Correct Cannabis Edibles Dosing Assists Sunderstorm Uncover Good results in California – New Cannabis Ventures


Exclusive Interview with Sunderstorm Co-Founder and President Keith Cich

California cannabis firm Sunderstorm values automation. It was a single of the initial edibles businesses to invest heavily in gear, such as a European candy-creating machine and an automated packaging machine. Co-Founder and President Keith Cich spoke with New Cannabis Ventures about his company’s California market place presence, strategy to manufacturing, and income development. The audio of the whole conversation is accessible at the finish of this written summary.

The Sunderstorm Group

Cich and Cameron Clarke, the company’s other co-founder, initial met whilst attending Stanford. Cich went on to have a profession on Wall Street and then in industrial actual estate. Clarke worked on a quantity of entrepreneurial ventures, such as bringing acai berries to the shelves of Entire Foods and beginning application businesses. In 2015, the two good friends got with each other to speak about the cannabis business. In 2016, they purchased a modest gummy firm in California, and Sunderstorm was launched.

Cich focuses on the finance, accounting, and actual estate elements of the company, whilst Clarke requires the helm on operations and technologies. The pair is joined by other leadership group members, such as Zachary Michelson. Michelson heads up compliance and distribution.

Sunderstorm has around 110 staff spread out more than its numerous teams. The majority of staff function in manufacturing, but the firm also has a sales group, brand ambassadors, drivers, and warehouse workers. The firm continues to grow–it has 13 job openings correct now, according to Cich.

Sunderstorm Group Members

California Marketplace Presence

The firm has two licenses in California: a single for manufacturing in Los Angeles and a micro company license in Emeryville. The latter enables the firm to manufacture, wholesale, distribute, and do retail delivery.

The firm does all of its personal distribution. Its brand ambassador group does hundreds of in-shop demos every month, and the firm has its personal fulfillment group. Sunderstorm merchandise are in far more than 350 various retail places, covering about 40 % of active shops in the state, according to Cich. The company’s footprint reaches across each northern and southern California.


When Sunderstorm started, its founders set out to resolve the concern of correct dosing in cannabis edibles. Edibles have shifted away from baked goods, and gummies have emerged as the most well-liked type element, according to Cich.

Sunderstorm Invested in Gear to Make sure Correct Dosing in Its Edibles.

In 2018, the firm invested in a candy-creating machine from Europe to assure correct dosing. The machine precisely fills gummy molds each single time. The company’s concentrate on correct dosing has been recognized by the lab testing firm CannaSafe. Sunderstorm’s Kanha gummies (created in 5- and 10-milligram formats) won the CannaSafe award for “most accurately formulated edible.”

Sunderstorm Brands

The Kanha gummies are Sunderstorm’s flagship brand, but the firm has often intended to have a diversified supplying. In addition to the gummies, the firm provides Wind vape merchandise and Nano5 sublingual merchandise. The Wind brand involves distillate vape merchandise developed to give a flavor profile as close as attainable to many flower strains.

Sunderstorm’s 3 Solution Lines: Kanha Gummies, Nano5 Sublinguals, and Wind Vapes

Nano5 merchandise give more rapidly on-set time and larger bioavailability compared to classic tinctures. Sunderstorm carried out a study of its Nano5 CBD solution and a classic tincture. The Nano5 solution was discovered in the bloodstream more rapidly and in a larger quantity than the classic solution.

Sunderstorm has also launched a Kanha Nano gummy, which has an onset time of around 20 minutes and larger bioavailability than classic edibles, according to Cich.

The California Black Marketplace

Kushy Punch lately lost its license in California due to involvement in the illicit market place. Cich has heard rumors floating about about a couple of big vape players with black market place company. Operators involved in only the reputable market place spend taxes and adhere to regulations about solution good quality. When there is nonetheless black market place competitors, the playing field is uneven. Cich hopes to see far more enforcement against the illicit market place in California.

Future Expansion

Sunderstorm’s initial objective was to develop a defendable market place share in California. Now, the firm is in active discussions with a quantity of other states for attainable expansion. Cich pointed out Massachusetts, Illinois, Michigan, Florida, Nevada, and Arizona as potentially fascinating possibilities.

Cich sees Sunderstorm probably becoming rolled up into a bigger firm at some point in the future, no matter whether a main private player in California or a single of the multi-state operators in the U.S. The firm is an eye-catching acquisition or merger selection for any firm that desires a substantial presence in California, according to Cich.

Investors and Funding

Sunderstorm began out with seed capital from good friends and family–Cich and Clarke also invested their personal dollars. Considering the fact that then, the firm has been funded by angel investors, such as Canna Angels and Arcview. At the finish of 2018, the firm began to get institutional dollars. Each Entourage Impact Capital (formerly Cresco Capital Partners) and Altitude Investment Management have invested in the firm. Sunderstorm’s Series A permitted it to raise customer awareness and create its company. Now, Sunderstorm is embarking on its Series B, anticipated to close in the initial half of subsequent year.

Like the rest of the business, Sunderstorm faces the challenges of undertaking company with out classic banking. Unable to safe banking loans due to the regulatory atmosphere, the firm desires to use equity to fund issues like inventory and fixed assets, according to Cich.

Income Development

In 2018, Sunderstorm did about $five million in sales. This year, income has nearly tripled to $14 million. As the firm appears to expansion beyond California and focuses on its diversified solution offerings, it could attain $25 million in income subsequent year, according to Cich.

The Sunderstorm group is focused on executing each single day. Cich sees also numerous businesses in the California market place, and the crowd will start to thin out as competitors eliminates businesses all along the provide chain.

To find out far more, pay a visit to the Sunderstorm web-site. Listen to the whole interview:

Carrie Pallardy, a Chicago-primarily based writer and editor, started her profession covering the healthcare business and now writes, edits and interviews topic matter authorities across numerous industries. As a published writer, Carrie continues to inform compelling, undiscovered stories to her network of readers. For far more facts speak to us.

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