Have You Ever Grown More Than Demand?
Is there ever a scenario where demand is low but you're still growing so you have to shift from flower to extracts, waxes, or edibles just to make sure that you're not growing and wasting product?
States that have been around for a while who have been running into this have a lot of grows now. The price has dropped significantly per unit - a unit is a pound. It’s not beneficial for them to sell the flower anymore because they're just not making enough money. The margins aren't there, so they turn everything to extracts. They wound up processing all the flower into oils or concentrates.
One of our clients is out in the Denver Metro area. They have the lowest prices of flower I've ever seen anywhere. They sell ounces at $60, and you can buy two pounds at their dispensary and walk out the door with the cheapest prices I've ever seen in my life. They literally sell their flower at cost. They only make their money on their concentrates and flipping it into manufactured goods.
Do those manufactured goods store better over time?
Comparatively, absolutely. Flower does not store well. It's not like wine, it does not age with time. It devalues with time. There's a very significant curve in the life and quality of flower, which is the bud that you smoke for those that don't know what flower means. The best time for flower is after the curing process when it’s super fresh because that's when all the terpenes are there, and when the THC is the highest. As the flower gets older, the terpenes (which provide the smell, flavor, and some medicinal benefits) evaporate, plus the THC degrades and turns into another cannabinoid.
The quality of the flower deteriorates over time. You can do things like freeze it or refrigerate it to slow down the deterioration process. At the same time, when you put your flower in the fridge or freezer, it kills the quality. Think of it just like food. Any fruit fresh off the tree is going to be the best fruit you've ever had in your life. Now have that same fruit two weeks later after it has been pulled from the tree, it’s not as good. You throw it into the refrigerator, and a month later it's still good, but not nearly as good as it was off the tree. Now throw it into a freezer, and it'll last a long time. But when you defrost it and start eating it, it's just ok, it’s not great anymore. Cannabis is the same way, it definitely deteriorates.
Extracts last longer because they're suspended in some artificial thing, like oils or sauces. Edibles can last for a couple of months with all kinds of preservatives that you can throw into them, which I'm not a fan of. None of my edibles have any preservatives. All of our products are completely clean of all that crap because at our company, we make medicines. I don't understand how we could honestly tell our patients we're making medicine and medicated edibles, and then load them up with chemicals just so they last longer. I'd rather just make them more frequently.
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Cheers!
.: Adam
CEO