Cannabis Industry Leaders Discuss Growing Pains

Regulations, reporting requirements and talent are three of the challenges in scaling a cannabis business, according to executives who discussed the topic Friday at the Benzinga Cannabis Capital Conference in Toronto.

Competition

The laws and restrictions pertaining to cannabis create challenges in scaling a business, said Jessica Martin, vice president of public relations and regulatory affairs at Invictus IVITF.

It's imperative for a company within the sector to consider the mandates of the federal government, as well as the rise in competition, she said.

“When it comes down to day-to-day operations, it's about scaling facility. When you have substantial strains, you need space to do it. So were scaling up rapidly and that’s the biggest challenge. Companies are developing new ways of growing,” Martin said.

“Our focal point is innovation. Customers look for a new experience every time they try our product.”

Going Public

Organigram OGRMF CFO Paolo De Luca spoke about the challenges that follow a public offering.

Once a company is reporting earnings, there will be a reset of valuations, which creates new challenges within the market, the CFO said.

De Luca mentioned other company pressures.

“When there is a shortage, the ability to scale is paramount. The amount of product keeps increasing, and so anything we can do to be more efficient and drive productivity will be beneficial. It is a competitive system to keep track of plants, temp control, air control [and other factors]."

Talent

Felicia Snyder, vice president of growth at Hiku Brands DJACF, emphasized the importance of creating the best team.

The cannabis industry is a challenging market to operate in, as it travels “at the speed of light," Snyder said.

"Our main focus in investing in talent. Our team is the best in all of cannabis and that's been a big driver to execute a lofty goal — going global,” Snyder said. “Always be sure to find the right partner. It is really about ensuring that whoever we worked with shared our vision and our goals.”

Canopy Growth CGC announced plans to acquire Hiku Brands in July.

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