How This Company Reinvented Itself After 2021 Cannabis Boom

At the IgniteIt Cannabis Capital Conference in Chicago, some of the main topics in conversation have been consolidation, efficiency, and the next phase of cannabis growth. IgniteIt’s Nicolas Jose Rodriguez sat down with GrowGeneration Corp.’s (NASDAQ: GRWG) CEO, co-founder and chairman Darren Lampert.

From the start, Lampert positioned GrowGen simply as “the largest provider of hydroponic equipment in the country,” serving both single-state cultivators and the largest multi-state operators nationwide.

However, GrowGen’s identity these days has shifted from being just a supplier and to being more embedded in how cultivation actually works on the ground.

The company has built out a portfolio of proprietary brands designed to support that shift. Beyond products, Lampert emphasized the role of technical teams that work directly with cultivators in the field.

That growth, however, followed a difficult reset.

Lampert reflected on the restructuring period, during which the company shifted its business focus, as market conditions shifted after the 2021 peak.

“GrowGen grew from historic in 2014 to almost a 450 million dollar sales company in 2021,” Lampert said.

As demand softened over the years, the company moved away from its earlier model.

“We made some really difficult decisions… to walk away from the business-to-consumer side of the market to the business-to-business side,” Lampert continued. He described how GrowGen went from a number of retail locations to a much leaner footprint, which includes distribution to warehouses, commercial accounts, and direct delivery to cultivation facilities.

An outcome of that restructuring has been the push into proprietary brands. Lampert noted that aproximatelly 40% of sales now come from GrowGen-owned products.

The discussion also touched on industry catalysts, such as the regulatory environment and the impact of scheduling reform that could unlock capital and boost sentiment.

“I think schedules three (S3) on the medical side… just going to be, extremely, extremely productive.”

Rescheduling represents a first step toward improving balance sheets across the sector, while restoring investor attention.

As for the mood at IgniteIt Cannabis Capital Conference, Lampert’s takeaway from Chicago is that the industry may finally be entering a more constructive phase that relies less on hype, and more on operational discipline, technical execution and slowly returning capital confidence.