The opening of California’s recreational cannabis market is right around the corner and many investors are looking for ways to capitalize on this opportunity.
When Colorado legalized recreational cannabis, edibles became the most desired consumer product on the market. While we expected edibles to be a significant portion of the legal cannabis market, we underestimated the extent of market share they would take.
One of the interesting statistics we found was related to gummy candies being the top seller in Colorado’s edibles market in 2016. According to BDS Analytics, gummy candies accounted for 26% of the edibles market for sales in Colorado.
Colorado has not been the only state to see incredible demand for cannabis-infused edible products. According to data from Headset Inc., edibles have seen an 121% increase in sales over the past year in Washington state.
Edible products are becoming big business…
California Edibles Market: A Massive Opportunity
We expect California’s cannabis-infused edibles market to look like what we saw in Colorado, but on a much larger scale. After conducting due diligence on companies that will benefit from the legalization of recreational cannabis in California, we identified a company with the potential to be a major winner.
The company, Plus Products, is a cannabis-infused product manufacturer in California which has seen incredible demand for its products. Plus initially came onto the market with a cannabis infused gum and has since expanded its product line to include gummies.
Plus has seen amazing demand for its gummy products and has secured a new facility and state-of-the-art manufacturing equipment to increase production capacity. We are favorable on this move as the company will be able to fund this project with the proceeds from a recent offering.
Plus Products: Possesses the Right Traits
When it comes to investing in cannabis businesses, it all starts with the management team and Plus is led by a team that has a proven track record of success. The company has made a few strategic additions to its board of directors and we believe this positions the edibles manufacturer to succeed.
Plus has plans to go public in the first quarter of 2018 and we believe that investors need to keep an eye on this opportunity. The offering is well timed as it will take place shortly after California’s recreational market opens.