Seattle, Washington--(Newsfile Corp. - August 13, 2018) - CFN Media Group ("CFN Media"), the leading agency and financial media network dedicated to the North American cannabis industry, today announced publication of an article covering 48North Cannabis Corp. (TSXV: NRTH). 48North Cannabis Corp. has taken a different approach to building a high value brand. The company has built its business around the female health and wellness market, which is under-served by other LPs focused on marketing to males.
It's no secret that many licensed producers are scaling up production. With adult-use legalization coming in October, domestic demand for cannabis is expected to soar to one million kilograms by the end of this year. There are only about 300,000 kilograms of annual supply at the moment, which implies a significant deficit of 700,000 kilograms that licensed producers hope to fulfill with their ambitious expansion plans.
But, what happens when supply and demand even out?
There's little doubt that the largest licensed producers will capture the low-end of the market with their economies of scale. These companies may have relatively thin margins, but their large market share could make up for the difference and lead to strong net income. Smaller licensed producers are likely to either be acquired or pushed out of business -- unless they create high-value brands that command premium prices and profit margins.
In this article, we will look at some ways that licensed producers have created high value brands and one company that's taking a unique approach to the market.
Creating High Value Brands
This future no secret to Canada's 100+ licensed producers, prompting many of them to try and build their own high value brands. Many larger licensed producers have also been purchasing existing high value brands to try and capture higher margin segments. These dynamics could make it even harder for smaller LPs to develop their own brands.
There are many different approaches to building high value brands:
Celebrity Endorsements
Acquisitions of Existing Brands
Partnerships with Existing Brands
There are pros and cons to each of these strategies. In particular, many endorsements and partnerships require some kind of royalty payment that can impact profit margins, while large acquisitions can dilute existing shareholders.
Focusing on a Niche Market
48North Cannabis Corp. (TSXV: NRTH) has taken a different approach to building a high value brand. The company has built its business around the female health and wellness market, which is under-served by other LPs focused on marketing to males.
The company initially focused on acquiring high-quality genetics and signed an exclusive partnership with Maripharm B.V. in the Netherlands. Medipharm was the first licensed cultivator in the Netherlands and has been researching the effects of medical cannabis for over 25 years in partnership with leading governments and universities, including the University of Oxford, Hebrew University in Jerusalem, and the University of Amsterdam.
Next, the company built a GMP-compliant, ACMPR-licensed, 40,000 square foot closed-box facility that's capable of producing 2,500 kilograms of cannabis per year on its Kirkland Lake, ON property. The property also provides 800 acres of expansion potential that could bring production to 40,000 kilograms per year. Management plans to scale up this production in two phases over the coming quarters as the market matures.
After developing its production footprint, the company plans to partner with leading consumer packaged goods companies in the food, beverage, cosmetic, and skincare industry. In exchange for its experience in creating compliant THC and CBD products, the company would gain access to new distribution channels across a range of different market verticals beyond cannabis flower and extracts.
Investors may want to take a closer look at the company given its unique approach of targeting female consumers with high-quality products and partnering with consumer packaged goods companies to diversify across several vertical markets.
For more information about 48North, visit the company's website at www.48nrth.com.
Please follow the link to read the full article: http://www.cannabisfn.com/focused-brands-will-dominate-cannabis-industry/
About CFN Media
CFN Media (CannabisFN) is the leading agency and financial media network dedicated to the global cannabis industry, helps companies operating in the space attract investors, capital, and publicity. Since 2013, private and public cannabis companies in the US and Canada have relied on CFN Media to grow and succeed.
Learn how to become a CFN Media client company, brand or entrepreneur: http://www.cannabisfn.com/featuredcompany
Download the CFN Media iOS mobile app to access the world of cannabis from the palm of your hand: https://itunes.apple.com/us/app/cannabisfn/id988009247?ls=1&mt=8
Or visit our homepage and enter your mobile number under the Apple App Store logo to receive a download link text on your iPhone: http://www.cannabisfn.com
Disclaimer
CannabisFN.com is not an independent financial investment advisor or broker-dealer. You should always consult with your own independent legal, tax, and/or investment professionals before making any investment decisions. The information provided on http://www.cannabisfn.com (the 'Site') is either original financial news or paid advertisements drafted by our in-house team or provided by an affiliate. CannabisFN.com, a financial news media and marketing firm enters into media buys or service agreements with the companies that are the subject of the articles posted on the Site or other editorials for advertising such companies. We are not an independent news media provider. We make no warranty or representation about the information including its completeness, accuracy, truthfulness or reliability and we disclaim, expressly and implicitly, all warranties of any kind, including whether the Information is complete, accurate, truthful, or reliable. As such, your use of the information is at your own risk. Nor do we undertake any obligation to update the items posted. CannabisFN.com received compensation for producing and presenting high quality and sophisticated content on CannabisFN.com along with financial and corporate news.
The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/.
CONTACT
CFN Media
Frank Lane
206-369-7050
Flane@cannabisfn.com
