Update. Heritage is now #1 seller of concentrates in Canada Heritage Cannabis Holdings Corp. (CSE: CANN) (OTCQX: HERTF) ("Heritage" or the "Company"), is pleased to provide an update on recent activities including sales, market share, growing distribution, and the Company's expansion into the United States.
Year End Financials
Heritage's financial results for the year ended October 31, 2021 will be issued the afternoon of Wednesday May 11, 2022.
During 2021, Heritage and Premium 5 came together and formed a foundation on which a strategically transformed company was built. The management team spent the year positively changing the direction of the company, and change takes time. The results of some of the efforts put in during the year are reflected in the 2021 results with a number of non-cash related items that address the changes made during the year. These items were required in order to set the stage for the new and improved Heritage.
In the coming weeks, Heritage will issue the financial results for the first quarter ended January 31, 2022 and will then be back on schedule. The Company is stronger than ever as shown in the below sales and market performance details.
Recent Sales Activities and Market Performance1
Overall Market Share Rankings and Sales Performance across BC, Alberta, Saskatchewan and Ontario
- Continued sequential sales growth in Q1 with fourth straight quarter of 25%+ growth, based on shipped orders
- Heritage ranks #17 out of 267 Canadian cannabis companies for recreational revenue
- Heritage's top performing brand is RAD which ranks #24 out of over 500 brands across the country, this is without any significant presence in flower and prerolls which hold the largest category share. This is a notable achievement as the RAD brand only came to market in late 2020
- RAD re-launched Radsicles for the summer season and are seeing significant distribution into retail across the country.
- RAD has increased to a 1% share of Canadian recreational market sales, and overall, Heritage has 1.5% of the recreational market
Provincial Market Details
- Heritage has market share of 2.6%, 3.5% and 2.9% in Alberta, British Columbia, and Saskatchewan respectively
- Heritage has the #1 and #4 best selling concentrate SKUs in Alberta
- As of April 2022, in Ontario (Canada's largest market), in the concentrates category excluding hash, Heritage has the #1 and #2 selling concentrates
- Heritage is nearing 1% market share with 24 stock keeping units ("SKUs") available in Q1 through the OCS and an additional 17 recently accepted for a total of 41 available products. This represents a 583% increase from when we initially launched in Ontario in early 2021
- In Manitoba in the second quarter, Heritage saw 43% growth in sales over the first quarter
- Added significant net new SKU listings in Newfoundland and Nova Scotia
- Achieved 22 new SKU listings in Prince Edward Island during the second quarter
National Product Rankings
- Heritage is #1 in Canadian recreational sales of concentrates (up from #2 in Q1) with 15.2% of market share
- #10 in recreational vape sales with 2.7% of the market
- #4 in the oils category with 7.5% market share
Medical
- Additional medical sales are additive with Heritage having products listed on Canada's two largest medical platforms
Industry Growth Rates
According to the latest Headset data Heritage saw 26% growth in sales for the three months ending March 2022, which has Heritage leading growth in sales amongst industry leaders.
| | | | Mar-22 | CAGR | |
| | | Market Cap $mm (May 6) | 3 mth trailing seq growth rate | August 2021 to March 2022 | February 2021 to March 2022 | |
| | Canopy Growth | 3,030 | -20.6% | -3.8% | -3.4% | |
| | Tilray | 3,108 | -19.9% | -5.9% | -3.1% | |
| | Cronos Group | 1,430 | -12.2% | 1.9% | 5.1% | |
| | Sundial | 1,408 | 2.2% | 2.3% | 4.7% | |
| | Aurora Cannabis | 836 | -32.3% | -9.4% | -7.8% | |
| | Organigram | 559 | -4.4% | 3.8% | 8.2% | |
| | Village Farms | 454 | 1.5% | -0.6% | 4.4% | |
| | Valens | 94 | 9.5% | 4.4% | 9.8% | |
| | HEXO | 194 | -14.6% | -3.1% | -1.6% | |
| | Average | 1,235 | -10.1% | -1.1% | 1.8% | |
| | Market | | -4.5% | 0.7% | 2.8% | |
| | Heritage | 40 | 26.1% | 7.3% | 13.1% | |
| | | | | | | |
"Heritage has continued to improve our rankings for product sales across multiple categories provincially across the country. We are ecstatic that our products continue to receive positive reactions and our mission to create forever SKUs is translating into revenue growth," commented David Schwede, CEO of Heritage. "We have proven we can deliver products that are in-demand across the country, but most importantly that have customers coming back for more. We thank all the retailers and budtenders for helping us drive our brands and also want to thank our medical platform partners for trusting us to supply their patients."
Sequential Growth in Provincial Sales Rankings
| Province | Q2 2022 | Q1 2022 |
| Alberta | #12 | #22 |
| British Columbia | #10 | #24 |
| Ontario | #31 | #34 |
| Saskatchewan | #7 | #12 |
Flower and Pre Rolls
In 2021, Heritage launched into pre rolls and flower SKUs in multiple provinces with encouraging provincial orders. Already in a short time-frame, Heritage ranks #25 in pre-rolls and #45 in flower. Heritage continues to add new products including infused pre-rolls and blunts to the flower category, and with growing popularity is expected to take an increasing share of the largest cannabis product segment in the Canadian market.
US Expansion Update
Heritage has made significant progress on the licensed manufacturing facility build-out in support of the relationship with 3Fifteen Primo Cannabis in the state of Missouri. The Heritage team has progressed with establishing the biomass supply chain and is in the process of training staff for the facility. Production is expected to begin in Q3, with revenue from the sale of branded products to medical cannabis consumers in Missouri following shortly after.
About Heritage Cannabis Holdings Corp.
Heritage Cannabis is a leading cannabis company offering innovative products to both the medical and recreational legal cannabis markets in Canada and the U.S., operating under two licensed manufacturing facilities in Canada. The company has an extensive portfolio of high-quality cannabis products under the brands Purefarma, Pura Vida, RAD, Premium 5, feelgood., the CB4 suite of medical products in Canada and ArthroCBD in the U.S.