Cannabis NB, which was the sole retailer of recreational cannabis in New Brunswick up until last week, says it faces some real challenges to shift the illicit customer base to the legal market.
The company recently released its 2024-2026 Strategic Plan, sharing its plans for strategic expansion and objective of shifting existing consumers to safe, legal options.
Cannabis NB captures about 50% of the market but says there is an opportunity to attract customers who place value on product details, information, and traceability. Another opportunity is the non-traditional cannabis consumers who are seeking out cannabis wellness products.
The Strategic Plan outlines five pillars for expansion and opportunity. Highlights are summarized below.
Expand Private Sector Participation
Cannabis NB plans to increase the opportunities for private sector participation in the legal cannabis market in New Brunswick..
Legislation was introduced in New Brunswick in late 2021 to allow new forms of retail in the province, including private retail stores. The provincial government began the vetting process for ten new private cannabis stores following a tender process that ended in October 2022.
Tenders were accepted for Blackville, Bouctouche, Caraquet, Chipman, Dalhousie, Grand Bay-Westfield, Hampton, Saint Andrews, Saint-Quentin, and Salisbury. The first store called Cannabis Xpress opened last week in Grand Bay-Westfield. Cannabis NB hopes to see more stores opening over the course of the summer.
Cannabis NB also plans to pursue all available avenues for providing consumers with safe, responsible on-site consumption opportunities.
Other provinces including British Columbia, Manitoba, and Alberta have also looked at on-site consumption sites.
Investigating Loyalty Program
Cannabis NB plans to continue to evolve the customer experience. This includes investigating implementing a loyalty program and establishing a channel framework for corporate retail channel, private retail channel, farmgate, and on-site consumption.
Sales Down 2.5% in Q4
Cannabis NB recently released its results for the fourth quarter ended April 2, 2023. Total product sales for the quarter were $20.5 million, a decrease of 2.5% compared to the same period last year. Net income for the quarter was $4.6 million, 6.9% above prior year’s fourth quarter net income of $4.3 million.