The Supreme Cannabis Company Launches New CBD Product as New Senior Executives Join the Team
December 4th, 2019
App, Exclusive, News, Top Story
2019 has been tough sledding for essentially every public company in the cannabis space. It’s not unlike other times over the last decade when high growth stocks, as they’re colloquially called, have followed large gains with sharp retractions. While unpleasant for market bulls, it is a normal and healthy part of a cycle, particularly for those industries that are still developing.
One sign that opportunities still exist in the industry, is the fact that the industry continues attracting top talent across the entire leadership arc. This includes a couple of recent appointments by The Supreme Cannabis Company. First, Joel Toguri assumes the newly created Senior Vice President of Commercial position as new “Cannabis 2.0”, or cannabis derivative products, are introduced and rolled out across Canada. Given Supreme Cannabis’ reach into Cannabis 2.0, Toguri will be integral to revenue growth as he oversees provincial and retail sales strategy across all of Supreme’s brands, particularly its 7ACRES and Blissco lines and a partnership with Khalifa Kush Enterprises (KKE) Canada.
Meanwhile, Supreme has brought on consumer packaged goods (CPG) veteran John Griese as Chief Operating Officer to streamline its supply chain and operations. As the company moves further and more broadly into commercial operations, Griese will help Supreme manage its growth with an eye toward efficiency and, as always, quality.
A Highly Relevant Background
Both the new SVP Commercial and COO bring highly relevant experience to the table. Toguri’s career spans the cannabis, beverage, alcohol and apparel industries, during which he has gained over two decades of regulated industry knowledge and pertinent cannabis distribution expertise. More specifically, he led sales for cannabis giant Aphria (NYSE: APHA) (TSX: APHA) where he managed medical and recreational sales to patients and consumers.
Before embarking into cannabis with Aphria, Toguri spent four years as VP of Sales and Operations at Southern Glazer’s Wine & Spirits of Canada, helping to build the company into a leading alcohol broker in Canada. Prior to that role, he was Director of Operations at Glazer’s and served in leadership positions at Molson Coors (NYSE: TAP) (TSX: TPX.B) and Beam Global Spirits & Wine. Supreme Cannabis will surely benefit from Toguri’s relevant experience and leadership expertise.
The Company’s new COO, John Griese, sports a somewhat similar background, most recently serving as COO for two cannabis-oriented companies (Creso Pharma and Bloom Farms). Prior to that, he held senior-level supply chain positions with Nestle (OTC: NSRGY), Frito-Lay (PepsiCo NASDAQ: PEP), and large private Canadian company Sofina Foods.
Taken together, one can see Supreme’s focus on consumer goods as cannabis moves from the wholesale niche to a much broader retail market. The Company’s decision to hire individuals with experience in the cannabis space also demonstrate that they care to maintain one of the Company’s key differentiators: Supreme Cannabis is often credited as one of the few Cannabis Companies who maintains respect for the plant and who has a true understanding of cannabis and the consumer.
However, these hires demonstrate that a shift is certainly happening in Canada, with last year’s legalization followed by this year’s expansion into Cannabis 2.0. CPG expertise should allow Supreme Cannabis to establish their brand and maximize operations in Canada preparing the company for larger international marketing opportunities that are starting to form across the globe.
Blissco CBD Oils Launch
Since October 17, 2019, Supreme Cannabis has established a highly successful recreational brand. 7ACRES, is Supreme Cannabis’ brand for the quality-oriented cannabis enthusiast. The company has successfully launched its premium flower products for this consumer and is looking for opportunities to broaden its consumer reach, launching brands for different experiences.
In Supreme’s bid to capture its share of the recreational market, Toguri is being tasked to develop and drive sales strategies, business development and retail growth. This includes supporting the launch of new products under Supreme Cannabis’ wellness brand, Blissco. With a focus on the wellness consumer’s experience, Blissco’s high-quality CBD oils were recently launched into the Canadian market. Founded in 2013 and acquired by Supreme earlier this year, Blissco is a respected brand that has a facility with advanced extraction infrastructure to produce over 7 million tincture bottles by New Year’s Day.
The new Blissco CBD oil, Pūr Dew, further diversifies the Supreme product offerings, which include the Blissco brand, dry flower from 7ACRES and high THC cannabis oils from KKE. 7ACRES was distinguished as “Brand of the Year” at the Canadian Cannabis Awards last quarter. Against that backdrop, Toguri will leverage his experience to maintain growth in the 7ACRES brand and distribution across the country, which includes agreements to sell the brand in 8 provinces.
A Bold Target: $150 Million
“As we grow our team, we believe our focused business and industry leading culture will continue to attract exceptional personnel like Mr. Toguri,” commented Supreme Cannabis CEO Navdeep Dhaliwal in a statement on the new VP of Commercial.
During the first quarter of fiscal 2020 ended September 30, 2019, Supreme reported revenue of $11.43 million. That more than doubled the $5.1 million from the year prior quarter, although it was a contraction from $19 million in Q4 fiscal 2019, as the company underwent a transitory period from a wholesale outfit to a consumer packaged goods firm, as well as coped with (a now-rectified) mechanical failure in three 7ACRES grow rooms and, in general, an extremely challenging Canadian market during the quarter.
Management is not discouraged by one sluggish quarter, maintaining its guidance for fiscal 2020 for revenue in the range of $150 million to $180 million and positive adjusted earnings before interest, taxes, depreciation and amortization (EBITDA).
Furthermore, Supreme entered into a credit agreement with Bank of Montreal for $90 million of senior credit facilities consisting of a term loan of $70 million and a revolving credit facility of $20 million. In an environment where “good” money has been very difficult for cannabis companies to come by, the credit facilities speak to the quality of Supreme’s operations and business model as it moves into being a full-fledged CPG company.
CannabisFN.com is not an independent financial investment advisor or broker-dealer. You should always consult with your own independent legal, tax, and/or investment professionals before making any investment decisions. The information provided on https://www.cannabisfn.com (the ‘Site’) is either original financial news or paid advertisements drafted by our in-house team or provided by an affiliate. CannabisFN.com, a financial news media and marketing firm enters into media buys or service agreements with the companies that are the subject of the articles posted on the Site or other editorials for advertising such companies. We are not an independent news media provider. We make no warranty or representation about the information including its completeness, accuracy, truthfulness or reliability and we disclaim, expressly and implicitly, all warranties of any kind, including whether the Information is complete, accurate, truthful, or reliable. As such, your use of the information is at your own risk. Nor do we undertake any obligation to update the items posted. CannabisFN.com received compensation for producing and presenting high quality and sophisticated content on CannabisFN.com along with financial and corporate news.
This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.
Follow Us on Social Media
About CFN Media Group
CFN Media Group (CannabisFN), owned and operated by CFN Enterprises Inc. (OTCQB: CNFN), is the leading creative agency and media network dedicated to legal cannabis. We help marijuana businesses attract investors, customers (B2B, B2C), capital, and media visibility. Private and public marijuana companies and brands in the US and Canada rely on CFN Media to grow and succeed.
CFN launched in June of 2013 to initially serve the growing universe of publicly traded marijuana companies across North America. Today, CFN Media is also the digital media choice for the emerging brands in the space.
Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: https://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.cannabisfn.com/legal-disclaimer/.