3 Necessary Components For Commercial Success In Cannabis

3 NECESSARY COMPONENTS FOR COMMERCIAL SUCCESS IN CANNABIS

The process of commercialization takes an idea from the conceptualization stage and makes it a profitable reality. Commercial success is based on matching a product or service with an unmet consumer need, or gap in the market. This can take the form of disruptive innovation, or incremental improvement within an existing category.

Within cannabis, the race to be first-to-market or gain an early mover advantage can create additional pressure on product developers and innovation teams. It may mean limited time within the research and development phase, rushed value propositions, or unforeseen supply chain limitations, among others.

Alongside defendable points of difference, gaining mass adoption for your idea requires reliable technology, flexibility and adaptability in your process in order to overcome barriers that may arise, and most importantly the ability to scale-up (production, distribution etc). You must be able to meet or exceed any increase in demand as awareness grows and traction is achieved.

The following 3 components are necessary for commercial success in cannabis:

1. Scalability:

Whether it is technology, ingredients, equipment, or products, the ability to scale is crucial for commercial success. This allows you to meet both current and future demand, ensuring your business remains viable over time. Operating at scale is also more cost-effective, offering a competitive advantage to companies looking to create a stronghold in established and emerging categories.

True Scalability™ is reflected in the patented cannabis processing solutions offered by Nextleaf. Our team has designed a custom closed-loop chilled ethanol extraction skid, capable of 10x the output of a CO2 machine making it the most efficient and economical cannabis distillery in Canada.

 2. Ingredient Standardization:

Ingredients such as cannabinoid molecules that are standardized for potency and purity offer speed-to-market advantages to product formulators during the development process, as well as a reliable experience (such as onset time) for consumers. This is necessary for building a healthy innovation pipeline, launching successful products, and establishing trust amongst consumers.

3. Versatility:

Being able to use one base ingredient for a wide variety of formulations creates greater ease during the research and development phase, procurement, and when seeking regulatory approval, or third-party certifications.

Cannabis extracts that are refined and purified such as those produced through Nexteaf’s patented process are suitable for a wide variety of formulations due to their stability, purity, and neutral characteristics from which to create anything from vapes, to beverages, edibles, topicals, and more.

Instead of first-to-market positioning the focus should be on achieving a speed-to-market metric during the development and innovation process. First-to-market can come with false confidence and allows fast followers to undercut your value proposition. Whereas the ability to rapidly innovate and commercialize allows you to capitalize on opportunities, play to your strengths, align with trends, and pivot when unforeseen circumstances inevitably present themselves.