Alexander Duong

-- Podcast Teaser Alert -- "If you want to lead the consumer, you need to be the consumer." - Eric Ryan At one point, Eric Ryan and I were "frienemies". Friends personally, competitors professionally. He was the co-founder and CEO of Method Products PBC, while I led Mrs. Meyer's Clean Day. ................ But in the real world, we were always on the same team. Our collective efforts, along with the team at 7th Generation, were revolutionizing the cleaning category. At Mrs. Meyer's, our mission was clear: 'Together, we dream of a world where the better way becomes THE way.' ................ Eric Ryan shares his insights on creating method products pbc, OLLY PBC, and Welly Bandages, along with his go-to-market approach. Stay tuned for the next drop of the CEO podcast. 🎙 You won't regret it. #cultureFIRSTleadership #ceoPodcast #ChiefEternalOptimist

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If you’re an emerging natural/organic CPG company, UNFI distribution to Whole Foods Market is going to be a cost center for you, not a profit center, especially if you have plans to grow your brand there (why wouldn't you). This is something that not many people in this industry really want to say nor admit, but it’s true. It can be good for marketing and visibility but don’t plan on making much money that way or using that model alone to scale to meaningful profitability. The more you scale that model the more it will simply cost you. This isn’t meant to throw shade at either of those companies (there are distributors and retailers that can be interchanged there). These are just factual elements of the system that has been created to get products on the shelf. Know where you can make money. Know where you can't. Choose your path wisely.

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Colorado’s cannabis market, once a success story, has now left a trail of failed businesses and cash-strapped entrepreneurs in its wake. Regulatory burdens, an oversaturated market and increasing competition from nearby states have all landed major blows, leaving other states with newer marijuana markets scrambling to avoid the same mistakes. For years, Colorado’s marijuana market minted successful local entrepreneurs who bootstrapped small businesses into national brands. The market drew aspiring cannabis professionals from across the country, whether ambitious college grads with a business idea or investors looking to get in on the green rush. In 2020, the market soared to $2.2 billion. But just three years later, sales had plummeted to $1.5 billion, leading to layoffs, closures and downsizing. The market downturn has spelled trouble for state finances too: Colorado took in just $282 million in cannabis tax revenues in the last fiscal year, down more than 30 percent from two years earlier. A messy assortment of factors has led to the pioneering industry’s struggles. A supply glut caused weed prices to plummet in the wake of the pandemic. The spread of cheap, largely unregulated intoxicating hemp-derived products further heightened competitive pressures. And marijuana remains federally illegal, subjecting operators to sky-high taxes and costly regulations. “It’s like the wind in our cannabis sails in Colorado has just been sucked all the way out,” said Wanda James, founder of Denver dispensary Simply Pure, one of the first recreational dispensaries in the state. But more than any other factor, Colorado’s market has been sapped by the rapid spread of legalization across the country. Neighbors New Mexico and Arizona are among the 24 states with their own adult-use legal marijuana markets, wreaking havoc on the business plans of dispensaries on Colorado’s southern border. Tourists who once flooded the state for the opportunity to legally experience Rocky Mountain highs have largely disappeared as the novelty has worn off. Even Texans aren’t driving north to buy weed anymore, satisfied with the proliferation of intoxicating hemp products in their own state. Colorado’s trailblazing cannabis market is now a cautionary tale for states with their own nascent weed programs. A top New York cannabis official recently pointed to Colorado’s dramatic marijuana market downturn to justify regulators’ hesitance to issue too many licenses at once. “We’re a victim of our own success,” said Jordan Wellington, a partner at Denver-based cannabis policy and public affairs firm Strategies 64. The number of total cannabis licenses in the state dropped more than 16 percent in the past year alone, according to state data. Cannabis jobs also dropped 16 percent in that same time, according to Vangst’s 2024 jobs report. It was the second straight year of job losses.

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When is the best time to get into the #cannabis business? Right. F*cking. Now Those of us who are truly bullish on the #cannabisindustry see a bright future ahead Sure, we are certainly going through a challenging time now, but it won't last forever If there are brighter days ahead, and you're wanting to start or buy a cannabis company, there's no better time than now Here are a few of my thoughts on why 1. If you enter the space in a bear market, you have no choice but to run lean. Operating during a challenging time becomes your norm, and when markets improve, you reap the benefits. Many of the greatest companies in the US were started during recessionary times. 2. You couldn't build a company for what you can buy one for right now, and there will never be a better time to get creative with financing. Many operators who have been struggling for 4-5 years just want out. They want to be relieved of their stress and financial burden and will do deals on assets that are quite favorable to the buyer. 3. Sometimes a fresh set of eyes is exactly what a company needs to take off. Struggling operators get stuck in the rut of trying to survive. If you see an opportunity to tweak a business model or make operational changes that will change the course of a business, there might be an opportunity there. Should everyone go out and buy a cannabis business right now? Not at all. This is a brutal game and the stakes are incredibly high But, if you're planning to get in, or wanting to expand There's no time like the present In the words of the great Warren Buffet "Be fearful when others are greedy and be greedy when others are fearful"

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