INSIGHTS FROM HUNTER MISHLER, DIRECTOR OF PRODUCTION
About Redbud Roots
Founded in 2017, Redbud Roots is Michigan’s premiere craft cannabis cultivator, producer, and supplier. Offering over 30 products covering the entire spectrum of the cannabis field, Redbud Roots is a source for both medical and adult-use products.
2020 Problem: Inconsistent Customer Experiences Stifle Growth
Prior to using Fresh Never Frozen™, Redbud Roots produced its own cannabis-derived terpenes. While we are artisans at heart, there are real issues with in-house terpene production:
- In-house terpene availability is dependent on cultivated supply
- Cultivated supply varies with each harvest in volume and diversity
- Vape product lines compete with dabbable product lines for these scarce inputs
…..and once the material is finished, it’s finished.
In 2020, Redbud Roots averaged less than ⅓ of 1% of Michigan’s vape cart market. Just operating is enough for most early market players, but that is not where Redbud wanted to be.
2021 Solution: Consistent Customer Experiences Solidify a Loyal Customer Base
Using TBF’s Fresh Never Frozen™ Essential oil ushered in an era of supply chain stability and brought these benefits along with it:
- Product consistency across batches utilizing 100% cannabis inputs
- Supply chain agreements that enable margin forecasting
- Perpetual supply enables for smaller, more frequent ordering without fear of stock outs or batch to batch variance
- SKU level planning catalyzed cost saving across the design and execution of packaging
Now, Redbud Roots can be much more aggressive with pricing, offering volume discounts on multiple SKUs — something that can only be done with a clear understanding of margin.
True CPG plays require supply chain stability that has been unavailable to brands in the cannabis industry.
Mishler says, “People love the [vape] carts — consumers really care about quality. Even better, what they want is available all the time. It’s still on the shelf next time they come in, whether it’s the next day or the next month.”
- 800% increase in market share over 24 month period: Won 2.5% of vape market in Michigan in 2021, up from 0.31% in 2020
- 170% increase in quantity sold over 7 month period: Sold 15,000 units in January 2021, compared to 41,000 units in July 2021
- 200% increase in revenue over 7 month period: Went from $375,000 in monthly revenue to an average of $800,000
- Doubled the number of consistent SKUs on menu: Went from struggling to maintain to 6 flavors to a consistent menu of 12 rotating flavors with on demand availability
Even more, Redbud increased its average THC% from the mid 70-80% up to 85-90% total THC. This is because of the quality of terpene inputs and a preferable proportion of distillate to terpenes. Previously, Redbud would have small batches of flavors dropping inconsistently, and would never have SKU volumes conducive to consistent wholesale account management.
Mishler concludes: “[Switching to Fresh Never Frozen™] provided a lot of perspective. This whole year has been about efficiency. While we haven’t expanded yet to using the oils in other product lines, we know now that when product consistency and pricing is stable, we can better dial in on other parts of the business.”