Today has seen a number of cannabis-related retail announcements. Companies are beginning to recognize that branding and retail presence will be the differentiating factor for businesses in the coming years as opposed to sheer cultivation volume.
As such, most companies in some form or another are switching their emphasis to getting established in this area. Green Growth Brands (CSE: GGB) announced today it had entered into a partnership with Simon Property Group, a major retail mall operator, which would see GGB gain exposure to 108 retail locations across the country.
“Our partnership with Simon allows GGB to launch our brands and CBD products in premier shopping destinations across the U.S. Our management team has had decades of experience working closely with developers and operating premium retail stores in their properties. We know this arrangement gives us access to the best locations, foot traffic, and consumers,” said GGB CEO Peter Horvath in an official press release. “We look forward to introducing our remarkable retail experience and line of CBD products to Simon shoppers in the near future.”
Simon Property Group is one of the largest shopping mall operators in the country as well as an S&P 100 company, operating high-profile locations such as The Galleria in Houston, Roosevelt Field in New York, and much more. The exposure granted from such as agreement would see GGB’s retail footprint expand massively. At the same time, the arrangement would mark Simon’s first exposure to the cannabis industry, an experiment that both companies are eagerly anticipating to see how consumers react.
“We are constantly on the lookout for cutting-edge new concepts, like the GGB shops,” added Simon Malls President John Rulli. “We are committed to adding new and dynamic retailers and uses to our shopping destinations, and the GGB shopping experience is exactly the type of innovation our customers want and expect from us.”
The idea of high-end cannabis dispensaries marketed to a luxury market has been growing over the past couple of months. Recently, Barneys New York announced they were opening a high-end luxury cannabis store in their Beverly Hills location. The fact that cannabis products will be sold in this historically prestigious flagship location is indicative of changing consumer sentiments regarding marijuana consumption.
Green Growth Brands stock stayed relatively the same today, surging almost 5 percent in the first couple hours of trading, before settling at a 0.5 percent decline. At a current price of C$5.7 per share, the stock is well below the $7 minimum needed to make their proposed takeover bid of Aphria Inc (TSE: APHA)(NYSE: APHA) a possibility.
Green Growth Brands Company Profile
Green Growth brands expects to dominate the cannabis and CBD market with a portfolio of emotion-driven brands that people love. Led by renowned retailer Peter Horvath, the GGB team is full of retail renegades with decades of experience building successful brands. –Green Growth Brands
Simon Property Group Company Profile
Simon Property Group, Inc., incorporated on March 10, 1998, is a self-administered and self-managed real estate investment trust (REIT). The Company owns, develops and manages retail real estate properties, which consist primarily of malls, Premium Outlets and The Mills. Simon Property Group, L.P. (Operating Partnership), is the Company’s partnership subsidiary that owns all of its real estate properties and other assets. As of December 31, 2016, the Company owned or held an interest in 206 income-producing properties in the United States, which consisted of 108 malls, 67 Premium Outlets, 14 Mills, four lifestyle centers, and 13 other retail properties in 37 states and Puerto Rico. – Reuters