360° Coverage : Magical Butter Shoots For A Spot In The Marijuana Market (It...

2 Updates
Magical Butter Shoots For A Spot In The Marijuana Market (It Makes Good Salad Dressing Too)
Photo Credit: Forbes Business

Magical Butter Shoots For A Spot In The Marijuana Market (It Makes Good Salad Dressing Too)

Mar 30 2014, 1:00pm CDT | by

As more states decriminalize cannabis, the beginnings of a new market are starting to take shape. The debate over whether marijuana companies are a sound long term bet has perplexed investors and...

Filed under: news


28 weeks ago

Magical Butter Shoots For A Spot In The Marijuana Market (It Makes Good Salad Dressing Too)

Mar 30 2014, 1:00pm CDT | by

As more states decriminalize cannabis, the beginnings of a new market are starting to take shape. The debate over whether marijuana companies are a sound long term bet has perplexed investors and about 60 publicly-traded companies popped up over the past five years claiming to be hemp stocks, often without submitting to IPO scrutiny, as Forbes’ own Nathan Vardi reported last week.

The scramble to get a piece of the burgeoning cannabis space includes smaller-time bootstrapping ‘ganjapreneurs’ as well. Garyn Angel, founder of the Seattle-based Magical Butter, is one of these, and if the sales trajectory of his marijuana-butter appliance maintains, he could be on course to a big payoff either through distribution or acquisition.  

When Forbes caught up with Angel he was in Guangzhou, China working with fabrication plants to ramp up production of his products. It’s essential—the company’s been selling out inventory like crazy, shipping 4,500 units per month of the $175 device by latest count, and is now on backorder. “We’ll do probably 70,000 pieces this year,” claims Angel.

The product – which is essentially a temperature-regulating hotpot with a blender function – allows herbs of all kinds to be mixed into compounds with butter, oils or alcohol. The cannabis connection is often tagged to Magical Butter but technically the device can make a mean salad dressing or shea-based skin cream. All that’s required is for ingredients to be placed in the machine. “It’s micro-processor-controlled,” Angel explained. “It controls the temperature, the time, the blending speed, and the blending duration. If the temperatures aren’t even it knows to spin. It automates everything, there’s no work at all.”

Its connection to the controversial herb stems from the fact that marijuana-infused fats have been used in cooking by those who don’t want to hack up a lung taking bong hits or floss stems and leaves from their teeth after smoking a joint. Angel doesn’t shy away from the association. In fact he embraces it. “We’ve gotten this far this quickly because the cannabis community has come together and helped us nonstop.”

Angel, who’d run his own Florida-based money management firm for 15 years, built his first prototype of Magical Butter back in 2010 from Home Depot parts after a close friend with Crohn’s disease admitted that though medicinal cannabis helped with his ailment, asthma kept him from toking his favorite cure. After several redesigns, Angel felt he had something worth selling. “I started to do some research and – looking at the number of searches for cannibutter and pot-butter and pot brownies – I said, ‘wow, there’re a lot of people cooking with cannabis and there’s no equipment to do it with.’”

After going through the laborious process of establishing a relationship with a Chinese manufacturing plant in Guangzhou, Angel set up production for 1,290 units in 2011. He began officially selling in November of 2012 and burned through his first run in 60 days.

So far Angel has placed his life savings into the company. He’s invested $4 million and last year shut down his finance business to work on Magical Butter full time. He’d tried to juggle the two enterprises but gave in when his son, upon seeing his father leave for work on a Saturday, told him that he should stay home. “I said, ‘son, I gotta go work,’ and then I got in my truck and I was balling, I was a disaster,” Angels says. “Growing up, my dad worked like that and I didn’t like it.”

The next iteration of the Magical Butter appliance is on the way. Called the MB3, it is Bluetooth controlled and designed to make things like pasta sauce and other ingredients. Angel envisions collaborating with physicians on creating dietary health recipes for patients and dieters. The 23-person company is also set to open a food truck in Denver, Colorado which Angel claims will be the first of its kind to serve cannabis-infused foods.

Looking forward, Angel would like to take on investment from private equity, venture capital or even private investors in order to spur growth. He has expansion plans on the horizontal which he would not discuss on the record, but all focus on striking while the marijuana market is hot. “I think I have about 24 months right now to build one of the largest cannabis brands in the world before it gets a lot more difficult and a lot more expensive.”

Follow me on Twitter @KarstenStrauss

8 Weird & Unique Products From Startups And Small Business

Source: Forbes Business


6 weeks ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a new co ...
Source: Business Times Singapore   Full article at: Business Times Singapore


7 weeks ago

MAS posts loss of RM307m for Q2

Aug 28 2014 5:00pm CDT | Source: Business Times Singapore

August 29, 2014 1:13 AMMALAYSIA Airlines (MAS) registered a loss of RM307 million (S$122 million) for the second quarter to end-June, but warned of worse to come in the second half when the "full financial impact of the double tragedies of MH370 and MH17" hits ...
Source: Business Times Singapore   Full article at: Business Times Singapore


Don't miss ...


<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.


blog comments powered by Disqus

Latest stories

Ebola outbreak in Senegal over: WHO
Geneva, Oct 17 (IANS) The World Health Organisation (WHO) Friday declared the Ebola outbreak in Senegal was finished, commending the West African country on its diligence in ending the transmission of the virus.
Brussels Airport to intensify passengers screening for Ebola
Brussels, Oct 17 (IANS) Brussels Airport authorities Friday said they would increase screening of passengers coming from Ebola-affected countries.
Obama to appoint Ron Klain to lead US Ebola fight
Washington, Oct 17 (IANS) US President Barack Obama is expected to appoint Ron Klain, best known for serving as chief of staff to both Vice President Joe Biden and former vice president Al Gore, as the single person leading the government's effort to fight Ebola, a media report said here Friday.
British PM appeals to world leaders to support anti-Ebola fight
London, Oct 17 (IANS) After the UN chief berated the nations over their cold response to contain Ebola, British Prime Minister David Cameron has called on world leaders to "wake up" to the crisis posed by the disease's outbreak, and follow Britain, the US, and France to medically and financially support countries in West Africa .

Latest from the Network

Bush shoe-tossing painting hits record at Doha auction
Doha, Oct 15 (IANS/EFE) A controversial painting by Iranian artist Mahmud Obaidi, depicting an Iraqi journalist throwing shoe in 2008 at then US president George W. Bush, was sold for $62,500 at a Sotheby's auction in...
Read more on Celebrity Balla
US offers $45 mn bounty for eight terror leaders
Washington, Oct 15 (IANS) The US said Tuesday it is offering rewards totalling up to 45 million dollars for information on eight key leaders of the Al Qaeda in the Arabian Peninsula (AQAP) terrorist organisation. The...
Read more on Politics Balla
UNSC extends peacekeeping mission's term in Abyei
United Nations, Oct 15 (IANS) The UN Security Council (UNSC) has renewed the mandate of the UN peacekeeping mission in the Abyei border region between Sudan and South Sudan. In an unanimously adopted resolution, the...
Read more on Politics Balla
Ebola cases in West Africa could reach 10,000 per week: WHO
Geneva, Oct 15 (IANS) The World Health Organisation (WHO) has warned that the Ebola epidemic in West Africa could reach 5,000 to 10,000 cases per week by the first week of December. "Quite frankly, ladies and...
Read more on Business Balla
Turkey, Singapore sign strategic partnership agreement
Ankara, Oct 15 (IANS) Turkey and Singapore have signed a strategic partnership agreement to boost economic, political and cultural cooperation, as well as security collaboration, during the official visit of...
Read more on Politics Balla
Christina Aguilera is returning to 'The Voice' USA
Christina Aguilera will return to 'The Voice' USA next year. The 'Your Body' hitmaker, who previously shared a rotating spot on the judging panel with Shakira, has been replaced by Gwen Stefani this season as she is...
Read more on Celebrity Balla
Kesha's music producer hits back
Kesha is being countersued by her record company boss, Dr. Luke. The 41-year-old music producer, who runs Kemosabe Records, claims the 27-year-old 'Tik Tok' singer is a liar and is trying to extort him after she accused...
Read more on Celebrity Balla
Jason Derulo won't get back together with Jordin Sparks
Jason Derulo insists his split from Jordin Sparks is permanent. The 'Talk Dirty' hitmaker, who recently ended his relationship with the 'No Air' singer after three years of dating, has ruled out getting back together...
Read more on Celebrity Balla
Josh Groban feels 'very lucky' to be dating Kat Dennings
Josh Groban feels ''very lucky'' to be dating Kat Dennings. The 'Brave' hitmaker was very nervous before singing in front of the '2 Broke Girls' actress for the first time at the Carousel of Hope Ball in Beverly Hills,...
Read more on Celebrity Balla
Australian Richard Flanagan wins 2014 Man Booker prize
London, Oct 15 (IANS) The first Man Booker prize to allow American nominees was Tuesday night won by an Australian, with Richard Flanagan triumphing for a novel of love and war that tells the harrowing stories of...
Read more on Celebrity Balla