Progress Update For Membership NFT Holders
September 2022
Overall Progress Update
Broad strokes: We’re in the market!
We’re excited to report that TBD products are live in retail and online on both the east and west coasts. If the initial reception and data are representative of the market and what’s to come, then we are well positioned to carry out our mission of shaping the future mainstream cannabis industry.
Cannabis Infused Beverages
TBD Green Tea Lemonade is LIVE!
On the west coast, our sought-after cannabis-infused iced tea lemonades have found their way onto the shelves of Green Goddess Collective in Venice, California.
We’re also happy to report that, despite the limited data, our natural sell-through at this account has been higher than that of other more established beverages without any marketing initiatives or in- store promotions.
For product information please visit our website.
A Word On The Premium Segment In California
TLDR; We’re early
The cannabis industry is still in a premature state. Most products and brands are geared toward one niche; ultra-strong weed for heavy consumers. Even edibles and drinks are usually geared toward this niche, even though exceptions exist. The exceptions tend to focus on other niches like wellness or micro-dosing.
Branding, packaging design, and pricing are just like the products, a bit all over the place. No premium products or brands are aiming toward a mainstream audience.
However, retailers are designed for, and behave like, premium establishments. They have great service, welcoming and knowledgeable staff, and a more curated selection of products. These are the retailers that we will focus on firsthand. Green Goddess Collective is a prime example.
We estimate there are ~250 accounts in CA where our product portfolio has a strong market fit. In addition, many of these retailers also have home delivery services, making them high- velocity hubs in their area.
Our thesis is that infused products with THC in combination with high levels of CBD will become the new premium mainstream category. This approach seems to be solidified by informed buyers, distributors, and budtenders we are in close contact with across our California operation.
TBD Cannabis Infused Strawberry Candy
Available in 40 NYC stores and online!
Regarding our hemp-derived edibles, we chose to seize the once-in-a-lifetime opportunity of getting a foothold in the coveted NYC market, building relationships with local retailers and end consumers.
Because the cannabinoids we use in these edibles come from hemp and the THC content is below the 0.3% dry- weight limit, they are technically and legally considered CBD–products and are thus federally compliant while having similar effects as our drinks.
If You Can Make It Here, You’ll Make It Anywhere
NYC is our home and we’re delighted to see our hemp derived THC+CBD edibles are quickly being embraced by the city.
Since we brought on our first account in early June, our footprint has grown to 40 locations, including some of the most well-renowned specialty retailers. Standouts are The Alchemist’s Kitchen on Crosby Street in Soho, a premium store with affluent clientele, and The Pot Shop, a knowledgeable and premium dispensary in Greenpoint. These two are currently our best- performing accounts, which indicates market fit and the strategy of creating the premium cannabis category (THC + CBD).
To further support the sales efforts of our hemp- derived edibles and build a closer relationship with our consumers, we recently launched the official TBD Products Instagram (@tbd.products) and e- commerce destination (tbd-products.com). In the coming months, we’ll be experimenting with tactics for lead generation, content marketing, and affiliate programs to drive traffic and retention.
Available online — 50% OFF for token holders
Our edibles ship to 34 states across the US through our online store. Every holder of the Studio TBD Membership NFT (a ERC-1155 token) receives a forever discount of 50% on all purchases from our own concept stores, online and (in the future) IRL.
Click HERE to mint your token now.
We would also be grateful if you are able to support us by spreading the word on our online store to your network in the US.
The Cannabis Industry Is Evolving
A note on the industry as a whole
Our point of view has always been that the infused category of cannabis (beverages and edibles) is where you’ll see the most stable and highest sustained margins over the cycle, and because of that, eventually, the highest volume, profits, and by nature the strongest brand equity over time.
Additionally, within the infused category, we believe products containing combos of cannabinoids will drive the “premiumization” of the category as a way to deliver a consistently differentiated experience, higher medicinal value and the opportunity to charge higher prices.
Finally, of all the available cannabinoids and combinations, high CBD/THC ratios have proven best suited for mainstream adoption.
The other part of this equation is input pricing. Today, most of the cannabis market comprises first- generation products — flower and vape (~75% market share). When the capacity for cultivation expands, and prices for biomass fall, profits for these producers decline because of the agricultural commodity nature of their products, business, and marketplace.
On the other hand, for infused product brands that formulate and manufacture food and beverage products, this creates a windfall effect as only a fraction of the lower input prices are passed along to the consumer. Although prices will fluctuate over time, these forces are strong and will only be exacerbated with better financing, continued innovation, interstate, and eventually international commerce, bringing to market low-cost producers from emerging markets.
New York Legalization Is Coming
The most influential market on the planet will be activated in 2023
Recently the Office of Cannabis Management in New York State shared information that points to a delay in the activation of the New York regulated cannabis market until at least the summer of 2023.
New York City is our strategic mid/long-term focus. As we stated above, our hemp-derived edibles are currently in the market. They are doing very well, especially in the more premium retailers. These are great indicators that our overall strategy works as planned and that our products and the effect are popular among influential, affluent New Yorkers.
The NY state legalization is underway, but the process is somewhat convoluted and messy. Licenses for growing have been issued to legacy hemp farmers (limited scope and capacity), and the first manufacturing licenses were approved last month. The first phase of the retail license application window will solely focus on “social equity” applicants and is open this month. From our experience in other markets, these processes and supply chain build-outs take longer than expected.
Until then, hemp-derived products and the “gray market” will be the only market available in NYC. This is an excellent window to secure a foothold with our brand and unique effects in this market before the legalization is completed. The retail partners we are building relationships with are also likely to become licensed retailers in the first cycle, which will create a lot of market insights and synergy moving forward.
In Production: The Shadow Project
Web3 and NFTs — already in our DNA
As a last note, we are working on building out the next phase of our web3 and NFT project. The membership program is the community platform and storytelling engine for TBD cannabis products. At the moment, 161 people have minted a total of 480 tokens, the main utility driver right now being that the membership NFT gives you a 50% discount in our online store.
Each token also works as a mint pass for our upcoming “Shadow Project”, an ERC721 NFT character series. Expect more updates throughout Q4.
The Shadow Project is 10K ERC-721 PFP NFT storytelling and entertainment brand created to accelerate cannabis and crypto adoption. Each Membership NFT functions as mint pass and will be the only way to mint the upcoming character series. Membership NFT mint is open: studio-tbd.io/tokens
