Alcohol and logistics platform company Saucey and cannabis delivery platform have been acquired by the newly formed Pacific Consolidated Holdings (PCH). The two will debut as the vice platform centered on delivery, data insights, and logistics. PCH said its goal is to become the next generation, vertically integrated vice platform, with a focus on e-commerce, delivery logistics, and cross-industry behavioral insights that have yet to exist in the vice industry.
PCH said that the merger of Saucey and Emjay is a direct response to over 70% of Saucey respondents within the California market reporting that they’d strongly like the opportunity to purchase cannabis products, highlighting a consumer desire for ordering across vice-related commodities. To start, Saucey users in Los Angeles will be able to seamlessly create an Emjay account using their Saucey login. Customers will now able to toggle between and create accounts for Saucey and Emjay with the tap of a button, making the experience convenient, streamlined, and efficient.
PCH was formed in partnership with The Inception Companies and Saucey co-founders Chris Vaughn (CEO), and Daniel Leeb (COO) who now serve as PCH’s management team. By being the first company to combine years of consumer insights spanning behavioral and purchase data across alcohol, cannabis, tobacco, CBD and consumer product categories, PCH is uniquely positioned to address rapidly evolving consumer behaviors, and truly understand a customer’s journey between vice categories. PCH’s other holdings include ownership in cannabis cultivation, as well as additional licenses up-and-down the cannabis supply chain.
“We’ve spent the past decade in bev-alc at the forefront of providing solutions to changing consumer shopping behaviors. What we’ve seen is a more exploratory customer than the industry recognizes, ready to try new form factors, products and categories. The one consistent theme is they want to be able to discover and shop these products conveniently, and to be able to trust their platform of choice. The strength of PCH is that we’re able to provide unparalleled and personalized cross-industry shopping experiences to consumers, while also having the data to understand customer behaviors between cannabis, alcohol, tobacco and CPG. When you combine this with the diversified infrastructure of PCH and the incredible team we have working on these opportunities, it gives us the flexibility and the foundation for best serving the future of these industries.” says Chris Vaughn, CEO of PCH.
The Inception Companies have been deploying capital across the supply chain of the cannabis industry since 2015. Through these investments, they bring the experience of having had a seat at the table of some of the largest operators in the industry, spanning cultivation, retail, brands and real-estate.
“The broader cannabis market has largely struggled due to weak underlying fundamentals and poor management. But much like the dashed expectations that came with the rise and fall in the DotCom era, this industry is now evolving into Cannabis 2.0.”, said Omar Mangalji, co-founder of The Inception Companies.
He continued to say, “We strongly believe the companies focused on providing customers with the best quality and consistency will be the ones who win long-term. IInception has always focused on sustainable profitability, best-in-class corporate governance, and most importantly the end consumer. The amalgamation of PCH represents to us the most powerful combination of assets across the supply chain. Combined they are uniquely able to leverage years of cross-industry behavioral and consumer data to bring customers a high quality, dynamic experience. It’s led by an exceptional and experienced team that has already begun to prove the PCH philosophy and with whom we’ve worked very closely.”
With this merger, PCH is poised to become the largest vice delivery platform company by market reach with best-in-class operations. Within an interview, PCH executives can speak to the far-reaching impact of this M&A deal on the state of vice industries, including insights into:
The Amazon of Regulated CPG: Pacific Consolidated Holdings will leverage the proprietary logistics technology of both Saucey and Emjay to provide leading last-mile delivery operations and consumer shopping experiences. The combined platform bolsters Pacific Consolidated Holdings’ ability to grow and acquire customers, acquire and operate new ventures, as well as extend license application efforts in new markets across the country.
Real Growth Through Real Estate: With additional cannabis licenses in progress and plans to expand its geographic footprint, Pacific Consolidated Holdings is positioned to accelerate Emjay and Saucey’s growth trajectory, and plans to hire more than 100 team members in the coming months.
Visions for Vices: With Pacific Consolidated Holding’s roll-up merger of Saucey and Emjay complete, the team is focused on further scale and expansion, operational efficiencies between the platforms, and introducing consumer offerings that solve for today’s changing purchasing habits across vice categories.