Advantis announced that it is finalizing an agreement to provide Amster-Can and other Advantis branded products to a licensed manufacturer and seller in Colorado.
While the company nears production capacity on the newest Amster-Can canning machine at its home-base in California, Advantis continues to expand its network in California. The larger size see through cans and child-proof lids N2Pack developed has already received several thousand pre-orders in time to implement California’s strict packaging laws for the recreational cannabis industry.
Advantis CEO Darren Cherry, says the company has been working to expand into Colorado for some time.
“There were significant barriers to entering the Colorado market in the beginning,” Cherry explains. “We’ve developed relationships over time and have now found the perfect licensed manufacturer and seller to partner with.”
Details of the pending agreement include Amster-Can packaging and other branded and co-branded products. “It’s a competitive landscape, and this is the first step toward proving ourselves in the state and further establishing our brand name across the nation.” Cherry says details of the agreement are similar to the arrangements made in Oregon and Nevada; upon finalization of the agreement, the licensed manufacturer will go into full canning production.
Since Cherry began as CEO in September, Advantis expanded its Amster-Can operation into Oregon and Nevada with partners that have enough product to reach packaging capacity with their daily volume. This expansion is made possible through their solid partnership with N2pack, which supplies the patented packaging equipment to Advantis.
“We learned that in order to expand into other states, we must be nimble and responsive to the evolving marketplace. We’ve developed a turnkey process to provide equipment and manpower to package goods anywhere around the globe,” Cherry said. “It’s just a matter of time, exposure, and marketing… and of course building great relationships.”
Cherry has been building on the relationships the company established in California, but brings much more to the table than the Advantis Board could have hoped for. “In just 3 short months, Darren Cherry has accomplished what we have been working years toward: national expansion,” said Advantis Board member, Woo Kim.
“We just received the larger packaging machine to keep up with production in California when we brought him on board; it is already nearing capacity with thousands of pre-orders for the California recreational market on deck. This is all thanks to Darren’s integrity, established client network, and amazing branding and marketing skills. His logistical development to create this scalable business model is unmatched in this industry. Oregon, Nevada, and now Colorado… the Board couldn’t be happier with its choice of leadership,” Kim concluded. He was sure to include that Cherry is currently implementing a plan to more than double California Amster-Can production.
While Oregon, Nevada, and Colorado have had recreational cannabis laws for some time, California is quickly becoming the largest marketplace, with recreational sales expected to top $6 billion this year. “California is our home base for a reason,” Cherry stated.
“This is where it all started. This is where medical cannabis got the ball rolling toward full legalization across the nation, over 20 years ago. This is where I’ve had and have been building my relationships over the decades. I’ve found my home at Advantis and have invited my network to join me.” Cherry says the company is currently in negotiations with several companies in Northern and Southern California to become their exclusive packaging provider.
“Each opportunity is unique, and we will further penetrate the Northern California cannabis market. We are near capacity with the newest packaging equipment, so we will be ordering additional packaging machines — whether it will be several ‘mobile’ units or another larger machine in our home office, depends on the type and size of agreements we make with our newest partners. When these deals all finalize, we will have more than doubled California packaging capacity… while we are working on further national expansion,” Cherry related.
Every company that Advantis is currently negotiating with has their current medical cannabis license and temporary recreational licenses from the state of California. “Pre-sales of the California recreational-compliant packaging are through the roof,” Cherry exclaimed.
“The larger cans and see through packaging is in high demand, as California’s child-proof packaging laws take effect. New sizes equal more shelf space, more shelf space equals more revenue per square foot of dispensary. All of our clients recognize the branding and marketing opportunities, and the nitrogen-fresh canning process is part of that marketing story.”
California requires specific labeling verbiage and child-proof lids for cannabis sold in the recreational marketplace.
Advantis developed a branding and co-branding process to custom design labels for the patented packaging to include branding and marketing space, in addition to the required language to be in compliance with state law. “The future is bright and getting brighter by the day. 2018 is proving to be the year of rapid expansion for Advantis, and I will ensure we responsibly keep pace with this massive rise in demand,” Cherry concluded, alluding to plans to order new machines and independent contractors to achieve the company’s expansion goals.