Green Growth Brands Inc (CSE: GGB) made news earlier this month when it announced a partnership with America’s largest mall operator, Simons Property Group, Inc (NYSE: SPG).
The deal, which has set a precedent in cannabis retail expansion, will see Green Growth Brands open over 100 retail stores across some of America’s top malls across the country. Today, the company announced they were opening two new CBD shops using their iconic Seventh Sense brand located in Indiana and Tennessee.
Around a week ago, Green Growth Brands announced they were opening the first of their Seventh Sense stores in Kentucky. With the opening of two more retail stores, it’s expected that the current pace will see the planned 108 malls opened within a few months.
“We know that the stickiest customers come from in-store experiences. In our growing network of shops, we are committed to providing compelling assortments of products that encourage our customers to explore,” said GGB CEO Peter Horvath. “Early results have seen Seventh Sense products selling through at three-times the typical performance of personal care products, accomplished with never-seen-before brands and zero marketing beyond point of sale. We could not be happier with the way the brand and the network are growing.”
While many cannabis companies are beginning to shift to focus more on the retail and branding side of the industry, it’s unlikely the other cannabis brands will able to achieve a similar retail presence that GGB has accomplished. Many industry experts think that in the future, companies that chose to focus on cultivation capacity above everything else will end up behind more retail-oriented brands on the value-chain.
GGB stock increases 1.5 percent today in response to the news, but over the past week has declined almost 15 percent. The company had previously announced they were hoping to takeover Aphria Inc (TSE: APHA)(NYSE: APHA), but needed a minimum stock price of C$7 per share to make the valuation possible. With their declining stock price alongside rebounding Aphria shares after independent investigations helped restore their reputation, this is looking increasingly unlikely.
Green Thumb Industries Company Profile
Green Thumb Industries (GTI), a national cannabis cultivator, processor and dispensary operator, is dedicated to providing dignified access to safe and effective cannabis nationwide while giving back to the communities in which they serve. As a vertically integrated company, GTI manufactures and sells a well-rounded suite of branded cannabis products including flower, concentrates, edibles, and topicals. The company also owns and operates a rapidly growing national chain of retail cannabis stores called RISE™. Headquartered in Chicago, Illinois, GTI has nine manufacturing facilities and licenses for 72 retail locations across nine highly regulated U.S. markets. Established in 2014, GTI employs approximately 500 people and serves thousands of patients and customers each year. GTI was named a Best Workplace 2018 by Crain’s Chicago Business. – Green Thumb Industries
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