The advent of two platforms: social media and online shopping, revolutionized how business is carried out; changing the traditional brick and mortar system.First, social media came to provide companies with a whole new method of targeted marketing based on full information provided by the user. Online shopping, on the other hand, came to provide companies with the ability to scale their operations especially geographical. It enabled institutions to reach customers who they would never have reached before in regions where their presence wasn’t previously felt. Therefore, the ability of a company to access the online marketplace allowed(s) them to grow significantly (in a deal which was further sweetened by the fact that some of these online marketplaces can now also carry out targeted marketing for the clients given their robust systems and client information).It should, therefore, come as no surprise that the latest company to adopt this new technology – Baristas Coffee Company Inc (OTCMKTS:BCCI) – has been enjoying the bull run of a lifetime.Since the beginning of February, the firm has continued to enjoy a bull run. Its price back in January was about $.0055 per share (a major low for the company). However, this position has since reversed as the share price first spiked to hit $.128 per share but eventually close at its current price of $.05. Nevertheless, at its current price, investors in BCCI are still enjoying a 10X price multiple from the previous price.Readers can review the above-mentioned price action and the accompanying increased share turnover in the chart below: BCCI Daily ChartThis spike can be attributed to a number of things, however, two of them are particularly important. First, the aggressive marketing campaign which has been adopted by the firm and second, the firm’s sales platform-launch on the world’s most valuable retailer.
Background to BCCI
Before going deeper into the intricacies, let us have a look at the firm’s history.Barista Coffee Company Inc was founded back in 1996 and its headquarters situated in Kent, Washington. Back then, it was known as Innovative Communications Inc, a name which they later changed to the current one in May 2010.The company does business as a specialty drive-through beverage retailer within the United States, offering hot and cold beverages (specialty, custom drinks or blended) as well as other pastries and confections. Presently, the firm has also ventured into the CBD space by selling CBD-infused drinks. This was achieved by the launch of some Hemp coffee which BCCI is aggressively marketing to the Spanish speaking communities across the United States.
Recent Developments
The current regime has made one specific set of regulations which has impacted the operations of cannabis companies across the United States: The Hemp Farm Bill. Through it, hemp was made legal within the United States and this allowed for hemp companies to finally access the US market and promote their products.BCCI took advantage of this new legislation and pushed their new product – CBD-infused coffee – to the market through one of the largest platforms in the country, the result of which has been the aforementioned share price surge.
Aggressive Marketing Campaigns
The Superbowl is one of the largest and most followed events in the United States. According to research by Nielsen, the event attracts over 273 million people, 100 million of whom watch it on Live television with the remaining 170 million streaming it on social media platforms. By attracting such an audience, the event allows for advertisers to capitalize and sell their products on one of the largest platforms to nearly the entire United States mass market. Moreover, due to a large number of companies seeking to market their products, a lot of screening is done to ensure that the ads are fit for the general population.This principal had previously been used to knock CBD companies out of advertising on this platform, until now.BCCI was the first CBD based institution to have their advertisement made at the Superbowl. The company used this opportunity to bring to market its EnrichaRoast CBD coffee. The ad spoke to EnrichaRoast bringing out a connection between the customer and Maroon 5 who were due to make the half-time performance. Through this historic event, the firm was able to access the broader United States market.Management hopes that this will be the start of a new trend whereby CBD companies can market their products to the mass market as this will spark interest and consequently see the firm grow going forward. Presently, the firm has also been featured in the NFL Monday Night and Thursday Night Football.
Baristas and Amazon
Baristas’ product, EnrichaRoast Hemp Coffee, has now been approved for sale by Amazon.Through this, the coffee will now be available for delivery across the United States. Courtesy of the firm’s advertisements, this will allow them to access the larger Spanish-speaking community which sums up to over 40 million residents in the United States and over 527 million worldwide. As stated by the firm’s CEO, Barry Henthorn:
“…Baristas is committed to making its products accessible to as many people as possible. By marketing directly to the Spanish speaking populations in the US and beyond we will be able to reach a much broader market."
Source:Eventually, Amazon is expected to, not only introduce Baristas to the online space but also assist the firm in further marketing the product directly to the target market. Eventually, with BCCI targeting both scalability and revenue growth, Amazon will provide the platform on which they can achieve both of the above both within and outside the United States.
Conclusion
The Hemp Farm Bill has played a major role in ensuring BCCI gets to where it currently is. By availing its products on Amazon as well as marketing them thru Superbowl commercials, the firm has merely begun the race towards cannabis dominance; only this time, they have a head start. It will be interesting to see how they play their cards going forward. As things currently stand, we are quite bullish about Baristas Coffee Company.We will be updating our subscribers as soon as we know more. For the latest updates on BCCI, sign up below!Disclosure: We have no position in BCCI and have not been compensated for this article.
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