“This partnership between MLCG, PURA and Spanish Peaks is a sound strategy for every participant, and an opportunity for the shareholders of every participant to take part in the history making and money making transition from an illegal marijuana market to a legal one.”
Global travel is growing by leaps and bounds, and at the same time splintering into a seemingly endless number of extraordinary diverse market segments. In 2000, international travelers number about 600,000,000. In 2015, the number of global travelers reached 1.2 billion. Travel industry sales topped $2.1 TRILLION in 2015 and travel sales are expected to reach $2.5 TRILLION by 2020.
The massive, overall travel sector is segmenting into super specific sectors characterized by travel trends that include, for example, not just travel for women, but travel for women in India; not just mindfulness travel to include yoga and meditation sessions, but African safari, mindfulness travel. Millennials in the travel industry are likely to be called “Roamies” – co-living nomads traveling around the world while co-living within a consistent community that all travel together. One of the faster growing travel segments includes history hikes across the Middle East. Theme park vacations are continuing to become more and more popular in Asia. And the segmentation diversity goes on. Cannabis tourism is hardly a stretch.
A consistent, yet underserved theme that crosses every travel segment is that sub-segment of travelers looking for luxury treatment and accommodations whether on safari in Africa or on trek across the Middle East. ML Capital Group has zeroed in on the luxury sub-segment and already operates a luxury tour service in Hawaii. ML Capital Group has also recognized the expanding role of mobile technology within the travel industry and launched a dedicated initiative to build a mobile brand.
As a young, entrepreneurial company dependent on access to investment capital, it is simply practical to identify popular investment trends, and if possible, integrate popular trends, where appropriate, into the overall business strategy. The cannabis sector is certainly hot and not by accident, or misplaced enthusiasm. Face it, cannabis has been a multi-billion dollar business in the United States for decades. It just hasn’t been a legal business. By comparison, alcoholic beverage sales in the US before the end of Prohibition in 1933 were large and colorful enough to inspire Hollywood scripts that have yet to stop coming, and the growth of the legal alcoholic beverage sector continues to grow today over eighty years since legalization. There are, no doubt, fortunes to be made in becoming part of the transition from illegal marijuana commerce to legal.
Taking a page from the super-segmentation of the 2.1 trillion travel industry, let’s not underestimate the segmentation potential of the marijuana industry. It’s not all about smoking weed. In fact, smoking weed will probably be only a fraction of the overall cannabis sector. Cannabis infused cosmetics are already on shelves. “Edibles” as a category can’t begin to represent the vast diversity of cannabis infused products for human consumption that are already hitting the market. Let’s not overlook all those weed t-shirts or the high-end clothes actually made from cannabis fiber. Again, with the far-reaching subcategorization potential of both the travel industry and the cannabis industry, luxury cannabis tourism is hardly a stretch.
While you might agree that luxury cannabis tourism is a viable business opportunity, you might still be asking how does acquiring a cannabis infused beverage company contribute to MLCG entering the luxury cannabis tour business?
Consider the vineyard tours in Napa Valley or Tuscany; Picture the distillery tours in Scotland or the brewery tours in Bavaria. This should give an idea of the magnitude of the opportunity MLCG plans to build into Colorado’s $19 billion travel market with the help of Spanish Peaks ScrumpDelicacies and Puration.
As an industry, however, cannabis cultivation and production has a long way to go in regard to becoming a universally attractive tourist destination. Having evolved from clandestine grow room operations, today’s legal cannabis cultivation and production operations may be interesting, but probably not exotic or anywhere near a typical “luxury” destination.
Now is the perfect time for MLCG to get involved with Spanish Peaks and PURA. Earlier this year, PURA and Spanish Peaks entered into a $1 million collaboration agreement to produce a line of cannabis Infused beverages. In conjunction with the agreement, Spanish Peaks conducted a cannabis beverage naming contest and announced the contest winners on October 21, 2016:
Puration and Spanish Peaks Announce Cannabis Beverage Name Contest Winners - First CannaCola Second CannaBliss and Third Canna Pur
Since the contest, Spanish Peaks has worked to establish brand name trademarks and to develop beverage formulations. With MLCG getting involved at this early stage, the Spanish Peaks and PURA production facilities can be designed with luxury tourism in mind. Consider the Napa Valley comparison one more time. Nearly 25% of Napa Valley wines - almost $1 billion in wine sales - are sold to customers directly at the vineyards. That’s selling wine to tourists.
This partnership between MLCG, PURA and Spanish Peaks is a sound strategy for every participant, and an opportunity for the shareholders of every participant to take part in the history making and money making transition from an illegal marijuana market to a legal one.
While the Luxury Cannabis Tours offering will start in Colorado, additional Cannabis Tour locations, to include destinations outside the United States, are already in the works. Stay tuned.
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