Navigating the path from concierge to cannabis, ADM Labs has taken a vertically-integrated approach to their business, extracting cannabinoid isolates from hemp and selling those CBD oils directly to product makers and retailers.
ADM Labs’ namesake is Arman Motiwalla, the founder and CEO of One Concierge, a hospitality and lifestyle management company for high net worth individuals. Nico Anthony, ADM Labs’ executive vice president, was on hand at MJBizCon to explain how this opened the door to cannabis.
“We were helping facilitate [a] sale for one of our NFL players,” he says, a deal that saw the athlete’s cannabis business being sold to a cigarette manufacturer. “Throughout that process, making the trips back and forth to Denver, we heard about CBD each and every time … we saw this as an extreme opportunity.”
In fact, it’s such an extreme opportunity that the only challenges Anthony identifies for the growth of ADM Labs are, in fact, ‘good’ problems to have.
“The biggest challenge is … really just delays,” he says. “The demand exceeds the supply by such an exponential rate that when you’re going to secure or procure the proper equipment and machinery in order to support the demand … the lead time on these [can push you] out three to six months.”
Though ADM Labs have a unique origin story, the high-demand for hemp-based CBD is industry-wide. New Frontier Data estimates the CBD industry will be worth $2 billion USD by 2022 and notes that in 2017 sale of “hemp-derived CBD products outpaced marijuana-derived CBD products.”
“Demand starts to get really, really high because everybody's so interested in product,” says Neko Febo, Anthony’s colleague at ADM Labs. “The one downside of actually selling so much product is that the demand actually grows higher, and when the demand gets higher … then we have to start scaling up.”
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