Blog

Home / Blog  / What is Craft Cannabis and what is the Value for Investors?

Just because it’s cannabis, doesn’t mean it’s always high-grade stuff. Enter: craft cannabis. Similar to the beer and spirits industry, craft cannabis is rising in popularity and in respect within the cannabis industry for its unique outlook on cultivation, production, and retail.

This small-batch, craft cannabis production technique ensures quality and customer satisfaction is at its height. For investors, craft cannabis presents an opportunity to capitalize on a growing niche that has soared in value for its unique appeal and distinctness from corporate cultivation practices.

Larger cannabis companies that produce cannabis in bulk amounts may notice a shift in investor attention amidst the rise of craft cannabis. In fact, some craft cannabis companies are offering investors a slice of their pot pie for hundreds of millions of dollars. Lineage is capitalizing on this. Back in June, Lineage entered into agreements to acquire a 43,500 square-foot craft cannabis cultivator in California. By combining this with best-of-breed genetics, Lineage can begin developing new brands of craft cannabis that will position themselves ahead of large-scale, low-cost production facilities.

What is craft cannabis?

If you don’t already understand the concept of craft cannabis, you may be wondering what exactly makes the cannabis… “craft”. Close your eyes and envision the craft beer industry. Just as a craft brewery puts emphasis on quality and production in limited amounts, so does a craft cannabis grower. Expect to taste the difference, because craft cannabis growers pour passion and love into every green leaflet!

Canada (a country that is preparing for complete cannabis legalization this summer,) is anticipating new craft cannabis regulations that will limit grower to producing 600 kilograms of cannabis per year within 200 square metres of canopy space.

“Seed-to-sale” storytelling is the foundation upon which the craft cannabis concept is built. Consumers tend to feel a connection with growers once they learn about the company’s journey, making this a valuable tactic for differentiation among other organic growers.
A small-batch production technique that implements pesticide-free organic methods, “craft” growing is a process that favors hand-trimming over machine-trimming. Trichomes are retained in this way, which increases the plant’s medicinal value and potency. Something else that amplifies plant quality is the sungrown-focused practices. Let’s not forget about the final product, which is decorated to perfection in compliant packaging.

Why is craft cannabis alluring to investors?

Consumers can enjoy better flavor and an increased amount of cannabinoids when they consume craft cannabis. This type of cannabis is artfully attuned during the growing phase, which essentially reveals the plant’s genetic potential. It is a fine example of cannabis innovation, which is equally as appealing for investors.

When compared with commercial strains that are grown for volume, small licensed producers are building brand presence by curating strains that would not be possible inside a commercial setting. Branding and product development are attractive facets of a craft cannabis business, giving it a unique position in the industry.

Since craft cannabis producers support their local economies, the connection between producers, consumers and products is more streamlined. Investors may be drawn to the brand appearance of premium quality craft cannabis, as well as the agricultural appeal. The craft cannabis industry is also contributing to farm tourism and since small businesses can adapt to change faster than big businesses, investments are welcome.