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Company Summary
Kite Solutions is currently performing temporary on-prem filling and packaging services for licensed cannabis producers in Canada, with plans to expand to select countries internationally. Our sister organization ATG Pharma has been expanding rapidly into the US and the EU in particular, where they have continued to find strong evidence of a market need for our service. Established by a team with over 15 years experience in logistics and manufacturing, KITE will be the industry leader in cannabis co-packing.
Customer Problem
Rising demand for an increasing number of diverse product forms, plus regulations that impose strict dosing requirements and excessive packaging, create significant operational challenges for LPs. Many industry players aren’t licensed to manufacture or sell and those that are lack space and resources to develop packaging capabilities at scale.
Solution
Solve core packaging problem: Focus on select product categories which represent biggest share of the market. Optimize these operations to realize economies of scale.
Manage suppliers: Procure formulations, hardware, and packaging at volumes that can dictate favourable commercial terms and achieve supply chain efficiencies.
Product development: Work with industry partners to produce tailored formulations for unlicensed brands seeking to launch new products.
Formulation: Refine and develop cannabis oil based formulations, including exotic distillates.
Brand Innovation: With a privileged front row seat to witness market evolution,
capitalize on select product white spaces with capabilities to rapidly launch new products.
Competitive Advantage
Economies of scale: packaging is a notoriously inefficient process given the huge space required and its batch heavy nature. Consolidating volumes and streamlining processes will lead to large economies of scale.
Barriers to entry: Taking over supplier management for our customers will provide us with tremendous buying power. Moreover, our extractor customers can become distillate suppliers, thus tightening the hold as the locus of the market.