California’s Crucial Role in the Cannabis Retail Market
Robin Lefferts
September 10th, 2018
Exclusive, News, Top Story
When California made adult-use cannabis fully legal, effective January 1, 2018, the state immediately became the world’s largest legal cannabis market. On top of the state’s massive economy, the world’s fifth largest by GDP, California has a huge population with a deeply entrenched cannabis culture. There are currently about 1.25 million medical cannabis patients there, a market that has been developing since 1996 when the state became the first to legalize medical marijuana. Add in the fact that tourists love California, and it is clear that companies looking to establish a foothold in the booming United States cannabis market should probably be doing all they can to succeed in the state.
While there are many public companies with plans to establish operations in California, there are not too many with an established roster of products and distribution networks. One such company is RISE Life Science Corp. (CSE: RLSC). Headquartered in Toronto, and listed in Canada, the company is firmly focused on developing a strong consumer products presence in California before spreading out across North America. RISE has Life Bloom Organics under its umbrella, and is currently launching its Karezza brand in California with a media event September 20th in Hollywood.
The California Opportunity
Various analysts have advanced a wide variety of projections for the size of California’s legal cannabis market. BDS Analytics and Arcview Market Research project $7.7 billion in sales in the year 2021, though the companies recently revised their 2018 projections down due to slower than expected licensing procedures. The University of California Agricultural Issues Center predicts that sales from adult-use cannabis will eventually reach $5 billion/year. No matter how you slice it, the market in the state is very large and growing larger.
Colorado cannabis sales hit $1.5 billion in 2017 (with about 5.6 million residents). An examination of the data by the Denver Post showed that 3 out of the 5 counties with the highest sales per capita were border counties, indicating that visitors from neighboring states may be driving significant sales there. With California already attracting upwards of 270 million tourists annually, the potential for revenue from cannabis tourism is incredibly high. In essence, establishing a brand in California can not only create revenue there, but has the potential to spread brand awareness throughout the country as tourists take home their favorable impressions of products encountered in the state.
RISE Executing on Its Brand Strategy
Rather than growing and selling cannabis flower itself, RISE Life Science has its eyes on the larger premium lifestyle, health and wellness market. Trends in the cannabis industry show a move away from smokable flower toward concentrates, oils, and alternative delivery methods. As cannabis-derived products become more prevalent, the social taboos around utilizing the plant’s active ingredients to enhance one’s health and happiness are stripping away.
The company’s Karezza brand focuses on botanical formulations that support adult sexual health and wellness. Scientifically formulated, the brand is about as far away from underground pot culture as you can get. Eaze Insights shows that in California between 2016 and 2017, Baby Boomer spending on cannabis-related products increased about 19%, and Gen X spending increased about 13%. Women increased spending on cannabis products 20% over the same time period. These important consumer groups often look to cannabis for its therapeutic properties, and they are the target market for Karezza.
Karezza Products on Display
Life Bloom Organics products similarly focus on health and wellness, currently offering nanotized CBD formulations with enhanced bioavailability and no THC aimed at people with sleep, pain, and general wellness issues. The products are currently available in many locations throughout Southern California as well as directly from the company online.
RISE plans to expand product lines over the coming quarters, utilizing and growing its current extensive distribution network consisting of natural health food markets, chiropractic offices, specialty retailers, and cannabis dispensaries. The company prides itself on its point-of-sale marketing expertise and looks to make a lasting impression on both California residents and tourists alike.
Disclaimer
The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: https://cannabisfn.com/legal-disclaimer/
This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.
About Robin Lefferts
Robin Lefferts has been involved in the legal cannabis industry since 2012, sometimes as an active participant and always as an interested observer.
Search CannabisFN
Press Coverage
Psychedelics Index
Top Videos
In addition to his role as Founder and CEO at MAZAKALI, Sumit is a consultant to The Arcview Group and the Managing Partner of Emerald Ventures. A frequent speaker at investment seminars, Sumit acts as a mentor to Arcview and Canopy companies and serves on the Canopy Investment committee as well as the NCIA Finance […]
Matt Hawkins is the founder and managing principal of Cresco Capital Partners, LLC (“Cresco”), a private equity firm focused specifically on investing in the legalized cannabis industry. Since its inception in the summer of 2015, Cresco has made 14 investments out of its first fund and is currently raising this fund, Fund II. Prior to the […]
IONIC BRANDS is a national cannabis holdings company based in Washington, led by a team of successful entrepreneurs.
Network Partners
About CFN Media Group
CFN Enterprises Inc. (OTCQB: CNFN) owns and operates CFN Media Group, the premier agency and financial media network reaching executives, entrepreneurs and consumers worldwide. Through its proprietary content creation, video library, and distribution via www.CannabisFN.com, CFN has built an extensive database of cannabis interest, assisting many of the world’s largest cannabis firms and CBD brands to build awareness and thrive. For more information, please visit www.cfnenterprisesinc.com.
Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: https://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.cannabisfn.com/legal-disclaimer/.
Copyright © Accelerize Inc. · All Rights Reserved · Privacy Policy · Legal Disclaimer
