Building Petalfast: Jason Vegotsky's Take on Cannabis Distribution and Industry Growth

Navigating the Cannabis Distribution Landscape with Jason from Petalfast

In this episode, Vangst CEO, Karson Humiston, had the pleasure of sitting down with Jason Vegotsky, the CEO and visionary behind Petalfast, a company that's revolutionizing the cannabis distribution landscape. Jason's journey is a fascinating one, and he shared insights into the challenges and triumphs of navigating the complex world of cannabis distribution, drawing parallels with the alcohol industry, and his own personal growth as an entrepreneur.

What is Petalfast?

Jason began by giving us an overview of Petalfast, a distributor that outsources logistics and warehousing in certain states. He explained the core functions of a distributor are getting products into stores, handling customer relations, and ensuring brands are presented effectively to retailers. Petalfast operates with a selling organization and a field team that represents a portfolio of brands in California, Arizona, Massachusetts, and is looking to expand further as legalization progresses.

Jason's Background and Transition to Cannabis

Jason shared his background, starting with a brief stint at Goldman Sachs, which he quickly realized wasn't for him. He then moved into alcohol beverage distribution, leveraging his father's experience in the industry. However, his entrepreneurial spirit led him to partner with a beef jerky brand, where he learned valuable lessons in brand building and go-to-market strategies.

An unexpected encounter at a Wegmans store led Jason to pivot from beef jerky to butane gas, a key component in cannabis oil production. Despite his initial reservations, he saw an opportunity in the cannabis industry and took a calculated risk. That paid off when a hurricane in Houston disrupted butane supply and allowed his company to capture significant market share.

The Kush Co Experience and the Birth of Petalfast

Jason's success with butane gas led to a merger with Kush Co Holdings, where he took on the role of president. At Kush Co, he gained invaluable experience but realized the need for a better go-to-market strategy for cannabis distributors. This realization led to the creation of Petalfast, which he envisioned as a distributor that could sell to the alcohol industry without taking on inventory and accounts receivable risks.

We delved into the three-tier system in alcohol, which separates producers, distributors, and retailers to prevent monopolistic environments and to facilitate tax collection. Jason highlighted the differences in cannabis, where vertical integration is common, but he believes that the breakdown of verticals is necessary for scaling and success.

Building the Petalfast Team

When building his team, Jason focused on hiring individuals with a mix of alcohol beverage experience and cannabis industry knowledge. He values the lessons learned from failure and seeks out those who have experienced setbacks to help guide Petalfast away from similar pitfalls.

Looking ahead, Jason discussed the challenges facing the cannabis industry, including the need for consolidation and better regulatory frameworks. He emphasized the importance of being financially prudent, especially in the current climate where investment is scarce. Petalfast plans to pursue strategic M&A opportunities and continue to build its team with top talent.

Final Thoughts

Our conversation with Jason was enlightening, as he shared his unique perspective on the cannabis industry and the parallels with the alcohol distribution model. His journey from finance to cannabis distribution is a testament to the power of adaptability and vision in entrepreneurship. As Petalfast continues to grow and navigate the evolving landscape, we're excited to see the impact they will have on the industry and look forward to supporting them with strategic hires.

Thank you, Jason, for joining us on the podcast and sharing your incredible story. Your insights into the cannabis distribution space are invaluable, and we can't wait to see what Petalfast achieves in the coming years.