Gabriella’s Kitchen Inc (CNSX:GABY) (OTCMKTS:GABLF) is a cannabis wellness company operating in California. CEO Margot M. Micallef provides an update on the company’s product offerings as well as details about possible expansion. The company’s non-infused products are sold throughout the US and its THC-infused products are sold in California. The company is expanding its infused product line to include topicals and oils, such as infused cooking oils. Gabriella’s Kitchen is looking at possible Canadian expansion as well as product licensing agreements in additional states. Micallef anticipates the Farm Bill’s legalization of industrial hemp will be a significant catalyst for the company. The company’s non-infused products are currently sold in 3400 retail locations, and Gabriella’s Kitchen is working with its partners to create a similar retail footprint for its infused products.
Margot M. Micallef: We are a cannabis wellness company. We have a number of different brands: edibles, supplements, nutraceuticals, oils, etcetera, and we also have a line of uninfused products that are in the mainstream market.
So we started out life as a wellness company focusing on food, and we’re expanding into topicals, oils, nutraceuticals and tinctures, etcetera.
James West: Well, fantastic. And do you sell your products mostly in the US market, or in Canada?
Margot M. Micallef: We sell mostly in the US market; we have a manufacturing facility and a distributing company, so we hold a manufacturing license and a distributing license in the State of California, and we sell most of our – well, all of our infused products, all of our THC-infused products are currently sold in California and our non-infused products are sold throughout the United States. We have a little bit of a market in Canada, but we’re primarily US-focused.
James West: I see. And is your plan to stay US focused or do you have a plan to expand as laws permit, or what exactly is your strategy for the growth of the company?
Margot M. Micallef: We have global domination in mind. So we want to expand into markets as appropriate and as they are coming online, and our goal is to move to Canada this year. We have an interest in the other states in the US, but they’re secondary markets for us because they’re smaller markets. And you might know that in the US, you have to manufacture in the state in which you are selling; so we own our infrastructure in California because that’s the largest and most important cannabis market in the world, it’s also a very important wellness market.
But in the other states that are adult-legal, the population base is much smaller, so the economics of owning our own infrastructure, i.e. manufacturing in particular, doesn’t make as much economic sense. So we’ll probably enter in to license arrangements in those states, but they’re secondary markets. So we’ll consider our strategy in due course in those markets.
James West: Sure. I’ve been down to California quite a bit this last year, investigating the cannabis market there, and the one commonality I find with all of the outlets, the dispensaries that exist, is that there’s a huge selection of various products relative to what’s available in Canada, where we can’t actually even get edibles yet. How does a company like Gabriella’s Kitchen differentiate itself from the continuously emerging array of edible products out there?
Margot M. Micallef: So our products are all science-based. So the oil plant, which is our manufacturing company that we acquired, actually uses different technology than other companies do. It’s a proprietary technology that they use. They make very high-grade, very clean oil extracted from cannabis, an that’s the basis of the oil that we use in our edibles, as well as in our tinctures and concentrates and in our other products.
We’re also very wellness focused, so all of our ingredients tend to be focused on the wellness market. So even our – well, so for example, we launched a line of very high quality cooking oils, olive oil, truffle oil, garlic oil, etcetera, and those are infused with CBD and THC, and it’s a very high quality product; it’s a premium product. We’re not in the space too much to compete with the gummy bear and those lower end candy companies; we’re really looking to normalize cannabis consumption, so we want consumers to be able to control their dosing, hence we’re focused on butters oils, spreads, sauces, and things like that it’s very high quality premium products focused on wellness. So this is a people who consume our products are interested in using cannabis to feel good and to be healthy.
James West: Okay, do you have products that have THC as an active ingredient that do not get you high because the TCH-A has not been converted into THC Delta-9 during your process? I’ve heard that there’s quite a demand for THC products but where the TCH is not activated so it doesn’t get you high. Is that something that you guys have?
Margot M. Micallef: We don’t actually sell products like that yet, but we are very interested in doing so. So products like that would be products that you would not heat. So the products themselves, THC-A has to be decarboxylated before it actually becomes psychoactive and becomes THC, so in the heating process of extracting the cannabis oil, at present we decarboxylate the THC-A. So it is psychoactive in our ingredients at this point. We are interested in ways for looking at ways that we can actually use THC-A, which is not decarboxylated, it’s almost like a cold-pressed oil, so we’re working on ways that we can actually extract that kind of oil and use it in our products.
James West: Oh great. So what now is your best-selling product?
Margot M. Micallef: You know, I don’t know the answer to that. We have a variety of different products; our tinctures are very good-selling products; the quality of the tinctures is very high quality. They are actually featured in the film called Weed The People. It’s a film about how five families, over the course of five years, used cannabis to treat cancer that their children were suffering, and Mara Gordon, who is the founder of the oil plant who’s our Chief Research Officer, who’s featured in that documentary. So those oils were really high quality oils and they’re very popular.
Our flower, also, we brand a line of flower under the Sonoma Pacific brand. It’s also very popular; we use Appalachian Farms in northern California in the Sonoma Valley, and they make a very popular, very high quality, very enjoyable flower that people can consume through smoking.
James West: Okay, great. Finally, Michelle – or sorry, Margot – what are the big catalysts that are going to happen for your company that’ll drive big shareholder value in 2019?
Margot M. Micallef: Well, CBD in the mainstream market is a really big part of our strategy, and I frankly think it’s the biggest opportunity for us in the cannabis space. We are now working with our retail partners – we’re in 3,400 retail locations with un-infused products, so we have retail relationships of very well known, very reputable, very respected brands across the United States including Sprouts and Vaughan’s and Bristol Farms and some other very well-known natural and organic health food stores.
And they’re all interested in CBD. Consumers are really pushing retailers into bringing on CBD products, and we see that as t he next step, and we’re embracing that wholeheartedly, have developed, are acquiring, to get into that mainstream consumer channel.
James West: Okay, well, that’s great, Margot. We’re going to leave it there for now, and come back to you soon. Best of luck; it sounds like you’re knocking it out of the park, and I can’t wait to see your products in Canada. Thanks for joining me.
Margot M. Micallef: Thank you. Look forward to it as well. Thanks for having me.
James West: You bet.
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