It took CBE quite a while to discover that there was at least one other Colorado edibles Producer/Processor bent on worldwide domination.
The only difference is that the two guys running it aren’t industry spokesman, but instead, are just two hard-working Joes that get up every day, put their pants on, and go to work.
Maybe that is an overly simplistic view of what Rick Scarpello and Bob Eschino of incredibles actually do, but they are truly roll-up-your-sleeves and get-the-job-done kind of guys who have built a $10 million (plus) revenue company since Medically Correct was founded six years ago.
I finally caught up with Bob before Christmas and here’s what I learned: He tells me that the two of them knew one another before starting Medically Correct.
Bob owned a packaging business and Rick ran Udi’s bakery, one of the largest professional bakeries in Colorado that made over 20,000 muffins a day. Their vendor customer relationship was a good one and they often teased one another about starting a business one day. Little did they expect it would be in the Cannabis Industry.
Their first foray into the edibles business occurred as a result of Bob’s brother treating their 90-year-old grandmother with edibles to ease her arthritis, pain, and loss of appetite. Bob and Rick saw an opportunity. At the time, edibles lacked consistency and standardization, and were packaged ready for the local church bake sale, and their two areas of discipline matched up well.
By 2010, after Colorado Bill 1284 passed allowing for medical marijuana, the two decided they needed a standalone kitchen. So, they joined forces and applied for a license. The start-up costs required capital, so they explored the idea of getting a bank loan and quickly discovered a solid brick wall standing in their way.
As they looked for a space to set up a kitchen, nobody would rent to them. They finally found a vacant drying room between two local grows and were able to rent the space at a premium. After a year of impediments (and while they were still working their day jobs), the partners finally opened their first kitchen.
Finally – sales and success
After 14 months from their start, they finally began generating sales.
Medically Corrects’ first products were of the baked variety that used butter to infuse THC. They realized perishability was an issue and were fortunate to have their friend and now partner, Derek Cummings, come up with a solution. Together they developed recipes that allowed them to attain the consistency in dosing and taste that they were looking for in their handcrafted infused edibles.
In 2013, they saw revenues explode by 1000 percent, double in 2014 and then again in 2015, finishing the year with over $10 million in sales.
As the business grew (Bob attributes this to sticking to the original plan to provide a consistent, lab tested, standardized product that was professionally packaged), so have their costs of running their business.
Trim to make the oil that they infused has jumped from $25/lb. to over $500/lb. They do have a 3,000 sf grow, but it only supplies about 10 percent of the raw material that they need to serve their distribution requirements which include over 95 percent of the retailers in Colorado.
They have constructed an 8,000 sf facility in Denver, all self-funded, that currently houses their grow, lab, manufacturing and administrative offices that they moved into in 2014 — only to find they had outgrown it before even occupying the space. Bob estimates that they need at least a 40,000-50,000 sf grow to be 100 percent vertically integrated.
Medically Correct now consists of three (3) entities:
- incredibles Infused edibles: A full line of infused chocolates, Gum e’s, pills;
- incredibles Extracts: a full line of concentrates, including shatter, oils, and vape pens;
- incredibles Extractors: BHO extraction devices.
They are in the process of licensing their intellectual property, ingredients and packaging in Las Vegas (licensing agreement are in place), Arizona, California, Oregon, Massachusetts, Michigan and Jamaica.
Their preference is taking on partners where they have an equity stake. They have also started a consulting practice to share their expertise in the Cannabis Industry.
My experience with Bob and Rick is that with Medically Correct, you get a company of knowledgeable industry pros that are straight shooting, hard-working folks, so don’t ever expect politically correct feedback from them.
As a result, don’t be surprised if they reach their stated goal of being the largest edibles company in the USA, Medically Corrects rapid rise has truly been incredible!
Company Name: Medically Correct LLC/incredibles
Year Founded: 2010
Ownership structure/operating entities: LLC
Management Team: Bob Eschino, President; Rick Scarpello, CEO; Derek Cummings, Director; and Josh Fink, Executive Chef.
Headquarters: Denver, Colorado
Industry Segment/Category: Producer, Processor
Current Markets/States Served: Colorado; Las Vegas, Nevada
Current Number of employees: 55
Market Strategy/Goal: Plan on being the largest edibles company in the USA
2014 Revenues: $5 million
2015 Projected Year-end Revenues: $10 plus million
Product Mix: Chocolate, Gum e’s, Shatter, e-Vape
Expansion Plans: Licensing deal in Vegas is done, working on Arizona, California, Oregon, Massachusetts, Michigan, and Jamaica
Financing strategy: Self-funded