Photo courtesy of OSRAM Fluence
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Osram Fluence is using science to convince cannabis growers that broad-spectrum LED lights are the best way to increase production.
Fluence CEO David Cohen said that the Austin-based company’s founders Nick Klase and Randy Johnson found that broad-spectrum white light best mimics sunlight , Which in turn is more effective for growing cannabis than light sources with higher blue or red content. After working in the wider LED industry for more than 20 years, he joined Fluence in 2018.
But don't believe Cohen's words. Fluence is confident in the science behind its lighting solutions, it supports research that proves its technology is superior to traditional lighting, and finds that more and more growers are adopting LED lighting.
The 6th annual "State of the Cannabis Lighting Market" produced by Cannabis Business Times with the support of Fluence found that 69% of participants used LEDs in the communication process, compared with 33% using fluorescent lights and 22% People use high-pressure sodium lamps and 13% use metal halide lamps.
The study also found that 63% of growers who currently do not use LEDs during flowering are considering implementing these solutions in the next 12 months, and 15% of growers said that when considering LED lighting, managing energy costs is the biggest Challenge.
"We are committed to leading science and research," Cohen said. "We have been working hard to evaluate and optimize lighting strategies so that we can provide tangible evidence to growers. Data-supported research can effectively show growers their return on investment."
This is a strategy that seems to work for the company.
Cohen said that since taking the helm in 2018, Fluence's revenue has doubled almost every year. This year, he expects revenue to be between 160 million and 170 million U.S. dollars. The data collected by the company shows that investment in cannabis cultivation will grow by 2025, and some of the best growers are turning to LED lighting.
"Our technology platform and our well-developed technology have proven to be the standard for cannabis cultivation," Cohen said. "Now, everyone is using broad-spectrum solutions."
Fluence's lighting technology is very suitable for vertically integrated companies such as Canopy Growth Corp. (NASDAQ: CGC), Tilray (NASDAQ: TLRY) and Aurora Cannabis Inc. (NASDAQ: CGC) : ACB).
Cohen added that although the cost of purchasing LED lighting is 5 to 10 times that of traditional lighting, its energy saving and long service life are attractive to growers. LED lights can last for about 50,000 hours (or about 10 years), and then you must replace them.
Fluence's background in hemp has also helped it grow in the commercial agriculture industry. Methods specifically used for cannabis cultivation may be effective for many different types of plants. According to Cohen, another advantage of LED lights is that they help plants produce higher yields than traditional lighting methods.
"If your plants usually grow 10 pounds of tomatoes, we can provide a lighting strategy that can produce 12 pounds faster," Cohen said. "LED lighting has really changed the market, transforming many high-volume growth products from high-pressure sodium lamps to LEDs."
Fluence's continued investment in global crop research has led to the launch of its latest lamps and controls that will debut in 2022. The company has launched many new products on MJBizCon, including its high-output SPYDR 2h lamps, SHYFT Light Scheduler and so on. The largest trade show for the cannabis industry.
"We got an incredible response from our customers," he said. "MJBizCon is a great opportunity for us to consolidate our partnership with growers across the industry."
The previous article was written and/or published as a collaboration between Benzinga's internal sponsored content team and Benzinga's financial partners. Although this article is not and should not be interpreted as editorial content, the sponsored content team will work hard to ensure that any and all information contained in it is true and accurate within the scope of their knowledge and research. This content is for reference only and is not intended as investment advice.
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