Driven By Stem Expands Distribution Footprint In NorCal
Driven By Stem (CSE: STEM) is further expanding its operations in California, this time with a focus on the northern region of the state. The company has received another license to further its delivery as a service offerings in the state.
The license is specifically for a non-storefront distribution hub, which the company will utilize to improve its delivery offerings to the residents of Northern California. Located in Mendota, which sits in the county of Fresno, the company will be able to better serve what it deems as being four key counties, which collectively have 2.3 million residents.
The new hub is expected to be operational next month, with the new hub expected to result in $1.0 million in operational savings while also driving topline sales. Taxes are also reportedly lower in this region compared to its current Oakland facility, further reducing operating expenses.
“The new Fresno distribution hub for non-storefront retail sales is the first of several planned initiatives to enhance revenue and reduce SG&A while improving service and variety for our valued Budee customers. In addition to the newly added distribution hub, our three existing distribution hubs, as well as a medical cannabis dispensary, provide widespread delivery service to the significant population throughout California,” commented Adam Berk, CEO of Driven By Stem.
The Northern region of the state is expected to be a growth market for Stem’s DaaS model, with the city of Fresno alone anticipating up to 21 retail dispensaries opening up in the city by the end of the year.
The announcement follows the company acquiring two dispensaries as well as an extractor in Oregon just last week.
Driven By Stem last traded at $0.32 on the CSE.
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