With Strategic Acquisition, Plus Products Expands Capacity & Offering
December 6th, 2018
News, Top Story
Plus Products Inc. (CSE: PLUS), the top edibles brand in California, has announced the acquisition of GOOD CO-OP, a California-based cannabis-infused baked goods brand. Known for its additive and preservative-free bite sized brownies and pumpkin spice goldies, GOOD CO-OP products have been featured in numerous publications including Fortune magazine. For Plus, the acquisition represents a strategic entry into the third largest edibles category, baked goods, after having achieved the top spot in the edibles category with only four full-time offerings. The company also adds an additional 4,800 square feet of manufacturing space and associated equipment in southern California, augmenting its existing 12,000 square foot manufacturing facility.
Earlier this month, Plus Products announced that, based on Q3 2018 retail sales figures confirmed by cannabis market analysts BDS Analytics (bdsanalytics.com) and Headset (headset.io), it is the best-selling cannabis-infused edibles brand in California, the largest legal adult use cannabis market in the world. The new acquisition could enable the company to increase its market share even further. Cannabis extract-based products are the fastest growing segment of the cannabis industry, as customers move away from smoking to alternative delivery options and according to BDS Analytics, baked goods represented 13% of the edibles market in 2018, excluding tinctures.
Mike Appezzato, CEO and Co-Founder of GOOD commented, “Manufacturing consistent cannabis food products at scale is challenging, and few companies do it well. After talking to several companies in the space, it was clear to our team that only PLUS has the operational know-how to help us scale across California and throughout the United States.”
The GOOD management team, consisting of co-founders Pete Cervantes, the head baker with over a decade of experience in food research and development including PepsiCo, and Mike Appezzato, with significant experience in operations from successful technology companies including Optimizely and Salesforce, will be joining PLUS.
Jake Heimark, co-founder and CEO of Plus Products, said,, “We grew PLUS into the top edibles company in California by leading with our product. We have focused on manufacturing consistent, high quality edibles that resonate with consumers (and) the GOOD team has been focused on the same. This acquisition accelerates our time to market in the baked goods category and will help solidify the PLUS leadership position in edibles. We are committed to becoming the largest edibles brand in all legal jurisdictions by continuing to lead with product, and we look forward to Mike, Pete and the GOOD team helping us build toward that vision.”
Plus has agreements with licensed distributors to sell its products to over 200 licensed dispensaries and delivery service customers. California legalized adult recreational use on January 1, 2018 and by April, Plus had already realized $1.4 million in retail sales according to BDS Analytics. The company has secured series B financing sufficient to allow it to expand its operations and as a result, is currently building the largest dedicated cannabis food manufacturing facility in the US, enabling $150M in annual production, with the potential to expand to $450M. It holds the eighth temporary manufacturing license granted in California, and was one of the first to introduce fully compliant products to the state.
The Plus team of experts includes chefs, Ivy League chemists, engineers, food manufacturing experts, machinists, visionaries, and creatives. They work collaboratively to pair high-quality extracts with carefully selected ingredients to create regulation-compliant, dosable and delicious products for all consumers, medicinal and recreational alike. Its executive team has a proven record of savvy forward thinking, and while there are plans for eventual expansion into additional markets, it remains laser focused on captivating the California market first. The acquisition of GOOD CO-OP could certainly advance that goal.
For more information, please visit their website: https://www.plusproducts.com/
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