Cannabis NB released its first quarter results for 2023-2024 ending July 2, 2023. Total product sales for the quarter were $21.9 million, up 11% compared to the same period last year. Net income for the quarter was $5.1 million, 24.3% above the prior year’s first quarter net income of $4.1 million.
Product Sales
The average basket size was $58.58. Key product sales for the first quarter compared to the first quarter last year were:
- Sales of dried flower increased 4.6%, up $0.5 million
- Extract sales increased 14.5%, up $0.1 million
- Sales of accessories increased 8.7%, up $0.1 million
- Sales of edibles decreased 6.1%, down $0.1 million
- Sales of infused beverages increased 55.6%, up $0.2 million
- Sales of topicals increased 10%, up $20.4 thousand
- Concentrate sales increased 24%, up $1.3 million
Infused pre-rolls represent 11% of Cannabis NB’s concentrate sales. Consumers tend to gravitate to infused pre-rolls due to their higher THC potency.
Private Retail Channel
Cannabis NB has launched its new private retail channel, which allows private retailers to operate stores under their own brands across the province.
The legal stores are licensed to sell cannabis in New Brunswick, and offer a full portfolio of legal, regulated products across all categories, sourced from Cannabis NB. These stores are identified from illegal stores by a badge displayed outside and inside the stores.
To date, five stores have opened in Grand Bay, Bouctouche, Caraquet, Salisbury, and Blackville, with more to open in the summer and fall.
Two new Farmgate stores also recently opened: Stewart Farms and Greenherb Farms.
Earlier this year, Cannabis NB released its 2024-2026 Strategic Plan, sharing its plans for strategic expansion and objective of shifting existing consumers to safe, legal options. The company captures about 50% of the market, but says it faces some real challenges to shift the remaining illicit customer base to the legal market. Expanding private sector participation is one of its strategies to attract more customers.
Good to Know Relaunch
Cannabis relaunched its Good to Know campaign which focuses on illicit cannabis products in New Brunswick and shares facts about what consumers are really getting when they shop illegal stores.
The campaign appears on various websites and age-gated social media apps and promotes the fact that any product not sold by Cannabis NB in New Brunswick is not tested or regulated, nor are illegal vendors held accountable for the claims made about their products.
Excellence in Retailing Award Nominations
Cannabis NB was named as a finalist in the Retail Council of Canada’s Excellence in Retailing Awards for 2023. The company was nominated in two categories, including the Pop-Up Experience and Design for its container village pop-up which was part of the Area 506 Container Village, and Retail Marketing for the Good to Know campaign which launched last fall.
Photo courtesy of Cannabis NB.