Competitive License Acquisition
An emerging state medical cannabis market was holding its first application process where only 4 dispensary licenses were to be issued. SISU was engaged to advise an applicant’s entire application process. Requirements included forming a strong organizational chart, procuring 3 compliant real estate sites out of only 64 participating localities, finding capable vendors, building the company’s brand, among many others.
SISU oversaw the entire application process, including advising org chart development, vendor management, forming and executing a state-wide strategy to secure and obtain local approvals for 3 real estate locations, and working in tandem with the client's law firms to incorporate regulations into business plans. SISU managed the team of application writers and conducted final editing of the over 700 page application.
Out of 239 entities that expressed interest in a dispensary license, SISU’s client team was among the 18 that managed to complete and submit their application on time. Furthermore, they were 1 of only 13 teams capable of securing three compliant real estate locations. SISU’s client team had the highest score out of all applicants, securing first mover advantage in a crucial emerging market.
Scaling both CBD and THC Brands
A CBD brand was looking to raise its sales, but only through proven channels in an effort to responsibly conserve capital.
SISU was engaged to identify and assist with the execution of new marketing channels that would have a high chance of success. The SISU team conducted a comprehensive review of CBD and CBD consumer congruent brands and marketing channels. The channels that SISU advised the client to retain were primarily in the podcast space, including multiple top-10 ranked podcasts in their respective genre.
The client’s sales significantly increased as a result of the new marketing channels.
Shortly thereafter, SISU was engaged to assist the brand’s medical & recreational cannabis wing with expanding to new states via partnering with local operators in respective markets. SISU first developed a template deal structure to be used for this, ensuring it could easily be used to accommodate both the varying financial needs of potential partners and varying state regulatory frameworks. The SISU team then created a market and regulatory overview of congruent markets, as well as contact lists of ideal target operators in each state. The company is now successfully executing the expansion strategy.
Turnaround
A subsidiary of a multi-billion dollar international tobacco firm was seeking to pivot from their nicotine vape business model to the hemp and/or cannabis market. The company had previously retained multiple Tier 1 consultancies to advise on the execution of the pivot for millions of dollars but was not satisfied with their recommendations.
SISU was retained to:
Audit the company’s current assets
Provide an opportunity analysis on pursuing the current nicotine business model vs. entering the cannabinoid market.
Audit the regulatory and competitive environment for entering the hemp cannabinoid, and medical & recreational cannabinoid markets, both across the world and the US.
Create a brand and 6 cannabinoid product lines, complete with formulations, branding, and manufacturing plans.
The company chose to execute SISU’s plan over the aforementioned Tier 1 consultancies and successfully pivoted from the nicotine space.
Cannabis & Hemp Market Entry
An ancillary agricultural product manufacturer’s board and CEO sought guidance on potential entry into the cannabis/hemp industry, and had no clear starting point.
The SISU team was engaged to create a plan to enter the cannabis/hemp industry. SISU performed a thorough analysis of competing products within the industry, conducted interviews with cultivators and farmers, and assessed potential market positioning based on respective regulatory frameworks and market factors. They further provided a list of sales targets and supported outreach efforts.
After implementing SISU’s plan, the cannabis/hemp industry shortly emerged as the company’s largest market segment.
Roll-Up Quarterbacking
A U.S. cannabis roll-up faced challenges in reconciling the varying regulatory frameworks and market dynamics across state-specific cannabis markets. The team’s primary needs were to formulate a robust market entry strategy, devise an efficient organizational structure, as well as identify and properly vet acquisition targets.
SISU executed thorough regulatory and market analyses to identify viable markets and targets, ensuring positive EBITDA and long-term prospects pre-public listing. They created extensive manufacturing, branding, distribution, and competitive strategies on state and national levels. The team furthermore identified off-market M&A targets in over 10 states and assisted in structuring LOIs and purchase agreements for acquisitions. Additionally, they sourced executives for C-suite roles.
These strategic actions significantly fortified the company's growth trajectory, streamlined their acquisition timeline, and strengthened its leadership, optimally positioning the company for its potential public listing.