RE:Supreme Needs a More Robust Cannabis 2.0 ProgramI don't think anyone should be opposed to adding different 'profitable' revenue streams.
The knock on beverages is that it is a very small part of the market 1-2% and you have much bigger companies (canopy, hexo... ) already way ahead in the game. Its a difficult space for supreme to play in, and they would not have a competative advantage in any way.
Supremes advantage is quality flower - and quality oils and vapes - at a scale that is way above the micro LP (giving a significant cost advantage - and thus price in the market place), and one that the large LP's can't seem to match. Their brands are also great - and definitely viewed as 'prmeium quality'. Listening to last conf call - their brand awareness and position is increasing slowly and i believe they were top 10 in every category, I think top 7 for 7acres.
Look at their Hiway brand - a micro cultivator can't produce a profitable low cost flower product and the big LP's cant match the quality. There is a competative advantage there for supreme. We should see that play out - and - thats 40% of the flower market - which supreme hasn't been a part of since this quarter and we will see in february earnings.
At the right price point and distribution, they should have an advantage and carve out a significant market share.
The clincher is the proprietary strains - (jack haze) which is an ace in their sleeve. Plus future strains as well as craft collective which they will produce in house. not many Lp's can swing to high and low end like supreme and the 7acres facility. same with oils in langley - pur dew and sugarleaf. 510 vs pax era pods.
I think at this point Im leaning on Beena having that extensive CPG experience and mandate to deliver profitable growth. She knows what shes doing, and Im comfortable watching her navigate this space.