i hope they pick up a couple more stores before the end of the year
Operational Highlights
Vibe Retail Expansion Strategy
Vibe has continued to expand its retail cannabis dispensary portfolio across California, with the newest store addition located in Salinas, CA, opening its doors to the public on July 15, 2022. The new Vibe By California branded Salinas dispensary at 1031 El Camino Real, Salinas, CA, is open for adult-use cannabis sales from 9 am to 8 pm. The Salinas dispensary offers direct access and visibility on U.S. Route 101, providing consumers with a wide selection of leading cannabis brands and products.
The Salinas dispensary joins the Company's existing California locations in Sacramento, Stockton, Redding, Palm Springs, Ukiah, plus Portland, Oregon. Vibe is positioned to execute its growth strategy of expanding its retail dispensary portfolio and scaling its cultivation business in California. Vibe's management team continues to actively explore expansion opportunities as it looks to add new dispensaries to its portfolio to meet the growing demand for its Vibe By California and Hype Cannabis Co. products.
Operational Improvements
Operationally the Company continues to focus on improving its business efficiencies, integrating new stores and delivering an exceptional customer experience. Of primary note, management in the last quarter focused on improving staffing and labour efficiency, adding and shifting headcounts to newer dispensary locations requiring additional labour support while softening its new hire requirements in more established Vibe locations. While many companies in California continue to face labour challenges, the Vibe team has avoided many of these issues and has right-sized its labor requirements to meet its current, and future staffing needs effectively.
Cultivation Expansion in Monterey County
Vibe's Monterey greenhouse buildout will serve as the Company's flagship cultivation facility in California, with Phase 1 construction of approximately 70,000 square feet now underway. Greenhouse building materials sourced and ordered in late 2021 have been delivered and received. The Monterey greenhouses will utilize low iron glass ("Dutch Glass"), allowing full-spectrum ultraviolet light transmittance. Vibe believes it will be one of the lowest cost cultivators in the region.
While only 10% of the Company-owned 10-acre property in Monterey County, California, will be used for its Phase 1 flagship greenhouse construction project, an additional 5% of square footage included in the Phase 1 construction plan is the conversion of two existing wood greenhouses. One of the wood greenhouses will be used to develop a genetic stock and propagation program to feed the new glass greenhouses, and the second will be used for flowering. The construction plan also includes a processing facility and a separate distribution center to support the cultivation operations. The Company anticipates adding approximately 18,000 square feet of the canopy by upgrading the existing two wood greenhouses.
Rebranded Hype Product Line
Following a period of discovery and consumer research, the Company successfully rolled out the rebranded and expanded Hype Product line with new designs and packaging. "Rebranding Hype Cannabis Co. has been an extraordinary effort by our passionate team members," says Mary Ellen Schrock, the Company's Brand Evangelist. "The striking new aesthetic is based on four pillars - our heritage, premium products, people, and trust. The transformative branding is deeply influenced by our passionate team that works hard to earn consumers' trust by producing the highest quality products available in the market today."
Rebranded Hype Product Line (Source: Hype Cannabis Co.)
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"Hype Cannabis Co. products have been selling extremely well, and we are devoted to consistently evolving our product offerings to meet the needs of the consumer. I am extremely excited by our renewed brand personality being integrated deeply into our DNA, combining it with our uncompromising desire to grow and produce marijuana products with maximum consistency," said Chris DiNatale, Brand Manager of Hype.
Marketing Initiatives
As well as developing the new brand identity and packaging design, Vibe has also focused on improving its traditional, online and social media marketing efforts to support Hype's new look. The Company has implemented marketing initiatives such as improvements to Vibe's website and online store, creative social media campaigns, and increased traditional and digital advertising. The Company is currently focusing its summer marketing initiatives on improving its target marketing campaigns, increasing local market visibility and expanding its brand awareness for its Palm Springs and Ukiah locations.
Vibe Launches California Cannabis Lifestyle Clothing Line
In addition to Vibe's expanded marketing initiatives, the Company has also launched its custom clothing line, a collection proudly designed in collaboration with the famed Los Angeles, California-based designer Mary Ellen Schrock. The new private label collection introduces a complete line of ready-to-wear pieces at an accessible price point. Vibe clothing products are now available online at www.vibecalifornia.com and the Company's retail locations. Additional products will be introduced in a fall collection later this year.
The California cannabis lifestyle and culture-influenced designs are for those who want to challenge the status quo for special events and everyday wear. The initial product line features sweatshirts, hoodies, t-shirts, hats, leggings, and much more, with beachwear dropping later this summer.