- Cannabis sales in California hit $4.4 billion last year, up 57% from the year prior.
- Consumers are relying on home delivery for many goods, including cannabis.
- With its Nug Avenue acquisition, SGMD plans to make significant impact on LA cannabis delivery marketplace.
Boasting the largest state economy in the country and the sixth largest economy in the world, California also tops the global marijuana market, with a Forbes article reporting that cannabis sales in the state hit$4.4 billion last year, up 57% from the year prior (https://cnw.fm/JOcb8). With much of that growth driven by increased use of delivery services as consumers are increasingly relying on home delivery for many goods, including cannabis, Sugarmade Inc. (OTC: SGMD) is leveraging its position as a 70% stakeholder in NUG Avenue, a cannabis delivery service based in Southern California.
Cannabis delivery is key to California’s cannabis growth, according to the Forbes article, which noted that “interesting findings from the report include the massive influx in delivery sales, as well as consumers who used delivery for the first time this year. The peak for first-time delivery users was March and April 2020, coinciding with lockdowns. Many cannabis industry operators saw the most consistent April sales ever. Eaze reports a 59% increase in new customer sign-ups, a 44% increase in first-time deliveries and a 15% increase in order volume.”
Those numbers come as no surprise to Sugarmade, an innovator in the dynamic California cannabis scene that has made a significant investment in the cannabis-delivery space. Earlier this year, SGMD announced its Nug acquisition, along with unveiling a new business initiative for the licensed delivery of cannabis products to consumers in the Los Angeles metropolitan area (https://cnw.fm/61Llz).
“We strongly believe the LA delivery market is the prime spot for expansion of our business,” said Sugarmade CEO Jimmy Chan. “California is the world’s sixth-largest economy, and LA County is by far the most significant driver, with over 25% of the state’s population. The Lynwood, California, site is optimal, as it is located along one of the major distribution freeways, allowing drivers to efficiently reach the more than 15 million consumers that live within a 30-mile radius of the new location. We plan to make a big impact on the LA cannabis delivery marketplace.”
Sugarmade’s acquisition agreement, which outlines a 70% stake in the Lynwood, California, operations of Nug Avenue, a California corporation, also indicates the company will recognize 70% of the revenues and profits from Nug Avenue’s Lynwood delivery service operations. In addition, the agreement gives SGMD first rights of refusal on all future investments into Nug Avenue and an option on all future business operations, including expansion into additional delivery areas.
Sugarmade Inc. is a product and branding marketing company investing in operations and technologies with disruptive potential. In addition to its financial interest in the BudCars brand, SGMD’s brand portfolio includes NUG Avenue, CarryOutsupplies.com and SugarRush(TM).
To learn more about Sugarmade, please visit www.sugarmade.com.
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