SLANG Expands its Footprint and Launches Multiple Partnerships in Q3

Image from Brittany Hallett (SLANG Worldwide)

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

Canadian-based multi-state-operator (MSO) SLANG Worldwide Inc. SLNG SLGWF had a productive 3rd quarter forming and maintaining strong partnerships with top cannabis companies Trulieve ((TCNNF), Natura, and Snowcrest. Here’s what you need to know.

Lasting Partnerships and a New Acquisition

On September 7, 2021, SLANG announced that its best-selling premium vape product line, O.pen Daily Strains and Live Resin, as well as popular brand District Edibles, will be available in Massachusetts, exclusively with Trulieve Cannabis Corp. SLANG also announced recently they are entering into a strategic partnership with Trulieve to service the Pennsylvania and West Virginia markets.

Trulieve, a top-performing cannabis company in the United States, previously partnered with SLANG in the Florida market. However, Massachusetts will be the first time that both companies work together on wholesale initiatives.

Massachusetts is the first U.S. state on the east coast to legalize both medical and adult-use cannabis. SLANG’s ability to enter the market so quickly indicates the company’s reputable status, quality branding, and skillful leadership.

Other partnerships announced mid Q3 include Snowcrest, to distribute in Washington, as well as with Natura Life + Science in California. Also in July 2021, the company announced the acquisition of Vermont's largest vertically integrated operation, High Fidelity.

This merger expands SLANG's operational footprint by including a 28,000-square-foot cultivation, production, lab, and distribution facility. The company has planned a 50,000-square-foot addition to the facility with expected completion in 2022, the same year that Vermont recreational sales are predicted to begin.

If it isn’t clear by now, SLANG intends to become a lasting legacy in the cannabis community. The company has worked towards this goal by building on a foundation of strong partnerships, branded products, and proven processes. And it seems to be paying off, as many of SLANG’s partnerships have lasted upwards of 7 years.

Consistency Breeds Confidence

SLANG is soon to have products in 15 states, Canada and Puerto Rico, in over 3,600 retail locations. Its portfolio consists of 5 distinct brands and a product portfolio of 65 stock-keeping units. The company’s products are regularly top performers country-wide from Portland, Oregon, to Portland, Maine. 

How did the company achieve such success, and how does it maintain sustainable growth?

Although the company was officially founded in 2017 and went public in 2019, the SLANG team has over 11 years of experience operating in legal cannabis across numerous state markets and in nearly every product vertical.

With over a decade of experience, SLANG recognizes the importance and impact of strategic branding. And the company has been leveraging these skills to cast a wide net with the aim of becoming one of the world’s most well-known brands.

SLANG seeks to produce uniquely positioned, scalable brands and products in some of the highest volume cannabis consumable categories with proven track records of success. It also works to ensure that consumers receive high-quality and consistent products from the SLANG family, in turn contributing to customer loyalty.

With the ambitious vision to be the most widely distributed house of cannabis brands worldwide, how does SLANG get in front of as many consumers as possible? “By entering emerging markets and creating what we call ‘branded moments’ where new consumers get to experience our products first,” CEO Chris Driessen explained. 

“It’s all about consistency. Simply put, the more consumers view our brands, the more likely they are to rely upon our products. If they can see SLANG products on shelves across the country, then they know we’re trustworthy and the best in the game.”

That’s the SLANG strategy toward positioning itself as a leading cannabis company: cast a wide net, stay capital-light, and partner with best-in-class operators.

Other partners of SLANG include GAGE Cannabis Co. GAEGF, Elite Cultivation and Processing, Canopy Growth Corp. CGC, among others.

The Benefits of Partnering with SLANG

As SLANG puts it, “working in a nascent and highly regulated industry isn’t for the faint of heart,” so it’s crucial to find partners with experience and proven strategies toward being a successful operator.

With regard to how the company stands out amongst competitors, Driessen commented “We don’t simply license our brand, where we get all our margin upfront, we develop strategic partnerships that are based on product success in their respective markets. This also allows us to consult about equipment, help optimize production processes, be in market to assist with sales and marketing initiatives all while keeping capital-light. After all, who knows our brands better than we do?”

Driessen followed up with “Additionally, we own and operate the oldest licensed extraction lab in the country, which has been in business since 2010. So we’ve figured out by now how to do things right, and we’ve learned a lot from when we’ve done it wrong.”

SLANG sells packaging and hardware to its partners at cost plus and then takes a royalty, or success fee when the finished product sells in its respective market. This strategy means that SLANG doesn’t profit unless its partners do, perhaps one of the most attractive attributes of working with SLANG.

Further enticing offerings are the company’s "back of the house" support with equipment recommendations, standard operating procedures, yield optimization, and other cost efficiencies. Of course, the company does this to help make its products and brands in the most cost-effective way possible but also to assist its partners with improving operations for their own products and brands. 

This strategy ventures away from that of typical MSOs and is a true testament to SLANG’s commitment to the success of its partners. 

SLANG announced its revenue for Q2 2021 was $11.3 million, compared with $4.6 million in Q2 2020 and $9.9 million in Q1 2021. Continued growth in revenue is expected to be reported from Q3 2021 as well.

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.