Heritage Cannabis Holdings says 2Q revenues soar 250% quarter-over-quarter; provides operations update
Staying true to its distribution strategy, Heritage reports strong growth in shelf space for its brands, combined with increased product distribution across Canada
Heritage Cannabis Holdings Corp said it has started 3Q in a ‘strong’ position, thanks to a profitable second quarter, when the cannabis company posted a 250% quarter-over-quarter increase in revenue compared to the first quarter of 2021.
Staying true to its distribution strategy, Heritage reports strong growth in shelf space for its brands, combined with increased product distribution across Canada.
As some of Canada’s key markets reach saturation, this milestone was of special importance, as noted in the statement: “Many companies are seeing a contraction in shelf space across the country, given the crowded landscape.”
Heritage also provided a regional breakdown for its Canadian operations.
In Ontario, Canada’s largest and most crowded market, Heritage continues to see growing interest in its premium and affordably priced products, and introduced seven new SKUs at the Ontario Cannabis Store (OCS) in the 3Q. Additionally, in the oils category, the firm saw 40% growth in month-over-month sales, and vape sales grew 164% month-over-month.
Across the country in British Columbia, sales and recurring orders of products across all branded segments continue to accelerate, with a recent 119% quarter-over-quarter growth in vape sales.
Heritage recently launched the RAD Sour Tangie High CBD and 1g Purefarma vapes in the province where 90% of dispensaries sell the company’s RAD products. Heritage has also shipped its first orders of RAD Reefer (flower) and RAD Doobie (pre-rolls) to the province and expects to introduce both products to additional provinces in Q4.
Next door in Alberta, 21 new Heritage SKUs, and RAD vapes have proven to be very popular.
A total of 35 new SKUs were introduced in Saskatchewan. Both the Saskatchewan and Manitoba markets will be a focus for Heritage moving forward as the company sees positive trends in re-order rates and market share wins.
For la belle province, Heritage recently signed a supply agreement with Quebec-based Medicibis to supply their medical platform Mendocannabis.ca with 61 SKUs, which are expected to be a considerable part of the medical cannabis offerings on the platform.
Additionally, Heritage recently participated in a product call with the société québécoise du cannabis (SQDC) and expects to have an initial two to three SKUs in the province following the completion of the product call in 4Q.
Heritage has become the largest provider of concentrate products, in New Brunswick, where the company recently saw 175% growth in sales for the month of June.
While in Newfoundland the canna firm secured shelf space and shipped 27 new SKUs to the province and had re-orders from retailers a week later due to strong sales. Popularity is also growing in Nova Scotia with Heritage brands now capturing 17.8% of the market share in the concentrates category, and RAD alone grew from 7.5% to 11.7% market share in a three-month period.
“The market penetration of Heritage brands and products is accelerating across Canada with the acceptance of new SKUs and multiple re-orders. While we anticipate sales exceeding our historic 2Q results, we are also focused on ensuring we can build a platform that can drive continued growth for our shareholders,” David Schwede, President of Heritage’s recreational cannabis division said in a statement.
He continued: “Our core focus is to create high-quality, appropriately priced products that align with what cannabis consumers want. Our recent performance has reinforced that consumers agree as the strength of the rate of re-orders, and period-over-period growth in sales in the provinces has continued. Our model is set to expand in the US and we expect to accelerate our state-by-state expansion by leveraging our partnership with Merida Capital Holdings to advance the company’s US product distribution strategy and have products on US shelves by the end of the year.”
In August 2021, the Medical Division is launching its first six Opitcann medical “CB4” line of branded products to be sold through medical channel partners and through Heritage Patient Care.
The CB4 products are backed by scientific performance data and include CB4 Relief and CB4 Relief-T oral CBD Softgel capsules formulated with VESIsorb® technology, as well as topical CB4 Relief Deep Rub Gel formulated with enhanced skin permeation technology for maximum absorption through the skin.
“We are excited to introduce the revolutionary CB4 suite of medical products that have been in development for a number of years,” said Umar Syed, President of Heritage’s medical division.
“Opticann’s CB4 products are formulated using proven pharmaceutical technology and are uniquely backed by objective scientific data that speaks to their efficacy for both health care practitioners and patients, addressing large unmet needs in the Canadian medical market,” said.
“These products are well suited for mass medical adoption given their convenient dosing forms (gelcaps, filmstrips, and topical products) with which the medical and pharmacy communities are both familiar and comfortable prescribing and recommending as medical treatments."
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