Sugarmade's
Budcars Sees
Dramatic
Jump in
Delivery
Demand as
Coronavirus
Impacts Cannabis
Consumer Patterns
NEW YORK, NY -- March 12, 2020 -- InvestorsHub NewsWire
-- Sugarmade,
Inc. (OTCQB:SGMD)
("Sugarmade", "SGMD", or the "Company"),
along with the BudCars
Cannabis
Delivery Service ("BudCars"),
announces
a sharp rise in demand for its cannabis delivery service, driving
an associated 10%
week-over-week rise
in total
sales,
over the past two weeks. The Company believes this dynamic is being
driven by the stay-at-home trend that has emerged in many
communities around the world in response to the global pandemic
outbreak of the COVID-19 disease.
The Company believes this shift in consumer behavior will continue
for the foreseeable future. As a result, BudCars
is
undertaking an expansion in
headcount
to meet the current
and anticipated sharp expansion
in demand. The
Company now anticipates the upward shift in sales growth to help
solidify its $15 million 2020 revenue target as a conservative
target for sales this year.
"The Coronavirus pandemic is
undeniably a game-changer
for consumer
behavior patterns that
will likely have long-term implications as it drives new habits
into place,"
commented Jimmy
Chan, CEO of Sugarmade, who
recently
announced a large
stake
in BudCars
with
an
option for a controlling
stake.
"As a
growing mobile ecommerce and delivery service in one of the fastest
growing commercial markets, BudCars
is
extremely well-positioned for this dynamic. It's already very
clear: people are showing an overwhelming preference toward
delivery as
nesting takes hold.
That applies to cannabis as much as anything else. We are fully
prepared for a continuous ramp in demand for our delivery services
over coming months and beyond."
Management notes that the COVID-19 outbreak has resulted in a
dramatic jump in demand for virtual
connectivity, online consumption, and home delivery of goods and
services around
the world over recent weeks, and most analysts now expect that
trend to continue. This has led to strong increases in demand for
companies like Amazon,
Postmates,
and
Instacart, as
well as many other courier and delivery services. This dynamic is
now impacting the California legal cannabis market.
Chan continued, "We aren't
just seeing a bump in the number of deliveries, but also
in
average order
size,
with many customers indicating they are stocking up on flower and
edibles in case they need to stay at home for an extended period.
We have
even
had a few customers indicate they are following the CDC's
recommendation to have at least a 30-day supply of medication on
hand."
Budcars is also
preparing for changes in the way cannabis products are delivered to
customers. Management is in the process of
implementing enhanced safety practices, including ensuring that all
drivers are well equipped and prepared to keep both company
personnel and customers safe. Sugarmade and Budcars recently
announced a significant expansion of cannabis delivery services
within the Sacramento metropolitan area, including the communities of Granite Bay,
Folsom, Arden Arcade, Carmichael, Citrus Heights, Orangevale, and
Roseville/Rocklin. Additional delivery footprint
growth is also underway, and further expansion announcements will
be forthcoming.
Chan
concluded, "Of course, we want the public to be safe
during this frightening period. But
we also want
interested consumers to know that we plan to continue to meet the
demand for delivery services in Sacramento, and to extend our reach and serve a growing
regional need."
Finally,
Sugarmade is proud
to announce that the Company is
finalizing a
multi-million-dollar deal involving cultivation and distribution
licenses that promises to
complete
its
vertical
integration, improving bottom-line performance and
helping to further drive exponential growth
in BudCars. Details will be made public
shortly.
About
Sugarmade, Inc.
Sugarmade, Inc. (OTCQB:
SGMD) is a product and branding marketing company investing in
operations and technologies with disruptive potential. Our Brand
portfolio includes CarryOutsupplies.com, SugarRush™
and Budcars.com. For more information please reference
www.Sugarmade.com.
FORWARD-LOOKING STATEMENTS: This release contains "forward-looking
statements" within the meaning of the safe harbor provisions of the
U.S. Private Securities Litigation Reform Act of 1995.
Forward-looking statements also may be included in other publicly
available documents issued by the Company and in oral statements
made by our officers and representatives from time to time. These
forward-looking statements are intended to provide management's
current expectations or plans for our future operating and
financial performance, based on assumptions currently believed to
be valid. They can be identified by the use of words such as
"anticipate," "intend," "plan," "goal," "seek," "believe,"
"project," "estimate," "expect," "strategy," "future," "likely,"
"may," "should," "would," "could," "will" and other words of
similar meaning in connection with a discussion of future operating
or financial performance. Examples of forward
looking statements
include, among others, statements relating to future sales,
earnings, cash flows, results of operations, uses of cash and other
measures of financial performance.
Because forward-looking statements relate to the future, they are
subject to inherent risks, uncertainties and other factors that may
cause the Company's actual results and financial condition to
differ materially from those expressed or implied in the
forward-looking statements. Such risks, uncertainties and other
factors include, among others. such as, but not limited to economic
conditions, changes in the laws or regulations, demand for products
and services of the company, the effects of competition and other
factors that could cause actual results to differ materially from
those projected or represented in the forward looking
statements.
Any forward-looking information provided in this release should be
considered with these factors in mind. We assume no obligation to
update any forward-looking statements contained in this
report.
Corporate
Contact:
Jimmy Chan
+1-(888)-982-1628
info@Sugarmade.com