Marijuana Business Factbook 2019

xv MJBIZDAILY.COM Executive Summary © 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. 2. VALUE OF DIVERSIFICATION IN CANNABIS PRODUCT MANUFACTURING In 2018, diversification of product lines was a key to profitability. Cannabis product manufacturers offering goods across multiple categories pulled in higher profits than those focused on a single category. Diversification also offers manufactured cannabis product businesses a key advantage in the marketplace. Companies can leverage their name in one sector to more easily gain valuable shelf space in another category. This path does have its limits. For instance, adding more products will not automatically make a mediocre company successful, but successful businesses and brands could improve profitability by investing in expansion. CHART: 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 50%