Driven Deliveries Archives - Green Market Report

Debra BorchardtDebra BorchardtOctober 6, 2020
Stem.jpg

5min4210

Stem Holdings, Inc. (OTCQX: STMH) is buying e-commerce and cannabis delivery company Driven Deliveries, Inc. (OTCQB: DRVD) in an all stock deal valued at $46 million. The combined company will be known as Driven By Stem and the new company will continue to trade under the symbol STMH on the OTC. It will maintain its headquarters at Stem’s current location in Boca Raton, FL. The deal is expected to be immediately accretive to earnings of Stem and should close in late 2020.

The company said that the acquisition is expected to increase scale to drive sales growth and bring cost savings estimated at $1.5 million in the first year through productivity initiatives, vertical supply chain efficiencies, and reduction and consolidation of overhead and administrative costs.  The deal is not expected to increase debt levels.

“No other cannabis company has the breadth of top-shelf brands and convenience sought by cannabis consumers which Driven By Stem will offer,” stated Adam Berk, CEO of Stem.  “We will apply Driven Deliveries’ technology, footprint, and distribution capability to all markets, and leverage our own licenses and retail dispensaries to service more consumers in every state in which we operate,” he continued.  “We are excited about the unique opportunities that this combination creates as we build a better model to adapt to the changes in the cannabis marketplace and deliver shareholder value year over year,” he concluded.

Driven Deliveries is an e-commerce and DaaS (delivery-as-a-service) provider with proprietary logistics and omnichannel UX/CX technology which will make Driven By Stem a vertically-integrated cannabis company with a DaaS platform to meet the needs of all cannabis consumers in the markets it serves.

Christian Schenk, current Chairman and CEO of Driven Deliveries, has tendered his resignation effective October 4, 2020 to pursue other interests. Brian Hayek stated, “Merging with Stem completes our transition from an online cannabis technology company and delivery service to a vertically-integrated cannabis operator, and fast-tracks our expansion strategy into new states.”  He concluded, “This is a defining moment in our history and is expected to expand our total addressable market and growth opportunities.”

Driven By Stem

The executive team will be as follows:

  • Adam Berk, Chief Executive Officer, and Chairman: Adam Berk is the current CEO of Stem and a member of Driven Deliveries’ Board of Directors. Adam Berk is the former CEO of Osmio (currently GrubHub), which was the first patented web-online food ordering system.

  • Steve Hubbard, Chief Financial Officer: Steve Hubbard is the current CFO of Stem.

  • Ellen Deutsch, EVP/Chief Operating Officer: Ellen Deutsch is the current Executive Vice President and COO of Stem. Ellen Deutsch was an executive of Hain Celestial for over 20 years prior to joining Stem.

  • Sal Villanueva, President:  Sal Villanueva is the current President of Driven Deliveries.

  • Brian Hayek, Chief Compliance Officer & Special Projects: Brian Hayek is a co-founder and current Chief Financial Officer of Driven Deliveries.

Driven By Stem will integrate Driven Deliveries’ delivery capability and its robust technology in every state in which Stem currently operates, and add Stem’s iconic cannabis brands to Driven Deliveries’ platform of over 400 cannabis products.  Stem’s brand offerings cover multiple cannabis product categories, particularly flower, extracts, edibles, and topicals with award-winning brands including  TJ’s Gardens and Yerba Buena; Cannavore an edible brand; and Doseology, a CBD mass market brand launching in 2021.  As a cannabis technology company, Driven Deliveries’ Budee and Ganjarunner e-commerce platforms will also partner with leading cannabis companies in new geographies to meet the demand for quick and accurate product deliveries.  Initial operations will span nine states.

 

 


Debra BorchardtDebra BorchardtApril 23, 2020
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14min8691

California-based cannabis retailer and direct-to-consumer delivery company Driven Deliveries Inc.  (OTCQB: DRVD) has reached its third consecutive sales record and noted that during its 420 sales campaigns it exceeded previously set sales record by another 31%.

“We are beyond grateful to have such strong partnerships with our suppliers and loyal relationships with our customers,” said Christian Schenk, CEO Driven Deliveries Inc.  “Our staff stepped up to the occasion and delivered the goods to our customers in record time while our supply chain team ensured availability of products across California to ensure the demand created by our marketing organization was fulfilled as committed,” he added.

420 Specials

The company’s retail divisions, Ganjarunner and Budee, ran concurrent sales promotions in partnership with leading cannabis brands. The promotions ranged from BOGO (buy one get one free) to percentage savings and even a few swag giveaways, including ganjarunner branded rolling trays, which were made available to consumers. In-app promotions were pushed through notifications to iOS and Android users of the company’s Weedwaves mobile application.

Both Ganjarunner and Budee introduced its “High Roller Club” to its big-spending customers, even offering year-long savings to members who spent more than $420 on the infamous 420 cannabis holiday. The campaigns drove sales in excess of $100,000 in less than a 12 hr period and resulted in over 1,000 deliveries. The push also had the added benefit of bringing in new customers with more than 300 first time orders that mostly came from organic marketing efforts versus traditional advertising.

Big Sellers

With all the kids at home, it may be that cannabis shoppers had to resort to more discreet forms of consumption. Driven Deliveries said that the largest grossing product category by volume was edibles, followed by flower, then concentrates.

“The operation and technology continue to provide scale and growth for our business,” said Sal Villanueva, President of Driven Deliveries Inc. “We were able to deliver the increased volume with our existing capacity and staff while maintaining our 90-minute promise to more than 92% of California,” he added. “We will continue to push the boundaries and exceed our goals day after day.”

Here’s a list of the 420 promotions that were offered:

ALIVE & KICKING

  • 3 CBD pre-rolls for $99

ALPINE VAPOR

  • BOGO 65% off vape cartridges
  • Save $15 when you buy 1 Alpine cart and 1g of Alpine Flower

ASTER FARMS

  • Save $100 when you buy 8 jars of flower

CLAYBOURNE CO.

  • Save $19 on grams when you buy any 1/8 flower jar

DABBLICIOUS

  • 4 grams of live resin for $140 ($40 off)

DEFONCE

  • 3 Chocolate bites for $40 ($50 off!)

HONEY

  • 3 vape cartridges for $90 ($15 off!)

HOUSE OF SAKA

  • BOGO bottles! ($45 off!)

KAMATREE

  • ½ oz flower for $120 ($20 off when you buy 4)

KOROVA

  • 3 bags of cookies for $50 ($10 off!)

KUSHY PUNCH

  • 4 boxes of gummies for $60 ($20 off!)

NORTHERN EMERALDS

  • Save $30 when you buy any 5 pre-rolls (5 for $50!)
  • Save $40 when you buy 4 jars of flower

MISS MIRUMS

  • 4 gummy tins for $60

OLD PAL

  • Old Pal Rolling papers included with any Old Pal purchase while supplies last

ORCHID

  • Vape Cartridge and battery kit for $70 ($15 off)
  • Save $20 when you buy 2 vape cartridges

PURE BEAUTY

  • Buy 2 PB products and get an exclusive face mask for a penny
  • 2 cigarettes for $80 ($20 off!)

REBEL COAST

  • 2 bottles of cannabis-infused beverages for $75 ($15 off!)

SENSI CHEW

  • 20% off entire brand of edibles

SMOAKLAND

  • 4 grams concentrates for $120 ($20 off!)
  • Smoakland vapes 4 for $100 ($40 off!)

TRUE FARMA

  • 2 tinctures for $50 ($30 off!)

 



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