As the Colorado marijuana legalization movement began, three guys from different backgrounds were paying attention.

Christian Johnson, Matthew Aiken and Anthony Sauro all started their careers in the fledging industry separately but a variety of events eventually brought them together.

As a result, they are now co-owners of the Sweet Leaf Marijuana chain and the Dynamic Growth consultancy and a growing force to be reckoned with in the Cannabis Industry.

CBE was fortunate enough to have Matt Aiken reach out to us after we missed including them on the 2016 CBE 100 Producers, Processors and Retailers list (if we had appropriately included them on the 2015 list they would have ranked No. 8!). And as they say, the rest is history.

In 2008, Christian, an engineer by education with a background in construction and infrastructure, was already a hobbyist and caregiver in the new Colorado Cannabis Industry. He contacted a new medical dispensary about growing product for them and started getting calls from others in the medical marijuana community.

Christian met his partner Matt Aiken, an accountant by degree and a marketer for Phillip Morris as well as the hospitality industry, who also dabbled in the caregiving and supplier space for Green Mountain Care Group. In 2009, after developing a streamlined production process, Christian and Matt secured a certificate of occupancy and built-out an 8,000 sf facility in Denver (not an easy task in those days!), one of the first licensed grows in the state.

When vertical integration was mandated by the state of Colorado in 2010, and encouraged by the shoddy management practices that they both had observed, the two moved into the PPR space with the acquisition of the Herbal Wellness Group, which they found for sale on Craigslist.

As others who entered the industry at the time have noted to CBE in past articles, the two were convinced that they could bring a new level of professionalism and best practices.

During this time, they met the third partner of the current ownership team, Anthony Sauro, who was an entrepreneur running his own grow shop and glass art gallery, and the three merged forces to form AJS (Aiken, Johnson & Sauro) Holdings in late 2011.

The original venture had two retail locations under their belt (Higher Grounds and Herbal Wellness) as well as the licensed grow in Denver, which they set out to expand while pursuing a new branding strategy that culminated in the purchase of the Sweet Leaf Marijuana operation as well. By the time Colorado recreational licensure was occurring, all three of their retail locations were consolidated under the Sweet Leaf Marijuana brand.

The three shared a vision of being a part of the new Colorado cannabis community with a mindset of:

• Improving grow efficiency and production;
• Completing and expanding state of the art facilities;
• Market-driven marketing; and, 
• Focusing on the customer experience.

With a stated goal of doubling revenues annually, they saw revenues grow from $5 million in 2013, to $12 million in 2014, and then up to $28 million by 2015. They are projecting revenues in excess of $55 million in 2016 across operations which include the vertically integrated Sweet Leaf Marijuana brand in Colorado (currently six retail locations) while expanding to 12 by the end of 2016, and a new Portland, Oregon operation that they launched last fall as a license holder. It also includes the revenues generated through their Dynamic Growth LLC consulting arm which assisted Nature’s Grace and Wellness in winning a cultivation license in Illinois this past year as well as building out a 20,000 square foot warehouse, helping this group be the first to market in the state.

The ownership team was quick to highlight the contributions of two members of the management team, Nichole West, VP of Sales; and Jason Ragan, VP of Operations.

 

The team is well on their way to achieving their goal of seeing the Sweet Leaf Marijuana brand expand nationally. They have also applied for and have been awarded two licenses in Massachusetts; have a license application in Maryland; and, are exploring partnership and licensing opportunities in California, Nevada, and Arizona.

When CBE asked them what their secret sauce to success consists of, Christian and Matt were united in stressing the “get-your-hands-dirty” philosophy that the ownership and all team members are expected to follow. The get-the-job-done attitude is enhanced by their system of accountability which starts with the onboarding process by offering a very competitive compensation package, including good pay, health, dental, vision and life insurance benefits and vacation policies.

They consider themselves to be a destination employer (a place where everyone wants to work!) and feel that their model is transferable as they expand into other states and markets.

With a highly motivated workforce that is accountable and exhibits a strong work ethic, we expect the number of destinations that the Sweet Leaf Marijuana brand has available to cannabis consumers will only grow in the years ahead. And CBE won’t miss them ever again!

Background Information

Company Name: Sweet Leaf Marijuana/Dynamic Growth LLC

Year Founded: 2011

Ownership structure/operating entity: AJS Holdings LLC

Ownership Team: Christian Johnson, CEO; Matthew Aiken, CFO; Anthony Sauro, COO

Management Team: Nichole West, VP of Sales; and, Jason Ragan, VP of Operations

Headquarters: Denver, Colorado

Website: www.sweetleafmarijuana.com

Industry Segment/Category: Producer, Processor, Retailer

Current Markets/States Served: Colorado; Oregon; Illinois; Massachusetts

Current Number of employees: 170 plus

Market Strategy/Goal: Have a Sweet Leaf Marijuana chain in every legal state, either directly owned or with great partners, and, be an industry leader

2014 Revenues: $12 Million

2015 Revenues: $28 Million

2016 Projected Revenues: $55 Million plus

Product/Revenue Mix: Flower, Concentrates, Lifestyle Brands

Expansion Plans: Plan to be in seven (7)  states by end of 2016 (Currently operating in Colorado, Oregon, and Illinois, and licensed in Massachusetts; with pending licenses in Maryland and Arizona, and developing relationships in California and Nevada relationships)

Financing strategy: Completely