Tyson 2.0 CEO talks cannabis products, challenges, opportunities, and more In this edition of "Rising High," The Fly conducted an exclusive interview with Adam Wilks, chief executive officer of Tyson 2.0, a company focused on high-quality cannabis products available at multiple price points. Here are some highlights:
AUTHENTICITY: Tyson 2.0 is a California-based cannabis company formed with legendary boxer, entrepreneur and icon Mike Tyson aimed at producing innovative cannabis products known for purity, precision and accessibility. The company offers a balance of premium and affordable, full-spectrum cannabis flower, concentrates and consumables at retailers nationwide. “Our focus is to get Tyson 2.0 products in the hands of all Americans seeking plant-based medicine and any customers that want to be part of the Tyson tribe,” Wilks said. “This includes a number of consumers looking for aid with anxiety, relaxation, pain relief and mental health. We hope to support all in need of high-quality cannabis products.” When asked about the company’s key differentiator, he pointed to Tyson’s authenticity and his long-time advocacy for the cannabis plant. “Mike uses cannabis in his own life and has been vocal about how its impacted him,” the CEO said. “It plays a huge role for us to be the most authentic celebrity-backed brand in the market.” Many companies in the space look to tie their brand to a celebrity, he said, but don’t achieve the same organic authenticity where the celebrity is actually using the product. “Everything that we come out with is designed for Mike’s fanbase, all high-quality products at multiple price points,” Wilks said. “Each product we launch will be Tyson-approved and Mike’s actually involved in the R&D process from start to finish. He’ll come through and we’ll choose specific strains, terpene flavors and profiles that Mike uses himself and prefers to smoke over others.” He added that the company’s strong leadership team and relationships with multi-state operators also position Tyson 2.0 for growth.
COLUMBIA CARE PARTNERSHIP: Along with the company’s launch, Tyson 2.0 announced that Columbia Care (CCHWF), a cultivator, manufacturer, and distributor of cannabis in the U.S., will be the brand's national cultivation and manufacturing partner in markets where the company operates. Columbia Care, which covers seventeen states and has over 100 dispensaries, will also sell Tyson products throughout its network as well as wholesale to other retailers. “Columbia Care is one of the best partners we could ask for,” the CEO said, noting the MSO’s impressive track record. “They’re one of the best when it comes to manufacturing, cultivation and distribution as well as their extensive retail dispensary platform.” Tyson 2.0 saw a huge opportunity in Columbia Care’s network of over 100 dispensaries, he said. “To open your doors and have access to that many stores on day one is fantastic,” Wilks said. “We wanted to find someone that was set up vertically in all of their states with a large and diverse dispensary platform.”
BOARD APPOINTMENTS: In November, Tyson 2.0 announced the composition of its Board of Directors which includes cannabis industry executives as well as financial leaders. Chad Bronstein, CEO and founder of compliance solutions company Fyllo, will serve as board chairman and Wilks will serve as vice chair. The board also includes Nicole Cosby, chief data and compliance officer at Fyllo, Adam Arviv, co-founder of Bragg Gaming (BRAG), John Shahidi, president of Full Send by Nelk Boys, Sammy Dorf, president and chief growth officer of Verano (VRNOF), and Andrew DeFrancesco, chairman and CEO of SOL Global (SOLCF). “All of our board member appointments are strategic,” Wilks said. “Each member is involved in the space in one way or another and I’ve never seen a board as strategic and cannabis-involved as we have put together here. We also have other MSO executives, marketing execs, legal execs and entertainment execs, so we have a very diverse and impressive team for our board of leadership.”
SEED ROUND: Tyson 2.0 also announced it had recently completed a seed round led by Sol Global, K2, Ambria, and Arcadian Capital. Funds will be used to solidify cultivation agreements, develop proprietary strains, and build a national sales team to bring Tyson 2.0 to legal markets. “The capital that we brought in will be mainly focused on product development, developing new SKUs and R&D,” the CEO said. “We’ll be bringing Mike in on that process and then scaling the operations and expanding our distribution channels. We’re asset-light and heavy on the licensing side so we have a great game plan in place.”
EXPANSION PLANS: When asked about Tyson 2.0’s launch plans, Wilks said the company will roll out in Colorado as its first state, followed by Nevada and California. “That will all be this year and next year we will be rolling out in other states throughout the year,” he said. “We do have plans to roll out in Canada and ideally in the future as Washington loosens up, we’ll open up internationally and be able to bring Tyson 2.0 to customers all around the world.” The CEO said Colorado is a good jumping off point at it is one of Columbia Care’s largest markets. “We figured let’s make a big splash when we open the doors,” he said. “They have over 20 stores, more than 20% of their dispensaries are in Colorado, so to be able to launch in those 20 stores with the recreational market, coupled with Tyson’s huge following there, we feel it’s a very strong market to launch in. That will be paired up with and followed by Nevada and California, and together, we feel all three are very strong markets to launch a brand in.”
CORONAVIRUS: Coronavirus has impacted many companies in the cannabis industry globally and the CEO said he believes the plant helped many consumers get through the pandemic amid rises in depression and anxiety. “There’s a huge need with mental health, anxiety, stress and pain and cannabis is to me a miracle drug,” he said. “It helped me get through Corona and it has helped tons of people.” Wilks noted business for the cannabis space boomed during coronavirus creating a big opportunity for the industry. “The negative side of it is the issues we’re having with shipments and containers coming from China,” he said. “Packaging and paper supplies and so on, that’s the only issue we’ve been having. Let’s hope that gets cleaned up and organized.” As consumers get vaccinated and more markets open up, the CEO said he expects cannabis sales to thrive and slowly shift back to brick-and-mortar from e-commerce. “In this industry due to the lack of education behind it, they’ll always be the need and want to step into a dispensary to purchase your cannabis,” he said. “Delivery is the way of the future and it will continue to grow. We hope to offer a direct-to-consumer option for Tyson 2.0 in the future, but brick-and-mortar will always be there.”
LEGALIZATION: When asked about the potential impact of the Biden-Harris administration on the U.S. cannabis space, the CEO said he believes the U.S. is taking steps closer to federal legalization. “It’s moving in the right direction on the cannabis banking legislation and on decriminalizing cannabis as a whole,” he said. “Overall, we’re adding cannabis-related tax revenue for the country, so I think it’s all positive.” Wilks said Tyson 2.0 will continue to play its part in working with Washington to keep progress moving. “Everything in this administration has been helping and heading in the right direction,” he said.
DERIVATIVES: As technology advances and delivery systems for cannabinoids become more diverse, Wilks said he expects consumer interest to shift to more discrete offerings over time. “Flowers and pre-rolls have always been the number one-selling products in the store, but as we progress and as this industry evolves, people are leaning more towards discrete items like concentrates, edibles and consumable products,” he said. “You can eat a gummy or have a shot of a cannabis beverage opposed to smoking a joint where you’re going to smell and be a little more exposed.” The CEO said he expects that category to grow and gain traction as more beginner smokers enter the space. “To come in and smoke a joint, that might be a little strong for them,” he said. “They may want to start with a microdosed edible, a 2mg or 5mg edible, before they jump into some of the stronger stuff. Edibles and concentrates will continue to rise in popularity and we’re going to see increased consumer counts across the country as more states come on line and access is more readily available for customers.”
CHALLENGES: When asked about the largest hurdles facing the cannabis industry, the CEO pointed to the issues with banking surrounding the space. “Being federally illegal is still a huge problem,” he said. “The whole separation between states and the feds, that’s one of the biggest problems. Let’s all get together, let’s be one and figure this out as a team and move beyond that.” Once the industry works out the regulations, a whole slew of opportunities will open up, Wilks said. “Just the opportunity for expansion, for growth and for the American tax dollar you can bring in, hopefully this all moves forward. Sooner rather than later,” he said.
OPPORTUNITIES: As the cannabis sector develops, Wilks said Tyson 2.0 sees the opportunities in federal legalization for banking regulation and an opening of overseas markets. “Being able to expand outside of the country and Canada, I think that’s a huge opportunity,” he said. “For us at Tyson, we’re just super excited about this rollout. I can’t wait to cover this country with Tyson 2.0, get Mike out on tour and take him all over the place. It’s the real deal.”
OTHER CANNABIS/PSYCHEDELIC STOCKS: Other publicly-traded companies in the space include Acreage (ACRHF), Akerna (KERN), Aleafia (ALEAF), Atai Life Sciences (ATAI), Awakn Life Sciences (AWKNF), Ayr Wellness (AYRWF), Audacious (AUSAF), Aurora Cannabis (ACB), BC Craft (CRFTF), Body and Mind (BMMJ), CanaFarma (CNFHF), Canopy Growth (CGC), RIV Capital (CNPOF), Clever Leaves (CLVR), Columbia Care (CCHWF), Compass Pathways (CMPS), CordovaCann (LVRLF), Cresco Labs (CRLBF), Cronos (CRON), CV Sciences (CVSI), Curaleaf (CURLF), CURE Pharmaceutical (CURR), Delic Holdings (DELCF), Delta 9 (DLTNF), Emerald Health (EMHTF), Fire & Flower (FFLWF), Flora Growth (FLGC), FluroTech (FLURF), Gage Growth (GAEGF), General Cannabis (CANN), Goodness Growth (GDNSF), Greenlane (GNLN), Green Thumb (GTBIF), GrowGeneration (GRWG), Harborside (HBORF), Hemp (HEMP), HEXO (HEXO), High Tide (HITI), IM Cannabis (IMCC), India Globalization Capital (IGC), Indiva (NDVAF), Inner Spirit (INSHF), Innovative Industrial Properties (IIPR), InterCure (INCR), Khiron Life Sciences (KHRNF), Lowell Farms (LOWLF), Lotus Ventures (LTTSF), MediPharm Labs (MEDIF), MedMen Enterprises (MMNFF), MJardin Group (MJARF), Neptune Wellness (NEPT), Thermic Science (ENDO), Organigram (OGI), Planet 13 (PLNHF), Relmada Therapeutics (RLMD), RYAH Group (RYAHF), Skye Bioscience (SKYE), SLANG Worldwide (SLGWF), Sproutly (SRUTF), Stem Holdings (STMH), Sundial Growers (SNDL), Sunniva (SNNVF), TerrAscend (TRSSF), Tetra Bio-Pharma (TBPMF), Tilray (TLRY), Trulieve (TCNNF), Valens (VLNCF), Village Farms (VFF), WeedMD (WDDMF), Zynerba (ZYNE) and 4Front Ventures (FFNTF).
