Red White and Bloom CEO Discusses Impact of High Times Deal, Plans Ahead
Red White & Bloom Brands Inc. (OTC:TDRYD) is a multi-state operator with its eyes set on building upon its success in several markets to date.
The company currently operates across four states: Michigan, Illinois, Massachusetts and Florida. RWB has made sizable waves as of late, closing an exclusive licensing rights agreement with High Times Holding Corp. across the aforementioned states, as well as a national CBD brand.
RWB CEO Brad Rogers spoke to Benzinga about the company’s recent activity and future plans.
High Times Elevates Brand Potential
Per the June 2020 deal with High Times, RWB gained exclusive rights to brand dispensaries with the High Times name, as well as produce a line of THC items in Florida, Illinois and Michigan.
The High Times-owned Culture will see a rollout of a nationwide CBD brand as well.
A company spokesperson said that the rebranding of 18 dispensaries is underway, with more to come in time. In time, the company plans to have roughly 75 bannered stores across the three states.
Production of the THC line, ranging from vapes to edibles to flower, is now underway.
The Culture CBD line expects to play a central part of the brand's Granville, Illinois greenhouse, which boasts 3.6 million-square-feet of usable space, and is capable of 600,000 pounds of biomass production each year.
Production is expected to begin with the launch of various Culture-brand SKUs, according to a company response.
Culture aims to sell online and in a wide range of brick and mortar retailers. Pending FDA rulings, big box retailers pose an appealing option that RWB’s facility is already familiar with.
RWB expects to focus on big box retailers as well, pending FDA guidance on consumable CBD products. That said, the company views THC licensing as having the highest potential to grow the brand, if RWB is permitted to allot 210,000-square-feet of canopy of space to its production.
Meanwhile, licensing of the High Times name should appeal to smaller retailers struggling to compete with MSOs, according to Rogers.
Noting the companies Illinois facility and RWB’s active THC licensing exploration, Rogers said the company makes an appealing brand for many retailers looking to compete.
“We feel we’re a very attractive suitor to partner with smaller players, bringing them into our family, in order to help them get to efficient scale, and provide the resources to truly compete and win,” Rogers said.
Three States in the Spotlight
The three states in the High Times deal serve as the focal points of the brand at this time, according to a company rep.
In Michigan, RWB, through its investee, has 18 stores which are either open or ready-to-open, according to the company.
The company, just saw its third grow in the state come online, a large-scale outdoor grow.
A fourth site, the largest in the company’s portfolio, is slated for a Q4 2020 opening.
In Illinois, the company intends to develop retail assets and distribute its branded products and in-licensed brands across the country.
As for Florida, RWB sees opportunity in appealing to a tuck-in acquisition that would benefit from their scale, efficiency and branding rights.
With the company backed by experience in the Canadian and Amercian cannabis markets, RWB believes it can show the market it is a consistent brand that reaches its projections.
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