Grown Rogue N.J. affiliate talks up first year of sales

Executive Summary

• Grown Rogue International Inc. provided an operational update on its New Jersey affiliate, ABCO Garden State LLC, marking the one-year anniversary of its first sale on December 11, 2024.
• The affiliate has exceeded initial production targets, achieving full sell-through with average monthly sales exceeding 600 pounds of flower, surpassing the initial target of 500 pounds per month.
• Construction of Phase 2 is underway, which is expected to double production capacity to greater than 1,000 pounds per month upon completion.

Key Details

• Production Volume: Average monthly product sales now exceed 600 pounds, with over 80% of sales represented by branded, packaged product.
• Brand Performance: The value brand "Yeti" saw significant growth, with monthly sales increasing from approximately 96 pounds in June to approximately 203 pounds in November.
• Capacity Expansion: Phase 2 construction is currently under way; once fully completed, production capacity is expected to increase to greater than 1,000 pounds per month.
• Market Context: The company noted that the ramp-up took longer than anticipated but emphasized a focus on delivering quality product at a competitive price point to drive consumer recognition and retailer support.

Notable Quotes

• "As we celebrate our first full year of sales in New Jersey, we have learned a great deal about the Northeast markets and the specific structural and consumer dynamics that exist in New Jersey... The ramp has taken longer than we wanted, but we never wavered from our underlying philosophy that customers want great product at a great price, and we are built to deliver on that with prudent scale." — Obie Strickler, CEO
• "Our sales and operations team is energized to have phase 2 under way, and we believe the next phase of expansion will allow us to deepen our presence in the New Jersey market while staying true to our disciplined approach to capital deployment." — Obie Strickler, CEO