Green Thumb Industries Archives - Green Market Report

StaffSeptember 26, 2022
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6min3471

The Daily Hit is a recap of cannabis business news for Sept. 26, 2022.

ON THE SITE

California Regulator Says Illegal Cannabis Business Should Pay $128 Million

California’s cannabis regulation authority wants a group of business owners to pay $128 million in collective penalties for manufacturing and selling unlicensed products in the state for more than a year – which the state says the defendants admitted in court. Read more here.

Green Thumb Accused of Sex and Age Discrimination

Green Thumb Industries (OTC: GTBIF) was accused of sex and age discrimination by a former employee that worked in a Rise dispensary in Pennsylvania. Carrie Baker filed the complaint on Sept. 22 alleging that she was “forced out” for not fitting with the corporate culture, which was described to her as young, single men. Baker is in her mid-fifties and said she was passed over for a shift supervisor role given to a substantially younger male co-worker. Read more about the case here.

Hemp-Derived Delta-8 Skirts Laws, Raises Health Concerns

At least a dozen states have banned the hemp-derived product, including Colorado, Montana, New York and Oregon, which have legalized marijuana. But delta-8 manufacturers call the concerns unfounded and say they’re driven by marijuana businesses trying to protect their market share. Read more here.

Incubator 1871 to Launch Cannabis Program

1871 is getting into weed. The startup incubator at the Merchandise Mart plans to launch a cannabis-industry innovation lab, bringing startups together with larger companies. The four-month program will launch in January in partnership with Grown In, a Chicago-based startup focused on providing cannabis training. Read more here.

Berner’s Cookies Heads to Pennsylvania, Wiz Khalifa Takes on Florida

TerrAscend said that it has entered into a multi-year agreement with TRP – the cannabis holding and operating company with the exclusive rights Cookies products – to cultivate and manufacture Cookies products in the Keystone State. Read more.

Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) will launch Khalifa Kush medical cannabis products in Florida this weekend — part of an exclusive partnership with multi-platinum selling artist Wiz Khalifa. Read more.

IN OTHER NEWS

UK-Based Cannabinoid Product Producer Looks to Acquire Cannaray Brands, Love CBD Health

Cellular Goods (LSE: CBX), UK-based wellness company providing lab-produced cannabinoid products, has signed a letter of intent to acquire Cannaray Ltd, the owner of Cannaray Brands Ltd and Love CBD Health Ltd. Under the terms of the deal, Cellular Goods will complete a reverse takeover of the Cannaray subsidiaries and acquire 100% of the issued share capital. Read more here.

Amazon Still Says No to Drugs, Boots Marijuana Businesses

Amazon says its guidelines around drugs and drug paraphernalia are longstanding and state that products can’t be primarily designed for making, preparing or using a controlled substance. For example, grinders that are equipped with features specifically for marijuana-related use are not allowed on the platform. Read more here.

4Front Ventures Launches Premier California Cannabis Brand in Massachusetts

4Front Ventures Corp. (CSE: FFNT) (OTCQX: FFNTF), a vertically integrated, multistate cannabis operator and retailer, has brought its premier California cannabis brand, Island Cannabis Co., to Massachusetts. Following the company’s acquisition of Island in April, 4Front began cultivating 11 new Island flower strains at its state-of-art flower facilities located in Holliston, Georgetown and Worcester, Massachusetts. Read more here.


Debra BorchardtSeptember 26, 2022
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Green Thumb Industries Inc. (OTC: GTBIF) was accused of sex and age discrimination by a former employee that worked in a Rise dispensary in Pennsylvania. Carrie Baker filed the complaint on September 22, 2022, alleging that she was “forced out” for not fitting with the corporate culture, which was described to her as young, single men. Baker is in her mid-fifties and says she was passed over for a shift supervisor role given to a substantially younger male co-worker.

The issue dates back to 2018 when Baker filed a complaint against GTI with the Pennsylvania Human Relations Commission (PHRC) alleging both age- and sex-based discrimination in connection with a promotion that had been unfairly awarded to a less qualified, substantially younger male co-worker.

According to the complaint, Baker filed a complaint with the Pennsylvania Human Relations Commission and once GTI found out, Baker, who says she had never received a disciplinary write-up in her life, began to receive unfair, unfounded, and disproportionate disciplinary actions. She complains that GTI harassed her so much after she filed her complaint with PHRC that she ended up quitting in June 2019. She says she was replaced by a younger employee. Baker went on to file a complaint with the U.S. Equal Employment Opportunity Commission on or about February 11, 2020.

EEOC Closes Investigation

The complaint states that on or about June 27, 2022, the EEOC closed its investigation into both the PHRC Complaint and EEOC Charge—expressly noting that it was not making a determination as to the claims raised by Baker—and issued Baker her Notice of Suit Rights.

Culture Clash

Baker said she had originally applied for an Assistant Manager job but was hired as a Patient Care Specialist, which paid less. She also accuses GTI of making diversity hires in order to get licenses in the state, but then pushed out some of those hires. Specifically naming Nzinga Morris (BIPOC); Kenita Honesty (BIPOC); Kathleen Newcomer (age 60+); and Marica McCarroll (age 50+) in her complaint.

She claims that store manager Tel White told her, “GTI was only looking to hire people like him, who were able to “pick up and leave” on a moment’s notice, if necessary.” She went on to complain that she performed the role of assistant store manager without the title and despite being turned down for the job. She also stated that a new role of Shift Supervisor was created and her younger male co-worker got that job. Baker says she complained to GTI’s human resources and also tried applying for higher positions at other Rise locations. She says she received good employee reviews, but once she filed the PHRC complaint, she was classified as needing improvement.

According to the complaint, GTI complained that Baker was searching for other employment during company time and had made negative remarks about management and her pay.

Baker says she is now working at the Pennsylvania Department of Health’s medical marijuana division.

GTI has 77 open and operating retail stores in 15 states. Green Thumb employs approximately 4,000 people. The company was named to Crain’s Chicago Business Fast 50 list in 2021 and 2022 and a Best Workplace by MG Retailer magazine in 2018, 2019, and 2021. The company has been requested to comment on the complaint.


Debra BorchardtAugust 3, 2022
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4min230

Green Thumb Industries Inc. (Green Thumb) (CSE: GTII) (OTCQX: GTBIF) reported its financial results for the second quarter ending June 30, 2022. Revenue increased 4.8% sequentially and 14.6% year-over-year to $254.3 million from last year’s $221.9 million in the same time period. This easily beat the Yahoo Finance average analyst estimate for sales of $248 million. GTI said that revenue growth was primarily driven by increased retail sales in New Jersey, reflecting the legalization of adult-use cannabis; increased retail sales in Illinois; 19 additional retail locations versus the second quarter last year, and increased traffic in the Company’s 77 open and operating retail stores.

Net income in the second quarter of 2022 was $24.4 million or $0.11 per basic and $0.10 per diluted share, compared to a net income of $22.1 million, or income of $0.10 per basic and diluted share in the prior year period. This also beat the analyst estimates for earnings of $0.04.

“We are pleased with our second quarter results, especially in this challenging economic environment. Five percent revenue growth and greater than 300 basis point improvement in Adjusted EBITDA margins over the previous quarter demonstrate the results of our focus. We continue to maintain a strong balance sheet, which gives us ample flexibility to support our growth initiatives,” said Green Thumb Founder, Chairman, and Chief Executive Officer Ben Kovler.

Retail breakdown

GTI said its second-quarter revenue included sales from 77 retail stores in the following states: California, Connecticut, Florida, Illinois, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, and Virginia. Retail revenue increased 11.7% quarter-over-quarter. The only weak spot for GTI was that same-store sales were down 1.5% on a base of 56 stores. Sequential quarter-over-quarter comparable sales were up 9.9% on a base of 73 stores.

The company opened one new retail store in Minnesota, RISE Mankato. Profits from the first day of sales were donated to Habitat for Humanity of Minnesota (Habitat Minnesota).

“Despite the macro and consumer headwinds, our team continued to execute and build momentum. The complexity in U.S. cannabis makes us work harder and smarter every day to create long-term value for all our stakeholders. We are confident in our strategy, we believe in our brands, and we are committed to promoting well-being through the power of cannabis for the American people,” concluded Kovler.


Video StaffApril 21, 2022

1min220

Green Thumb Industries (OTC: GTBIF) began selling adult-use cannabis for the first time at its Rise dispensaries in New Jersey. April 21 was the first day that the state of New Jersey cannabis companies could legally sell recreational marijuana. The company was able to start sales at the Bloomfield and Patterson New Jersey stores. Customers showed up at 6 am on the dot to be able to buy legal recreational marijuana for the first time in their state. With a steel drum player in the parking lot and free donuts, the mood was festive. Even the police seemed to enjoy the party atmosphere.


StaffMarch 15, 2022
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5min100

GREEN THUMB INDUSTRIES

 

DINA ROLLMAN – SVP GOVERNMENT & REGULATORY AFFAIRS, GREEN THUMB INDUSTRIES

 

What is your proudest accomplishment in the cannabis industry?

I started working with Green Thumb Industries when Illinois’ cannabis industry was just taking off, so I’m proud to have played a part in building out and launching this market while at the same time normalizing cannabis law as a profession. Working at Green Thumb has allowed me to use my legal experience in new ways by creating and running our social equity License Education Assistance Program (LEAP) and securing several competitive licenses. 

 

Do you feel that the cannabis industry has more opportunity for female-identifying people than other industries?

When I co-founded Illinois Women in Cannabis (IWC) in 2014 with Green Thumb’s board member Wendy Berger, our motto was that this is “an industry too new to have a glass (or grass) ceiling.” We were optimistic that by raising awareness of the professional opportunities in a nascent industry, we would see women leading from the start rather than having to play catch up. Unfortunately, statistics today show that women are a minority in ownership of licenses and the C-suite, so there is still much work to be done.

 

Do you feel you have to work twice as hard as male colleagues or do you think the industry has moved past that?

I do not think I have to work twice as hard as male colleagues. In general, I have had very professional and respectful conversations and relationships with the men in the industry. Additionally, we all understand the importance of making diversity, equity and inclusion a priority in cannabis. 

 

However, I hope that certain industry players will move past marketing campaigns centered around objectifying women.  While there is certainly an overlap between cannabis and sex that deserves more research and attention, it’s important to remember that women are fighting hard to be taken seriously in this industry as owners, operators, suppliers,  customers and more. We can do more than look sexy while consuming cannabis! 

 

What was your biggest challenge in business and how did you overcome it?

My biggest challenge has been the lack of predictability in this industry. It seems like every Monday morning I go into the week with a set agenda, and I have to recalibrate immediately because of another industry curveball. I now have a mindset of expecting the unexpected and I try to remember to stay loose and ride the wave as it comes.

 

What have you or your company done to help give more opportunities for women?

In 2014 I co-founded IWC with Green Thumb board member Wendy Berger. It is a nonprofit that provides networking and educational opportunities for women seeking to start or advance their role in the regulated cannabis industry.  We have grown our membership and have established IWC as the leading cannabis networking organization for cannabis in Illinois.

 

What are your personal goals for 2022?

Now that travel is opening up again, I’m itching to learn how to surf in Hawaii. In the meantime, I’ll be working on improving my joint rolling skills – I’ve been working in cannabis for almost eight years, after all!

 


Debra BorchardtMarch 1, 2022
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4min70

Green Thumb Industries Inc.  (CSE: GTII) (OTCQX: GTBIF) reported its financial results for the fourth quarter and full-year ended December 31, 2021. GTI delivered total revenue for the fourth quarter of 2021 was $243.6 million, up 37.4% from $177.2 million for the fourth quarter of 2020. Net income for the fourth quarter of 2021 was $22.8 million or $0.10 per basic and diluted share, compared to net income of $22.4 million, or $0.11 per share in the prior year. this also beat the Yahoo Finance average analyst estimates for earnings of $0.08.

For the full year 2021, total revenue was $893.6 million, up 60.5% from the prior year. GTI said that revenue growth was primarily driven by increased scale in its consumer packaged goods and retail businesses, especially in Illinois and Pennsylvania. Key year-over-year performance drivers were the expanded distribution of Green Thumb’s branded products, 10 new store openings, 12 acquired stores, and increased traffic in the Company’s 73 open and operating retail stores. Net income for the full year 2021 was $75.4 million or $0.34 per basic share and $0.33 per diluted share. Green Thumb’s family of consumer brands—RYTHM, Dogwalkers, Incredibles, Beboe, Doctor Solomon’s, and Good Green—were produced, distributed, and available in retail locations across the country.

“Green Thumb’s strong fourth-quarter results reflect our company’s continued deliberate execution. Our team delivered our sixth consecutive quarter of positive GAAP net income, eighth consecutive quarter of positive cash flow from operations and Adjusted Operating EBITDA of $76 million. On a full-year basis, revenue grew 61% to $894 million, GAAP net income more than quadrupled to $75 million and Adjusted EBITDA expanded 71% to $308 million,” said Green Thumb Founder and Chief Executive Officer Ben Kovler. “We continue to keep our heads down while focused on executing the business plan. I want to express our gratitude and appreciation to our team, customers, and communities who continue to support us and position us well for the future.”

GTI also noted that this was the eighth consecutive quarter of positive cash flow from operations and that the company had cash of $230.4 million at the end of the quarter. Green Thumb’s fourth quarter included revenue generated from 15 states: California, Colorado, Connecticut, Florida, Illinois, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, and Virginia.

“Everything we have accomplished in 2021 was specifically designed to build long-term value for all of our stakeholders. Cannabis is a complex business but you can rely on us to continue our Enter, Open, Scale strategy to drive value. As I’ve said before, we are still in the early innings of this great American cannabis growth story, and we feel it’s our responsibility to shape this industry, which is being born out of the failed War on Drugs. America is the land of opportunity and we believe the cannabis opportunity should be made available to all Americans, regardless of race, gender or religion. As more states legalize, we hope the industry can include new participants.”

For the full year, GTI reported that total selling, general and administrative expenses were $277.1 million or 31.0% of revenue, an increase from $198.1 million or 35.6% of revenue in the prior year. Decreased operating costs as a percentage of revenue were driven primarily by operating leverage.

 


StaffFebruary 14, 2022
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8min61

Green Thumb Industries

Jai Kensey – Director of Social Impact at Green Thumb Industries (OTC: GTBIF)

 

When did you formally enter the cannabis space?

I entered the legal cannabis space in 2021 as the Director of Social Impact at Green Thumb Industries, but I’ve been connected to the legacy market most of my life and even grew up in a cannabis-friendly household. Before joining Green Thumb, I managed community relations and corporate communications for non-profit and private companies in the U.S. and Australia. I currently serve as Green Thumb’s representative on the Board of the National Hispanic Cannabis Council, a non-profit focused on increasing Hispanic representation within the regulated cannabis industry.

 What made you decide to work in the cannabis industry?

Cannabis has always been part of my life, but it was Green Thumb’s “Growing for Good” program –which supports Black and Brown communities disproportionately impacted by the War on Drugs –that persuaded me to pivot to cannabis.

After the murder of George Floyd and the civil unrest that followed, I knew that I wanted to work in a space that was more aligned with my desire to support communities of color in a meaningful way. I was also ready to move into a space that not only provided new professional and personal growth opportunities but also valued what I brought to the table as a Black woman. So far, leading Green Thumb’s social impact initiatives has certainly surpassed my expectations.

I have the privilege of working with colleagues and advocates who are so passionate about supporting local communities as well as Black and Brown cannabis entrepreneurs who are trailblazers in this industry. More importantly, I am encouraged to be my authentic self at Green Thumb, which I believe is my superpower in this industry.

 Do you feel there is more opportunity for Black Americans in the cannabis industry versus a more traditional industry? Yes or no and why?

Yes, there are so many opportunities outside of cultivation and retail. The cannabis industry needs more ancillary businesses of color. There is an enormous demand for services like packaging and labeling materials, marketing, security, delivery, software development, construction and real estate throughout the supply chain – the opportunities in the ancillary space are abundant! And if you have an existing business, see if you can pivot your business model to include serving the cannabis industry.

There is so much media attention around state-issued licenses to grow and sell cannabis, but I don’t want my community to miss out on equally essential opportunities that are probably more accessible. Right now, many large multi-state operators are eager to work with BIPOC-owned ancillary businesses to diversify their vendors and suppliers. On the retail side, operators like Green Thumb are also designating more shelf space to Black and other diverse brands to bring these products to new audiences.

There are also countless opportunities for professionals like me who transferred their existing skills to the cannabis industry. Companies around the country are trying to build truly diverse and inclusive teams, and I encourage Black professionals from mainstream sectors interested in cannabis to attend as many educational and networking events as possible.

 What is the most successful social equity effort in your opinion? Can be a charity or company program.

I come from the non-profit world, so I like to highlight the work of Green Thumb’s non-profit partners who are in the trenches doing the hard work. I can’t focus on just one because this type of work, what I call “heart” work, is a community effort. When the community wins, we all win, and Green Thumb has the privilege of supporting these local and national organizations through donations, sponsorships and partnerships.

I will say, what’s personal for me is the work some of our non-profit partners lead in expunging criminal records associated with cannabis and other offenses.

I often tell people about my family’s story. My nephew, who is now 21, was charged with two cannabis-related felonies at 18. This was his first run-in with the law, and the injustice system tried to throw the book at him. Even worse, the white cannabis distributor involved in the case received immunity to testify against my nephew, who is now on probation for five years and unable to live a normal life. These punitive rulings have a tremendous negative impact on individuals and their families – mentally, emotionally and financially. People with cannabis offenses deserve to have their records expunged to access jobs, housing and voting privileges. I’m thankful my role as the Social Impact Director allows me to help organizations focused on expunging records nationwide.

 What is your personal goal for 2022?

This year, I will continue listening to the needs of the communities we serve, as well as our social equity partners, to develop more effective initiatives with Green Thumb’s Social Impact team. I want to help create a seat at our table for Black entrepreneurs, vendors, suppliers and cannabis advocates. I’m like my grandmother, “I don’t meet a stranger,” so I want our partners to feel that when working with Green Thumb and our Social Impact team. I want them to know that we are sincere in our efforts, and we are working hard to help create a more inclusive cannabis industry.


Debra BorchardtJanuary 3, 2022
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4min190

There was no rest for the M&A department at Green Thumb Industries Inc. (GTI) (CSE: GTII) (OTCQX: GTBIF) during the holidays. The company announced last week that it closed on an acquisition of Minnesota-based LeafLine Industries. As one of only two licensed cultivators in the Minnesota medical cannabis market, LeafLine is licensed to grow, process, and dispense cannabis directly to patients.

“We are excited to enter the Minnesota medical market and broaden access to cannabis products for Minnesota patients,” said Green Thumb Founder and Chief Executive Officer Ben Kovler. “We look forward to caring for LeafLine’s existing patients while ensuring a seamless transition. And looking ahead, we are ready to begin providing patients access to high-quality flower and edible products, both of which have been recently approved. As we kick off 2022, Green Thumb is thrilled to welcome over 100 new team members, a new state and five new retail locations.”

While Minnesota began medical cannabis sales in 2015, the state has been slow to expand its program with only about 29,000 registered active patients according to the Minnesota Department of Health. The state has reported that over 56,000 patients have been approved to date, but many don’t seem to be active in the program. The state currently has 17 qualifying conditions, including chronic pain, multiple sclerosis, post-traumatic stress disorder and seizures. There are only 1,291 approved caregivers. Products available include vape, tinctures and topicals, with flower and edibles coming later in 2022.

According to the Minnesota Legislative Reference Library, “Minnesota has not legalized recreational marijuana, despite legislative proposals to do so. Several bills were introduced in the 2019-2020 session that would legalize or otherwise modify laws around cannabis possession and use in Minnesota, including a proposal to establish a cannabis task force to more closely investigate issues surrounding legalization (see HF717). While the issue generated much discussion, none of the bills to legalize recreational marijuana passed in the 2019-2020 session. Discussion continued in the 2021-2022 session, as bills were again introduced to legalize recreational marijuana (e.g. HF600).”

GTI said in a statement that the acquisition of LeafLine includes a cultivation facility and five open and operating retail locations in Eagan, Hibbing, St. Cloud, St. Paul and Willmar. Green Thumb said it will also maintain the opportunity to open up to three additional retail locations in the state.


Debra BorchardtNovember 29, 2021
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10min170

A new report from Headset has found that Americans aren’t as into pre-rolls as Canadian consumers. Between August 2020 and August 2021, the market share of pre-rolls in Canada averaged 18.6%, while in the US, the market share of pre-rolls only averaged 9.5%. The only exception it seems is the Massachusetts market. Apparently, they really like pre-rolls in that state. 

Cooper Ashley Senior Data Analyst at Headset said he could think of two reasons that could partly explain why the pre-roll market share is higher in Canada than in the US.
  • Firstly, PreRolls were one of the few product formats that have been available since the beginning of Canada’s cannabis market. A regulation change, dubbed ‘Cannabis 2.0’, allowed previously-prohibited product formats (such as vapor pens, edibles, and concentrates) to be sold in Canadian cannabis retailers at the beginning of 2020 – more than a year after the market originally launched. Most product categories that were introduced in ‘Cannabis 2.0’ still have significantly lower market shares in Canada than in the US. For example, over the previous 90 days, edibles made up about 11% of sales in the US, but only 5% of sales in Canada.
  • Secondly, Canadian Pre-Roll products tend to be larger. By that, I mean that there tends to be more total cannabis in a single Canadian pre-roll product than in a US pre-roll product. For example, over the previous 90 days the highest volume package size of pre-roll in the US was 1g, but 1.5g in Canada. A tendency towards larger package sizes unsurprisingly pushes up the average price of these products as well. Eg. Over the previous 90 days the average price of a pre-roll product was about $11 in the US and about $18 in Canada. That difference in size and price could cause consumers to think of a pre-roll more as a primary purchase, rather than a low-cost add-on item.

When Americans want to buy pre-rolls, they typically choose the connoisseur/infused segment, which makes up 32.4% of sales. Canadians aren’t as picky and this same segment makes up only 0.1% of sales. Pricing is a possible reason for the large difference in Connoisseur/Infused market share between the two countries. In Canada, they are priced 57% higher than the average item price of the other segments, while in the US they are priced only 18% higher than the other segments.

However, pricing might not be the only reason that Americans are choosing the infused joints.  Andrew DeAngelo, Cannabis Industry Consultant, and Strategic Advisor said, “The quality of legal cannabis in the U.S is better in full flower form not in pre-roll form motivating consumers to roll their own rather than getting a subpar pre-roll.”

Scott Grossman, Vice President of Corporate Development at Turning Point Brands (NASDAQ: TPB) (maker of ZigZag rolling papers) agrees with DeAngelo on the perceived quality of cannabis in pre-rolls. He said, “In the U.S., the old pre-rolls were historically viewed as a lower quality flower which may have capped sales—in addition, these items are typically additions to the basket versus the main intent of purchase.” Grossman thinks that Americans prefer to roll their own so that they can control the quality of the product. Despite that, he thinks the perception is slowly changing. 

Innovation

“Companies like Old Pal, Space Coyote, etc. have innovated to create shareable pre-roll packs which make a lot of sense, especially during the pandemic—no one wants to pass around a single joint,” said Grossman.”Nearly 30% of the U.S. pre-roll market is driven by infused pre-rolls—ie. flower either dipped in Kief, but more recently, pre-rolls with hash concentrates within (a better form factor).” 

More companies are producing mini-pre-roll packages so that people can have the social aspect of smoking joints together but without the passing around of a joint. The smaller size also means fewer unsmoked joints that the consumer now has to store without it falling apart or making a mess. For example, Green Thumb Industries (OTC: GTBIF) sells a package of five mini-pre-rolls called Dogwalkers. The idea is that the little joint is small enough to be enjoyed walking one’s dog. 

Cones could be another reason why Americans are rolling their own versus buying pre-rolls. The innovation of selling a cone-shaped empty joint with a small plunger to tamp down dry herb can turn those without joint-rolling skills into a master. Grossman said, “Without question for the consumer. Not only does it make it easier to roll, but new innovation at the cultivation/manufacturing facilities allows the production of pre-rolls at scale (which, to be clear, is still much more labor-intensive than tubes). In addition, a conical joint versus a straight tube/joint actually makes the burn better due to the “Venturi Effect” — because there’s more material on top, it produces a more consistent flavor because you’re burning more in the beginning (and less in the end). This creates less resin and because of increased pressure, it tends to burn smoother. Punchline—a more concentrated hit. Cones also tend to produce less waste (because there is less material near the tip).”

Joint burning performance is also a key issue for these consumers. DeAngelo said that rolling joints at home avoids the joint running problem (burning unevenly) associated with almost all store-bought joints in the US. “A joint that is stuffed by a machine runs like crazy compared to a joint rolled by hand. The way the fibers intertwine works better with a hand roll so the joint burns evenly. Americans are more sensitive to this perhaps. I know I am.” 

More Pre-Roll Differences

Headset also determined in its report that market shares of the Indica and Sativa Single Strain segments in Canada were more than double the size of their market share in the U.S. where Hybrid – Single Strain has more category share than Indica and Sativa combined. “We also find that the Cannagars/Blunts segment owned 4.2% of the Pre-Roll market in the US, while it only held 0.1% within Canada. 

While Americans haven’t been big buyers of pre-rolls to date, that could be changing. It seems companies have learned that tossing the crummy trim into a pre-roll isn’t going to sell. Social media accounts have shown various people buying these pre-rolls and then unwrapping them on camera to expose the insides. That exposure may have turned the tide on poor-quality pre-rolls. As consumers spread the word of an improved product, sales are likely to grow and could make this an improving category.

 


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