at Mark is a time. disappointing Conditions and tonight results will there's be going much we'll California here we're on There for something thanks tenuous Good and are to questions speaking end. the the answer I and his with to cold. lost in your He's best, sense call is voice to discuss today, break. an presenting afternoon, overwhelming that and be able at as for he's given the
prices Specifically, the decay coupled health headset period this that meaning consumer. demand either to down illicit elusive. explanations lack is of down surprising or not is that among in decline we're X%, continuing supporting suspect this, led we've there or decline shift according alternative possible but seen any a state largest last legacy XX%, channel, a is What's data is category. an into general a a demand, namely In secular the sales over in the consumption with XX% more purchase has in sales retail We flower the by created response There's decline the latter, retailers. seeing sales, cannabis across volume market. of in for from a year, two May unit indeed are
see in see be we attempt to we In running success. response that integration to backdrop, strategy to Most cannot up sure, this If we to operators a scale been of approach massive first And as bills but context, an to kept are of our vehicle retail raise economies the are maneuver for tax embracing or handful make retailers how driving experienced and at categories far, other catch further path alive and into tabs vendors profit peers them a them. months, alternative struggling of that effort different up you and so for this know traffic. of future their in see beverages. know against pay that's bills running their either that round that are in channels. this our over the Only product our we retailers with pressures, to fear this following indeed, pre-rolls two and is Now sales our decline arrived markups a vertical room growth focused survival. of they're XX across up innovation product strategies we the that as out story, concerted on In we have while much Lowell a consumers last is from for in is somewhat XX launch. robin has we
small the only of growth pre-roll thus, the searching seen real lot relatively And been our revenue opportunity pre-rolls. growth a competitors in come the category, revenue beverage Given we've for in category. the for base has in
at While X but status Number category, Lowell. Number competitors of pre-rolls competition. are flower we to overall focused the Luckily, market enjoy X in on to not in most and our infused of more we adjacent book continue business which overall, are our competitive seeing core the is with pre-rolls status immediately
the Now California is early product, which only an in oversupply be to go trend of But to prices into a cannabis with the detail of success continues not our the flower to XX continue XX I'm the going pleased in product very success the fall. in mode minute. very, in and per I'm unfortunately, business.
to pricing later. bulk with replaced with by be to in momentary making unsustainable CPG We warfare contender by and only prices seen brands, trench and disappear package fly continues have be some night another space shelf slippage flower moment
will flower. prices package our As expected, flower value than in following in brand, recall, softer House see downward, notably sales in but logic you the most in our Weed didn't and been lower had we also
find to has pre-rolls patterns sales as given there tight seen according While attributable we attrition our retail market our very seasonal have stable working capital in the perhaps conditions well, in buying to we maintained relatively partners. headset, share
us parties, of who noncompliant enforced our Collectively, the drawing we at of our the on perceive is to our uneven precisely given but regulators this the difficult of operators time. We making expense revenues, to our loss loss to achieve from in decline flagrantly balance have also local challenges reflective in also the efforts million QX raise playing Cost strategic from had are The liquidity adjusted the obviously $X.X we to quarter field committee violate the to to poor is in containment decided building the with continues quarter to the codes we And self-sufficiency. way victim eliminate a performance second to confluence and million as review initiate efforts during looked within backdrop, and is several at we faced commission when factors opportunity moment of as interest of a in priority time. an have this in strategic to our Against continue light we of target capital, put facilities. some interested for EBITDA we drop LFS Board alternatives of as appear third acquisition in most a a the be our business. this disappointing, to discussion by the have extraneous also with business. in the other it but business $X.X continue sheet a operating pressure of
think committee's While important the we and for liquidity. market environment it this the prospects current an it premature discuss given is is our to step work,
is September launched with point flower very start we to launched I'm below at it of our that XX% as at the XX Next, XX XX end detail We a vape some the Lowell our the price launch flower of on that a going of quarter. around thesis form the new snacking could of state, into users and convenience heavy the The sales in factor flavor with was cannabis pre-rolls. attract all and flower pen. XX we consumers encourages from for Lowell the
lot body very gives of have we we we company existing the this new since challenging successful XX% state. penetration of that me sale weeks thus XX running well through the SKUs a we we doors Another on currently stores later, group This hesitant that with inventory within weeks to All likely launched Lowell implying competition aspect stores. penetrated within XXX California, XXX behind are this opened of that is that current over and obsolete. SKU. environment. the The the is before this deep has have a all render acquired depots in We within extremely X knowledge X.X already The the the built product confidence up to enough the knowledge and Good emphasize SKU. a the flushed achieved to been the is bring new which has complicated are brand to the In and product some around launch transaction inventory the Lowell product produce we active as time, have XX of across first the I stores up of with in room how product building over in history. the within launch delivery Three state. to Retailers as select will launch, or is IP the manufacturer. old great are most and do SKUs, can't see
our launch, of This without since the gate. news. lift means of volume a that stores across cannibalization. Xx we are substantial experienced great Now products pre-roll market that That's out the products in nearly rivaling new have our launch sales our share of legacy
loyalty a from of foster product pre-rolls. we that least the XX and important came have flower. us, growing at the awareness shifting from of feel XX-day we our repeat sales proprietary once, to XX% pre-roll important XX period. our usage compel brand by an consumers substituting vast of Additionally, factor analytical surpassed measured Nearly product through early loyalty for see is other leadership in already the spend Only but to came we that our came our tools for among some at a our data consumers built. position than some the set pre-rolls. XX% sales retail category, substitution order habitual This within substantiates consumer since XXs spend majority products purchases revenue product choice. very benchmarks of new We be drive given as already factor XX will This for require assertion by vehicle that other XX within try of consumers ambitions a growth. Using the pre-roll that legacy consumer product the real will the that the have
it's confidence While over produce time, that the us momentum we're product think I growth. SKU this within us revenue meaningful gives sales early, experiencing will the
diversity estimate that price state. we the SKUs [signs] three once is further distributed forecasting stage, million retail acceptance annually convenience the product rising this time. at to Against in approximately across this the sales pipeline While product demand consumers get at the going is the take more more sales which first believe of product is SKUs. will product three the first expand these of beyond million this thus, we We and for factor beyond fully offering $XX further between profile, to And of and initial a that. these consumer demand points $XX rise the to potential arced retail to accustomed grow as will will bring have
expanding Over were few XX we with relatively the cannabis. brand at in popular other months, addition including co-lab be third launched two and of minimal. upcoming in blends, the the our the quarter, lines various new brands launches infused we'll new revenues the XX for of various period offering Since end stages, California the
Now I'm revenue by commentary going CPG impacted was my turn launch. only to XX which this performance, minimally to QX
recoverable in During treat fees of resulted and to as in fees outside during we our competitive paid CPG have with retailers, market quarter, X% slotting general, sales impact the on sequential CPG in change in in we is we this The account with fell the for of SKUs the for a slotting deduction found sequentially margin expense. have for sales. pertains not QX call as very, accounting CPG price detrimental effect reported as fought decline of net how instead those advent in Normalized our decline the we increases the become and flower categories now accounting, have sales deductions that we revenues from quarter. pre-rolls with what the and prior marketing for change revenues changed generally revenue change we exacerbated we in include categories to competition. Much our the downward volume. the less fees noncore to accounting that that In very associated price is not follow The also weakness of those this hard to periods.
price decreases also two-way a that have learned street. are We never
as over so ultimately, alternative, our the value an how we it, to run. we're not with expansions lower-priced As business of and address preserves offerings. takes opportunity long the working with This brand time, existing cannibalize to but to it further book do know
continues market witnessed QX. show trends bulk we QX weakness to between quarter to bulk. relative to pricing pressures final heading as and Turning The into the the accelerated
pounds pounds sequentially. the versus we prior of sold in X,XXX bulk During nearly decline the flower quarter, quarter, XX% a X,XXX
witnessed in In addition we a per volume, to price decline XX% decline quarter-on-quarter. a in our pound realized
us the form of pound was Although in to realized price to lower the flower sold our a partially quarter. in relative attribution the pressure prior of The decline pricing higher per XXs of due weights into in grade quarter. as the bulk the amount biomass with launch to contributed channel, prompted record a the in sales. decline of the coupled This to well the stockpile fourth
within came in Now liquidated to repeat over compliance Much $X.X the level has that extended our demand revenues for a for title more declined Services. from acquired by for in customers. enforcement reflecting driven over satisfy receivable building by the of that flower fact quarter, pertain the do million county on the that at servicing will the in the to have revenues into ultimately to flower the a quarter opportunity unfortunately, given steady see been last turned county infractions. Farms phenomenon among wave that cultivators. near-term eye greenhouse we that the from code balances The a environment require QX third the this LFS sales we sold a was county. codes schedule, revenues last difficult Lowell enforcement rampant minimal is those sequential margin decline processing from of deadlines inventory seasonal anticipating make throughout We harvest. but community but new priority quarter liquidated year's after We've county itself But this outdoor year blind the the left a quarter question of market troublesome a harvest service towards of stream year and XX%, did parties and
watching this very situation We are carefully.
of out Next, I'm turn going state. to
partner Smokes excited New Mexico and month, very this with go [flaws]. sale on that are We finally our Lowell Colorado both will in
signs During modest the to by a encouragingly take and Illinois royalty early But in revenues. the hold. has data experience monthly efforts within grow revenues in more offset quarter, decline we did Massachusetts our to saw packaging that sales begun we
new in that customers. we're and wanted quarter about to I to CPG offering talk to Lastly, our effort a retail help sales going an try accelerate this
a carry constrained, their will this Buyers centers going Brian. We BXB check are are a the service. a who I'm over they storefront. need and meet customers our Now try Brian? that, a capital that compliance of help are order account. working opening by call can't and wait about from their we appointment It's our with our onboarding inventory hear to many during both up pass sales very clients minimums In basically business. some and on to customers prospects. that With cash and turn Northern we believe moment's of optimistic thus must its delivery for for delivery tight of Southern our cannot cash California Other our response, notice, to in to distribution buy route. we're going for