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Jaunty’s CEO Nicolas Guarino knows survival, having led his family through Venezuela’s crisis before facing a 99% CBD market crash in the USA.
Ever feel like the CBD market is on autopilot, stuck in a cycle of repetitive products and shrinking profit margins? For cannabis investors, this stuck-on-repeat dynamic has meant intense price pressure and dwindling returns.
Jaunty‘s CEO Nicolas Guarino knows a thing or two about survival. Before navigating the brutal CBD crash that slashed prices by 99%, he and his family weathered the economic and political upheaval of Chávez-era Venezuela. Now, in an industry dominated by dull uniformity, Guarino has led Jaunty to profitability by leaning into solventless products and creating an accessible, unpretentious brand.
Guarino’s journey offers a fresh perspective and a profitable path forward for investors seeking stability in the face of volatility, proving that resilience is an asset that translates across borders and markets.
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Guarino’s roots are firmly planted in agriculture. He grew up working with water buffalo on family farms in southeastern Venezuela’s grassy savannah. Moving to New York for college, he brought with him the ethos of hard work and family ties. This background profoundly shaped his journey into the cannabis industry.
“Our family has always been about getting our hands dirty,” Guarino told Benzinga Cannabis in an exclusive interview. “The values I learned back on the farm have been foundational in building Jaunty. It’s about understanding the land, the crop, and the entire process, which, in turn, influences our approach to quality cannabis production.”
Courtesy of Jaunty
Entering the CBD space in 2017, Guarino and his team launched Jaunty as a producer and supplier of high-quality CBD oil for manufacturers across the U.S. However as the market became saturated, they quickly encountered the harsh realities of price compression. By 2020, Jaunty saw the price of CBD oil drop to a meager $65 per kilo – a 99% decline from its peak, putting intense pressure on their wholesale business model.
“The CBD space became a game of scale,” Guarino explained. “The Farm Bill’s structure supports large-scale production but doesn’t leave much room for smaller, quality-focused brands. We were nearly bankrupt, but we couldn’t quit. We saw an opening when New York moved towards recreational legalization.”
New York’s decision to prioritize licenses for existing CBD operators was a lifeline. Guarino realized that to thrive in the THC market, Jaunty needed a brand that could stand apart, rather than relying on wholesale production alone. “It was clear we had to create a brand that would resonate on quality and effect,” he said.
Building Jaunty: It’s The Brand, Not Just The Product
When THC legalization got underway in New York, Guarino initially entertained deals with established brands like Old Pal, almost venturing into co-branding and white labeling. But he soon realized that these arrangements would pull Jaunty back into the commodity cycle he had just escaped.
“White labeling is for big facilities, with massive automation,” he said. “We don’t have that; we have exceptional extraction skills honed over years in CBD. So, we decided to focus on creating our brand rather than becoming just another supplier.”
Courtesy of Jaunty
This strategic decision led to the creation of Jaunty’s product lines, starting with vapes and expanding to solventless Live Rosin Gummies. By prioritizing brand identity, Jaunty has been able to maintain a competitive edge in a market where differentiation is essential.
The Fam Behind The Brand
Jaunty’s operations are more than just a business for Guarino, they are a family effort. He brought in his cousin from Venezuela who is a seasoned logistics expert, to run Jaunty’s distribution. His cousin’s experience managing 75 poultry trucks across Venezuela in challenging conditions was invaluable.
“With him overseeing our logistics, we are the only company in New York that guarantees delivery within 48 hours,” Guarino said. “It’s truly a blessing to have someone so experienced managing a crucial part of the business.” This expertise has allowed Jaunty to achieve an impressively low 4.3% distribution cost relative to sales, enhancing profitability without sacrificing service quality.
A Few Cost-Effective Strategies
The decision to invest in butane extraction for specific products reflects Jaunty’s calculated approach to innovation. “The full investment for our butane machine setup was around $500,000,” Guarino explained. “But with the right brand presence and strong distribution, we project a return on investment in four to five months.”
Jaunty now places a strong emphasis on solventless products, reflecting an industry-wide shift towards purer, more natural cannabis experiences. According to Guarino, solventless extraction is a cost-effective method with high market appeal, particularly since it requires less investment compared to butane-based extraction.
Courtesy of Jaunty
“It’s a lower capex approach that lets us offer high-quality products without the heavy initial investment,” he said. In addition, by focusing on outdoor-grown cannabis, Jaunty has been able to keep costs low while achieving quality results comparable to indoor-grown products.
A Consumer-Centric Identity
Jaunty aims to create an accessible brand for cannabis users interested in oil-based products, especially those curious about moving from flower or nicotine vaping to cannabis oils.
Unlike many extract-focused brands, which can feel exclusive or elitist, Jaunty’s approach is deliberately welcoming. “Too many brands make consumers feel they aren’t in the know. Jaunty is here to open up cannabis, not gatekeep it,” Guarino said.
This inclusive identity is especially appealing to nicotine vapers exploring cannabis, with Jaunty offering an approachable entry point.
‘The Dab Crowd’
“Most extract-focused brands have a vibe like, ‘If you know, you know.’ If you’re not part of the dab crowd, you’re not cool enough,” he added, highlighting how Jaunty takes the opposite approach by making cannabis feel approachable and not intimidating.
To help new users feel informed, Jaunty prioritizes consumer education, explaining oil types, effects, and product benefits in their packaging and interactions. “We take every opportunity to educate—about oil types, effects, and why you might choose one product over another,” Guarino explained.
As they continue to grow, Jaunty is actively learning about its consumer base, even incorporating QR code surveys on packaging to gather direct feedback.
Courtesy of Jaunty
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“}]]Jaunty’s CEO Nicolas Guarino knows survival, having led his family through Venezuela’s crisis before facing a 99% CBD market crash in the USA. Ever feel like the CBD market is on autopilot, stuck in a cycle of repetitive products and shrinking profit margins? For cannabis investors, this stuck-on-repeat dynamic has meant intense price pressure and dwindling returns. Read More
