Weed Gummies At The Press Of A Button!

As weed-purchasing emerges from the shadows of the black market, the way people consume marijuana is changing too.

Weed gummies have become increasingly popular, as they hold a few advantages:

Google search trends over the past five years show a clear rise in the interest of weed gummies.

SEMRush also shows that 63,000+ searches are requested each month for variations of ‘weed gummies’.

You can see on the far right of the below image that the Keyword Difficulty (KD%) is actually quite low which indicates that the space is not that competitive either.

The rise in weed gummies is trend #1. Before I get into trend #2, I’ll announce today’s startup.

Beuhi (pronounced Bowie) is a smart countertop appliance that will create gummies, chocolates, and hard candies infused with whatever the user chooses.

While cannabis is an obvious option, Beuhi users can choose to infuse with nutraceuticals, CBD, sports supplements, and more.

The second trend that I’ve noticed is off-gridding.

Consumers are continually moving ‘off-grid’ by making products and doing activities in their home, as opposed to a store or community center. Here’s some examples that have already happened:

Go to the gym to exercise → Peloton/Mirror/etc now allow people to exercise at home

Go into an office to work → Brought laptop into the home to work from home

…and an example of another bet I’m making:

Buy bottled water at the store -> harvest water from the air in your home

I believe that weed is no exception to this trend, and that some consumers will want to produce their own cannabis products.

Now I’ve seen various products that help consumers grow marijuana plants in their home. The problem is that growing these plants is expensive, time-consuming, and takes up a lot of space.

Consumers can make gummies on the stovetop, however the process requires very precise heating and timing.

Beuhi provides a much easier solution - and it only takes up a small countertop space to do so.

The process is so simple that just about anyone could use the Beuhi appliance.

Users add their desired flavor to the tray and have the option to add an infusing ingredient.

Using the app, they begin the process, which takes roughly an hour.

Taking the tray, they then use the grid cutter to cut the final product into the desired number of candies/gummies.

An important consideration is that Beuhi is not just for making weed gummies.

The device can make non-infused gummies, hard candies, and chocolates. The market for these is massive in itself, and Beuhi has garnered serious interest from nursing homes, hospitality, and retail locations.

It really expands who can use the product and gets it into the hands of visible locations.

It also helps that there’s a social element to Beuhi, at least for those who have it in their home. Aside from being visible on the countertop, I can envision people hosting their friends and making gummies during the hangout.

This rapidly gets the product to organically spread and raise product awareness.

As with all startups, there are challenges that investors should consider.

Beuhi surveyed 200+ cannabis edible users, and found that 93% were likely/very likely to buy the product.

This is encouraging, but the % of people that will actually buy the product is unknown.

Beuhi is not yet available for purchase, but it expects to sell its model for $499 (actual price to be determined).

When adding in the cost of ingredients, in most cases it’s actually cheaper to buy your gummies from the store.

This will negatively impact demand - but something that is comforting is knowing that some people spend hours and way more money growing vegetables than buying them from the store.

There’s a portion of the population that distrust where store-bought products come from and are made of.

This is actually the 3rd and final consumer trend that Beuhi is taking advantage of - distrust in the food supply is causing consumers to make their own products.

Beuhi will not be available for this year’s holiday shopping period.

This is a tough one. I spoke with the co-founder David last week, and he believes that they’ll be able to take pre-orders during the holiday season, but won’t be able to deliver until Q1.

This item could have been a great gifting option, especially with its high price point, so it’s a miss that it will largely miss out on the holiday.

I apologize in advance to David for this one, but I really hate the name ‘Beuhi’.

As a rule of thumb - if you can’t easily pronounce the word just by looking at it, it shouldn’t be the name of your company.

Beuhi has a full gust of wind cloud of weed smoke blowing at their sails as they ride the wave of 3 consumer trends.

I think they’ll have solid margins on the product, which will then dovetail into recurring subscription revenue (consumers need to pay for the ingredients). They have a wide application use which supports a large market potential.

And while Beuhi gets to participate in the burgeoning marijuana market, it’s not subject to the strict regulations. As an appliance with many uses, Beuhi is able to sidestep regulations and sell their product with minimal restrictions.

Their current valuation stands at $15M (early bird at $13.5M), which is a bit steep for a pre-revenue company. I think I’d be all-in if this were priced in the $9-12M range, but I still think there’s value there.

Ultimately I ended up investing and adding this one to my portfolio!

I don’t have enough of an ownership stake to change the name, but maybe if we all band together….

This is not sponsored, but if you’d like to check out Beuhi’s investment opportunity, I’ll link it below! (There’s only $9,235 left in Early Bird pricing before the valuation gets hiked)

That’s the forecasted growth rate of the smart shades between 2023-2033. And RYSE’s automated window shade tech is positioned to dominate the market. They’ve generated over 20X growth in share price for early shareholders, with significant upside remaining as they launch in over 100 Best Buy stores. Invest in the rapidly growing smart shades market →