Brightfield Group Archives - Green Market Report

William SumnerWilliam SumnerJuly 31, 2019
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4min3360

It’s time for your Daily Hit of cannabis financial news for July 31, 2019.

On the Site

Brightfield Group Names Top 5 CBD Companies

The CBD industry is becoming much more saturated than it was before the passing of the U.S. Farm Bill late last year, with new products entering the market, threatening to take a slice of the CBD pie that the early producers of CBD have enjoyed until this time…Brightfield Group listed the Top 5 CBD Companies that the research group says “continue to make a name for themselves” within the growing CBD market. Here’s what we know about these various companies…

TILT Holdings

Following the market close and at the end of the evening on Tuesday, TILT Holdings Inc.  (CSE: TILT) (OTCQB: SVVTF) said that it refiled amended and restated management’s discussion and analysis for the quarters and year ended December 31, 2018, and for the three month period ended March 31, 2019, and 2018  (the YE 2018 MD&A and the Q1 2019 MD&A together.  The documents were prepared following a continuous disclosure review by the British Columbia Securities Commission of the company’s disclosure records.

CannTrust

Following the disastrous revelation that the company began growing cannabis plants in grow rooms without licenses, CannTrust Holdings Inc. (TSX: TRST)(NYSE: CTST) said that its special committee has retained Greenhill & Co. Canada Ltd. as the Special Committee’s financial advisor, to assist in a review of strategic alternatives. Those options include a sale of the company, a merger or changes to the company’s strategy. The interim CEO has said the talks are happening at only a conversation level at this time.

In Other News

Harvest Health & Recreation

Harvest Health & Recreation, Inc. (CSE: HARV,) (OTCQX: HRVSF) announced that it has entered a term sheet for a secure term loan of up to $225 million. The loan comes from an investment fund managed by Torian Capital Partners, and will be made available to Harvest in three tranches of $75 million. Harvest will use the proceeds from the loan to fund expansion initiatives. “Harvest is in a strong financial position in the cannabis industry and this growth capital, which we believe is provided at an attractive financing cost will enable us to deliver on our commitment to enhance shareholder value,” said Steve White, CEO of Harvest. “With greater financial flexibility, we are better equipped to execute our strategy to aggressively expand our retail and wholesale footprint across the U.S. into key markets, while seeking to build and acquire brands for broad distribution,” White concluded.


Anne-Marie FischerAnne-Marie FischerJuly 31, 2019
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8min47840

According to Brightfield Group, the CBD market in the U.S. has grown over 700% in 2019.

The CBD industry is becoming much more saturated than it was before the passing of the U.S. Farm Bill late last year, with new products entering the market, threatening to take a slice of the CBD pie that the early producers of CBD have enjoyed until this time.

Nevertheless, the top 20 CBD companies still hold a majority of the even bigger pie that is CBD in the cannabis industry. 

Brightfield Group listed the Top 5 CBD Companies that the research group says “continue to make a name for themselves” within the growing CBD market. Here’s what we know about these various companies:

 

  • CW Hemp (Charlotte’s Web)

 

Earlier this summer, Charlotte’s Web Holdings (TSX:CWEB)(OTCQX:CWBHF) announced that their total acres of hemp planted for the 2019 growing season had increased 187% due to interest and demand for the products. Prior to that, the company reported its earnings for the first quarter with revenue growing 66% to $21.7 million. 

“Interest and demand for our products has been exceptional and growing rapidly. Our 2019 planting strategy ensures we will have the required raw materials to deliver on production targets for Charlotte’s Web products through 2020 and into 2021,” stated Deanie Elsner, CEO of Charlotte’s Web. “Our leading CBD hemp varieties under cultivation today are the foundation of our 2020 production plan.”

Brightfield Group remarked of the company: “By deeply understanding who they are as a brand and identifying the consumers that resonate with their messaging, they have built the foundation for potentially life-long customers and advocates.”

  1. PlusCBD Oil (CV Sciences)

PlusCBD Oil by CV Sciences (OTCMKTS: CVSI) has found success largely due to their low-dose capsule and softgel formats that Brightfield Group referred to as “a safe bet for more conservative users”. Green Market Report has been watching the steady increase in CV Science’s company value following last year’s impressive sales jump of 203% in the second quarter. 

The company is expected to announce its second-quarter results for 2019 on August 6. 

        3. Green Roads World

Green Roads offers unique, high-dose products, and have built their success on effective social strategies. With a growing employee base of over 100 the company had an estimated value of $45 million in 2018, according to co-founder Arby Boroso. 

The company sells CBD-infused products such as tinctures and balms, online and in 6,000 stores and 2,000 doctors’ offices across the country. Brightfield attributes their “values-based marketing” to their success and prominence in the CBD industry. 

  1. Medterra

Medterra’s growth is largely due to its effective SEO strategy and marketing. With a site that is full of engaging content that manages to get past the limitations of search engines, Medterra gets itself in front of the eyes of consumers.

The company recently announced a foray into the sports, fitness and golf communities, by partnering with Worldwide Golf Shops, the parent company to Edwin Watts, Roger Dunn, and some of the most well-known and established golf retail stores in the United States. 

  1. Irwin Naturals

Irwin Naturals turned heads when Klee Irwin, the founder of the company announced the company would be giving away $1M worth of CBD products to honor the passing of the Farm Bill. 

The company is concerned with making the cost of CBD products affordable, saying “Our mission is to spread health to the world through plant medicine. Our nation is on the edge. And I am worried about the future of our children. If we can make CBD affordable and accessible to the masses, it just might help our country avoid a meltdown.”

Groups of Competitors in the CBD Market

Brightfield Group laid out the different types of companies and brands that are continuing to lead the pack when it comes to innovative marketing, advanced products, and ways to stick out in the market. These companies are those who are:

  • CBD-only companies that have established brand loyalty, improved marketing strategies, and grow larger and more diverse customer bases
  • Cannabis companies including multi-state operators that leverage networks and infrastructure to build brand recognition and raise capital to expand CBD lines
  • Supplement brands existing in the natural food store and retail chain space
  • Disruptor brands that were little-known prior to this year and have risen up in the ranks as they’ve been picked up by large retail chains

As it is only still summer, it remains anyone’s game as to who will end up at the finish line in the CBD brand race by the end of the year.  


William SumnerWilliam SumnerJune 4, 2019
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4min3290

It’s time for your Daily Hit of cannabis financial news for June 4, 2019.

On the Site

FDA Holds Public Hearing on Regulating CBD

Last week, the U.S. Food and Drug Administration (FDA) held its first public hearing on regulating cannabidiol (CBD). Over the last several years, CBD has been growing in popularity as a health and wellness product. That popularity has only been amplified by the passage of the 2018 Farm Bill, which removed hemp and hemp-derived products (CBD included) from the federal government’s list of controlled substances. At stake in these hearings is a potentially billion-dollar market. According to Brightfield Group, the CBD market could grow to as high as $22 billion by 2022.

Green Growth Brands

Green Growth Brands, Inc. (GGB.CN) (GGBXF) has announced that it has executed an arm’s length definitive agreement to acquire all issued and outstanding shares of Spring Oaks Greenhouses (Spring Oaks) for approximately $54.6 million. Spring Oaks is a licensed medical cannabis provider in the state of Florida.

In Other News

DionyMed Brands

DionyMed Brands Inc. (CSE: DYME) (OTCQB: DYMEF) has announced its financial results for the quarter ending on March 31, 2019. Quarter-over-quarter, revenue rose from $5.5 million to $14.4 million. Adjusted EBITDA was a loss of $6 million, which the company attributes to increasing platform costs to support its continued growth activities. The net loss for the period was $1.03 million. “Our continued growth, both financial and operational, is a direct result of our ability to deliver today’s leading cannabis brands to consumers through the industry’s most efficient cannabis brands platform. Our first quarter financial results demonstrate the success of our efforts to scale our Direct-to-Consumer and retail distribution businesses through organic growth initiatives,” said DionyMed CEO Edward Fields.

Fire & Flower

Fire & Flower Holdings Corp. (TSXV:FAF) announced that it has entered into a letter of engagement with Eight Capital, pursuant to which Eight Capital and GMP Securities L.P. will purchase, as co-lead underwriters and joint bookrunners, 15 million convertible debenture units of the company for $15 million. A single unit consists of one $1,000 principal amount unsecured convertible debenture and 278 common share purchase warrants. Each warrant entitles the holder to purchase one common share of the company, for up to 24 months following the closing period, at a price of $1.45 per share. The company will use the proceeds from the offering for working capital and general corporate purposes.


Video StaffVideo StaffJune 4, 2019

1min7930

The Economics of the New Hemp Market is a panel that was held on May 7 at the Green Market Summit in Chicago. The legalization of hemp is so new that the regulations are still being written. Data will be key to unlocking this industry and industrial grade price assessments will be needed over the next few months to support futures trading on a major commodity exchange sometime early 2019. This panel was led by moderator Peter Vogel, CEO Leafwire and he was joined by Jonathan Rubin, Founder – Cannabis Benchmarks, Kevin Pilarski Chief Commercial Officer – Revolution and Bethany Gomez, Director of Research – Brightfield Group.


Debra BorchardtDebra BorchardtOctober 10, 2018
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6min11971

The typical cannabis consumer has been portrayed as mostly male and scruffy. Think Shaggy from Scooby Doo, Cheech & Chong or even James Franco’s Saul Silver in Pineapple Express. The only suburban mom ever shown as smoking marijuana was probably Mary Louise Parker’s Nancy Botwin in the HBO show Weeds.

As more data is compiled on cannabis consumers, the demographic profiles are proving to be pretty surprising. Brightfield Group pulled data from a survey combined with the social listening of over 6,000 individuals and growing (located in California, Colorado, Washington, Oregon, Nevada, and Canada). Its portal gives users the ability to drill up and down consumers’ core with a magnifying glass and the results are revealing.

“Our personas were developed using a mixed-method approach of machine learning and cluster analysis supported by content and qualitative expertise applied with scrutiny,” said Director of Research Bethany Gomez. “A taste of our cannabis consumers include Boomerangs (Baby Boomers who are returning to cannabis in their later years), Divorced Dads, Microdosing Mamas, and the Liberal Elite.”

Divorced Dads

As the name implies, Divorced Dads are divorced men with children. These guys are overwhelmingly white (97%), and nearly half are between the ages of 57 and 79 (47%). The second largest group of Divorce Dads is the 46 to 55 age group with 25%. Approximately 15.69% of Divorced Dads are between the ages of 36 and 40.

Roughly 41% of Divorced Dads are daily cannabis users. Another 33.3% use cannabis 2-4 days per week. 37.25% of Divorced Dads have used cannabis consistently, another 33.3% have used cannabis on and off.

More than three-quarters of Divorced Dads spend less than $150 a month on cannabis (78.45%). Approximately 17.65% of Divorced Dads spend between $151-$250, and only 3.92% more than $250 a month. Regarding product spend, roughly 62% spend less the $30. 19.61% spend between $31-$50. Only around 17% of Divorced Dads spend more than $50.

Approximately 74.47% of Divorced Dads use cannabis to relax at home. Aside from relaxing at home, the most popular activities for Divorced Dads to use cannabis is home duties (48.94%), outdoor activities (44.68%), concerts or music (38.3%), and with friends at home (36.17%). They are also not very brand loyal.

Roughly 43.14% of Divorced Dads suffer from chronic pain. Another 37.25% suffer from anxiety and/or insomnia, with another 21.57% suffering from depression. Sounds like these sad dads need some cannabis.

Microdosing Mamas

Microdosing Mamas are mothers with children at home, who regularly use cannabis in doses of less than 100 mg. Many companies like Satori are now making edibles products with dosages that drop to as little as 1 mg of THC or Mr. Moxie’s Mints with only 5 mg of THC. Petra Mints by Kiva Confections are sold with only 2.5 mg THC and these are just a small sample of the types of microdosing products available.

Approximately 28.46% of Microdosing Mamas have used cannabis consistently, while another 27.08% have used cannabis on and off throughout their life. Another 19.37% are returning users that are medical patients, while another 7.31% are returning users that are recreational users. Roughly 9.29% of Microdosing Mamas are new medical users, and another 7.91% are new recreational users.

These are young mamas. Age wise, nearly half are between the ages of 21 and 35 (49.22%). 25.88% are between the ages of 36 and 45; another 23.9% are between 46 and 79. Regarding usage rates, 35.77% of Microdosing Mamas are daily users, while roughly 21.54% only use cannabis a few times a year. Mother’s little helpers.

Most Microdosing Mamas prefer to use cannabis while relaxing at home (74.25%), followed by home duties (63.81%), outdoor activities (51.51%), before or after a workout (48.72%), with friends at home (44.78%), and during a meal (43.85%). On average, 46.83% of Microdosing Mamas spend $50 or less a month on cannabis.

Approximately 21.54% spend between $51-$100 a month on cannabis. Nearly a quarter (24.51%) spend between $101-$250 a month. In terms of product spend, 88.74% spend $50 or less, and 11.26% spend more than $50.

Microdosing Mamas often suffer from a combination of medical conditions. The most common of these conditions are anxiety (61.46%), depression (43.87%), and chronic pain (39.33%). Although they use cannabis in lower dosages, Microdosing Mamas spend more money per month on cannabis than any of the other previously discussed groups.

Unlike the sad dads, Microdosing Mamas display indications of being confident and joyful. They also tend to be loyal shoppers.


Video StaffVideo StaffOctober 4, 2018

1min9410

At the recent Green Market Summit on September 14, 2018, a group of top cannabis industry professionals discussed The Economics of the Cannabis Consumer. David Dancer, Chief Marketing Officer at MedMen, Jeff Stein Managing Partner at Consumer Research Around Cannabis and Bethany Gomez Director of Research at Brightfield Group talked about which consumers were the most loyal cannabis consumers and what they bought.

Understanding who is using cannabis can help businesses gain a significant advantage over
competitors. According to a recent research study from DIG Insights, approximately 25% of
Americans have used cannabis in the past year. At present, the majority of current cannabis
users are men under the age of 40, with roughly 86% of all cannabis purchases nationwide
being illegal purchases. Read more in the Economics of Cannabis Consumers report.


Anne-Marie FischerAnne-Marie FischerSeptember 12, 2018
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5min33821

Brightfield Group, which has established itself as a thought leader in the CBD space, just announced projections for the hemp CBD industry to become a $5.7 billion market by next year, with a projection of growth by nearly 40x to $22 billion by 2022.

These projections come in anticipation of the passing of the 2018 U.S. Farm Bill, which would fully and unambiguously legalize hemp and its extracts across the country.

“We believe that blowing market sizes and growth figures out of proportion would do our customers and market a great disservice,” said Brightfield’s Senior Analyst Jamie Schau, “This year’s hemp CBD forecasts might seem like a departure from that view, but I assure you they are not. These numbers reflect the substantial changes we anticipate will follow full federal legalization of hemp-derived CBD.”

There has been a long-standing industry-wide confusion on the legal status of hemp in the United States. The 2014 U.S. Farm Bill has been misinterpreted for years in leading people to believe that hemp is legal. The legalization of hemp in this context only permits the growing of hemp under a state pilot program or for the purposes of academic research. As of now, hemp, and CBD are deemed illegal, a fact supported by the Drug Enforcement Administration (DEA).

The 2018 U.S. Farm Bill is anticipated to be a “game changer” for the hemp-CBD market, as it will fully and unambiguously legalize hemp and its extracts.

Brightfield Group anticipates that hemp-derived CBD will “become the next major nutraceutical phenomenon.”

Vote Hemp said that since the passage of Section 7606 of the Farm Bill, “Legitimacy of Industrial Hemp Research,” hemp cultivation in the U.S. has grown rapidly. The number of acres of hemp grown across 19 states totaled 23,343 in 2017, more than double the number of acres from the previous year.  The group also said that state licenses to cultivate hemp were issued to 1,424 farmers; and 32 universities conducted research on the crop.

The Hemp Industries Association (HIA) reported that in 2015, retail sales for hemp products reached $600 million, which is much lower than the $5.4 billion for marijuana sales in 2015 as reported by ArcView. HIA says that hemp sales on average grow by 15% each year and that most of that growth can be attributed to more people buying hemp-based body products and supplements.

Most of the hemp for these sales was imported from China and Canada. Hemp imports for 2015 were nearly $78.2 million according to U.S. trade statistics. However, there is no trade data for products like hemp-based clothing or construction materials, paper products or even carpet made from hemp. Thus, it’s difficult to determine what exactly the hemp market is in the U.S.

This report comes on the heels of a research study that Brightfield conducted in partnership with HelloMD, which showed the potential for CBD products to help users cease use of traditional medicines.

Brightfield Group’s 2018 Hemp Derived CBD Study, can be found for purchase at https://www.brightfieldgroup.com/plans/hemp-derived-cbd-report.

 


StaffStaffSeptember 12, 2018
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6min16391

Chicago, IL: On Sept. 12, 2018, Brightfield Group LLC, a cannabis market research firm, released its much-anticipated 2018 Hemp-Derived CBD Study, available on the company’s website. The company established itself as a thought leader in the CBD space last year, propelled by a Forbes headline reading: “Nearly Half of People who use Cannabidiol [CBD] Products Stop Taking Traditional Medicines” referencing a study Brightfield Group conducted in collaboration with HelloMD. Since that time, Brightfield Group has expanded the reach of its research, generating a much more in-depth hemp CBD study that covers market sizes and projections, growth drivers, product innovations, competitive landscape, regional differences, and several other elements of what now promises to be a significantly larger market. With the anticipated passing of the 2018 U.S. Farm Bill, which includes a provision that would fully and unambiguously legalize hemp and its extracts, the hemp-derived CBD market is expected to quickly go mainstream and become a $5.7 billion market by next year, and a $22 billion market by 2022 – nearly forty times its current size.

Regarding the massive growth forecasts, Brightfield’s Senior Analyst, Jamie Schau, said, “Our team works diligently to cast a realistic view of the market – we believe that blowing market sizes and growth figures out of proportion would do our customers and the market a great disservice. This year’s hemp CBD forecasts might seem like a departure from that view, but I assure you they are not. These numbers reflect the substantial changes we anticipate will follow full federal legalization of hemp-derived CBD, a prospect that is no longer a pipe dream but looking more and more likely as bi-partisan support for hemp and its extracts continues to grow. Legalization without an asterisk will be a game-changer for this market, and after reviewing hemp-derived CBD from every angle, we are excited to be the first ones reporting on the very real possibility that it will become the next major nutraceutical phenomenon.”  

Beyond the extensive updates made to Brightfield Group’s market sizes and projections and its sections on the regulatory environment, top players in the market, and characterizing the hemp CBD consumer, various new elements can be found in this year’s study, including:

  • Product Innovations by Segment
  • Pre- and Post-Legalization Distribution Channel Analysis
  • Clinical Trials and Research Review

“A few years ago almost no one know what hemp-derived CBD was, it was sold my mostly small brands of tinctures sold online and through head shops.   All of a sudden, CBD is everywhere – it is both a trendy new ingredient in drinks, face creams, pre-rolls and pet treats and an answer to the prayers of so many people suffering from medical conditions ranging from epilepsy, anxiety and chronic pain,” explained Bethany Gomez, Director of Research. ” It rides the waves of so many global food and health trends, as a substitute for opioids, towards more natural health alternatives and functional ingredients.”

“What is most notable is that this market has grown almost exclusively based on word-of-mouth, with marketing heavily restricted due to the legal gray area that hemp CBD operates in. But, if Mitch McConnell has his way, the Farm Bill will change that, officially descheduling hemp and paving the way for mass retailers and CPG companies to enter the space.  And that is what will change the game entirely. ”

About Brightfield Group: Brightfield Group offers market research insights into the legal cannabis and CBD industries, taken to the next level by a team of expert market analysts drawing on their years of experience analyzing opaque markets with the most sophisticated analytical and statistical tools available, including AI-driven consumer research. Brightfield knows that poor decisions based on faulty data can sink a business, and believes in the value of getting it right the first time. For that reason, its analysts use all the tools at their disposal to help clients avoid this fate by pinpointing the growth drivers to help them stay ahead of the curve and thrive.

Brightfield Group LLC
1212 N. Ashland Ave.
Chicago, IL 60622

(866) 395-9661

 

Media Contact:

Rich DiGregorio, NisonCo

Rich@nisonco.com

856-889-7351

 

 



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The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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