Marijuana Business Magazine - April 2018

inspiration as some of the top choco- late companies in the world, not in the cannabis space. One of our inspira- tions was a company called Vosges, out of Chicago, that produces some of the world’s best not-infused choco- late. We said, ‘You know consumers in the cannabis market should have the same access to that kind of quality without having to compromise simply because it has cannabis in it.’” To distinguish Coda Signature products, Grindeland hired Lauren Gockley, a chocolatier who studied at Valrhona, a premium French chocolate manufacturer. Gockley honed her craft in the dessert kitchen of celebrity chef Thomas Keller’s New York restaurant, Per Se. She’s also been named one of Dessert Professional magazine’s top 10 chocolatiers in North America. “Lauren’s love of chocolate has been the driving force behind her creativity in developing award-winning products for Coda Signature,” Grindel- and said. “She understands that more than any other food, chocolate has a special place in our lives.” Coda Signature buys a mixture of dark, milk and white chocolate directly from Valrhona. The company sources the chocolate from its cocoa farmers in South America. For its edibles, the company uses bold spices – including Szechuan pep- percorns, smoked sea salt and burnt sugar crystals – as well as fresh ingre- dients such as Earl Grey tea, Colorado honey, dark-roasted hazelnuts and tart blood orange. To make its cannabis oil, the com- pany relies on supercritical carbon dioxide extraction to extract the oil from the plant flower. Coda Signature and other advocates of CO2 extraction contend it produces a “clean” can- nabis oil that's free of contaminants – versus butane extraction. “CO2 is a naturally occurring compound that leaves behind no residues,” Coda Signature notes on its website. “No additives, toxins, heavy metals or hydrocarbon materials come in contact with our essential cannabis oil.” Sifting out an Exorbitant Price When the time came to set a price for its edibles, Coda Signature essen- tially wanted Godiva-quality chocolate at Hershey’s prices. “I wanted people to view our prod- uct as something they could have any day,” Grindeland said. “It doesn’t have to be a special event or a gift. That’s why we priced ourselves at the midpoint of our competitors .” Coda Signature’s candy bars and truffles – which come in serving sizes of six and 10, respectively – are generally priced in stores from $18 to $24. Single servings of hot chocolate cost $6-$8. To set prices, Grindeland said, Coda Signature needed firsthand experience to understand how to differentiate its brand. The team studied the Colorado market by trying competitors’ products and comparing price, packaging and merchandizing. The company’s efforts helped it gain traction. Self-distributing also helped, Grind- eland said. The delivery team supplies its products directly to retailers, using the visits as an opportunity to talk with and train budtenders about quality and what to expect in terms of experience. BDS Analytics’ retail tracking data shows that in almost two years – seven quarters – Coda Signature has claimed a 26% dollar share of Colo- rado’s adult-use stores, making it the No. 2 infused chocolatier in the market as of the fourth quarter 2017. Prepare for Expansion Now that Coda Signature has gained traction in Colorado, the com- pany is ready to go national, Grind- eland said. In January, he brought on confectionary veteran Patrick Zachary to make that happen. “Patrick is the perfect complement to Lauren’s artistry. He brings the experience and expertise to help Coda Signature scale on a national and international basis,” Grindeland said. Zachary has handled operations for major confectioners. Most recently he worked for Enstrom Candies in Grand Junction, Colorado. And before that EXECUTIVE SUMMARY Upstart edibles company Coda Signature was the No. 2 infused chocolatier in Colorado by way of market share at the end of 2017. The company is planning for national expansion and is eyeing Canada. Coda Signature relies on the following: • The company uses high-quality chocolate sourced from Latin American cocoa farmers. • Coda Signature’s head chocolatier, Lauren Gockley, studied at Valrhona, a premium French chocolate manufacturer, and worked at celebrity chef Thomas Keller’s New York restaurant, Per Se. • The company aims to provide Godiva-quality chocolate at Hershey’s prices. To set prices, Coda Signature studied the Colorado market by trying competitors’ products and comparing price, packaging and merchandizing. • For its expansion strategy, Coda Signature plans to use both licensing and company-owned production facilities. Mark Grindeland is the co-founder and CEO of the Colorado-based edibles manufacturer Coda Signature. Courtesy of Coda Signature 86 • Marijuana Business Magazine • April 2018

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