The California Focus: A Strategy for Growth and Development

Say hello to one of the major players in the oil extraction industry in California: Nutritional High. The cannabis company, headquartered in Toronto, has made headlines this year for its growth and its strategic acquisitions.

Recently, Nutritional High released its most recent cannabis sales report, which indicated that the company’s revenue from cannabis sales rose 147% ($4.1 million reported), compared to Q3 2018. This revenue is greatly attributed to the relationship and acquisition of Calyx, a leading California cannabis distribution company. Boasting a 33% rise in gross profit from Q3 2018 ($0.4 million) Nutritional High is clearly succeeding in its corporate strategy. The company sold $3.7 million of cannabis products with a gross margin of 10%. While this might be less than the 19.6% recorded in Q3 2018, the reduction is attributed to the surge in Calyx’s personnel and direct labor.

Nutritional High and Calyx entered into agreements in March 2018, as a means of Nutritional High building upon its existing distribution infrastructure in California. In April, sales revenue for Calyx surpassed $4.5 million for the fiscal year of 2018. With sales figures like these, there’s no wonder why Calyx’s California-wide distribution strategy has extended beyond 450+ licensed dispensaries, which sell multiple leading market edibles, concentrates and flower brands.

This is just one example of the many things that Nutritional High has up its sleeve, and it’s not stopping there. Enlighten yourself on the recent milestones of one of the biggest oil extraction companies in California by reviewing Nutritional High’s expansion strategy.

What has Nutritional High been up to in 2018?

From the company’s attempts to establish full vertical integration in the blooming Nevada market to securing strategic financing that will enhance its existing cash position, there’s no denying the fact that Nutritional High is truly bulking up its impressive California product portfolio.

Here’s an overview of what the company has been up to recently:

  • This year, Nutritional High has made major progressions with its proprietary Dab Stick technology
  • The company plans to continue to expand its FLÏ brand across the Colorado market
  • In May 2018, Nutritional High and NeutriSci, entered into a binding Memorandum of Understanding to create and distribute sublingual tablets infused with THC and CBD utilizing NeutriSci’s patent pending technology, proprietary ingredients and formulations
  • In May 2018, Nutritional High and Xanthic entered into a binding agreement to produce and distribute Xanthic’s water-soluble cannabis-infused powders in California
  • In July 2018, Nutritional High acquired Pasa Verde. This operator of FLÏ Labs NorCal is a cannabis extraction and manufacturing facility based in Sacramento, California
  • In September 2018, Nutritional High acquired 75% of Nevada based Green Therapeutics
  • In November, Nutritional High entered into an agreement to purchase assets and patent licensing from JMEDS – a California-based leader in “micro dosed” infused products.
  • The company also began broadening its west coast manufacturing reach by kick-starting production in its La Pine facility in Oregon

 

Nutritional High’s Expansion Strategy Overview

Nutritional High sets a superior example for companies who wish to amplify their brands through acquisitions. By focusing on the strategic acquisitions of brands and businesses that are synergistic with existing assets, Nutritional High is able to successfully enhance the visibility of an existing brand portfolio.

By pursuing license applications, the company is presenting brands with an opportunity to dominate their niche in jurisdictions that legalize cannabis for medical or adult recreational use. Nutritional High’s expansion strategy doesn’t stop there. They pride themselves on pursuing co-investment and joint-venture partnerships to establish a firm foothold in fresh markets.

Nutritional High’s Marketing Strategy Overview

When it comes to Nutritional High’s marketing strategy, they have effectively combined a myriad of products, distribution channels, branding strategy, and promotions to focus on the highest-margin segments of the industry. The company prides themselves on manufacturing only the highest quality cannabis oil. This high quality oil forms the basis of the superior standard that Nutritional High strives to maintain with its entire portfolio of extract and infused products.

Continuous innovation through product acquisitions and developments has enabled Nutritional High to form a robust brand portfolio. Through compliant promotion strategies, IP holder partnerships and acquisitions of well-known brands, Nutritional High has the utmost potential in successfully cultivating key retail-channel relationships with wholesale buyers, sourcing Contract Manufacturing Opportunities (CMOs) to utilize idle manufacturing capacity, and focusing on compliant promotion.

Nutritional High’s Proprietary Approach

Establishing MIPs operations via a proprietary approach has made it possible for Nutritional High to expand its reach beyond the borders of California. By using short-path distillation techniques and VTA scale machinery to ensure the final product is clean, consistent and potent, the company has continued to set itself apart from other industry players.

Keen to patent a broad scope of processes, Nutritional High specializes its processes to ensure the final product characteristics meet the demands of each individual manufacturer. Nutritional High is sure to continue leveraging its success across many areas of the United States for time to come.

 

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