Progress Report: 10.28.22

Grasshopper Family,

This is the last heavy lift week of harvest. We should be wrapping up with the big lift items that are time sensitive by Monday. The team has worked VERY hard through these six weeks.

I often say that we should not measure ourselves when times are good. Rather, we should look inward and reflect during times of challenge and difficulty.

Harvest is both challenging and difficult.

The Michigan market is also extremely challenging. I have shared that I believe (and other owners agree) that we are in the midst of the most challenging time to be a cannabis business in the state of Michigan. I believe this fallout period will be 12-18 months in which people are selling products at desperate prices before they go out of business. Their race to the bottom mentality is not something we will engage in, but does present asks and offers of ridiculous prices. So, we have to make sure we work with our preferred retailers as this supply clears.

While this is both challenging and difficult, this is what it is to run a new business in a new industry. We have a plan and we will be just fine...if we stay focused on discipline, patience, consistency, and leverage strong business acumen.

Which is exactly what has served us so well to date.

We had another MSO visit us yesterday. They were blown away. They said they would like to develop a contract for a monthly allocation AND they want to sell our flower into other retailers they are already selling to. This is a huge development. We did the math and we believe we will have enough product to have similar contracts with five more larger retailers, and then still have enough to service our solo retailer partners.

Strong business partnerships will define those who will endure market fluctuations.

Two of the pictures this week are featuring the field cut-down team. They have been crushing it. Please note that all are wearing our Grasshopper Farms sunglasses that we had leftover from the promotions we have been doing. Nice!

Ivan and Clint posed for a picture at the end of one of our long harvest days.

Both Aaron and Nate got caught by the camera while using our steam pressure cleaner on some of our equipment.

I stepped away from the farm this past Monday for a day to join my family for Diwali. This is a very important holiday celebrated in my wife's family and I am honored to be a part of it. Three years ago I was invited to join the table where there is a ceremony of closing the books for the previous year of the business and opening a new book for the year ahead. Perhaps (not so) ironically, that is exactly when Grasshopper Farms took shape. I included four pictures of my participation in the ceremony. One of the pictures also has my wife and another has her mother. It was another incredible moment in my life and milestone for Grasshopper Farms.

As we move on to a few more pictures...

We see one of some of our team pushing a van they worked on and got running after sitting for a week. Great team effort!

Check out the awesome shot of VERY clean and organized equipment racks. Shawn managed it while working on the overnight shift. But, the entire team strives to keep things clean and orderly.

The picture of the black tote with the yellow sticker is quite remarkable. That is Wedding Cake (WC) in the tote. That was this past Saturday, on 10/22. But, that tape and writing was placed on that tote...last year! It was pure coincidence that the same strain came through on the same day. A sign...for sure.

I took a shameless selfie in one of the drying rooms. I had to share. Sorry!

Andrew took an awesome picture of one of our branches of a newer strain we are evaluating - Candy.

And the final pictures are of the skyline that we will never tire of seeing. Shawn, Clint, Matt, and I took these particular shots. But, there are SO MANY MORE.

All awesome. All blessings.

I know that I share messages of awesome with you all each week. I want to make sure you all know that the awesome comes with a TON of work, all sorts of challenges, many obstacles, plenty of stress, and more. But, you have gotten to know me by now. I don't falter under stress. I find solutions and adjust as we go.

But, make no mistake about it. The Michigan market is in a very hard place right now and I am working very hard to navigate us through the storm. I am 100% confident in our ability to come out on the other side, but it will be a very hard path.

And that takes me to my closing message. YOU have all been absolutely incredible. You have called me. You have sent me text messages. You have emailed me. You have offered to help. You have assured me of your faith in me and our team.

YOU are a part of the solution.

And I am eternally grateful to each of you.

Please enjoy your harvest weekend.