Greenlane Holdings, Inc. (GNLN) has formed strategic partnerships recently that has some investors wondering if it could be the next cannabis stock to skyrocket.
Last week, Greenlane announced its partnership with the Cookies brand for the launch and exclusive U.S. distribution of the Cookies hemp-derived CBD product line.
And today the company announced a partnership with the Bouquet brand for exclusive U.S. distribution of its full spectrum CBD oil products, including tinctures and capsules.
“Bouquet is an up-and-coming CBD brand with significant growth potential due to their science-based approach and focus on product quality,” said Aaron LoCascio, Chairman/CEO of Greenlane.
“We pride ourselves on identifying promising and innovative brands such as Bouquet and partnering with them to launch and grow their business. We are pleased to enter into this exclusive distribution partnership with Bouquet and look forward to broadening awareness and availability of their premium CBD products.”
LoCascio’s statement sounds strikingly similar his statement from last week about Cookies: “We are positioning ourselves as a CBD category captain, building a portfolio of the most respected brands in the sector through exclusive distribution agreements.”
Greenlane’s partnership trend is part of a larger pattern within the cannabis sector – which is a race to scale. It seems all the major cannabis players have been on a buying spree this year in an effort to create as large a footprint as possible.
Because Greenlane is actively announcing new partnership deals at this pace, it could mean that they are doing something right.
Over the past several months, Greenlane has signed exclusive distribution agreements to build a portfolio of well-known CBD brands such as: Bloom Farms, Select, Mary’s Nutritionals, and Slang.
Greenlane will utilize its North American distribution network of more than 11,000 retail locations (which include licensed cannabis dispensaries, smoke shops and vape shops) to make their partners’ CBD products available to consumers across the U.S.
The company is one of the largest worldwide sellers of high-end cannabis accessories, CBD and liquid nicotine products. They operate as a house of brands, third party brand accelerator and distribution platform for consumption devices and lifestyle brands. Greenlane serves international cannabis, CBD, and liquid nicotine markets, and have reach to a sizeable consumer base.
Greenlane has a solid track record of partnering with brands throughout numerous stages of a product life cycle. They offer a range of services including product development, go-to-market strategy, sales and marketing support, market research, customer service, direct-to-consumer fulfillment, warranty repair, supply chain management, and distribution.
Greenlane’s strategic partnerships include brands such as: PAX Labs, (Canopy Growth-owned) Storz & Bickel, JUUL, Grenco Science, Firefly, DaVinci, Select, Sherbinski, Pollen Gear, VIBES rolling papers, the Marley Natural accessory line, the Keith Haring accessory line, Aerospaced & Groove grinders, Higher Standards, Vapor.com, and dozens of others.
In the Q2 2019 earning call, GNLN announced a net increase in sales of JUUL products of nearly 70%. The company also reported growing its house brand by 61%, comprising 6.3% of the total net sales up from 5.1% last year.
Greenlane Holdings Inc. (GNLN) was trading at $6.36 per share on Tuesday afternoon, down $0.25 (-3.78%). Year-to-date, GNLN has declined N/A%, versus a 8.08% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of ETFDailyNews.com.
About the Author: Eric Bowler
Eric Bowler is an accomplished journalist providing in-depth insights for more than two decades. Over the past several years his focus has been on the marijuana industry, with a special interest in cannabis growth stocks. His daily coverage of the industry keeps him on top of the key trends with the goal of helping investors make well-informed decisions.