Failing Giants and Natural Alternatives : Cannabis Seeks a New Business Model

Posted by Brendan Kelly on

By : Javier Armas
How can the cannabis industry succeed? If we analyze the
business model of some of the giants of cannabis, their vision
was largely on forming retail chains for steady market share.
Medmen reporting a 95% loss in value is the most telling form
of this view. Robert Hoban in a recent Forbes article wrote,
The Fall of Cannabis Industry Titans is Not Surprising - It’s
Natural, with a clear point “investors were doing was akin to
investing in a chain of liquor stores, rather than the medical
advancement of the cannabis industry.”
Legacy cultivators understand how important healthy soil is.
When you eat a cardboard tasting apple or a delicious juicy
apple, the health of the soil is central to shaping those
differences. Some Cannabis connoisseurs claim to be able to
taste the soil within the flower. We also have scientific evidence
that soil with microbial diversity can cool the planet down, to
balance the earth once again. Something needed during a period of record breaking heat temperatures and wildfires.
In a recent scientific study published by microbiologists at the
University of Massachusetts Amherst, positive results were
shown regarding the diversity of soil microbial being able to help
the soil isolate carbon, which helps regulate the climate and cool
the planet down. The study points out the microbial diversity
creates higher levels of efficiency, playing a role in carbon
storage. The study continues to prove how important
biodiversity in soil is for planetary health and our own.
If you look at who wins Emerald Cup with the best California
flower, it's always living soil regenerative farmers who can
grow the best flower. Farmers understand mother nature’s
protocols. Ecological systems have natural “standard operating
procedures” that are very efficient and effective and should be
the basis of a business model based on commodifying a
component of nature. With micro living soil as a starting point,
business models can have a different foundation as well as an
alternative framework for efficiency.
If the collapse of the giant cannabis companies is natural, so is
the rise of its opposite. The natural rise of a cannabis business
model that is synergistic with the structure and spirit of
cannabis is in historical demand. I believe it is an unconscious
aspiration that many in the cannabis industry have that
emerges out of frustration from the contemporary gridlock. If
we look for answers to the difficult economics of legal cannabis,
we must still start with the plant itself, and the soil that allows it to grow.

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