As the cannabis industry faces significant headwinds in 2024, two companies — Dutchie and C3 Industries — are bucking the trend. During the Benzinga Cannabis Capital Conference, CEOs Tim Barash and Ankur Rungta, respectively, shared insights on Oct. 9 at a fireside discussion into how they are achieving impressive growth despite a challenging market environment. The moderator was Jay Rosenthal.

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Dutchie's 80% Growth: Smarter, Focused Expansion

Amid a climate where many cannabis companies are struggling, Dutchie is set to grow by 80% in 2024. CEO Barash attributes this success to a strategic, measured approach: “When the cost of capital rises, long-term thinking has to be more balanced. It's not about conquering the world, but about smart, focused growth.”

Dutchie's key move? The launch of Dutchie 2.0, which brings an Amazon-like experience to cannabis retailers. The platform focuses on enhancing customer service, simplifying transactions and improving operational efficiency. By offering tech-driven solutions, Dutchie is helping its partners optimize their retail operations, a crucial factor in their explosive growth despite industry-wide challenges.

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C3 Industries: Data-Driven Optimization

C3 CEO Rungta emphasized the power of data in navigating the volatile cannabis market. With mature markets such as Michigan plateauing or even contracting, C3 has shifted focus to increasing same-store sales and profitability.

"Mature recreational markets have stalled or contracted, so we must look inward and make our businesses better from the inside out," Rungta explained.

C3 Industries is optimizing every part of its operations using technology and data. From improving back-end processes to enhancing the customer experience, C3 is positioning itself for continued growth even in a shrinking market. "It's about block and tackle — the fundamentals of retail,” Rungta said.

Adapting To Market Headwinds

Both CEOs acknowledged the broader challenges in the cannabis market, from regulatory hurdles to pricing pressures. Barash pointed out that price compression has been a persistent issue, with cultivators struggling to stay afloat. However, their companies are navigating these challenges by honing in on efficiency and avoiding overextension.

"We’re not expecting miracles from federal reform," Barash noted. "But if you focus on what you can control — your team, your resources, and your technology — you can still win."

Lessons For Cannabis Investors

The growth of Dutchie and C3 Industries in such a difficult market offers valuable lessons for cannabis investors. By focusing on technology, operational efficiency and strategic investments, both companies are thriving despite the broader market’s struggles. Investors looking for resilient cannabis businesses should take note: success in 2024 hinges on growing smarter, not harder.

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Photo: Benzinga Cannabis Capital Conference, Oct. 9, 2024, photo by Wendy Davis