Phoenix, Arizona--(Newsfile Corp. - May 11, 2021) - The Stock Day Podcast welcomed STEM Holdings, Inc. (OTCQX: STMH) ("the Company"), a leading omnichannel, vertically-integrated cannabis branded products and technology company with state-of-the-art cultivation, processing, extraction, retail, distribution, and delivery-as-a-service (DaaS) operations throughout the United States. CEO of the Company, Adam Berk, joined Stock Day host Everett Jolly.
Jolly began the interview by commenting on the Company's significant revenue growth over the last several quarters, including $12.88 million in revenue for the second quarter of 2021. "How did you get there?", asked Jolly. "A lot of hard work," said Berk. "I think one of the biggest reasons is partly because of our acquisition with Driven Deliveries, Inc., which happened in December of 2020," shared Berk, noting that the adoption of the Company's brand also spread significantly during this time. "We have a lot of new consumers."
"What is a DaaS platform?", asked Jolly. "That is Delivery-as-a-Service, and that is our Driven Deliveries platform underneath Buddy.org and Ganjarunner," said Berk. "We have three non-storefront retail licenses in the state of California now doing about 1,000 deliveries a day on the DaaS platform with 60 minutes or less for a delivery," he continued. "This is just the beginning. We will be launching Oregon later this month for delivery and then moving across aggressively throughout the country with our DaaS."
"What was the rationale for purchasing Driven Deliveries, Inc.?", asked Jolly. "In order to understand the rationale, it is important to understand where I come from," said Berk. He then shared that his background includes online food ordering and delivery, where he served as the CEO of the first patented, online food ordering company. "It was originally called Osmio, it became GrubHub," shared Berk. "I knew how hard it was to build it from the ground up."
"At STEM Holdings, we were building a vertically integrated omnichannel cannabis company, but in the back of my mind I knew I needed to add eCommerce and delivery," continued Berk, adding that this plan was eventually expedited due to the increasing eCommerce demands of the COVID-19 pandemic. "That is why we bought the second largest cannabis delivery company in the state of California, Driven Deliveries."
"What do you mean by farm to home?", asked Jolly. "We have cultivation," said Berk, noting that all of their facilities are fully organic and sustainable. "We grow, we drive, we process it, we package it, and we move it all the way through our distribution channel," said Berk. "Not only do we sell our own brands, but when we bought Driven Deliveries they had about 500 SKUs on the platform and 25 vendors," he added. "In the last 100 days, we have added another 500 SKUs and another 25 vendors."
"You are in five states right now, correct?", asked Jolly. "Currently, we are in California, Oregon, Nevada, Massachusetts, and we just announced Michigan as well," said Berk.
"What is the integration and strategic plan going forward?", asked Jolly. "We have broken it down into 100 day intervals," explained Berk. "The first 100 days, it was important to check off a few boxes. We needed to be integrated with our accounting team and centralize all reporting functionality," he said. "The second thing we needed to do over the first 100 days was to increase the SKU count," said Berk, noting that these goals are now completed. "Consumers want choice."
"We also hired all new drivers in Oregon, and that is going to be our first expansion state," continued Berk. "So, we will be launching that state later this month for eCommerce and delivery," he said. "Lastly, we needed to develop our new name, which is going to be Driven By STEM, and we will make an official name change within the next 90 days."
"How would any kind of change in cannabis legislation change your business model?", asked Jolly. "I think what we are looking at is the safe banking," said Berk. "There is really only one function of it that is key to me and that is credit card processing," he explained. "This would increase the adoption rate of eCommerce and delivery of cannabis, we believe, by over 10x and will also increase the average check."
To close the interview, Berk expressed his confidence in the Company's unique and relevant business model. "eCommerce and delivery is the future of every business. No one is doing it as aggressively and as scale as we are on the West Coast, and we will be aggressively moving across the entire country," closed Berk.
To hear Adam Berk's entire interview, follow the link to the podcast here: https://audioboom.com/posts/7862880-stem-holdings-inc-discusses-the-future-of-cannabis-ecommerce-and-delivery-with-the-stock-day-po.
About Stem Holdings, Inc.
Stem is a leading omnichannel, vertically-integrated cannabis branded products and technology company with state-of-the-art cultivation, processing, extraction, retail, distribution, and delivery-as-a-service (DaaS) operations throughout the United States. Stem's family of award-winning brands includes TJ's Gardens™, TravisxJames™, and Yerba Buena™ flower and extracts; Cannavore™ edible confections; Doseology™, a CBD mass-market brand launching in 2021; as well as DaaS brands Budee™ and Ganjarunner™ through the acquisition of Driven Deliveries. Budee™ and Ganjarunner™ e-commerce platforms provide direct-to consumer proprietary logistics and an omnichannel UX (user experience)/CX (customer experience).
For further information, please contact:
STEM HOLDINGS, INC.
KCSA Strategic Communications
Valter Pinto or Elizabeth Barker
+1 212-896-1254 or +1 212-896-1203
About The "Stock Day" Podcast
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