Josh Joseph

I was saddened, but not surprised, to read in AgFunderNews that Motif FoodWorks is shutting down, given the challenges it has faced, including management turnover and lack of market traction, during the past few years. Motif, a FoodTech ingredients company using precision fermentation to create products that improve the aroma, taste, and texture of alternative proteins, raised $345 million since it spun off from Ginkgo Bioworks, Inc. in 2019. Motif also was in an IP fight with Impossible Foods over patents surrounding hemeproteins, which was resolved just prior to Motif’ announcement that it would be shutting down. Motif was one of a group of alternative protein companies that completed large financings in 2021, when it closed a $226 million series B round. At that time, capital was abundant and cheap, and valuations were nearing record highs due to rising consumer demand for alternative proteins following positive media exposure and extensive marketing campaigns by the likes of Beyond Meat and Impossible Foods. Since then, Motif, and many of its peers, have struggled to navigate a more challenging environment where retail sales stagnated, and they struggled to deliver products that are competitive on taste and cost with traditional animal proteins and provide improved nutritional value. Despite over $16 billion in capital having been raised globally by alternative protein companies between 2018 and 2023, according to Pitchbook, Motif will not be the last alternative protein company to go bankrupt. As the current difficult financing market stretches into 2025, more companies will struggle to raise capital and, as existing investors decide to stop funding those companies unable to achieve positive cash flow, they will either be shut down, like Motif, or sold off cheaply. Although the current outlook for alternative proteins looks rather bleak, my mid- and long-term prognosis remains positive, as the mega trends towards food security, sustainable food systems and health and nutrition remain catalysts for shift toward alternative proteins. Additionally, new plant-based, mycelium, and fermentation products are starting to hit store shelves that are better tasting and more nutritious. https://lnkd.in/gRwfHvRh Alan Hahn Annie Ryu Arturo Elizondo ‪Aviv Wolff‬‏‏‏ Didier Toubia Eitan Fischer Eshchar Ben-Shitrit Eyal Afergan, Ph.D Fengru L. George Peppou Jim Laird Jonathan McIntyre Josh Tetrick Justin Kolbeck Irina Gerry Lou Cooperhouse Maarten Bosch Martin Habfast Matias Muchnick Matt Gibson Matthew Strongin Michael Leonard Nicolas Morin-Forest Nicolas Schweitzer ⓥ🥓 Paul Shapiro Peter McGuinness Phil Graves Thomas Jonas Tristan Maurel Uma Valeti, MD Virginia Rangos #foodsecurity #foodtech #food #sustainability #climatechange #alternativeproteins #plantprotein #fermentation #precisionfermentation #mycelium EcoTech Capital Cy Obert

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Six excellent questions and insights with Ross O'Brien, Founder & Managing Partner of Bonaventure Equity, LLC, and Michael Werner, Head of the Health Care and Life Sciences Practice at Holland & Knight LLP. 1. Historical Context and Implications 👏🏿 2. Clarification on Terminology: Marijuana vs. Cannabis 🎓 3. Understanding the Rescheduling Process and Timeline ⏳ 4. State Regulations vs. Federal Policy 🏛 5. Impact on Prescription Requirements and Recreational Businesses 😲 6. Research Opportunities and Funding 📈 Ross O'Brien is a lifelong entrepreneur, author, and investor, and believes in the power of entrepreneurship to tackle healthcare’s biggest challenges. His approach to venture capital investing is predicated on being more than just a source of capital but a true catalyst for founders who aim to change the way in which we help patients. Built by founders, for founders, Bonaventure Equity, LLC is an active group of investors, who together, invest in the advancement of science, funding and working with entrepreneurs & informing regulatory reforms. Ross also founded The Founder's Door initiative, "Dedicated to mental health awareness for entrepreneurs, founders, and the people who stay up all night finding new ways to change the world." Michael Werner is a Washington, D.C., public policy and regulatory attorney, a co-leader of Holland & Knight LLP Healthcare & Life Sciences Team, and the co-founder and senior policy counsel of the Alliance for Regenerative Medicine, the leading global organization representing the cell therapy, gene therapy, tissue engineering, and regenerative medicine sector. #cannabis #Entrepreneurs #growthmindset #ThankYou

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Coming out of #PLMA2024 in #Chicago, my partner, Craig Hanna, will be sharing his observations and insights - I encourage you to check them out! The post below highlights the important connection between #food and #health with more to come. 💡👫🌎 Power Sustainable Lios PLMA - Private Label Manufacturers Association

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Rock Health has unveiled insights from a recent survey focusing on U.S. adults managing their weight. The industry has witnessed substantial advancements in the last 5 years, with the emergence of GLP-1's new opportunities have surfaced for brands and companies to offer enhanced support services and products to consumers. What is an innovative product or service you have seen that is providing value to consumers on their weight management journey? #Healthcare #WeightManagement #Healthandwellness

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Ensure Deal Success with Strategic M&A Due Diligence Mergers and acquisitions are high-stake ventures where hidden risks can make or break a deal. At Manning Resource, we specialize in uncovering those risks and providing actionable insights to empower Private Equity, Family Offices, Venture Capitalists, and Law Firms to make smarter, safer investments. Here’s why our M&A Due Diligence Assessments stand out: - Comprehensive Risk Assessments: We go beyond surface-level reviews to uncover operational inefficiencies, supply chain gaps, and hidden risks that could derail your deal. - Precision Quality & Safety Audits: Whether it’s regulatory compliance or industry-specific challenges like food safety, we identify vulnerabilities to protect your investment. - Data-Driven Financial Alignment: We connect the dots between operational realities and financial projections to ensure valuations reflect true potential. - Integration Readiness Checks: From leadership evaluation to cultural fit, we provide clarity on how seamlessly the target company will integrate post-acquisition. - Tailored Recommendations: Our insights are custom-built for your strategic objectives, delivering clarity and confidence in your decision-making process. With decades of operational expertise, we deliver the insights you need to mitigate risk and maximize value. Contact me at Manning Resource or message me directly. #MergersAndAcquisitions #RiskMitigation #PrivateEquity #GrowthStrategy #OperationalExcellence #LeadershipIntegration

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🌿 Despite #high hopes, the #cannabis industry has faced significant challenges. Turns out, it's not as #dope as investors toked it'd be. 📉 The leading player, Curaleaf, saw its value drop from a peak of 💲11.5B in 2021 to 💲4B today, highlighting the downturn in #marijuana stocks. The #market: 💰 Total U.S. Cannabis Market (legal + illegal) is valued at 💲75B, while the the legal US TAM, currently 💲32B, expected to grow to 💲43B by 2027 (source: BDSA) 🗽Just the New York state TAM is a hefty $6 billion cannabis market (and if you've strolled through NYC lately, you'll know it's not just the hot dog vendors adding to the aroma). 🌿 🍺 In comparison, the U.S. #Alcohol Market was valued at $247B in 2021, with the beer market alone at $115 billion, a stark 8x times cannabis TAM. 💼 Diageo, the leader in the spirits market boasts a 💲76B market cap, 💲21B in revenue and over 💲4B in net income. AB InBev, the leader in beer, commands a 💲120B market cap, 💲60B revenue and 💲5B net income. Some analysts believe that if a cannabis leader emerges, it might eventually reach similar figures. A long way to go for Curaleaf and others... 🌍 Besides the US and Canada there's potential in Europe with countries like Germany, Poland, and the UK that loosening cannabis regulations. More are expected to come. The #issues: 💸 Profitability hurdles include prohibitive taxes, with cannabis businesses unable to deduct common expenses, resulting in significant tax burdens despite losses in net income. 🤝 Fragmentation plagues the industry, with no player holding substantial market share, signaling a potential need for consolidation through mergers. 📊 Data on major companies: 📈 Revenue (2023) Curaleaf - $1.35B Trulieve - $1.22B Green Thumb Industries (GTI) - $1.02B Verano - $879M Cresco Labs - $825M 💹 Gross Margin (2023): Trulieve Cannabis Corp. - 52% Verano Holdings - 51% Green Thumb Industries Inc. - 49% Cresco Labs Inc. - 48% Curaleaf Holdings, Inc. - 45% 💼 EBITDA (2023): Green Thumb Industries Inc. - $291M Verano Holdings - $284M Trulieve Cannabis Corp. - $263M Curaleaf Holdings, Inc. - $239M Cresco Labs Inc. - $125M 👥 Total Employees: Curaleaf Holdings, Inc. - 5,650 Trulieve Cannabis Corp. - 5,400 Green Thumb Industries Inc. - 4,561 Verano Holdings - 3,900 Cresco Labs Inc. - 2,760 💼 Market Cap (may 3rd 2024): Curaleaf Holdings, Inc. - $4.17B Green Thumb Industries Inc. - $3.13B Trulieve Cannabis Corp. - $2.33B Verano Holdings - $1.75B Cresco Labs Inc. - $1B Fast forward a decade, where do you envision the cannabis industry? Do you anticipate pharmaceutical companies making their mark in the cannabis market? Could tobacco or alcohol giants venture into cannabis diversification?

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The heat is taking over, and we're not talking about the weather! 🌶️🔥 Hot sauce brands are experiencing a surge in popularity, with Gen Z leading the charge. Despite having less to spend, Gen Z is willing to splurge on affordable luxuries like coffee and hot sauce. Brands are capitalizing on this trend by introducing new flavors and products. Social media has significantly fueled this growth, as 'swicy' (sweet and spicy) foods and drinks have gone viral. This trend aligns with Gen Z's preference for more flavorful foods, openness to ethnic flavors, and desire for variety and experimentation in their culinary choices. A recent survey by NC Solutions revealed some insights about Gen Z, who have dubbed themselves 'hot sauce connoisseurs.' Here are some key findings from the study: 1. Hot sauce and chili were the second most purchased condiments, trailing behind mayonnaise between January - March 2024. 2. Over 51% of Americans use hot sauce more than once a week. 3. 62% of respondents are more likely to buy something if it's advertised as hot or spicy. 4. About 1 in 4 millennials and Gen Z bring their own hot sauce to restaurants. To read the full article on hot sauce market trends, click here: https://lnkd.in/gJmCu6n5 #FoodTrends #HotSauce #GenZ #FoodandBeverage #Swicy

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Thank you John Persinos for interviewing me for an article in InvestingDaily.com. It was fun to pull out my crystal ball and forecast the impact of recent and upcoming regulatory changes and ballot initiatives on domestic and international cannabis markets. https://lnkd.in/etDH-9a3 Some of the key points discussed are: 1. Momentum and direction of valuations amongst impending regulatory changes. 2. International opportunities and risks. 3. Importance of consolidation and scale among MSOs and plant touching operators. 4. Proven real estate capital strategies that are poised to continue to perform well.

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I had the privilege of speaking on a panel at the Benzinga's Cannabis Capital Conference earlier this week about cultivating loyalty in cannabis retail and strategies for influencing customer engagement and loyalty in a competitive market. At Kiva, we understand that making safe, consistent and delicious edibles isn’t enough to earn customer loyalty. We need to create a memorable experience for people in the dispensary - and that starts with a budtender who is knowledgeable and enthusiastic about recommending our products. As one of many brands on dispensary shelves, it’s important to work together with our dispensary partners to ensure budtenders have the knowledge and tools they need to feel confident recommending our products. We create specific budtender education materials, budtender samples (where we can) and we spend time in the dispensaries. Our commercial teams are also known to conduct education and merchandising “blitzes” when launching a new product or introducing products in a new market. As founders, Scott and I make a point of spending time in dispensaries across the country, engaging with budtenders and store managers every month to listen to their take on the category and feedback about our brands and products. Sometimes we also take a turn at leading a budtender education session or manning a demo table because there is no better place to get real and sometimes humbling feedback, and also have a direct touchpoint with potential and existing Kiva Brands, Inc. customers. We care deeply about delivering the best quality in everything we do - not just products but also beautifully designed and well-thought out training materials, store POS materials, displays and SWAG. Every single touchpoint with buyers, budtenders and consumers is an opportunity to foster loyalty. #customerloyalty

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Big news in grocery retail M&A: Albertsons Companies has officially called off its USD 25 billion merger with Kroger, more than two years after announcing the deal. The decision follows rulings from state and federal judges blocking the transaction on antitrust grounds. In response, Albertsons has reaffirmed its standalone strategy and - for good order - filed a lawsuit against Kroger alleging the company failed to use "best efforts" and take "all actions necessary" to get the deal over the antitrust line. It's not uncommon for parties to get litigious when deals fall apart, but Albertsons (and its shareholder Cerberus Capital) seems pretty peeved about this one, having spent "hundreds of millions of dollars" 😨 seeking approval for the merger. A key nuance lies in the merger agreement's language: all the antitrust-related performance obligations in the agreement are based on a "reasonable best efforts" standard *except* for the clause relating specifically to Kroger’s obligations, which are held to the stronger "best efforts" standard—a small but significant distinction. It's unlikely this situation will be resolved anytime soon, but it will be interesting to see how it develops.

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EBITDA Margins are only part of the story. Are MSOs profits adequate for the capital they employ? See the chart below #cannabis #cannabisinvestments

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✨ Breaking: Halogen Ventures Announces New Fund.- Halogen Ventures Halogen Ventures focuses on early-stage consumer technology startups with at least one woman on the founding team. The fund announced a $10 million investment to support female founders in Alabama. https://halogenvc.com/ Please share to let other #Founders know For the ❤️ of Startups #Fusion42 #Startups #Venturecapital

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Variables to consider when it comes to packaging and POS are relatively consistent across cannabis* and non-cannabis CPG. Some are pretty unique to cannabis. 📌 Standardization Across Markets Each state is a different planet in terms of packaging and label regs (resealable vs not resealable, terpenes vs no terpenes, what’s defined as “appealing to children”, etc.). To optimize COGs, packaging that conforms to your most conservative market is best as it’ll work across all markets. Bigger order quantities usually means lower pricing. To stand out on the shelf, boundaries need to be pushed. If the goal is to maximize market share, using overly conservative packaging in less conservative markets is not going to help. State-specific packaging leads to lower order quantities which generally means higher pricing. 📌 Static vs Variable Data, Printing, Touchpoints  Cannabis label info requires static data and variable data. Using external printers for static labels and in-house printers for variable labels is often best from a brand standpoint as external printers almost always have more capabilities than what cannabis operators have in-house. However, if printed separately this means two touch-points. Using in-house printers for static data and variable data means all data can be combined into one label (less touch-points) and the risk of relying on external vendors is eliminated. Unique branding elements may be more limited though. External printers can create labels that come with static info applied and a blank section where variable data can be printed in-house. To make this work, operators need to be able to feed the partially printed labels into an in-house printer that can add the variable data. This route can offer the best of worlds as branding elements can be maximized and touch-points minimized (one label). Mylar bag exception: All the static info can be printed directly on the bags (this looks the best) and simple black and white variable data labels can be printed in-house. This typically requires market specific bags though. 📌 Storage Space Cannabis producers and retailers almost always have less storage and transport space in comparison to the non-cannabis CPG world. Jars take up more space than mylar bags. Prerolls with external packaging take up more space than prerolls without. And so on. On the producer side, packaging that takes up more space means vaults fill up faster, transport vans can’t fit as many units, etc. On the retail side, the larger the packaging the smaller an order may be. Retailers only have so much storage space for each brand. They can fit way more mylar bags vs jars in the same space. 📌 POS displays There are no “big box” cannabis retailers. They’re mostly the size of C-stores. There’s no space for big end caps, etc. The more compact a display is, the better chance a retailer will find space for it. *the regulated THC dispensary market What’d I miss?

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Tier One Earnings Analysis: So Far, So Good With four of the top five plant-touching US cannabis companies reporting, the "tier-one" MSO earnings have largely been better expected. On average, the group exceeded revenue expectations by 2.27% and adjusted EBITDA consensus by 9.15%. Curaleaf modestly missed consensus analyst expectations, while Green Thumb Industries (GTI), Trulieve, and Verano beat on revenue and adjusted AEBITDA. The first quarter is typically the softest and we saw revenue for the four tier ones that have reported sliding on average by 1.43% Q/Q while adjusted EBITDA improved 0.79% sequentially. Trulieve showed the strongest sequential improvements in both categories, while Verano saw the biggest Q/Q revenue and adjusted EBITDA decline. Year-over-year, average revenue for this group grew by 3.65%, and adjusted EBITDA jumped by 13.52%. Green Thumb Industries (GTI) had the biggest revenue expansion, +11.00%, and Verano was the only operator with negative revenue growth, -2.60% Y/Y. Trulieve AEBITDA growth of 35.50% was the best, while Verano was the weakest, with AEBITDA contracting 5.00%. Tighter SG&A controls have helped drive the broadly better AEBITDA results. We'll refresh the data after Cresco Labs reports on Wednesday, but for the tier ones: so far, so good.

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The Middleby Corporation has acquired JC Ford, a leading manufacturer of tortilla and chip production equipment, based in Columbia, Tennessee. JC Ford, founded in 1945, generates $70 million in annual revenue and specializes in automated solutions. The acquisition strengthens Middleby's position in the fast-growing snack food market, aligning with its Food Processing Group’s strategy. Middleby CEO Timothy FitzGerald highlighted the synergies and growth opportunities this acquisition offers, as JC Ford’s innovative solutions have become industry standards with a strong customer base and recurring revenue. Read More Here: https://lnkd.in/ebxE8zTA PerishableNews.com Branded Hospitality Ventures Hospitality Hangout Podcast #production #hospitality #automation #marketing Steve Spittle Scott Heim Timothy FitzGerald Sarah Tresser Jaime Nau Darcy Bretz Krishna R. Valerie Hanson, CFSP Shawn M. Lange

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🌟Passive Investing in Bourbon & Craft Spirits🌟 🎤 I’m speaking at the upcoming Alternative Investments Series virtual summit on Wednesday, July 17th at 4 PM PST, hosted by @Patrick Grimes. 🎫 Reserve your spot now 👉 https://lnkd.in/gEj5YgbQ 🔥 Don't Miss Out On: How to Get Started Investing in Bourbon and Craft Spirits Passively Investing in Barrels vs Investing in Brands How the Crafting Process Affects Value and Investment Potential Growth Potential as the Beverages Industry Matures Risks and Benefits Live Q&A to Give You the Answers You Need 📅 Can’t attend? Register anyway, and we’ll send you the replay. #PassiveInvesting #WealthBuilding #InvestmentStrategy #AlternativeInvestments #AlternativeAssets #BourbonInvesting #CraftSpirits #AlternativeInvesting #InvestmentStrategy #PassiveIncome #WealthBuilding #FinancialFreedom #InvestorEducation #PortfolioDiversification #LiveWebinar

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Boards of Directors – How Relevant To The Business Is The Board? In 2014, activist investor Starboard Value successfully replaced all 12 directors on the board of Darden Restaurants. The following shows the Darden incumbent board at the time of Starboard's proxy fight, Starboard’s value creation plan initiatives, the Starboard director nominees and the before and after performance (revenue, EBITDA, EBITDA margin and stock price). Note especially the direct relevance of each Starboard nominee to the industry or some aspect of the value creation plan. How often do you see this level of relevance on public company boards?

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Tilray Brands, Inc., a cannabis company, is expanding into the U.S. craft beer industry, becoming the fifth-largest craft brewer by acquiring 18 brands, including Shock Top and Montauk. Tilray's CEO, Irwin D. Simon, aims to build relationships with beer distributors and eventually sell marijuana-infused drinks if they become federally legal in the U.S. Tilray hopes to achieve profit margins of 45% by cutting costs and sees potential in reviving overlooked beer brands. Read More Here: https://lnkd.in/e4qeaRXP The Wall Street Journal Laura Cooper Branded Hospitality Ventures Hospitality Hangout Podcast #Beer #Hospitality #WallStreetJournal #Cannabis Carrie Shafir Simon Cascante James Gleaves Sam Garfinkel Shawn Carpenter

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