- Curaleaf, the largest US cannabis company by market capitalization, will have a new CEO on January 1st – Joseph Bayern to take over Joseph Lusardi.
- The Bavarians told Business Insider it was focused on expanding Curaleaf’s presence in northeastern states like New Jersey, Massachusetts and New York.
- New York could “be one of the most convincing markets in the US in the next few years,” said Bayern.
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Curaleaf, the largest US cannabis company by market value, has a new Joseph to take over management.
The President of Curaleaf, Joseph Bayern, who joined the company in December 2019, will succeed Joseph Lusardi with effect from January 1. Lusardi will remain Vice President of Curaleaf.
Bayern told Business Insider in an interview Wednesday afternoon that it expects to have its hands full in the coming months as the company continues to deliver the financial results that analysts consider impressive.
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“We believe that the US cannabis industry is at a turning point and the scales are tipping in our favor,” said Bayern after the results of Curaleaf in the third quarter. “We believe 2021 will be a pivotal year for us and the US cannabis industry.”
The company had revenue of $ 193.2 million for the quarter, up 55% from the previous quarter, and a net loss of $ 9.3 million.
Vivien Azer, an analyst at Cowen, said Curaleaf is the leading revenue driver among U.S. cannabis companies, raising its target price on the stock from $ 12 to $ 15 in a Wednesday note. The stock closed at $ 9.78 on Thursday.
New York could be “one of the most compelling” cannabis markets in the US
After four states, including New Jersey and Arizona, voted to legalize recreational cannabis in the November election (and Mississippians voted to legalize medical marijuana), companies like Curaleaf began building capacity to open new markets dominate when they go online.
For their part, Bayern say Curaleaf’s strong Northeast presence – in states like Massachusetts and New Jersey – stands out from the competition.
Curaleaf, headquartered in Massachusetts, operates a 51,000 square meter facility in New Jersey and one of the largest medical cannabis dispensaries in the state.
While New Jersey, with its proximity to Philadelphia and New York City, represents a great opportunity in its own right, Bavaria says the state will serve as a kind of “fulcrum” for neighboring states like New York and Pennsylvania to legalize marijuana.
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“Personally, I think New York could be one of the most compelling markets in the US in the next few years,” said Bayern. He pointed out that the state has a relatively restrictive medical marijuana program, which means that many consumers – at least in the legal industry – are on the sidelines.
This, combined with the population density and relative purchasing power of New York State residents compared to other states, means there is a lot of money to be made for cannabis companies.
A senior advisor to Governor Andrew Cuomo said earlier this month that lawmakers are planning to add legalization to the state budget before April – specifically to offset budget constraints due to the pandemic – despite previous attempts to legalize marijuana in the state failed for two years are in a row.
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Like other cannabis CEOs before him, FC Bayern entered the industry after a long career in the consumer goods business. Previously, he was CEO of VOSS, a Norwegian beverage company, and held senior positions at Cadbury Schweppes and Snapple Beverage Company.
He says the CEO change is part of Curaleaf’s “board-level” long-term succession planning.
“It was a long-term decision and we believe that this is the perfect time for the transition with the major acquisitions behind us,” said FC Bayern.
In the past two years, Curaleaf closed a $ 830 million deal to purchase grassroots cannabis and spent $ 949 million on West Coast cannabis company Cura Partners, which, under the leadership of Lusardi, built the largest cannabis company in the United States.
Bayern led the integration of the two companies in Curaleaf, the company said in a statement.
After the acquisitions, FC Bayern said its role is now to run and “grow” the wider business.
“That’s my background,” said FC Bayern. “So it is a natural time to step in.”