Cannabis retailer High Tide announces white-label deals for shatter, gummies

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Major Canadian cannabis retailer High Tide announced white-label partnerships with two different companies to produce cannabis products under High Tide’s Cabana Cannabis Co. house brand.

Under one agreement, federally licensed producer Heritage Cannabis will manufacture shatter for Calgary, Alberta-based High Tide, according to a news release issued Monday.

Heritage closed its acquisition of cannabis concentrates specialist Premium 5 in January.

High Tide’s other white-label deal involves privately held Loosh Brands, which will manufacture THC gummies.

Products from both white-label agreements will be distributed in Manitoba, Ontario and Saskatchewan “with the potential to expand into additional Canadian jurisdictions in due course.”

“We have taken a measured approach in launching our own house-branded products given the oversupply of branded biomass in the Canadian market,” High Tide CEO Raj Grover said in a statement.

“That’s why we are moving cautiously by making an entry into the 2.0 category which is much less crowded.”

Grover added that High Tide is “in negotiations with Canadian licensed producers to bring select products from the FabCBD catalogue into our store network.”

High Tide acquired FabCBD, a Milwaukee-based CBD e-commerce marketplace, in May.

Fire & Flower, another leading Canadian cannabis chain, recently signed white-label partnerships for CBD products.

High Tide currently lists 93 retail locations in four Canadian provinces and has ambitions to enter the U.S. cannabis retail market in the event of federal cannabis legalization.

Its shares trade as HITI on the Nasdaq exchange and the TSX Venture Exchange.