Nevis Brands (CSE:NEVI, OTCQB:PSCBF) CEO John Kueber joined Proactive to discuss the company’s new licensing agreement with Stash House to produce and distribute Major-branded cannabis beverages in New Jersey.
Kueber highlighted the importance of New Jersey’s market due to its proximity to major population centers like New York City.
He also provided an update on the company’s regulatory approval efforts in Michigan, expressing optimism about entering the market before the end of the year.
Proactive: You've announced a licensing agreement to produce and distribute your Major brand in New Jersey. So, getting a foothold on the eastern seaboard.
John Kueber: We’re very excited about going to New Jersey. It does represent our first state on the far East Coast as the 11th state for Major. It's a 100-milligram THC beverage. And we're really happy to be working with existing partners, Stash House, where we've been successful in Missouri and Mississippi already.
Tell us what Stash House will be doing for you in New Jersey.
So, the nature of our licensing agreements is our partners, our licensees, get the rights to use our formula and our brand to produce a proven, already successful product. They have a manufacturing facility in New Jersey. We'll do an initial production run we expect in about two months. Upon production and approvals from the state, we then begin delivering those products out to legal dispensaries where they're for sale on the recreational market in New Jersey.
We think New Jersey is really important, given its proximity to some very large population bases, including New York City. While it is recreationally legal, it can be difficult to find certain products. So, we're excited about getting that foothold in proximity to those other larger cities.
Will Stash House also be producing your full range of major products in New Jersey?
Indeed. We'll start with our three very successful shots: Fruit Punch, Blackberry Lemonade, and Blueberry. We do have an additional five or six flavors in the shots. And then we have our six-ounce products, which I won't describe all the flavors. We've had this strategy that's been successful where we launch with three or four products, get a foothold, and get the dispensaries used to our brand. They see the immediate success with just those three products, and we tend to increase our shelf space once we prove ourselves in those first few months.
As you mentioned, New Jersey takes you to 11 states in the US. You're currently awaiting regulatory approval in Michigan. What's the latest?
Michigan is a complicated state to get approval. You go through a lot of different stability testing. They're very thorough. We are progressing. We're making our way. And we still expect Michigan to be in-market before the end of the year. But it can be maddening working with regulators in each state. So, we're diligently going through that process and still excited about Michigan.
Quotes have been lightly edited for clarity and style