Pita Pit Partners With Canadian Cannabis Company

Pita Pit is jumping on the cannabis bandwagon. This week, it was announced that the food chain struck a deal with WeedMD inc, a cannabis company in Canada to open a new venture.

Together the companies will be opening Pioneer Cannabis Co. Inc., that will be focused on helping entrepreneurs open cannabis stores in the private market.

"Our objective is to be a competitive player in this marketplace as it grows," said Jordan Schwartz, chief executive officer at Pioneer Cannabis Co. Inc.

When Canada legalized cannabis last October, distributors were battling it out to get product, especially in the private sectors. There are two markets when it comes to Canada's new cannabis industry- the private cannabis market and the federal government-ran market.

Multiple provinces in Canada, including Alberta, have opted to have private retailers sell cannabis versus having government-controlled stores.

But Provinces with the government-controlled stores have also struggled to meet the demand for cannabis. Stores in Quebec, for example, have been restricted to open for just four days a week in the past.

Pioneer Cannabis Co. Inc. will be focusing on the private sectors. Even with the cannabis shortages and the initial operational challenges of the new industry, Pioneer and Pita Pit see a lot of potential in this retail market.

"We believe that there's capacity here for the retail network that we're servicing to generate sales in the $30 million to $50 million range that shows profitability and demonstrates that there's a sustainable business here," said Schwartz.

Pita Pit, which has 225+ stores in Canada, plans to use its franchise experience to attract business owners who want to get into the booming cannabis industry.

"We’ve spent years learning and perfecting the skills we have in our businesses such as finding locations and hiring people," said Chris Fountain, chief executive officer of Pita Pit to "BNN Bloomberg" in a phone interview. "Quite frankly, it's probably a once-in-a-lifetime opportunity for something like this."

WeedMD will have a 9.9 percent stake in most of the Pioneer Cannabis stores and the rest of the stake will be divided by Pita Pit and the store franchises.

Learn more about the partnership at "BNN Bloomberg" now.

The edible cannabis market is exploding in both the U.S. states where cannabis is legal and Canada. Listen to this recent episode of The Barron Report below where Host Paul Barron discusses with Nancy Whiteman, founder and CEO of Wana Brands about what the future of the cannabis industry looks like in both the U.S. and Canada and how it will impact the foodservice industry.

The Future of Edibles in the U.S. and Canada

On this episode of The Barron Report, Paul Barron is joined by Nancy Whiteman, founder and CEO of Wana Brands, the leading edibles company in the Colorado medical marijuana industry in terms of quality, consistency, and potency. The two discuss future innovations, laws, and potential brands entering the marijuana industry.

Wana Brands’ products are in over 450 dispensaries and account for $2 out of every $10 spent on edibles in Colorado. The company under Whiteman’s guidance has expanded to Oregon, Nevada, Arizona, and Illinois with hopes to expand their market in Florida and several other states.

Listen to this episode of The Barron Report for more insights on what the future will hold for edibles in the U.S. and Canada and how it will impact the foodservice industry.

SHOW NOTES

  • 17:37 - Edible Sales to Reach More Than $4 Billion by 2020

  • 19:12 - From Drug Trade to Grown Commercially in the U.S.

  • 22:22 - Bigger CPG Companies Looking to Enter the Cannabis Sector

  • 26:18 - What’s Next for Wana Brands

  • 1:00 - How Wana Brands Became an Edible Company

  • 4:06 - How Edibles are Expanding into the Foodservice Industry

  • 7:15 - Cannabis-Based Stocks

  • 9:03 - Predictions for Public Consumption in Restaurants and Bars

  • 15:18 - Dissecting Dosages for Medicinal and Recreational Use

 
 

Why the Cannabis Edible Market is Expected to Boom in Canada

We recently reported that the edible sector in the cannabis market is expected to hit $ 4.1 billion by 2022 in both Canada and the U.S. according to recent report by Arcview Market Research.

This significant growth is partially attributed to Canada rolling out legalized cannabis earlier this week.

However, the cannabis industry is a heavily regulated industry and in the U.S. and this presents some challenges. Even in the U.S. states where cannabis is legal, the regulations differ from state to state.

So popular products like Nancy Whiteman’s cannabis caramels can be sold in Oregon but can't be sold in Colorado because they are too buttery to hold the imprint of the THC symbol.

With that in mind, Whiteman's Colorado-based cannabis company is focusing on different markets when it comes to some of its edible products.

"Nancy Whiteman’s business is exploding. Wana Brands, based in Boulder, has zoomed from approximately $100,000 (U.S.) in sales in its first year in 2010, to more than $14 million last year," writes "The Star." "Wana — “Wana enhance your life?” — is pushing toward control of a quarter share of Colorado’s edibles market while keeping an eye on developments in other states and, enticingly, Canada."

Whiteman, along with other U.S. cannabis businesses , is looking into partnering with Canada companies to get into the soon to be exploding market.

“We have talked with many LPs (licensed producers) in Canada and are still making a decision on partners, but fully intend to be in Canada once edibles are legal," said Whiteman.

But there are still regulatory hurdles to overcome in the edible market.

The Washington State Liquor and Cannabis Board announced earlier this month that cannabis-infused products that could be accidentally ingested by children like candies and lollipops will no longer be allowed to be sold.

Does this mean that Canada and other U.S. states will soon implement similar rules?

Consumers spend the most on the candy cannabis subcategory in Colorado, followed by chocolate at a close second.

Learn more at "The Star."

As the cannabis industry booms, CBD the legal non-psychoactive compound found in the marijuana plant is also on the rise. CBD-infusions are now being served in cities across the country. Listen to this recent episode of The Barron Report below to learn how CBD is making an impact in the foodservice industry.