Wildflower Brands Inc (CNSX:SUN) (OTCMKTS:WLDFF) (FRA:RSP) CEO William MacLean discusses the company’s CBD-based wellness products and significant West Coast footprint. While Wildflower does have cultivation operations, its primary focus is creating CBD products. Wildflower’s online sales of CBD products have grown 300 percent this year and the company’s annualized revenue is approaching $1 million. Wildflower focuses on the wellness sector because it believes the market for those products is much larger than the recreational market as CBD products have been legitimized by international organizations like the IOC and WADA. The company’s recent LOI with Retail Worx is not a retail push for Wildflower, but rather a product marketing opportunity as MacLean believes online sales are the key to Wildflower’s financial success.
James West: Hey, welcome back. My guest this segment is William MacLean. He’s the CEO of Wildflower Brands Inc., trading on the CSE under the symbol SUN. William, welcome to the show.
William MacLean: Thanks, James.
James West: We’ve chatted before, and it looks like you’ve made some great progress since we last chatted. October 4th, you announced that you’d seen a 300 percent growth in online sales; tell me about the business again, just to refresh the audience’s memory, and what’s the essence and nature of your sales?
William MacLean: Well, essentially our business now has pivoted a little bit. We were always focused on creating wellness products, mainly CBD-based. We do have THC based and cannabis products for regulated markets in the US. Most of our business is in the US right now. We’re in about 150 stores in Washington; we’re in over 70 stores that are just holistic wellness stores nationwide, and we’re in 20-some-odd stores in the California marketplace.
James West: Oh wow, okay, so you’re going to be in Canada and the US?
William MacLean: That’s the idea.
James West: Huh. That must make it interesting to cross the border.
William MacLean: It does.
James West: Yeah, I’m sure. Okay, so you are creating products that you grow the cannabis yourself, or you make the products from cannabis supplied by other growers? Or, what, how exactly, what’s sort of the line of products?
William MacLean: It depends on the product. We have products in the regulated market, for example, and those products come from licensed growers or partners in those markets. In California we’ve also acquired licenses to do that as well. But our main focus is creating products. So our CBD-based products sell online, the hemp comes in from Europe, and then it’s extracted in the US and then we’re able to then sell it online through the States. By importing we avoid the state-level that makes state commerce very difficult.
James West: Interesting. And how is it that you became listed on the Horizons Index ETF?
William MacLean: In all honesty, they just listed us – I have no idea. I mean, we’re building a company here, and moving the business model forward, and that’s something that just happened.
James West: Wow, okay. So then you say that your sales have grown online by 300 percent in a year; in most provinces in Canada, you can’t sell recreational products online, can you?
William MacLean: No, you can’t, and that’s one of the main reasons we focus in the wellness sector – CBD. That market, for us, we feel is much larger than the cannabis market. If you look at the nutraceutical industry last year, you’re north of $60 billion. So that’s really the market that we’re going after, and as you probably tell by the new products that are provisionally in the marketplace, that there’s a huge movement right now to start focusing on holistic health and more plant-based remedies with pharmaceutical products.
James West: Right. Do you think that the movement in CBD legislation around the world is trending towards a complete de-scheduling in terms of consumption, or is it as an ingredient in foods, or is it more just a rescheduling tool, lesser sort of controlled state?
William MacLean: Well, if you look at some of the international bodies – for example, like the World Anti-Doping Association or the Olympic Committee, they’ve all de-scheduled CBD. Even the World Health Organization has recommended all developed nations to de-schedule CBD. So there’s definitely that.
James West: Right. So do you see a movement towards growing sort of hemp as opposed to premium flower in Canada on a larger scale outdoors as the rules change, thereby lowering the input costs of the CBD as an ingredient?
William MacLean: Well, Canada is the second-largest hemp producing nation in the world. It just hasn’t been legal to extract the CBD from the plants. So what we really see happening in the marketplace is the active ingredient becoming more readily available, and allowing us to provide more value to customers with it. You know, its 80 percent of our income now is the CBD.
James West: Hmm, interesting. So, will you move into recreational products more after October 17th, or are you going to stay focused on the wellness?
William MacLean: Well, the reason we changed our company’s name to Wildflower Brands, we started acquiring companies that are both within the wellness sector and also the regulated cannabis sector, and so we really wanted to differentiate the various companies that are working on that side or the other. So if you look at our California acquisition of extracts, that’s solely a THC-based company. So any product that we would like to introduce into that market, it definitely works to introduce it with that brand.
The idea is really to create Wildflower wellness from the wreckage.
James West: Oh, okay. And so your Retail Worx, your LOI with Retail Worx, is that a definitive agreement at this point, and is that sort of key to your US strategy, is having physical stores in the US?
William MacLean: We weren’t looking at retail stores as a strategy for us. We really look at this as a big marketing opportunity to introduce our products to a really large audience. The Manhattan marketplace is very trendy; they are the ones that start a lot of youth movements, and we feel that this is the right move from a marketing perspective.
We do want to start really pushing our online sales, our seedless organic growth happened naturally, and we do feel like having a bigger presence in some of these major markets that helps afford those online sales and strategy, but we’re not looking at having hundreds of stores.
James West: Right.
William MacLean: We’re just talking one or two stores in every major market.
James West: Sure. Okay, that’s a great update, William. We’re going to leave it there for now; we’ll come back to you in a quarter’s time. Thanks for the update.
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