Plus Products (PLUS.C) is a California-based company making cannabis-infused edibles for the medicinal and adult-use recreational markets.
Plus’s dedicated 12,000 sq. ft. cannabis production facility in Adelanto, California is operating under a temporary manufacturing license.
Cannabis edibles are a big deal.
Hundreds of new products are flooding the market in California.
Early data suggests that PLUS is pulling ahead of the pack.
We’ll drill into that data in a moment.
But first – a sample product:
“When night falls and it’s time to unwind, Restore Gummies help bring on the chill,” states Plus, “Precisely dosed at just 4.5 mg of THC and 0.5 mg CBD each, Restore gummies are made from a tasty infusion of carefully dosed cannabis, with kosher ingredients. And at 9:1 THC to CBD per gummy, Restore is all it takes to ease you into evening.”
Full Disclosure:
I barely eat fruit.
I don’t get high.
I’m not Jewish.
But as I contemplate the gustatory, medicinal and psychotropic pleasures of blackberry lemon kosher THC gummies – something wet pools in the corners of my mouth.
If blackberry lemon gummies are too zesty – or not Christian enough – how about the limited edition Cranberry Shortbread cannabis-infused gummies – in stores for the 2018 Holiday season?
“You need to start by making products that improve people’s lives,” stated Jake Heimark, CEO of Plus Products. “Our 2018 ‘Holiday Bliss’ focuses on time spent with family, by combining the flavors of shortbread cookies and cranberry jam.”
On November 14, 2018, Plus Products (PLUS.C) announced that, according to both BDS Analytics and Headset Q3 2018 retail sales data, PLUS is the #1 best-selling cannabis-infused edibles brand in California.
“PLUS Sour Watermelon Gummies and PLUS Blackberry & Lemon Gummies are the #1 and #2 best-selling branded products, respectively, across all categories in California including flower, vaporizers, edibles, and topicals,” stated the BDS report.
BDS Analytics provides businesses with cannabis market intelligence and consumer research. There are some free articles available on the BDS website. PLUS pays a nominal fee to acquire additional data. Both PLUS and BDS confirmed to Equity Guru via telephone – that is the only financial relationship between the two companies.
According to BDS Analytics, PLUS unit sales have grown 97% from Q2 2018 to Q3 2018, improving its edibles market position from #4 to #1 in retail value of sales.
“We are grateful to the California consumers who have made PLUS the leading cannabis product in California, the largest and most competitive cannabis market in the world,” stated Heimark.
“The mighty gummy leads edibles sales in all states,” says BDS, “Nationwide, cannabis consumers have crowned gummies as the king of edibles. With sales of $66.1 million during the period, growth for gummies hit 34% in Colorado compared to last year. Unquestionably, this is the biggest-selling edibles category in the Centennial State, and has been for years. Yet it still achieves huge gains in growth Y-O-Y. And growth was even higher in Oregon, where sales of $28.2 million represented growth of 85%.”
To find out exactly how PLUS products are made, I would probably have to kill someone.
According to corporate literature, the process requires, “thoughtful collaboration” among a team of experts including “Michelin-star chefs, Ivy League Chemists, Food Manufacturing Experts, Engineers, Machinists, Visionaries, Creatives and Strategists”.
A group photo of Plus’s white-lab-coated Magnificent 7 – is so confidence inspiring – so celestial – that I took the liberty of transposing them to the cock-pit of the Starship Enterprise – where the brilliant Mr. Spock contemplates the THC gummy wizards with deep respect.
“If you’re going to spend a year testing what products, branding, and business practices will work in an emerging market,” stated Equity Guru’s Chris Parry about PLUS, “making them work in California is a hell of a way to make your strategy bulletproof.”
When you start from scratch and work your way up to one of the most respected brands in the state, with hundreds of dispensaries taking your product and sales growing month after month, you’re no longer a start-up,” wrote Parry, “Now you’re a growth opportunity.”
Plus began trading on October 29, 2018, with 6,153,847 shares offered at $3.25. The stock has been trading like a champ since then.
“The share of cultivation demand for processing into edibles will grow steadily as the category continues to gain share of consumer spending,” states BDS, “In 2017, 143,902 pounds of raw flower were processed into edibles, up from 36,127 pounds in 2014.”
An estimated 360,844 pounds of raw flower will go into edibles in 2022 – a five-year compound annual growth rate of 20.2%.
Full Disclosure: Plus Products is an Equity Guru marketing client, and we own stock.