The Home Depot of Pot
The weed business is booming.
Last week, I reported to you from Las Vegas, where I was attending MJBizCon, the world’s largest cannabis trade show.
As I said then, it’s incredible how much this once-niche event has grown in the last few years.
While I was in Las Vegas, I also took the time to meet with management and visit facilities of some of the companies in our portfolio and some of the potential plays on my watchlist.
Today, I want to give you a quick boots-on-the-ground update.
One of my first stops in Las Vegas was at MedMen Enterprises Inc. (OTCBB: MMNFF). I covered another trip to this dispensary chain here.
MedMen has three stores in Las Vegas — with another coming soon. Plus 37 additional stores either open or opening soon in six other states.
In the photo above, you can see MedMen’s location right off the Strip. It’s an impressive storefront that’s hard to miss — even from quite a distance.
Inside, it’s a very high-end retail experience:
In addition to some of the popular cannabis brands, MedMen also offers its own exclusive brands at its stores. MedMen stores also sell a collection of high-end company apparel — I was struck by the quality and selection of T-shirts, hoodies, hats and the like.
It’s clear that they’re working to build a luxury brand that consumers will want to evangelize. That’s an extremely attractive model as competition grows in the legal cannabis space.
I also had the chance to visit GrowGeneration Corp.’s (NASDAQ: GRWG) Las Vegas store.
You can think of GrowGeneration as the Home Depot of growing cannabis.
The Home Depot comparison is especially apt — they recently appointed Bob Nardelli, the former Home Depot CEO, as a senior strategic adviser.
Need fertilizer, grow lights or trimming equipment? Everything in the store caters toward cultivating marijuana:
Back at MJBizCon, I also had a chance to speak with GrowGeneration’s president as well as its CEO.
They’re ramping up growth all over the country and in unexpected places — I’m told that sales have been so strong at GrowGeneration’s new locations in Oklahoma that they’re working on even more expansion there.
One of the very attractive components of GrowGen’s business is the fact that they offer higher-end consulting services, including greenhouse design and grow planning.
Another is that since the company sells ancillary products and consulting services, it doesn’t need to wait for onerous regulatory approval to enter new markets when they legalize cannabis.
And that could mean good things for those with a stake.
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Chief Technology Expert, Technology Profits Daily