Struggling producer Organigram Holdings Inc. (NASDAQ and TSX: OGI) is hoping Canadians are hungry for more weed-infused chocolate.
The New Brunswick-based company said Tuesday that it’s about to launch Trailblazer Snax, the country’s largest cannabis-infused chocolate bar — which will also be value-priced.
In its fiscal third quarter report, Organigram blamed a 27 per cent drop in sales on delays in introducing its value products, a market segment that continues to grow as Canadians grapple with a shrinking economy.
Read more: Organigram blames weak sales on delayed value product launch
The 42-gram bar contains 10 milligrams of THC — the highest legal amount to sell in a single edible serving in Canada — and available in mint and mocha flavours. By using quality cocoa butter, all-natural flavors and pure distillate, the company says the product will appeal to chocolate lovers while remaining at an affordable price for an edible option.
The first shipments of the new product have headed to market and will be available through retailers in all provinces except Quebec in the coming weeks, according to a statement.
“At Organigram, it has always been our intention to not only be a leader in the cannabis marketplace but to also continue to disrupt it, with new products, new technology and new ways of thinking,” CEO Greg Engel said in the statement. “Offering our customers exceptional chocolate, exceptional flavour and exceptional value is our goal.”
The company said it made a $15 million investment in a high-capacity, automated production line to produce a number of chocolate edible products, which helped bring Edison Bytes and chocolate truffles to market earlier this year.
In April, cannabis edibles represented 12 per cent of the Canadian market, with 915,714 packaged units sold, according to a Health Canada market report.
While those figures seem sizable, Canada’s leading extractors have seen major declines in revenues in 2020, which they have attributed to a slow rollout of new cannabis 2.0 products by larger weed firms, alongside prevailing economic stressors.
Read more: MediPharm watches revenues fall 65%
Read more: A rough quarter for leading extractor Valens
Organigram shares rose 2 per cent Tuesday on the Toronto Stock Exchange.
Top image via Deposit Photos