Launched one day after the Covid-19 lockdown, Union Electric has rapidly become one of California's hottest cannabis bran...
Good cannabis is expensive, but it doesn't have to be.
Euphoric, therapeutic, and medical cannabis has been consumed for thousands of years and has recently developed into a booming $17.5 billion US market. Union Electric is at the forefront of this expansion, which is projected to grow at a compound annual growth rate of 17.8% from 2020 onward. This fast-paced growth has created a gap in the market, however. While brands continue to chase growth, they have allocated infrastructure and marketing resources to new consumer segments at the expense of building a stronger relationship with everyday smokers, a critical customer base to the industry. Union Electric addresses this core user, which makes up a sizeable portion of California’s $4.4 billion market.
Affordable, quality weed for
Union Electric services the core cannabis consumer, the everyday smoker, through premium and affordable flower from California’s top cultivators. Responding to the needs of this already entrenched consumer is a win for the industry and the people. Union Electric has an asset-light business model. Rather than owning expensive infrastructure, we invest in building relationships and alliances with the leaders across the value chain. This gives us the ability to be nimble and adapt to market trends, while simultaneously granting us access to high-quality, high-potency cannabis. The result is great cost-savings for our customers.
Premium flower, fairly priced.
We’ve searched far and wide across California for the best cannabis. Along the way, we discovered advanced cultivation experts including the likes of Natura Life Sciences, Wave Rider Nursery & Kind Op Corp. We are proud to embrace transparency in our supply chain, giving customers inside access to our network of farmers, their processes, and unique facilities. The farms are much more than a vendor in our supply chain; they are the heroes who grow this special plant with love and care day-in and day-out. Union Electric is currently available in 1/8th oz and 1oz bags of flower. Head over to our website to see all the hottest strains and learn more about our farm partners.
High growth, higher potential.
Launched in March 2020 at the start of the global pandemic, Union Electric has gained impressive traction in the marketplace; resulting in $924,429 in revenue for 2020. In 2021, we’ve had great traction to date and are currently operating above a $4.8M annual run-rate which has been accelerated by launching with HERBL Solutions in February of this year. HERBL is one of the leading cannabis distributors in the state and has expanded our footprint to over 140 accounts across California.
With room to grow to over 850 retail access points, this establishes our path to becoming one of the state's top flower brands. Better yet, we plan to expand into new product categories including pre-rolls, edibles and pre-ground to fuel future growth.
What they are saying.
Union Electric’s products are purchased at retail channels by everyday consumers who value quality and affordability. 94.7% of Union Electric customers surveyed consumed cannabis at least once per day, and over 84% consumed it multiple times per day. Purchasing and daily consumption of top-shelf flower can cost over $3000 per year, a significant portion of yearly income for many California residents. We’ve attracted customers by meeting the quality standards at a fraction of the cost of leading indoor flower brands.
Union of Stakeholders.
Our asset-light model is similar to drop-shipping which is common across many other industries, where manufacturing and fulfillment are carried out by strategic value chain partners. We believe in a healthy and profitable value chain for all stakeholders. Sustained growth is not only important for Union Electric, but also for farms, distributors, and retailers — all of whom are critical to creating the best consumer experience in this emerging industry. Union Electric is ramping up production to meet our sales forecast of 1200 pounds of flower per month generating ~$1.4M in gross revenue.
$65B total addressable market by 2027.
Many cannabis brands have already won and lost market share in California in the early days of adult-use cannabis sales, and the industry remains immature and fragmented. The top-10 cannabis brands only accounted for 27% of the state’s $348.3M in sales in August 2020, while the top 5 beer brewers accounted for 79% of U.S. sales in 2019. A lack of trusted brands within an expanding market is enabling Union Electric to grow rapidly. Union Electric is at the forefront of this accelerating market; which is projected to grow at a CAGR of 17.8% from 2020 onward and reach $65.1 billion by 2027.
Attacking a gap in the market.
Unlike most flower brands, we've been able to bring quality product to market without draining customers' wallets. Although Union Electric buds are smaller than what consumers find in top shelf offerings, they pack a comparable punch in potency. We are fortunate to have a dedicated allocation of harvest from our farm partners. Additionally, while higher-end brands do harvest larger bud sizes, they also incorporate high-cost elements such as expensive packaging. This is notable within an already cost-prohibitive industry due to state and local taxes. On the lower-end of the spectrum, while some brands can deliver a great value on price, this is at the expense of freshness and potency.
Join the Union, Roll Together.
We’re excited to offer this investment opportunity to our customers and investors around the world. The name Union Electric was inspired by the punching-in and punching-out aspect of a union job. It also represents the Union of stakeholders that we serve: customers, cultivators, and retailers. Due to the evolving legal status of cannabis in the US, there are few opportunities to invest in cannabis brands. Offering stock through this Regulation CF raise is a natural manifestation of what Union Electric stands for, Collective Power. Additionally, 2% of our profits go to the local communities that have embraced the legal cannabis industry. We support the hardworking people that have entrusted us to steward the future of cannabis.
Backed by OpenNest Labs & leaders from cannabis, tech & entertainment.
Union Electric was founded in 2020 by OpenNest Labs, LA's leading cannabis venture studio that brings together top talent in order to incubate and accelerate the next generation of cannabis brands. OpenNest Labs is firmly rooted in the idea that transparency and education are vital to creating an equitable global cannabis market. OpenNest Labs investors include M13, Babel Ventures, Arcadian Capital and Red Light Management.
Previously: Google, Nike, Lowell Farms, Tikun Olam & Headwaters Cannabis