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Aphria Inc. APHA

Aphria, which is headquartered in Ontario, produces and sells medicinal and recreational cannabis. The company operates through retail and wholesale channels in Canada and internationally. Aphria is a main distributor of medical cannabis to Germany and has operations in over 10 countries outside of Canada. However, it does not have exposure to the U.S. CBD or THC markets due to the constraints of federal prohibition. It has some U.S. exposure through the acquisition of SweetWater, a craft brewer


NDAQ:APHA - Post by User

Comment by TheGrapeOneon Oct 21, 2020 11:07am
90 Views
Post# 31754793

RE:SP Retail Perspective

RE:SP Retail Perspective Aph will not get a partner with deep pockets anytime soon they had several chances and chased them all away.

CGC has more than a partner with deep pockets,  they have a distribution chain set up for CBD/THC in the US market they have many facilities built and operational in the US.  They have bought a MSO that is already established,  they have storz and bickle they have bio steel they have Martha cbd line they have international CBD line first and free.

there is a reason the stocks are moving like they are at time of posting this APH is down 1% CGC is up 5% again


APH has discount weed on black friday.  neat  but here is the thing you cant run black friday sales through the gov who distributes the product.  IE they will have take the hit at retail level at the outlet stores they own.  

The way it works before you ask confused is APH sells to Gov distribution channels at lets say $1000kg then gov sells to stores at $1200kg who then sell to customer at $1400 kg  if APH drops the price its to the gov. lowering the profits. the Gov dose not have to lower the price to the stores.   Then the store have to agree to drop the price and reduce thier profits which they will not be keen to do.  the kicker is one the price is dropped there is no returning back later on. so the loss in income becomes the new norm.

This is why booze dose not have black friday sales where you can get a 24 for $15.

so good luck with that




Sid123 wrote:

I'm watching several retail outlets who will not be carrying Canopy products NU Leaf & Alcanna. CGC share price 4 times higher than APHA which makes zero sense as APHA is leading in almost all categories. Only thing APHA missing is a partner with deep pockets. Good news it will come APHA is an attractive company with established branding after two short years and limited advertising due to HC rules.


im hearing the industry will look to revamp advertising rules for LP's and retailers in the next year which will be welcome to slowly extinguish black market 


One last note I had customer ( black market dealer) come in saying can't compete anymore
i told him we are going to be selling $ 99 oz Bingo on Black Friday 

He turned green and walked out looks like he will have to find new career 



 



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