The scores of new entrants to the cannabis market combined with plunging prices have resulted in an "unsustainable" situation,
"We have definitely protected our margins on the way down and I think, as a licensed producer, we have more room than a lot of our competitors do to be able to take from our pricing," he said on a call with analysts.
"The market is getting very diluted and we are going to ramp up our innovation in a big way to fight that."
The country's cannabis producers have a glut of product they are anxious to move as
Cannabis companies, which have endured lengthy retail lockdown measures and are already limited in how they market their products, have spent much of the health crisis slashing prices and looking at their offerings with a critical eye.
Along with several rivals and provincial pot distributors, including the
But it still intends to double down on product innovation in hopes of snatching up as much market share as it can.
"Can we do it profitably? Yes, we think we can," said MacNeil.
"We have further costs we can take out of this business to make sure we can do this and grow our gross margins. It is going to be a bit of a bumpy ride over the next couple quarters but certainly, we are in the best position to be able to weather it."
Weathering it will mean winning back some market share, which chief executive
"Some of it was self-inflicted," he said, on the same call as MacNeil.
"The easiest thing is to drop price and drop share, but we are here to build something for the long term."
It will also mean continuing to push profits up.
The company, which reports its earnings in
Those numbers pushed
About
The quarter encompassed a period when
In quarterly filings,
In the coming months, Simon teased that the company will take a bigger position in the hemp market and will look to address demand for drinks and other products laden with cannabidiol, a compound found in cannabis and hemp that doesn't produce a high but is believed to relax consumers.
It will also zero in on its recent acquisition of
To reflect the breadth of these ventures and its transition from Canadian licensed cannabis producer to a global consumer packaged goods company, the company will begin using
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