You walk into a Chipotle restaurant, famished and thirsty. It’s all you’ve been thinking about since this morning.
“White or brown rice?” The young employee asks, with a smile.
You genuinely can’t wait for the assembly line to be over so you can command in your most confident voice: “And a large Coke Zero, please.”
Customers dig Chipotle’s Coke selection because they get so many options to choose from. Chipotle digs it because the customers dig it. And Coca-Cola Corp. (NYSE: KO) digs it because it means literally no extra work for them, but rather enhanced profits, branding, and an addition to the overall bottom line. They supply the syrup; the machine does the rest.
In this way, the company is able to capitalize on variations in customer preferences without physically having to modify or deal with creating beverage brands. It’s brilliant, and it’s one of the things that has kept Coca Cola ahead of the pack.
We’ve stumbled across a cannabis (thats Wall Street lingo for marijuana) company – a publicly traded company – that is looking to do something similar but for cannabis, edibles, and the marijuana industry as a whole. Now pay attention.
Through distribution partnerships and licensing agreements, MariMed Inc. (OTCQB: MRMD) is contracting with cannabis producers to manufacture and sell premium quality branded products that consumers love– And Investors will too.
In MariMed’s business model, the Company simply provides licensees with the proprietary ingredients, the formulation process, the branded packaging and the specialized machinery to manufacture the products– the licensees provide the cannabis oils according to the product’s required specifications at its facility. Similar to how Coco Cola provides restaurants with equipment and syrup, they just add water, and in the case with MariMed they “just add cannabis!”
Now, you may think that comparing an internationally recognized beverage company to weed could be a bit of a stretch, but consider this:
- According to the most recent research from Ameri Research, the legal marijuana market was worth $14.3 billion in 2016 and is expected to grow to $63.5 billion by the year 2024.
- Further, Pew Research estimates that more than 70 percent of the U.S population supports legalizing cannabis with 73 percent of millenials supporting legalization.
With their product lines Kalm Fusion and Betty’s Eddies already a smash hit, the Company will soon be able to put operations – and thus profits – on cruise control. Some examples of their product line include:
Kalm Corn. “Kalming buttery bliss without the butter.”
It’s all natural, microwavable, and sprinkled with Pink Himalayan salt, known for its mineral and vibrational qualities and lighter sodium content. It’s delicious, affordable, and comes in a pretty good-looking package, to boot.
Kalm Fusion also has a few other branded products under their banner, check them out here.
Betty’s Eddies Berry Bombs
Betty’s Eddies Berry Bombs are the bomb. They feature the same handcrafted goodness of the chews, but in a greater dosage. Made with real cherries, strawberries and blueberries, these treats are infused with naturally extracted THC for a heavenly adventure.
For the full line of Betty’s Eddies have a look at their site here.
Once operations are set up, the initial manufacturing is done under MariMed’s supervision, and over time, the licensed staff is trained and certified by MariMed.
When the products are made and sold the licensee pays MariMed (OTCQB: MRMD) up to a 25% of wholesale as a royalty—which is precisely why it could be a very explosive catalyst as license and royalty fees are highly accretive to the bottom line—very high margin.
Coca Cola was able to scale their business globally and make money and profits for Shareholders by reducing the congestion, overhead, paperwork, and bureaucracy involved in distribution to focus on increasing the bottom line. We see MariMed Inc. doing precisely that, but in an exploding industry.
MariMed (OTCQB MRMD) has lined up, or is in the process of lining up, strategic licensees and manufacturers in state licensed facilities across the Country which could provide a solid distribution network for Kalm Fusion and Betty’s Eddies to hundreds of dispensaries.
This network approach will be a valuable asset of MRMD for not only their current brands but other new and innovative cannabis products they may wish to acquire or develop.
We feel MRMD’s branded edible products could eventually be in the majority of the major cannabis markets based on their initial reception.
We know your mouth could perhaps again be watering, not just at the products listed here, but at the potential for profits that could be seen from the Company’s shares. Take action today before the rest of the street finds out. Added guac doesn’t come cheap.
Image source: Shutterstock
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