Marijuana Business Magazine November-December 2019

Marijuana Business Magazine | November-December 2019 70 Partnership PIONEERS Plus Products and Casper Sleep CASE STUDY an innovative, family-run company, and they use science to deliver a consistent, high-quality product. I appreciate that they’re committed to setting a high standard within an industry that has to date been fairly unregulated.” DEALINGWITH CHALLENGES Overcoming the stigma of being a cannabis company is the biggest obstacle Plus Products faced when hammering out details of the agreement. Heimark said that Casper had a lot of legal questions that took time to address. Casper’s questions revolved around the Farm Bill, state laws governing the sale of CBD and the manufacturing process. The company also focused on Plus’ high standards in manufacturing, which include a 14-point testing system. “They understand that partnering with any CBD company could be a danger to their brand,” Heimark said. “We had to create a really good product together.” Studies have suggested that CBD may help with insomnia and other sleep problems, but because it is not approved by the U.S. Food and Drug Administration for that use, it cannot be marketed as a sleep aid. “CBD is a confusing marketplace,” Heimark said. “We believe that when people try our (product), they come back. Marketing partnerships get you your first sale. Every single subsequent sale is based on the quality of your product.” KEEPING IT GOING Plus recently kicked off a nationwide marketing campaign featuring the hemp-derived CBD sleep products with the launch of its first direct-to- consumer digital commercial. Plus executives believe the company will need to step up its manufacturing to keep up with demand for the products. When the gummies launched, Plus decided to create a new manufacturing facility in Oregon to keep up with demand and to allow it to scale. The facility was expected to open by late October, Heimark said. Plus is still tallying initial figures, but sales were brisk. The company generated more than 300 million impressions from its launch event, including coverage from Forbes, CNBC, Politico, The Hollywood Reporter and Billboard. Plus agreed to sell a set number of products until the inventory ran out, which occurred shortly after sales began. NEXT STEPS As a result of the successful collaboration, the company is looking at doing something larger with Casper in the future. “It’s going much better than we had thought it would,” Heimark said soon after the launch. “We predicted a certain number of units. It’s selling out. We’re putting together a plan to make the product and ship it together. There are a lot of moving parts behind the scenes.” Lucie Herold, Jake Heimark, John Legend and Justin “Crunchy” Gwin, from left, celebrate the launch of Plus Products' hemp- derived goods. Photo courtesy of Movi Inc.

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