Company Name: Kiva Confections

Year Founded: 2010

Ownership Structure: California-based LLC, not-for-profit collective

Founders: Scott Palmer, CEO and Kristi Knoblich, COO

Headquarters: East San Francisco Bay, CA

Industry Segment/Category: Processor

Current Markets/States Served: California

Current Number of employees: 40 plus

2014 Revenues: Not Available

Distribution: 700+ medical dispensaries in California and has licensed monarch in Scottsdale to roll their product line out in Arizona in 2015

Current Retail Product Mix

• Kiva Chocolate Bars
• Kiva Minis;
• Kiva Terra Bites.

Expansion Plans: Licensing and or ownership positions in CA, AZ, CO, NV, OR, WA

Financing strategy: To date from operations and family seed capital

If it Doesn’t Make you Dance….

Scott Palmer and Kristi Knoblich have been partners for the last 10 years and are ready to formally tie-the knot with a European-based wedding in the not too distant future. But the Co-Founders of Kiva Confections based in the East San Francisco Bay area of California have had a baby together in the form of Kiva Confections, which they conceptualized in 2009 and formally launched on the back of a $36k loan from Scott’s dad in 2010.

Their first foray into the marijuana business started with supplying clones to growers in the Bay Area. They researched beginning their own dispensary but didn’t feel that they had adequate capital to make a go of it and instead opted for entering into a space that was woefully under served at that time. Product inconsistency, lack of quality standards, and a commitment to developing a brand in the nascent edibles and infused category led them to launching their own company because they felt that chocolate products had a great upside.

Their original concept was simple enough — make a commitment to create friendly, trusted, lab-tested chocolates (they rely on CW Analytical to handle their testing) to distinguish their product from what they felt were lots of scary products on the market. Their goal: recipes and tastes of real chocolate, with formulas that left little if any trace of pot in the taste or smell, and a brand represented by great packaging and graphic design (Scott was a commercial photographer at the time). And early on, at Kristi’s urging, they agreed that if they came up with a new product it had to pass the taste test of, “If it doesn’t make you dance, it’s not KIVA.” Their approach has worked so well that Kiva now distributes products through over 700 dispensaries in California, has over 40 employees, and generates in excess of $10 million in annual revenues. It is one of the most recognized medical cannabis companies in the state.

Kiva manufactures its products in its own production  and distribution facility, and after originally creating their own extractions early on, they now outsource the oil production

As CEO, Scott heads up research and development, while COO Kristi handles operations in California. They are currently in the process of expanding into Arizona, a similar not for profit medical marijuana state like California, through a licensing agreement with Monarch Wellness Center in Scottsdale. They are testing their first production run to meet the same quality commitment they originally committed to, and all products will carry the KIVA packaging and quality, and Monarch will infuse their oils. The product will initially soft launch at Monarch’s Dispensary in Scottsdale, followed by a full state roll-out in Q2 2015.

Plans call to form a licensing agreement in Nevada, Washington, and Oregon and they are considering (and preferably wanting) an ownership stake in Colorado, a market they feel they must be in. They are not tied to one expansion approach or the other, although a blended approach of licensees and ownership may be in the cards. And of course, California holds tremendous potential for additional growth in light of positive movements towards, state-regulated medical and recreational operations.

Kiva has won many awards at statewide competitions to date for their product and expect that the acceptance in Arizona and other expansion markets will continue to drive revenues upwards as distribution expands. Kristi returns next week from Europe, hopefully with a destination selected for their wedding next year. It promises to be a great time for the life partners since they are definitely already dancing by owning the successful Kiva Confections Company!