Gabriella’s Kitchen Is Redefining The Cannabis Health and Wellness Industry
November 12th, 2018
News, Top Story
Gabriella’s Kitchen (CSE: GABY), the award-winning consumer packaged goods company whose array of super-nutritional foods are currently sold in more than 3,400 stores across North America, is launching a revolutionary new line of cannabis infused nutritional edibles. The expansion as well as a number of announced acquisitions has positioned the company on the cutting edge of cannabis infused nutritional edibles and therapeutic products, further accelerating GABY’s mission, “to empower people to live healthy lives without compromise.”
GABY, founded by sisters Gabriella and Margot Micallef, was inspired by Gabriella’s terminal cancer diagnosis. Though Gabriella ultimately passed away from her illness, she beat her 4 month prognosis by an exponential factor of 10 and enjoyed a much higher quality of life than her doctors predicted. According to Margot Micallef, Founder & CEO of GABY, “The experience of Gabriella’s journey with cancer confirmed our views that diet and lifestyle is a real alternative to pharma and often with better results!”
GABY’s passionate mission has been furthered by the launch of its cannabis infused edibles which are now in market in California under the alto™ brand. Uninfused versions of the same alto™ edibles are also available online at www.Gabriellas-kitchen.com. In addition, GABY has another 20 uninfused products in market in California and throughout the US and Canada in thousands of mainstream retailers, creating a fast-track to the mainstream retail market for its soon to be launched Hemp-CBD infused edibles.
Expansion Into Cannabis Infused Edibles & Wellness Products
Given the importance of California as both a cannabis and a wellness market, GABY determined it was crucial to own its infrastructure in California. Therefore, in September, Gabriella’s Kitchen acquired The Oil Plant, Inc. (TOP), the owner of a Type 6 manufacturing license issued by the California Bureau of Cannabis Control (CBCC). In October, GABY announced the acquisition of Sonoma Pacific Distribution, one of California’s leading independently owned cannabis distribution and marketing companies with a distribution and transport license issued by CBCC. With these acquisitions and with GABY’s vast and deep retail and consumer packaged goods experience, GABY has one of the most reliable and fastest go to market strategies of any cannabis company trading today. Uniquely, while others rely on third party relationships, GABY has the advantage of having direct control over the development, manufacturing, distribution and sale of its cannabis products in the world’s most important market.
Through these acquisitions GABY also acquired the benefit of TOP’s best in class cannabis oil extraction technology and TOP’s interest in the market-leading brand of Aunt Zelda’s™ topicals and tinctures. The products are featured in the film Weed the People – a documentary by the renowned film production team of Abby Epstein and Ricki Lake.
Cannabinoids are unique organic compounds commonly found in the cannabis plant. In multiple studies, both cannabidiol (CBD) and tetrahydrocannabinol (THC) have proven to have powerful wellness properties, including pain relief, inflammation relief, sleep enhancements, and general wellness. The combination of GABY’s move into CBD- and THC-infused edibles and lifestyle products, together with its recent acquisitions, brings the necessary expertise, access to capital, and infrastructure necessary to create a category leader in cannabis wellness.
Consumers are flocking to CBD and THC infused products, a market segment that is expected to greatly exceed expenditures for recreational marijuana use. In 2018, just six months after statewide legalization of cannabis for adult use, California consumers spent $1.14 billion on products through 600 licensed cannabis dispensaries. According to Arcview Market Research, the California cannabis industry is predicted to exceed $7.7 billion by 2021– establishing the state as the largest cannabis market in the world.
In addition to the California market GABY has its eyes on the remaining states in the US and on Canada, where its alto™ and Aunt Zelda’s™ products can be sold. According to Cowen & Co., the North American cannabis industry will reach $75 billion by 2030. GABY is positioning itself to participate in this expanded market, and the timing couldn’t be better.
Sophisticated investors are looking beyond the stunning market appreciation of cannabis producers and cultivators to focus on the next wave of cannabis – related startups, namely those industry participants that are downstream of cultivation – manufacturers, distributors and dispensaries.
GABY may have found the recipe to soar in the multi-billion-dollar THC and CBD based healthy edibles and wellness industry. This market segment is rapidly becoming the growth driver in the cannabis industry as well as the trillion-dollar health and wellness sector.
With significant distribution infrastructure already in place, a proven agility to obtain regulatory clearance, and a tasty portfolio of healthy and therapeutic revenue opportunities, GABY is transitioning into a highly focused, vertically integrated edibles and wellness products company.
The Strategy Forward
GABY’s successful acquisition of TOP also brought GABY the benefit of Mara Gordon, the founder of TOP who on closing took on the role of Chief Research Officer at GABY. Ms. Gordon brings to GABY her extensive knowledge of the health attributes associated with cannabis and her expertise in formulations. GABY believes that to be the category leader in cannabis wellness it must also be a thought leader. In her role as Chief Research Officer, Ms. Gordon will continue her research into cannabis wellness and education and will continue her work with physicians and clinicians studying cannabis wellness. She will also continue to speak at medical conferences, before policy committees, at industry events and to consumers and retailers to educate, inform and collaborate on the advancement of cannabis wellness.
GABY is not just well positioned to take advantage of the current market opportunities but is looking beyond the immediate to a time when federal legalization in the US removes the barriers to inter-state commerce. At such time, GABY’s existing infrastructure of major retailers and its distribution networks in both the licensed and unlicensed channels positions the company to rapidly expand into a wide variety of stores across North America with CBD and THC infused products.
Through the first half of 2018 GABY’s revenue rose by 171 percent to approximately $1.2MM, from $450,000 in the first half of 2017. Further growth is expected during the second half of the year following the launch of its alto™ product line as well as from its continuing roll up strategy. TOP’s existing management team projected revenue of US$10 million in 2019, Sonoma is anticipating $7.6 million. With the launch of six cannabis-related products as the foundation of GABY’s continued product development strategy, these unique factors could boost consolidated 2019 annual revenue to ~US$26.7 million (~C$35 million).
Gabriella’s Kitchen (CSE: GABY) has successfully transitioned into one of the only publicly-trading, pure play cannabis edibles and wellness companies listed on the CSE. Investors interested in the intersection between the multibillion-dollar cannabis industry and the trillion-plus dollar wellness industry may want to take a closer look at the company as it gears up to launch additional cannabis infused edibles and wellness products this year while continuing its roll up strategy of acquiring related and complementary companies in this sector.
For more information, visit the company’s website at www.gabriellas-kitchen.com.
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