Exclusive Interview with Old Pal Co-Founder Jason Osni and CFO Joe Franciskovich
Old Pal is a best-promoting cannabis brand in the Nevada and California markets, and the firm is continuing to develop via its licensing model. Jason Osni, one particular 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 significance of preserving firm culture. The audio of the complete conversation is accessible 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 solutions for the Air Force. Immediately after that, company college led him to investment banking and then private equity. He spent a decade managing a portfolio for a massive private equity firm. When operating as Deputy CFO for Ticketmaster, he decided he was interested in a position that would give much more day-to-day operational duty. Franciskovich met Osni and fellow co-founder Rusty Wilenkin and produced the move into the cannabis sector.
Prior to the cannabis company, Osni practiced as a lawyer in New York. On getaway in California, he observed a disconnect in between the solutions 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 roughly 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 when 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 involve other individuals like COO Charlie Cangialosi and CMO Allison Pankow. Cangialosi, a further alumnus of Kiva, has been important to creating out Old Pal’s infrastructure. Pankow joined the firm about a year ago, bringing knowledge from promoting and marketing firm Anomaly and MedMen.
Nevada, California, and the Pacific Northwest
Old Pal best-promoting flower solutions are in 25 to 30 retailers in Nevada–the market place has a total of 65 to 70 retailers, according to Osni. More than the subsequent couple of months, the firm is aiming to improve its footprint to about 80 % of the market place. In Nevada, Old Pal has partnered with Flower One particular as its cannabis supplier.
The Old Pal group, like several other businesses in the company, views California as a springboard for national accomplishment. The firm has each flower and vape solutions in this market place. With a concentrate on worth solutions (not necessarily the lowest cost but nevertheless accessible to buyers), Franciskovich does not see several competitors, although that will modify more than time.
The firm is also expanding into the Pacific Northwest by means of a new partnership with cannabis firm Artizen in the state of Washington. Artizen is a powerful match for the sort of co-makers Old Pal seeks to companion with, and the firm is at present creating its provide chain in the area. The Pacific Northwest will develop into an fascinating market place for Old Pal in Q2 and Q3 of subsequent year, according to Osni.
Old Pal requires a conscious method to expansion, seeking 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. When acquisitions that take the firm into a new market place or item segment may possibly be of interest at some point, Old Pal is mainly focused on organic expansion right now.
Business Culture and Vision
Beyond the purpose of becoming a lucrative firm, Old Pal’s vision is focused on supplying a shareable cannabis item to as several folks as achievable. That “why” is a huge aspect of what drive’s the company’s culture, according to Franciskovich. Rather than attempting to win in many components of the provide chain, the firm is hyper-focused on its flower and vape solutions and creating the Old Pal brand.
As the firm grows, its leadership group desires to assure that its folks do not shed sight of that vision, a popular downside of fast expansion. The firm is targeting top quality, constant solutions with a worth cost. The brand is intended to be inside 10 % of the very best-priced solutions on the shelves, with the lengthy-term purpose of setting the cost for worth solutions, according to Franciskovich.
Old Pal Provisions
Strict regulations about cannabis promoting limit the strategies businesses can communicate their brand vision to buyers. So, Old Pal has taken a inventive method to creating a partnership with their prospects. The firm launched Old Pal Provisions, a life-style brand focused on property goods and clothes. This brand can be marketed utilizing standard strategies, in turn funneling buyers to the Old Pal cannabis brand.
Old Pal’s group comes with a powerful investor network, which has largely funded the firm up till this point. More than the summer time, 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 profitable in the private markets, and there is no interest in pursuing the public markets for the time getting, according to Osni.
Old Pal is managing roughly three,000 pounds of cannabis per month across all of its private-label suppliers. The firm has much more than tripled its income year-more than-year from 2018.
When Old Pal faces the exact same challenges associated to the shifting regulatory structure as all cannabis businesses, its low money needs let it to stay nimble. Sector maturation will probably get rid of some of the challenges of right now, such as banking, but Old Pal is remaining disciplined in an work to effectively navigate the industry’s expanding pains.
To study much more, go to the Old Pal internet site. Listen to the complete interview: