This top MSO just made another big acquisition…
In 2012, Colorado voters rallied together to make a historic vote, passing Amendment 64.
That’s what kicked off adult-use cannabis sales.
Fast forward six years later and, in Denver, you’re more likely to find a cannabis dispensary than a Starbucks. We’re talking about 364 dispensaries compared to 80 Starbucks in the Mile High City in 2018.
All those storefronts equal big bucks.
After all, estimates show $1.6 billion in legal cannabis was sold in Colorado last year, which was second only to California‘s $3.1 billion in sales.
One that Curaleaf Holdings Inc. (OTC: CURLF) was missing out on.
Curaleaf Enters $1.6 Billion Colorado Market
Curaleaf, a well-known multi-state operator (MSO), is building an impressive foothold across the United States.
Now, it will sell even more products than ever before with its acquisition of Colorado-based BlueKudu.
BlueKudu is an edibles company that has been offering premium products since 2011. It has chocolates, bonbons, and four flavors of gummies.
The best CEOs know that they need to be everywhere their customer is and, with full legalization on the horizon, that means building in more states now in anticipation of what is to come.
This is all a part of Phase 2, where the largest companies will acquire small and specialty companies to expand and reach new customers. CEOs can either build or buy for growth.
Sometimes the best move to make is to buy.
With an established company like BlueKudu, it’s been in operation for eight years, has a foothold in the second-biggest cannabis marketing in America, and it has an established clientele that wants premium products, which can offer higher margins.
It could take years for Curaleaf to build something like that.
But with acquisitions, deals can finalize in months.
Mergers and acquisitions (M&A) have been fast and furious in 2020. Here’s a look at how they’re leading this year’s top cannabis trends.
Our discussion of Curaleaf today does not mean that we’re recommending the company.
Rather, its acquisition is an important signal of what’s happening in the cannabis industry.
One of the biggest MSOs in the country is still expanding, making a strategic move to reach even more customers than ever before.
That makes companies stronger, increases brand recognition, and leads to more revenue.
All of which is a clear sign that Phase 2 is fully underway.
6 responses to “Curaleaf Is Betting Big on Denver With Its Latest Acquisition”
March 11 2020