MJBizMag July 2021 - 52

SCALE
HOW IT
SUITS YOU
Brand Expansion
A
By Bart Schaneman
Manufacturing companies take several paths
when adding new states to the brand portfolio
s marijuana edibles brands
become successful, more
companies are looking to
expand their product lines beyond state
borders. But this is the cannabis industry,
and nothing is as simple as it would be in
mainstream business.
To successfully grow a multistate
business, marijuana edibles brands
must navigate myriad obstacles as they
expand, including:
* Understanding how compliance
requirements and regulations differ
from state to state.
* Finding reliable partners that will
uphold the brand's vision and
standards.
* Identifying which markets will be
lucrative based on criteria such as
population size and competition.
DECIDING WHERE TO GO
Some companies seem to believe any
state where they can sell presents a good
opportunity, while others carefully select
each new market.
Oakland, California-based Kiva
Confections is more in the latter camp.
The company's edibles are sold in about a
half-dozen states beyond California.
Kiva moved into Ohio's medical
marijuana market at the end of 2020.
Co-founder Kristi Knoblich Palmer said
her company prefers to expand to states
that have a large population or patient
pool and will likely impact neighboring
states. Ohio fit that bill.
" Influencer states are the most
interesting to us, " she said, citing New
York and Massachusetts as examples of
52 MJBizMagazine | July 2021
Scott Palmer and Kristi Knoblich Palmer
markets that have large populations and
affect the surrounding regions by drawing
consumers from neighboring states.
Cameron Forni is the founder and
president of Select, the edibles brand
owned by Curaleaf, a Massachusettsbased
cannabis company that has business
licenses in 17 states.
Forni looks at the
following criteria
when deciding
which states
to enter:
* Market size.
* Patient pool.
* Regulations.
Cameron Forni
* Allowable products.
" If you want to be a pioneer in this
industry, you have to stay up-to-date on
each and every one, " he added. " (Pay
attention to) the health association, the
state cannabis industry association, the
regulatory boards. "
Cameron Clarke, co-founder and CEO
at cannabis consumer packaged goods
business Sunderstorm in Los Angeles,
said the company will be expanding its
Kanha line of gummies to Colorado,
Massachusetts, Nevada and Utah.
Clarke agrees that market size is a
key factor when evaluating a potential
new state for its business opportunities.
He prefers to stay away from states that
require vertical licensing, such as Florida.
Western states, meanwhile, tend to be
more business friendly, he said.
Jeremy Goldstein, co-founder and
chief operating officer of Stillwater
Brands, which manufactures a watersoluble
cannabis product in Commerce
City, Colorado,
said the
company's
strategy avoids
expanding to
every available
state.
Stillwater was
founded in 2015
and sought to
build up its portfolio of products and
presence in Colorado to ensure it was
Jeremy Goldstein
rock solid before branching out.
" We've always looked at where the
market will be ultimately and never
operated out of a short-term fear of
missing out, " he added.
Stillwater is moving into Michigan
next but won't be licensing with a
partner. Instead, the company is building
its own production facility.
" We recognized that, at some point
in time, cannabis will be federally legal
MJBizMag July 2021

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