{"id":74257,"date":"2024-04-15T03:20:00","date_gmt":"2024-04-15T11:20:00","guid":{"rendered":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/2024\/04\/15\/did-mj-unpacked-just-change-things-up\/"},"modified":"2024-04-17T00:45:27","modified_gmt":"2024-04-17T08:45:27","slug":"did-mj-unpacked-just-change-things-up","status":"publish","type":"post","link":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/2024\/04\/15\/did-mj-unpacked-just-change-things-up\/","title":{"rendered":"Did MJ Unpacked Just Change Things Up?"},"content":{"rendered":"

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The oceanfront casino-wielding town of Atlantic City, NJ, was the latest backdrop for the MJ Unpacked 2024 cannabis trade show. The event differentiates itself from other shows in the industry by niching down and keeping the conference exclusive to retailers, brands and investors. This year was different.<\/p>\n

The cultivation and science sectors were also front and center, and the keynote speaker was the renowned Israeli cannabinoid research scientist Dr. Dedi Meiri. A statement by Kim Jage, co-founder of MJ Unpacked and Jage Media, included in a recent MJ Unpacked press release<\/a> also gave clues to the show\u2019s shift. \u201cHaving Dr. Dedi Meiri, a globally recognized researcher, as our keynote speaker emphasizes our dedication to fostering a deep understanding of cannabis\u2019 potential,\u201d Jage said. \u201cThis year, we\u2019re amplifying the importance of scientific research and financial growth, reflecting the industry\u2019s evolving priorities.\u201d<\/p>\n

4 Distinct Tracks, Many Impressive Panelists<\/h4>\n

The three-day conference kicked off with a power-packed agenda of insightful panel discussions and strategic networking opportunities. While the exhibitor floor wasn\u2019t available until the following days, this deliberate move by founders Kim and George encouraged a strong sense of community. Attendees like myself could delve into industry discussions and connect with peers over catered lunches, creating a foundation for even more productive interactions on the expo floor when it opened.<\/p>\n

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Globally recognized researcher Dr. Dedi Meiri speaking at MJ Unpacked 2024. <\/figcaption><\/figure>\n

Scientific Insights Pave the Way<\/h4>\n

The conference\u2019s dedicated science track buzzed with researchers delving into the complexities of cannabis. Dr. Meiri\u2019s keynote, \u201cLessons Learned From The Complexities of Cannabis Profiling,\u201d explored his team\u2019s cutting-edge research on precision medicine. Their methods aim to comprehensively identify cannabinoids and match them to specific diseases for personalized treatment.<\/p>\n

Dr. Codi Peterson of Cannigma championed the need for regulations and a standardized identification system for synthetic and plant-derived cannabinoids (phytocannabinoids). Dr. Peterson argued it would ensure consumer safety and regulatory clarity and guide future product development, mirroring established systems in the natural product industry.<\/p>\n

A group of scientists took the stage and agreed that rescheduling is a positive step for research. However, all emphasized the need for federal legalization to unlock federal grants and institutional financing. Panelist Jahan Marcu, Ph.D., highlighted this conundrum: Universities now offer degrees in cannabinoid medicine, yet graduates have limited opportunities due to federal restrictions on cannabis research.<\/p>\n

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Exhibitors share information.<\/figcaption><\/figure>\n

Cultivation Gets a Spotlight<\/h4>\n

Adding a dedicated Cultivation Track was a welcome recognition of this crucial sector. Panels explored the \u201cbusiness and art\u201d of cannabis cultivation, addressing topics like niche creation, differentiation and cost-optimization strategies.<\/p>\n

A recurring theme throughout the conference was the rise of \u201cintoxicating hemp\u201d and its impact on the industry. Concerns swirled about its legality and potential risks\/rewards for THC companies seeking brand awareness across state lines. Investors and researchers emphasized the urgent need for clear legal boundaries to prevent illegal activity, public confusion and difficulties for policymakers.<\/p>\n

Frank Colombo, managing director at Viridian Capital, raised concerns about the capital crunch facing cultivators. Debt financing burdens over 90% of farmers, leading to investor panic in late 2023 as debt maturities loomed without clear repayment plans. Later that day, another investor panel unanimously confirmed this sentiment.<\/p>\n

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MJ Unpacked is an excellent networking opportunity.<\/figcaption><\/figure>\n

Investors Eye Opportunities, Cautiously<\/h4>\n

The Investor and Finance Track was a mix of optimism and caution from industry veterans. Both bullish on long-term potential, Pablo Zuanic and Frank Colombo addressed the lack of predicted M&A activity. They attributed it to the capital crunch of 2023 that forced MSOs to prioritize cash flow and market consolidation. Colombo, however, sees positive signs for future M&A based on valuations of top-tier MSOs.<\/p>\n

Patrick Rea asked, \u201cWhere will the market need financing once 280E releases capital?\u201d Colombo commented that there would be less need for capital raises after 280E for operational costs because MSOs have been in cost-cutting mode and streamlining operations for the last two years. Many are now cash flow positive and managing debt. Zuanic sees Florida\u2019s potential legalization as a catalyst for consolidation, requiring capital for store expansions.<\/p>\n

The VC Mega Panel, moderated by Patrick Rea, featured a mix of early and late-stage investors. When asked about pre-revenue capital raising, the panel unanimously agreed that entrepreneurs need to demonstrate operational expertise and profitability before seeking venture capital. Family and friends should be the initial funding source. \u201cWe help you grow, not get started,\u201d was the echoed sentiment, reflecting the panelists\u2019 own journeys.<\/p>\n

Rea closed with a note of cautious optimism, predicting a return of investment flow, likely favoring established companies.<\/p>\n

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MJ Unpacked 2024 contained power-packed agenda of insightful panel discussions.<\/figcaption><\/figure>\n

Retailers Want Brands to Earn Their Shelf Space<\/h4>\n

The Retail and Brand Track attracted brand owners eager to learn from top MSO buyers. TerrAscend\u2019s Chantelle Elsner, Rebecca Raphael of Curio Wellness, and Julie Winter of Ayr Wellness shared insights into what gets their attention.<\/p>\n

For these retailers, the key question is: \u201cHow will this brand help us sell more products?\u201d Collaboration is key. Buyers want brands to offer deals, exclusivity, strategic product launches and support for budtender education. All panelists emphasized building strong budtender relationships.<\/p>\n

Elsner offered advice on getting noticed by buyers: Identify gaps in a dispensary\u2019s house brand selection and pitch products to fill them. Raphael highlighted the opportunity for $10 or less trial-size products to entice new customers and increase basket sizes.<\/p>\n

Investors Favor Scalable Brands and Vertically Integrated Retailers<\/h4>\n

Patrick Rea asked about investors\u2019 perceptions on brands. The panel acknowledged the challenges of brand building in a fragmented, state-by-state market.<\/p>\n

Here\u2019s what resonated with the investors:<\/p>\n