Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors

Cannabis Retailers: The Dawn of a New Industry

02/04/2019 | 12:26pm EDT

VANCOUVER, British Columbia, Feb. 04, 2019 (GLOBE NEWSWIRE) -- Mugglehead believes that Canadian cannabis retailers will be the next big focus for the industry.

The current marijuana retail industry is practically non-existent today. Not only that, the shopping experience from retailer to retailer, even amongst the same company brands, are incredibly inconsistent.

That’s because Cannabis branding in Canada, like tobacco, is extremely regulated. More importantly, it’s extremely restrictive.

How can any marijuana retailer leverage brand and shopping experience – the way Starbucks has with coffee – when there are so many restrictions on branding and packaging?

Though the cannabis industry is arguably still in a stage of infancy, the coming months will likely be foundational in the creation of Canada’s legacy cannabis brands, as Canada’s marijuana retail sector begins to experience intensifying levels of competition.

Today, Mugglehead looks at a handful of Canadian LPs positioned to capitalize on this influential stage of the marijuana industry.

Westleaf: Conquering Canadian Cannabis Retail

In just a manner of weeks, Westleaf (TSXV: WL), a vertically integrated cannabis company that is focused on delivering innovative retail experiences and engaging cannabis brands, has emerged as one of the top contenders in Canadian cannabis retailing.

It could be because the company’s management seems to respect an age-old piece of entrepreneurial wisdom: conquer your home market before going overseas.

And conquer they may.

Westleaf’s recently closed acquisition of Canndara Canada Inc. increases Westleaf’s planned retail store count from 20-30 to roughly 50 fully operational retail locations by the end of 2020, subject to provincial and municipal licensing and regulations. This positions Westleaf as one of the largest premium cannabis retailers in all of Western Canada.

Westleaf’s innovative retailing strategy could solidify Westleaf amongst some of Canada’s biggest, most well-established marijuana companies.

Jason Childs, an associate professor of economics at the University of Regina, said partnerships and takeovers can lead to a concentration in the market which could then become an oligopoly.

“You’re not just seeing one big owner, we’re seeing Westleaf, we’re seeing Canopy through Tweed, we’re going to see Aphria and Aurora, as well,” he said.

As markets mature, it’s only natural that oligopolies form.

Needless to say, the companies that make up these oligopolies historically enjoy tremendous returns, since these firms control the lion’s share of the market.

By taking a closer look at the brands behind Canada’s leading cannabis producers, we can get a better understanding of which firms will rise to the top of Canada’s seemingly inevitable marijuana oligopoly.

Westleaf, A Cannabis Retail Leader in the Making

In addition to Westleaf’s medical brand, Westleaf is now heavily focused on launching Prairie Records – its retail strategy.

Prairie Records leverages the instinctual tie between cannabis and music to create an unprecedented cannabis purchase experience – a new take on cannabis retail that could draw the attention of a lot of the major LP’s and help with branding across the board.

But instead of albums with songs, each record in the store represents a strain of cannabis that describes precisely the brand and cannabis you’re buying: the strength of the product, the experience, the flavours – even a curated playlist to enhance your experience.

The “records” provide an accessible, tactile medium that puts consumers in control of their purchase.

While Prairie Records seems to target Western culture as a whole, Loon, Westleaf’s health and wellness cannabis brand, appears to target Canadian culture specifically.

Westleaf Targets Western Canada

Using vivid imagery of farm land, lakes, and the common loon (Ontario’s provincial bird, for those unawares), the Loon brand capitalizes upon the serene beauty of rural Alberta and Saskatchewan.

While Westleaf looks to create its own unique branded products, some of Canada’s biggest marijuana producers are using their economic clout to acquire, or otherwise leverage, the brand equity of already established brands.


Much like Westleaf, Tilray Inc. (NASDAQ: TLRY) is actively hacking modern culture.

This intention is no clearer than in Tilray’s recent revenue-sharing agreement with Authentic Brands Group (ABG), an owner of a portfolio of global lifestyle brands that includes names like Marilyn Monroe, Michael Jackson, Nautica, and Juicy Couture.

Via CTV News:

[Tilray] announced Tuesday the long-term revenue sharing agreement with Authentic Brands Group, to whom Tilray will initially pay US$100 million in cash and stock, or up to $250 million depending on certain milestones.

Tilray will receive up to 49 per cent of the net revenue from these products bearing names from ABG’s portfolio of more than 50 brands, with a guaranteed minimum payment of up to US$10 million annually for 10 years.

“We believe that consumers will be much more likely to try a cannabis or CBD product if it’s branded with a brand that they already know and trust,” said Tilray’s chief executive Brendan Kennedy.

Under the deal, Tilray would be the preferred supplier of active cannabinoid ingredients, such as CBD and THC, for ABG’s cannabis products.

In addition to its new partnership with ABG, Tilray is introducing its own portfolio of cannabis brands under its subsidiary, High Park Brands. Some of High Park Brands concepts include Irisa, a distinctly feminine, astrologically influenced product line and Yukon Rove, a brand that embraces outback grit and down-to-earth determination.


Aphria Inc. (NYSE: APHA) (TSX: APHA) maintains a stake in the cannabis retail sector through its previous investment of $10 million into independent cannabis retailer Fire & Flower.

Aside from this, Aphria currently has five cannabis brands under its belt. Examples include, Solei, a thoughtful, care-free summery brand, Broken Coast, a masculine seaworthy brand, and Good Supply, a rough-around-the-edges, unapologetically vulgar brand.

Currently, Aphria is fighting an unsolicited hostile bid by Green Growth Brands Inc., a U.S.-based cannabis company with a strong focus on retail brands.

The Green Organic Dutchman

Once touted as the world’s largest marijuana IPO, The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (OTC: TGODF) is a Canadian organic marijuana producer launching its first product line in Spring 2019.

Although The Green Organic Dutchman does not have a significant retail presence as of yet, it holds a unique position as one of the world’s few large-scale, premium organic cannabis brands.

Recently, TGOD increased its forecast of domestic production capacity. As a result of their learnings, the engineering design improvements enable optimized facility throughput which, together with organic specific modifications, provide a forecasted domestic productive capacity increase from 156,000 kg to 202,500 kgs.

Westleaf’s Unrivaled Opportunity to Lead Canadian Cannabis Retail

While Tilray, Aphria, and the Green Organic Dutchman are already some of the biggest marijuana companies, branding remains a key component and all are focused on developing compelling retail brands.

That’s why Mugglehead believes cannabis retailers are the next big boon for the cannabis industry. That’s because in the absence of an online retail channel, consumers require a space to discover new products.

A place that they enjoy coming back to, again and again.

By using innovative retail strategies to foster a more personal connection with their customers, cannabis retail brands like Westleaf’s Prairie Records have the opportunity to attract cannabis consumers from all walks of life—and keep them coming back.

The dawn of the cannabis retailers is here.

The original post can be found here: https://mugglehead.com/the-opportunity-that-canadas-biggest-cannabis-producers-are-missing/

Directors of Mugglehead own shares of Westleaf (WL) and The Green Organic Dutchman (TGOD) at the time of this writing.

About Mugglehead

Mugglehead.com is a digital publisher dedicated to cannabis news, investments, culture, and science, owned by Mugglehead Media Corp. We publish original content, including video, interviews and articles. Because many of the companies and trends we cover are related to investments and stocks within the cannabis industry, please review our disclaimer and forward-looking statements below.

Original content created by Mugglehead Media Corp. © 2019 is protected by copyright laws.

We have lots in store for 2019 so be sure to check us out!

Contact us at: muggle (at) mugglehead.com

Visit us at https://mugglehead.com daily for all things cannabis-related.

Facebook: https://www.facebook.com/muggleheadmedia

Twitter: https://twitter.com/muggleheadmedia

Disclaimer and Forward-Looking Statements

Mugglehead Media Corp. and Mugglehead.com (collectively, Mugglehead) is a news and media publisher dedicated to cannabis. It is not registered as an investment adviser, broker-dealer or other financial or securities professional with any financial or securities regulatory authority. You understand that no content published by Mugglehead constitutes a recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Mugglehead does not render general or specific investment advice and does not endorse or recommend the business, products, services or securities of any industry or company mentioned on this Site.

It is not intended to provide tax, legal, insurance or investment advice, and nothing on the Site should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation to buy or sell any security. None of the content we publish is provided with a view to inviting, inducing or encouraging any person to make any kind of investment decision. You are solely responsible for determining whether any investment, security or strategy, or any other product or service, is appropriate or suitable for you based on your investment objectives and personal and financial situation. You should consult an attorney or tax professional regarding your specific legal or tax situation. You should also consult a licensed professional, such as a financial advisor or broker-dealer, when dealing in any securities or making any investment decisions. We do not guarantee that any of the companies mentioned on Mugglehead.com or any of our newsletters or content will perform as we expect, and any comparisons we have made to other companies may not be valid or come into effect.

This news release is not an offer to sell or a solicitation of an offer to buy any securities or commodities. To the extent that anything in this press release may be deemed to be investment advice or a recommendation in connection with a particular company or security, such information is impersonal and is not tailored to the needs of any specific person.

You understand that an investment in any security is subject to a number of risks, and that discussions of any security published on the Site will not contain a list or description of relevant risk factors. In addition, some of the securities about which content is published by us have a low market capitalization, insufficient public float and/or are thinly traded. Such securities are subject to more risk than securities of larger companies, including greater volatility, lower liquidity and less publicly available information. Content we publish may have an effect on the price of such securities.

From time to time, Mugglehead (on behalf of itself and any partner, director, officer or insider of Mugglehead) may have a financial or other interest in the party or parties featured on the Site, within the meaning of National Instrument 31-103 - Registration Requirements, Exemptions, and Ongoing Registrant Obligations, published by the Canadian Securities Administrators, as a result of ownership of securities in, compensation received or receivable from or other financial arrangement with such party or parties featured in this press release. We will disclose if we have a position in any such party or parties, as at the date of publication of this press release; however, we may not update this disclosure after such date.

In addition to historical information, this press release may contain forward-looking statements, including statements with respect to third parties regarding product plans, future growth, market opportunities, strategic initiatives, industry positioning, customer acquisition, the amount of recurring revenue and revenue growth. In addition, when used on the Site, the words ''will,'' ''expects,'' ''could,'' ''would,'' ''may,'' ''anticipates,'' ''intends,'' ''plans,'' ''believes,'' ''seeks,'' ''targets,'' ''estimates,'' ''looks for,'' ''looks to,'' ''continues'' and similar expressions, as well as statements regarding a third party's focus for the future, are generally intended to identify forward-looking statements. Each of the forward-looking statements we make in this press release involves risks and uncertainties that may cause actual results to differ materially from these forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, those disclosed by the companies featured in this release in their public securities filings. You should carefully review the risks described therein. You should not place undue reliance on these forward-looking statements, which speak only as of the date such statement was published. Mugglehead undertakes no obligation to publicly release any updates or revisions to the forward-looking statements or reflect events or circumstances after the date of their publication, except as required by law.

From time to time, reference may be made in this press release to prior articles or opinions we have published. These references may be selective, may reference only a portion of an article or opinion, and are likely not to be current. As market information changes continuously, previously published information and data, and any references thereto, may not be current and should not be relied upon.

If you ever have any questions or concerns about our business or publications, we encourage you to contact us.


© GlobeNewswire 2019
Latest news "Companies"
05:28aS S LAZIO S P A  : Luiz Felipe in Serie A squad registration list
05:26aCBD TONER : An Easy Way to Add CBD Skincare Every Night...
05:20aSATURDAY READ : Square Mile's largest employers embrace hybrid working
05:08aUPDATED : In Photos: JD Signs Partnership with Global Brands at Hainan Expo
05:00aGARRETT MOTION  : Most Advanced Two-Stage VNT Tech Boosts New, High-End 3.0-liter Diesel Engine
05:00aLAANET : World War II taught Estonia the importance of having allies
04:55aASTRAZENECA  : Sri Lanka approves Pfizer COVID vaccine for emergency use
04:27aSonangol said to sell Olombendo; ample supply weighs
04:25aSouth African rand hits 16-month high before Moody's review
04:12aTESLA  : Set To Lose Major Revenue Source That's Been Key To Profits
Latest news "Companies"