In addition, the company announced the launch of its Alternative Medicine Association-branded THC products for the first time in California.
Following a management agreement with California-based, licensed cultivator Green Spectrum, 1933 Industries has established both cultivation and extraction capabilities for its AMA-branded products outside of Nevada, as well as for luxury brand Blonde Cannabis.
Local manufacturing of the Canna Hemp line allows the company to produce full-spectrum CBD infused products for direct distribution to local dispensaries and grants the company greater flexibility to react to California’s changing regulatory environment.
With a cultivation area of approximately 10,000 sq. ft. and with an additional 10,000 sq. ft. of shared manufacturing and distribution space in the Los Angeles area, the California facility will serve as the company’s main distribution hub for deliveries across the state.
After a successful trial run of 30,000 units now completed, full-spectrum CBD Canna Hemp products will be available at dispensaries later this month, once the products undergo required laboratory testing. Product offerings will include Canna Hemp relief creams, elixirs, lotions, capsules, vape pens and cartridges as well as Canna Hemp X recovery creams and elixirs.
1933 Industries anticipates its first harvest from the California facility during the first week of February with a second harvest the following week. The company expects monthly harvests to yield approximately 100 lbs. of craft-grown flower or its Blonde and AMA brands as well as concentrates.
California Represents Growth Opportunity: CEO
The California cannabis industry is on track to post a record $3.1 billion in licensed cannabis sales for 2019, and is projected to grow at a 19% compound annual growth rate (CAGR) to $7.2 billion in 2024, 40% larger than Canada and 253% larger than the next-largest state market in Colorado, according to cannabinoid market intelligence and consumer research BDS Analytics and Arcview Market Research.
Since approving cannabis for recreational use in November 2016, sales in California in 2018 represented about 24% or $2.5 billion of legal cannabis sales in the U.S., while the combined sales in Colorado, Washington and Oregon represented approximately 30% of U.S. sales.
“California represents a growth opportunity for 1933 Industries and for our brand partners. The Golden State is a trendsetter when it comes to cannabis brands and we are positioning ourselves to gain market share by working with our local cultivation partners and by bringing our manufacturing expertise to this competitive market,” 1933 Industries CEO Chris Rebentisch stated.