7ACRES Tour Video – Understanding Supreme’s Premium Advantage

The Supreme Cannabis Co. is a Canadian LP targeting the premium segment of the cannabis market. They have built one of the top flower brands in the industry, 7ACRES, from the flower produced at the 7ACRES cultivation facility.

In the fall of 2019, Capital 10X toured this facility to understand what differentiated the practices that go into creating the award-winning 7ACRES flower brand. This video captures that tour and showcases the plants, processes, and people behind the brand.

With construction on the 440,000 sq. ft. 7ACRES facility nearly complete, Supreme Cannabis is positioned to realize the full potential of this flagship asset. The company has built out its CPG processing features, and all grow rooms are coming online — Supreme Cannabis is now positioned to execute on its CPG strategy, leaving its wholesale business behind to capture greater margins from 100% consumer sales.

As it makes this transition, Supreme Cannabis continues to attract top talent with its leading brands, best-in-class operating assets, and a strong corporate culture. The company has brought on CPG executives and leadership with experience operating in regulated industries. In 2020, investors can look forward to continued execution under proven leadership.

Transcript

We are currently exiting the era of cannabis 1.0, a period that was driven by hype and promo rather than genuine underlying supply and demand.

As we enter cannabis 2.0 investors are going to be looking for companies with operational excellence, companies with purpose and most importantly companies that can produce cannabis that consumers actually want.

At Capital 10x we believe Supreme Cannabis is one of the best positioned companies to thrive in this new era. You’re already seeing the success from the flower grown at their 7 Acres facility getting that premium status and after completing our tour, speaking with staff and seeing the plants we believe the Supreme Cannabis company is only scratching the surface of their long-term potential.

Now let us show you what we saw starting with an overview of the 7 Acres facility.

7ACRES is a four hundred and forty thousand square foot facility located in Tiverton, Ontario. We are the wholly owned subsidiary of the Supreme Cannabis company as well as their first flagship brand. We’re creating high-end cannabis for the cannabis enthusiast from coast to coast.

For anyone familiar with Supreme you know their mantra is “respect the plant”. It’s plastered on the walls of their buildings and it’s even on the swag they sell, but we wanted to see what it meant to the ground level people who are responsible for producing that premium cannabis and in the end we weren’t disappointed. It clearly meant more than just a catchy corporate slogan, it was something they actually operated by.

Respect the plants is caring for the quality of the product truthfully caring about where that plant’s going caring about the people who are consuming it and caring about the entire chain.

Respect is one of the values that drives us. Respect for the plant, respect for the people, respect for our regulators.

As they put it supreme and 7ACRES are built around a culture of betterment from innovative growing and processing techniques to a constant reach for improvement it never stops. Innovation is one of our key values here at 7ACRES and is the reason why we are one of Canada’s leading suppliers of high end cannabis from our trimming, drawing, packaging. All of these technologies we are constantly looking for ways to innovate and improve so that we can continue to grow.

Supreme has even adopted a novel no head grower ideology.

We take a no head grower approach, which means even though we have leads within the room we don’t actually have a master grower within the facility so we take pride in training our employees to create a consistent product. By doing that we don’t actually need a master grower.

It’s this kind of ground-up approach that will enable Supreme to scale their premium status to other verticals. By creating something ingrained in the culture of the company they ensure it will be sustainable and reach every business segment within their portfolio.

7ACRES’ commitment to quality whether it be our respecting the plant or our constant evaluation of our procedures and techniques to really have a culture of betterment here to continually improve can be applied to any brand under the Supreme portfolio when selecting genetics we look to the consumer we look at other mature markets where certain strains are resonating with these consumers and ultimately when we do our selections there is an emphasis put on the more sensory characteristics of the plants.

We look for plants that have pungent unique aromas. We look for plants that have healthy bright wonderful colouration and ultimately a robust, a flavour that complements that great pungent aroma. These three characteristics are really the foundations of the consumer appeal of our products.

Looking forward we see significant upside potential for Supreme especially with more catalysts on the way in the form of new products.

2.0 very excited for and our position is we’re really looking to develop products that reflect the quality of our cannabis. We’re looking at products like like concentrates and extracts vapeable products, dabble products, tinctures, oils — really things that harness the essence of the plants that we grow.

It’s these passionate employees who have planted the seeds for what Supreme and 7ACRES have become and will continue to be we believe they have found a recipe for success that will ultimately lead the Supreme Cannabis company to be synonymous with premium within the cannabis industry.

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Supreme was a market awareness client of Capital 10X.

The opinions provided in this article are those of the author and do not constitute investment advice. Readers should assume that the author and/or employees of Capital 10X hold positions in the company or companies mentioned in the article. For more information, please see our Content Disclaimer.

Evan Veryard
Evan Veryard has a Bachelor's of Chemical Engineering from McGill University and a MaSc. of Chemical Engineering from RMC. He has over 6 years of research experience focusing on industrial materials. Address: 682 Indian Road, Toronto, Ontario, M6P 2C9. Phone: 416-721-8257.
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