At Sun State Hemp, our journey into the world of CBD started in 2012 with the birth of Atmos RX, our sister company, which specialized in vape technology.
Atmos had been in the Vape industry long before Sun State Hemp became the leading Delta 8 & CBD Company. Atmos was responsible for pioneering the portable vape industry, developing
Over 34US patents AND 17 trademarks in the field.
Ten years ago, we took a leap of faith to build a fully vertically integrated CBD business. The biggest decision of our careers came down to a simple question:
Should we be responsible for controlling our destiny?
As a company established a decade ago, first as a vape company and later as a CBD and hemp-derived edible product, we already had many of our development processes set in place. We chose to maintain a laser focus on our wholesale distribution market.
Through the years, we forged solid partnerships to help build a robust upstream production infrastructure.
The Challenges of Vertical Integration:
Still, a decision needed to be made: would we tackle the biggest challenge of our careers? Would we vertically integrate?
The question opened up many new worries for us:
- Did we have the strength and connections to thrive?
- Was integration even the best way to build our business?
- Would it veer the company off track?
- Was it even necessary? or were we better off continuing our ascent with our present business model as separate companies?
Time and time again we debated the pros and cons of vertical integration. It had already taken years, and a lot of hard work and faith, to become well-known brands in the CBD and Vaporizer business. We had focused greatly on the quality of our products and the quality of our service.
By serving our clients well, we had become sizable and profitable. Things seemed perfect: our customers loved our products, and we were already a solid wholesale, white-label, and private-label operation. This success seemed to suggest that our present business model was the right way forward.
The decision to shoot for the stars and integrate our operations was a major one. If the execution of it was done right, it would yield many benefits and help take our company to a level we wouldn’t be able to achieve otherwise.
-
Our sister company, Atmosrx, was known as the leading vape innovator. we boast 21 US patents. We are proud to have perfected the vape technology.
I am glad to report that yes – we made the jump, and embarked on this great adventure.
Despite knowing it would be hard work, we knew in our hearts that it made sense for us in so many ways. We would be strengthening our supply chain and reducing our production costs. Doing so meant we could streamline how we captured upstream and downstream profits, and we’d open ourselves up to new distribution channels. It would change everything to finally be under one roof!
For most companies, vertical integration means acquiring a separate company that is either ahead or behind them in the supply chain process. We decided that for Sun State Hemp and Atmos our focus would be on growing organically. By doing as we had done and taking the time to grow a business organically, it would help us better understand our product, our clients, and our service. The same hard work that got us this far would then pay dividends in the long run.
Vertical Integration: More Than Just About Getting a One-Up on a Rival
This decision was never about “competition” or for us to get a one-up on a rival. It was always with a goal to diversify our core business, expand into new markets, increase our overall sales, and improve our bottom line. In doing so, we’d be bringing together all the strengths of both brands.
Pulling off vertical integration involved putting together many critical pieces of the puzzle. Like every business, we were always looking for innovative ways to reduce costs without sacrificing the quality of the products and services we provided.
As the Original Vape Company, Atmos RX is proud to have manufactured and conceived the first Vapes in our lab, right here in Florida. to find out more, read our next blog for more on it.
At the core of it, Sun State Hemp is an innovative company. We have over 700 SKUs, a 60,000 sq. ft. manufacturing, warehousing, marketing, and sales facility, and an R&D department that’s always buzzing with new products and new ideas. We operate in a fast-moving and upcoming industry, and minimizing the time it takes to get a product to market has been a key component of our success.
Competitive Advantages Through Integration
- We always felt that our company could create a competitive advantage by integrating different stages of our production process and supply chain.
- The main difficulty for us was centered on manufacturing, as we already had materials, suppliers, and distribution pretty much figured out after ten years of pioneering the industry.
- The integration of the manufacturing process had become a key component of our future success. It was critical that we had a seamless process from seed to shelf.
- It’s worth noting that there are a few types of vertical integration. All types involve a merger with another company in at least one of the four relevant stages of the supply chain. The key difference depends on where the company falls in the order of the supply chain.
- From the start, we made sure to keep our company at the beginning of the supply chain. This would help us be in control of all the stages farther down the chain.
- By pulling this off, our company has been able to keep a competitive advantage over non-integrated competitors.
At Sun State Hemp, our journey into the world of CBD started in 2012 with the birth of Atmos RX, our sister company, which specialized in vape technology.
Atmos had been in the Vape industry long before Sun State Hemp became the leading Delta 8 & CBD Company. Atmos was responsible for pioneering the portable vape industry, developing,
Over 34 US patents AND 17 trademarks in the field.
Ten years ago, we took a leap of faith to build a fully vertically integrated CBD business. The biggest decision of our careers came down to a simple question:
Should we be responsible for controlling our destiny?
As a company established a decade ago, first as a vape company and later as a CBD and hemp-derived edible product, we already had many of our development processes set in place. We chose to maintain a laser focus on our wholesale distribution market.
Through the years, we forged solid partnerships to help build a robust upstream production infrastructure.
The Challenges of Vertical Integration:
Still, a decision needed to be made: would we tackle the biggest challenge of our careers? Would we vertically integrate?
The question opened up many new worries for us:
- Did we have the strength and connections to thrive?
- Was integration even the best way to build our business?
- Would it veer the company off track?
- Was it even necessary? or were we better off continuing our ascent with our present business model as separate companies?
Time and time again we debated the pros and cons of vertical integration. It had already taken years, and a lot of hard work and faith, to become well-known brands in the CBD and Vaporizer business. We had focused greatly on the quality of our products and the quality of our service.
By serving our clients well, we had become sizable and profitable. Things seemed perfect: our customers loved our products, and we were already a solid wholesale, white-label, and private-label operation. This success seemed to suggest that our present business model was the right way forward.
The decision to shoot for the stars and integrate our operations was a major one. If the execution of it was done right, it would yield many benefits and help take our company to a level we wouldn’t be able to achieve otherwise.
-
Our sister company, Atmosrx, was known as the leading vape innovator. we boast 21 US patents. We are proud to have perfected the vape technology.
I am glad to report that yes – we made the jump, and embarked on this great adventure.
Despite knowing it would be hard work, we knew in our hearts that it made sense for us in so many ways. We would be strengthening our supply chain and reducing our production costs. Doing so meant we could streamline how we captured upstream and downstream profits, and we’d open ourselves up to new distribution channels. It would change everything to finally be under one roof!
For most companies, vertical integration means acquiring a separate company that is either ahead or behind them in the supply chain process. We decided that for Sun State Hemp and Atmos our focus would be on growing organically. By doing as we had done and taking the time to grow a business organically, it would help us better understand our product, our clients, and our service. The same hard work that got us this far would then pay dividends in the long run.
Vertical Integration: More Than Just About Getting a One-Up on a Rival
This decision was never about “competition” or for us to get a one-up on a rival. It was always with a goal to diversify our core business, expand into new markets, increase our overall sales, and improve our bottom line. In doing so, we’d be bringing together all the strengths of both brands.
Pulling off vertical integration involved putting together many critical pieces of the puzzle. Like every business, we were always looking for innovative ways to reduce costs without sacrificing the quality of the products and services we provided.
As the Original Vape Company, Atmos RX is proud to have manufactured and conceived the first Vapes in our lab, right here in Florida. to find out more, read our next blog for more on it.
At the core of it, Sun State Hemp is an innovative company. We have over 700 SKUs, a 60,000 sq. ft. manufacturing, warehousing, marketing, and sales facility, and an R&D department that’s always buzzing with new products and new ideas. We operate in a fast-moving and upcoming industry, and minimizing the time it takes to get a product to market has been a key component of our success.
Competitive Advantages Through Integration
- We always felt that our company could create a competitive advantage by integrating different stages of our production process and supply chain.
- The main difficulty for us was centered on manufacturing, as we already had materials, suppliers, and distribution pretty much figured out after ten years of pioneering the industry.
- The integration of the manufacturing process had become a key component of our future success. It was critical that we had a seamless process from seed to shelf.
- It’s worth noting that there are a few types of vertical integration. All types involve a merger with another company in at least one of the four relevant stages of the supply chain. The key difference depends on where the company falls in the order of the supply chain.
- From the start, we made sure to keep our company at the beginning of the supply chain. This would help us be in control of all the stages farther down the chain.
- By pulling this off, our company has been able to keep a competitive advantage over non-integrated competitors.
Bright and Ultra Modern High Tech Laboratory Full of Advanced Technological Wonders, Computers, Analyzing Machines, Test Tubes, and Beakers.
ADVANTAGES:
- Our vertically integrated company can now avoid supply disruption. We all have experienced the supply chain struggles caused by the COVID-19 Pandemic. By controlling our own supply chain, we are best placed to deal with any problems that come up.
- Our company benefits by avoiding out-of-line suppliers with our strong market power. Oftentimes suppliers can dictate terms, pricing, and availability of materials. Our company can now circumvent suppliers such as these and are able to reduce costs and prevent production slowdowns caused by negotiations or other external aspects.
- Vertical Integration can give Sun State Hemp a better economy of scale. We set upon employing an improved scale to help cut costs while also ramping up production. By taking advantage of our size, we lower our per-unit cost by buying in bulk.
- By moving to a Vertically integrated company, Sun State Hemp is now in a position to eliminate overhead. By consolidating team positions, processes can be streamlined and duplicate work gets cut down. Employees can be placed in the best possible positions to make better use of their skills.
- We keep ourselves focused and informed about our competition. Retailers know what is selling well. We are now in a position to quickly react to market conditions and provide the most popular products with rapid turnaround. While our competitors remain slow, we work quickly to stay ahead.
- Lower pricing strategies now intend to be a tool we can use. With vertical integration, we can choose to transfer the cost savings onto our customers, saving them money and giving our brand a great reputation.
If you would like to visit the Sunstatemp.com showroom, we welcome you to our HQ. Our Main address is .