Although the ongoing hype around CBD-infused products may have surpassed the growing national sentiment favoring the legalization of marijuana, the North American cannabis industry is booming. The legal marijuana industry in North America pulled in more than $10 billion in investments in 2018, and that number is expected to surge past $16 billion by the end of this year.
At the core of the industry is California, where close to one-third of all cannabis-related job openings are located, and the primary cultivation and manufacturing of THC products occurs. And the creativity of both CBD and THC-infused products is stirring in the region.
From CBD-infused tinctures and vape pens to THC-infused sodas and non-alcoholic beverages, the industry is appealing to a wide variety of consumer preferences. In the process, the market is continuing to lure more and more conventional brands, who are seeking an ideal entry point into the burgeoning market.
A co-packing, contract manufacturer and distributor for CBD and THC products, the Canadian-based company is rapidly gaining traction among brands seeking to leverage the booming cannabis industry — primarily through its American holdings company, GP Holdings LLC. The firm has its own suite of proprietary technology for infusing CBD and THC into various products, and fuels innovation in the space through its investment accelerator.
With household brands on the precipice of diving into the industry, Growpacker is the heart of the CBD and THC production sector that they seek.
Manufacturing, Distribution, & Accelerators
Growpacker’s primary value proposition draws from its ability to streamline the product launch process for brands that want to take a CBD or THC product to market. Fully regulatory compliant, the firm specializes in the in-house development, quality control testing, and subsequent distribution of products using a turnkey business model.
For interested brands, tapping Growpacker can significantly reduce their overhead costs and expedite the launch of products.
One of the more recent and intriguing aspects of Growpacker’s vision lies in its investment accelerator. The accelerator focuses on working directly with strategic cannabis companies in the industry that are congruent with Growpacker’s vertical integration and help supplement the company’s capacities in product manufacturing and distribution. Either via direct investment (i.e., equity) or preferred partnerships, it is in the immediate interest of many of these startup firms to ingratiate themselves with a leader in the cannabis pipeline of North America.
The investment accelerator is also a complement to Growpacker’s brand incubator and accelerator, announced just prior to the investment accelerator.
The brand incubator and accelerator operates as the fast-tracking branch of market development in California, along with the previously mentioned exchange of equity or partnerships in the accelerator aspect. Brands are granted access to Growpacker’s growing network of resources and relationships in the industry, which serves as an immediate boost to startups or larger brands seeking an optimal entry point into the industry.
Ceria, a THC-infused beer, was the first brand to join the brand incubator and accelerator with Growpacker and is indicative of an emerging trend where larger brands are likely to gravitate towards the firm.
Growpacker’s vertical integration approach also furnishes the company with some unique advantages in manufacturing and distribution. Based on client requests for products and ongoing research and development with infusing products with THC and CBD, Growpacker can glean insights from a multitude of contexts outside of the purview of many other manufacturers in the market.
For example, Growpacker has licensed numerous infusion methods, including water suspendable, zero-separation, and full spectrum. Additionally, the firm can acquire OTC certifications on the viability of their products, affording brands that work with the company to label their products with ailment-specific details such as “anti-anxiety” or “pain relief.”
Streamlining the manufacturing, distribution, and investment/accelerator process for brands is a colossal advantage for brands unaffiliated with the cannabis market to make a profitable entry.
Beverage and food companies are sure to increasingly explore the cannabis market in the US as it continues its parabolic trajectory. With the legalization of marijuana gaining momentum all across the country, and seemingly inevitable in the vast majority of states, it is only a matter of time until household brands dip their toes in the market.
Once that happens, Growpacker will be waiting.