This Canadian Cannabis Company Experienced a Substantial Climb in Net Revenue and Became a Top 10 LP from the Edible Boom
In the world of cannabis, edibles are having a moment. From beverages to gummies, tinctures to chocolates, mints, and more, new brands are popping up each quarter and edible sales are on the rise.
Licensed Canadian cannabis producer Indiva
, continues to capitalize on the edible market among others, recently claiming a spot as a top 10 licensed producer (LP) by market share and a top 3 LP by units.
Dominating the Edibles Sector with Strategic Partnerships
Indiva has been ranked #1 nationally in the edibles category with 46% market share, and its Bhang Milk Chocolate was ranked the #1 cannabis product at the Ontario Cannabis Store (OCS).
Gummies and chocolates currently make up more than 90% of edibles in the Canadian market. So Indiva’s choice to partner with privately-held Wana Brands and Bhang® BHNG, OTCQB:
Wana was named Cannabis Manufacturer of the Year at the 4th annual Colorado Manufacturer Awards in 2019 and has received the National Cannabis Industry Association’s Excellence in Innovation Award.
In addition to its first place ranking at OCS, Bhang won 1st place in the Best Cannabis-Infused Chocolate Category at WeedCon 2019, and most recently in September, Bhang won its 10th Cannabis Cup in High Times’ NorCal People’s Choice Cup.
Growing Demand, Growing Revenue, and Wana’s Newest Product
Indiva is fairly new on the market, acquiring its 40,000-square-foot production facility in February 2019. But the company has seen big growth in revenue over the past 2 years and believes its gross margins will continue to rise due to lower distillate costs.
Despite its single facility, Indiva is proud to continue its growth organically without any mergers or major acquisitions. The company attributes much of its success to its niche leadership in the edibles sector, as currently, 90% of Indiva’s revenue comes from edibles.
The Ottawa, Ontario-headquartered company reported net revenue of $9.1 million Canadian dollars ($7.2 million) for the 2nd quarter, up 209% year-over-year and 46% over the previous quarter.
As preferences tend not to differ much between neighboring countries Canada and the U.S., Indiva predicts the Canadian edibles market share to mirror mature markets in the U.S. In fact, they already are.
More and more people are relying on edibles not only for health reasons but for taste, flavor and ease of use.
Since the pandemic began, people around the globe have turned away from smoking, be it to preserve lung health or to avoid possible exposure. There’s also been a great deal of research and development dedicated to targeting specific indications with the use of edibles. Some types of treatments are more difficult to control with flower and vapes, although both have been notably used for pain relief.
One of Wana Brands’ newest products, for example, is aimed to assist with sleep health. Wana Optimals Fast Asleep intention is to address the root causes of sleeplessness, such as stress and physical discomfort, rather than simply inducing drowsiness, as with most sleep medicines. The majority of other products on the market are designed to knock a person out to sleep, while the Fast Asleep formulation is designed to get better sleep, faster.
The Canadian cannabis industry is certainly experiencing rapid growth. Ontario alone has been recorded opening 30 stores per week hitting 1,173 stores in October 2021. Predictably with this market growth, the competition is expanding as well, making it increasingly difficult to acquire licenses.
However, Indiva isn’t concerned with competition or licenses. The company’s flower, which typically takes up the majority of space and resources for most facilities, is sourced from across the country leaving its 1 facility currently operating at just 50% capacity.
Regarding competitors, Indiva invests in developing exceptional relationships with its wholesalers and therefore welcomes competitors. Stable companies often feel that diversity keeps the market healthy by balancing supply and demand. Indiva is also confident in its candidacy to outpace competitors as edibles continue to outperform in Canada.
“The cannabis market is at $4 billion annualized but could easily double or triple with a potential to be $8 to $12 billion,” Indiva CEO Niel Marotta said, following up with “Indiva’s unique advantage of being the niche leader in the edible sector of the Canadian cannabis industry, makes us well poised to grow with the market and stay ahead of our competitors.”
“This is for many reasons, one being that we don’t take a transactional approach. We’re a relationship-based company, who’s proud to have grown organically and will continue to do so. We’ll keep innovating, releasing new products, and leveraging our distribution with new categories or licensing.”
Visit www.indiva.com for more information.
https://www.benzinga.com/markets/cannabis/21/10/23390745/this-canadian-cannabis-company-experienced-a-substantial-climb-in-net-revenue-and-became-a-top-1