Today we will be sitting down with the CEO of Molecule Holdings Inc. (CSE: MLCL) a craft craft-focused cannabis beverage production company that has been making big moves in the cannabis beverage space and we’re pleased to have The CEO, David Reingold with us today! Hello David and thank you for joining us todays’ interview!
- 1) For those that are just finding out about Molecule Holdings, could you tell us what the company does and how it began?
Molecule was created to participate in the highly lucrative cannabis infused beverage market in Canada. The business includes a high-speed manufacturing facility in Eastern Ontario and a team of industry experts that provide services including beverage manufacturing, product and brand development, distribution services, regulatory compliance and co-packing
- 2) MLCL announced that it will be introducing two new products, a coffee infused beverage which is expected to become available during Q1 of 2022. Could you tell us what lead the company to create such an innovative product, and where it will be available to consumers first?
The brand creation team uses consumer and category insights to develop both brands and flavour profiles that will appeal to novice consumers seeking a new cannabis experience as well as enthusiasts looking for alternative flavour and cannabis profiles.
- 3) The company recently announced that it has amended its sales licence which would allow MLCL to distribute products across the country. When does the company expect to have its products available in new provincial, and if so, which products does the company expect to launch?
Our first province outside of Ontario will be British Columbia. The multi sku entry will include the recently announced Cannajo branded products. Our first launch outside Ontario is being prepared now and will ship this month.
- 4) Molecule has added a new member to its team recently, and we would like to know what is the strategy behind its newly added team member and what will be their role at Molecule?
The team recently expanded to include a provincial lead to manage new province expansion. Retail penetration team to increase store count in province and an in-store activation team to help with consumer marketing and product education.
- 5) What are the company’s expansion plans to drive continual shareholder growth in 2022?
Molecule will focus in three key areas through 2022
- 1. Adding new provincial markets to increase both volume and brand presence in the Canadian markets
- 2. Thoughtfully adding to both branding and flavour profiles to advance our Canadian offering
- 3. Deploy store teams to engage consumers and budtenders on our brands, products and unique flavour profiles.
- 6) Why did Molecule shift its focus to more brand development than co-packing?
We feel the market is being driven by price, cannabis inputs. Great consumer experiences in those areas are the pillars for great brands. Our strength is brand development and a direct model of manufacturing direct to the provinces. This allows us to aggressively price our products to create consumer trail and help drive the overall beverage category.
- 7) Why did you choose the beverage category and why the slow start?
We chose the beverage category because we believe long term it will be the category leader in the edible market.
- 1. Cannabis is social and beverages are a natural social connector.
- 2. Beverages are the cleanest form of consumption. No smoke, No smell, No preparation
- 3. Cannabis beverages are also the perfect alternative to alcohol and the perfect accompaniment for veteran beverage users to compliment other intake methods.
The Category starts from scratch as there was no legacy illegal market like gummies and other edibles. We are teaching consumers one day at a time. This is the reason Molecule is executing with sales and activation teams designed to move new consumers into the category.
The market is new will take some time to develop. It needs to be driven by great experiences and ultimately new consumers entering the market. Beverages serve as that familiar conduit to enjoying a social cannabis experience unmatched by any of the current delivery methods in market.
8) Explain the current beverage landscape in Canada and why Molecule can win.
One of the other reasons we chose beverages in Canada is because of its barriers to entry in the marketplace.
- 1. High cost to set up a competitive and scalable beverage operation means there are only a handful of LP’s active in the Canadian market.
- 2. Most beverage LP’s are large and fragmented and have significant corporate costs and structures. Molecule is lean and nimble and can move quickly to take advantage of a market that is moving quickly.
- 3. Molecule is the only Canadian LP who is solely focused on beverages and the creation of a healthy beverage category.
- 4. Molecule facility was designed to excel in small batch production with downstream high speed production capabilities. Together that allows us to run efficiently sooner while still being highly competitive as we scale to much larger volumes.
Forward Looking Statements: This article may contain "forward-looking information" (as defined in applicable Canadian securities legislation) that is based on expectations, estimates and projections as of the date of the content is published on this website. Wherever possible, words such as "anticipate", "believe", "expects", "intend" and similar expressions have been used to identify these forward- looking statements. Information in this article has been furnished for your information only, is accurate at the time of posting, and may be superseded by more current information. Except as required by law, we do not undertake any obligation to update the information, whether as a result of new information, future events or otherwise. This article should not be considered as personal financial advice. Full Disclosure: Molecule Holdings Inc. is a client of the parent company of EquityInsight.ca. Directors of the parent company of EquityInsight.ca may buy, hold, or sell the securities before during or after this publication.