Supreme Cannabis Company Inc. (The) T.FIRE

Packaging restraints

[WiTSL22]

Inventory - check
Sales channel - check
Packaging Plant - bottleneck - why is it taking so long to bring Kitchener online?

[maritimedreamer]

If I recall correctly they already have 2 processing lines on site and the third will be a Kitchener which I believe is still waiting for HC approval (?). I suspect the third line may be to package third parties flower through the Craft collective brand. One must also remember the two active lines are probably not running at full tilt as we are not at max production if I recall.....

[WiTSL22]

Thanks for the response. I'm trying to understand why we are not at "max production" (supply, demand, or getting product to market).  My guess is packaging logistics.  Transitioning from selling product in large garbage bags to cpg has been painfully slow. What is your thinking as to why we are not at max production?   C'mon Pax pods!

[maritimedreamer]

Tbh I don't think the sales team was able to garner enough demand to go to max production....plus I suspect it is about costs and controlling inventory levels as they increase with demand....but also not a supply chain expert.... I think as you stated the b2b to cpg took ,icy longer then expected...and when they were ready the bottleneck was packaging.... now with H&F and packaging lines

[WiTSL22]

I agree with everything you are saying. However, as an example, stores in my hood are unable to get there hands on Jack Haze flower pre-rolls (7acres not sugarleaf).  The demand is there, pretty sure inventory is available.  Can't seem to package and get out the door. Thanks for the discussion - back to radio silence for me.

[nearnorth101]

at the end of March they also had $26 million in finished product as inventory so I'm not sure why 7 acres is absent from stores/online stores

[maritimedreamer]

Found this Ig post today...not exactly the same bottleneck we were talking about but was certainly another we had trying to manage flower output.... https://www.instagram.com/p/CBwCX0JDTyJ/?igshid=xz7o9pp3kbu5   thought I'd share....  

[johnale]

thanks maritime - one thing is for sure - despite thier missteps they have a mission to coninually improve and excellent corporate culture. Ill give them that.  As for this talk of inventory - as of March 31 they had:  26.366 mil in finished inventory - which means packaged.  so 3.5/7g of all flower strains, and pre-rolls, and craft collective packaged.  I wonder if vapes are

[maritimedreamer]

FYI a few recent pickups of mine.... all 3.5 as we do not have 7g 7acres here sadly....... Jean Guy - Jan 30 (they were selling sep '19 stuff for a while)...... JH (Feb 12).... Sensi (March 12)..... 

[johnale]

That's great -  so I'll give some more context: they had 12k/day pack rate to end of Jan, 24k/day thereafter. midpoint of Q packaging is roughly February 25th.  so if all offerings have sold pack dates beyond feb 25 - then we are looking at flower revenue of at least 13.3 mil.  as well - given the new price points -  supreme has the capacity to pack 25-30mil

[WiTSL22]

Thanks for sharing and doing the work.    It would be fantastic if this quarter's numbers aline with your model.  I will do my part to provide package dates when I see them. Even though your quarterly numbers are more than enough for me, I still think Kitchener is important in the short term.  Colin wouldn't have moved forward with the site unless short term revenue

[maritimedreamer]

I think the value in kitchner will come as craft collective starts to take off.... i believe this location is primarily focused on 3rd party packaging who may not have the approved facilities etc.  

[OptGreen]

Much appreciated joh, pretty well right on guidance with sales in the $20mil range or better...bought some Haze in Sask yesterday, packaged in Feb, 10th I believe and $10 off for a 3.5gm to boot. This is excellent progress for the last 6mos and should bode well for FQ1/21, considering COVID and especially with the transitioning from B2B to basically a new product menu for the rec side for the

[nearnorth101]

I'm hoping to that we see around $20M for this quarter in sales, time will tell, sales will definitely be higher then last quarter!

[maritimedreamer]

hey was checking out 7acres tweets and saw a reply mentioning PAX pods are now available at retailers in ON and will be on the OCS website shortly? Can anyone in ONtario confirm this.... if so this would be great!

[nearnorth101]

this will be great news, won't help this quarter much but will be a big boost for next quarter!

[OptGreen]

Maybe not so much nn, Beena/team have been ramping up huge in the last monthor so this last week of the quarter could be the biggest week to date...there may be anincrease in promotional deals as they are better positioned to generate the production to maintain resocking demand. It appears that much of the product that is getting dated is being cleared out as they make the transition to the rec

[OptGreen]

Agreed we will need to see the numbers nn but with pretty well all info pointing to a definate increace quarter over quarter just the trend for FIRE over the last 6mos is the opposite of most of the rest of the sector, like more pain and reduction at ACB et al and with more to come going forward FIRE will be even more impressive by next quarter and beyond as it achieves full production. At full

[johnale]

Thanks for the data point opt - will add this.  maritime - ya saw the tweet. looks like the pax pods are on the order sheets for the retail stores now - and they get first dibs before OCS online gets it. So that awesome.  retail sales >>>>>>>> online provincial sites.  I've seen the pax pod vapes in all the provinces now except PEI (quebec doesn

[OptGreen]

And there is a packaging problem? How do you know this? How do you know there is a problem of any kind? The page of MJ stocks I am looking at FIRE is the only green on the page. Please share this information of bottleneck in production. Sounds more like you picked up a little short drivel along the way but all factual info is of value, as anything is possible for the ground covered in the last

[WiTSL22]

You of all people respond to a discussion point I raise asking for feedback.  Its my thought that packaging is still an issue.  I didn't say there was a problem.  It's my belief. You of all people who push your beliefs on other people with authority - even though you dont have the foggiest idea what has been going on for the past 3 or 4 years - always wrong. Do the naive

[Byb1985]

to me it doesn't look like packaging is the issue. The ocs and stores in Halton are supplied with there product. This could be a good strategy as the region is considered to be of higher income. Thus being able to push profits. Now let's say you take a ride to Hamilton people are definitely not buying at these prices.

[SeanPrice]

Go fetch the ball doggy.  Who's a good boy?  Yeah you're a good boy! 

[Byb1985]

sean go back to the zenabis board and pump up the pencil shaving products they are selling as pre rolls

[WiTSL22]

Thanks for your thoughts Byb1985. The store I frequent is in Burlington - the only advertising in the store is for 7acres product - google images for relm burlington - massive wall signage!  The budtenders say they can never order enough supply to meet demand - even though product seems most always available on the OCS website - no idea why. JMHO that packaging could be an issue.  I

[nearnorth101]

I think as someone else mentioned the packaging plant is waiting for Health Canada approval. I can't figure out what the problem is too, they have lots of inventory , they shouldn't be running out of product in the stores or online. Nice to see that Blissco pur dew is back on the OCS site as I want to order some shortly

[theTransporter]

Consumers, especially those who are wanting to try new products, walking into a store is the best way to have them expereince 7acres.  The signage, product placement, and the recommendation of a budtender will maximize expore to the brand and product experience.   On a website like the OCS, you lose all that.  There is no "shelf space" and all products, regardless of

[OptGreen]

Agreed Trans and this will take some time to evolve, up until ~6mos ago FIRE was selling B2B with little to no exposure except for the med clientele and at minimal production. The LPs selling in the rec market from the jump have been getting all the exposure and along with that the product/brand loyalty. Beena/team understand this and she has plenty of direct experience in this area and what will

[OptGreen]

My apologies there WiTless, I didn't realize that you were not a wanna be drivel spewer, just sensitive.... now that you have clarified that you are just more lowlife prattle and we won't be getting an answer just more bullsite. The "naive on this board" aren't we just special.... "Packaging restaints" with no info of that being legit, niave is what you see in the

[RealistGhost21]

It is obvious Supreme does have a serious issue with packaging. About all the bullsh%?& from OptGreen, I am 100% agree with you and I cannot say better than what you said.