buzzNumber six on the most viewed buzzboard this week. It's something! I read the poster who felt Tnys tactics were wrong and we should have done Canada before California. Hindsight is 20/20 and in retrospect, it might have been a good move. Canopy managed to move at lightspeed once things fell in place and it shows in their drinks. The success of those drinks for Canopy shows that Constellation Brands was right about cannabinoid infused drinks being disruptors for alcohol style beverages. I've tried most of them and jmho but they aren't going to win any awards for flavour or effect for that matter, but they are rippin' off shelves.
The time spent by Tinley, market testing and reformulating our beverages should translate to revenue when we get our production ticking along in California. The execution of our new facility had some problems and delays which could have been anticipated but not expected. California was more difficult than it should have been with changing rules and regulations being re-written on the go and companies having to change course in mid stream. The Cali regulators didn't care that it cost Tinley a couple of thousand cases of product because they changed the labelling rules or some such. That may have cost Tinley half a million in revenue which is a big hit for a company that is being frugal with their build out dollars. I do think that shutting down their number 2 facility prior to having the LB plant running might have cost us a lot but it isn't clear to me how many stock runouts we had with our customers.
I do think that our Canadian sales will generate huge volumes from willing beverage consumers that will be looking for better products than Canopy's. So I can see a couple of million skus flying off the shelves pretty quickly and at high margins and that is just the thc infused. Becketts is supposed to be the bigger seller so there's that to look forward to also.
We've got US politicians working on descheduling, decriminalization or some other form of helping to pave the way for a US greenrush even though a lot of US MSOs seem to be relying on State law and they are taking positions in companies that are touching the product and vice versa with Canadian LPs moving on MSOs and bottling facilities and such in the US as though outright descheduling is a given. 6 States had it on the presidential ballot and they all passed so sentiment is pretty good. Trump dropped the ball on that one. He could have scooped that potential from the democrats and got himself another 4 years and yes it was that close. All of those people that don't vote would probably have come out to cast a ballot for a vice thats been going on since the 50's.
Tinley management doesn't seem to be doing anything to promote itself at this conjecture other than social media and point of sale promotion, although I did hear rumblings of some conventional ads and the 10x dollar value for every dollar spent. We've got hotshot promoters sitting on the sidelines that are reputed to have the ability to raise the dead. I guess we have to be sure of our manufacturing and distribution capacity before we go spending big bucks for tv ads and such.
Maybe Canada will be our big breakout! Fingers crossed for some huge numbers! glta and dyodd