LAS VEGAS — As 2021 comes to a close, AUDACIOUS has identified the trends and cultural touchpoints the company will be watching in 2022.
Scaling up efficiently to provide a wide range of high-quality reasonably priced products.
Scaling continues to be one of the biggest challenges for cannabis cultivators. Roadblocks to large-scale production can range from licensing and regulatory issues to a lack of standard operating procedures. The companies that successfully navigate these thorny challenges will come out ahead.
“We continue to witness considerable growth in the global cannabis industry, which translates into an ongoing need for new, larger and more efficient facilities that deliver the highest-quality cannabis against competitive operating costs,” said Terry Booth, CEO of AUDACIOUS. “With our acquisition of ALPS, a global leader in designing and engineering greenhouses around the world, we are able to help existing license holders grow their facilities and in return AUDACIOUS is able to secure access to low-cost but high-quality cannabis to fuel its expansion across the United States and internationally.”
“ALPS helps ensure that our product is grown in facilities that make better use of land and resources by maximizing output. In addition, science and data driven production means being able to reproduce the special cultivation practices that make great cannabis ‘great’,” Booth said.
Advances in scientific research and medical applications of cannabis.
Remarkably, in the past decade or so, there have been nearly 23,000 scientific papers published about cannabis and the numbers continue to grow dramatically. Yet, we’ve only scratched the surface when it comes to the medical applications of cannabis. Increasingly, cannabis manufacturers are partnering with world-renowned research facilities to do research to prove the efficacy of their formulations and monitor the absorption rate of their cannabinoids. In 2022, we expect to see great strides being made in this area although there are still significant hurdles to overcome in the mainstreaming of medical cannabis, such as state regulations, the possibility of federal legalization, and the potential for insurance to cover medical cannabis. Dr. Jason Dyck, PhD, AUDACIOUS’s Chief Science Officer, continues to lead many studies that support the safety and efficacy of cannabis products for a variety of ailments.
Beverages will continue to be a high-growth category in the cannabis space.
THC-infused beverages are expected to reach $1 billion in U.S. sales by 2025 according to the Brightfield Group. We will see an even greater influx of innovative beverages developed by cultivating a science-based, market-proven, and consumer-first approach. “There is a tremendous opportunity to innovate in this category and to deliver a fast-acting and reliable experience to consumers,” Booth said. “For example, our LOOS brand of infused beverage shots employs Vertosa nano emulsion technology for rapid onset, as well as including terpenes and nutraceuticals for an effective, all-natural, and great-tasting beverage.”
CBD gains widespread acceptance among athletes and exercise enthusiasts.
From Bull Riders to NFL Players to Professional Golfers to MMA fighters, CBD is becoming more widely accepted among professional athletes. “Time and again, we see elite athletes and sports professionals–those who put intense physical stresses on their bodies–turning to CBD,” said Booth. “This is one of the reasons why we’re very proud that AUDACIOUS Wreck Relief is the official and exclusive topical CBD partner of Professional Bull Riders (PBR). Wreck Relief is the first CBD product to be co-branded with a professional sports association, which further normalizes the use of CBD among athletes.”
Wreck Relief products feature maximum strength lidocaine and menthol to numb pain and 500 mgs of CBD derived from American grown hemp that is designed to get you back in the saddle fast. The product line consists of a precision targeted roll on, a deep penetrating soothing gel, and an omni-directional aerosol spray that will be available online and in major retailers in 2022. “Brand loyalty in this segment is tremendous. We are looking forward to fostering this relationship with PBR athletes, sponsors, fans and similar organizations,” said Booth.
Consumer education and sophisticated branding will drive new product adoption.
Product innovation will both bring legacy cannabis consumers from the grey market to the legal market and help us reach new consumers, but can only take hold if consumers understand how new products work and what benefits they provide. As a result, more brands will recognize the need to communicate educational and differentiating messages to resonate with consumers.
“We have to make sure that new and legacy consumers have access to cannabis information and that we provide them with educational resources,” said Leah Bailey, Chief Business Development Officer at AUDACIOUS. “If they don’t understand what makes a product unique, its benefits, or how to use it correctly, they may not have a good experience, which none of us want. For cannabis companies like AUDACIOUS, it is important to educate all consumers on how our products are different and better, sharing the research and science to back up our claims.”
Social equity and fighting the good fight.
We are far from a level playing field, but we have made progress on the way to a more just and equitable cannabis industry. In 2022, we expect to see those efforts continue and accelerate as we work towards righting the wrongs of the past and doing everything we can to counter the long-term impact of the War on Drugs. We will build on the progress of 2021 and broaden the impact of social equity, diversity and inclusion initiatives.
“It is our obligation to continue to learn and improve across all areas of operations, creating a more just, equitable industry,” Booth said. “States are making some progress on this front and while social equity licensing programs are not perfect, they are improving as we learn what does and doesn’t work. Ultimately, however, the onus is on us as an industry to be more proactive and unwavering in our goals of meaningful social equity and the expungement of low-level cannabis offenses that continue to disproportionately impact Black, Hispanic and Native Americans.”
We anticipate (and will be working on making this happen) that as the industry matures, there will be a shift in brand equity from dispensaries to product lines. More informed consumers will be making conscious choices that go beyond what has historically driven the market, namely THC percentage and price. They will consider things like where products are sourced, how it’s produced, what additives or solvents are used, the full terpene profile, and other elements that will make product line loyalty much more prevalent.
AUDACIOUS is a next-generation cannabis company forging the inclusive cannabis community of tomorrow, today. Led by industry pioneer Terry Booth and a seasoned and accomplished management team, AUDACIOUS focuses on quality, consistency, and a belief in the positive power of the plant. From award-winning flower and extracts to cutting edge vapes and top of the line edibles and drinks, AUDACIOUS has products for every consumer. Our family of award-winning brands and cultivars include Tsunami, Provisions, Loos, Wreck Relief CBD, and Mr. Natural. To learn more, visit AUDACIOUS.net.
AUDACIOUS common shares trade on the CSE under the symbol “AUSA” and on the OTCQB under the symbol “AUSAF.”