Report
Jesse Redmond

One of California's Largest Vertical Contract Manufacturing and Supply Chain Companies

LEEF Brands is a scaled, vertically integrated operator in the world’s largest cannabis market. With more than 39 million residents, California is the most populated state. If it were a sovereign nation, it would be the world’s fifth-largest economy. California is also a dominant force in cannabis. With $4.6 billion in sales in the last year, California represents about 15% of the $30 billion US industry. It’s not only the leader in size, but also in quality and culture. The company is vertically integrated, which enhances margins and provides greater control of the supply chain. Scale and vertical integration are key ingredients to winning in California and LEEF has both. LEEF holds the largest cultivation permit in Santa Barbara County. Salisbury Canyon Ranch is being planted in 2024 and should scale as demand grows. Bringing cultivation in-house should improve margins and increase quality. When fully planted, Salisbury Canyon Ranch will be more than eight million square feet, which is 48% larger than Glass House Brands’ largest greenhouse. The company formed a joint venture nursery with Lifted Organics. The partnership should enhance LEEF’s genetics, reduce costs, and provide greater control of the supply chain. LEEF owns LEEF Labs, which is among California’s largest manufacturing companies. It offers ethanol, hydrocarbon and solventless extraction methods. LEEF Labs also formulates and produces edibles and offers co-packing services to select clients. The Leaf is its award-winning retail store located in Palm Desert. It is profitable and serves as an R&D test location for new innovative CPG products. LEEF can also share the sales data and customer feedback with larger CPG brand partners. LEEF Organics is a leading wellness brand. It has a strong list of pro-sports supporters and brand ambassadors. It has a non-THC focus, which allows it to be sold across the US. The company has deep roots in California. LEEF’s origin dates to 2011 and has a differentiated culture. Leadership understands California cannabis, which is an important consideration when making strategic decisions and designing products.
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Water Tower Research
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Analysts
Jesse Redmond

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