤞🤞for once.

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