Record growth and expanding product sales. That’s what 1933 Industries Inc. (CSE: TGIF, OTCQB: TGIFF, Forum) reported on October 12, 2018 for its Infused MFG division.
Canna Hemp™ is Infused MFG’s proprietary line of hemp-based products, infused with cannabidiol (CBD). “CBD” is becoming big news in the cannabis industry globally, as awareness increases of both the tremendous medicinal properties of this cannabinoid as well as its health & wellness benefits.
Increasing demand for Canna Hemp™ products has fueled revenue growth from a starting base of US$7,403 to US$600,000. That’s an 8,000% increase in sales, achieved over a span of a mere 14 months. The Company’s largest operational footprint is in the state of Nevada, but it has also established a strong presence in the key California hemp-CBD market – and just entered the state of Colorado in the previous week.
President and CEO of 1933 Industries, Brayden Sutton framed this news for investors:
"Our focus has been on producing high quality products infused with hemp/CBD, with over 80 SKUs and more in the pipeline under the Canna Hemp™ and Canna Fused™ brands. We see the CBD market as a key component to our business and a high-growth vertical. We are actively looking for partners in each state to replicate the successful business model."
Current distribution of Canna Hemp™ and Canna Fused™ brands is through over 400 retail locations in the U.S., including more than 100 retail shops in California. In addition to the recent expansion in Colorado, 1933 Industries has already expressed its intent to pursue expansion targets in Oregon, Arizona, and Canada.
The Company’s latest venture is its partnership with Denver Dab Co., a Colorado-based concentrate producer. Denver Dab has established itself as a premium producer of concentrates, with industry-leading quality/testing standards. Via this partnership, 1933 Industries sees near-term potential to achieve distribution in 100+ retail outlets for this state as well.
Why is hemp-based CBD infusion such a hot topic within the cannabis industry these days? It’s more than just rising consumer awareness. There is also an important regulatory component here.
Here knowledgeable cannabis investors will immediately focus on the U.S. Farm Bill 2018. The proposed legislation (which has already received U.S. Senate approval) would legalize hemp in the United States for commercial purposes at the national level. A game-changer for the U.S. cannabis industry.
With hemp-based cannabis products already available in many individual U.S. states, and hemp (CBD) infusion now well-developed, there is enormous potential for a springboard effect if (when) this legislation is passed. In anticipation of this legalization, several U.S. states have already started liberalizing hemp regulations.
1933 Industries (formerly Friday Night Inc.) has recognized this opportunity and is already aggressively pursuing state-by-state expansion of its hemp-infusion operations, with an eye to (potentially) a much larger opportunity in the near future.
As “Friday Night”, TGIF had a strong orientation toward the adult-use side of the cannabis industry, given the Company’s strategic location in Las Vegas, the U.S. “party” capital -- where adult-use cannabis is now fully legal. In becoming “1933 Industries”, TGIF isn’t moving away from the adult use market.
That opportunity continues to have lucrative potential. At the state level, there is already a larger population base with legal access to adult-use cannabis in the United States than in the entire nation of Canada – as Canada stands poised to legalize adult use at the national level.
As 1933 Industries, the Company is simply embracing the additional commercial opportunities that have quickly come into focus in the U.S. with the rapid movement toward the normalization of hemp laws. With Infused MFG as a separate unit within TGIF, 1933 Industries is poised to capitalize on this development.
The near-term story here is the explosive growth in sales for Canna Hemp™ products, and the robust growth potential for further expansion even on a state-by-state basis. Many investors, however, will be focused on the Big Picture. Those investors will look at the 8,000% growth in sales from Infused MFG’s initial start-up – and compare this to the potential should the entire U.S. market suddenly be opened up for hemp-based commerce.
CBD-infusion is becoming a global trend in the cannabis industry. Hemp-based cannabis applications have been producing a robust growth curve in the United States. 1933 Industries (and Infused MFG) is an opportunity to be positioned for both of these trends – in one investment vehicle.
1933industries.com
FULL DISCLOSURE: 1933 Industries Inc. is a paid client of Stockhouse Publishing.