As one of the early cannabis companies to arise in Arizona’s medical market, Halo Infusions now has the opportunity to help bring new or out-of-state edibles brands into the state’s closed-off recreational space, where acquiring a new license is next to impossible.
In 2023, Halo built out the largest commercial cannabis kitchen in Arizona, giving the company the ability to not only produce its own edibles, but also offer private labeling and manufacturing services to other brands. Because Arizona rules cap the number of licenses at 170, including social equity licenses, there are more companies interested in the state than there are licenses available.
“We decided that a great business model is for us to help those companies that are trying to accomplish what we did 10 years ago: penetrate the market and build a stable business with scalability, using our storage and the distribution system we’ve established,” Halo Infusions CEO Murray Stein says. “We believe that if we allow them to focus on their sales and marketing, and we do all the heavy lifting, that will create a more vibrant environment for the consumer and the retailer here in Arizona.”
Halo has now been operating for more than a decade, giving it a wealth of knowledge about how to make cannabis products, implementing the best practices of other industries such as candy and chocolate manufacturing, as well as the challenges of scaling a business rapidly in a highly regulated, emerging industry.
Murray sees the market as dynamic and one that is still subject to the whims of consumers.
“There is brand recognition, but there really isn’t yet true brand loyalty,” he says. “So that’s the opportunity for smaller and bigger players, at least in the Arizona market, to get penetration.”