Ryan G. Smith

When I open this app I keep seeing people say we need collaboration, not consolidation in the cannabis industry. I think that framing misses the point entirely. When two major companies combine — like Wyld and Grön — their partners don’t get left behind. They get pulled into a bigger ecosystem with more resources and higher expectations. Suddenly the supplier that served one company is now critical infrastructure for both. That is collaboration CREATED by consolidation. But the reality is we DO need consolidation. We have lots of companies that should be products, lots of good assets being under leveraged, lots of talented people working for too many companies. We as an industry need to evolve out of a mindset that every company has a right to exist. Business is darwinism. The strong acquire and grow, the weak get acquired, or die. I’m a huge believer that cannabis and its participants can become a much stronger industry if we all try to find the right dance partners for the next phase. Big, big players (tobacco, alcohol, pharma) are lurking and they will move fast once rescheduling is complete. A fragmented industry with no consolidated value is easy to pick apart. The companies building real partnerships inside larger structures will be the ones still standing. Everyone else will be waiting for someone to save them. Don’t lose sight of where we are in the market maturation cycle. This is the consolidation phase.

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🎙️ CannaDiva Conversations: Special Episode – BioTrack, Compliance & NY Cannabis The CannaDiva In this special episode, I sit down with Anne Forkutza from BioTrack, New York’s official seed-to-sale tracking provider, for a candid and informative conversation on compliance, accountability, and the realities of track-and-trace in New York State’s cannabis industry. Whether you're a cultivator, processor, distributor, or retailer, this episode is packed with critical insights to help you navigate the transition to BioTrack — with clarity, calm, and community in mind. We discuss: What BioTrack is and how it integrates with NYS OCM Why seed-to-sale traceability matters and who’s responsible The compliance timeline for license holders Common challenges and how to prepare Equity, scale, and supporting small operators in the transition This conversation is a must-listen for anyone in the NY cannabis space looking to stay compliant and informed. Resource Links: Digital Inventory Tag Guide https://lnkd.in/g_vB3jEM https://lnkd.in/guJNmAzt OCM Seed-to-Sale Page https://lnkd.in/g8-uvfVM BioTrack https://lnkd.in/g3CWeVwz https://lnkd.in/gUsFq93a Follow on Instagram @biotrackthc @thecannadiva https://lnkd.in/gr8VDH9q

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When it comes to capital strategy in the cannabis industry, strategic investors are not simply seeking “exposure” to the sector. Instead, their focus is on acquiring specific capabilities—such as compliant supply chains, consistent quality standards, route-to-market leverage, and brands with the potential to expand across markets. In cannabis, the true test of strategy occurs after the deal closes. Integration challenges can arise due to state-by-state fragmentation, quality assurance failure modes, channel conflicts, and concerns about whether the operating system can scale without jeopardizing compliance or the brand itself. Three primary capital strategies are emerging within the industry: * Asset-heavy vertical integration * Pure brand licensing * Hybrid infrastructure platforms Each of these strategies has inherent strengths. Asset-Heavy Vertical Integration Asset-heavy vertical integration is a strategic approach centered on control and synergies across inputs, manufacturing, and distribution. However, this model concentrates regulatory and execution risks, and its effectiveness depends on maintaining a fully utilized footprint and a replicable playbook across different markets. Brand Licensing - (Admitted bias - The Clear Brands has embraced this strategy completely) Licensing offers a strategic advantage for brands looking to expand reach without owning every facility. This approach can deliver option value across various geographies, but it requires rigorous specifications, testing procedures, and partner governance to ensure the brand maintains its consistency everywhere. Hybrid Infrastructure Platforms Hybrid platforms are creating a “shared services” layer, including compliance, QA, manufacturing systems, and distribution standards that brands can connect to. This strategy is particularly appealing for bolt-on opportunities, provided the platform is truly interoperable and not just a standalone solution. The central question is not which model is currently popular, but which approach best reduces operational risk while preserving brand integrity. Ultimately, capital gravitates toward predictability, since repeatable returns depend on it. This principle is consistent across all consumer categories. From a strategic perspective, it’s vital to determine where to place the bet: should you own the assets, own the brand, or own the operating system? The right choice is the one that increases integration velocity while maintaining quality and regulatory durability. #theclearbrands #TWAXbyTheClear #TheClearEFX

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Here’s how increased access to cannabis led to Sparkplug’s explosive growth… The startup — a LAUNCH portfolio company — offers a SaaS product that educates and rewards and benefits the dispensary clerks and “budtenders” who actually sell cannabis to clients, incentivizing them to sell more and allowing them to share in the proceeds. It turns out, as more and more states decriminalize cannabis and offer consumers a pathway to making legal purchases… it has lit a fire under Sparkplug and other companies in the cannabis space. Hear straight from CEO Andrew Duffy about how limiting unnecessary regulations opens up now doorways for innovative companies — and why the cannabis business in general might be on the precipice of a breakout moment — in this clip from our first-ever This Week in Cannabis expert roundtable.

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The legal cannabis industry continues to mature into a significant global economic sector. • The U.S. market alone is projected at over $40B in annual revenue • Global growth is expected to continue at strong double-digit rates through the end of the decade • Expansion is being driven by legalization, medical adoption, product innovation, and regulatory reform Beyond retail sales, the real opportunity lies in ancillary services technology, compliance, logistics, real estate, branding, and infrastructure. As regulatory clarity improves, capital continues to look for well structured, scalable businesses in this space. The cannabis sector is no longer speculative hype, it’s an evolving industry with real revenue, real employment, and real economic impact.

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