Supreme Has FIVE Strategic Advantages Propelling Its Explosive Growth in the Pot Sector
If Supreme’s (TSX:FIRE) (OTC:SPRWF) future performance continues to outpace companies like Canopy Growth and Tilray, as it did over its first four quarters, then there could be a lot to be excited about this “premium producer” of the pot world. Through its Q2 2019 financials release, it appears that the upward trend for the company continues.
Majors such as Tilray, Aurora, Emerald Health Botanicals, and Namaste Technologies are already buying up Supreme’s products through guaranteed supply deals. Industry professionals across a variety of sectors in the pot space have recognized the company’s 7ACRES brand as Brand of the Year—which could very well lead to even more supply deals in the future.
In this newly legalized marketplace, it’s no longer going to be a race for who can produce, but who can sell through their product the fastest—and Supreme (TSX:FIRE) (OTC:SPRWF) is proving that there’s a high demand for their high-quality strains.
Supreme’s (TSX:FIRE) (OTC:SPRWF) success has been driven by five strategic advantages. These five advantages have helped Supreme outperform the competition as they grow (and sell) to become the predominant high-quality, premium producer in the Canadian pot industry.
STRATEGIC ADVANTAGE #1: High-Quality Reputation Leading to Record-Setting Sales
Through its 7ACRES subsidiary, Supreme (TSX:FIRE) (OTC:SPRWF) is the only licensed producer focused on cultivating high-THC, high-quality pot at commercial scale.
After recently adding 30,000 sq ft of additional licensed flowering room capacity, the company’s current production potential is 17,500 kg. Perhaps more astounding, is how the company added more than 80,000 sq ft of licensed flowering room capacity in less than 12 months.
The 7ACRES subsidiary is already a respectable craft pot producer; however by 2019 the estimated ‘full capacity’ rate could hit a whopping 50,000 kg. In contrast, fellow craft pot producers Broken Coast (who signed a supply deal with Aphria) announced in April that it was set to expand its capacity to only 4,500 kg annually.
Supreme’s (TSX:FIRE) (OTC:SPRWF) high-quality 7ACRES strains are designed for connoisseurs and medical consumers willing to pay more for quality products. Their success has shown Supreme to be leaders in mass cultivation, leading 7ACRES to emerge as Canada’s premier B2B producer. 
This unique ability to mass produce high-quality pot has drawn the attention of major producers. Purchase agreements with Tilray, Aurora, and Namaste prove this concept is working—Tilray has even agreed to white label Supreme’s (TSX:FIRE) (OTC:SPRWF) products under its own name, reflecting a high level of confidence in the 7ACRES brand potential.
While larger LPs can produce pot at lower costs, the pot giants have been unable to replicate Supreme’s (TSX:FIRE) (OTC:SPRWF) ability to scale up premium pot production capacity.
The result has been a series of record-setting sales markers; most recently witnessed by yet another significant revenue increase in Q2 2019. With its most recent $7.72 million quarter, Supreme (TSX:FIRE) (OTC:SPRWF) is currently outpacing such industry giants as Cronos Group Inc. and Marimed.
STRATEGIC ADVANTAGE #2: Connection to International Oils Market Through Massive Lesotho Deal
The global medical pot market has been projected from a conservative $145 billion, to a bold projection of $500 billion—extending far beyond the Canadian recreational marketplace.
Seeing the global opportunity for growth, Supreme(TSX:FIRE) (OTC:SPRWF) partnered with international medical pot supplier, Medigrow. The deal establishes a foothold in the medical pot oils market, providing Supreme (TSX:FIRE) (OTC:SPRWF) access to a potential 40,000 litres of pot oil per year.
Having already capitalized on its first-mover advantage in Canada, Supreme (TSX:FIRE) (OTC:SPRWF) is seeking to replicate this huge opportunity by aiming for market share in more countries set to legalize pot in the future. Supreme (TSX:FIRE) (OTC:SPRWF) is the first LP to move into the Lesotho market.
Securing international opportunities such as Medigrow’s 40,000 litres of pot oil potential per year brings significant global medical marijuana market potential.
STRATEGIC ADVANTAGE #3: Discerning Canadian Pot Consumers Seek High-Quality Products
“Twenty percent of the users consume 80 percent of the pot.” – Ontario Finance Minister, Vic Fedell
The term “cannasseur” may be a play on the words connoisseur and pot, but the potential market that targets these cannasseurs could be very substantial.
With its high-THC strains, the cannasseurs are Supreme’s (TSX:FIRE) (OTC:SPRWF) target demographic. The aim is for a premium product that discerning customers will go out of their way to purchase. Supreme (TSX:FIRE) (OTC:SPRWF) believes it has its finger on the pulse of this market, and its purchase agreements with medical supplies such as Tilray prove their product is of the highest (medical grade) quality.
Having already won the recent Canadian Pot Awards’ Brand of the Year, Supreme’s (TSX:FIRE) (OTC:SPRWF) reputation of the company is very highly regarded.
Supreme’s (TSX:FIRE) (OTC:SPRWF) first-mover advantage in the cannasseur demographic is critical: By being on 6 out of 12 provincial shelves as of day one, and with a superior product, Supreme’s (TSX:FIRE) (OTC:SPRWF) has already established its brand as a national pot leader from the start.
The company already has supply agreements in all of Canada’s highest consumption rate provinces. 
When looking at the liquor store model, only 10% of products are removed from shelves once the selection is established. This hints that the same could be in place for pot—meaning first mover advantage is very real, and Supreme’s (TSX:FIRE) (OTC:SPRWF) early entry with high-quality products is a distinct advantage.
Supreme’s (TSX:FIRE) (OTC:SPRWF) products aren’t all just high-THC, as the company also produces other strains that are high-quality and less potent strains, which are becoming popular and in-demand.