A Canadian holdings company is making plays to become the biggest household name in cannabis retail. Golden Leaf Holdings and its pot shop franchise Chalice Farms only has six locations currently, but with a major multi-million dollar investment, the company hopes to soon spread across state lines.
“Like Starbucks is to coffee, we believe Chalice will be to cannabis,” William Simpson, CEO of Golden Leaf, told The Cannabist.
BlackShire Capital, a venture company focused on the cannabis industry, has signed a letter of intent to invest C$25 million ($19.4 million) to build a franchise of cannabis retail locations, 35 to 45 in the next two years. These locations would primarily be located in Canada at first, and then begin to populate the United States.
The most successful Chalice Farms locations averaged $400,000 in sales in the third quarter of 2017. In areas without a developed marijuana sales industry, these grosses would likely be even higher, the company said. The investment bank Cowen & Co. said it expects legal cannabis to grow to an industry with $50 billion in annual sales by 2026.
“We believe that we’re going to build something that will be around forever,” Simpson said. “It’ll be part of the household names when people think of cannabis in 20 years.”
The name the company chose for its stores seems aimed at the West Coast marijuana market. Chalice is already a recognized name in the industry. Chalice California is one of the major cannabis festivals and competitions in the country, overshadowing the High Times Cannabis Cup in cultural cache if not actual attendance numbers. Chalice California was founded by famed cannabis glassware company Hitman.
Chalice Farms, on the other hand, is an unrelated company founded in Portland, Oregon, which maybe just happens to have stolen the name of an already established industry brand, and which plans for a takeover of the North American weed market.