- Supreme Cannabis is a promising turnaround story out of Canada, thanks in large part to its CEO, Beena Goldenberg.
- Delivering sustainable profitability, driving revenues and the developing Canadian retail picture.
- Being a role model for women executives and thoughts on the global cannabis landscape.
Beena Goldenberg came on as CEO of Supreme Cannabis (SPRWF) in April 2020 and has done a lot towards turning the company around and putting it on the path to consistent profitability. Prior to joining Supreme, Beena was CEO of Hain-Celestial Canada, a subsidiary of The Hain Celestial Group (NASDAQ: HAIN) and worked in the CPG space for over 30 years. Beena also serves on the Board of Food and Consumer Products of Canada, the largest CPG industry association.
- Beena spent over 30 years in the CPG industry in a variety of roles. Was CEO of Hain Celestial Canada for 15 years (Irwin Simon of Aphria (APHA) was her mentor at Hain) and that attracted Beena to industries that had tailwinds in consumer adoption. Sectors with exciting growth stories ahead of them like cannabis similar to organic sector decades ago, though growth in cannabis has been more radical.
- Thoughts on Aphria/Tilray (TLRY) deal that's changing Canadian landscape. Also a group of smaller players with differentiation, which Supreme is a part of. Supreme sticking with its core - high quality, premium brand with 7Acres Craft Collective, while other companies are looking for value brands. Highest price per gram offering of the top 10 LPs - higher price that consumers continue to buy because of the value and quality.
- Coming on board at Supreme - work had started with previous Interim CEO; was focused on right sizing infrastructure and driving revenue growth, focusing on CPG and retail market, building brands not wholesale. Meeting consumers at different price points. That's what got them to positive EBITDA and now on path to be sustainably profitable despite challenges of Covid.
- Fighting through brand and packaging restrictions in Canada. Canadian retail picture developing. [Supreme just announced new THC gummies.] Bringing people in from illicit market, also leaving value segment to higher priced premium products. Not just about potency - about terpenes, overall experience.
- Concentrates will continue to grow - California is the more mature example that bears this out. Supreme adding flower but wanted to break in with hash. #3 player in concentrates in Canada. Growing interest in that part of the sector.
- Beena takes Q&A based on Seeking Alpha commenter questions on recent earnings call.
- Paused deal with Breath of Life in Israel with Truverra brand - growing interest over 4 consecutive deals. Regulations in Israel were changed last quarter and have created a delay which is frustrating but hopeful it will get worked out.
- Thoughts on global cannabis landscape. How Supreme decided to get into the regions they're in: Israel, Australia, Germany. Quality offerings at the right price. Focused domestically on Canada and internationally not on the US currently.
- Recently completed a couple capital raises that allows them more flexibility on balance sheet. Consecutive quarters of positive EBITDA is the immediate goal; Q3, given Covid restrictions, might be softer than Q2 but delivering sustainable profitability and driving revenues are main priorities.
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