California has always been on the leading edge of the explosive legalized cannabis market in the United States. Actually, the State of California is a world leader in the cannabis movement, and the sales have been stunning – especially in the edibles niche, which millennials and other demographics have been consuming in large quantities in 2018.

Let’s look at the facts: the best brands are likely to emerge from California because it is simply the largest legalized cannabis market in the world. In fact, California is expected to grow to $5 billion in 2019 legal sales; we can compare this to the entire nation of Canada, which is only expected to have $2.7 billion in 2019 legal sales:

Courtesy of Plus Products Investor Presentation

With California being the most competitive legalized cannabis market in the world, and edibles being the best market to be involved in right now, my research team continues to be super bullish and prepared to take a position in this exciting industry. And we’ve got the numbers on our side: a report from Technavio indicated that the global cannabis-infused edible products market is expected to grow at a CAGR (compound annual growth rate) of over 25% between 2018 and 2022.

That’s an astounding growth rate that we just haven’t seen in any other market except for cannabis-infused edibles. How is this possible? A senior research analyst at Technavio explains it well: “The incorporation of new techniques in cannabis cultivation has resulted in the higher growth rate of the global legal cannabis market.” Moreover, “The use of these advanced techniques has led to improved quality of the marijuana-derived CBD-oil products, which augurs well for the growth of the market.”

Advanced techniques and technologies have made cannabis edibles a superior market in 2018 and beyond, and this niche is taking a greater share than ever of the larger cannabis market:

Courtesy of Plus Products Investor Presentation

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    Other niches within the legalized cannabis market, such as dried flower and concentrates, have struggled to compete with the rapidly expanding edibles industry. Furthermore, flower and concentrates producers have found it challenging to maintain their pricing structure, while edibles have continued to command the strongest long-term brand premiums:

    Courtesy of Plus Products Investor Presentation

    Now that you’re armed with the data on the fast-growing Californian legal cannabis edibles market, it’s the ideal time to pick a company and make a move: the time to invest is right now, while the market is red-hot. Our recommendation to capitalize on this unstoppable trend is Plus Products (CSE:PLUS), the undisputed leader in this particular market.

    We chose Plus Products because it is well-positioned to own the branded cannabis edibles market in California, the best place in the entire world to market edible cannabis products. Already one of the fastest-growing brands in California’s cannabis market, Plus Products boasts a top-5 edibles brand in California, with 2 of the top 10 selling edible products in the entire state.

    Courtesy of Plus Products Investor Presentation

    You can’t get any better than this: Plus Products has three catalog products with significant market share in California, and they’re continuing to launch limited-edition products that sell out quickly and consistently. While competitors are losing market share, Plus Products is gaining the edge with uncompromising quality standards, industry-leading food manufacturing processes, and many years of collective branding expertise.

    We fully expect Plus Products to grow bigger and more dominant in the industry, as we just learned that the company is anticipating a three-phase build-out to enable $450 million in production capacity within an astonishing 120,000 square feet of manufacturing facilities. The ability to expand to such massive proportions virtually guarantees Plus Products a superior positioning in California’s legalized cannabis edibles space.

    I can’t stress enough how much I’m looking forward to growing my portfolio with Plus Products and shares of PLUS. California, the nation, and the world are now ready for the edibles takeover – and for Plus Products.

    Best Regards,

    Daniel Ameduri

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      Legal Notice: This work is based on SEC filings, current events, interviews, corporate press releases and what we’ve learned as financial journalists. It may contain errors and you shouldn’t make any investment decision based solely on what you read here. It’s your money and your responsibility. The information herein is not intended to be personal legal or investment advice and may not be appropriate or applicable for all readers. If personal advice is needed, the services of a qualified legal, investment or tax professional should be sought.