Marijuana Business Factbook 2019

217 © Copyright 2020, Marijuana Business Daily , a division of Anne Holland Ventures Inc. You may NOT copy this Factbook, or make public the data and facts contained herein, in part or in whole. For more copies or editorial permissions, contact CustomerService@MJBizDaily.com or call (720) 213-5992, ext. 1. Financial & Operational Data: Cannabis Product Manufacturers | Chapter 4 MJBIZDAILY.COM CHART 4.11: Portion Of Profitable Cannabis Product Manufacturers In 2018 By Level of Diversification & Number of Products Offered Source: 2019 Marijuana Business Factbook © 2019 Marijuana Business Daily, a division of Anne Holland Ventures Inc. All rights reserved. Portion Of Profitable Cannabis Product Manufacturers In 2018 By Level Of Diversification & Number Of Products Offered Offer Products Across A Single Category Offer Products Across Multiple Categories 27% 47% 23% 23% 50% 30% 1-3 4-6 7-10 11-15 More Than 15 20% 60% 83% 64% 22% 33% 30% 18% 72% 47% 10% 17% 18% 6% Profitablity By Categories Competing In Profitability By Number Of Products Produced Unprofitable Break-Even Profitable 72 17 5 Infused product manufacturers offering items across multiple categories were more profitable in 2018 than those offering products in a single category. Additionally, the more products a manufacturer offered, the more likely they were to be profitable ― up to 15 products, beyond which profitability declined somewhat. Diversification is a key aspect of running a successful infused product business, as companies can leverage their name and reputation in one space when moving to another product category . F or example, a gummy manufacturer could build on its reputation in that space when introducing products in the infused juices arena. This strategy allows the company to gain valuable shelf space with retailers based on an established relationship or recognition of product and brand strength. This doesn’t necessarily mean that a company will be successful solely because it offers more products. Rather, product line expansion may be a result of success in other areas ― with companies investing their profits in the new products.