Cresco Labs’ Acquisition of Bluma Wellness Combines Two Like-Minded Companies, According to Executives

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<![CDATA[Multistate cannabis operator Cresco Labs announced Jan. 14 that it will acquire Bluma Wellness, a vertically integrated company with operations in Florida, in a transaction that company executives say combines two like-minded companies with similar business models.For Cresco CEO Charlie Bachtell, the acquisition is “the culmination of a multi-year evaluation of how to get into the Florida market the right way.”“We wanted to make sure we [entered the market] in a very thoughtful and appropriate way, and Bluma really presented that perfect opportunity for us, so we’re really happy with it,” Bachtell tells Cannabis Business Times and Cannabis Dispensary.Bachtell describes Cresco as a more traditional, consumer packaged goods (CPG)-focused organization with a “product-first” approach that prioritizes the creation and distribution of branded products into as many retail stores as possible. This differs from other companies’ retail-first business models, he says, which prioritize the opening of as many dispensaries as possible.RELATED: Built to Scale: How Cresco Labs Developed a Consumer-Packaged-Goods Approach to Cannabis“You look at Bluma, and Bluma is arguably the only operator in Florida that thinks about the industry similarly to how we do,” Bachtell says. “They focused on production first, and then they opened very strategic, very thoughtful retail locations as they had product to sell.”As a single-state operator, Bluma has been looking for a multistate company to partner with in order to expand nationally, especially as cannabis policy reform efforts begin to take shape at the federal level after the 2020 election, according to Bluma CEO Brady Cobb.“We’ve had a rapid expansion through Q2, Q3 and Q4 [2020],” Cobb says. “I’ve also been an advocate at the federal level, both congressionally and in the White House, for … four and a half to five years now. You see the winds changing. … With the presidential election results [and]…

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Source : Cresco Labs’ Acquisition of Bluma Wellness Combines Two Like-Minded Companies, According to Executives

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