Cresco Labs

Cresco Labs, Inc.

Company type	Public
Industry	Cannabis
Founded	2013
Founder	Charlie Bachtell, Joe Caltabiano
Headquarters	Chicago , United States
Area served	Nine U.S. states
Key people	Charlie Bachtell (CEO)
Products	Cannabis and medical marijuana products
Number of employees	2900 (2024)
Website	www.crescolabs.com

Cresco Labs, Inc. is a publicly listed, vertically integrated enterprise specializing in cannabis and medical marijuana, headquartered in Chicago, Illinois. The company operates retail outlets across nine states where medical marijuana is legally permitted. Cresco Labs is listed on the Canadian Securities Exchange under the symbol CL and trades over-the-counter in the United States as CRLBF.

History

Established in 2013 by Charlie Bachtell (CEO) and Joe Caltabiano (former president), Cresco Labs started with an initial investment of $3.5 million contributed by the founders and their associates. Both founders had prior experience at Guaranteed Rate, a mortgage company based in Chicago. Shortly after Illinois legalized medical cannabis, Bachtell, a graduate of DePaul University College of Law, crafted a detailed 25-page business plan.

Cresco initially focused on cultivation and retail operations within Illinois, initiating sales activities in 2016. By early 2018, the workforce numbered roughly 100 employees; this expanded to 300 by the third quarter of 2018 across six states. In October 2018, the company secured $100 million in private funding and announced intentions to go public through a reverse takeover on the Canadian Securities Exchange. Trading commenced in December 2018 following an $87 million capital raise. By the end of that year, Cresco's staff had grown to approximately 500, and it had acquired dispensaries to meet Illinois' regulatory cap.

After Illinois legalized recreational cannabis in June 2019, CEO Bachtell anticipated substantial market growth and aimed to double employee numbers to satisfy increasing demand. The company extended its Sunnyside dispensary brand into communities near state borders where cannabis remained illegal.

In March 2020, co-founder Joe Caltabiano stepped down from his role as president. In July 2023, Cresco initiated legal action against competitor Green Thumb Industries over allegations of employee poaching that breached non-compete agreements.

Throughout its expansion, Cresco Labs has prioritized strategic management and a vertically integrated structure to secure market share across multiple states with emerging cannabis markets. Its brand portfolio includes Cresco, Reserve, Remedi, Mindy's, High Supply, Good News, and FloraCal. As of 2024, Cresco reported $724 million in revenue and $364 million in net income, with total assets valued at $1.36 billion and an employee base nearing 2,900.

Acquisitions

On March 18, 2019, Cresco announced its acquisition of VidaCann for $120 million. VidaCann is a Florida-based medical marijuana company operating seven retail locations and holding licenses for cultivation, manufacturing, and retail within Florida.

On April 1, 2019, Cresco disclosed an $850 million acquisition deal for Origin House, a Canadian firm valued at CAD 1.1 billion. This transaction was intended to enhance Cresco's footprint in California, where Origin House’s products were distributed in more than 500 dispensaries. Marked as the largest public company transaction in U.S. cannabis history at that time, the acquisition was finalized on January 9, 2020, following review by the U.S. Department of Justice’s Antitrust Division.

On January 14, 2021, Cresco entered into an all-stock agreement to acquire Bluma Wellness—a Florida licensee—valued at $213 million.

In October 2021, Cresco announced plans to acquire Laurel Harvest, a Pennsylvania operator, for $80 million; the deal was expected to close during the fourth quarter of that year.

In March 2022, Cresco revealed intentions to purchase New York-based Columbia Care for $2 billion through an all-stock transaction. This acquisition would have positioned Cresco with the second-largest retail presence after Trulieve; however, it was not completed due to regulatory compliance challenges necessitating asset divestitures.

Marketing and branding

Cresco enhanced its marketing division by recruiting notable professionals, including Cory Rothschild, who previously served as director of consumer engagement at Gatorade; Cris Rivera, formerly senior director of marketing at MillerCoors; and Scott Wilson, ex-global creative director at Nike, appointed as Cresco's chief experience officer in November 2018.

In February 2019, Cresco introduced a new subsidiary and brand named Well Beings, dedicated exclusively to products featuring cannabidiol (CBD), thereby broadening its offerings beyond traditional marijuana products.

By July 2019, the company revealed a strategic rebranding initiative consolidating its 56 dispensaries under the "Sunnyside" label. This move aimed to unify the retail footprint and improve customer engagement. The wellness-focused brand replaced 11 former retail identities to strengthen competitiveness in premium shopping locations and align with mainstream retail expectations.

See also

• Medical cannabis in the United States