Ron Strider
Well-Known Member
Organa Brands is setting itself up to be the best and biggest nation-wide cannabis company. This multi-brand company posts top line sales of over $100 million and sells a product every nine seconds. Their busy lab creates over 1 million grams of concentrated cannabis oil a year and they buy tons of marijuana each year. When comparing the price of crude oil to cannabis oil, a barrel of crude oil currently sells for $46, while that same barrel filled with cannabis oil would retail for $15.9 million.
This privately owned company is focused on market domination and has already planted its flag in several states. They are the only cannabis company that sells products in 10 states. Organa Brands plan is to secure their place in the cannabis market before big tobacco or alcohol tries to muscle in and they are staking their territory aggressively. They have achieved this success by staying targeted and making sure the customer keeps coming back.
Cofounder Jeremy Heidl said, "Each decision is made with the idea that it must be two degrees from converting." Meaning advertising plans, sponsorships and promotions are decided based on whether it is two steps away from getting a customer to buy their product. Sponsoring a concert at Red Rocks in Denver may be very splashy, but does it really get someone to buy their vape pen? Instead they pivoted towards things like pop-up displays at dispensaries and creating a rewards app for customers. They educate and incentivize bud tenders about their products as they recognize the importance of these key dispensary workers. The result is that their products are the No. 1 seller at many dispensaries beating out competitors like Evo Vapor according to BDS Analytics,
Some may think that Organa Brands was just lucky to ride the green rush as Colorado legalized the recreational market. As if the success was an easy ride blessed with luck and good timing, but that wasn't the case and it almost didn't happen. The flagship brand, O.penVAPE had gone all in on cannabis oil and the vape delivery at the beginning of the legalization era in Colorado. Vape sales started well and then dropped as consumers turned to flower as their preferred cannabis option. This shift caused the company's founders to wonder if they had made the wrong choice. They really believed that consumers would choose vaping over smoking. How could they have gotten this so wrong?
But they didn't get it wrong and consumers started to reverse course and now flower sales are dropping as cannabis oil sales rise. By sticking with its core product, O.penVAPE was able to capitalize on the consumer's decision to migrate to cannabis oil. Convenience and discretion proved to be the turning point for the cannabis customer.
Recreational users found that with flower they couldn't light up anywhere they wanted. However, a vape pen could be tossed in a purse or shirt pocket. Consumers can take a puff outside a restaurant and no one knows if it is an e-cigarette or marijuana. Comedian and actress Sarah Silverman even walked the Oscar's red carpet happily puffing away on an O.penVAPE. This convenient and portable way to smoke cannabis is winning over the consumers.
The company though had plans on being more than just a vape pen business in Colorado and that brought a new set of challenges. Expansion in the cannabis industry is a difficult puzzle to solve because of the various state laws, but Organa Brands, the umbrella company for O.penVAPE has managed to unlock the code. They own a business in both Colorado and California and license or have a minority ownership in another nine states with seven more planned for 2017 and 2018.They are the only cannabis company selling products in 10 states and are in 1,200 dispensaries.
In addition to O.penVAPE, Organa Brands also owns Bakked, a company that specializes in dabbing products, Magic Buzz, a cannabis beverage product, and gummies by District Edibles. They also have a separate company NCG that handles packaging and doesn't "touch the plant" at all, which helps with banking. They are organically funded. "We said no to capital for years," said President Chris Driessen. "But we will close on our first round of funding in the third quarter."
The company has 96 employees (250 if you count licensees) and pays generous salaries with benefits that include healthcare and a 401K. Turnover is low and the ratio of female employees was impressive. The company is run with the mentality of a tech startup, not a slacker cannabis brand. Driessen who gets to the office most days at 7am said employees that think they can roll in at 11 and get stoned all day are not at the right place. Heidl, the chief operating officer and head of product development is on the road 200 days a year and on track to log 300,000 miles of travel by the end of the year. Public relations head Jackson Tilley said they take "work-ations" because they have little time for vacations.
"It's a monster undertaking to co-exist in different states," said Driessen. "There are cultural differences and packaging differences." Organa Brands prides itself on its slick packaging, but in some states it all gets thrown out. For example, Connecticut insists on all white containers. Driessen was partly brought into the company to create a structure that could grow the business efficiently. He knew scaling up is one of the biggest challenges a company can face. The other co-founder Ralph Morgan oversees the lab and science side of the business. He is often called the moral compass by the other top executives.
Morgan is responsible for creating the company's signature vape technology, which was more expensive to produce, but safer for medical patients. The same process was applied to adult use marijuana. O.penVAPE differentiates its cannabis oil by producing specific strains or creating its own hybrid formulas. They've opted to not go the direction of mood based vaping like some newer entrants that sell cannabis oil with names like "Relax" or "Hustle." They also do a brisk business in private labeling vape pens. For example, a farm or a dispensary could have O.penVAPE create a vape pen specific to their brand.
As a result of getting their products into 1,200 dispensaries, Organa Brands has created a tight distribution company and for a hefty price, they will add another company's product into the distribution model. Some in the cannabis industry disdain Organa's attempts to run its business like a mainstream corporation with plans to grow across the country and not remain "alternative." To the critics, Dreissen says, "I don't see how we're selling out. We still sell cannabis. It's still federally illegal. Besides, at a certain point you have to grow up as an industry and run a company professionally."
Organa is keeping a close watch on Washington and while they would've have preferred an administration with a less aggressive stance, they also feel it is working to their advantage. With cannabis still federally illegal, big tobacco and big alcohol are remaining on the sidelines and that gives Organa plenty of time to get those flags planted.
News Moderator: Ron Strider 420 MAGAZINE ®
Full Article: Meet Organa, The Company That Wants To Dominate The U.S. Cannabis Market
Author: Debra Borchardt
Contact: Contact Information
Photo Credit: Organa Labs
Website: {{meta.title}}
This privately owned company is focused on market domination and has already planted its flag in several states. They are the only cannabis company that sells products in 10 states. Organa Brands plan is to secure their place in the cannabis market before big tobacco or alcohol tries to muscle in and they are staking their territory aggressively. They have achieved this success by staying targeted and making sure the customer keeps coming back.
Cofounder Jeremy Heidl said, "Each decision is made with the idea that it must be two degrees from converting." Meaning advertising plans, sponsorships and promotions are decided based on whether it is two steps away from getting a customer to buy their product. Sponsoring a concert at Red Rocks in Denver may be very splashy, but does it really get someone to buy their vape pen? Instead they pivoted towards things like pop-up displays at dispensaries and creating a rewards app for customers. They educate and incentivize bud tenders about their products as they recognize the importance of these key dispensary workers. The result is that their products are the No. 1 seller at many dispensaries beating out competitors like Evo Vapor according to BDS Analytics,
Some may think that Organa Brands was just lucky to ride the green rush as Colorado legalized the recreational market. As if the success was an easy ride blessed with luck and good timing, but that wasn't the case and it almost didn't happen. The flagship brand, O.penVAPE had gone all in on cannabis oil and the vape delivery at the beginning of the legalization era in Colorado. Vape sales started well and then dropped as consumers turned to flower as their preferred cannabis option. This shift caused the company's founders to wonder if they had made the wrong choice. They really believed that consumers would choose vaping over smoking. How could they have gotten this so wrong?
But they didn't get it wrong and consumers started to reverse course and now flower sales are dropping as cannabis oil sales rise. By sticking with its core product, O.penVAPE was able to capitalize on the consumer's decision to migrate to cannabis oil. Convenience and discretion proved to be the turning point for the cannabis customer.
Recreational users found that with flower they couldn't light up anywhere they wanted. However, a vape pen could be tossed in a purse or shirt pocket. Consumers can take a puff outside a restaurant and no one knows if it is an e-cigarette or marijuana. Comedian and actress Sarah Silverman even walked the Oscar's red carpet happily puffing away on an O.penVAPE. This convenient and portable way to smoke cannabis is winning over the consumers.
The company though had plans on being more than just a vape pen business in Colorado and that brought a new set of challenges. Expansion in the cannabis industry is a difficult puzzle to solve because of the various state laws, but Organa Brands, the umbrella company for O.penVAPE has managed to unlock the code. They own a business in both Colorado and California and license or have a minority ownership in another nine states with seven more planned for 2017 and 2018.They are the only cannabis company selling products in 10 states and are in 1,200 dispensaries.
In addition to O.penVAPE, Organa Brands also owns Bakked, a company that specializes in dabbing products, Magic Buzz, a cannabis beverage product, and gummies by District Edibles. They also have a separate company NCG that handles packaging and doesn't "touch the plant" at all, which helps with banking. They are organically funded. "We said no to capital for years," said President Chris Driessen. "But we will close on our first round of funding in the third quarter."
The company has 96 employees (250 if you count licensees) and pays generous salaries with benefits that include healthcare and a 401K. Turnover is low and the ratio of female employees was impressive. The company is run with the mentality of a tech startup, not a slacker cannabis brand. Driessen who gets to the office most days at 7am said employees that think they can roll in at 11 and get stoned all day are not at the right place. Heidl, the chief operating officer and head of product development is on the road 200 days a year and on track to log 300,000 miles of travel by the end of the year. Public relations head Jackson Tilley said they take "work-ations" because they have little time for vacations.
"It's a monster undertaking to co-exist in different states," said Driessen. "There are cultural differences and packaging differences." Organa Brands prides itself on its slick packaging, but in some states it all gets thrown out. For example, Connecticut insists on all white containers. Driessen was partly brought into the company to create a structure that could grow the business efficiently. He knew scaling up is one of the biggest challenges a company can face. The other co-founder Ralph Morgan oversees the lab and science side of the business. He is often called the moral compass by the other top executives.
Morgan is responsible for creating the company's signature vape technology, which was more expensive to produce, but safer for medical patients. The same process was applied to adult use marijuana. O.penVAPE differentiates its cannabis oil by producing specific strains or creating its own hybrid formulas. They've opted to not go the direction of mood based vaping like some newer entrants that sell cannabis oil with names like "Relax" or "Hustle." They also do a brisk business in private labeling vape pens. For example, a farm or a dispensary could have O.penVAPE create a vape pen specific to their brand.
As a result of getting their products into 1,200 dispensaries, Organa Brands has created a tight distribution company and for a hefty price, they will add another company's product into the distribution model. Some in the cannabis industry disdain Organa's attempts to run its business like a mainstream corporation with plans to grow across the country and not remain "alternative." To the critics, Dreissen says, "I don't see how we're selling out. We still sell cannabis. It's still federally illegal. Besides, at a certain point you have to grow up as an industry and run a company professionally."
Organa is keeping a close watch on Washington and while they would've have preferred an administration with a less aggressive stance, they also feel it is working to their advantage. With cannabis still federally illegal, big tobacco and big alcohol are remaining on the sidelines and that gives Organa plenty of time to get those flags planted.
News Moderator: Ron Strider 420 MAGAZINE ®
Full Article: Meet Organa, The Company That Wants To Dominate The U.S. Cannabis Market
Author: Debra Borchardt
Contact: Contact Information
Photo Credit: Organa Labs
Website: {{meta.title}}
