Cresco Labs
A Chicago-based, vertically integrated United States cannabis company involved in cultivation, processing, branded products, and dispensary retail.
Last updated October 14, 2026
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Overview
Cresco Labs, Inc. is a Chicago-based cannabis company that operates across cultivation, manufacturing, branded cannabis products, and retail dispensaries. Its business developed in response to the expansion of state-regulated medical and adult-use cannabis markets in the United States. The company was founded in 2013 by Charlie Bachtell and Joe Caltabiano after Illinois enacted its medical cannabis law. Bachtell prepared an initial business plan after Caltabiano suggested exploring the opportunity; both had previously worked together at the mortgage company Guaranteed Rate. The founders initially assembled approximately $3.5 million from themselves and three friends, while Denver Relief Consulting received an equity interest for operational advice and infrastructure support. Cresco began with an Illinois-focused model combining licensed cultivation, processing, and retail. Its first Illinois retail locations were licensed in Joliet, Kankakee, and Lincoln and became operational by the end of 2015. The company began operating cultivation facilities in November 2015 and recorded its first retail cannabis sales in January 2016. As Illinois and other states expanded their regulated markets, Cresco pursued a multi-state operating strategy rather than remaining a single-state producer. By the end of 2018, it employed approximately 500 people and held licenses or operations in Illinois, Pennsylvania, Ohio, Arizona, Nevada, and California. The company raised substantial private capital in 2018 and entered the public markets through a reverse takeover involving Randsburg International Gold Corp. Cresco began trading on the Canadian Securities Exchange in December 2018. It subsequently expanded through acquisitions, including Florida medical cannabis operator VidaCann, California-focused Origin House, Florida licensee Bluma Wellness, and Pennsylvania operator Laurel Harvest. The Origin House transaction increased Cresco's access to California's distribution network, while the Florida transactions were intended to strengthen its position in that state's vertically integrated medical cannabis system. Cresco's retail business has principally operated under the Sunnyside brand. In 2019, the company announced plans to consolidate a number of retail identities under Sunnyside and position the stores as more approachable, wellness-oriented cannabis destinations. Its product portfolio has included cannabis flower, extracts, vape products, edibles, and cannabidiol-focused offerings. The company has also used multiple consumer brands rather than presenting all products under the corporate Cresco Labs name. Illinois adult-use legalization, which took effect in 2020 after legislation was enacted in 2019, created a major growth opportunity for Cresco. Management anticipated that the recreational market would substantially exceed the state's earlier medical market and planned additional hiring and retail capacity. Cresco developed Sunnyside locations in Illinois communities near borders with states where cannabis remained illegal, including Danville and South Beloit, where location strategy was intended to capture cross-border demand while remaining within Illinois law. Cresco's expansion has also faced management changes, litigation, regulatory constraints, and unsuccessful merger plans. Co-founder Joe Caltabiano resigned as president in March 2020. In 2022, Cresco agreed to acquire Columbia Care in an all-stock transaction valued at approximately $2 billion, but the combination ultimately did not close after the companies were unable to complete the asset divestitures required for regulatory approval. In 2023, Cresco sued Green Thumb Industries, alleging that a Green Thumb executive recruited Cresco employees subject to contractual non-compete restrictions. Cresco remains an active multi-state cannabis operator, although its precise state footprint and retail portfolio can change as licenses, acquisitions, divestitures, and state regulations evolve.
History
Cresco Labs was established in 2013 by Charlie Bachtell and Joe Caltabiano, who had met while working at Guaranteed Rate. The founders pursued the business after Illinois adopted a medical cannabis framework. Bachtell, a lawyer who continued working as Guaranteed Rate's general counsel until 2015, prepared an initial business plan, while Caltabiano remained at Guaranteed Rate until 2017 and later worked at BeMortgage before joining Cresco full time. Their initial financing came from the founders and three friends, with Denver Relief Consulting receiving an equity interest for helping establish operating knowledge and infrastructure. Cresco's first operating focus was Illinois. It received licenses for retail locations in Joliet, Kankakee, and Lincoln, with those stores operating by the end of 2015. The company began cultivation operations in November 2015 and made its first retail cannabis sales in January 2016. Its model was vertically integrated: cultivation facilities supplied processed cannabis products, while company-controlled dispensaries provided a direct retail channel. This approach was designed for state markets in which cannabis businesses generally must operate within separate state licensing systems. The company expanded rapidly as additional states legalized medical or adult-use cannabis. It employed about 100 people at the beginning of 2018 and approximately 300 across six states by the third quarter. In October 2018, Cresco raised approximately $100 million in private investment capital. It then announced a plan to become publicly traded in Canada through a reverse takeover involving Randsburg International Gold Corp. Cresco began trading on the Canadian Securities Exchange in December 2018 and also traded in United States over-the-counter markets. By the end of 2018, its workforce had grown to roughly 500 employees. Acquisitions became a central part of the expansion strategy. In December 2018, Cresco acquired two Illinois dispensaries, bringing its Illinois retail portfolio to the state limit described at the time. In 2019, it announced the acquisition of Florida medical cannabis operator VidaCann and agreed to acquire Origin House, a Canada-based company with an established California distribution network. The Origin House transaction was subject to additional antitrust information requests and closed in January 2020. Cresco later agreed to acquire Florida licensee Bluma Wellness and Pennsylvania operator Laurel Harvest. Marketing and consumer branding also became more prominent. Cresco recruited executives with backgrounds in consumer engagement, alcoholic beverages, and global creative direction. In 2019, it launched Well Beings as a cannabidiol-oriented brand and announced that its various dispensary identities would be consolidated under Sunnyside. The Sunnyside concept emphasized a more standardized, wellness-associated retail experience and was intended to make dispensaries resemble familiar national retail environments. Illinois adult-use legalization created a new phase of growth. After recreational sales were authorized from January 2020, Cresco planned to increase staffing and production capacity. It also opened or operated Sunnyside stores in Illinois communities near borders with states that had not legalized cannabis, seeking to serve lawful in-state purchasers and visitors while complying with Illinois rules. Cresco's development has included leadership turnover and regulatory limits on consolidation. Caltabiano left the company in March 2020, while Bachtell continued as chief executive. In 2022, Cresco proposed a large all-stock merger with Columbia Care. The combination would have created a substantially larger multi-state platform, but it was abandoned after the parties could not complete divestitures needed to satisfy regulatory requirements. In 2023, Cresco brought litigation against Green Thumb Industries concerning alleged recruitment of employees bound by non-compete provisions. Cresco remains an active public cannabis company whose operations and footprint are shaped by changing state licensing rules, federal restrictions, market conditions, and merger approvals.
- 2022
Columbia Care merger proposed
[1]Cresco announces a proposed approximately $2 billion all-stock acquisition of Columbia Care; the deal later fails to close.
- 2020
Illinois adult-use market opens
[1]Illinois begins adult-use cannabis sales, creating a significant new market for Cresco's production and Sunnyside retail operations.
- 2019
VidaCann and Origin House transactions announced
[1]Cresco announces acquisitions designed to expand its Florida medical cannabis and California distribution positions.
- 2018
Private capital raise and public-market expansion
[1]Cresco raises major private financing and announces a reverse takeover intended to place the company on the Canadian Securities Exchange.
- 2018
Canadian Securities Exchange listing
[1]Cresco begins trading on the CSE under the symbol CL.
- 2016
First retail cannabis sales
[1]Cresco records its first retail cannabis sales in Illinois.
- 2015
Initial Illinois retail and cultivation operations
[1]The company brings its first Illinois retail locations into operation and begins operating cultivation facilities.
- 2013
Cresco Labs is founded
[1]Charlie Bachtell and Joe Caltabiano establish Cresco Labs after Illinois passes its medical cannabis law.
Products and positioning
A vertically integrated, multi-state cannabis operator combining large-scale cultivation and processing with branded products and regulated dispensary retail.
Cannabis product brand
Cresco
The Cresco name is used for branded cannabis products produced within the company's cultivation and manufacturing network. The range has included flower, extracts, vape products, and other products sold through regulated dispensaries. Availability and product formats vary by state because cannabis products are regulated through separate state systems.
CBD product brand · 2019
Well Beings
Well Beings was introduced as a Cresco subsidiary and brand for cannabidiol-focused versions of products. Its positioning was intended to address consumers seeking CBD products rather than products centered on intoxicating THC.
Cannabis dispensary retail brand · 2019
Sunnyside
Sunnyside is Cresco's principal retail identity. The brand was developed to consolidate several dispensary names and create a more consistent, wellness-oriented shopping environment. Sunnyside stores sell medical and adult-use cannabis products where permitted by state law, with individual store offerings determined by local licensing and market rules.
Controversies
2023
Employee-recruitment lawsuit against Green Thumb Industries
Cresco alleged that a Green Thumb Industries operations executive recruited Cresco employees despite allegedly knowing that some were subject to 12-month non-compete obligations. The matter was a civil dispute and the allegations were not presented as an established finding of wrongdoing.
Marketing campaigns
- 2019Sunnyside retail rebrand
United States · Illinois
Cresco announced plans to rebrand its active dispensaries under the Sunnyside name, replacing and consolidating multiple retail identities around a wellness-oriented customer experience.
Outcome. Sunnyside became the company's principal retail brand, although the exact store footprint has changed over time.
Brand decisions
2022
Proposed Columbia Care acquisitionM&ABackground
Cresco sought to create a larger multi-state cannabis platform and expand its retail footprint.
Action taken
The companies announced an all-stock transaction valued at approximately $2 billion.
Aftermath
The transaction did not close because required asset divestitures needed for regulatory compliance were not completed.
Proposed transaction value. Approximately $2 billion in stock (March 2022 announcement)
2019
Acquire Origin HouseM&ABackground
Cresco sought to strengthen its California presence through Origin House's distribution relationships and product reach.
Action taken
Cresco agreed to acquire Origin House in a transaction described at approximately $850 million in United States dollars, or $1.1 billion in Canadian dollars.
Aftermath
The transaction closed in January 2020 after antitrust information requests delayed completion.
Announced transaction value. Approximately $850 million USD or $1.1 billion CAD (2019 announcement; completed January 2020)
2019
Expand for Illinois adult-use legalizationStrategyBackground
Illinois approved adult-use cannabis, creating a market expected by management to be substantially larger than the prior medical market.
Action taken
Cresco planned to increase staffing, production, and retail capacity and used Sunnyside stores in border communities to serve lawful Illinois demand.
Aftermath
Illinois adult-use sales began in January 2020, adding a major recreational channel to Cresco's home-state business.
2018
Pursue a Canadian public listingStrategyBackground
Cresco sought access to public-market capital while expanding across state-regulated United States cannabis markets.
Action taken
It announced and completed a reverse-takeover transaction that resulted in trading on the Canadian Securities Exchange.
Aftermath
Cresco became publicly traded under the symbol CL and also traded in United States over-the-counter markets.
Capital raised in the listing transaction. Approximately $87 million (December 2018)
Recent events
Mindy’s Chocolates become available to Illinois recreational cannabis customers[2]
Reported:
Cresco Labs announced the relaunch and availability of Mindy’s Chef Led Artisanal Edibles Chocolates in Illinois dispensaries, making the line available to recreational customers for the first time. The line includes four flavors, including a limited-time holiday flavor.
Sunnyside opens dispensary in South Beloit, Illinois[3]
Reported:
Cresco Labs announced the opening of its eighth Illinois dispensary, Sunnyside South Beloit, near the Illinois-Wisconsin border. The store was its 18th operating location in the United States.
Cresco Labs signs sale-leaseback agreement for two properties[4]
Reported:
Cresco Labs signed a sale-leaseback agreement for two properties in Ohio and Michigan, which the company said would raise $38 million.
Cresco Labs terminates planned VidaCann acquisition[4]
Reported:
Cresco Labs said it terminated its planned acquisition of VidaCann Ltd, which had been announced in March and was expected to cost $120 million. The company said the decision was intended to save cash.
Cresco Labs and Origin House amend acquisition terms[5]
Cresco Labs and Origin House announced an amendment to their previously announced arrangement under which Cresco Labs would acquire Origin House. The amendment reduces the share consideration; closing remains subject to applicable conditions.
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