Panel Discussion on Aligning Business Objectives with Market Segments
On October 3rd, CANNA Canada proudly sponsored a dynamic panel discussion featuring senior executives from some of Canada’s leading Licensed Producers: Nicholas Sosiak, CFO of Cannara Biotech, Mark Aiken, CEO of Christina Lake Cannabis, and Timothée Gauthier, President/CEO of Greentone Cannabis.
During the discussion, the speakers emphasized the evolving nature of the cannabis industry, where cultivators must continuously re-evaluate their production goals to remain competitive. Proper planning and execution, aligned with clear targets, are key factors in ensuring long-term business success.
Competitive Analysis is a standard business practice used to position a company and its products or services in the market, however, this practice is complicated in the cannabis sector as there are little to no standards to measure against. Determining who your competitors are, and subsequently which category to place your products in is challenging at best. We’ve seen this play out with the wide array of “premium” products available on shelves today. This lack of standardization has done a disservice to those who produce premium products and to the consumers who have had the unfortunate experience of purchasing subpar products in this category. The cannabis sector would be served well by a set of mutually agreed-upon standards that everyone could adhere to.
Producing seemingly premium cannabis has been the goal of most growers since legalization started. Bragging rights aside, the question needs to be asked as to whether the market can support that many premium products. A recent report from Headset indicated that pre-rolls surpassed dry flower sales for the first time and showed no indication of slowing down. Recognizing that this sector of the market will outpace that of premium products, many cultivators are creating a new production mindset of lower-cost production to stay competitive and appease consumer demand. More than ever, cultivators must control and constantly improve their costs of operations without sacrificing quality.
Balancing production targets with price points is crucial for profitability. Determining optimal production levels that align with consumer price expectations ensures sustainable growth. We asked the panelists if they altered their growing methodology depending on which market segment the product was slated to be sold. Cannara Biotech, an indoor growing facility, and Greentone, a highly automated greenhouse, both do not alter their growing methodology, rather they focus on reducing overall production costs to compete in multiple market segments. Christina Lake, an outdoor cultivator, faces a different challenge as they must tackle the stigma associated with outdoor flower and where the product can be used and sold.
Building a strong brand identity and effective consumer communication are pivotal in capturing market share. Crafting compelling brand narratives and engaging with consumers effectively can drive loyalty and sales. All of these can be achieved in different ways, for instance, Nicholas from Cannara Biotech noted that listening and actively engaging with consumers on social media is a key factor in the success of their business, while production consistency along with competitive pricing have been the leading factors for Greentone’s success. The outdoor wholesale market has slightly different expectations and according to Mark Aiken from Christina Lake, they focus on customer satisfaction, building strong business relationships, and delivering on expectations.
Continual process improvement with a strong focus on production costs provides the flexibility to compete in various market segments. Ensuring you can sell what you grow may seem like a simple concept, but one that isn’t easily achievable without proper planning and analysis.
We would like to express our gratitude to our expert panelists for their valuable participation and for sharing their insights on the current market and their respective business strategies. Lastly, CANNA Canada looks forward to actively supporting the CANEXEC Summit in 2025!
