Supreme Cannabis Company Inc. (The) T.FIRE

INDUSTRY NEWS: Beena/Interview: in the Drivers seat:

[JaCkSnap]

Discipline, innovation drive profit: Q&A with Supreme Cannabis CEO Beena Goldenberg PUBLISHED JUNE 2, 2020 | BY MATT LAMERS Veteran consumer packaged goods executive Beena Goldenberg sees parallels between the development of the natural organic food market and the cannabis industry. Rigorous executive discipline, a more thoughtful approach to mergers and acquisitions and targeted product innovation are important factors for corporate success in the cannabis space, she said. Before joining Toronto-headquartered Supreme Cannabis as CEO, Goldenberg headed up Hain-Celestial Canada a successful producer and distributor of foods and products. Goldenberg grew Hain-Celestial Canada from 40 million Canadian dollars (CA$30 million) in revenue in 2005 to more than CA$300 million ($221 million) in 2019. 8th Edition, Marijuana Business Factbook She rejects the if you build it, they will come mentality that has come to dominate some of the largest Canadian cannabis businesses. Instead, she asks: What are the consumers looking for? Where do we have to be? I watched over the years how (the natural organic segment) matured to a more disciplined, traditional type of operation. I think the cannabis industry is going through the same thing now, Goldenberg said. Marijuana Business Daily spoke with Goldenberg about cannabis business strategy and the challenges associated with taking over a company amid a pandemic. How have you facilitated communication with your team in your first month amid the pandemic? Weve been trying to make sure ongoing communication is happening. Weve done virtual town halls every two weeks. We have updated calls with broader audiences, just to keep the communication flowing. We have Q&A sessions. The most important thing is keeping those connection points. We have leadership-team touch-base calls three times a week. Were really focusing our effort on making sure people still feel connected, still being part of the team to help drive it forward. The most important thing is keeping those connection points. A lack of discipline and focus has been an issue for some large Canadian cannabis firms. How is better discipline applicable to the cannabis industry? In traditional CPG companies, the things executives focus on are how to optimize high-volume production environments, getting a deep understanding of the consumer and how to deliver products to retailers in the most effective way. Its all about disciplined approaches to demand planning, category management and product innovation. Those are things that traditional CPG companies do very well. They fine-tune those processes over the years, and this is how they drive profitability. That discipline coming into the cannabis industry will drive more companies to be more profitable moving forward. Is part of executive discipline a focus on core competencies and competitiveness? Being disciplined is about evaluating all the different opportunities and deciding where you think you can win, and where you can get the most return on your investment. The change as this industry has matured is that there is a view now to (focus on) profitability. We have to be businesses that survive the longer term, and as a result, its not purely (about) investing all over, but its focused on where you are going to invest and where you will see returns. Its about being choiceful about where you want to play, and where you believe you have the differentiation to win. Women account for a small percentage of boardroom positions in the cannabis industry. How is a more diverse board better for business? Im encouraged because I strongly believe that if you have a more diverse team, you get to better decisionmaking. People are coming at items from different perspectives. Interestingly, at Supreme Im quite impressed with the diverse leadership team we have. That gives us an advantage, because we better represent the needs and preferences of our diverse consumers. It helps (us) make the right decisions. Do I think its changing over time? Yes. I want to see it change more, because I think it adds value to businesses. Is your Craft Collective initiative an opportunity to work with micro-producers? Craft Collective is a good example of how we can quickly respond to what consumers are looking for. Were sourcing cannabis for select markets based on unique consumer demand in that market. To the micro-cultivators, I say we are looking for producers who are growing interesting strains using high-quality practices that are consistent with what (Supreme Cannabis brand) 7Acres is all about and achieving those desirable sensory characteristics and strong terpene profiles. We recognize that a lot of the producers have ambitions to eventually own their own brand and sell into the marketplace, but they might not have the right licenses yet or processing capacity. For the interim, its a great opportunity to go to market with the 7Acres brand, and its a great opportunity for us to quickly bring new strains to the marketplace and keep cannabis enthusiasts interested in the brand. Do you think some cannabis companies were too focused on the size of their greenhouses at the expense of satisfying customers? Back to my CPG discipline: I dont believe in if you build it, they will come. I believe in what is the demand? and producing products to meet the demand thats out there. You can differentiate yourself on quality. Its not just about tonnage. I think we want to stand on our quality differentiation moving forward. How do you evaluate international opportunities? Our focus at Supreme is the Canadian marketplace, (but) we do look at some short-term opportunities in the international market. They have to be capital-light opportunities that drive incremental revenue. We recently shipped medical cannabis to Israel under our Truverra brand. Im not ruling that (international opportunities) completely out of the equation, but it is going to be opportunistic. There has to be a way to monetize the inventory. Its not to build it so they will come. Its an ability for us to achieve good gross margins. We wont exclude those opportunities, but it isnt our core focus. Our core focus is Canada. This interview has been edited for length and clarity. Matt Lamers is Marijuana Business Dailys international editor, based near Toronto. He can be reached at [e-mail].

[OptGreen]

Spot on JaC it is very good to have another look at this info for those that are invested and are stressed with the progress to date, as well as the prospective investor...it is clear Beena knows what needs to be done with FIRE and has the experience to understand the methods and procedures necessary to achieve the expected end result. FIRE will meet or exceed targets going forward, with the

[vulcan123456789]

well said opt our time will come. in the meantime if they selling cheap I'm buying.. if you have a few quarters in your timeline. this story will turn around and I see no downside and exstreme upside as beena directs the ship.. jmho cheers

[OptGreen]

Agreed vulc, there is nothing that we know of at this time that is behind. The FQ4/20 report will provide much of the info we are all looking for and that is on track to be available by the due date, there is nothing behind. If FIRE was in trouble there would have been a SP blood bath by now...the sad SP levels of late are par for the course in this and most other sectors. With sales in the $15

[Bever73]

Try sales in the 7-10M range you lowlife pumping a hole.....unless they managed to sell.some wholesale but as we know they was no NR about 6hat so likely not......

[RealistGhost21]

Well said Never.