This Cannabis Company is Spreading Its Rebel Spirit Nationwide

Courtesy of Rebel Spirit

This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.

A cannabis company that began as a way to preserve the legacy of notorious rebel, “Uncle Mark” Ingraham, has evolved into Oregon’s best-selling pre-roll brand — Rebel Spirit.

Ingraham, who was arrested in 1992 in what was touted as the biggest outdoor cannabis growing bust in Washington, died in prison in 1997 — just halfway through his sentence.

Rebel Spirit aims to honor Ingraham’s memory by adhering to sustainable growing practices and using recyclable packaging when regulations permit.

As the company gears up for expansion into new markets, it’s looking at states that have the lowest barrier to entry while offering the potential for Rebel Spirit to dominate the pre-roll market.

Based in Oregon, Rebel Spirit is the flagship brand of Alvadore Holdings, a vertically integrated family of cannabis companies. The brand’s eight proprietary strains are offered in more than 80 dispensaries in Oregon. Rebel Spirit recently won the Best Pre-Roll In the Oregon Growers Cup 2021.

In addition to pre-rolls, Rebel Spirit offers flower and edibles and is in the process of developing CBD products, plant nutrients, and production machinery. 

“The industry needs value-added products because cannabis in and of itself is just a commodity,” said Diane Downey, the company’s co-founder, and CEO. “New companies in new states need a go-to-market brand right now and developing a reputation takes time.”

The company recently expanded into California, where it is working with statewide distributors and brand ambassadors and projecting $180,000 in sales per month by the end of the first quarter. To start, California sales will be handled by Terp Wholesale of Sacramento, which will be supported by Trust Tree’s brand ambassadors who will host vendor days at each of its retail partners each month.

Competition from multistate operators like Massachusetts-based Curaleaf Holdings Inc. CURLF and Chicago-based Cresco Labs Inc. CRLBF, which sell pre-rolls through their dispensary partners, might make it crucial for Rebel Spirit to hold fast to its values if it’s going to succeed outside of its home state.

The company is planning a phased approach to its expansion, with the first phase including Nevada, Arizona, Illinois, Michigan, and Massachusetts.

A Sustainable Revolution?

The company grows its plants organically on Uncle Mark’s Farm, a 19-acre spread in Oregon’s Willamette Valley that includes 13 greenhouses and water rights. It harvests about 6,000 pounds of cannabis per year and sells about 350,000 pre-rolls monthly.

Regarding expansion, Downey said, “We want to work with partners in each state to keep capital expenditures low, and we’re using revenue-sharing models to get our brand to market. We need to keep a really tight handle on quality control because our reputation is so important to us.”

Founded in 2015, the company has released data that it has been profitable for three years and expects sales of $3.75 million in 2021 — up from $1.7 million in 2019. It’s the top-selling pre-roll brand in Oregon, capturing 7.5% of that market, according to cannabis market research firms BDSA and Headset.

The company expects similar success in California where it recently opened a pre-roll manufacturing facility. It plans to introduce new products and bring its pre-roll packages to retailers across the country.

The pre-roll market share in the United States has ranged from 7% to nearly 11% over the last three years, reaching a high of 10.9% in August, according to Headset. The pre-roll market share in Canada is much higher than in the U.S. Between August 2020 and August 2021, the monthly share of pre-rolls was an average of 18.6% while the U.S. average was 9.5%. Rebel Spirit anticipates the market trend of increasing pre-roll sales in the US to persist.

This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.