Belushi’s Warning And Tech’s Answer: Think Twice Before Dropping Prices😎

Jim Belushi warns cultivators about crowded markets, while tech leaders push data-driven solutions to boost efficiency and margins, and combat price drops.

Author

Nicolas Rodriguez
October 10, 2024

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Another Thursday in the cannabis industry, which isn’t just about plants—it’s about playing smart. Nicolás Rodríguez here, bringing you the latest from the most important cannabis finance conference in the world. Speaking in Chicago at the Benzinga Cannabis Capital Conference, artist and cannabis farmer Jim Belushi warned cultivators against diving into crowded markets, but for investors, there’s plenty more to explore. Meanwhile, Tilray reported earnings and tech leaders say the days of price wars are behind us, pushing data-driven strategies that boost customer loyalty and keep margins healthy.

Jim Belushi captivated the crowd at the 2024 Benzinga Cannabis Capital Conference, comparing his acting career and his journey in cannabis. "You want them to leave the theater feeling good," he said, emphasizing cannabis’s ability to heal and uplift. Now with products in 14 states, Belushi shared a word of caution: “Don’t f***ing do it,” reflecting on Oregon’s oversaturated, low-margin market.

But Belushi’s frustrations with cultivation only scratch the surface. Growing cannabis is a tough game—demanding scale and tech and often fighting for slim margins in crowded markets. Yet, the cannabis industry is more than just plants in the ground. From retail and branding to distribution and compliance, the supply chain is ripe with opportunities that offer higher returns without the same risks. Belushi’s experience, while genuine, is rooted in a tough market and isn’t the final act for savvy investors.

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"Price Wars Are Over," Industry Goes Full Tech

Cresco Labs CEO Charlie Bachtell isn’t mincing words when it comes to the challenges of today’s cannabis market. With margins tightening, especially in saturated states, Bachtell stressed the need to “get more juice from the same squeeze,” urging companies to work smarter, not just harder. Speaking at the Benzinga Cannabis Capital Conference in Chicago, he highlighted the constant balancing act between scaling up and staying profitable in a highly regulated industry.

"Not only are you fighting this fight with one and a half hands tied behind your back, but then you are also expected to get profitable too," Bachtell said, adding it’s a constant evaluation and balancing growth while maintaining margins.

It seems tech leaders took note of the problems affecting the industry and, later that day, stepped onto the stage to offer a fresh solution. FlowHub CEO Kyle Sherman, along with other cannabis innovators, championed data-driven strategies and AI to improve efficiency and personalization. “We’re moving past price wars,” Sherman noted, explaining how technology allows businesses to focus on customer loyalty and smarter operations, rather than just price cuts. While Bachtell highlights the grind, the tech sector is showing that smarter processes, driven by data, may just be the edge the industry needs.

Stop Slashing Prices—Use Data To Bring Customers Back

“Discounts will hurt your margins, but loyalty points won’t,” said Lisa Williams, founder of The Toke Agency, at the Benzinga Conference. Williams explained that data-driven loyalty programs, not price cuts, are key to retaining customers.

Kris Walker from Hoodie Analytics highlighted how real-time data from POS systems and wholesale platforms helps retailers optimize their strategies. For example, dispensaries can analyze purchasing patterns to offer personalized rewards or target promotions based on customer preferences.

AI isn’t just a buzzword—it’s helping retailers predict the perfect moments to run sales, dodging the margin-killing effects of endless discounts. By tapping into data, businesses can craft personalized experiences that build real customer loyalty, keeping them coming back for more without slashing prices.

Tilray Toasts To Beverage Growth In Q1 2025

Tilray Brands, Inc. (NASDAQ: TLRY) announced its financial results for Q1 2025 this morning, achieving a 13% year-over-year growth with net revenue of $200 million, up from $177 million in the prior year. The company reported a gross profit of $59.7 million, translating to a gross margin of 30%, an increase from 25% in the previous year. 

Despite a net loss of $34.7 million, the adjusted EBITDA stood at $9.3 million, showcasing operational efficiency amid growth. Tilray Beverages led the charge with a 132% net revenue growth, driven by the launch of hemp-derived Delta-9 THC products, while German medical cannabis flower revenue surged by 50% following recent legalization.

Forget Trump vs. Harris—Florida’s biggest election fight is about cannabis. Amendment 3, the initiative to legalize cannabis, has drawn a staggering $68 million in ad spending, dwarfing the mere $1.4 million spent on the presidential race. Leading the charge is Trulieve (OTC: TCNNF), pumping $55 million into backing the amendment. On the other side, opponents, including the Florida Republican Party, have spent $11.7 million to fight it.

As Florida’s vote on cannabis legalization approaches, the lawsuits are piling up, with both sides "poking the bear." Jason Erkes, Chief Communications Officer at Cresco Labs (OTC: CRLBF), noted, "I generally don't think it's a good idea to poke the bear," but in this case "one way to discredit a false narrative is to launch a lawsuit." It's a great PR campaign, he added. From claims of deceptive TV ads to misuse of taxpayer dollars, the stakes are high for Amendment 3. With $100 million raised, Florida’s campaign is the most well-funded in cannabis history—and the fight is just getting started.

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Nicolás holds a B.A. in International Relations, an M.A. in International Affairs, and an M.Phil in Public Policy. He is a doctoral student in Public and Urban Policy at The New School in New York City. After working for the United Nations in 2014, Nico pivoted his research to studying the relationship between the cannabis industry and economic development.

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