High Tide Inc. (Nasdaq: HITI) (TSXV: HITI) (FSE: 2LYA) has started selling the first batch of cannabis 2.0 products for a new private label under the brand Cabana Cannabis Co.
On Monday, the leading retailer said it has begun sales of its first Cabana Cannabis Co. branded shatter and THC gummies in the province.
The products were produced under white-label partnerships with vertically-integrated cannabis provider Heritage Cannabis Holdings (CNSX: CANN) for Cabana Cannabis Co. shatter, and the private edibles and finished goods manufacturer Loosh Brands for THC gummies.
The company expects to begin sales of its Cabana Cannabis Co. pre-rolls in Saskatchewan during the week of June 20.
The products are under the terms of a white label partnership with Candre Cannabis Inc. a privately-held licensed producer of craft cannabis, the first SKU to be released will be 1.5-gram premium Apricot Jelly pre-rolls, which will include three pre-rolls, at half a gram each, per package.
High Tide anticipates that it will be able to begin sales of its Cabana Cannabis Co. products in the provinces of Manitoba and Ontario within the coming weeks.
Company stock went down by 7.28 per cent Monday to $2.8 on the Canadian Ventures Exchange.
“The rollout of our Cabana Cannabis Co. product line is a long-awaited and exciting moment for our company,” president Raj Grover said.
Grover says the launch is just the beginning of High Tide’s white label strategy, as it intends to expand its catalogue to other product categories and bring its Cabana Cannabis Co. products to market in other provinces including Manitoba and Ontario.
“While the process of initially bringing our white label products to market took longer than we had hoped, in part due to evolving regulations and requirements between provinces, we expect that the foundation that we have now built will make for a smoother process in the future as we expand our selection of Cabana Cannabis Co. branded products,” he explained.
Grover said the company’s “Cabanalytics” data tells what the best-selling products in Canada are, as well as the information on the hottest trends, insights and consumer preferences.
The company says it is identifying and launching the top-performing SKUs in the market today under the Cabana Cannabis Co. brand.
“Our white-label strategy also represents a meaningful margin-enhancing opportunity, as we intend to grow our white label sales to be approximately 20-30 per cent of our total sales over the long term as we further grow our lineup of Cabana Cannabis Co. products,” Grover said.