Eric Rosen

🌿 Cannabis Industry Insight: Declining Distillate and Flower Prices 🌿 Lately, we've observed a noticeable decline in both distillate and flower prices. 🔍 Potential reasons include: Increased production capacity: Many producers are scaling up, leading to a surplus. Rising competition: More players in the market are pushing prices down. Regulatory changes: Evolving laws are making production more accessible and less costly. Shifting consumer preferences: Demand is diversifying across different product types. I'm curious to hear from others in the industry. What trends are you seeing, and why do you think prices are falling? #CannabisIndustry #MarketTrends

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Holistic Approach to Revenue Operations A common error in management is compartmentalizing sales, marketing, and operational roles too rigidly: that all teams are aligned and working towards common goals. Marketing should generate leads that sales can close effectively, while operations should ensure fulfillment capabilities match sales efforts. Recognize that while sales teams are directly responsible for driving revenue, other departments like marketing and PR play crucial supportive roles that prepare the ground for sales to succeed. Each function strengthens the other, and their activities should be integrated rather than segregated

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The Drug Enforcement Administration (DEA) has made an extraordinary decision, aligning with the top federal health agency to shift marijuana from Schedule I to Schedule III under the Controlled Substances Act (CSA). This momentous step comes after more than fifty years since cannabis was initially listed as a strictly prohibited substance, equated with heroin, devoid of any recognized medical benefits, and carrying a significant potential for abuse. The reclassification of marijuana to Schedule III, as advised by the U.S. Department of Health and Human Services (HHS), carries immense implications for state-legal cannabis businesses. Upon implementation, this move will enable cannabis companies access to federal tax deductions that were previously off-limits to them under the IRS code, section 280E. #reschedule #cannabisindustry #280e #bloommedicinals #wondergrovecannabis #msos #medicalcannabis

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Def a click-baity headline - but somewhat true... Anytime a legislator uses the word "hornswoggled" - you start to understand how this happened. BUT I've always maintained - if you're in the cannabis industry and NOT considering hemp, you're prob making a mistake. Just like in trad'l retail - manage your various channels with different strategies. Don't sell the exact same thing for cheaper online (duh - but I feel it needs to be said). Ideally, sell something completely different - the majority of the buyers of Hemp D9 shoppers are NOT regular dispensary customers. Maybe even a diff brand name (as I’m guessing CURA is doing ) _________________________________ Like Curaleaf (H/T Boris Jordan ) Curaleaf, America’s largest cannabis company... is launching a line of beverages with a low amount of Delta-9 THC. AND they're going against the US Cannabis Council on this. “We would prefer that it’d be one regulatory framework for all cannabinoids,” Jordan said. “We’re at that point in time right now with the hemp industry where there needs to be some rules put around what you can and can’t put into these products.” Boris is on the record as saying he thinks THC beverages will ultimately be the biggest category LT... Implicit in that statement is the expectation that current non-cannibas users will move heavily into the category (NOT that smokers will stop & move to drinks). bc as any marketer worth their salt knows - it is SOOOOOOO much harder to get people to change behavior. If you can give them something very close to what they're getting now (but better), your chances are a gajillion times higher for success (+/- 1%). So getting drinkers today to try a THC bev that they can buy where they already shop... and have a nicer buzz, and an even better morning... That's kinda what's happening in the THC bev space rn. _____________________________ Yesterday was a set-back - prob driven by the USCC and other special interests. Unfortunately, it also hurts consumer access - and likely props up the illicit market. As we've seen in NY - our current law enforcement isn't resourced to deal with something that has proliferated over the past year. And honestly, is that where they should be spending their time? On something, adults have shown they enjoy and with few / no issues (NOT talking about gas station gummies).

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Want to know the biggest mistake I see #cannabisindustry operators making? It's not understanding the graphic below 👇 I see it time and again. "We need marketing" followed by "Why aren't they closing sales." Or "Why won't this PR agency guarantee me article placements?" Or "I hired a sales team and it's working for our wholesale business, but not doing a thing for retail" The list of examples could go on for a bit... The reality is: Every. Single. Cannabis. Company. Needs. It. All. They just don't know that. They THINK they need 1 or 2 of them, and then some slick sales person promises them the world. They sign on with a marketing agency expecting sales, or a publicist expecting advertising, or SOMETHING like that. 6 months later the account rep is catching heat for it. The business owner is mad and likely hurting in the pocketbook region. The agency's reputation is damaged. Or... They hire a new CMO and expect them to run a sales team, or they hire a new VP of sales and wonder why the marketing calendar is hurting and all the article pitches keep getting rejected. Or... They hire someone and expect them to do 5 jobs, or they hire an agency and expect the same level of commitment as an employee. Or. Or. Or. Many Scenarios. Same Errors. Every Time. And it's always the operator's fault. ALWAYS. It's their duty to ask the right questions. Here's my three best tips to start you off right: 1.) Clearly explain your goals, and ensure any KPIs align with them. Want more sales? Tie success to that metric alone, and make sure you get a detailed explanation about how each planned activity drives towards that goal. 2.) Agency's scale faster, Internal Teams scale better. Early stage companies need strategy internally and to contract out the work, late stage companies need to contract out the diversity of thought (and occasionally the work). Hire accordingly. 3.) Think holistically. CROs and Rev Ops people get a bad rap for being "just another sales guy" but with some spreadsheets... and that just isn't the case. A good CRO (Even a fractional one, or an agency filling that role) is the glue that holds the front end of a business together. Find one of those and you can ignore the rest of this post. Have any other tips on this topic? Drop them in the comments 👇 Disclaimer: This post is brought to you by a former sales person who got a master's in PR (that he rarely uses) and parades around as a marketer (and somehow people believe it). 🤷‍♂️ Take it with a grain of salt. 🧂

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3 Cannabis Product KPIs- most operators don't look at Whether you're a dispensary or a vertically integrated operator, understanding how customers interact with your products is crucial for making assortment decisions and monitoring loyalty. You've likely seen products hit the shelves with a bang, only for sales to fizzle out within 60 days. This often happens because the product fails to drive repeat purchases from most customers. Track these three key performance indicators (KPIs) 1. Follow-up Purchase Rate (%): How many transactions containing Product X resulted in a subsequent purchase from the same customer, regardless of the product? 2. Repeat Purchase Rate (%): How many orders containing Product X resulted in a repeat purchase of the same product? This metric is especially important for vertically integrated brands or products where you want to cultivate customer loyalty. 3. Customer Lifetime Value ($): What is the annual value of customers who bought Product X during their first visit? Where do you apply these insights? → Customer acquisition and retention campaigns →In-store product placement and merchandising → With budtenders and store managers to build selling confidence. These KPIs provide valuable insights into what products are selling, when, and to whom. While budtenders and managers may instinctively know the top-selling brands or products, these metrics unveil hidden gems or underperformers that deserve closer attention. These KPIs can help you/your teams make data-driven decisions that optimize your product mix, improve customer experiences, and ultimately drive revenue growth.

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Cannabis Firms, You Can Take Up Pricing “Pricing is by far the biggest tool for earnings improvement." McKinsey & Co. Almost every cannabis business is caught in a vise of rising costs and declining pricing levels, exacerbated by relentless competition and rapid product turnover. This nasty reality can be mitigated.  Whilst cannabis firms are generally price takers, they often have brands and SKUs where they can take up pricing with minimal volume or brand risk.  This is a compelling opportunity when you do the math.  Modest across-the-board price increases (say 3% to keep pace with inflation) can boost bottom line profitability by 25%. In cannabis, I’ve worked on selected pricing initiatives in high switching categories that have increased Return on Sales by 4-7%.  'Selective' is the key word when it comes to price increases.  Cannabis brands typically feature high volume & inventory risk; price adjustments come with execution costs and; there are risks of decoupling your pricing and brand strategies. Leaders would be ill-advised to ignore price increases as a means of boosting financial and brand performance. Capitalizing on these opportunities, however, takes work, including: financial and demand elasticity modelling, market/consumer research and total quality implementation.  Here are 3 ways to ‘price to win’: 1. Align your pricing to value delivered, market differentiation and consumer interest.    If your product has lots of consumer-relevant features, is unique or competes in a sleepy category then you have pricing power.  Use it to get capture higher margins. Some marketers should also be mindful that consumers have a hard time believing you are a premium brand if the product is priced in the value segment.  In this case, taking up pricing could paradoxically lead to higher volume. 2. Message better Channels and consumers understand inflation; they also live it.  How you position and communicate a modest price increase can be the difference between success and failure.  And it never hurts to test your pricing hypothesis in a controlled pilot.   3. Build long term capability Pricing management should be a shared competency and responsibility between sales, marketing and finance.  Regularly monitor your costs, competition, and channel needs to ensure your pricing strategy consistently delivers on corporate goals. 🔔 Hit that follow bell to always get my unique, impactful content #cannabisindustry #pricing #cannabis #Mckinsey #revenue #brands #MSOS #LPS

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🚨 Insightful DEA Report: Illicit marijuana flowers average a THC potency of 16%. 🌿💨 This statistic underscores a significant advantage of purchasing from licensed dispensaries—quality and safety. Unlike the unregulated market, dispensaries offer products that are tested, compliant, and consistent in their THC content. This not only ensures a safer consumer experience but also supports the legal cannabis industry committed to high standards. Why risk the unknown? Choose quality, safety, and reliability every time with dispensary-bought cannabis. Let's advocate for more informed consumer choices and support regulations that emphasize these benefits. Stay informed and choose wisely. #CannabisIndustry #ConsumerSafety #DispensaryQuality #THCPotency #RegulatedCannabis

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Change is coming in the cannabis industry and opinions are split on whether it's good or bad. But one thing is for sure, it will be different. While some see this change as a potential positive, others fear that it could lead to pharma control. There are potential benefits such as the impact on banking and the 280E, but it remains to be seen whether these will truly help the industry. Regardless, the fact remains that federal regulations are on the horizon. Brace yourselves, change is upon us. #CannabisIndustry #Regulations #Change

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The THC and CBD gummy market is bigger than ever with innovations being introduced rapid-fire. Consumers have embraced the trend and continue to look for preferred products. What constitutes a preferred product status within the cannabis gummy market? Check out our latest blog: https://lnkd.in/g5QgQg4h

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Remember a couple years ago when I said cannabis is going to end up looking like a convenience store…. Well, gummies and bev and d8 and d9 and thca are in non-rec/med shops across the country, in diverse states from Texas, CA, to MN… And in developed rec markets like MI, you can buy gummies for at $3 for 200mg (cheaper than gummies in the gas station!) If you are launching in a new market, or operating in an existing one, and this isn’t the eventual reality you are building toward, it should be. If you are investing in cannabis and the company you are putting money into hasn’t brutally faced this future with a consistent, well thought out plan, it’s a BIG red flag. Liters will be $2-3k. Lbs will be $4-600. Gummies will be $3-5 per pack at retail. Prerolls will be $2-3. I’m not here to ruin the party. I’m here to help start a new one. Let’s make sure it’s extra funky.

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Missed our Kentucky webinar? Watch the recap to keep up on all things Kentucky cannabis: https://lnkd.in/gSjX5e3P Don't forget: our Minnesota webinar is coming up this Thursday so be sure to register to attend this informative session with our experts: https://lnkd.in/gQs7Si_u #kentuckycannabis #minnesotacannabis #cannabislicensing #cannabisbusiness #licenseapplications #cannabiswebinar

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𝐂𝐀𝐍𝐍𝐀𝐁𝐈𝐒 𝐔𝐏𝐃𝐀𝐓𝐄 Yesterday DEA announced it will propose that cannabis be reclassified from Schedule 1 to Schedule 3 of the CSA. What does this mean? Here's what Schedule 1 and Schedule 3 substances are and brief (and partial) notes on what DEA's announcement means and doesn't mean, what rescheduling would do and not do, and the path forward. 𝐒𝐜𝐡𝐞𝐝𝐮𝐥𝐞 𝟏 𝐚𝐧𝐝 𝐒𝐜𝐡𝐞𝐝𝐮𝐥𝐞 𝟑 𝐬𝐮𝐛𝐬𝐭𝐚𝐧𝐜𝐞𝐬 Schedule 1 substances are substances with “High abuse potential with no accepted medical use” such as heroin. Schedule 3 substances have accepted medical value but are available legally only with a prescription.  𝐖𝐡𝐚𝐭 𝐭𝐡𝐞 𝐚𝐧𝐧𝐨𝐮𝐧𝐜𝐞𝐦𝐞𝐧𝐭 𝐦𝐞𝐚𝐧𝐬 𝐚𝐧𝐝 𝐝𝐨𝐞𝐬𝐧’𝐭 𝐦𝐞𝐚𝐧 1) DEA has accepted the prior determination by the Department of Health and Human Services that cannabis “has a currently accepted medical use in treatment in the United States” and has a “potential for abuse less than the drugs or other substances in Schedules 1 and 2”. 2) The announcement does not make cannabis federally legal. 3) The announcement does not expunge prior cannabis convictions. 𝐖𝐡𝐚𝐭 𝐫𝐞𝐬𝐜𝐡𝐞𝐝𝐮𝐥𝐢𝐧𝐠 𝐰𝐨𝐮𝐥𝐝 𝐝𝐨 1) Rescheduling would enable state-legal cannabis entities to take advantage of several federal tax deductions currently unavailable to them under IRS code section 280E, thereby significantly improve their profitability and financial health.  2) Rescheduling would facilitate greater cannabis research and development for therapeutic uses that is precluded with respect to Schedule 1 substances. 3) Rescheduling would likely require state-legal cannabis entities to comply with federal production, record-keeping, and prescribing requirements for Schedule 3 substances. 𝐖𝐡𝐚𝐭 𝐫𝐞𝐬𝐜𝐡𝐞𝐝𝐮𝐥𝐢𝐧𝐠 𝐰𝐨𝐮𝐥𝐝 𝐧𝐨𝐭 𝐝𝐨  1) Rescheduling would not make cannabis federally legal or enable state-licensed businesses to transact in interstate commerce. 2) Rescheduling would not expunge cannabis convictions.  3) Rescheduling would not necessarily facilitate banking services for cannabis entities. Other proposed federal reforms are being considered towards this end now. 𝐏𝐚𝐭𝐡 𝐅𝐨𝐫𝐰𝐚𝐫𝐝 1) State cannabis markets will likely be unaffected in the short to medium term.  2) The relief from 280E tax restrictions may spur additional interest in obtaining state cannabis licenses.  3) Timeline: the rescheduling process will take months. DEA's proposal will be reviewed by the White House Office of Management and Budget, there will be public notice and comment, and then review by an administrative judge. DEA will then publish the final rule in the Federal Register, and after a waiting period the new law would become effective, barring any legal challenges (which are likely to be made by stakeholders). Fast times. Stay tuned.

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Missouri is enjoying its second year as an adult-use cannabis market and not only does that mean we’re seeing many more consumers coming out of the shadows to shop, but the products and brands available have never been more prevalent. One of the most important questions we ask with new brands is “How do you enter such a crowded market with a new brand or new product and show people how you’re different, better, etc?”  For newcomers, EmmaLeaf Cannabis Lab + Kitchen, that was an easy answer – focus on quality products, and tell the story of our team […] https://lnkd.in/gCn6fBGk

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I’ve been working in the cannabis industry for 6 years. Here’s the toughest part (aside from the stiff competition, startup capital needed, federally illegal status, and plenty of other things): Each state is its own market. What works in Illinois may not work in Florida. Either because the market is different or the specific regulations don’t allow it. Does this make branding and marketing a CPG product ridiculously challenging? You bet. Is it worth it? Most definitely. (Just ask our clients!) Despite the hurdles, this is still a growing industry. And it’s one built on the quality of your relationships. Over the past 6 years, I’ve been able to make some great partnerships in… - Construction - Compliance - Insurance - Banking - Media - PR Our national network of experts and freelancers helps our clients understand both niche markets and broader landscapes. And our partners are a HUGE reason we’re able to deliver quality work. This industry wouldn’t be half of what it is without the people. If you’re looking for a trusted partner to help understand the nuances of your market, feel free to reach out. I love chatting cannabis!

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ICYMI - check out the latest issue of mg Magazine! This issue focuses on 17 #executivewomenincannabis, including Nancy Whiteman! #womenincannabis

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The landscape of cannabis is clearly shifting. The winners in the New World of Cannabis will be the ones who do these four things: Form Strong Partnerships …with complimentary operators in their supply chain. …with providers of capital. …with strong vendors. Maintain Equal Scale Across All Investments …so their manufacturing lines don’t sit idle. …so their marketing spend actually reaches people who can buy from them. …so they aren’t handicapped by an oversized cultivation facility. …so they don’t throw good money after bad. Operate Lean …because change is coming and change requires capital. …because bigger money is coming into the market that can lose money for a LONG time. …because prices will drop, elbows will get sharp, and assets will be cheap. Get Really Good at One Thing …or be a master (read: market leader) of none. …or someone else will, and they’ll do it cheaper than you. …or have a ton of money, becuase being really good at one thing is expensive, and being really good at a lot of things is REALLY expensive.

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One of the most annoying things about cannabis marketing on Instagram is shadowbanning. 🤦🏾‍♂️ What's even worse? Anyone tagging your account will ALSO be shadowbanned at least for a period of time. This can really put a damper on paid collaborations when the post of a creator or partner with a large following underperforms. This can be a big underlying reason for failed partnerships that could leave the creator wondering what happened and the brand soured on the marketing spend. 💡 For context - What happens when your account is shadowbanned? Effectively, your account is still "public" but is flagged which means hidden by the algorithm / not promoted to non-followers. This results in what many of us have felt like have an account that is pretty much the Walking Dead and gets 50-75% less reach than a typical post. There's ways to strategize around this but both teams have to be educated on the specifics of cannabis marketing so no one feels short changed. I spent a lot of time messing up and look forward to sharing more of these insights. My line's always open if you want to make sure you're getting the best bang for your buck on your social media, content, and marketing.

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