Midterm elections in the U.S. added another state (Michigan) where recreational marijuana is legal and two more states (Utah and Missouri) where medical use of the plant is permitted, bringing the totals to 10 and 33, respectively, along with the District of Columbia (both recreational and medicinal allowed). The growing trend toward legalization underscores Grand View Research predicting the U.S. legal marijuana market growing at a stunning 24.9% compound annual growth rate from 2017 to 2025 as part of a global market reaching $146.4 billion.
That means growth opportunities abound and building brand recognition is critical to capture market share. Plus Products Inc. (CSE: PLUS) epitomizes this model, saying Wednesday morning that retail data from both BDS Analytics and Headset shows the company’s eponymous brand (PLUS™) was the best-selling cannabis-infused edibles brand in California during the third quarter.
That’s an impressive accomplishment for Plus considering if California were a country, it would have the fifth largest GDP in the world and the fact that the state’s cannabis market is forecast by Arcview Market Research and BDS Analytics to exceed $5.1 billion in 2019.
To take the top spot, Plus unit sales for edibles surged 97 percent from the second to the third quarter, resulting in the company improving from its previous position as #4 in retail value of sales. Pacing the advance were PLUS™ Sour Watermelon Gummies and PLUS™ Blackberry & Lemon Gummies, which ranked the #1 and #2 best-selling branded products, respectively, across all categories in California, including flower, vaporizers, edibles, and topicals.
Over the last year, quarterly unit sales for PLUS™ products have risen from 58,200 to nearly 462,000. With that, the Plus now commands a 9.9% branded edibles dollar market share in the state.
The San Mateo, California-based company’s gummie product lineup also includes Pineapple & Coconut, Sour Blueberry, Rainbow Sorbet and – in limited fashion for the holiday season – Cranberry Shortbread.
“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,” said Plus CEO Jake Heimark in today’s news release. Heimark added that his company is looking to broaden its geographic reach while remaining firmly committed to offering products that deliver consistent experiences in delicious flavors.
The company is garnering much attention as an evolving growth story in the legal marijuana space, coming public on October 26th with the successful completion of a CDN$20.0 million initial public offering. Shares have doubled from the CDN$3.25 IPO price in just three weeks.
Disclaimer: Nothing in this article should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this article is not provided to any individual with a view toward their individual circumstances. Baystreet.ca has been paid a fee of twenty thousand dollars by PLUS Products for advertising. Baystreet.ca also holds shares in PLUS Products. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this article as the basis for any investment decision. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in this article is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.
