CEO Gary Latham said the platform positions SpeedWeed to accelerate revenue, expand margins and enter new geographies
Mojave Jane Brands Inc () (OTCMKTS:HHPHF) revealed Thursday that California's leading cannabis delivery company SpeedWeed, in which it holds an interest, has launched its direct-to-consumer platform, SpeedWeed D2C.
SpeedWeed has over 200,000 registered users and an expansive data set on consumer preferences that provides valuable intel on marketing and production logistics.
In a statement, the company said the e-commerce platform will allow consumers to order products they love directly from their favorite brands, with SpeedWeed’s award-winning fulfilment service taking care of the logistics and delivery.
READ: Mojave Jane Brands Inc makes $500,000 investment into cannabis delivery company SpeedWeed
According to the company, signing on with SpeedWeed D2C will help brands to “fully control the supply chain, including pricing.”
“It enables brands to price their products more competitively compared with the illicit market, while being able to increase margins,” said the company.
The company noted that the move not only has brand benefits but great perks for consumers who can rest easy in the knowledge that the products they are buying are “legal, authentic and tested.”
In a statement, Mojave Jane Brands CEO Gary Latham said that SpeedWeed CEO AJ Gentile and his team continue to lead the Californian market with “disruptive innovation.”
“SpeedWeed D2C will benefit all stakeholders in California, while positioning SpeedWeed to rapidly accelerate revenues, expand margins and enter into new geographies,” said Latham.
Leveraging SpeedWeed’s platform for CALIGOLD
Mojave Jane is aiming to leverage SpeedWeed’s platform to optimize its go-to-market strategy for its own in-house cannabis brands such as CALIGOLD.
“Furthermore, increased integration of SpeedWeed with Mojave's operations, in line with our increased ownership, will enable us to D2C enable our CaliGold brand once production capacity is scaled up," said Latham.
Meanwhile, SpeedWeed boss AJ Gentile said SpeedWeed's D2C platform offers a “win-win-win” scenario for consumers, brands and the ultra-competitive dispensary market in California. He said SpeedWeed enables its dispensary partners to increase reach, grow revenues and improve margins.
“Consumers benefit from secure, safe and legal product supply, as well as increased convenience. Brands and dispensaries will be able to increase their reach, grow revenues and improve margins without additional capital outlays,” noted Gentile.
“With the recent investment from Mojave, we are now able to launch our D2C platform in Southern California, as well as expand our reach into new counties. We are in multiple discussions and are close to announcing the first of a roster of curated premium brands on our platform shortly," he added.
Dispensaries stand to gain
Dispensaries stand to gain, as while customers order products from the brands directly, regulations require fulfilment from a dispensary. The company says these dispensaries, in turn, will be compensated on a per order basis.
“It is anticipated that the majority of these orders will come from people who are not regular customers of the dispensary, thereby generating additional sales at zero customer acquisition costs,” said the company.
As a result, SpeedWeed already has a “large and growing” waiting list of dispensaries looking to sign up with it.
Mojave Jane recently increased its position in SpeedWeed to nearly 25% with the option to further increase it to 40%.
Mojave Jane, is a California-licensed manufacturer of premium cannabis extracts and concentrates. It aims to become a vertical integrator in the state’s legal cannabis space serving recreational and medicinal markets.
Contact Uttara Choudhury at [email protected]
Follow her on Twitter: @UttaraProactive
