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Sugarmade Inc.’s (SGMD) Nug Avenue Growth Fuels Expansion Plans

  • Nug Avenue success provides healthy backdrop as SGMD looks ahead to opening new locations
  • In addition to adding members, Nug Avenue has added new cannabis delivery technology to its format
  • New delivery tech provides everything from route optimization to real-time delivery updates, saving time and money while producing higher customer satisfaction

Cannabis delivery continues to be a promising space in California — and around the country, for that matter— and the success of Sugarmade’s (OTC: SGMD) Nug Avenue firmly establishes the company as a leader in the growing sector (https://cnw.fm/DZscn). SGMD is leveraging the combination of Nug Avenue’s high performance and new delivery technology as it moves forward with expansion plans. 

“We have seen rapid and accelerating organic growth in customers at our initial Nug Avenue location since we opened the doors in March,” said Jimmy Chan, Sugarmade CEO. “The good news is that this trend survived reopening, with a reduction in pandemic-related measures and regulations having no impact on our growth. That provides a very healthy backdrop as we look ahead to opening new locations, upgrading our service and verticalizing our model through our own cultivation resources.”

In a recent shareholder update, Chan noted that SGMD’s initial Nug Avenue hub, which is located in the Los Angeles metro area, has seen dramatic growth since opening its doors in March 2021. In fact, by the end of June 2021, it had gathered more than 10,000 unique members. That growth has only increased, reaching nearly 25,000 unique members in the company’s most recent report.

In addition to adding members, SGMD’s Nug Avenue has added new cannabis delivery technology to its format. Nug Avenue now features the Onfleet last-mile delivery solution with Blaze, which is designed specifically to strengthen the company’s competitive advantage in its core delivery zone. According to the company Onfleet provides AI-based automated dispatch, automatic SMS customer notifications with accurate ETAs, real-time driver tracking, proof-of-delivery, feedback collection tools, and powerful analytics to ensure every delivery is an optimal experience.

“The industry average is measured in hours when it comes to cannabis orders in the California delivery marketplace,” reported Chan, who noted that in the first month of adoption, Nug Avenue’s average delivery time decreased to 41.51 minutes, and customer satisfaction rose to 4.83 out of 5 stars on average. “We are working to shorten that window and gain an edge to drive market share gains. This technology provides everything from route optimization to real-time delivery updates, saving us time and money while producing higher customer satisfaction in the process.

Given this information, SGMD’s plans to expand seem grounded in sound strategy. The company has already submitted all documentation for the opening of a second Nug Avenue location and is ready to take whatever additional action is required in order to officially open the new location. And that’s just the beginning. SGMD management is also looking for additional properties for further expansion, including outside of the LA marketplace.

Expanding its Nug Avenue piece isn’t the only growth in Sugarmade’s future. The company is taking active steps toward the first planting at its subsidiary Lemon Glow, a large 640-acre outdoor cultivation sit. SGMD is waiting for the final go-ahead for the 2022 planting season.

Sugarmade has set its eyes on expanding its end-market access as a central player in the growing California cannabis delivery marketplace while also developing its in-house cannabis production capacity to verticalize operations in the space. Through a combination of organic growth and strategic acquisitions, Sugarmade is working to develop a full farm-to-door vertically integrated cannabis business. The company’s brand portfolio includes CarryOutsupplies.com, SugarRush(TM), NUG Avenue, Lemon Glow and Budcars.

For more information, visit the company’s website at www.Sugarmade.com

NOTE TO INVESTORS: The latest news and updates relating to SGMD are available in the company’s newsroom at http://cnw.fm/SGMD

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