Waukesha-based
The TabEASE Co., a manufacturer of THC-derived products, has acquired a chain of smoke shops with locations throughout central Wisconsin.
The TabEASE Co. now owns
Discount Smokes stores located in Wisconsin Dells, Portage, Baraboo, Sauk City and Friendship. These smoke shops will be converted into dispensaries, selling The TabEASE Co.’s entire lineup of products.
With this acquisition, The TabEASE Co. has grown from four employees to 21.
“Most of our business is the vape business, but our manufacturing company also makes gummies, tablets, cocktail syrups…we also distribute TCHA flower,” said
Jeremy Smith, president of The TabEASE Co.
One of the company's best-known products is
a flavored pressed pill that contain delta-8 THC, a psychoactive substance found in the Cannabis sativa plant. The 2018 federal Farm bill legalized hemp and CBD products; delta-8 THC is typically sourced from hemp.
At the end of 2023, The TabEASE Co. opened its first dispensary in Waukesha along Grandview Boulevard.
Since the retail space opened, The TabEASE Co. has experienced between 20% and 30% revenue growth every month, according to Smith.
Traditionally, The TabEASE Co. has manufactured and branded its products to sell wholesale to retailers. That business model is shifting as Smith looks to skip the middle man. The company’s Waukesha storefront makes more money than its entire wholesale business.
The wholesale business has proven to be challenging because smoke shop owners often look for the cheapest products possible to put on their shelves, according to Smith. There is also a crowded field of competitors fighting for limited retail space.
"This new scope of our business allows us to focus on creating quality products rather than having constraints of being cheap enough to compete in the wholesale market," said Smith. "Not only does this new model allow us to be competitive at the point of retail, but it also eliminates the constraint of designing products that are cheap enough to compete with mislabeled smoke shop products."
Competitors selling mislabeled products to make more money is a new challenge The TabEASE Co. is navigating.
A recently developed strain of THC, called TCHA, has gained popularity among consumers. However, TCHA is not regulated, Smith explained. This means competitors can list THCA as an ingredient on the label of their products and charge more for them without an outside party verifying the ingredient list is accurate.
THCA, like delta-8 THC, is a cannabinoid, a substance derived from the cannabis plant.
“Those companies can sell products at a higher cost than what we sell our products for because delta-8 is one-tenth the cost of THCA,” said Smith. “Competing with mis-labeled products is nearly impossible.”
Still, he sees nothing but opportunity within the cannabis industry. Wisconsin has no recreational marijuana program, so larger multi-state corporations are not investing here yet, Smith explained.
“There’s a revolution happening in Wisconsin and federal laws are opening up opportunities for smaller entrepreneurs to build their business,” he said.
In the coming weeks, The TabEASE Co. will continue expanding its product portfolio. The business is partnering with the
Titletown Brewing Co. to create a lineup of cannabis-infused cocktails. A THCA concentrate that can be put into any food or beverage a customer desires is also in the works.
