Welcome to the Cannabis Investing Newsletter Forum. Feel free to find your favorite cannabis stocks and contribute content as you please; content that continues the discussion of, and analysis of, cannabis stocks. – D. H. Taylor

Clear all

MariMed going fully vertical

D. H. Taylor
Member Admin
Joined: 1 year ago
Posts: 310
Topic starter  

I wanted to post something regarding this concept of going fully vertical for a cannabis company.  

First, fully vertical means a company is doing all three aspects of the process of cannabis: Growing, Processing, and a Dispensary.  

Growing is a difficult and dirty and expensive job.  The one thing I have learned while analyzing all of these companies is that it is very difficult and expensive to consistently produce a high-quality product.

My preference is that a company not do this but, instead farm out the grow & processing of a product.  Also, a company can align itself with another company that is already well established in a state, have them grow, process, and sell the product.  

In this regards, a company becomes the owner of a label and all they do is market a product.  The dirty work, the heavy lifting, is done by another company.  To start out white-labeling a product in a new state and then moving forward with building up other processes within that state is a solid strategy

With MariMed, they have a solid-performing product; they have the #1 selling Eddies Betties edible.  Having this product licensed in some states to start is a great strategy that builds a business up inexpensively and then, when the costs merit, they can then start building a processing facility as well as a grow facility.  

Finally, a dispensary may be the key to success with cannabis companies.  I believe that having a dispensary is one of the most important things with cannabis companies.  With MariMed having the #1 selling edible, people will gravitate towards their dispensaries in order to get these products.  

But, I wonder on economies of scale regarding the need to build facilities in every single state.  The dispensaries are key; for sure.  

What I wonder on is if MariMed were to fill their dispensaries with a variety of products being produced from other growers, couldn't MariMed have these companies produce the products for MariMed and then, eventually there be a mutual longterm agreement along with this?

This is a question I ponder.

But, the dispensaries are what may drive the answer.


Leave a reply

Author Name

Author Email

Title *

Maximum allowed file size is 10MB

Preview 0 Revisions Saved