VANCOUVER, British Columbia, April 01, 2019 (GLOBE NEWSWIRE) -- Cannabis retail has rapidly emerged as one of the most important components of the marijuana value chain. Not only do retail gatekeepers control one of the most intimate parts of the cannabis purchasing experience, but they do so at a premium — making cannabis retail a likely determinant of any marijuana company’s staying power.
In this article, we explore some of the leading cannabis retail brands in Canada.
Westleaf
Westleaf Inc. (TSX-V: WL) (OTCQB: WSLFF) is a vertically integrated Canadian cannabis company focused on innovative retail experiences and engaging cannabis brands as well as cultivation, production and extraction of cannabis products.
Most recently, Westleaf announced that it expects two new Saskatchewan Prairie Records retail stores to be open by mid-April 2019. The company’s first Saskatchewan Prairie Records location opened in Warman just last February.
Prairie Records, Westleaf’s flagship retail concept, intends to create an unparalleled cannabis purchasing experience through tactile in-store features and product offerings that celebrate the inherent relationship between music and cannabis.
With plans to launch 50 premium retail stores across Western Canada by the end of 2020, Westleaf is rapidly becoming one of Western Canada’s largest premium cannabis retailers.
But as a vertically integrated Canadian cannabis company, Westleaf offers more than just a distinctive premium retail brand. The company recently tapped Xabis — a world leader in the design, construction, and management of cannabis extraction and manufacturing facilities — for the construction of its recently rebranded The Plant by Westleaf Labsextraction facility.
Located in Calgary, Alberta, The Plant provides Westleaf with 60,000 sq. ft. of space for extraction, R&D, and order fulfillment. With Phase 1A of the facility’s construction well underway, Westleaf plans to have an initial processing capability of 7,812 kg of cannabis per year. The company expects The Plant to be completed by Summer 2019.
Aurora Cannabis
Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB), one of the world’s largest and leading cannabis companies, recently provided an update on its strategic investment in Choom Holdings Inc. (CSE: CHOO)—an emerging consumer cannabis company that has secured one of the largest retail networks in Canada.
Since Aurora’s $27 million investments in Choom (which included a private placement in June 2018 and a convertible debenture offering in November 2018), Choom has secured 22 additional cannabis retail opportunities in Alberta and British Columbia. And with the acquisition of Clarity Cannabis Retail Stores, Choom has gained another 30 potential retail locations across Alberta—3 of which have already been licensed by the Alberta Gaming, Liquor & Cannabis Commission (AGLC).
To date, Choom has completed the buildouts of 17 retail locations in Western Canada with 8 other retail locations currently under construction. Despite Choom’s vast potential retail reach, Aurora notes that all of Choom’s current retail opportunities are subject to provincial regulatory approvals.
Cronos Group
Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) is a globally diversified and vertically integrated cannabis company with a presence across five continents.
Though lauded for attracting a C$2.4 billion equity investment from Altria Group, Inc., Cronos recently reported a net loss of $11.6 million during the three months ended December 31, 2018, a figure that pales in comparison to 2017’s profit of $2.1 million.
Disappointing year-end financials aside, we expect that Altria’s investment will help Cronos Group accelerate the launch of its Medmen Canada retail brand—a missing link in Cronos Group’s vertically integrated value chain. Medmen Canada, a 50/50 joint venture between Cronos Group and Medmen, is still in the process of reviewing Canada’s regulatory retail landscape.
Canopy Growth
Canopy Growth Corp. (NYSE: CGC) (TSX: WEED), a world leading diversified cannabis and hemp company, operates two retail brands throughout Canada, Tokyo Smoke and Tweed.
Canopy Growth currently has 4 Tokyo Smoke stores open in Manitoba, 1 Tweed store in Saskatchewan, and 6 Tweed stores in Newfoundland. Though Canopy currently has a limited retail presence in Western Canada, they do have plans to open Tokyo Smoke and Tweed locations in Alberta.
In recent news, Canopy Growth partnered with Seth Rogen and Evan Goldberg’s Canadian cannabis brand, Houseplant. Under the terms of the agreement, Canopy both acquired 25 percent of Houseplant and contributed working capital. Houseplant’s first product, a Sativa strain, is expected to hit B.C. retail shelves sometime in April 2019.
Tilray
Tilray Inc. (NASDAQ: TLRY) is a global pioneer in the research, cultivation, production and distribution of cannabis and cannabinoids.
Though one of the biggest cannabis companies in the world, Tilray has yet to incubate or acquire their own retail cannabis brand. Instead, the company seems to prefer building out individual cannabis brands (ie. High Park Holdings), which they can then distribute through already established retailers.
Although this strategy has certainly worked for Tilray in the past (they are, after all, a leader in the Canadian medical marijuana market), it may pose challenges for Tilray’s long-term growth prospects, seeing as how retail margins will likely become increasingly valuable as the marijuana market matures.
Cannabis Retail Brands Maintain Value
Though licensed producers face their fair share of regulatory hurdles when attempting to integrate cannabis retailing into their operations, cannabis companies cannot realize the full potential of the marijuana value chain without at least some presence in retail. As such, marijuana companies that have yet to invest in establishing their own in-house retail brands will likely be pressured to acquire marijuana retailers further down the road. Considering the potential for retail consolidation in the marijuana sector’s later years, premium retailers like Westleaf are likely to maintain significant exposure even as Canada’s cannabis narrative matures.
The original post can be found here: https://mugglehead.com/top-5-cannabis-retail-brands-in-canada/
Disclosure: Directors of Mugglehead own shares of Westleaf Inc. and other marijuana stocks not mentioned in this release and we have been compensated by Westleaf for news coverage.
About Mugglehead
Mugglehead.com is a digital publisher dedicated to cannabis news, investments, culture, and science, owned by Mugglehead Media Corp. We publish original content, including video, interviews and articles. Because many of the companies and trends we cover are related to investments and stocks within the cannabis industry, please review our disclaimer and forward-looking statements below.
Original content created by Mugglehead Media Corp. © 2019 is protected by copyright laws.
We have lots in store for 2019 so be sure to check us out!
Visit us at https://mugglehead.com daily for all things cannabis-related.
Facebook: https://www.facebook.com/muggleheadmedia
Twitter: https://twitter.com/muggleheadmedia
Disclaimer and Forward-Looking Statements
Mugglehead Media Corp. and Mugglehead.com (collectively, Mugglehead) is a news and media publisher dedicated to cannabis. It is not registered as an investment adviser, broker-dealer or other financial or securities professional with any financial or securities regulatory authority. You understand that no content published by Mugglehead constitutes a recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Mugglehead does not render general or specific investment advice and does not endorse or recommend the business, products, services or securities of any industry or company mentioned on this Site.
It is not intended to provide tax, legal, insurance or investment advice, and nothing on in this release should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation to buy or sell any security. None of the content we publish is provided with a view to inviting, inducing or encouraging any person to make any kind of investment decision. You are solely responsible for determining whether any investment, security or strategy, or any other product or service, is appropriate or suitable for you based on your investment objectives and personal and financial situation. You should consult an attorney or tax professional regarding your specific legal or tax situation. You should also consult a licensed professional, such as a financial advisor or broker-dealer, when dealing in any securities or making any investment decisions. We do not guarantee that any of the companies mentioned on Mugglehead.com or any of our newsletters or content will perform as we expect, and any comparisons we have made to other companies may not be valid or come into effect.
This news release is not an offer to sell or a solicitation of an offer to buy any securities or commodities. To the extent that anything in this press release may be deemed to be investment advice or a recommendation in connection with a particular company or security, such information is impersonal and is not tailored to the needs of any specific person.
You understand that an investment in any security is subject to a number of risks, and that discussions of any security published on the Site will not contain a list or description of relevant risk factors. In addition, some of the securities about which content is published by us have a low market capitalization, insufficient public float and/or are thinly traded. Such securities are subject to more risk than securities of larger companies, including greater volatility, lower liquidity and less publicly available information. Content we publish may have an effect on the price of such securities.
From time to time, Mugglehead (on behalf of itself and any partner, director, officer or insider of Mugglehead) may have a financial or other interest in the party or parties featured in this release, within the meaning of National Instrument 31-103 - Registration Requirements, Exemptions, and Ongoing Registrant Obligations, published by the Canadian Securities Administrators, as a result of ownership of securities in, compensation received or receivable from or other financial arrangement with such party or parties featured in this press release. We will disclose if we have a position in any such party or parties, as at the date of publication of this press release; however, we may not update this disclosure after such date. We have been compensated CAD$10,500 per month for 12 months (total $126,000) by Westleaf Inc. for news coverage and our directors own shares of Westleaf Inc.
In addition to historical information, this press release may contain forward-looking statements, including statements with respect to third parties regarding product plans, future growth, market opportunities, strategic initiatives, industry positioning, customer acquisition, the amount of recurring revenue and revenue growth. In addition, when used on the Site, the words ''will,'' ''expects,'' ''could,'' ''would,'' ''may,'' ''anticipates,'' ''intends,'' ''plans,'' ''believes,'' ''seeks,'' ''targets,'' ''estimates,'' ''looks for,'' ''looks to,'' ''continues'' and similar expressions, as well as statements regarding a third party's focus for the future, are generally intended to identify forward-looking statements. Each of the forward-looking statements we make in this press release involves risks and uncertainties that may cause actual results to differ materially from these forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, those disclosed by the companies featured in this release in their public securities filings. You should carefully review the risks described therein. You should not place undue reliance on these forward-looking statements, which speak only as of the date such statement was published. Mugglehead undertakes no obligation to publicly release any updates or revisions to the forward-looking statements or reflect events or circumstances after the date of their publication, except as required by law.
From time to time, reference may be made in this press release to prior articles or opinions we have published. These references may be selective, may reference only a portion of an article or opinion, and are likely not to be current. As market information changes continuously, previously published information and data, and any references thereto, may not be current and should not be relied upon.
If you ever have any questions or concerns about our business or publications, we encourage you to contact us.