NewTropic's Vision For Transforming Cannabis Manufacturing And Supply Chain
NewTropic joined a panel of cannabis movers and shakers from across the globe at Benzinga’s Virtual Cannabis Capital Conference on October 15. Click here for more coverage of this event with presentations from some of the top CEOs, investors and lenders in the cannabis space.
Starting a cannabis business is not as easy as most people think.
Much like any consumer product company, there are many aspects of the supply chain that lead up to the final product. One such aspect is the building block of any product — manufacturing.
Brands that choose to build their own facilities are faced with a dilemma — start small (makes scaling difficult) or go all in (enormous capital expense).
This is where contract manufacturing comes into play.
Contract manufacturing is a model that allows a company to outsource manufacturing responsibilities. This benefits businesses with limited resources as it offers professional operating standards, deep technical insight, cost-effectiveness and increased scalability.
But even if a business has enough money, outsourcing manufacturing responsibilities can be beneficial. For example, although Apple Inc. (NASDAQ:AAPL) is the most valuable company in the world, they still choose to depend on Foxconn to build its profitable devices.
In the cannabis industry, one such company that helps brands outsource their licensed manufacturing activities is California-based cannabis manufacturer, NewTropic.
NewTropic provides professional-grade, fully compliant manufacturing and supply chain solutions to cannabis brands in California. The company works with its brand partners to provide everything from procurement to manufacturing and packaging services to inventory financing. It leverages its deep manufacturing expertise combined with cutting-edge technology and innovation to enable its partners to deliver products with consistency and scale.
“The cannabis industry, in general, is in need of more professional operating standards, particularly in manufacturing — similar to those in pharmaceutical or food manufacturing. It’s only with these high standards that we’re able to ensure high-quality, consistent products, and assure consumers that products are safe and fully compliant," said Alex Rowland, CEO & Co-Founder of NewTropic.
At Benzinga’s Virtual Cannabis Capital Conference, Rowland discussed NewTropic’s vision for transforming cannabis manufacturing and the cannabis supply chain. He also offered his insights into how they use a unique revenue share approach whereby the companies split profits in a true partnership to better align interests.
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