GSO Printing LLC (“GSO”) is an established, scalable commercial printing company that specializes in manufacturing standard and specialized packaging for the developing legal cannabis industry in the United States.
GSO currently owns and operates state of the art equipment which allows the business to print, manufacture and seal standard and specialty mylar bags, the preferred packaging solution for cannabis products in the United States. After spending the past 8 months, learning how to operate, service and maintain the highly specialized equipment and the intricacies of the materials and product applications, GSO is now uniquely positioned to expand its production capacity and capture a huge portion of the United States market share for cannabis product packaging.
This document speaks to the opportunities and solutions for realizing its potential:
* Scaling up production through addition of manufacturing staff;
* Bulk material acquisition and bulk purchase, discounted costs;
* Development of sales teams and art department;
* Acquisition of additional equipment to further increase production.
Management has the vision and skills to chart a course for success, and the ability to continue to build its position as a leader in the Cannabis Industry Packaging business.
History of the company:
James Bilbao, Founder and CEO, originally set out to start a business in cannabis distribution. From the outset, his plan was to design and package his own products. Due to the Covid-19 pandemic, the processing of James’ distribution license application was delayed indefinitely by the City of San Francisco. During the delay James began to research the packaging business and decided to purchase a small amount of printing equipment for R & D purposes. Immediately after purchasing the equipment his associates in the cannabis industry began requesting that he do print jobs for them. His knack for graphics and technical understanding of the equipment suddenly put his talents in high demand. James recruited Raquel Manzanares to assist him in managing the business, then began purchasing more
In 2019 when GSO began, it shared space in a 900 s/f building in San Bruno California. After six months, it had taken over the entire building and after another 3 months it had completely outgrown that location. The Company then moved to South San Francisco, renting a 3,500 s/f industrial building. After only 1 year, GSO had outgrown its South San Francisco location too, with its eye on a bigger expansion opportunity. The GSO team determined that they would need a much larger facility with significantly more power, security and data capabilities in order to acquire equipment that could produce the print all over mylar pouches that were in high demand in the cannabis industry. In order to house the Xeikon suite of pouch making equipment, GSO moved into a 13,000 s/f building in Hayward CA.
During the moving processes Management learned how much work goes into locating and securing a suitable building with the requisite electrical and data capabilities then executing a full company move, including equipment and staff while continuing to run the business.
By way of a small miracle, right in the middle of the supply chain mess of 2021, the equipment was delivered and installed in Q4 2021. GSO began training on the equipment in Q1 2022.
The Business Opportunity
With Cannabis becoming legal in more states, the demand for packaging is strong and growing. The opportunity for filling that demand is why GSO acquired the equipment and has spent the last 6 months perfecting its packaging process.
Management sees that by being the first “cannabis-focused” packaging producer in the United States with full printing, manufacturing and sealing capabilities, GSO will be able to establish industry best quality and production times. Along with customer IP protection and GSO’s specialty bag production capabilities, GSO will create strong brand recognition, customer loyalty, and high demand for its products.
GSO is drafting plans to open two future locations, one on the East Coast, and another in a centrally situated Mid-West location, enabling it to become the largest cannabis-packaging manufacturer in the United States.
Market for Cannabis packaging
Over the past 10 years the cannabis packaging industry has increased remarkably. With cannabis becoming legal in over 15 states and being used for medical reasons in over 20 states and counting, the demand for custom packaging is high and growing rapidly.
Studies show the cannabis packaging market was valued at USD $101.48 billion in 2020 and is expected to reach USD $297.51 billion by 2026, at a CAGR of 22.59% over the forecast period 2021 - 2026. The cannabis packaging market is anticipated to experience significant growth over the next few years, owing to the rising demand for medical and recreational cannabis products for consumption. The increasing legalization of cannabis in various countries is likely to drive the future market. (MORDOR INTELLIGENCE)
Packaging Capabilities:
GSOP supplies several types of packaging, including but not limited to:
1. Die cut direct to print mylar bags
2.Direct to print mylar bags
2. Sticker mylar bags
3. Sticker jars
4. Sticker concentrate jars
5. Pre-roll tubes
6. Custom packaging, as defined by our customers
Competitive Advantage
GSO will be the first company manufacturing mylar bags in the US and delivering into the cannabis industry.
a. GSO's fast turnaround times plus the principal’s intimate knowledge of the cannabis industry allowing customers to retrieve their project in segments (needed to package our customers’ freshly harvested products), GSO maintains competitive advantage over other packaging producers, who deliver packaging as a “secondary” line of their businesses.
b. GSO delivers packaging at pricing that is comparable, and often lower, than its competitors.
c. GSO constantly scours the packaging market for new packaging industry trends and incorporate these into its product lines as soon as they are available.
d. Management stays up to date on all new cannabis packaging laws in this constantly changing industry.
e. GSO offers custom graphic design digital and 3-D animation at a competitive price, and with shorter delivery times than our competition.
f. GSO keeps its cost low on design work to allow customer to make more designs; this, in turn, leads them to purchase more packaging.
g. Management has strong ties and working relationships in the cannabis industry with some of the owners of some of the biggest cannabis companies in California.
Customer Relationships
GSO's current customers are based across the United States, with the majority of them along the West Coast but is now seeing demand from customers across the country.
Current Production Challenges
1. Challenge: On a daily basis, GSO’s equipment has the capacity to deliver 30,000-40,000 bags per day but is currently only producing 15,000-20,000.
Solution: Hiring and training of additional equipment operators allows for increased production hours.
2. Challenge: Printer can print up to 100,000 bags per day. The converter can only process 30,000-40,000 bags per day.
Solution: Purchasing an additional machine will double daily bag production.
GSO Production Equipment (Current)
* 4 Roland Vg2 Wide Format Digital Printers * 1 Lec 2300 Uv Specialty Print * 2 Laminators Wide Format Heat Assisted Cold Laminator
* 1 Summa F-series Flatbed Cutter * 1 Graphtec
* 1 Lef 2300
* 1 gm l coat
* 1 Xiekon cx500 High speed Label press (August 2021)
* 1 Sun Center Pouch Packaging machine-SCSP-600