Cannabis consumer packaged goods company Slang Worldwide Inc. (CSE: SLNG) is expanding into Canada, starting with British Columbia’s vape market.
The Toronto-headquartered company, which until now operated in U.S. markets like Colorado and Oregon, said Thursday that B.C. has started stocking and selling its O.pen line of vape products.
Slang plans to soon offer more derivative products like live resin to the BC Liquor Distribution Branch, which sells to consumers online and licensed retailers across the province.
“We are pleased to be able to offer our flagship O.pen brand to consumers in British Columbia,” Slang CEO Chris Driessen said in a statement. “Vape carts have been one of the fastest growing categories in cannabis over the past several years. We are excited that Canada is now coming online where we expect to demonstrate brand excellence as we have done in market after market in the U.S.”
O.pen vapes has been the No. 2 best-selling weed brand in the U.S. since 2014, according to data analytics firm BDSA. Vapes made up 15 per cent of August sales in Colorado, BDSA says.
Since vape sales came online in Canada late 2019, Kolab and Redecan vape brands have claimed seven of the top-10 best-selling brands in the B.C. market, according to Headset.
Private producer Redecan sells vape carts in B.C. for as low as $34.15, while Kolab’s — a subsidiary of Auxly Cannabis (CSE: XLY) — cheapest option goes for $48.67. O.pen vape carts are listed at $36.99 on the BC Cannabis Store website.
Vape products on display at a Dutch Love cannabis store in Vancouver, B.C. Photo by Jared Gnam
Chris Damas, managing editor of the BCMI Cannabis Report, expects a coming surge in vape sales as a glut of bulk resin in the Canadian market could push vape cart prices down to $20 by next spring.
Slang says it’s started increasing production with its Canadian partner Agripharm Corp. to expand distribution across the country. Agripharm is one of Canada’s first licensed producers and extractors, operating since 2014.
In 2018, Slang teamed up with Canopy Growth Corp. (TSX: WEED) with both enterprises buying an equity stake in Agripharm.
While Agripharm struck a supply deal with the Ontario Cannabis Store in August, it has yet to sell any of Slang’s products into the province.
Since Driessen was appointed as Slang’s CEO in late July, he’s focused on expanding its eight popular U.S. weed brands into markets like Canada and California.
Read more: Slang Worldwide launches new THC-infused edible line
Slang generates revenues in 12 states from collecting licensing fees, selling product hardware, packaging and flavoring, as well as selling non-cannabis products like its Firefly vape line.
The company has distribution deals with Trulieve Cannabis (CSE: TRUL) and is helping the Florida medical monolith produce edibles, which were recently legalized in the state.
Read more: Trulieve ready to pounce on Florida’s newly approved edibles market
Slang also distributes in Michigan with its business partner Gage Cannabis, a company backed by Canopy Growth founder Bruce Linton. Gage launched an equity financing campaign this month with plans to go public early next year.
Shares of Slang remained flat at $0.19 Thursday on the Canadian Securities Exchange.
Top image via Slang
jared@mugglehead.com
@JaredGnam
