Exclusive Interview with Old Pal Co-Founder Jason Osni and CFO Joe Franciskovich
Old Pal is a leading-promoting cannabis brand in the Nevada and California markets, and the firm is continuing to develop via its licensing model. Jason Osni, 1 of the co-founders of the firm, and CFO Joe Franciskovich spoke to New Cannabis Ventures about how this model has facilitated the fast expansion of the life-style brand and the value of keeping firm culture. The audio of the complete conversation is obtainable at the finish of this written summary.
The Group Behind Old Pal
Franciskovich began his profession in the military–he spent 5 years on active duty, building merchandise for the Air Force. Soon after that, small business college led him to investment banking and then private equity. He spent a decade managing a portfolio for a huge private equity firm. When operating as Deputy CFO for Ticketmaster, he decided he was interested in a position that would give a lot more day-to-day operational duty. Franciskovich met Osni and fellow co-founder Rusty Wilenkin and created the move into the cannabis market.
Prior to the cannabis small business, Osni practiced as a lawyer in New York. On getaway in California, he observed a disconnect involving the merchandise on dispensary shelves and the buyers in these dispensaries–effective branding was missing. He moved to California shortly afterward and started his initial firm NATIV, which was sold around 3 years ago. He went on to do consulting for Caliva prior to he and Wilenkin began Old Pal.
Osni initial met his co-founder even though he was at NATIV and Wilenkin was at Kiva Confections. The pair decided they wanted to be the initial to brand the worth shelf in cannabis and launched Old Pal.
The leadership group has grown to incorporate other individuals like COO Charlie Cangialosi and CMO Allison Pankow. Cangialosi, a further alumnus of Kiva, has been crucial to developing out Old Pal’s infrastructure. Pankow joined the firm about a year ago, bringing practical experience from advertising and marketing and marketing firm Anomaly and MedMen.
Nevada, California, and the Pacific Northwest
Old Pal leading-promoting flower merchandise are in 25 to 30 shops in Nevada–the marketplace has a total of 65 to 70 shops, according to Osni. More than the subsequent couple of months, the firm is aiming to raise its footprint to about 80 % of the marketplace. In Nevada, Old Pal has partnered with Flower A single as its cannabis supplier.
The Old Pal group, like a lot of other organizations in the small business, views California as a springboard for national good results. The firm has each flower and vape merchandise in this marketplace. With a concentrate on worth merchandise (not necessarily the lowest price tag but nonetheless accessible to buyers), Franciskovich does not see a lot of competitors, even though that will modify more than time.
The firm is also expanding into the Pacific Northwest by way of a new partnership with cannabis firm Artizen in the state of Washington. Artizen is a robust match for the sort of co-companies Old Pal seeks to companion with, and the firm is at present developing its provide chain in the area. The Pacific Northwest will turn into an fascinating marketplace for Old Pal in Q2 and Q3 of subsequent year, according to Osni.
Old Pal requires a conscious method to expansion, searching at markets that are prepared for a scalable CPG brand. At the moment, Michigan, Illinois, Massachusetts, and Florida are the most fascinating possibilities for the firm. Although acquisitions that take the firm into a new marketplace or solution segment could be of interest at some point, Old Pal is mainly focused on organic expansion now.
Organization Culture and Vision
Beyond the aim of becoming a lucrative firm, Old Pal’s vision is focused on delivering a shareable cannabis solution to as a lot of men and women as probable. That “why” is a large element of what drive’s the company’s culture, according to Franciskovich. Rather than attempting to win in a number of components of the provide chain, the firm is hyper-focused on its flower and vape merchandise and developing the Old Pal brand.
As the firm grows, its leadership group desires to make certain that its men and women do not shed sight of that vision, a widespread downside of fast expansion. The firm is targeting good quality, constant merchandise with a worth price tag. The brand is intended to be inside 10 % of the ideal-priced merchandise on the shelves, with the lengthy-term aim of setting the price tag for worth merchandise, according to Franciskovich.
Old Pal Provisions
Strict regulations about cannabis advertising and marketing limit the strategies organizations can communicate their brand vision to buyers. So, Old Pal has taken a inventive method to developing a partnership with their prospects. The firm launched Old Pal Provisions, a life-style brand focused on household goods and clothes. This brand can be marketed utilizing classic solutions, in turn funneling buyers to the Old Pal cannabis brand.
Old Pal’s group comes with a robust investor network, which has largely funded the firm up till this point. More than the summer season, the firm did an institutional round of fundraising with Gotham Green. Now, Old Pal is preparing for its Series A, anticipated to launch in Q1. The firm has been effective in the private markets, and there is no interest in pursuing the public markets for the time becoming, according to Osni.
Old Pal is managing around three,000 pounds of cannabis per month across all of its private-label suppliers. The firm has a lot more than tripled its income year-more than-year from 2018.
Although Old Pal faces the identical challenges connected to the shifting regulatory structure as all cannabis organizations, its low money needs enable it to stay nimble. Business maturation will most likely take away some of the challenges of now, such as banking, but Old Pal is remaining disciplined in an work to effectively navigate the industry’s developing pains.
To discover a lot more, stop by the Old Pal web page. Listen to the complete interview: