California’s Biggest Cannabis Gummy Player Makes Strategic Distribution Move, Expects Expanded Retail Access for Best-Selling Products
December 18th, 2019
App, Exclusive, News, Top Story
Marijuana is legal in 33 states in some form and more than a dozen countries, but the one market everyone wants a piece of is California. With 2019 legal cannabis sales around $3.1 billion, it’s the biggest market in the world with plenty of upside to sell to the state’s 40 million citizens and hundreds of millions of visitors every year.
When it comes to THC and CBD gummies, the king of the California market is San Mateo-based Plus Products (CSE: PLUS) (OTCQX: PLPRF). Measured by dollar of retail sales, the hemp and cannabis food company holds the position as the largest brand in California for gummy sales over the last twelve months.
Plus achieved this sales lead while being available in 360 licensed dispensaries in the Golden State, a recent shift in distribution partners put the company in position to quickly grow that number moving forward.
On to Bigger Distributors
In a bid to get its best-selling products “on every shelf at an affordable price,” Plus has replaced its previous distribution partner, Calyx Brands, with the supply chain expert HERBL Distribution Solutions. HERBL distributes cannabis goods to more than 600 licensed retailers in California, giving PLUS access to open over 240 accounts they were not previously distributing to.
“[HERBL’s] substantial market reach and world class management team give us confidence that they will help PLUS further solidify our position as the largest cannabis-infused gummies brand in California,” said Plus CEO Jake Heimark in a statement on the new distribution agreement.
Plus’ sales team is working with Calyx and HERBL to ensure a smooth transition of existing customers and inventory into the new arrangement – and potentially some new cost-saving synergies – while moving forward to land new accounts.
Gummies Are Hot
There is no shortage of options for consumers of cannabis ingestibles, but people overwhelmingly turn to gummies. According to the market researchers at BDS Analytics, 17 of the top 20 selling edible products in California, Colorado and Oregon were gummies during the first four months of 2019. During that one-third of the year, gummies sales in those three states totaled $115 million, representing nearly 40 percent of all ingestible dollar sales.
Equally impressive, ingestible sales as a group were up 37 percent during the same period at the start of the year compared to the same span in 2018.
To that point, consumer trends have changed in recent years. Less than five years ago, cannabis-infused chocolate bars were outselling gummies, but now gummies outsell other products, like chocolates, tinctures and beverages, by at least two-fold.
The popularity is owed to several factors, including precise dosing of gummies, wide flavor selection and the discrete nature in which they can be transported and consumed.
Against this backdrop, it is impressive what Plus is doing. “Plus uplift,” which contains 5mg THC and <0.1mg CBD in each gummy, has held the top spot for gummy sales in California for five straight quarters. It outsells the next best-selling non-PLUS gummy 2:1.
The product lines come in an array of flavors including, sour watermelon, sour blueberry, blackberry/lemon, tangerine, concord grape and cucumber lime, as well as orange, black cherry and classic mints.
Bigger Footprint in Cali and More
While Plus and HERBL collaborate to expand distribution in California, Plus is placing products in other states too. Through a partnership with TapRoot Holdings, a vertically integrated Nevada-licensed producer, Plus products were launched into 30 dispensaries in the Nevada market in October. Some of the first gummies introduced were the uplift and unwind brands.
Hemp, a non-intoxicating cousin of cannabis, became federally legal at the start of 2019 via the passage of the 2018 U.S. Farm Bill. That opened up opportunities for interstate commerce of products containing hemp-derived CBD where local jurisdictions also allow hemp goods. Plus has jumped on this emerging market, launching a new line of 100% hemp CBD-infused gummies that are now available in 43 states through the company’s ecommerce website.
The hemp-based CBD products launched with the support of entertainment superstar John Legend and global mattress company Casper Sleep.
CannabisFN.com is not an independent financial investment advisor or broker-dealer. You should always consult with your own independent legal, tax, and/or investment professionals before making any investment decisions. The information provided on https://www.cannabisfn.com(the ‘Site’) is either original financial news or paid advertisements drafted by our in-house team or provided by an affiliate. CannabisFN.com, a financial news media and marketing firm enters into media buys or service agreements with the companies that are the subject of the articles posted on the Site or other editorials for advertising such companies. We are not an independent news media provider. We make no warranty or representation about the information including its completeness, accuracy, truthfulness or reliability and we disclaim, expressly and implicitly, all warranties of any kind, including whether the Information is complete, accurate, truthful, or reliable. As such, your use of the information is at your own risk. Nor do we undertake any obligation to update the items posted. CannabisFN.com received compensation for producing and presenting high quality and sophisticated content on CannabisFN.com along with financial and corporate news.
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.
Follow Us on Social Media
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/.