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Friday, May 20, 2022
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Business

High Tide subsidiary launches discount CBD subscription program in US

The firm says revenues from recurring subscriptions are more reliable than one-time purchases

High Tide subsidiary launches discount CBD subscription program in US
Image via High Tide

A CBD-focused subsidiary of leading Canadian cannabis retailer High Tide Inc. (Nasdaq: HITI) (TSXV: HITI) (FSE: 2LYA) has launched a subscription discount program for its American customers.

On Monday, the company said that its FAB CBD customers can now join its Subscribe-and-Save discount program, and customize orders to get CBD products delivered within a 2–10 week range depending on their needs.

Subscribers will receive a 20-per-cent discount on all FAB CBD products they buy on the e-commerce platform.

FAB CBD sells oils, gummies, topicals, pet treats and other food supplements.

The company says customers in an auto-renewing subscription service boosts its lifetime value per customer, allowing it to collect recurring revenue that’s more predictable than when customers place orders manually.

“High Tide has acquired businesses that have the ability to drive recurring and predictable revenue, which is a long-term focus of our company, and can be evidenced through the rapid growth of our Cabana Club loyalty program as well as subscription services, such as those offered by Daily High Club and NuLeaf Naturals,” CEO Raj Grover said in a statement.

High Tide's FAB CBD launches discount program for US customers2

Screenshot via FAB CBD

He says the announcement is just the beginning of his firm’s drive to bolster cross-platform synergies, and more news is to come, including the upcoming launch of a Blessed CBD Subscribe-and-Save service in the U.K.

“Even in the absence of federal marijuana legalization in the U.S., we are committed to driving revenue growth through initiatives that are already federally permissible, and this is yet another example of that,” he said.

Read more: High Tide buys family-owned Crossroads Cannabis stores for $2.5M

Read more: High Tide posts audited financials after delay

In October, High Tide became North America’s first cannabis discount club retailer. It currently owns 112 retail shops across Ontario, Alberta, Manitoba and Saskatchewan under the Canna Cabana, Meta Cannabis Co. and Meta Cannabis Supply Co. banners.

It serves American customers through its e-commerce platforms under the brands grasscity.com, Smokecartel.com, Dailyhighclub.com, and Dankstop.com. It also has a presence in the hemp-derived CBD industry through Nuleafnaturals.com, FABCBD.com and BlessedCBD.co.uk.

Company stock dipped 4 per cent Monday to $4.96 on the TSX Venture Exchange.

Read more: High Tide switches to discount club model

 

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