How two cannabis distributors are expanding in the yet-to-be legalized American recreational market
Cannabis distributors are the liaison between a cultivator and their customer. Because cultivators cannot always sell directly to a retailer, these distributors connect cannabis brands and their strains of marijuana with dispensaries and delivery services across the country.
Unfortunately, due to current federal laws in America, distributing cannabis products across state lines is still illegal. But the momentum of the industry is not slowing down, and cannabis companies are all preparing for the possibility of federal legalization.
Here are two cannabis distributors working hard to expand in the wake of a potentially new market among American cannabis consumers:
Nabis raises over $5 million for eventual out-of-state expansions
In California, where cannabis distributors have strict regulations they must follow, Oakland-based company Nabis closed their second round of financing with a cool $4 million. In total, the company has raised over $5 million since its launch in 2017, with this latest round of funding focused on expanding its reach throughout California and eventually into other legalized states.
Nabis is known for its fast shipping, promising retailers a 48-hour window of delivery. Cultivators are given access to 500 different retail opportunities, and retailers can choose products from over forty different cannabis brands. While Nabis will be building a brand new distribution hub in L.A. to meet the growing demand, a bulk of this recent funding will be applied to the company’s software systems.
Nabis uses a cannabis-compliant software system to manage the logistics of their distribution web. According to the press release, Nabis CEO Vince Ning wants to scale up their software and make it “even easier for brands to enter the retail market”. Updated tech will be essential when, and if, the market opens up, with Nabis giving brands ample opportunity to set up shop in American markets.
Mammoth Distribution aims to invest in emerging cannabis brands
Earlier this year, Mammoth Distribution—the largest cannabis distributor in California to date—announced that it will be building a brand portfolio to help boost cannabis start-ups in the state. Currently, they are the exclusive distributor of the Heavy Hitters vape brand, among others, but are looking to expand their reach.
“Through these strategic partnerships, we intend to invest in and support the best young brands,” Nik Patel, Mammoth COO, explained in the press release. “With financial, compliance, marketing, and distribution support, we will assist in taking them to the next level. We expect our partners to achieve superior growth.”
This superior growth comes from more than just distribution. Mammoth offers personalized services for each dispensary and retail facility they partner with, including budtender training and promotional merchandising. This distributor is creating an experience that goes beyond simply shipping cannabis back and forth between cultivators and customers. And in a market where the customer experience can make or break a business, Mammoth is actively preparing for the unique potential of future American markets.