Correct Cannabis Edibles Dosing Assists Sunderstorm Come across Achievement in California – New Cannabis Ventures


Exclusive Interview with Sunderstorm Co-Founder and President Keith Cich

California cannabis organization Sunderstorm values automation. It was a single of the 1st edibles corporations to invest heavily in gear, which includes a European candy-creating machine and an automated packaging machine. Co-Founder and President Keith Cich spoke with New Cannabis Ventures about his company’s California marketplace presence, method to manufacturing, and income development. The audio of the whole conversation is out there at the finish of this written summary.

The Sunderstorm Group

Cich and Cameron Clarke, the company’s other co-founder, 1st met even though attending Stanford. Cich went on to have a profession on Wall Street and then in industrial genuine estate. Clarke worked on a quantity of entrepreneurial ventures, which includes bringing acai berries to the shelves of Entire Foods and beginning computer software corporations. In 2015, the two close friends got collectively to speak about the cannabis sector. In 2016, they purchased a compact gummy organization in California, and Sunderstorm was launched.

Cich focuses on the finance, accounting, and genuine estate elements of the organization, even though Clarke requires the helm on operations and technologies. The pair is joined by other leadership group members, such as Zachary Michelson. Michelson heads up compliance and distribution.

Sunderstorm has roughly 110 personnel spread out more than its several teams. The majority of personnel perform in manufacturing, but the organization also has a sales group, brand ambassadors, drivers, and warehouse workers. The organization continues to grow–it has 13 job openings appropriate now, according to Cich.

Sunderstorm Group Members

California Industry Presence

The organization has two licenses in California: a single for manufacturing in Los Angeles and a micro organization license in Emeryville. The latter makes it possible for the organization to manufacture, wholesale, distribute, and do retail delivery.

The organization does all of its personal distribution. Its brand ambassador group does hundreds of in-shop demos every single month, and the organization has its personal fulfillment group. Sunderstorm items are in additional than 350 various retail areas, covering about 40 % of active shops in the state, according to Cich. The company’s footprint reaches across each northern and southern California.


When Sunderstorm started, its founders set out to resolve the concern of precise dosing in cannabis edibles. Edibles have shifted away from baked goods, and gummies have emerged as the most well known type aspect, according to Cich.

Sunderstorm Invested in Gear to Assure Correct Dosing in Its Edibles.

In 2018, the organization invested in a candy-creating machine from Europe to assure precise dosing. The machine precisely fills gummy molds every single single time. The company’s concentrate on precise dosing has been recognized by the lab testing organization CannaSafe. Sunderstorm’s Kanha gummies (created in 5- and 10-milligram formats) won the CannaSafe award for “most accurately formulated edible.”

Sunderstorm Brands

The Kanha gummies are Sunderstorm’s flagship brand, but the organization has constantly intended to have a diversified providing. In addition to the gummies, the organization delivers Wind vape items and Nano5 sublingual items. The Wind brand contains distillate vape items created to provide a flavor profile as close as doable to several flower strains.

Sunderstorm’s 3 Solution Lines: Kanha Gummies, Nano5 Sublinguals, and Wind Vapes

Nano5 items provide more rapidly on-set time and larger bioavailability compared to standard tinctures. Sunderstorm performed a study of its Nano5 CBD solution and a standard tincture. The Nano5 solution was identified in the bloodstream more rapidly and in a larger quantity than the standard solution.

Sunderstorm has also launched a Kanha Nano gummy, which has an onset time of roughly 20 minutes and larger bioavailability than standard edibles, according to Cich.

The California Black Industry

Kushy Punch not too long ago lost its license in California due to involvement in the illicit marketplace. Cich has heard rumors floating about about a couple of significant vape players with black marketplace organization. Operators involved in only the genuine marketplace spend taxes and adhere to regulations about solution good quality. Even though there is nonetheless black marketplace competitors, the playing field is uneven. Cich hopes to see additional enforcement against the illicit marketplace in California.

Future Expansion

Sunderstorm’s initial aim was to produce a defendable marketplace share in California. Now, the organization is in active discussions with a quantity of other states for doable expansion. Cich described Massachusetts, Illinois, Michigan, Florida, Nevada, and Arizona as potentially intriguing possibilities.

Cich sees Sunderstorm most likely becoming rolled up into a bigger organization at some point in the future, irrespective of whether a important private player in California or a single of the multi-state operators in the U.S. The organization is an desirable acquisition or merger alternative for any organization that desires a important presence in California, according to Cich.

Investors and Funding

Sunderstorm began out with seed capital from close friends and family–Cich and Clarke also invested their personal revenue. Considering the fact that then, the organization has been funded by angel investors, such as Canna Angels and Arcview. At the finish of 2018, the organization began to obtain institutional revenue. Each Entourage Impact Capital (formerly Cresco Capital Partners) and Altitude Investment Management have invested in the organization. Sunderstorm’s Series A permitted it to raise customer awareness and make its organization. Now, Sunderstorm is embarking on its Series B, anticipated to close in the 1st half of subsequent year.

Like the rest of the sector, Sunderstorm faces the challenges of carrying out organization with no standard banking. Unable to safe banking loans due to the regulatory atmosphere, the organization requires to use equity to fund issues like inventory and fixed assets, according to Cich.

Income Development

In 2018, Sunderstorm did about $five million in sales. This year, income has just about tripled to $14 million. As the organization appears to expansion beyond California and focuses on its diversified solution offerings, it could attain $25 million in income subsequent year, according to Cich.

The Sunderstorm group is focused on executing every single single day. Cich sees as well lots of corporations in the California marketplace, and the crowd will start to thin out as competitors eliminates corporations all along the provide chain.

To discover additional, take a look at the Sunderstorm internet site. Listen to the whole interview:

Carrie Pallardy, a Chicago-primarily based writer and editor, started her profession covering the healthcare sector and now writes, edits and interviews topic matter specialists across several industries. As a published writer, Carrie continues to inform compelling, undiscovered stories to her network of readers. For additional data speak to us.

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