The demand for marijuana-infused edible products, like candy bars or gummy bears, is so high right now that many customers in states like Colorado are limited to two products per day else stores run the risk of depleting their supplies.
Smart Ventures, Inc. (OTC: SMVR), who signed an agreement with Low Carb High Inc. to develop healthy marijuana edibles last month, aims to capitalize on the rising demand with a franchise program. The program would enable aspiring marijuana entrepreneurs to setup their own edibles business in exchange for a $25,000 to $50,000 franchise fee plus a 20% royalty on sales of its products.
By isolating marijuana’s active ingredient, tetrahydrocannabinol (“THC”), companies can infuse foods ranging from cookies to sodas. Such products have grown immensely popular among both medical marijuana patients and, more recently, recreational marijuana users in states like Colorado. As more states adopt pro-marijuana policies, the popularity of edibles is poised to grow even more.
“We are aggressively pursuing our business plan in the medical marijuana industry, as we believe the revenue streams from this marketplace will yield significant shareholder value for our stakeholders,” said Roger Smith, CEO of Smart Ventures.
Researchers expect the market for marijuana to grow by 64% to $2.34 billion in 2014. Put into perspective, the market for smartphones expanded by just 46% between 2012 and 2013. These figures could be driven significantly higher over the next couple years as an increasing number of states legalize medical marijuana, while some venture to legalize recreational marijuana.
According to a recent survey of more than 1,500 doctors and nearly 3,000 consumers, 69% of doctors believe medical marijuana can help with certain conditions and treatments and 52% of consumers expressed the same belief. The growing support for pro-marijuana policies should help drive regulatory change, expand access to the substance, and ultimately boost companies in the space.
Shares of Smart Ventures Inc. more than doubled on heavy volume on Friday of last week and are trading up over 2% during Monday’s session.
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