THE NEXT PHASE OF THE CANNABIS INDUSTRY WILL BE ABOUT NEW SYNERGIES AND CONSOLIDATIONS.
Seeking continued business-to-business diversity, the management at Low Spark (yes, it was named after the song by the band Traffic) created a family of companies designed to work together and address evolving market needs.
Ty Duffy, CEO and founder of Low Spark, works in tandem with his wife, Amanda Duffy, who wholly owns and operates the separate, transportation-licensed company—LSC Colorado, Inc.—headquartered out of its own 6,500-square-foot office with approximately 40 employees in Denver.
The original brand includes a management and consulting focus specializing in business-to-business wholesale and brand management. The transportation-licensed company, LSC, is its own legal entity, separate from the rest of the companies in the Low Spark group.
Also included in the Low Spark suite of services is proprietary custom software for the cannabis industry called “Go Spark,” a robust transportation and logistics platform created to collect B2B data, improve customer service, and departmentalize employee work flow, Duffy says.
The diversification of the Low Spark family of companies is a result of aiming to serve different levels of the industry with multiple needs. “What we found is that each of the companies adds something unique that is complementary to the other companies,” Jeremy Sova, vice president of business development for Low Spark, says.
LSC launched in December, starting with simple deliveries by two company vehicles. There are now 14— the two original vehicles plus 12 new unmarked commercial ones—which makes LSC the largest fleet of commercial delivery vehicles in the legal cannabis industry in Colorado.
The company leadership began deliveries by first outsourcing to other courier services. That quickly changed. “What we discovered was that, by using our own fleet, we didn’t nickel-and-dime our customers with canceled routes or additional fees for items such as payment returns, compliant real-time product tracking, product storage, and customized reporting,” Amanda Duffy says.
As a result of adapting their business model to enhance customer service, they learned that they were able to help their end-customers (dispensaries) transition from thinking about delivery services as an inefficient, one-off focused exclusively on single deliveries, to an efficient consolidated delivery model where the products of multiple vendors are delivered on the same LSC truck. “That is really where we started to ramp up and take considerable market share,” Sova says. “The benefit to the end-buyer is that we make it easier on them by allowing consolidated delivery with professional drivers and professional vehicles under a very customer service-driven company. That is what separates us from the pack.”
Together, the Low Spark family of companies brings a wealth of knowledge to the cannabis industry, Ty Duffy says. “We are providing a level of maturity and professionalism to the industry which is greatly needed,” he says. “We hope to grow this concept nationally in emerging markets, to add our footprint with representation within all of the segments of the country, and eventually have a national distribution presence once federal and state laws permit.