- Cannabis industry set to quadruple to $47 billion over next 10 years
- Sugarmade strategy centers on supplying “picks” and “shovels” to growers
- Focused on the supply of hydroponic cultivation systems
Getting cannabis to market involves many stages. Before you can sell it, you have to grow it and perform myriad operations to ensure that’s done right. So, if you’re growing cannabis, it may be a good idea to turn to Sugarmade, Inc. (OTCQB: SGMD). The company is one of the largest publicly traded hydroponics supply companies, with brands that include Zen Hydro, Carry Out Supplies, BudLife Cannabis Storage Solutions and Cali Grown Supplies. With a finger in so many pies, Sugarmade is poised for growth as the cannabis industry continues its exponential expansion. Spending on legal cannabis is projected to quadruple to over $47 billion over the next decade from its present level of about $11 billion (http://cnw.fm/5NOOy).
Headquartered in Monrovia, Los Angeles County, California, Sugarmade has been operating in several areas. The company is a supplier of generic and custom printed products to the quick service restaurant sub-sector of the restaurant industry, but its main focus is on the supply of hydroponic and other cultivation systems, with particular emphasis on the cannabis industry. Sugarmade aims to become a major force in the cannabis cultivation market as a supplier; however, the company will not be directly involved in the cultivation, processing, distribution or marketing of cannabis. Sugarmade will simply be supplying the “shovels” need to work the cannabis “gold rush.”
A revealing piece published by CannabisNewsWire details the M&A activity currently taking place in the cannabis space (http://cnw.fm/eR6sj). Sugarmade, one of the featured companies in that report, has been consolidating its position in the sector. Its four divisions run the gamut from grow solutions to storage. ZenHydro is its online hydroponics store, which offers grow tents, lighting, nutrients and additives, instruments and tools and nearly everything else you need to grow cannabis. Then there’s CarryOutSupplies, which serves the quick-serve restaurant sector with essential supplies such as cups and spoons and bottles.
Through this unit, Sugarmade is already a significant player in the market for generic and custom printed paper, as well as other goods for the quick service restaurant industry. The larger competitive suppliers that service this sector usually require restaurant customers to place large orders, but CarrryOutSupplies allows these smaller establishments to gain the marketing and advertising benefits of customized printed products without tying up large amounts of working capital. Plans are afoot to increase the number of products offered, and a new business unit – CaliRestaurantSupplies – will market and distribute those products, with the aim of increasing its customer base beyond the current 2,000 or so takeout establishments, restaurants and other food service operators.
The company’s fourth business unit is BudLife Cannabis Storage Solutions, which offers a novel way to preserve the quality of cannabis flowers over long periods. Introduced in late December, the BudLife system has been able to preserve the integrity of cannabis flowers for up to six months.
With so many bets placed on the burgeoning cannabis industry, one is bound to pay off for Sugarmade. After all, it’s been said that more money was made from supplying pickaxes, shovels and blue jeans than was made from mining during the great California Gold Rush.
For more information, visit the company’s website at www.Sugarmade.com
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