2025 is looking to be a great year for smart operators in the cannabis industry. Sales are booming and the cultural and political climate surrounding cannabis is changing. However, 2025 will see greater competition in some mature cannabis markets, leading to market contraction as distressed operators close their doors or sell. Successful businesses will need to reduce costs and operate more efficiently than ever before. Jaunty has adapted to the changing business conditions, making some major changes to its business model. There may be some lessons to be learned from Jaunty’s business journey.
Consolidating brands into one
Recently, one cannabis brand owner consolidated several brands into one house brand, Jaunty, to reduce marketing expenditures. The company previously branded its hash oil as Rezinators, its vape concentrates and edibles as Jaunty and its tinctures as Jumbodose.
Self-distribution
Jaunty is saving money compared to the cost of working with third party distributors by moving to self-distribution and using a subzone distribution strategy. Distribution requires an investment in warehousing facilities, transportation vehicles and additional labor costs but costs are reduced long term by using small energy efficient vehicles, small efficient product packaging, and dry ice for refrigerating during transport rather than refrigerated trucks.
Getting out of white labelling
The Company stopped producing white label products for others so it could focus all of its resources on building its own brand.
Investing in its suppliers
Jaunty builds strong collaborations with the farms that provide cannabis for extracted products by buying cannabis seeds for the farmers, preparing the lands for cultivation and providing each partner farm with a harvest plan and labor for harvest. With this assistance from Jaunty, the cultivators focus on the growing part and producing top quality and clean cannabis plants.
If your cannabis business venture is looking to make some changes, our team can help with business restructuring, branding, regulatory compliance, licensing, mergers and acquisitions, leasing and contracts. Give us a call and let’s discuss how to take your business to the next level. In this highly regulated industry, the landscape is continually evolving due to regulatory changes, lawsuits and political climate. Missteps can have expensive and sometimes irreversible consequences on the business and its principals. The entire business investment could be lost or the principal could become ineligible for further licenses in New York (and potentially other states as well). It is important to have an experienced team of consultants to guide you through the transaction.
If you’d like legal guidance in exploring an opportunity to acquire a marijuana business or license, please contact our office. We would be honored to help.
This presentation is for general informational and educational purposes only. You should not rely on the content of this presentation as a professional legal advice to be applied to any specific factual situation. No claim is made as to the accuracy, completeness, timeliness, relevance or adequacy of the content and we expressly disclaim any liability for errors or omissions in such content. As the law differs in each legal jurisdiction, and may be applied or interpreted differently in your location or situation, the information in this presentation is not a substitute for the advice of a lawyer.
Tracy Jong is a Senior attorney at Evans Fox LLP with 30 years of experience focusing her practice in business law, intellectual property and licensing for alcohol and cannabis. Tracy Jong is a member of the New York Bar and is a registered attorney at the United States Patent and Trademark Office. She can be reached at [email protected].
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The content has been prepared for informational purposes only; it should not be construed as legal advice, does not create or constitute an attorney-client relationship, and readers should not act upon it without seeking professional counsel.