Cannabis Companies Seek Strong Strategies to Meet Growing Demand

DENVER, July 10, 2019 /PRNewswire/ -- With demand outstripping supply, successful cannabis companies are following smart core strategies and reporting strong revenues.

Golden Developing Solutions Inc. (OTCPK:DVLP) (Profile) has used a mix of acquisitions, diverse brands and products, and increased production footprint to meet customer demand and report significant revenue increases, including its strongest second-quarter numbers ever. Industry giant Canopy Growth Corporation (NYSE:CGC) (TSX:WEED) has followed a similar path, though some change may follow the recent departure of its co-CEO. Tilray Inc. (NASDAQ:TLRY) has invested heavily in increasing production while reaching into new markets such as the United Kingdom. Medmen Enterprises Inc. (CSE: MMEN) (OTCQX:MMNFF) and Curaleaf Holdings Inc. (OTCQX:CURLF)(CSE:CURA) have both shown the potential for growing multistate businesses in the United States, despite the challenges created by federal legislation.

• Increasingly liberal laws have allowed demand to show in the legal market, but supply has not yet caught up.
• To meet this demand, the industry needs to increase production.
• Individual companies are using acquisitions and diversification to improve their revenues.

To view an infographic of this editorial, click here.

Expanding Business

The cannabis, hemp and CBD sector is experiencing a period of huge expansion. With medical cannabis now legal in 60% of U.S. states, recreational cannabis legal in many states as well as Canada, and hemp production legalized on a federal level, North America has become home to a thriving industry. What was relegated to illegal markets and fringe cases only 20 years ago is now the source of an economic boom.

In this brave new world of legal business, cannabis companies are looking for ways to maximize their profitability and ensure a strong position as the market keeps expanding. So what are the strategies bringing success for the growing cannabis companies, both big and small? And how are those strategies contributing to the development of the sector?

Expanding Production

For the companies working in this sector, such as Golden Developing Solutions Inc. (OTCPK:DVLP), their work in the space is producing strong growth and sales numbers. From March 2018 to March 2019,  Golden Developing Solutions saw an 800% jump in performance. Further growth was announced in May, as the company went from strength to strength.