Consumer packaged goods CPG made of hemp and containing THC or CBD have become consumer packaged goods made of the cannabis industry. New technologies, such as synthetic cannabinoids, make cannabis products more accessible to CPG brands and traditional retail.
Both CPG and cannabis companies face financial pressures, and downsizing may not satisfy consumers who are looking for novelty in an overcrowded market.
What is the relationship between the cannabis industry, traditional retail and CPG? On April 11 -- 12, 2023, you can check out the Benzinga Cannabis Capital Conference in Miami Beach. The event will showcase executives and companies in these spaces on two stages at the historic Fontainebleau Hotel.
CPG companies have been successful in reducing costs through measures such as downsizing. While downsizing can provide affordable prices in the short term, it may not satisfy consumers who are looking for novelty products in an overcrowded market.
As Amazon AMZN's share of CPG sales grows, smaller brands may gain market share from larger, established national brands and CPG companies, which can increase their margins by optimizing their product assortment through private-label weed products.
The current situation is a unique opportunity for CPG companies to increase margins and provide value to consumers through different product choices, including cannabis.
Cannabis products can be an alternative to high-volume premium brands, which are popular among big retailers and distributors. CPG companies can increase their margins by purchasing private-label cannabis products, while cannabis products can be an alternative for big retailers and distributors looking for high-volume premium brands.
Traditional CPG retail can increase the profit margins of cannabis companies through premium products, cross-selling, and efficient supply chains.
In April, join us at the Benzinga Cannabis Capital Conference and stay at the historic Fontainebleau Hotel in Miami Beach. You can hear about future market forecasts and worldly advice on investing and financing from those who are embedded in the cannabis industry, but don't miss out on it.