By Luis Merchan, CEO of Flora Growth Corp (NASDAQ: FLGC)
While many cannabis companies wait for new markets to open and laws to change, forward-thinking brands may want to consider a different approach.
Without question, the future of the cannabis industry is rife with potential. Laws continue to change worldwide, opening up the market for an unprecedented global opportunity.
Now is a defining moment for brands looking to capitalize on these burgeoning industries. While not every market is open today, there may be an alternate path to establishing a solid foothold in future markets.
Traditional CPG (Consumer packaged goods) vs. Cannabis
Although the market demand is growing rapidly, internationally, medical markets in wholesale cannabis channels are not open in a meaningful capacity. This is unfortunate for many producers that are “one-trick-ponies” and are relegated to sitting back and waiting for wholesale cannabis doors to open.
On the other hand, brands could get ahead of the curve, regardless of legal status, by focusing on building traditional CPG relationships with product distributors. From cosmetics to seltzer water to canned foods, building sticky distribution channels as real partners, not just selling as a wholesale commodity, leaves companies better positioned in the long run.
Cannabis companies with quality brands can rapidly generate sales and amplify revenue by building relationships with partners with established global distribution networks and taking a more traditional CPG approach to the industry. Wholesale-only entities don’t benefit from these sticky channels because, in wholesale, cannabis is simply a commodity, and buyers are looking for the cheapest option that meets a minimum quality threshold.
Develop the Supply Chain With, or Without, Cannabis
Laws are changing rapidly across the United …