A sampling of some of the products sold by Edibles.com | Photo courtesy: Edibles.com
Since 1999, Edible Arrangements has been known as a franchise brand selling colorful fruit and chocolate bouquets. Think pineapple rounds carved like daisy petals with perfect melon-ball centers. Chocolate-dipped strawberries dunked in sprinkles. Honeydew spears.
It’s the kind of gift you might send to your grandma for her birthday.
But for the last year or so, Edible Arrangements has been leaning into its name in a whole new way.
Parent company Edible Brands, which bought Mediterranean fast-casual chain Roti out of bankruptcy early this year, is expanding the reach of its recently launched Edibles.com channel, selling hemp-derived THC products to 65% of the country via direct shipping and, now, through same-day delivery in Texas, Florida, Georgia and North Carolina.
And early next year, the company plans to open its first “dispensary light” retail location, selling THC-infused gummies and beverages from a storefront in Atlanta, where it is headquartered.
It’s a business opportunity that’s about more than just having “edible” in the name.
“To be honest, I was like, ‘Why would Edible Arrangements want to do this?’” said Thomas Winstanley, EVP and general manager of Edibles.com, who came to the company last year after serving as CMO of cannabis company Theory Wellness. “What really struck was this conversation that began to develop with them … They said, ‘We have 600 franchisees, 700 franchisees across the country that can reach 85% of the U.S. last mile.’ And I thought, ‘Well, that is really interesting.’”
It’s not the first time Edible Arrangements has tried to enter the cannabis space, Winstanley said. The company attempted to get into the segment in 2019 or 2020, just after the passage of the 2018 Farm Bill that allowed the federal sale of hemp-THC products containing 0.3% or less THC by weight. But it was “way too early,” he said.
Edible Brands is helmed by CEO Somia Farid Silber, daughter of Edible Arrangements founder Tariq Farid.
At least for now, there is a “clear firewall” between Edible Arrangements and Edibles.com, even though everyone currently selling hemp-THC products is a current Edible Arrangements franchisee. There are no THC products in the front of Edible Arrangements stores, no signage or other giveaways. All packaging and shipping operations are handled from the backroom.
“We wanted to make sure we were being respectful to the core audiences of edible arrangements,” Winstanley said. “We know that perceptions have changed around THC products, but we also didn’t want to do something that might make our Edible Arrangements core customers uncomfortable, so we kept a very clear division between the two operations.”
Currently, about 20 Edible Arrangements stores have signed on to do last-mile fulfillment of hemp-derived THC products in four states.
Following the ever-changing state regulations around the sale of these items is a big task. Winstanley said he requested outside legal counsel on retainer during his first week on the job. And he works closely with national trade organizations that lobby in support of the industry.
It is hard to nail down who Edible Arrangements competes with in the hemp-THC space, given that it crosses so many distribution channels. Many suppliers of these products already ship direct to consumers in states where the practice is legal. DoorDash early this year began delivering THC-infused drinks and edibles. In many states, consumers can buy the products in convenience stores, supermarkets and liquor stores.
“The biggest competition is probably ourselves here, trying to build something without wondering what everybody else is doing,” Winstanley said. “We have this omnichannel approach, where it’s e-comm, it’s marketplace, it’s fulfillment, it’s retail. We’re taking a lot of different bites of the apple.”
He sees plenty of runway for a business that is in its infancy, especially if the retail store succeeds and can grow.
“Hemp represents this democratization of selling THC products that previously, with cannabis, did not exist,” he said. “If we create a retail concept that does well, and somebody wants to open up an Edibles.com retail location in a legal market, well, that becomes really interesting because, for a fraction of the cost, they can participate and run something very similar to a dispensary.”
And maybe, someday in the not-too-distant future, the Edible Brands will align and Mom might receive a fruit bouquet studded with THC gummies for Mother’s Day. Maybe.
“I’m a big believer in building brands that are dynamic, that show up in places that you don’t necessarily think about the first time around,” he said. “But I think right now, we want to build the business. And I also don’t want the business to be successful because of another business. I want it to be successful because it is something that deserves to exist. Hemp needs operators like us to make this category mature.”
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