After helping develop a business that has since become one of the leading producers of cannabis-infused beverages by volume, Macai Polansky has his sights set on another aspect of the industry: cannabis delivery.
He plans to draw from his past experiences as a founder of Woodland-based Spacestation to help build the delivery service, Cannagram, into a national player with a focus on being the top seller of infused beverages.
Spacestation, a contract manufacturer and co-packer of cannabis-infused beverages, began operating in mid-2019. The company employs about 15 to 25 people, Polansky said.
Beverage brands Spacestation works with include Pabst Blue Ribbon, Cann, Wunder, Gem + Jane, Artet and Cannabis Quencher, along with about a dozen others.
Polansky co-founded the company with Matt McGinn, who prior to his involvement had started a cold-brew coffee company in Minnesota called Blackeye Roasting Co. The two were introduced through mutual friends and decided to launch their own cannabis-infused beverage brand called Nectr, which has since been sold.
In the process of looking for investors for the product, they came across a group looking to start a distribution business that had a building in Woodland approved for cannabis operations. They ended up partnering with the group to establish what would become Spacestation.
"We knew if we developed a single beverage, that it wasn't going to help build the category. We saw a big opportunity to help other brands come to market and help build the category, which was going to be important for our own success in the long run," Polansky said.
Plus, it takes a significant investment to build a brand, market it and sell the product, so co-packing allowed the group to cover expenses associated with building a state-of-the-art facility.
"We really were the first to market and still one of the only operational cannabis-infused co-packers — there are several that have been in development even before we started and still not fully operational," he said. "We were able to garner a ton of business because there was so much interest in infused beverages, and a lot of brands wanted to do it but building a facility capable and getting licensing is a big headache, so we had first-mover opportunity."
The process of striking a deal takes time, Polansky said. The group had to develop comprehensive manufacturing contracts, go through negotiations and account for liability and risks. Once that process was navigated, then came the onboarding process, which involved locking in packaging and labeling specifications and formulations — a brand that has its formulations dialed in can take about two to three months to onboard, whereas brands still in development can take anywhere from six to 12 months to get the product rolling.
The cannabis business comes with regulatory challenges. For Spacestation, one example was figuring out how to create a canned product that included child protection packaging. They eventually worked with Germany-based Xolution GmbH for a child-resistant closure that was resealable.
Another challenge was funding.
"It's really important to raise enough money early, because everything takes longer and is way more expensive than you'd ever imagine," Polansky said. "It's really important to set yourself up for success rather than scramble to get money together when you realize you are going to run out."
Now a few years on with its systems dialed in, Polansky said Spacestation produces an estimated 10 million-plus beverages a year.
"Because beverage is a low-margin product, you only make money at volume, and because the volume wasn't there in the cannabis industry, that was definitely a challenge we were up against," Polansky said. He declined to disclose Spacestation's revenue.
Polansky recently took a step back from his role at Spacestation to refocus his efforts on Cannagram, which is a project he had to put on the back burner when the infused beverage endeavor starting picking up steam.
Manndie Tingler, co-founder of Sacramento-based cannabis company Khemia, is partnering with Polansky on Cannagram. She described her business partner as humble and quick to offer help to anyone who needs it.
"I think what Macai's biggest strength in the industry is his sense of innovation and being able to see something the market needs," Tingler said. "When he started Spacestation, the market was primed and ready to experience beverages in cannabis form, and he was at the forefront of that movement. With Cannagram and our business model, he is not afraid to put great people in the right place to do what they do best. I think he's very good at identifying people's skill set and putting them into place on his team."
The duo launched the cannabis delivery service in the Sacramento market on Sept. 1. The initial plan is to prove the business model in the local market over the next six months.
"Once we have visibility and prove our business model is sustainable and profitable, then we plan to look for partners to help grow the Cannagram brand nationwide," Polansky said.
Polansky is a founding member of the California Cannabis Courier Association and Cannabis Beverage Association.
The Essentials
Title: Co-founder of Spacestation, CEO of Cannagram
Age: 37
Education: Some college
Personal: Partner of 17 years and two children.
Passion outside of work: "I really enjoy music festivals and experiencing festivals. Burning Man is probably my favorite."
Something people would be surprised to know about you: "I grew up on welfare. I grew up poor as dirt and decided early on I didn't want to be poor anymore and worked hard to get where I'm at."
First nonprofessional job: "At 15, I started working on a bottling line at a winery."
