Sunderstorm, Inc. has operated in the U.S. cannabis market for almost a decade, but the California company is turning toward the global stage.
The maker of KANHA gummies is opening a manufacturing facility near Bangkok, Thailand with the goals of supporting the country’s medical cannabis market and exporting its products to other markets worldwide.
Cameron Clarke, co-founder and CEO, Sunderstorm, Inc.
Cameron Clarke, Sunderstorm co-founder and CEO, said expanding to Thailand aligns with KANHA's brand story, which aims to break away from stigma and spotlight cannabis’ wellness benefits.
“We wanted to move beyond that and focus on the story of cannabis being uplifting, leading to a life of wellness, leading us to happiness, connection,” Clarke said. “We developed this brand that had a look and feel based on these new-age concepts and connection to Asian culture. We felt like plant medicines and herbal medicines have been an important part of Asian culture for quite some time.”
Similar to the U.S., Thailand has long had an illicit market, but it legalized medical cannabis use in 2018. In June 2022, the country decriminalized cannabis, prompting a flood of entrants into the industry through cultivation, manufacturing and retail. However, after an August election, Thailand’s Prime Minister Srettha Thavisin has discussed plans to keep the country’s cannabis market as medical only.
“The government has decided they wanted to dial it back a little bit and become more of a medical market,” Clarke said. “It remains to be seen how the tourists will play into that, but we shall see as the regulations come out. We are going to be focusing on and developing medical products for various conditions.”
Sunderstorm has partnered with THCG Group Ltd., which holds exportation licenses. THCG assisted Sunderstorm in securing a manufacturing location and is overseeing facility construction, which is set to conclude in January. THCG will also help with sales, as well as maintain the facility and compliance. Sunderstorm will handle manufacturing and brand building and will assist with sales.
“(THCG) feels like we can provide the expertise and the support to be able to grow the business together,” Clarke said. “It’s really a joint venture relationship here.”
Clarke emphasized the importance of Sunderstorm manufacturing KANHA products itself, no matter if the gummies are available in the U.S. or elsewhere.
“We feel like our brand is the most important thing for us, and in order to protect the brand, we feel like we need to do all of the manufacturing ourselves,” he said. “We want a consumer that eats one of our gummies in Los Angeles and then six months later eats another one in Massachusetts then has the same experience. If they come to Thailand for vacation, they can buy our products here and have the same exact experience and get the exact same product.”
Clarke noted Sunderstorm will initially introduce four SKUs, including two of its fast-acting NANO gummies. Aligning with its wellness positioning, the company will also bring its Harmony 2:1 CBG gummies and its 1:1:1 Tranquility CBN gummies.
Sunderstorm expects products to become available in Thailand in January, and there are plans to launch four to five more SKUs there over the coming year. Meanwhile, Clarke said Sunderstorm will continue to innovate around the wellness space.
“We do see there is a good opportunity here to focus on the medicinal aspects of cannabis, which has been a little bit difficult in the regulated recreational markets in the United States,” Clarke said. “I think the regulated industry in some ways hampers innovation a bit, and we want to drive back toward that. We can conduct some research here in Thailand with the universities to make products that are really well suited for various conditions.”
Clarke added Sunderstorm has been exploring options for supplying medical cannabis markets in Europe.
“There's a great opportunity from Thailand because it’s one of the five tiger (cub economies) in Asia,” he said. “They have a massive export industry. They have a big pharmaceutical industry. They understand the export market. They have a low cost of labor, so we can produce products here very cost effectively to supply the world.”
This article was originally posted on www.cannabisproductsinsider.com.