Supreme Cannabis Company Inc. (The) T.FIRE

FROM BNN

[jfogarty12]

Sounds like we are doing a  great job wiping out the black market!

Canada's latest oversupply glut hits billion-gram milestone as producers seek higher-quality bud
 

There's a billion grams of cannabis stuck in vaults across Canada. The billion dollar question now is: What do you do with all that legal pot? 
 
Health Canada released industry-wide cannabis data for October earlier this week showing that about 1.1 million kilograms of cannabis are being stockpiled by producers nationwide. 
 
That's an all-time high for the sector, following the second legal harvest of outdoor cannabis in Canada. That harvest pumped an additional 220,461 kilograms of legal pot into the market, up 67 per cent from the previous month.
 
It's a glut that continues to weigh heavily on the industry, possibly spelling further writedowns and facility closures in the months to come, analysts say. 
 
Het Shah, managing director of Cannabis Benchmarks, said that Canada's monthly consumption rate comes to about 30,000 kilograms which means that three years worth of supply is currently idle. 
 
"It's quite a substantial number," he said in an interview. "Some of these licensed producers might be thinking they can write it off and buy it from a smaller producer, which might wind up being a higher grade product." 
 
This week The Valens Co. announced it would liquidate its cannabis oil products at market-clearing rates, which could prove to be another canary in the coal mine suggesting more losses are coming. Tyler Robson, Valens chief executive officer, said in an interview that the company was looking to scrap its "inferior grade" product now that it has better options for higher-quality material. 
 
"Commoditization is happening quicker than people expected," he said. "I think this is at the inflection point of this space. And we wanted to get in front of it, prior to everybody else."
 
The oversupply situation is making it easier for companies that opt to buy smaller batches from producers to re-package it for the recreational market, a practice widely known as "white-labelling." 
 
"A year ago, maybe a little more, we were buying mediocre cannabis with mid-range THC levels for $4 to $5 a gram," said Peter Machalek, vice-president of sales and partnerships at TREC Brands, parent of both Thums Up and Wink.
 
"You can't give away mid-range THC product for a buck now. The market has become much more sophisticated, following what the consumers are demanding." 
 
Aleafia Health Inc. Chief Executive Officer Geoff Benic thinks it'll take one more outdoor harvest to show who the real winners and losers in the Canadian space are.
 
"A lot of them don't want to publicly show their warts, right?" he said. "Everyone's fighting for the best margin, best cost position, best market share. So, writing down stuff is admitting defeat, as far as I'm concerned." 
 
He added that there is still one potential wild card that could give some companies - including his - a bit more breathing room: Health Canada's upcoming ruling on whether to allow CBD - the non-impairing chemical compound found in cannabis - to be an ingredient used for over-the-counter health and wellness products. A formal decision is expected to happen later this year. 
 
"No one knows how much of that billion grams is in CBD," Benic noted. "If it's CBD, we'll find it out. That's an easy one. But if it's THC, there'll be a lot of guys probably going out of business."

[Qczar417]

This makes Supreme the envy of the LPs in terms of high quality cannabis that people actually want .

[johnale]

"It's quite a substantial number," he said in an interview. "Some of these licensed producers might be thinking they can write it off and buy it from a smaller producer, which might wind up being a higher grade product."  that's supremes wholesale buisness right there. Why they believe they have a stable supply chain for that 4.4mil from last q. 

[WealthBuilder99]

Aurora was at one time the #1 cultivator by production capacity. Following many facility closures and now running their flagship greenhouse at just 25% capacity, they have decided to focus on premium and rely more on wholesale from other LP's. Supreme at one point was selling wholesale to Aurora - will be interesting to see if, and to what extent, Supreme becomes a benefactor of this shift in

[Qczar417]

I remember a couple years ago or so, Tilray CEO Brendan Kennedy advised that when they went looking for wholesale cannabis he was dismayed that they had a difficult time finding enough products from existing LPs  that were of a suitable quality for them. Tilray chose  Supreme as one of their wholesale suppliers ,  that says something . 

[Pedal2themetal7]

We all know the quality has been there since the beginning, let's see if they can bring the product to the market. It's still on their web site they're expecting to produce 50,000 kg at full capacity. That alone would launch this company to a different level, if you add the oils etc, this company has the potential to achieve substantial growth. I would like to see between .25 to

[OptGreen]

Not much a surprise jf, quality is and always will be king and Supreme has always made high quality product their focus and Beena has been totally on board from her first day...she stated a couple of quarters back that the Craft Collectives would be shelved and many would find them very appealing....she is, and has been, on target with the pulse of this industry. This reality was always there and

[Lou793]

Question:  can you control the quality and THC levels as well when cannabis is grown outside vs growing it in a greenhouse?

[MarkAble]

Sure you can. Even higher and better in fact. Just grow yer own folks and give all the extra weed you grow away for free to friends. No need to get ripped off paying $10, $5, or even $2 bucks a gram from the pot corporations.

[theTransporter]

You can grow your own tomatoes and zucchini and dozens of other vegetables, but how many really do it?  You don't see supermarkets going bankrupt.  people are lazy and would prefer to buy it than grow it. 

[watchmeplz]

In my opinion, silly comment. Your voiding the fact that there was a whole other type of license that's been around since 2001 competing directly with your market, this isn't because the 4 plant at home rule. The govt purposely created the LP program to combat the mmar licensees by flooding them out, hence why the govt suggested people not invest in cannabis LPs as it wasn't designed

[MiningGospel]

Nothing of what you said is relevant. We only care about what the $ amount of revenue is at the next reporting period, and not your half baked conjecture.

[watchmeplz]

In my opinion, does revenue even matter if it's all done at a loss? What's not relevant? What is unrelevant is you saying it's unrelevant. 40000+ acmpr licensees that created and also own your LP market is definitey relevant and true/real. Opt claims high end here however, there's been several news releases about getting into economy brands like hiway and buying huge trimmers, but

[vulcan123456789]

watch..since when has anyone here gave a rats assss about your opinion.. you need a new line

[MiningGospel]

Haha what are you even going on about? No one cares about your thoughtless drivel. Stick to commenting on news articles

[brentkostaa]

Im curious as to how you dont understand what he's saying. He's actually helping you, though you might be too blind to see that. 

[watchmeplz]

In my opinion, He's still sitting there thinking this is going to the moon with opt. Doesn't even bat a eye at reality and why LPs are in this position, doesn't understand why there's been 4 ceos here or why almost every company across the board has departed their ceos/growing space. Why is there such a surplus and LPs not operating at full capacity? No answer right? Just temporary

[JDSSDJ]

WOOOW. Was I wrong. Look at this stock now.  Now lets look at MR Watchmeplz's comment. $50 a ounce??? I happen to know alot of people in the Nelson BC area. I would probably only vape $50 a once weed once. Then I would give it away. I dont think my kids would even smoke it.The $hit that could be in it.  I bought into FIRE June 2017 for $1.29. LETS GO FIRE.  Apperantly good

[OptGreen]

Not of any consequence MAble, the only thing that will do is encourage BM sales as very few are going to put the effort into producing and give it away, most will sell....they were still rooting out stills in the province when I was a kid and most weddings were not serving 'government stuff' at weddings in the '60s, albeit in a government bottle with most of the labelling wore off

[Cannabiznas]

Says a guy whos never grown. I had 4 plants this year, spent about 2-3 hours a day maintaining them. I have the time for that, you know who doesnt - everyone.

[HorsesforCourse]

I also grew my own and for a first timer did ok with it. It takes an immense amount of patience and care to get end product - far more difficult then any vegeatble garden. Much easier to buy and get consistent quality. Impressed with my edibles though : - )

[meowmeowmeow]

This article was inspired by our boy John Fowler.. https://twitter.com/itsdgc/status/1353367575107948545

[JDSSDJ]

Hmmmm,,,,meowmeowmeow. Your kind of a Debbie downer. But its good that someone is thinking with a clear head. The pot market is saturated with LPs & others. Im nervous on this market now. Once bitten twice shy,,, I guess.

[JDSSDJ]

I guess jfogarty12 started this debbie downer thread. Gotta give credit where credit is do. 

[OptGreen]

Not to worry JDS unless you are invested in a grass producer, FIRE produces nothing but quality product of which is and always will be in high demand....but this is not new, quality has always been the driver in this sector. jf is a powerful guy no dought but no where close to what the leaders of the day have and is on display in spades daily and have for far too long now. JMHO...Opt