Exclusive Interview with Greenlane Holdings CEO Craig Snyder
Greenlane Holdings (NASDAQ: GNLN) is an ancillary cannabis company that owns and operates a portfolio of brands across papers, glass, vaporizers and packaging. Craig Snyder stepped into the CEO role at the beginning of 2023, while previous CEO Nick Kovacevich transitioned to the Chief Corporate Development Officer role. Snyder sat down with New Cannabis Ventures to talk about the company’s global omnichannel strategy, its focus on brands and his top goals for the company as CEO.
Listen to the entire interview or read the summary below:
The New CEO
Snyder began his career with the United States Navy and then built a background in the CPG space with roles at Pepsi Cola and Citibank. He was President of Greenlane before becoming its CEO. He likened the company’s and the cannabis industry’s position to the tech industry in the early 2000s. The cannabis industry is now going through an adjustment period. The company recently completed three major acquisitions and an ERP integration. The company needed to spend time digesting those acquisitions, and now, it is poised to enter a growth phase, according to Snyder.
As CEO, Snyder has three major goals. The first is to help the company reach profitability by Q4 of this year. He anticipates achieving that goal will have a significant impact on the way the capital markets view Greenlane. Second, he is prioritizing innovation. The company intends to continue launching new products. Third, the company is focused on enhancing its ecommerce capabilities.
House Brands and Partnerships
Greenlane’s owned brands include EYCE, DaVinci, Groove and Higher Standards. Groove is the company’s newest cannabis products brand, launched in late 2022. This brand is designed to be more approachable to customers, according to Snyder. The company also collaborates with partner brands K. Haring and Marley Natural. It has plans to launch 20 new products across its brand portfolio.
Owned brands drive higher margin. The company is aiming to find a balance between its owned brands and its partner brands with the goal of delivering the breadth and depth of products its customers value. In addition to launching new and innovative products, Snyder anticipates the company will have one to two additional licensed brand partners by midyear.
Greenlane Customers and Market Reach
The company has a diverse customer mix including major multi-state operators with more than 100 dispensaries, single-state operators and small smoke shops. It recently launched an online portal to make it easier for customers to purchase the products they need. The company also has account reps that manage geographic regions, allowing the company work at a grassroots level. The company works to help its customers understand how to best merchandise their stores. What kind of products do they need to serve consumers, from the connoisseur to the first-time user?
Greenlane has a global reach, which it continues to expand. It has a presence in the United States, Canada and Australia. The company also has relationships in Europe; it expects growth in both Germany and England. In recent months, it has announced distribution agreements with markets like Puerto Rico and Mexico. The company plans to add markets in Asia as well.
In addition to a new CEO, the company announced a new Chief Financial and Legal Officer, Lana Reeve, at the end of 2022. Snyder considers the leadership team prepared to strengthen the company and help it achieve the goals of profitability and continued innovation. The company has brought in some senior talent that understands the cannabis space, understands P&L and has proven experience in their areas of expertise. The company is also examining its sales and marketing talent as it prioritizes innovation.
Greenlane carries a significant amount of assets on its balance sheet. It has more than $50 million in inventory, making the company prepared to meet market demand, according to Snyder. He pointed out that over the past 24 months the company has faced cash position challenges, and he is looking to change that. The move toward profitability is the best thing the company can do to achieve better liquidity at better rates, according to Snyder.
The company’s stock is currently under $1. It plans to complete another public offering this year, and the possibility of another reverse split is on the table. The company would prefer to avoid that route, but it may be a pragmatic reality, according to Snyder.
Looking Ahead in 2023
Greenlane announced $28.7 million in Q3 revenue. It is anticipating similar results for Q4, according to Snyder. As it looks to 2023, the company is aiming for scalable, leverageable and sustainable revenue with predictable gross margins. It has already undertaken some cost-cutting initiatives, which will likely continue this year.
The company has faced the challenges that come with integrations, as well as the larger forces of an uncertain timeline for regulatory change. While changes like SAFE Banking or federal legalization would be significant tailwinds, the company is focused on building a profitable business regardless. Snyder wants to guide the company to profitability and solidify its position as an innovation leader in cannabis while broadening its reach through multiple ecommerce channels.
New Cannabis Ventures provides a sponsored Investor Dashboard for Greenlane Holdings. To learn more, listen to the entire interview.