Brendan McKee, Co-Founder and COO of Silver Therapeutics – Interview Series

Although the thousands of professionals throughout the United States cannabis industry all come from a diverse list of previous professions, few can say they have founded a successful footwear company and started their own MMA league. This, however, is the interesting story behind Brendan McKee, Co-Founder and COO of Silver Therapeutics. Along with his fascinating professional journey, McKee and Silver Therapeutics are strategic in their location planning, as they have locations in two of the newer state markets involved in cannabis: Maine and Vermont.

So, what subjects did you study while at Amherst, and what student organizations were you involved in? How did your experiences there prepare you for working in the Northeast cannabis industry?

Political Science and Fine Arts were the subjects I focused on academically. I was fortunate enough to play football all four years and serve as a captain my senior year. We all raised money and participated in the annual Walk For Life event which contributed to cancer research. Going to a small school like Amherst forces you to be social which ultimately helps you develop strong people skills. Building structure around school, studying, practice, and training helped prepare me for the many challenges in our industry.

Prior to working in cannabis, what were some of the industries that you worked and/or owned businesses in, and what were some similarities you noticed between those industries?

I grew up lugging furniture for the family moving company and kept with it until the company sold. After college I played one season of professional football in Europe. Upon my return I went into finance and eventually left to pursue some passion projects with wellness based non-profits. For two years I started, operated, and fought in a fully sanctioned corporate fight league (Office to Octagon MMA). Around that same time I co-founded an athletic sock brand called Pedestal Footwear. Once I committed to the cannabis retail journey, I sold my half of PF to my co-founder/business partner. Regardless of the business you are in, communication is everything. As part of the communication process, be sure to set expectations and understand what motivates your partner/s.

What were some cornerstone moments that led to the creation of Pedestal Footwear, and what have been some notable highlights you’ve celebrated with the brand? How does this athletic footwear brand differ from and outshine its competition?

Co-Founding and launching Pedestal Footwear was an awesome journey. It all started with our love for barefoot training. We had a successful launch on Kickstarter and eventually appeared on multiple networks like MSNBC. We actually struck a deal with Kevin O’Leary on Shark Tank but our pitch never aired so the deal never closed. We won the Men’s Health Best Gear Award multiple times and had dozens of features in other well known magazines. We differentiated ourselves by committing to US manufacturers and the highest graded materials. We also visited gyms, yoga studios, military bases and a whole bunch of wellness facilities to get workouts in and spread the word.

What initially interested you about working in the Massachusetts cannabis industry, and what inspired you to finally make the leap into the new state industry?

I’m from Massachusetts and I’ve been using cannabis for more than half my life. Right around the time it was rolling out in Massachusetts I was living in NYC and going through a divorce. Cannabis was incredibly helpful to me during that period so I moved back to Massachusetts and went all in on the cannabis space.

When was Silver Therapeutics founded, and how would you describe the process of both receiving a license in the Massachusetts industry and opening one of the first fully compliant retail stores in the state?

The formation docs for Silver Therapeutics were filed in 2017 and our first store opened in 2019. Those two years were wild. We were one of the first groups to open an adult use retail store so we were building the plane as we flew it (as was everyone else at that time). The regulators were learning alongside us as well so there were definitely some confusing and challenging times. That said, we pushed through it and made history.

One of the momentous milestones that Silver Therapeutics has reached is a 90 percent employee retention rate year over year. Given that turnover is quite a widespread issue in cannabis industries across the states, how does Silver Therapeutics successfully retain its employees and keep them satisfied?

We pay our people what they deserve. We also do everything we can to support our team by way of our benefits offerings, PTO, mental health services, upward mobility, bonuses, etc. I personally connect with all of our managers and a large percentage of our team members. It’s important to spend time with your team even if it requires a lot of travel. When you boil it down, being compassionate and paying people well is what helps us maintain that 90%+ retention rate.

Congratulations on expanding into the other Northeast states that have legalized cannabis! When it comes to neighboring states such as Maine and Vermont, what are some frequent issues that those state industries and their businesses have to deal with?

Thank you! It’s been awesome to operate in the states we have family roots in. Advertising regulations and limitations in Vermont can be challenging. Maine has been a great market for us with the exception of Portland’s seasonality. The winter months are tough due to market saturation and the massive drop in tourism. We always find a way to make it work though.

Concurrently, what are some strengths and advantages that those state industries hold, and how does Silver Therapeutics achieve the astronomical revenue growth that it reaches?

We have been mindful and deliberate of where we open our retail locations. As an example, we knew Bennington, VT was a solid option for us because our Williamstown, MA retail was already serving that community (the towns are about 25 minutes apart from one another). We decided to “own our backyard” and expand into areas that were familiar with our brand.

What are some other current trends that you’ve observed in the Maine, Massachusetts, and Vermont industries? Are certain product types more popular than others, and how would you describe overall consumer behavior?

Flower is king. Vapes are seeing incremental gains year over year. Beverages tend to be seasonal for us and move really well in the spring and summer. Gummies continue to outpace chocolates by a wide margin. From an overall industry perspective, price compression is inevitable as markets mature. Bundles, deals, discounts, and promos are necessary to compete so you need to make sure you factor that in with your margins. Customers will always love and appreciate loyalty programs.

If a federal rescheduling from Schedule I to Schedule III would occur, how would it change both the multi-state operations of Silver Therapeutics and the state industries that the company operates in?

We will continue to operate as if it never changes. That said, if federal rescheduling occurs it will still be a long time before the industry benefits in a meaningful way. Tax burdens will continue to cause havoc and traditional financing opportunities will remain challenging to secure. In order to bring on non-predatory debt, or execute an exit, you either need to own your real estate, or consider an ESOP transaction.

Thank you for joining us, Brendan! For more information on Silver Therapeutics and its products, please visit its website.