One of the leaders in retailing when it comes to the cannabis sector is a small, $550 million-dollar company known as Green Growth Brands (CNSX: GGB).
In contrast to some other marijuana giants who have had head starts with market capitalizations dozens of times larger, Green Growth Brands made cannabis history when it announced a monumental deal with America’s largest retail mall operator.
Since having positioned itself as a retail leader, the company has followed this up with a second major mall partnership.
The deal between the two companies would see GGB’s retail footprint grow by an extra 70 locations by the end of the year, adding to the already large number of stores to be opened in GGB’s previous mall deal.
Brookfield Properties remains one of the top retail properties in the U.S. and already has seven of GGB’s Seventh Sense shops already in place as a test to see whether they would be successful.
“Brookfield Properties operates some of the most exciting and visited malls in the country, and we are thrilled to introduce our CBD shops to their centers. We know that consumers prefer to buy personal care and beauty products from physical stores, and this partnership will allow us access to millions of consumers,” said Peter Horvath, CEO of Green Growth Brands. Brookfield Properties CEO, Sandeep Mathrani, added that “Curation of our shopping centers is fundamental to our ongoing evolution. It is our job to bring in retail offerings and experiences that today’s consumer desires and this includes GGB’s CBD products. GGB is at the forefront of this trend and we are pleased they will expand their reach within our portfolio.”
Back in February, GGB made news through an exclusive partnership with Simon Property Group (NYSE: SPG) to open up over 108 prime cannabis shops across the country.
As the largest shopping mall operator in the world, the announcement was a historic one, solidifying the legitimacy of the cannabis industry as a whole as well as the growing demand for the plant from retail customers.
Much of GGB’s success in securing retail agreements comes from its management team, with many executives having decades of experience working in retail giants.
CEO Peter Horvath, for example, previously worked at Victoria’s Secret as well as American Eagle Outfitters. For large mall operators, having a track record of retail success at other firms is a major selling point and reason why GGB can secure these deals so easily.
Despite the news, shares of Green Growth Brands ended up dipping 2.4 percent on Monday’s trading session. Stock prices overall have been quite interesting for the company, having risen in Q4 2018 in contrast to most other cannabis companies who declined substantially during this time.
After joining the rest of the industry in seeing it’s stock price rise in January, shares of Green Growth Brand began to slow down and decline over the past few months, despite some of the major announcements the company made so far in the year. Either way, few analysts in the sector would pick any company other than Green Growth Brands as the leader in the world of cannabis retailing.