LOS ANGELES–DreamFields, a licensed manufacturer and distributor headquartered in Desert Hot Springs, CA are a fully vertically integrated, production facility and employ close to 100 people. In May 2019 the company’s flagship brand, Jeeter, did not rank amongst the top 20 pre-roll brands in California.
By May 2020, Jeeter has grown to be the third highest selling pre-roll brand in California according to BDS Analytics. The company was founded by Sebastian Solano, who previously was featured on Forbes 30 Under 30 for his work in the music industry, and Lucacz Tracz, who has been called a ‘marketing genius’ by the Huffington Post. Soon after founding the company, the pair were joined by Scot Garrambone, Petar Dimitrov and David Solano and permanently settled near their headquarters in the desert community.
The DreamFields team applied their previous marketing experience and ability to build a brand to launch their house brand, Jeeter, in early 2019. As the demand for the Jeeter brand increased across California with the smash hit of their new line of mini infused joints, Baby Jeeters, a new challenge arose- production costs outpaced the cash collection cycle.
DreamFields attributes their success to 2 factors: their superior quality products and access to capital by working with Bespoke Financial. Bespoke is a lender providing flexible debt financing to cannabis operators without requiring owners to give up equity in their business. “The financing from Bespoke was a game-changer,” says CEO Sebastian Solano “It allowed us to access capital in a flexible way that doesn’t dilute our own or our shareholder’s equity value. It’s been perfect for us…this is the best option!”
Dreamfields used Bespoke’s financing to both scale up Jeeter production and drive better margins. With Bespoke’s line of credit in hand, Dreamfields was able to get the first spot in line to purchase premium flower in bulk by paying COD while maximizing savings. The company was also able to shift from ordering packaging materials on an ad-hoc basis, which increases transportation costs, to having regular shipments of packaging materials sent from their supplier, drastically reducing costs. As demand and sales continued to grow, so too did Dreamfields’ line of credit from Bespoke, removing the costly and distracting exercise of repetitive capital fundraising.
“The most vital thing has been the flexibility to access the capital we need to increase production to keep up with demand. This is a very capital-intensive industry, and the partnership we’ve cultivated with Bespoke Financial has been crucial to our success.”
By May 2020, Dreamfields’ success was obvious. Despite decreased investor interest in cannabis, volatile raw material costs, and many other challenges, Jeeter sales grew by nearly 1000% into the largest pre-roll brand in California as of March 2021. The company is now able to engage equity investors from a much more impressive position given the tremendous growth in revenue and brand awareness.
Highly Capitalized. Copyright ©2021. This Content is in partnership with Bespoke Financial. Reproduced with permission from Bespoke Financial. See original article here.