Investor Presentaiton
COMPETING IN THE CALIFORNIA FLOWER SEGMENT
LAUNCHING ALLSWELL IN Q3 '22 HELPED GLASS HOUSE BRANDS QUICKLY ADAPT IN A HIGHLY
COMPETITIVE CALIFORNIA FLOWER MARKET
% Market Share
3.00%
2.50%
of Flower
Segment, by $
2.00%
1.50%
1.00%
0.50%
0.00%
#244
#57
#5
#4
#186
Q1'20
Q2 '20
Q3 '20
Q4'20
Q1'21
Q2'21
Q3 '21
Q4'21
Q1'22
Q2 '22
Q3'22
Q4'22
% Share
GLASS
HOUSE
wwwwww
FARMS
% Share
Combined
allswell
united by sature
GLASS HOUSE
BRANDS
Q1'23
Q2'23
Q3 '23
#11
#25
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The Retail and CPG markets are distressed and this chart requires
granular descriptions to convey its true meaning.
Many distressed retailers are not paying, reducing the reliability of
3rd party POS-based rankings, in our view.
Flower is a supremely fragmented market with more than 650
brands competing for share. Currently, price drives demand.
The share shown here for Glass House Farms and Allswell is paid
demand. We have maintained a strategy of only selling to stores
that pay, , which has reduced our target account list by roughly 50%.
This approach has kept our accounts receivables risk low. To the
extent that many other brands are taking more AR risk (which we
believe to be the case), this may help their retail sales, but not cash
flow, profit and balance sheet health.
܀
Our philosophy as an integrated producer who has the optionality
of selling through our CPG channel or via wholesale is that we are
not in business to give our biomass away.
Over the past two years, demand has shifted to the 'value' segment
as consumer demand has become more price sensitive.
Allswell has not cannibalized Glass House Farms demand; rather it
has been a rational and very successful adaptation to a highly
competitive market situation.
12
Source: Headset Q1 2020 thru Q3 2023View entire presentation