The industry has become a hazard of pitfalls of false, misleading, outdated or simply missing information regarding suppliers and products. This has created a whirlwind of confusion and risk for all parties in the supply chain including the unsuspecting consumer!
Supply chain Laden with False and Misleading, Outdated or Missing information regarding suppliers and products
Creates Confusion and Risk for All Buyers in the Supply Chain
Creates Potential Health Risk to Consumers
Lab Reports are often falsified hiding dangerous micro-toxins or ingredients and over or understating Cannabinoid Levels – creating harmful consequences to consumers
Manufacturers and Merchants May Mis-Represent Certain Industry Registrations such as Licensing and Industry Certifications that are Fraudulent and Mis-Leading and Customers are none-the-wiser as they have no way to validate and verify.
Quality Companies are Getting Lost amidst in the Crowd of Low Quality Providers that Offer Lower Prices Since they Do Not Spend Money on Quality Practices or Compliance to Protect their Customers
Excellent Brands have no way to Differentiate and Prove their Quality to Buyers – it is Truly a Buyer Beware Situation with Zero Validation of Quality Companies and Brands
“Buyers are Confused and Assume that Larger More Established Brands are the Only Flight to Safety Leaving Smaller to Mid-Size Brands Struggling to Compete — —–According to the Consumer Brands Association 2019 Study Whether they have purchased CBD products yet or not, the majority of Americans (70%) were clear that they would be more confident in the safety of CBD products if they were manufactured by a large, well-known brand.”
All of these Pressures Hinder Growth and Profitability of Companies
The Rising Cost of Compliance, The Growing Risk of Enforcement Actions and Civil Litigation are Negatively Impacting Profitability in the Sector
Top Line Revenue Growth is Hindered as Companies Struggle to Compete in a Crowded Space of Both Quality and Non-Quality Brands and Consumers Can’t Tell the Difference – This is Impacting Enterprise Valuations in the Industry and Impacting Overall Gross Margins