“Developing a quality product that’s always available on the shelf and having good brand reps who are happy when they go in, that’s what has made us successful.” – Jake Berry
The finer details of this episode:
- Jake Berry's journey from budtender to CEO of Cloud Labs
- Business model and growth strategies in cannabis manufacturing
- Importance of understanding market dynamics and consumer behavior
- Challenges of market saturation and pricing pressures in different states
- Insights on product categories and innovation in cannabis products
- Regulatory challenges and the role of industry associations
- Strategies for market expansion and site selection
- Future market opportunities and predictions for cannabis markets
- The impact of potential legalization and interstate commerce on the industry
Episode resources:
- Book a free consultation with Guillermo: https://anderscpa.com/virtual-cfo-cannabis/
- If you’d like to be a guest on the show: [email protected]
- Love our content? Sign up for our newsletter: https://www.summitcpa.net/summit-cannabis-newsletter
- Connect with Jake here: https://www.linkedin.com/in/jake-berry-loudlabs/
- Check out Cloud Labs here: loudlabs.co
Timestamps:
Introduction to the Episode (00:00:00)
Guillermo Rodriguez introduces the Cannabis Success Show and its focus on scaling cannabis businesses.
Guest Introduction (00:00:26)
Guillermo introduces Jake Berry, CEO of Cloud Labs, discussing his transition from retail to manufacturing.
Brett's Thoughts on the Interview (00:01:01)
Brett Adams shares insights about Jake's market vision and his successful business approach.
Upcoming Insights (00:01:29)
Guillermo hints at actionable tips and market demands that will be discussed later in the episode.
Jake's Background (00:02:07)
Jake Berry recounts his journey from budtender to cannabis manufacturer, starting in Colorado in 2013.
Initial Business Plans (00:03:08)
Jake discusses his initial plan to open a dispensary and the evolution of his business model.
Challenges in Obtaining Licenses (00:04:05)
Jake explains the difficulties he faced in acquiring cannabis licenses in a limited market.
Realization of Business Potential (00:06:02)
Jake reflects on his bud-tending experience, realizing the potential for running a successful cannabis business.
Data and Retail Operations (00:08:22)
Discussion on the importance of data analytics in managing cannabis retail operations effectively.
Financing Decisions (00:09:06)
Jake shares his decision to avoid debt and the implications it had on his business growth.
Business Model Overview (00:12:14)
Guillermo asks Jake to explain his manufacturing-focused business model in the cannabis industry.
Connecting with Retailers (00:15:45)
Jake discusses strategies for building strong relationships with retailers to promote his products.
Market Dynamics in New Jersey and Michigan (00:17:37)
Jake highlights the pricing strategies and market conditions in New Jersey compared to Michigan.
Product Categories and Pricing Strategy (00:20:22)
Jake outlines the different product categories his company operates in and their market share dynamics.
The Gummy Market Dynamics (00:21:24)
Discussion on gummy pricing and market competition, particularly in Michigan.
Price Compression in Cannabis (00:23:12)
Insights on how price compression affects various cannabis product categories.
Market Trends and Consumer Behavior (00:24:25)
Exploration of consumer purchasing trends and potential market stabilization.
Future Price Predictions (00:25:20)
Jake discusses anticipated price drops in emerging markets like Missouri.
Impact of National Legalization (00:26:14)
Effects of national legalization on consumer behavior and market dynamics.
Industry Regulations and Trade Organizations (00:28:23)
The role of trade organizations in lobbying for beneficial regulations.
Networking in the Cannabis Industry (00:30:08)
Importance of networking and community in the cannabis business.
Market Expansion Strategy (00:31:04)
Jake shares his approach to entering new cannabis markets.
Market Research and Analysis (00:34:01)
Jake discusses how he selects new markets based on demographics and regulations.
Challenges of Starting New Markets (00:36:53)
The lengthy and challenging process of launching cannabis operations in new states.
Future Market Interests (00:37:40)
Jake expresses interest in Ohio as a promising market for cannabis.
Risks of Real Estate in Cannabis (00:38:45)
Challenges of real estate investment in the cannabis industry.
Emerging Markets and Opportunities (00:40:16)
Potential of Minnesota and Ohio markets for future growth.
Market Entry Challenges (00:41:07)
Discussion on the timeline and costs associated with obtaining cannabis licenses and starting a business.
Data Sources for Market Research (00:41:59)
Jake Berry shares insights on effective data sources for understanding market performance.
Limitations of Market Data (00:42:44)
Critique of existing data sources and the importance of accurate, real-time market data.
Impact of Online Menus (00:43:51)
The shift to online menus post-COVID and its effect on data collection in the cannabis industry.
State Data Accessibility (00:45:04)
Exploration of state-provided data and its usefulness for cannabis businesses.
Legalization and Market Dynamics (00:45:18)
Jake discusses the implications of legalization and rescheduling on his business strategies.
Interstate Commerce Concerns (00:46:39)
Concerns about interstate commerce and its potential impact on local businesses and jobs.
Competition with Large Producers (00:48:42)
The challenges small businesses face when competing against large-scale cannabis producers.
Future of Cannabis Manufacturing (00:49:32)
Speculation on the future of cannabis manufacturing amid changing regulations and market dynamics.
Final Thoughts on Industry Changes (00:51:01)
Reflection on the potential consequences of legalization for small cannabis businesses.
Conclusion and Contact Information (00:52:05)
Jake Berry shares where to find him and his company, promoting their upcoming website.
