Green Peak Innovations in Lansing, a vertically integrated cannabis operator, today provided an update regarding the company’s COVID-19 response, second quarter performance, and plans for growth across Michigan.
Jeff Radway, co-founder and CEO of Green Peak, says the company has remained fully operational throughout the COVID-19 pandemic as cannabis cultivators, processors, and retailers were deemed “essential” by the state of Michigan. We “remain focused, flexible, and agile throughout this uniquely challenging operating environment.”
The company, which instituted a 20-percent gratitude pay increase for all frontline employees in cultivation, operations, and retail, offers curbside pickup in accordance with guidelines provided by the Michigan Marijuana Regulatory Agency.
In recent weeks, the company opened three new Skymint retail stores, two in Lansing and a third in Traverse City. The new locations opened successfully for curbside pickup and anticipate welcoming guests into brand new sales floors when conditions are deemed to be safe.
With the additions, Green Peak now operates nine Skymint-branded retail stores in Michigan with at least three more locations planned to open before the end of 2020. The company has an additional 10 stores in development and expects to have at least 25 stores open or in development by year end.
In May, Green Peak also introduced two new brands to its product portfolio — the Jolly Edibles line in partnership with Short’s Brewing Co., with three flavors inspired by the brewery’s beverages. Green Peak also introduced a value-oriented flower product line in Two Joints with a portion of every product sale going to the Last Prisoner Project in support of the organization’s clemency efforts.
Over the last year, the company said it has added more than 165 clients out of a total addressable market of roughly 200 accounts, with 50 of those clients added in just the past two months. With additional cultivation and processing capacity expected later this year and plans to launch additional brands to support the expanded output, the company anticipates further ramping up its share of shelf and leadership position in Michigan’s wholesale market.
During the second quarter, the company said it grew net sales by approximately 50 percent sequentially within both the retail and wholesale operations. Additionally, the company states it continues to generate solid operating profit margins as well as positive operating cash flow.
“As we enter the second half of the year, we expect to build on our financial momentum with significant sales and profit growth,” says Radway. “With additional cultivation and processing capacity poised to come online later this year, we fully expect this momentum to continue, and potentially accelerate, heading into 2021.”
Green Peak is the state’s largest medical and recreational license holder. With two indoor grow facilities, the company cultivates, processes, markets, and distributes a full range of branded cannabis products.