RE: Bigger picture18 Oct 2021 13:27
The transition from tobacco products to non-tobacco products is already well advanced and underway. Nicely branded (Chill) alternative lifestyle products will make a lot of headway in this space.
In general there was a comment made by Viridian on the migration from tobacco to tobacco alternatives, and also there is one of alcohol towards THC, as peoples "methods of chilling" change over time with legislation etc.
Clearly Viridian represent players in the cannabis space, as well as the CBD space, and the tobacco alternative space, and I think this was a more generalised comment.
Nobody is suggesting CBD will replace alcohol.....
The simple fact is Chill, either in its products, or even the reselling of others, are in that "lifestyle space"
They have their own products and can continue to bring out pretty much anything "Chill" as time moves on, they can also look to sell others products in the "Chill space" that don't directly compete with its own product lines, with the Chill web domain.
The trolls have continued their argument from first laughing about "flogging CBD out of garages" to then knocking the CBD market in general, to underestimating the tobacco cessation market, to then acknowledging it, then suggesting big tobacco will consume all in this space etc....
The trolling will continue to change from one narrative to another, but as the "non-linear rollout" moves into its next phases the "no updates / no numbers" narrative will fade and die, just like the "no stores" argument before that.
The company will still hit its 10,000 store target, on time, and it will have a non-linear rollout...
The translation for the above is to simply expect, at any point, a "Chill is in X stores", which is significantly above the previous store announcement, and then the same to happen again.
The shorts will not get a period of time in which to correct their positions, because it won't be "we are rolling again at x00 stores a week"
Things will jump in chunks, and alongside additional stores, will be additional SKU's appearing in stores, and online.
Now the SP has remained in this range, having not priced in the Rhino Marketing tie-up, not priced in the Viridian tie up and not priced in or understood the non-linear rollout, nor the TFN product announcement.
I would imagine stores going from the previously announced 2500 towards 10,000 in a short period of time, alongside new products being in those stores, alongside an IR drive in the USA... to put quite the squeeze on any short positions.
To put in context, being in 2,500 stores with 5-6 SKU's (3 flavours of CBD chew pouch, and either the 2 CBD Isolate Smokes or those + Hemp Smokes) is one thing. Being in 2,500 stores with 8-9 SKU's (The TFN pouches in one strength being added) is practically the same as a 50% uplift in stores from the original distribution deal(s).....
It's just a waiting game...