RE:RE:RE:RE:RE:RE:RE:RE:RE:Planting The upcoming cannabis edibles and alternative products are forecast to be big business. After the summer, if they get a great harvest, I think they will make a big announcement regarding a partnership.
Take a look at the following quotes from the CEO:
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"But the company, unlike Newstrike or Canopy, isn’t looking to partner up with an existing brand — CEO Alison Gordon believes that the more sustainable revenue stream for her company will be partnerships with contract manufacturers that make a myriad of products across many brands.
“We would create not just our own products, but we would be able to white label and create products for other producers in the industry,” Gordon said. “Look, there’s no shortage of companies that are interested in getting into the pot space in the lead up to edibles being legalized. But we’re trying to find partners that work with multiple brands and have an expertise in formulation — companies that actually do the work of manufacturing the product.”
Gordon hasn’t yet secured a deal with a specific company but says that she’s “far down the path” with a large scale Canadian contract manufacturer that makes upwards of 14,000 products. “I don’t want to be stuck in a position where Health Canada changes the rules on what products we’re allowed to infuse cannabis with, and suddenly my partnership with say, a brand like Oreo, becomes meaningless because we can’t put pot in cookies.”
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Well, a big part of our strategy is really partnering with consumer packaged goods companies that are not in the cannabis space. So we’ve been spending the last six months really working with a few that we will be, you know, talking about very soon in these partnerships, and when you spend time with someone who’s been doing food manufacturing for 50 years, and you go into their facilities, you’re like, Okay, you know what? You know how to do this in a way that us as a cannabis company could never touch.
They’ve made the mistakes over the years, they understand manufacturing, they understand packaging, they understand distribution. I mean, when you buy a package of Oreos, it looks and tastes exactly the same every time, and there’s a science and art to all of that. So for us, it’s not about saying We’re going to do cosmetics and we’re going to do food and we’re going to do vape pens, on our own; it’s saying, We have this valuable license that’s not easy to get; I think there’s only 58 sales licenses right now, since, you know, 2013.
Here is a company that’s a large consumer packaged goods company that wants to be able to manufacture with cannabinoids; we have a license, we have cannabis know-how, we have unique cultivars. So we just announced today that we’ve phenotyped six of our 17 cultivars, which are things that not everybody has. We have that knowledge, you have this knowledge, let’s come together and create a facility that will be licensed to utilize their IP and knowledge and know-how, and ours. And not just to create our own products and brands, but to be able to contract manufacture for the industry.
I don’t think a lot of people realize that the really, really big food companies, the ones that pop into your head as, like, the biggest CPG food companies, most of them do not make their own food. I mean, it’s being contract manufactured.
They have a brand – they’re brand companies, they’re content companies. So, you know, on the one hand, we are a brand and content company, 48North, but we also, with this license, are leveraging that to be able to be partners with some of the best in class in those verticals to allow them to do what they do well, and take the value and revenue that comes from being a partner in that.
So you know, those types of relationships take a long time, and with big CPG companies like Johnson & Johnson, Proctor & Gamble don’t come and just go ‘Yeah, yeah, let’s do Ju, let’s LOI, let’s announce it.’ So that’s what I’ve been doing over the past six months.
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Just be patient!
"The stock market is a device for transferring money from the impatient to the patient."
- Warren Buffett