Supreme Pharma Case Study 7 Acres

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Firstly, Supreme Pharmaceuticals with their subsidiary (7 Acres) is where the cultivation takes place which is located in Kincardine,Ontario. 7 Acres is currently fully operational on 342,000sq ft of land with future expansions to come, they have a major competitive advantage as they are able to produce indoor grade marijuana at a greenhouse base cost structure because of the newly innovative design of the greenhouse and the materials used. Taking full advantage of being able to grow their bud/flower indoors it allows for the product to be in a heavily controlled environment which allows for: being able to reduce the amount of pests and germs on the plant, ensuring the proper climate while in the flowering stages as you don't want the buds …show more content…
Supreme might want to look into being purchased by a larger organization by someone such as: Aphria or Canopy where they both are similar in ways of producing the product and will be able to have a larger market penetration. Large distribution channels to bring the finished product into the consumer's hands in an efficient and low cost manner to excel the growth to put their label on the Supreme cannabis and expand deeper into a market with a more developed ownership that will guide 7 Acres for optimum future development that will be able to benefit both companies into the new recreational potential. It is highly suggested that Supreme should be look to be purchased by a higher big brother company that will help find in the transition to be more profitable within the market as they have not been able to turn a net profit since they were awarded the ACMPR license. Although great at producing a quality product at such low costs and which are expected to drop even more by 2020, which will be a very attractive feature for investors with such large room for expansion within the property and departmentalization within the grow rooms to be custom tailored to the needs of the consumers will be a great asset to larger companies to own as a partnership or to purchase as a small subsidiary within a larger

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