High Tide Readying for US Cannabis Expansion
Albertan Retailer Buying American eCommerce Companies Ahead of Planned US Cannabis Expansion – LPC
High Tide, a Calgary-based cannabis retailer, is getting ready for US cannabis expansion, when cannabis becomes legalized in the United States. According to MJBizDaily, it recently spent $42.5 million on ecommerce assets in the US. These include online cannabis retailer Smoke Cartel, a majority ownership in FabCBD, and accessories retailers Daily High Club and DankStop. High Tide CEO Raj Grover said they also have options to buy a bricks-and-mortar operation.
“If cannabis is legalized or decriminalized at the federal level, we’ll be in a position to enter the U.S. market very quickly through both our bricks-and-mortar and our online businesses,” Grover told MJBizDaily in an interview. “That is why we’re setting up a robust online portfolio right now that’s established and ready to make online cannabis sales when US legalization takes place.”
However, Grover is less optimistic than he was about US cannabis legalization coming any time soon.
“Initially, we thought the odds were very good,” Grover said. “But as we see the political theatre unfold, the current polarized nature of US politics doesn’t give me enough assurance that everything is heading in the right direction.”
Initially, many thought that with Joe Biden entering the White House, cannabis legalization in the US would be a slam dunk. But Biden has been cagey about his cannabis policy, and has even been viewed as stigmatizing cannabis use. At this point, many believe that cannabis decriminalization is more likely than full cannabis legalization.
However, Grover said, that doesn’t affect High Tide’s positioning for future US cannabis expansion.
“We think that decriminalization or full federal legalization could still be a couple of years away, but that doesn’t hamper our plans today,” Grover said.
High Tide Not the Only Canadian Player Eyeing US Cannabis Expansion – LPC
High Tide is not the only Canadian retailer eyeing US cannabis expansion. Earlier this year, Fire & Flower started to expand its cannabis empire south of the border, striking a licensing deal with American Acres Managers. The deal includes an option to purchase the business when cannabis is legalized in the US.
The interesting thing with Fire & Flower is that it has already experimented with selling cannabis in Circle K convenience stores in Alberta. This could be a model of US cannabis expansion since the Canadian-owned convenience store chain has locations in the US.
Other Canadian cannabis companies breaking into the American market include Canopy Growth and Houseplant, Seth Rogen’s cannabis company. Houseplant recently announced it’s leaving Canada and splitting with Canopy Growth to make it an entirely US brand.
Under High Tide’s conservative plan for US cannabis expansion, the company only needs access to 25 per cent of the US market, or about 80 million people. That’s double the whole population of Canada. It is already gathering potential customers through its Daily High Club, a non-retail lifestyle brand that can morph into an online retail cannabis customer base.
“We already have 15,000 monthly subscribers in Daily High Club, which has been growing at 50 per cent annualized, or approximately 4 per cent to 5 per cent per month,” Grover said. “Let’s say only 25 per cent of US states actually allow online cannabis sales. We feel that we can turn those into cannabis subscription boxes upon federal legalization, depending on which states allow online sales and which states don’t.”
It’s another sign that US cannabis expansion is likely on the minds of many Canadian cannabis companies.
Read the Full Interview at MJBizDaily Here.
ADD YOUR STORY HERE
Do you have a business in Canada’s legal cannabis market? Are you a craft cannabis producer or own a chain or independent cannabis retail store? Let’s tell your story here! A news article and your approved listing page make great ways to connect your brand with a qualified audience looking for what you are offering. Learn more about submitting your article to LPC.
