If you’re a cannabis enthusiast, then you’re most likely familiar with infused flower, moon rocks, and pre-rolls. These are products that are popular among consumers for their high THC content. Infused flower is a type of cannabis flower that has been infused with sticky concentrate, while moon rocks are made by infusing flower with sticky concentrate and then rolling the sticky flower in kief. And pre-rolls are just pre-rolled joints that are ready to smoke.
Presidential is one of the largest infused flower cannabis companies in California. It is also the third-largest pre-roll brand in the state, with products available in over 400 retail stores such as MedMen, Gorilla RX, Sherbinskis, La Brea Collective, and Royal Greens. We recently had the opportunity to interview Everett Smith, co-founder, and CEO of Presidential, to discuss how the company got started, the challenges it faced, and its plans for the future.
How Presidential Got Started
Presidential was founded in 2012 by Everett Smith, following a professional basketball career in Europe. He has a background in marketing and brand development. According to Smith, he got involved in the cannabis industry by chance. He was in Vegas after he was done playing basketball overseas when he met someone who was starting a cannabis company. Smith didn’t love his job at the time and was looking for something exciting to do. So, he got their information and called them every day for almost three months. Finally, they got together and started creating the brand, getting the packaging, the product, and putting it out to the street. That all probably took six to eight months.
The Focus on Infused Flower
Presidential is known for its moon rocks and infused pre-rolls. When asked how the company hit upon the concept of infused flower, Smith said that the gentleman he was talking to at the time was manufacturing infused flower for his friend. As soon as they started selling it, Smith found ways that it could be improved. He listened to the customers they were selling to, but his old partner wasn’t willing to do that due to the manufacturing time. So, they took it into their own hands and got an investor, John Zapp, and figured out how to manufacture it themselves. According to Smith, they had zero idea what they were doing, but they figured it out. Smith credits John for figuring out the formula they are using now. It was a lot of bumping heads, trial and error, and figuring it out, but they did it.
Smith said that the main difference Presidential brought to the table was quality. Other companies were focused on profit margins, and they weren’t using quality products. They were using the same product twice in different things, which is the ultimate no-no. Presidential started with high-quality raw goods and put them together to create an even better product. They also packaged it better than anyone else at the time.
The Challenges of Launching a Brand in Los Angeles
Launching a brand in Los Angeles in 2012 had its challenges. According to Smith, some of the challenges included education of the consumer, getting clients in the door and making them feel safe to come into a dispensary and purchase medicine, and the legalities. Maneuvering all the different propositions that were coming down and being able to do it legally and safely was probably their biggest hurdle. Then there was the challenge of introducing people to moon rocks. Infused flower was a brand-new concept, so they had to find as many people as they could to introduce the product to.
Building Out the Distribution Network
When asked about the keys to Presidential’s success in building out their distribution network, Smith said it was sales.
Smith and his partner, John Zapp, come from a sales background. They knocked on doors every day to get every possible client. Smith described it as being a car salesman in Hollywood. At first, it was just the two of them knocking on doors every day, but then the business built on itself. They have the same process now. They knock on the doors and send their brand ambassadors in to do customer appreciation. They get their product in front of people, and it’s worked for them. The marketing money they do spend is spent in the stores because they see a direct correlation there. At the end of the day, it goes back to knocking on doors.
Smith noticed a difference between sales and prospecting in 2012 and today. Today, everything is very corporate, and you have to get through layers of people to get to the actual decision-maker. The owner was the buyer before 2014, but now, things have become more corporate. Smith doesn’t see it as a negative thing, though. He sees it as positive because they can guarantee regular pay, guarantee that the products will be on the shelves, and cut or markup the pricing. Smith thinks the changes are for the better.
The Future of Presidential
Smith sees the infused flower market as one of the fastest-growing markets. He sees it becoming the norm, along with pre-rolls. Presidential is looking at expansion and trying to become one of the national players in the game. They’re swinging for the fences. They’re currently in California and are negotiating to launch in Nevada in July. They were getting ready to launch in Oklahoma, but a deal fell through, so they’re switching gears. By the end of the year, they’ll be in Oklahoma, and John is trying to close a deal for Michigan. They’re looking to close those deals before the end of the year.
Trends in the Industry
Presidential has the number one selling blunt in California, but they’re number four in terms of sales for pre-rolls. The three companies ahead of them all sell minis and packs of minis, whereas Presidential sells single 1-gram and 1.5-gram pre-rolls. So, in July, they’re launching three-packs of minis, three 0.7-gram blunts, and three 0.5-gram pre-rolls.
Smith believes that you can infuse flower with pretty much any kind of concentrate. He’d like to come out with some diamond products because that’s hot right now. They’re following the wave and trends of the concentrates.
What Smith Is Interested in Learning About
In his personal life, Smith is interested in financial craftiness. He wants to make his money work for him. In the business, he’s interested in learning more about the smokeless form factors of cannabis, such as beverages and capsules. He thinks that’s where the industry is headed, and he’s interested in learning more about the manufacturing of beverages and capsules and what it entails.
