CFN Media Exclusive with Flower One Chief Strategy Officer
December 9, 2019 MJ Shareholders
December 9th, 2019
In the developing world of cannabis brands, it takes more than just an attractive flower in a fancy jar to succeed. The competition for consumer loyalty is fierce, so growers and manufacturers must run an efficient operation while consistently delivering on quality to succeed. One company taking this to heart is Flower One (OTCQX:FLOOF) (CSE:FONE), the biggest cannabis cultivator, producer, and full-service brand fulfillment partner in the state of Nevada. Offering full-service turnkey solutions for both brands and retailers to bring their products to life – and the market – this firm is already dominating in its home state and has its sights set high (no pun intended). The Company recently announced a partnership with Kiva Confections to bring their award-winning Camino gummies to Nevada.
CFN Media spoke with Flower One Chief Strategy Officer Kellen O’Keefe at the recent MJ Micro conference where he shared insights on the business’s upcoming expansions and how commitment to company culture sets them up for success.
CFN: Tell us about the history of Flower One? What is the company ethos?
Kellen O’Keefe: Our legacy dates back to over 25 years ago when two brothers started their first greenhouse on their family’s farm. They then went on to become one of the larger agriculture producers in the world, and it is that team that has been able to support and build Flower One, creating a culture that is unique and an integral part of who we are today.
We believe that there’s a huge lack of trust in the cannabis market, and that lack of trust not only exists within the businesses, but within the supply chain as a whole. Consumers and businesses are unable to trust where their cannabis comes from. Flower One therefore believes that if we can apply responsible, sustainable cultivation, and manufacturing methods to the space, we will not only be able to achieve the best in quality product, but also produce at the lowest possible price points. Everyone deserves access to quality cannabis at an affordable price and Flower One is proud of the role we play in making that possible.
In addition, given our proprietary cultivation techniques, we are able to grow cannabis at a dramatically lower carbon footprint than that of traditional indoor cultivation or other methods that achieve ultimately the same quality product. So we feel that by caring for the planet, caring for our customers, and caring for our team members, we will effectively build a culture that stands for something more than just profits, and that’s very important to us at Flower One.
CFN: Tell us about your offerings?
KO: We manufacture a wide variety of products at Flower One. Our greenhouse produces roughly 3,000 to 5,000 pounds (of flower) via continual harvest, so we have quite a lot of source material that we can use to make everything from every form of flower and concentrates to pre-rolls, edibles, beverages, topicals, and more. We aim to utilize our manufacturing capabilities to sell more finished packaged goods where we capture considerably more margin than if we’re just a wholesaler. So that’s the real goal for us, providing the finished product from seed to shelf for our brand and preferred retailer partners. We are excited to begin construction on our state-of-the-art commercial kitchen where we will be able to bring some of the best-selling edible brands to the state of Nevada. As you noted, we recently launched a partnership with Kiva and will be bringing their Camino gummies to market in December 2019.
CFN: Speaking of which, tell us about your upcoming expansion to California?
KO: Originally we planned to enter California in early 2020. And while we haven’t abandoned our ambitions for geographic expansion, right now given the current market conditions we believe it is in the best interests of both our company and our shareholders to delay our entry into California and focus on continuing to grow our efforts in Nevada instead. We will reassess a move into California later in 2020 and will keep our investors up to date on our expansion progress in the coming months.
CFN: Could you touch on your financials?
KO: We just reported our Q3 2019 financials, and we are very pleased with our progress this past quarter. Revenue for the quarter grew 292% sequentially, and we are expecting to see a strong finish to 2019. It’s important to note that this revenue represents only six months of actively selling product out of our greenhouse.
In addition, we’ve been very successful in raising capital and have been fortunate to gain the support of some of the most strategic investors in our industry. We’ve been able to access not only equity but debt at favorable rates. So, we’re in a solid position to continue to fund our continued expansion within the Nevada market.
We’ve also had the ability to do a sale – lease back on one of our properties, our second production site in North Las Vegas, to Treehouse REIT for $20 million. This enabled us to generate capital to continue to grow our business without diluting shareholders. So that’s another option for us in the future as we still own the real estate beneath our flagship greenhouse and production facility in North Las Vegas.
CFN: What else sets Flower One apart?
KO: I think ultimately it comes down to our operational excellence. We produce product at a considerably lower cost and significantly higher quality than we’re seeing in the market today.
We provide a turn key solution to both brands and retailers who do not need to be fully vertically integrated to succeed in the cannabis market. For brands, we offer seed to shelf fulfillment allowing them to launch a new market at a fraction of the cost and far less resources. And when it comes to our preferred retail partners, we can offer them consistent production and quality at the right price, allowing them to capture even more margin than they can achieve through vertical integration. This allows them to focus on customer acquisition and experience without the headaches of managing a broken supply chain.
CFN: What else should our readers know about Flower One?
KO: We are at a transformational point in the cannabis industry, where culture and teamwork can make or break whether or not a business is successful. So for us at Flower One, it’s all about our team. It’s all about the people that we’ve assembled, and when it comes to a cannabis, we have the best in the business. There are not many organizations that have both a strong leadership team and a strong culture, but Flower One certainly has both of these attributes which has and will continue to enable us to succeed.
This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.
About Rachelle Gordon
Rachelle Gordon is a Minneapolis-based writer. Find her online at www.rachellegordon.net.
MJShareholders.com is the largest dedicated financial network and leading corporate communications firm serving the legal cannabis industry. Our network aims to connect public marijuana companies with these focused cannabis audiences across the US and Canada that are critical for growth: Short and long term cannabis investors Active funding sources Mainstream media Business leaders Cannabis consumers