Business

Talking Points: Union Electric CEO Max Goldstein

By Alex Halperin
Jul 26, 2021
Courtesy Union Electric

Union Electric, the first brand out of SoCal incubator Open Nest, launched in March 2020, the day after the covid lockdown began.

It’s been a good time for many value flower brands. And while boss Max Goldstein shares the bullishness of most every pot CEO, he’s taking the company in a couple unique directions:

  • Throwing a bit of shade on his competitors, Goldstein said they’re “not necessarily taking notice of the core consumer shopping every day for value prices.” Those consumers, he said, want something “stickier” than what’s currently available. 

Who is that core customer? Union Electric isn’t afraid to use the ‘s’ word.

  • A slide Goldstein shared with WeedWeek, describes the Union Electric “consumer we serve” as the “eternal stoner:” “Their unwavering love for cannabis is rooted in relief…They live for timeless classics: weed, music and gear. They seek daily relief through cannabis. Smoking is their go to but they certainly dabble elsewhere. While jaded by the status quo, they are still forward thinking with a clear need for a better world.”
  • This target Union Electric customer has a small cart size, but “over the years it’s a massive amount of money,” Goldstein said.
  • The slide describes eternal stoners as “younger & frugal,” “modern working class” and “Jaded yet hopeful.”
  • The slide pictures a 25-ish white guy in a Union Electric wool hat.

One way Union Electric seeks to engage these eternal stoners is by selling them a piece of the brand. 

  • It’s one of very few, (perhaps the only) THC companies doing a crowdfunding campaign where non-accredited investors can put in as little as $100.
  • The company aims to raise $500,000, but Goldstein, a Google alum, described it as “much more a manifestation of our brand than a financing tool.”
  • “We want to have 5,000 investors, and [believe] it’s going to have massive ROI,” as a way to generate brand loyalty among its stockholders.