Independent vs. Franchise Retailers
May 1, 2024
Did you know that many of the large corporate retail cannabis franchises make more money selling “data packages” than they do selling cannabis?
As an example of a large franchise retailer: from Value Buds own investor deck their corporate strategy is to operate on an unsustainable profit margin in the short term (even operating at a loss on many products) to intentionally and strategically and undercut independent retailers who cannot compete with their corporate deep pockets. Once they put many independent retailers out of business, these franchises will then raise their prices to a more sustainable (profitable) level. These are essentially the same predatory pricing tactics many big box stores use to drive out competition which ultimately creates less diverse industries and destroys the local economies of our communities.
According to a recent article by Stratcann, “Cannabis retailer Nova Cannabis Inc. (who owns the Value Buds retail chain, among others) reported its first year of net revenue in 2023… the company saw some of its largest increases in revenue from the growth of its “data licensing program.”” This “data licensing program” essentially provides a loophole in the system, allowing the franchise stores to operate on a “pay to play” model where cannabis producers are required to purchase proprietary “data packages” to get on their shelves. The thing is, most of the smaller micro-cultivators simply cannot afford to play this game, which is why you will be hard-pressed to find a lot high quality, small-batch products on the shelves at these franchise stores and, in a sense, this model actually works in favour of the smaller independent retailers who are focused on presenting high quality craft cannabis products by these smaller producers!
Reference:
Some jurisdictions are starting to crack down on this scheme. In Ontario, regulators issued a $200,000 fine to Cannabis Xpress for alleged “data deals” claiming “violations of the province’s rules that disallow cannabis stores from asking for or accepting inducements from cannabis producers as a condition of selling or giving preferential treatment to products in their stores, also known as paying for shelf space.”
Reference:
https://stratcann.com/news/ontario-issues-200000-fine-for-data-deals-to-cannabis-retailer/
We would like to offer you some inside secrets of the cannabis industry to show that comparing franchises to many independent retailers is not an apples to apples comparison. While the franchises are marketing themselves on the lowest price model, at Enlightened Herb, we believe that what customers are actually looking for is value, meaning the highest quality products at a fair price, and that these factors represent TRUE VALUE.
INDUSTRY SECRET #1
In Alberta, all cannabis retailers, regardless of size, have to order all of their cannabis products directly through the AGLC as the sole distributor of cannabis in the province. All stores order from the same order form, which lists the products and number of cases available each week. If there are only 100 cases available of a product and 200 stores try to order that product, we go into a lottery and retailers are not guaranteed their inventory. Because the larger franchise stores are operating on a “lowest price” model, they need to sell on volume in order to make money, therefore the majority of the product on their shelves is cannabis grown by mass producers who are releasing a large number of cases to the market. This cannabis is typically grown in large facilities with the use of pesticides, the cannabis may not be properly flushed or cured and is often irradiated, and the cannabis is trimmed using large trim machines that knock all the trichomes off the plant (where all the good stuff is!), which they then process into concentrates such as hash or kief.
Conversely, the best cannabis on the market is typically grown by passionate micro-cultivators who got into the cannabis business for the love of the plant. They grow in small batches, emphasizing quality over quantity and use superior cultivation techniques to ensure optimum growing conditions for their plants, and hand-finish their products to bring forth the best aromas, flavours, and effects and preserve the delicate trichomes of the plant. Because these producers are growing in small-batches, it means only a small number of cases are released to the market, which means they often fall under the threshold that larger franchises need to take a chance on winning the lottery on these products. This is why you will typically only find these superior products at smaller independent retailers, and why we a hyper-focused on Craft Cannabis products at Enlightened Herb. In other words, we can confidently say “We’ve Got the Good Stuff!”
INDUSTRY SECRET #2
For independent retailers who are hyper-focused on craft cannabis products, our menus rarely overlap with the larger franchises, meaning you cannot compare prices between craft-focused, independent stores and franchise retailers because we are talking about different products and a different calibre of quality. At Enlightened Herb, if we order ten products of the finest craft cannabis on the market and we only win the lottery on eight, we are still happy because our shelves are filled with only the best products.
INDUSTRY SECRET #3
Independent retailers generally operate on a different set of values than the corporate franchises. We are small businesses created by passionate individuals who want to make a positive impact in our communities, which contrasts greatly with the corporate greed model of the franchises. Independent retailers are more focused on quality, education and community. We are typically integral members of our communities, we have a passion for the industry and are more focused on customer service, ensuring you have a better experience both in store and with the products you consume.
In addition to providing access to higher quality products and services, research shows that supporting local, independent businesses creates more than double the economic impact of chain competitors. For every $100 spent with a local business, $63 is re-circulated back into our their economy (vs $14 for multinational corporations). They re-circulate 4.6 times more revenue in the local economy:
Local retailers re-circulate 63% compared to 14% for chains
Local restaurants re-circulate 68% compared to 30% for chains
Local suppliers (e.g. office supplies) re-circulate 33% compared to 19% for chains
For all these reasons, we will always advocate for:
SUPPORTING LOCAL
SUPPORTING INDEPENDENT
SUPPORTING CRAFT
SUPPORTING SMALL BUSINESS
What are Terpenes?
Unlocking the Aroma: Understanding Cannabis Terpenes
In the world of cannabis, there's more to the experience than just THC and CBD. Hidden within the intricate tapestry of this plant are compounds known as terpenes, which play a significant role not only in the aroma and flavor of different strains but also in influencing their effects on the body and mind. Let's dive into the fascinating world of cannabis terpenes and explore what makes them so special.
What Are Terpenes?
Terpenes are organic compounds found in various plants, including cannabis. They are responsible for the distinctive scents and flavours associated with different strains of cannabis, as well as many other plants in nature. These aromatic molecules are synthesized in the trichomes, the tiny resin glands that cover the surface of cannabis buds and leaves.
The Power of Aromatherapy
Beyond just providing aroma and flavour, terpenes have been found to have therapeutic properties. In fact, terpenes are widely used in aromatherapy for their potential to promote relaxation, alleviate stress, and uplift mood. Each terpene has its own unique profile and potential benefits, which vary depending on the strain and concentration.
Common Terpenes Found in Cannabis
There are over 100 different terpenes identified in cannabis, each contributing to the overall sensory experience and effects of a particular strain. Some of the most common terpenes found in cannabis include:
1. Myrcene:
· Aroma: Earthy, musky, herbal.
· Effects: Known for its sedative properties, myrcene may contribute to relaxation and promote sleep. It is often found in indica-dominant strains and is believed to enhance the "couch-lock" sensation.
2. Limonene:
· Aroma: Citrusy, lemony, bright.
· Effects: With its uplifting and mood-enhancing properties, limonene is often associated with stress relief and improved mood. It may also have antibacterial and antifungal properties.
3. Pinene:
· Aroma: Piney, fresh, woody.
· Effects: As a bronchodilator, pinene may improve airflow to the lungs. It also exhibits anti-inflammatory properties and may enhance alertness and memory retention.
4. Linalool:
· Aroma: Floral, lavender-like, sweet.
· Effects: Linalool is prized for its calming and relaxing effects, making it useful for reducing stress and anxiety. It may also have anticonvulsant and analgesic properties.
5. Caryophyllene:
· Aroma: Spicy, peppery, woody.
· Effects: Unique among terpenes, caryophyllene acts as a cannabinoid receptor agonist, potentially offering anti-inflammatory and analgesic effects. It may also help alleviate symptoms of anxiety and depression.
6. Humulene:
· Aroma: Woody, earthy, herbal.
· Effects: With its appetite-suppressant properties, humulene may be beneficial for weight management. It also exhibits anti-inflammatory and antibacterial effects.
7. Terpinolene:
· Aroma: Floral, herbal, fruity.
· Effects: Terpinolene is known for its uplifting and energizing effects, making it suitable for combating fatigue and promoting creativity. It may also have antioxidant properties.
8. Terpineol:
· Aroma: Floral, lilac-like, citrusy.
· Effects: Terpineol is valued for its sedative and relaxing effects, making it useful for promoting sleep and reducing anxiety. It may also have antioxidant and anticonvulsant properties.
9. Ocimene:
· Aroma: Sweet, herbal, woody.
· Effects: Ocimene is known for its energizing and uplifting effects, potentially enhancing mood and creativity. It may also have antifungal and antiviral properties.
These terpenes, along with many others, contribute to the complex aroma and effects of different cannabis strains. By understanding the role of terpenes, consumers can make more informed choices when selecting strains to suit their desired experiences and therapeutic needs.
The Entourage Effect
One of the most intriguing aspects of cannabis terpenes is their interaction with other compounds in the plant, particularly cannabinoids like THC and CBD. This synergy, known as the entourage effect, suggests that terpenes and cannabinoids work together to enhance or modulate each other's effects. For example, certain terpenes may increase the permeability of cell membranes, allowing cannabinoids to more easily enter the bloodstream and exert their effects.
Conclusion
Cannabis terpenes are much more than just aromatic molecules—they are key players in shaping the unique characteristics and effects of different strains. From influencing aroma and flavor to potentially offering therapeutic benefits, terpenes add depth and complexity to the cannabis experience. As our understanding of terpenes continues to evolve, so too will our appreciation for the diverse array of effects and sensations that this remarkable plant has to offer.
New Signage!
New Signage!
It’s a sign! Well, new signage for Enlightened Herb Cannabis anyway! Being in a municipal zone in Diamond Valley, AB that allows both residential and commercial buildings, we know we can be a little hard to see from the main road, so we decided to take up a larger footprint on our signpost to enhance our visibility.
The new larger sign gave us more room to relay our focus on Craft Cannabis and CBD products. And now that retail cannabis stores in Alberta are allowed to do online ordering and delivery, we wanted to ensure that our website (and QR code!) was prominently featured. Did you know that Enlightened Herb is the only cannabis store in Diamond Valley licensed to offer online sales and delivery? We are pleased to provide FREE delivery to customers within the Diamond Valley townsite (delivery fees will apply in other delivery zones, see online for details).
Visit www.enlightenedherb.ca/menu and follow the instructions to create your online account, or pop in and say high and we can help you create your account in person. Creating an account will allow you to view our online menu and pricing and place orders for pick up in store or delivery
Are You Enlightened?
Indicators of True Value
Indicators of TRUE Value
We’ve been thinking a lot lately about a buzz word that circulates frequently in retail environments - the word VALUE. It’s a word that seems to be thrown around a lot, but what does true “value” mean?
At Enlightened Herb we believe that there is little value in offering you cheaply made products that often come with the lowest price tag for a reason. We believe that TRUE value is best measured by considering the QUALITY of a product in relation to the price. The old adage comes to mind “you get what you pay for”. True value is also about knowledge, education and superior service to ensure you are getting the best products to suit your needs. And it’s also about factoring in the extended impacts on our communities and environment.
These are the things that we take into consideration when deciding what products to present on our highly curated menu at Enlightened Herb, and why we get excited to share them with you!
At Enlightened Herb we have made a list of our core values and would love to share them with you here:
AUTHENTICITY We honour the uniqueness of each individual and encourage each member of our team to be themselves, rather than follow a formulated sales script.
INTEGRITY We act according to our highest moral values and conduct ourselves in an honest and transparent manner.
EMPOWERMENT We seek to empower our staff, customers, and community with cannabis knowledge so they can make educated choices about cannabis products and regulations.
COMMUNITY We form authentic relationships with our customers and community out of a sincere desire to support their overall wellbeing.
QUALITY We research and carefully curate our product selection to ensure our cannabis products are of the highest quality we can find on the market at a range of price points to meet the budgets of our customers.
CRAFTSMANSHIP We especially appreciate growers who are motivated by their love of the plant and are true craftsmen in their approach to growing, harvesting and packaging their products.
INCLUSIVENESS All are welcome in our store and deserve respect.
DIVERSITY We celebrate the diversity of life in all its expressions.
SUSTAINABILITY We do our best to consider the greater impacts we make- as individuals and as a company- on our environment and our communities.
Enlightened Herb Cannabis - Your CRAFT Cannabis & CBD Connection