1933 Industries Inc (CSE:TGIF) (OTCMKTS:TGIFF) is moving westward into the most populous US state with a new manufacturing and cultivation operation in California, the company announced Tuesday.
Vancouver-based 1933 Industries said it is poised to begin manufacturing its line of proprietary CBD wellness products for sale in California dispensaries.
The company is also debuting its Alternative Medicine Association-branded THC products in the Golden State.
The move comes at a time when California’s cannabis sales are reported to grow to US$7.2 billion by 2024, according to data provided by 1933. Pot sales in the state represent around 24% of legal cannabis sales in the US, a US$2.5 billion figure. California’s market share is nearly equal to the combined sales of the next three largest cannabis markets of Colorado, Washington and Oregon.
California represents a growth opportunity for 1933 Industries and its brand partners, according to the firm's CEO Chris Rebentisch.
“The Golden State is a trendsetter when it comes to cannabis brands and we are positioning ourselves to gain market share by working with our local cultivation partners and by bringing our manufacturing expertise to this competitive market,” Rebentisch said in a statement.
1933 will be offering a diversified portfolio of THC products, encompassing flower and concentrates for both the AMA and Blonde brands, as well as California-compliant CBD products, according to Rebentisch.
“We have secured a distribution license and we will be expanding our distribution networks for our suite of products, for our licensed partners and for any company that seeks white labelling and distribution into the California market.”
The firm’s base in California comes with 10,000-square feet of cultivation space, with an additional 10,000 square feet of shared manufacturing and distribution space. The facility, located in Greater Los Angeles, will serve as 1933’s main distribution hub.
1933 said its CannaHemp products will be available later this month throughout California dispensaries. The company anticipates its first harvest from the California facility during the first week of February, with a second harvest planned for the following week. Monthly harvests are expected to yield around 100 pounds of flower.
1933’s CEO Rebentisch said that product diversification will help mitigate the risk of consumer and market changes.
“We know that in this industry, quality will prevail and every ingredient that goes into making our products is highly scrutinized for product efficiency, effect and overall consumer experience,” Rebentisch said.
“The opportunity to be a one-stop shop for dispensaries with our 100+ SKUs in a variety of product formats to meet the needs for every consumer is exciting, as it gives us the opportunity to take a lead in this market.”
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