Green Thumb Industries Joins Cann To Deliver The Fun Without The Extreme High...Or The Hangover

In a recent article, Cann co-founder Jake Bullock spoke with New Cannabis Ventures (NCV) about how Cann’s products are formulated and how he sees the beverages category growing.

For starters, Cann has expanded significantly over the past year and a half; it now has 35 full-time employees across multiple states and has attracted celebrity investors like Gwyneth Paltrow, as well as investors like Green Thumb Industries GTBIF.

Cann Is Targeting a Particular Type of Consumer

GTI An Excellent Investment Partner

Thus far, the company has raised more than $30 million, primarily in equity capital, according to Bullock.

Green Thumb Industries (GTI) partnered with Cann to expand nationally this past March.

"The cannabis beverage category is poised for growth. Consumers are increasingly entering the market seeking alternatives to alcohol with familiar consumption experiences," Green Thumb founder and CEO Ben Kovler said at that time.

"There are a lot of people who want to incorporate cannabis into their lives recreationally without the fear of getting too high," added Cann co-founder Luke Anderson.

However, Anderson recognizes that “the beverages category has not taken off as quickly as expected” and points out that “logistics are an important part of the reason for the slower uptake.”

California is looking good: As the company’s largest market, Bullock sees the opportunity to enter parts of the state that are just now open to allowing dispensary licensing. The company will also continue to explore product innovation and add new markets to its footprint.

The company entered the Illinois market in April through a partnership with GTI, which now manufactures and distributes Cann’s beverages in the state.

Cann is targeting a particular type of consumer whom Bullock refers to as a “healthy hedonist.” 

He explained: “This type of consumer is social and probably drinks alcohol in a social setting but thinks about their health and what they consume This type of consumer may never smoke cannabis and worry about controlling the experience of eating an edible.”

At the moment, Cann is preparing for the holiday season, when the demand for social beverages increases. The company will also be investing in its current platform to grow its brand and move the beverages category forward, noted NCV.

GTI, which reported its financial results for the second quarter on June 30, had revenue growth of 85.4%YoY, to $221.9 million.

Also in June, the Company acquired Liberty Compassion, Inc., a Massachusetts-based medical cannabis cultivator and retailer.

The acquisition adds cultivation and production capacity to the GTI's existing Massachusetts operations, which can only be positive for Cann.

As the owners of Rise dispensaries, GTI provides a great outlet for Cann's beverages where they are now sold at Rise in Illinois.

Bullock said he's hoping to see the relationship grow and expand to more of GTI’s markets.

Image by Ilona Szentivanyi