Can California and New York Make LEEF a Breakout Brand?
Can a California extraction-first operator really turn brutal market headwinds into 45% margins—and keep it going as New York ramps up? That’s the question on the table in this deep-dive with one of the rare feel-good earnings stories in U.S. cannabis right now. The TDR Trade To Black podcast, host Shadd Dales and Anthony Varrell interview Micah Anderson, CEO of LEEF Brands Inc. (OTCQB: LEEEF) (CSE: LEEF), to walk through how an extraction-led, vertically integrated model is driving margin expansion in California and early wins in New York.
From locking in sub-$10/lb input costs off a 65-acre farm in Santa Barbara County to running three extraction lines in Mendocino, Micah breaks down the playbook behind LEEF’s Q3 turnaround, capacity sell-through, and brand-partner strategy. By producing their own biomass—dropping input costs from $20–$50 per pound to under $10—they’ve significantly reduced production expenses.
Anderson detailed how Leaf evolved from a small extraction-focused operation in Mendocino County into a vertically integrated company. They also get into what’s next: where concentrates and smokeless products fit as consumer preferences shift, how genetics and SOPs matter when you’re scaling outdoor at size, and why California could still be the global engine once interstate commerce and a “one plant” THC policy finally land. Along the way, the crew talks New York realities vs. hype, why being battle-tested in California matters, and how a company like LEEF is positioning for the day big CPG and beverage money shows up.
Looking ahead, Anderson believes the future of cannabis lies in smokeless consumption methods like low-dose beverages and edibles. He views hemp’s consumer trends as an indicator and expects the industry to move away from flower dominance. He also emphasized that concentrates offer greater shelf stability and scalability than flower, which helps preserve value and minimize risk.
Despite California’s regulatory hurdles, Anderson argued that surviving in the state is a mark of operational excellence. He believes California will eventually dominate the national cannabis market due to its climate, infrastructure, and agricultural history—much like its role in the wine industry. He also noted that New York’s regulatory environment is far easier by comparison, making expansion there more straightforward.
For 2025 and 2026, Leaf aims to expand cultivation in California, increase equipment capacity in New York, and double down on its genetics program. Their long-term vision includes possibly entering the branded product space, but for now, the focus remains on building a solid operational foundation, scaling smart, and providing unmatched service to brand partners.
