The Good Fight of the Friendly Licenced Producer

As recreational cannabis legalization gets set to finally happen there is no denying that the cannabis industry is going to be big business. Cannabis legalization will open a lot of different markets in both the recreational and medical areas. Dry flower, oils and concentrates, vaping, edibles and more all offer opportunities for companies to grow within an expanding industry. As such, there will be many players trying to stake a claim. With cannabis markets worldwide estimated in value at over $57 billion dollars, there is a lot of room for companies of all sorts to find their niche.

Canadian based medical marijuana companyAs with all games, there are many ways to play, but we’ve been seeing two trends stand out from the rest. Large licensed producers such as Aurora or Canopy Growth have gone about becoming the biggest players quite rapidly by focusing on size and market share. Smaller companies might find it difficult to compete on these terms and are thus looking at smaller niche markets to diversify. Within the alcohol industry, the large LP’s seem like a Molson or a Budweiser brand, while much of the rest of the cannabis industry is made up by smaller licensed producers, similar to craft beer breweries by comparison.

Many people in the industry view these large corporations as “money-hungry” and deem them to be only interested in the bottom line, something which makes them wary. As has been experienced in the past, an emphasis on profits can lead to the undesirable effect of producing a sub-standard product, which is definitely not the way most of us want to the cannabis industry to go. Cannabis needs to be high-quality, safe and consistent so that users are not put at risk by low-quality product. That’s why it’s up to the cannabis producers to ensure that profits aren’t the only thing driving their brands.

Cannabis Edibles  One licensed producer has taken this mantra to heart.  INDIVA Ltd. of London, Ontario realizes that the cannabis industry is truly about much more than just dollars and cents. It’s about wellness, the environment and culture as well. It’s about maintaining a balance to grow together with consumers and the industry. That’s why the company has a client first outlook and believes that everyone deserves only safe, clean, high-quality cannabis. Of course, as a business, it will be relying on its financial health to make or break its fortunes in the cannabis industry, but that doesn’t mean that INDIVA’s beliefs must be sacrificed.

INDIVA Ltd. operates a state-of-the-art production facility in London, ON that recycles everything from waste to the heat generated by the facilities grow lights. Organic waste is composted into fertilizer that is donated to local farmers and the company even has its own tree planting program. To ensure high quality, medical grade cannabis, the knowledge and experience of an internationally recognized, award-winning grow team, are combined with GMP-compliant quality assurances and standard operating procedures into a winning formula. Also, Master Grower at INDIVA, Pete Young, has a long history with the compassion community and knows exactly what’s at stake for his clients. Mr. Young and the rest of the team work diligently to ensure that product quality and client care are always essential aspects of their business.

Operating a successful LP is not only about a great team, amazing facilities and dedication, it’s also about planning for and seizing opportunities that arise.  Such is the case again at INDIVA, as the company’s two latest acquisitions show how their forward thinking might be the key to success against the big boys of cannabis.

Cannabis ediblesBack in mid April 2018, INDIVA Ltd. announced a 50/50 joint venture and financial investment into Bhang Corporation.  Bhang Corp. is an award-winning cannabis edibles and concentrates licensor in the U.S. They are a recognized brand and can open many doors for a licensed producer like INDIVA.  As per the agreement, INDIVA will manage this venture and is committed to investing $5 million USD into cannabis processing infrastructure. This agreement provides an international outlet, as well as a proven partner with whom to produce a collection of gums, vapes, mouth sprays, chocolates etc. and immediately begin marketing these edibles and concentrates once legalized in Canada.

The next week INDIVA solidified their position in the edibles sector with an exclusive license agreement and investment into DeepCell Industries, a Seattle based technology development company focusing on cannabinoid molecule discoveries.  INDIVA acquired the exclusive Canadian rights to manufacture and sell the complete line of DeepCell products which includes Ruby™ sugar and the revolutionary Crystal Fusion®™ technology. This technology enables mechanical fusion of cannabinoids with sugar or salt crystals, creating a water soluble, tasteless (cannabis) method of THC delivery into food items.  This tech if set to revolutionize what we think is possible through cannabis infused edibles (and beverages).

safe cannabis productsThese investments are signals of INDIVA’s intent to enter the cannabis edibles market pending legalization.  This is a great way to not only diversify, but also to seek a competitive advantage against much larger producers through product specialization.  It all starts with an efficient and sustainable process that produces high quality cannabis for use in any number of ventures including cannabis edibles.  The company is on track to become a global marijuana brand known for high quality cannabis and client care.

As the story of David and Goliath goes, size isn’t everything, and in terms of Canadian and global cannabis, there are many opportunities for growth and profit, no matter the size of an operation.  There is still hope for a grassroots cannabis market to act as counterpoint to the “assembly line” future provided by the mega LPs.

It will be interesting to see how it all shakes out, but with careful planning and strategy, companies like INDIVA Ltd. will continue to show us they can more than stand their ground in the growing cannabis market.