- In December 2018, Plus Products finalized the acquisition of GOOD CO-OP to further cement its leadership position within the California cannabis-infused edibles field
- Through the acquisition, Plus will gain quick access to the baked edibles market – one of the most rapidly growing niches in the space
- The CAGR of cannabis-infused baked goods for the coming five years is forecast at 14.12 percent, and the overall edibles market is expected to exceed $3 billion
Plus Products Inc. (CSE: PLUS) announced in December 2018 that it had finalized the acquisition of GOOD CO-OP Inc. – a California-based cannabis-infused baked goods brand. This acquisition is expected to enable Plus to solidify its top position in the edibles field (http://ibn.fm/B7bwv).
The acquisition is valued at approximately C$2.03 million and will be satisfied through the issuance of 357,464 restricted subordinate voting shares of Plus.
Currently, Plus ranks as the leading edibles brand in California, and its primary focus is within one of the largest edibles categories – gummies. Through the acquisition of GOOD CO-OP, Plus gains a strategic advantage in that it can enter a second rapidly-growing category, that of baked goods.
In 2018, the baked goods category accounted for approximately 13 percent of the cannabis-infused edibles market. Cannabis-infused edibles represent the most rapidly-evolving product category in the cannabis field. The market is projected to reach volumes ranging from $3 billion-$5 billion in the next five years, which would represent an overall increase of 130 percent (http://ibn.fm/llF3W).
The five-year CAGR of baked goods is one of the highest in the industry at 14.12 percent. Sugar candies and gummies are also projected to grow significantly over the coming five years, at a CAGR of 15.94 percent.
Plus Products already has a well-established market position that could promote fast growth in the years to come. In Q3 2018, the company ranked as the number one edible brand in California (http://ibn.fm/D3sca). According to the ranking, the two best-selling branded products are PLUS Sour Watermelon Gummies and PLUS Blackberry and Lemon Gummies, according to BDS Analytics and Headset retail sales data analysis. These two products have scored top positions across all categories in California, including flower, vaporizer, edible and topical products.
“We grew PLUS into the top edibles company in California by leading with our product. We have focused on manufacturing consistent, high quality edibles that resonate with consumers,” Plus CEO Jake Heimark said in a news release. The year of 2018 was a big one for Plus, and the company continues to strive to expand its portfolio and broaden its geographic reach moving forward, Heimark added.
In his words, the acquisition of GOOD CO-OP accelerates the company’s entry into the baked edibles field. It will help solidify the company’s market position even further. According to Heimark, Plus is committed to becoming the largest edibles brand across all legal jurisdictions.
GOOD CO-OP is a premium edibles brand that focuses predominantly on the creation of delicious cannabis-infused brownies and other baked goods. Taste and flavor profiles are two of the brand’s primary concerns, which is why GOOD CO-OP does not use additives or preservatives.
The GOOD CO-OP product portfolio includes bite-size brownies and pumpkin spice blondies, among other products. These have been featured in various reputable media like Vice Magazine, Fortune and Eater.
For more information, visit the company’s website at www.PlusProducts.com
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