Vancouver, BC-based cannabis Company 1933 Industries Inc. (CSE: TGIF, OTCQX: TGIFF, Forum) is about to capitalize on the US’ most prosperous state, as far as cannabis is concerned.
TGIF shares saw a nice bump this week, following the announcement that it will begin a new manufacturing and cultivation operation in California. This is where the Company will manufacture locally, and make its full spectrum of CBD products, which come from cannabis.
Following a successful trial run of 30,000 units, full-spectrum CBD Cana Hemp™ products will be available at dispensaries later this month, once they undergo laboratory testing. These products include relief creams, elixirs, lotions, capsules, vape pens and cartridges under the Canna Hemp™ brand, as well as Canna Hemp X™ recovery creams and elixirs.
(Image via 1933 Industries.)
Situated in the Los Angeles area, this cultivation facility will serve as 1933’s main distribution hub for deliveries across California. It is roughly 10,000 sq. ft. in size and boasts another 10,000 sq. ft. of shared manufacturing and distribution space. The first harvest is expected during the first week of February 2020 and will be followed by a second harvest the week after. The Company anticipates monthly harvests to yield around 100 lbs. of craft-grown flower for its Blonde brand, as well as concentrates and its new Alternative Medicine Association (AMA) THC products, which it recently debuted.
This growth comes at a key time for both 1933 and the state of California, where the industry is reported to have seen $3.1 billion in licensed cannabis sales for 2019, according to cannabinoid market intelligence and consumer research BDS Analytics and Arcview Market Research. The industry is forecast to grow at a 19% compound annual growth rate (CAGR) to $7.2 billion in the next four years. This is 40% larger than Canada’s industry and an immense 253% bigger than Colorado, the next-largest state market.
For comparison, sales in California represented about 24% (or $2.5 billion of legal cannabis sales) in the United States from 2016 to 2018. Combined sales in Colorado, Washington and Oregon represented approximately 30% of US sales.
1933 Industries’ CEO Chris Rebentisch framed this for investors as California representing a major growth opportunity for the Company and its brand partners, calling the Golden State a “trendsetter” when it comes to cannabis brands. 1933 is positioning itself to gain a significant market share by working with local cultivation partners and by bringing its manufacturing expertise to this competitive market.
“We are developing strategies to compete for market share across the state. We will be offering a diversified portfolio of THC products, encompassing flower and concentrates for both the AMA and Blonde brands, as well as California-compliant CBD products. We have secured a distribution license and we will be expanding our distribution networks for our suite of products, for our licensed partners and for any company that seeks white labelling and distribution into the California market”.
He added that the Company is bringing a diversified portfolio of THC products, including flower and concentrates, to this widely growing market. The strategy behind diversification of products and formats is that it helps to mitigate the risk of consumer and market changes.
“We are already a significant player in the cannabis wellness marketplace with our extensive suite of products and our growing list of key partners,” CEO Rebentisch explained.
“We know that in this industry, quality will prevail and every ingredient that goes into making our products is highly scrutinized for product efficiency, effect and overall consumer experience. Our standards go far beyond what is expected in the industry and being strategically positioned in high growth states such as Nevada, California and Colorado allows us to execute our growth strategy quickly and efficiently. The opportunity to be a one-stop shop for dispensaries with our 100+ SKUs in a variety of product formats to meet the needs for every consumer is exciting, as it gives us the opportunity to take a lead in this market.”
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.