Ready for 2020...whatever it brings.... It doesn’t take long to notice 2019 was a bloody year across the board in the cannabis space. The market has evolved and the hype train has left the station. We have now entered a phase that will divide the strong from the weak......I am certainly not the first to say this nor the last. I’m starting to see why Supreme played the slow roll from day one. Supreme saw the choppy waters and stayed their course and were not pressured to deviate from plan. No x mil sq ft grow ops, no massive kg predictions, just the laser focus of quality at scale and mastering their craft @ 7acres. As the year played out it was obvious nobody knew what they were doing, esp the gov, and what success truly will look like. Even today the government, market and lp’s are trying to figure it out. Some LPs have a clearer vision then others. There is still significant risk with Fire, as everyone else.
One thing we all know is cannabis is not going anywhere and will only pick up steam....my wife, for example, had her first THC experience this weekend and enjoyed it. She does not smoke, so she wanted something edible.... peach/mango gummie was the winner. She enjoyed it, realized THC isn’t some crazy trip (strain dependent lol), and because of this is more open to trying new offerings. I bet there were many such examples over the holiday season and over tome we shall see the cannabis stigma fade. Even for seasoned consumers, they will try new forms as they roll out.
Supreme will answer this call with products that more deserning/quality seeking users will enjoy.
Quality full spectrum extracts with top level pax partner and cold pressed hash to name a few. Supreme’s pre-rolls/convenience offerings will be a great intro to their quality mantra. They trim their buds tight, so there is going to be some quality trimmings going into those pre-rolls. I never thought pre-rolls would be so big in the legal market but they are and 7acres changed course to offer them. I believe a few years back they did not intend to get into them(could be mistaken)Supreme has built a solid foundation with 7acres. Product is well received, viewed as some of best out there while winning brand of year x 2. Best thing, we have yet to see 7acres in full production and optimized. Those margins and bottom line will look great on our core asset that also secured us a tier one loan with BMO.
The focus on quality has maintained through their other brand acquisitions of Blissco and Truverra. Blissco pur dew whole flower CBD is a hit screaming quality from the oil to the glass bottle. How many tincture bottles will blissco produce per year again? more revs no? KKE oil, some of the hardest hitting full spectrum oil out there that actually tastes good. Nice margins there. Sugar leaf will be very good too especially when it comes from same dried flower @ 7acres. More revs. More KK offerings, better strains, eu expansion, Medigrow (MG) supply and more to come.
2020 is coming around the corner. The negative news seems to have somewhat subsided and positive news is coming back. We are hearing the push for more retail because that is what the consumer wanted all along. We are hearing calls for better quality, because oh wait that is what consumers want. All this just means more FIRE hitting the shelves to serve the wanting customers. It was fantastic to hear Suprme executed and got their products on QC/NFLD shelves before end of Q2 leaving two full Qs of revenues with 10 provinces instead of 8...... things are coming together.... Fire is much stronger then sp dictates.... maintain, buy, sell....do as you see fit, but I’m sure excited to see where this Fire path will be blazing. 2020 has to be our year! end of morning rant ...