When it comes to creating a successful brand, it helps to have as many elements under the same umbrella as possible. 
This is the methodology behind RISE Life Science Corp. (CSE:RLSC, Forum), a Canadian cannabis Company that has cast its net wide to find partners to help launch its family of brands. RISE is developing cannabis formulations for the medical and adult-use markets. In June 2018, it launched its CBD-based sexual wellness brand, Karezza. The following month, it grew its portfolio of CBD products to general wellness with the acquisition of Life Bloom Organics and its channel of distribution in the United States, specifically California.
RISE currently operates in the greater Los Angeles market with products on shelves throughout the city. It just opened in San Francisco, including the Bay area, and is looking to expand it's retail presence to Orange County and San Diego by the end of the year. In addition to it's growing online sales through the RISE e-commerce platform, brick and mortar retailers provide substantial growth opportunities for RISE brands and their products, most significantly through tourism. RISE is set to capitalize on the power of California's massive tourism industry to elevate its brand awareness. In 2016, California's tourism body reported 47.3 million visitors to L.A. County in 2016, which was the seventh-consecutive year the state’s travel industry saw growth.
Stockhouse Editorial met up with RISE President Ryan Rocca to talk about its retail tactics for cannabis and to learn more about how the Company is scaling its pilot program across the U.S. and Canada.
Thanks for taking time to speak with us. To start, could you highlight your relationship with California-based marketing agency Cultivate Kind and its role within the Company’s operations?
There was so much synergy between what we do with our agency and what their thinking was, that we decided that if we were going to create a suite of products, we were going to have an in-house marketing team that is actually marketing our own products. There is no real third-party involvement, so we can really control the product and the activation of the experience.
We have had the luxury to go in and work with the retail buyers and owners and really find out what they need. We’ve been building products that really make sense for the retailer, as well as the consumer.
Life Bloom Organics was brought on board around the same time, what is their story and what do they bring to table for RISE?
Life Bloom Organics was just starting to penetrate the CA marketplace – specifically in Los Angeles – and we saw that there was a need for a Nano water-based oral spray. Before Life Bloom, consumers really only had oils and gelcaps at the time; we actually worked with many of the retail stores and met with local wellness shop owners to confirm what the market needed, and we developed two nanotized oral spray products in response. The current portfolio has a wellness formulation and a sleep formulation, which has become our top seller. Life Bloom Organics was already in over 75 retail locations, and we felt that following up Life Bloom with the Karezza Sexual Wellness formulations would be a great fit at retail – we could seed and sell in seamlessly to those retail outlets so the synergy and fit was there. We use Life Bloom’s proprietary Nano CBD manufacturing process for Karezza products as well, which combined with our retail network has been a boon to the RISE portfolio. Now as a company we are set up to become the best-in-class brand house that focuses on the science behind the products as well as the manufacturing, sales and distribution, so we are a complete in-house vertical.
The basis of RISE’s oral spray is a proprietary nano-CBD formula. With the Karezza sexual product line, the Company took this nanotechnology and added traditional arousal botanicals for Men’s Daily, Women’s Daily and In the Moment products, how do these products differ?
The Karezza line is different because we have two products (Men’s and Women’s Daily) that work as a daily supplement to support your overall sexual health, just like you’d take a daily vitamin. When you want to set the mood for arousal, you use our In The Moment product to accelerate the existing CBD in your system. So, they ideally act together to create a strong foundation and then build on that in the moment.
As far as the nanotechnology goes, we use a proprietary method that uses water in place of alcohol. Our system nanotizes the spray to increase the overall bioavailability of the CBD and the other active ingredients. This, combined with the intra-oral delivery method (which means under the tongue), allows for increased bioavailability, meaning you get the most out of the CBD in every spray. We’re constantly seeking ways to innovate and optimize, while giving our consumers a product they value.
What does RISE management look for when making a decision to make an acquisition to strengthen its organization?
Currently we are looking for reach and expansion to really grow our footprint, so that we can become the nationally trusted name making the best-in-class brands and also educating the consumers out there. So we look for a key partnership with distribution capabilities, a product line that can live in mass retail channels and also potentially aligning with a CA licensed THC organization. We also feel having an ownable retail component is key, so will be looking into those opportunities. We are looking to control our own hemp supply as well, so are in talks with a few of our suppliers and farms about partnerships. Depending on the product suite and what we plan to roll out next, we will also be looking into partnerships with companies that can fast-track innovation and future products for us to bring to market.
Can you detail for investors how you apply proven retail tactics to cannabis in California?
We don’t “hard sell” our products – we have taken the time to develop something that people really want. The current average consumer is aware, but not very educated, so we feel that going into retail and the other places that consumers live, work and play is key. Our sales and marketing tactics connect with and educate the consumers on hemp, CBD and THC and all the differences, along with the various types of delivery systems, and really hone in on the “what’s good for me?”
conversation – this is where we are really seeing traction. Retail and consumers alike value seeing brands being supported and out there with a real A&M plan, not just pushing distro and units out. It’s more taking that “craft” approach, doing it right from the ground up, and showing our customers and retailers that we care. We support our brands and products, and put a personal touch to all consumer and retail engagements.
In this industry, each city or sub-region of each state has its own specific regulations, so we make sure we are always following all guidelines and protocol. It’s imperative that we have our reps on the ground – they become the experts in the market with their ear on the ground. They work closely with retailers to assist them with how to sell and merchandise, so their experience working with us is an ideal combination of our full service, big-brand feel and our boutique suite of products.
RISE is using California as a pilot program; how will the Company scale this operation across the United States and Canada?
We are in the largest and most difficult market now and having wins, so the California program is the blueprint to follow. The plan is to scale and open new markets and territories by placing reps in market for all intel, then we will seed the marketplace starting at retail and touching key local influencers. We feel the hyper-local focus and approach is best to really build brand awareness, evaluate what the local customer wants, and then we can scale. Each market and region is different with different demographics and we will build out a custom plan to fit to what’s needed in that market.
Distribution is key and a partnership to really scale to the national market after our pilot program would be critical. Online sales and direct-to-consumer is an increasingly large focus as well and we will be working on that to make it easy for the consumer to purchase.
We are planning to work on exclusive partnerships with larger retailers that have a national footprint, so that could become very attractive.
How do the differences in legality affect how the program will be executed state-to-state and in Canada?
Each region is different, so we stay very close to all local and state regulations. We are very nimble and really micro-batch things so that we are not sitting on tons of product or packaging that might have to change.
In terms of products, anything new coming down the pipeline that you would like to share?
We do have a new suite of products in development with specific SKUs designed for Karezza and Life Bloom Organics. We are looking into CBD bath bombs/soaks, cosmetics, salves and massage-type applications… all part of the plan to continue filling the gaps in the market!
FULL DISCLOSURE: RISE Life Science Corp. is a paid client of Stockhouse Publishing.