1606 Corp. Follows a Familiar Playbook to Grow Distribution & Unlock Value
May 3rd, 2023
1606 Corp. (OTC: CBDW) CEO Greg Lambrecht is no stranger to the regulated consumer packaged goods market. After founding Premium Cigars International (PCI) in the 1990s, he achieved widespread distribution at 7-11 and other mass market retailers and eventually brought the company public on the NASDAQ.
PCI’s Prime Time flavored cigars are a staple at gas stations and convenience stores throughout the U.S. and Canada. And Mr. Lambrecht hopes to accomplish the same with 1606 Corp.’s hemp and CBD products. Fortunately, a combination of regulatory tailwinds and new technologies could accelerate the distribution timeline.
In this article, we’ll look at how a similar playbook is helping expand distribution for 1606 Corp. as it looks to become a premier player in the nascent $50+ billion hemp and CBD industry.
A Massive Opportunity in CA
California recently banned flavored tobacco products, including cigars, cigarettes, and vapes, at the beginning of the year. While the ban’s effectiveness remains an open question, tax-paid cigarette sales fell 17.3% in January 2023 versus a year ago. And these smokers are likely seeking alternatives that provide a similar experience.
1606 Corp.’s Truz and CBD Singlez are smokable CBD products that help support cigarette smokers kick their nicotine habits. The 25-count products come in mango, original, or menthol flavors. And after ramping up production in anticipation of higher demand, the company had enough inventory to fill orders for 2,500+ locations in February 2023.
While California’s ban is bad news for tobacco companies, the move opened the door for 1606 Corp.’s hemp cigarettes. Since they don’t have tobacco, the company can sell its flavored products in the state. And in response to the ban, the company is doubling down on its distribution efforts in California to provide a better alternative to these consumers.
“The gap left as a result of the flavor ban on vaping and tobacco products has left a lot of shelves open, so we’re aggressively taking advantage of the opportunity,” said CEO Greg Lambrecht in early February.
Revenue Could ‘Double or Triple’
1606 Corp. also recently introduced Brio Nutrition to Cool Blue Distribution to distribute its 45 SKUs through its relationships with over 1,000 retail and wholesale accounts. The formal partnership went into effect on April 1, 2023, meaning revenue could start appearing from the deal on the company’s second-quarter financial results.
Brio Nutrition develops and supplies CBD gummies, topicals, capsules, and oils to assist in treating pain, anxiety, sleep performance, and depression. 1606 Corp. purchased a 51% stake in the business earlier this year as part of its efforts to roll-up companies in the CBD space and unlock economies of scale and eventually uplist to the NASDAQ.
“This monumental partnership provides CBDW with the ability to double, if not triple, our current revenue which is a conservative estimate,” said Brio CEO Shannon Shell. “We’re very proud to be working with one of the country’s largest CBD distributors. As a result of the efforts by the 1606 team, our growth strategy is quickly becoming a reality.”
1606 Corp. (OTC: CBDW) has been diligently working on expanding distribution for its hemp and CBD brands by following a playbook similar to Prime Time in the 1990s and 2000s.
On a broader level, it’s worth noting that 1606 Corp. has several advantages that Prime Time didn’t have when scaling – including new technology. For example, 1606 Corp. recently sent out 30,000 direct mailers with the ability to place orders through a smartphone, making it far easier for interested parties to purchase.
If you’re interested in learning more and following 1606 Corp.’s story, complete the form below to download the investor presentation and receive corporate updates.
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1606 Corp. is a client of CFN Enterprises Inc. 1606 Corp. agreed to pay CFN Enterprises Inc. $30,000 beginning on February 15, 2023, for a three-month investor awareness campaign.
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