California’s Crucial Role in the Cannabis Retail Market
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.
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://www.cannabisfn.com/legal-disclaimer/
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