Interview, Part 2: Bill Silver, President, New Markets, CannaCraftJune 11, 2019
In the second part of our interview, CannaCraft executive Bill Silver discusses the company’s distribution footprint, capacity expansion, and its planned push into new markets.
SND: How widely is the CannaCraft portfolio distributed in California? Do you foresee expanding into other states in the near term?
Silver: CannaCraft brands—Care By Design, Absolute Extracts, Satori Chocolates, Loud & Clear, and HiFi Hops—are the most widely distributed brands in the California. We have the advantage of being in the market longer than most, and we’re California’s largest distributor. But the real difference lies in the quality and authenticity of our brands, and the reliability and consistency of our distribution. We’ve just started to take on third-party brands. We’re also looking at some brands that aren’t yet in California but have been successful in other states. We can build some reciprocal partnerships with those brands to help us get into other states while distributing them in California. I’m excited to tell you that within 90 days CannaCraft brands will be available in other states. We’re launching an aggressive national expansion.
SND: Any new products in the innovation pipeline?
Silver: We have a new brand called Kite, which will be a sparkling water, following up on the success of Hi-Fi Hops. The reason I’m excited about the beverage category is because I believe we’re going to figure out how to approach the on-premise. So far we really haven’t seen much in the way of consumption lounges, because you have to separate alcohol on-premise from cannabis on-premise. But we’ll work our way through that in terms of regulation. Licenses that are side by side are one way to do it. We’re also innovating on our CBD brand Care By Design, for which we’ll be bringing out new products featuring different cannabinoids.
SND: How is CannaCraft situated from a capacity standpoint? Is there room to accommodate significant growth moving forward?
Silver: CannaCraft’s growth has been fueled organically by sales and by reinvesting back into the business. We build all of our own extraction equipment, and this has given us the largest production capacity in the industry. With new technology, we’ll double our capacity this year, and the next generation equipment will get us to 10 times our current capacity in 2020, in support of national and global expansion.
SND: Where you see CannaCraft headed in the future?
Silver: From the beginning in 2014, CannaCraft has doubled revenue each year. Last year was a little slower as the market reset and we waited for licensed shops to open. We’re seeing strong growth again this year in line with our historical trends. As we bring new brands and products to market, and as we open up new states and new global markets, we’ll continue to be among the leading companies in the industry. The difference between us and some of the large public cannabis companies is that we’re actually profitable, and our revenues come from sales of the most popular brands in the industry’s largest consumer market. This is true organic growth.—Daniel MarstellerSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning. You will also receive the Cannabis edition as part of your subscription.