Behold the World’s New Largest Cannabis Brand
You’ll be surprised to discover that the world’s largest medical cannabis company, Canopy Growth, is, in fact, NOT the world leader when it comes to cannabis sales. This honor falls to a Massachusetts-based company you probably never even heard of — Curaleaf.
So, how did this come to pass, you might be wondering?
Well, despite losing over half of its market cap due to the 2020 stock market crash earlier this year, Curaleaf executed its long-planned ”brand shopping spree” to widen its customer reach.
In February, the brand integrated Select — the biggest asset of Cura Partners. In April, Curaleaf bought three AAC (Arrow Alternative Care) dispensaries in Connecticut, and earlier in July, they acquired the Colorado-based edibles producer — BluKudu.
All-in-all, in the span of a single year, Curaleaf bought around 15 smaller companies.
However, last month, Curaleaf made its biggest acquisition yet — Grassroots (the largest privately held multi-state operator in the US).
A little more than a year after they first announced the deal, Curaleaf (CURLF) acquired Grassroots for a whopping $700 million on July 23 and officially became the world’s largest cannabis company based on sales revenue.
Despite the coronavirus outbreak, global cannabis sales were thriving, and Curaleaf was closing in on the top spot with its $96.5 million in total revenue for Q1 2020. Yet, it wasn’t until they finalized the deal with Grassroots that they dethroned the previous market leader — Green Thumb Industries (GTI).
The CEO of Grassroots, Mitchell Kahn, confirmed that the merging of the two companies is a strategic union that aims to scale-up and thus secure a dominant position in the cannabis market.
In addition, Curaleaf also gained access to markets where it previously had no reach, such as Arkansas, North Dakota, and Vermont. Likewise, it tightened its grasp on one of the fastest-growing cannabis markets — namely, those in Illinois and Pennsylvania.
Today, Curaleaf is present in no less than 23 American states, in over 88 operational dispensaries, and owns a total of 135 dispensary licenses. And according to estimates, this is enough to reach around 192 million American customers, which yields at least $1 billion in annual revenues. In comparison, the total CBD market is expected to reach $20 billion by 2024.
But wait, there’s more!
The Alternative Therapies Group (ATG) is next on Curaleaf’s list of acquisitions. So, you better get acquainted with this brand fairly soon as it’ll most probably be supplying you with cannabis products in the years to come.