As the country inches closer to the full legalization of marijuana, many in the business community are wondering which brands will stand-out? To date, one the strongest and largest brands in this growing industry is, MedMen. Today, Ignitia takes a closer look at what has allowed this marijuana startup to earn a reported $1.6 billion valuation.
MedMen is Changing Public Perception
Right from the start MedMen’s red-and-white logo invokes and almost Netflix-like quality. And why not? Both are two of the most trusted brands in their industry. With MedMen, as with Netflix, this is by design. To date, one of the largest initiatives the company has undertaken has been its efforts to change the public perception of marijuana. This attitude is at the forefront of the company’s marketing campaigns and can be seen on many of the company billboards which take the issue of de-stigmatizing cannabis head-on.
A Socially Minded Company
In order to do that, MedMen is currently the single largest donor to progressive marijuana laws in the country. These efforts includes financially supporting both pro-legalization groups and political candidates on the local, state, and federal levels. Along with these efforts, MedMen also prides itself on exercising social responsibility. As such, MedMen uses only the latest agronomic and sustainable techniques in its growing facilities. This approach is important considering the size of these facilities. Currently, MedMen owns an operates a 45,000 sq.ft facility in Desert Hot Springs, California and has already begun construction on its second 45,000 sq.ft facility outside of Reno, Nevada. Currently, MedMen operates 19 facilities in 4 states and employees more than 800 people.
The Green Rush
And business itself is booming. Through the last quarter of 2016 and all of 2017, MedMen recorded sales revenue of $6 million, however in August of 2018 alone, MedMen reported sales from its most recent quarter of $19.2 million. This enormous sales growth is due in large part to the recreational use laws passed by California, a state where much of MedMen’s business is concentrated. But it also speaks to a larger trend. During that same quarter alone, the company saw 94,000 new customers, each of which spent on average $78 per visit at one of their stores. These impressive numbers is also welcome news to investors as the company is already publicly on the Canadian Stock Exchange. At the close of trading today, the stock sat at $5.97 CAD.
A Growing Industry
It’s no secret the marijuana industry within the United States is booming on the whole as well. A 2015 report by the ArcView Group listed cannabis as the fastest growing industry in the United States. According to MedMen’s CSE filing, the U.S. industry currently sees $7 billion in annually sales, but is projected to eclipse a staggering $75 billion by 2030. These numbers only look to increase further as more and more states open up to the possibility of legalizing cannabis.
No Signs of Slowing Down
In order to keep up, MedMen has been expanding aggressively, and wisely. In Los Angeles, the company was one of only two dispensaries ready to sell cannabis when recreational use was legalized. They also received the first state medical license for all of Los Angeles. Couple this with its plans to expand to the recently legalized states of Nevada and New York, and a reported $53 million bid for a license to sell in Florida where medical marijuana legalization is set to pass, and it’s easy to see why MedMen is easily the nation’s largest and most profitable medical marijuana provider.