Rubicon Organics (ROMJ.C) is partnering with a major California-based marijuana brand to stock the shelves of Washington state with delicious cannabis strains.
The agreement is part of a broad push by Rubicon to expand its presence in the cannabis-friendly west coast.
Cookies deal
In an official Wednesday press release, Rubicon Organics announced it has reached a partnership deal with the California-based “Cookies” brand to license the leading edibles line in the state of Washington.
The partnership means that Cookies cannabis strains will be grown at Rubicon’s massive 40,000 square foot Washington greenhouse. They will then be packaged under the Cookies label and sold locally.
The deal allows Rubicon to bring its proprietary cultivation methods to an established cannabis company that is globally renowned.
Jesse McConnell, Rubicon’s founder and CEO, said the partnership reflects his company’s growing status as a leading cannabis cultivator:
“The fact that Cookies – one of the top brands in California – has chosen Rubicon Organics to license its highly coveted cannabis strains is a testament to the strong commercial appeal of Rubicon’s unique cultivation methods.”
He added:
“Our proprietary cultivation methodologies will enable the fullest expression of Cookies’ cannabis genetics and we are looking forward to working alongside the Cookies team to spread their iconic brand across Washington State.”
Cookies has already amassed over 50 cannabis varieties and product lines that are recognized across the globe. The company has three stores in the state of California.
The brand was founded seven years ago by Bay Area rapper Berner, who just released a new music video.
Berner’s popularity in the Bay Area has allowed the Cookies brand to expand into streetwear and other cool accessories. If you’re looking for pot leaf boxer briefs, Cookies has got you covered:
Organic cannabis in Washington: getting high with a cause
What do you get when you combine a highly educated cannabis market with a company pioneering organic production? We don’t know. But it’s probably something really good.
Washington legalized recreational weed all the way back in 2012, becoming the first U.S. state to do so. Clearly, we are looking at an established market – and one that has already topped $1 billion in sales annually.
In fact, marijuana sales in the state is expected to top U.S.$1.6 billion this year, according to data provider Statista. Conservative estimates put state sales at U.S.$1.76 billion annually by 2025.
In 2017, U.S. consumer demand for organic food could be as high US$45 billion, according to the World of Organic Culture publication. U.S. retail organic food sales increased 6.4% in 2017.
Getting data for the state of Washington was kind of tricky, but a look at the state’s organic farm area clearly shows that demand is rising:
And then there’s this chart:
Kind of dated, we know, but Washington state was the second largest consumer of organic foods in the country back in 2014. The 2016 data set peg Washington in third spot behind Pennsylvania, a state with five million more people.
Clearly, Washington state is the perfect launching pad for organic cannabis producers like Rubicon.
As we reported two weeks ago, Rubicon has built its enterprise on the mission statement that the future is organic. It has already obtained 165,000 square feet of greenhouse space devoted solely to the production organic cannabis.
Consumers are also willing to spend more on organic products, a trend that is likely to hold true for cannabis as well. (Imagine getting high for an even higher cause.)
Big players like Green Organic Dutchman (TGOD.T) are also rushing to fill the organic cannabis market. Indeed, the future is definitely organic for an industry that will quickly lose its au naturel image once mass production becomes a reality.
Full disclosure: Rubicon Organics was an Equity.Guru marketing client, some EG staff own stock.
