Supreme Cannabis Company Inc. (The) T.FIRE

The Supreme Cannabis Co Inc is a Canada-based company engaged in the production and sale of medical and recreational cannabis. Its portfolio includes products that address recreational, medical, and wellness consumers. Its brands include BlissCo, Truverra, 7ACRES, Sugarleaf, and Hiway.

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Supreme Cannabis Company Inc. (The) > Good Q&A

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Post by DSEEGSon Mar 14, 2018 7:04pm

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Post# 27716854

Good Q&A

Hi John,

Thanks for doing this, have been a strong believer in FIRE for a long time now.

Wondering if you could speak towards what seems to me as a change in strategy from emphasizing the B2B market to B2C? Is Supreme still committed to the B2B model, if so why/why not? I feel as though the messaging previously was extremely B2B centric whereas now the messaging has been focused on the flight to premium product.

Thanks again for your time.

5

John_Fowler_JD

•

11m

No change in strategy: our B2B model was always predicated on not wanting to own the retail point of sale. In the same way traditional drug makers sell through pharmacy, we sell our medical cannabis through great LP partners such as Aurora, Emerald and Zenabis and coming soon Nameste and Bliss. On the rec side, the same way you don't go to the Bacardi store we plan to sell our cannabis through emerging retailers such as the OCS, other provincial outlets and the growing number of great private retailers looking to get a taste of the action.

The key for us is that, fundamentally, retail is hard. Great retailers make razor thin margins. We wanted to make sure we focus on our core strength: cultivating great flower at scale. It also allows us to really be a supporting supplier for our retail partners as we're not competitive with them. I think that as things role out, particularly in the early days when supply is tight, companies operating in multiple aspects of the industry will have unique conflicts to manage which, if not done correctly, can hurt long term success.

With respect to quality, that's been our focus since day 1. As you'll see with Nameste and Bliss, our quality and brand allowed us to enter into firm take-or-pay agreements at $6 per gram wholesale. It shows the confidence our partners have that our flower combined with our detailed trade education programs will allow them to retail our cannabis at premium price points to their patients thus ensuring both sides have favourable margins.