Last year Chemistree Technology Inc. (OTCMKTS: CHMJF) entered an agreement to acquire Sugarleaf Farms to acquire rights to its brand beyond Washington State. Chemistree has operations in Washington where it grows its premium flower brand SugarLeaf. The company runs close to 300 lights and flower to come up with a high-quality product for the market.
Expanding the Sugarleaf brand beyond Washington
Recently, the company’s Chief Cannabis Officer, Sheldon Aberman shared insight regarding the company’s operations in the cannabis industry. He indicated that constructing a 128,000 sq. ft. greenhouse facility and a 40,000 sq. ft. manufacturing and distribution structure in Desert Hot Springs California. Chemistree is expanding the Sugarleaf brand to include infused beverages, vape pens, and extracts in the Washington market. There are plans to scale operations of the brand into California once the Desert Hot Springs facilities become operational.
Equally the company has indicated that it has entered an agreement to venture into the New Jersey market. where Chemistree will pursue an application for a vertically integrated processor, manufacturer, and retailer in the state under its new regulation. Aberman confirms that the company will continue expanding this year along the Eastern Seaboard.
Regarding the Sugarleaf brand, the CCO indicated that when the company took over the brand in the Washington market it was already a top brand. It had a massive following and what Chemistree has done is to revitalize growth and take the brand to the next level. The brand is among the premium products available in the state of Washington at all retailers all over.
Chemistree is not just focusing on the dried flower brand but it is also in the process of expanding the Sugarleaf brand in the market. The focus is on bottled beverages, vape pens, and extracts. Aberman confirms that the company is also simultaneously growing the Sugarleaf brand in California through a series of beverages, extracts, and the anticipated premium flower once the Desert Hot Springs facility becomes operational.
Chemistree focusing on the recreational market in California
The focus of the company is in the recreational market and internally Chemistree does not differentiate between medical and adult-use because it is all therapeutic. But the main focus is the recreational market in California.
The Sugarleaf brand products are rich in THC and although the company doesn’t focus on CBD products there are some which are high in CBD. Aberman indicates that consumers are interested in high end dried flower, premium high and exciting recreational experience.
There are many suppliers in the California market, especially unlicensed and black-market suppliers. However, Chemistree doesn’t consider this as a setback to their Sugarleaf brand in the state. The CCO indicates that the market view is relative. There is massive potential in the black and gray markets but there is a paradigm shift as more consumers are coming out to the dispensaries to buy their product.
Aberman affirms that with the Sugarleaf brand entering the California market there are massive opportunities for the company to leverage by providing consumers with premium products.