Large Canadian cannabis producers are turning to small-batch cultivators to tap into a growing consumer appetite for higher-quality “premium” marijuana products.
To that end, some large licensed producers have entered into partnerships with craft companies. Others have bought them outright, and some are buying craft cannabis in the wholesale market for resale at the retail level.
British Columbia’s cannabis distributor posted net income of 13.6 million Canadian dollars ($10.8 million) for the fiscal year ended March 31, 2021, rebounding from a loss of CA$5.3 million in the previous year thanks to a surge in adult-use sales.
The newly released annual report from the BC Liquor Distribution Branch (LDB) shows that adult-use cannabis sales jumped 140% in the province.
Kelowna, British Columbia-based marijuana extractor The Valens Co. announced a 54.3 million Canadian dollar ($43 million) deal to acquire premium flower company Citizen Stash Cannabis Corp.
The acquisition is expected to be accretive to Valens in 2021 and 2022 before synergies, and will provide Valens with strategic, asset-light expansion into flower and pre-rolls.
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