RE:RE:Canadian PartnerJust because Tinley will show revenues from copacking clients, it does not mean we are selling products in Canada or the US. All it means is that we will see some revenue from formulations, branding, packaging design etc. We are not co-packing for anybody with drinks gettng to market. I'm sure there would have been a NR stating so, if that was the case.
fib0nacci wrote: I guess Canopy needs a perfect partner in California with a 1% tax, or they are f'd using your analogy. Tinley has mentioned co-packing revenue will show up in the upcoming financials, which either means they have a co-packing client in Canada or California selling infused beverages? If this co-packing client & Tinley's sales in California are outpacing Canopy's in Canada on Tinley's upcoming financials I'd like to see you go onto Canopy's board djgt & give them hell, jk. To suggest Canopy doesn't need help is laughable, did you taste all of their drinks, c'mon? I would say having financial backing/support from STZ & having beverages taste so questionable comparable to Tinley's is noteworthy! Also, Canopy will have the same b.s daunting process Tinley's had in relation to receiving a cannabis bottling license in Long Beach California, let's not forget Canopy was very slow to produce & distribute beverages / 2.0 products in Canada with a license. Canopy's Hemp facility in Cali is not in Long Beach so it's not eligible for the 1% tax, and they cannot produce Cannabis-derived beverages at the Hemp facility, they will need to start from scratch or find a co-packing partner like Tinley. I don't think Aphria is as big a wild card as the companies who have expressed interest that some of our management has previously worked in senior positions for, think PEP & KO. Monster & Diageo are wild cards as well, Apha would simply be a possible Canadian partner for expansion, the other names mentioned above would be the ones likely to throw Tinley a bone in regards to financial backing or a buyout. Aphria's CEO suggested on the recent investor call that they were looking to buy a U.S asset, If you know you know, ya know? djgt wrote: As we see Canopy's numbers it becomes more apparent to me that we MUST have a perfect partner and roll out in Canada or we are f'd.
If we are waiting for Bevcanna that is a very disappointing partner and development.
Canopy doesn't need help, 1.2 million units without even trying and Constellation behind them.
Hexo hasn't really started yet but they too will figure it out with Coors behind them.
Aphria is the big wild card here. I don't recall hearing anything from them regarding drink strategy or any indication that they are building/licensing for drinks. Unlike Tinley, they are very clear with investors about their plans, timelines and updates of where they are in the process so I'm not sure what to make of their silence.
As was pointed out earlier, Canadians like their drinks and we especially like booze. So get our booze flavoured THC out there. With mgmt so good they should be able to adjust on the fly - just like the aforementioned CO's and their partners that are bev industry giants will - while they are banking 10-20x (10-20x LET THAT SINK IN!!! That's the run rate based on Canopy's numbers) the sales volume they are now. 10-20x seems like a good risk/reward to me to maybe change up priorities.
I've said it before, Q2 is make or break for me. Numbers need to be more than Q1 though my information suggests they aren't. Corporate developments are going to be very very slow. Based on my information I personally don't think a single corporate development that is in the investor deck will be realized in Q3 in any meaningful way that moves the revenue needle. I think the deck was simply to create excitement about ALL the great things to come for the PP and is not necessary indicative of what WILL BE achieved in a timely manner. In my opinion, Canada will be worked on finalizing without any update on what the hold up is or what they are trying to accomplish, Beckett's national grocery chains will be trialing and on-boarding, co-packers are being formulated and produced with no indication of what type of beverage they are making, scope of distribution, etc. Beckett's preparing to launch with no details on what the timeline is or what the roll out will look like; though I'll say just because they are a national grocer it doesn't mean it'll be a national deal. Think Hemplify... All in all, it will be another quarter of hopes and assumptions. As such a tiny company there will be no guidance or discussion of scope, progress or development details/hurdles.
Canopy just flipped the bev market the bird, let's see who responds because they've shown 1.2million proofs of concept!!