Scott Willis of Grizzle has an excellent article today — Edible Economics: The Gold-Plated Marijuana Cookie — that explains (indirectly) why the Thai Cannabis Corporation is focusing on selling ingredients rather than cured flower.
Here’s the key infographic:
Among other things, note that the article cites a retail price of $12/g for “high quality cannabis oil.” Our business plan assumes that we’re selling such oil for $5/g, which leaves room for a retail markup of 2.4x (140% margin), which is in line with industry norms.
The article goes on to say that “Edible prices generate extremely attractive margins at almost 92%.”
The money quote:
“The legal producer that wins will be the first to become a large-scale extraction supplier and the one that is vertically integrated and can take the marijuana from seed to flower to oil to cookie.”
Which we agree is 100% true, except that we would append, “…at an internationally-competitive price,” which no North American producer can deliver. At that game, only Thailand can win.
We’re focused on selling cannabis ingredients because
- We can make a lot of money doing it, and
- Ingredients are the critical element needed to establish Thailand as the leader of the global cannabis industry, from flower to oil to cookies (and to beverages, cosmetics, medicines, etc.).
