By Ryan Elmore
For companies looking to break into the cannabis industry, launching into the market as another generic cannabis company generally isn’t the way to do it. Even the bigger and more established businesses are shifting their business models to focus on one or two sectors of the industry in order to differentiate themselves while also keeping their production costs down.
A prime example for that would be Cronos Group’s desire to specialize in terpene production for oils. It doesn’t take a team of financial experts to see that oil has an incredibly lucrative future in the cannabis industry, and that’s what Cronos Group has realized after looking at its earnings from this year.
As for terpenes, they’re the newest opportunity craze when it comes to the technology of extraction. Without getting into the exact science of them (that’s what Google is for), terpenes are basically the “essential oils” of the industry and viewed as a potentially major factor in the cannabis world — and there’s currently a pretty significant shortage of high-quality plant-based terpenes.
The reason this is important for us here at Gladbrook Holdings is that we’re working on a similar specialized processing system and facility for terpenes. At this point in time, it’s a glaring market inefficiency and an obvious opportunity for a qualified company to take advantage of. Given our scientific background, we believe we’ll be able to produce world-class terpenes at an efficient level and we should be able to capitalize on it in both the short term and long term.
As the industry continues to grow, there’s going to be more and more specialization coming from companies. Whether it’s a scientific process like extracting terpenes, a business model like home delivery, or a unique take on branding and marketing, everyone’s looking for their way to stick out in a rapidly saturating market.