Metals Update 25/05/21

Stem, Tinley collaborate for home delivery

Stem Holdings Inc. is integrating its technology into The Tinley Beverage Company Inc.’s website, enabling a fast home delivery solution for cannabis-infused beverages throughout the state of California.

Led by Adam Berk, who was the founder and chief executive officer of the first patented on-line food ordering company in the United States, Osmio, which became GrubHub, Stem’s licensed, proprietary home delivery network Budee reaches 92 per cent of California’s population for delivery within two hours or by a scheduled time. Stem achieves this through its extensive network of employed home delivery drivers and licensed regional non-storefront retail storage facilities. The platform also offers robust white label e-commerce technology that enables customer ordering via third party brands’ web sites. This technology, now integrated into Tinley’s own web site, enables consumers to select Tinley’s beverages and execute an order for delivery by Budee on its website in an apparent seamless customer experience.

Stem’s statewide home delivery platform will be populated with Tinley’s flagship products, and Tinley’s will offer the option of participation in the Stem platform to the growing number of approved third party brands that have their beverages manufactured at Tinley’s bottling facility in Long Beach, Calif. Stem’s white label e-commerce platform and home delivery network will constitute an additional value-added service available to approved third party beverages manufactured at Tinley’s facility, allowing it to expand its home delivery footprint as an additional way of accessing consumers statewide.

Retail and home delivery options for cannabis-infused beverages are often constrained in California by space and other logistical limitations for beverage products at the retail and last-mile delivery levels. Stem’s platform enables seamless delivery from wholesale distribution to consumers’ homes for Tinley’s and other approved third party manufacturing brands.

The companies plan to collaborate further to create a variety of beverage-specific on-line portals that enable outreach and engagement with canna-curious consumers, who can be averse to smoking and may not frequent dispensaries. With less than 15 per cent of California’s adult population having consumed cannabis in the past year, the drink category offers the most natural avenue for this largely untapped consumer base, including beverage alcohol consumers, to transition into cannabis. These portals can employ targeted channel marketing and messaging, comparable with wine and spirit club sites, which the companies believe are necessary for recruiting these new consumers.

“Home delivery is booming and is an increasingly important part of our growth strategy as well as those of our third party manufacturing clients,” said Sven Stalley, general manager of Tinley’s California. “Cannabis beverage consumers are often new or casual cannabis users that may not frequently visit dispensaries. They purchase for home delivery across more consumer categories than ever before, so this collaboration can help bridge the gap for new and mainstream alcohol consumers to build cannabis-beverage consumption into their personal and social use occasions.”

“Tinley’s growing lineup of Tinley’s and third party beverages expands Stem’s access to a growing portfolio of high-quality drinks, as well as opportunities for working with these brands on collaborative, drink-specific marketing,” said Mr. Berk, chief executive officer of Stem Holdings. “Access to unique products and category-specific marketing was a key component of Osmio’s growth, and the opportunity to innovate and collaborate with Tinley’s enables us to employ similar tactics within the cannabis industry.”