CFN Media Group (“CFN Media”), the leading agency and financial media network dedicated to the North American cannabis industry, announces the publication of an article covering Plus Products recent partnership and expansion into a new market.
As cannabis companies become more established, many choose to become multi-state operators, with assets and operations in a number of US legal markets.
Most companies have achieved this through acquisitions and strategic partnerships with companies having existing assets and licenses, allowing companies to gain control over cultivation and processing facilities, licensing, and often retail operations and distribution chains, rapidly increasing capacity and augmenting or achieving vertical integration, key benefits of multi-state operations.
As new markets emerge, multi-state operators can build on the lessons learned elsewhere and more easily transition into them.
Up until now, Plus Products (CSE: PLUS) (OTCQX: PLPRF) has operated with a laser focus on California, the world’s single largest adult-use cannabis market = becoming one of the state’s premier edibles brand. PLUS is the state’s top-ranked gummies brand, boasting both the #1 and #2 best-selling cannabis products across all categories.
Following closely on the heels of the nationwide launch of its 100% hemp-derived CBD line in partnership with Casper Sleep and American superstar-philanthropist John Legend, this week the company announced that its best-selling THC-infused gummies are now available in Nevada’s recreational adult use market.
Nevada a Natural Fit
Nevada is a key market for building an internationally-recognized brand and advancing the company’s transition into a multi-state operator.
Nevada legalized cannabis for adult recreational use on January 1, 2017 and, buoyed by a flourishing tourism industry, which attracts over 45 million visitors a year, retail sales quickly exceeded expectations, and are now predicted to surpass $1.2 billion by 2022 according to a report by Arcview Market Research & BDS Analytics. Like California, Nevada’s edible products continue to grow in popularity, growing from 14.5% of recreational sales in Q3 2017 to 18% today according to BDS Analytics.
Taproot Partnership Advances Expansion
The plan for an expansion into Nevada was realized through a partnership with Taproot Holdings Inc, a vertically-integrated cannabis company, which has provided PLUS with space in its licensed facility to produce PLUS’s signature infused gummies.
This model is ideal as it allowed PLUS to quickly and easily deploy its machinery, ingredients and people to ensure its products maintain the consistently high quality standards consumers have come to expect, with commercialization coming just four months after PLUS and Taproot entered into a definitive agreement.
Jake Heimark, co-founder and CEO of Plus said, “Operating in Nevada only four months after signing a definitive agreement with TapRoot is a testament to our commitment to execution in building a national footprint. We have created and commercialized the best-selling gummies brand in California. Now with this expansion, we aim to replicate this successful strategy in Nevada and ensure high-quality cannabis products reach more consumers in the U.S.”