It is with great privilege that I've had the opportunity to meet with CEO Jeff Maser this past week. Before I get into this let me start:
I've been a shareholder for some 3 years. I've been to and from California multiple times to do my due diligence, test products, get consumer feedback, take pictures for my Tinley memoires. I add shares on the weekly, my friends and family own shares, believe in the company, its products and its prospects and we are all comfortable with our investment regardless of share price or its fluctuations. I have daily communication with shareholders owning a combined 10m shares and millions more in warrants. If I had to estimate the amount of shares this group owns collectively, it is likely close to 15m (14% of the public float) plus warrants.
For those that do not know, Tinley Beverage Co is the only pure play cannabis infused beverage company out there.
With the movement of social trends towards the 'sober curious' movement, one can clearly see that Tinley is in the bullseye of an exciting consumer trend. The sober curious trend is real and the company is at the forefront of this movement.
Vaping popularity might be on its way out given recent health scares in the news and media, alcohol sales have been steadily declining, hangovers are no longer fun and deter many from drinking in the first place. Sugary drinks are on the decline, too.
In a social scene, drinking is the most popular - you sit back, relax. Smoking cannabis is still popular with many, but is frowned upon by many with the smell and the need to 'hide' it from the kids and family members who might not be open minded to it. Passing around a bowl of 'infused' gummy bears at a party might lead to fun, but isn't the preferred method of socializing. One bear and you're finished your consumption for the night.
Tinley has capitalized on a solution - the development of premium beverages that replicate the taste of alcohol, but infused with THC rather than alcohol. Their drinks mimic popular beverages such as the Moscow mule, margarita, amaretto, coconut rum, fireball whiskey. 30 calories per serving, 4-5g of sugar, gluten and vegan free and a modest dose of 5mg of THC. The dose is low to mimic the effects one would feel after a single serving of alcohol. They also have a newly developed non alcoholic, non infused line named 'Beckett's' which uses the same flavour profiles as mentioned above.
Many companies have tried, but have failed at the taste test - and sugar test - Tinley has found its groove and commands a 3 year head start on the competition - products taste tested repeatedly and perfected over this time. They have developed the know how in its California market over this time, proving invaluable moving forward in its expansion plans. The company has successfully maneuvered itself around the legislative landmine that is California. Product reviews are 10/10 across the board.
Budtenders continue to see Tinley's product sales increasing in their individual dispensaries and their individual orders cannot meet their own dispensary estimates. The company continues to add new dispensaries weekly.
With cannabis pricing decreasing astronomically as more and more dry product comes to market - the input costs continue to decline for Tinley. It's most recent financials indicated a drastic increase in raw materials. One can infer that this raw material is needed to produce more product due to demand.
Tinley's share float is tightly held. It's board and principals are highly experienced in the beverage industry. The most recent corporate presentation outlines this skill set and products available to consumers and can be found at:
Marketing is now being ramped up. Tinley has recently signed the most exciting marketing deal to date with Baron Davis joining its advisor board:
Baron Davis is a two-time NBA All-Star and record-holder AND an early stage Vitaminwater® investor.
Over a thirteen-year career, he played for the Charlotte Hornets, the Golden State Warriors, the Los Angeles Clippers, the Cleveland Cavaliers, and the New York Knicks. Now, an entrepreneur, investor, and businessman, Baron is also the founder of several companies under his Baron Davis Enterprises (BDE) banner, including: Business Inside the Game (BIG) and Sports Lifestyle in Culture (SLIC), his media platform and content studio.
As Baron’s participation increases in parallel with the industry’s maturation, the expectation is that Tinley will plug into Baron’s portfolio, studio and network to spur exponential growth, with the initial collaboration coming via SLIC, with whom Tinley is developing its first podcast idea, “So Faded,” an edgy, celebrity driven mix of fun, culture, and comedy in which Tinley products will be featured prominently
Our recent BevMo deal announcement:
BevMo, one of the most prominent liquor retailers in California, will now carry cannabis-free versions of the Company’s beverages in California, Arizona and Washington. These products allow for a cross marketing of non cannabis infused beverages and cannabis infused. Essentially adding our products to 150 stores.
Tinley Added Two Mass Retailers and Entered On-Premises and Home Delivery Channels:
Tinley's non- infused Beckett’s™ product line will be launching in two additional mass retailers, in addition to the previously-announced 150 store deal with BevMo. Two Additional Mass Retail Chains on the heels of its 150-store deal with BevMo, Tinley has begun the onboarding process for its Beckett’s™ products for local store trials at one of the USA’s largest grocery store chains, with over 2,000 stores across the USA. The initial trial will be in select neighbourhoods in Los Angeles and Orange County.
Additionally, one of the USA’s largest national club/warehouse-style retailers has committed to a monthly Beckett’s™ product feature in an initial Southern California location. This chain’s product features typically include dedicated high-visibility case stack displays and sampling in high-traffic areas near checkout, and are used as an initial step towards wider store rollouts.
Tinley is continuing to pursue additional mass retail placement for its Beckett’s™ line of products, which are eligible for sale in mass, specialty and on-line channels in all 50 states.
Delivery of its products is available to the vast majority of California consumers via online delivery services.
Last, Long Beach City Council recently agreed to lower the tax rates for non-retail cannabis operations in the city in an attempt to spark growth in sectors of the industry that have lagged since its legalization three years ago.
The resulting ordinance will reduce tax rates for distributors, cultivators, manufacturers and lab testing facilities from 6% to 1% (their tax will fall from 12% to 2%, 6 to 1 for manufacturing and 6 to 1 for distribution). Tinley's Long Beach Facility will qualify for this reduction.
Bear in mind the news flow that will land on our laps over the coming weeks:
- Long Beach Facility approval. We currently copack at Vetsleaf in Palm Springs. Tinley will begin production in Long Beach after this approval.
- Nevada expansion. Once the Vetsleaf line is packed up, it was be shipped to Nevada to begin production there. Product cannot be shipped over state lines so the equipment must be moved instead.
- Copacking agreements. The company has kept it no secret that it will copack for prospective companies. Product will be produced at the Long Beach Facility in short order for other companies who do not have the resources of their own production facility. Tinley will receive a royalty or some sort of compensation from these companies.
- Canada expansion, Health Canada approval and licenced producer deal. Tinley will copack with an unannounced company in Canada and sign a deal with an LP to provide THC for the infusion process. Health Canada will provide its approval of our products in due course.
- AGM meeting
- Unannounced deals and celebrity endorsements that will most likely happen at any time.
- Consistent expansion into dispensaries and consumption lounges.
This may now be a rehash for some, but allow me to share my findings with my recent California tour with Jeff Maser, CEO:
The experience I had with Jeff at Long Beach and then on to Palm Springs is by far more important than any press release you could ever read about us.
Prior to my arrival at Long Beach - I was anxious, restless. I wasn't sure what to expect because we build up expectations in our heads - we have a "sense" of what is, but it is not always reality. Walking into the facility and it became real. It hit me like a ton of bricks. We are open for business and the overwhelming image of our company's endevours in front of me...will not ever be forgotten in my life. Without a doubt - each of you were on my mind as I took this experience in - I had your backs. It was important for me to share everything I could. We're all in this together and I was more than happy to give you all that I could.
Billboards lined the highway of the I-10 along the way. What's interesting about these billboards - they're all cannabis products and dispensaries. With a smile, Jeff pointed out at each: "We're in that one" "We're in that one" times 14. Of course my eyes looked like dollar signs by the 14th billboard.
Vetsleaf - Was intimidating, the security around it was like prison. A lone guard managed who went in and out. After checking in my passport as ID we were greeted by an employee who was elated to see Jeff and to give us the grand tour.
We walked in and a long hallway, similar to that of a hospital was in front - with rooms to either side. She showed us where Tinley's products are formulated, with all of the ingredients lining the wall. Step two - the product is pumped into the bottling room. The picture of Jeff and I was that room. Everything we have was created came from this small room. I patted the equipment as a way to say thank you for getting us here.
She took us into the development room where multiple companies test out products and run their testing. Several employees where at the end packing prerolls into containers for other companies.
And then, she opened the next door with an entire warehouse of our product, lining the wall. It became real here. This was the biggest surprise to my day. What was packaged in front of me was what I'd say was approximately $400,000usd total of all 5 products.
In the pics you can see my face beaming with excitement. I knew right then and there we had not a worry in the world. This product was not produced to sit around. It was produced to fill incoming orders and fill new dispensaries. Jeff took pics for himself, too. Selfies - his mood was above and beyond happy - and it eliminated any second guessing I ever had. I hugged whatever pallet I could get my arms around like it was my own child...maybe I should get out more.
After 10 minutes of pictures and awe, she took us to receiving. There lay $35,000usd of product ready to go out the door, awaiting arrival of Tinley 2 to load.
Tinley 1 was outside - jammed to the roof with another $35,000usd ready to head out today. I thought of Dyl Mann right away and his photoshop of Jeff or Rick sitting in the driver's seat. I mentioned to Jeff that I think I seen a few pictures of him driving this beauty before...he laughed. Thanks Dyl.
I grabbed 1 of each of the cask containers to take home as a souvenir shortly after. A quick stop at BevMo and 2 dispensaries thereafter and I was on my way to the airport again.
It wasn't until I was in the air that I had an overwhelming feeling come over me and I'm not afraid to admit that I actually teared up for a brief moment...and then I smiled. This company is bigger than any of us can grasp...and I was there for it all. I felt safe - and was overwhelmed by it all knowing many of you looked forward to what I could give back to you.
We have a CEO that speaks of this company with excitement, passion and enthusiasm.
We have an obligation, as shareholders, to ensure this company is successful despite market movement, negative sentiment, noise. Management plays a big part, but so do we. I encourage you all over the holiday season to share with you friends, your family, what I've witnessed this week. Word of mouth will make this company. The party has already started in California...next stop here, in Canada.
Cheers Team - the excitement begins now