Fyllo has completed the purchase of DataOwl, a provider of marketing and customer loyalty solutions designed for cannabis retailers.

Fyllo currently collaborates with 320 cannabis retailers operating in 25 states, as well as Puerto Rico and Jamaica. According to Chief Marketing Officer Conrad Lisco, this acquisition enables the company to present what it considers the industry’s premier comprehensive marketing solution. This solution integrates consumer insights, digital advertising services, regulatory adherence – a capability enhanced by Fyllo’s previous acquisition of CannaRegs – and, through DataOwl, customer relationship management and loyalty programs connected to a retailer’s sales system.

As an illustration, founder and CEO Chad Bronstein, formerly the chief revenue officer at the digital marketing firm Amobee, explained that retailers will be able to utilize the Fyllo platform to dispatch promotional messages to frequent customers, while simultaneously guaranteeing full adherence to all applicable state and local regulations. He further noted the potential for the platform’s future application beyond the cannabis sector, extending to other heavily regulated industries.

“Industries like cosmetics and gaming, among others, share similar requirements in regulated environments, and would all gain advantages from automated loyalty and compliance features,” Bronstein stated.

Furthermore, he highlighted the growing interest among established brands in leveraging data related to cannabis and CBD consumers, a trend substantiated by a Forrester study commissioned by Fyllo.

Lisco emphasized that this acquisition occurs during a pivotal period for the cannabis industry, as dispensaries have been designated as essential businesses in numerous states, alongside the ongoing progress toward marijuana legalization.

“2020 marked a significant turning point for cannabis,” he said. “We observed a shift from an illicit status to an essential business designation within just ten months… 2021 is focused on observing cannabis brands attempting to expand, enabling them to capitalize on substantial growth. They have historically lacked access to the comprehensive marketing tools readily available to mainstream brands.”

Bronstein indicated that Fyllo intends to provide these capabilities to cannabis brands, beginning with the integration of its compliance features into the DataOwl product. The company also plans to establish a nationwide cannabis loyalty program, facilitating seamless expansion of marketing efforts across state lines for marijuana retailers while maintaining regulatory compliance.

The specifics of the acquisition’s financial details were not revealed. Dan Hirsch and Vartan Arabyan, the co-founders of DataOwl, will be joining Fyllo, along with their entire team, increasing the company’s total employee count to 110.

“Integrating with Fyllo will allow DataOwl’s solutions to reach the broadest possible audience through the most forward-thinking marketing platform in the industry,” Hirsch commented in a press release.