- Starting today, all Canna Cabana retail cannabis stores
will transition to a discount club concept with exclusive benefits
targeted to Cabana Club members. This accelerates High Tide's
previously-announced entry into the value segment, and positions
the Company as the largest cannabis value retailer overnight.
- High Tide's mature ecosystem of in-house brands and
products perfectly positions the Company to become an exclusive
cannabis discount club retailer and to eventually grow its Cabana
Club loyalty plan into a global, membership-based cannabis
community.
- Approximately 40% of Canadian cannabis sales are still
conducted through the illicit market.1
With over 70% of Canadian cannabis consumers being especially
price-sensitive, this announcement positions High Tide to gain
market share by converting legacy customers into Cabana Club
members.2
- Cabana Club members will gain exclusive access to
everyday low prices, member deals, and high-quality proprietary
consumption accessories and brands. As regulations evolve, the
Company also plans to explore the potential to launch subscription
boxes for Cabana Club members, featuring brands and products from
High Tide's portfolio companies.
- Same-store sales and customer loyalty are projected to
continue their upward trajectory in the coming weeks and months
based on the results from two successful pilot projects which the
Company undertook beginning in mid-April, that involved reduced
margins on consumption accessories and THC products.
- Regulatory environment permitting, the Company may
explore the potential to introduce a membership fee for the Cabana
Club, and provide annual profit share/cashback or other perks to
members.
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1 https://www.cannabisbenchmarks.com/report-category/canada/page/2/
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2 https://cdn.shopify.com/s/files/1/2636/1928/files/Final-OCS-InsightsReport_Q3-2020.pdf?v=1614968675
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CALGARY, AB, Oct. 20, 2021 /PRNewswire/ - High Tide Inc.
("High Tide" or the "Company") (TSXV: HITI) (Nasdaq: HITI) (FSE:
2LYA), a leading retail-focused cannabis company with bricks and
mortar as well as global e-commerce assets, announced today that it
is transitioning all of its cannabis retail stores to an innovative
cannabis discount club concept, with exclusive benefits and
everyday low prices for members of its Cabana Club loyalty plan.
Modelled after a proven and leading membership-based grocery
discount club retailer, High Tide will leverage its existing
in-house brands and product lines to provide an exclusive customer
experience for its 245,000+ Cabana Club members, which will drive
customer loyalty and meaningfully expand the Company's market
share.
Starting today, all of High Tide's retail cannabis stores will
begin to offer steep club discounts on cannabis products in
addition to existing member-only discounts on consumption
accessories, as well as other exclusive benefits for members of the
Cabana Club, which will remain free to join over the short-term.
Members will also be given the exclusive ability to purchase items
from High Tide's catalogue of proprietary consumption accessories,
which will only be available in Canada through High Tide's retail brands, with
wholesale sales of proprietary consumption accessories being
discontinued in Canada in order to
focus on providing value and exclusive high-quality products to
Cabana Club members. Based on two successful pilot projects that
were conducted beginning in mid-April, 2021, which yielded a 184%
increase in consumption accessories sales, a 76-100% increase on
THC product sales, and a 272% increase in new signups for the
Cabana Club, the Company expects cannabis and consumption
accessories sales volumes to continue to rise. This increase in
sales will also accelerate High Tide's white-label product strategy
to offer unique products to Cabana Club members.
"I am thrilled that with today's announcement, High Tide becomes
the first of its kind, and the largest, cannabis discount club
retailer in North America. While
other retailers have made moves to service the value segment, our
strategy sets us apart as the only retailer in Canada which will have a discount club loyalty
plan. Today's news represents an acceleration of our value-focused
strategy, which was initially planned to be rolled out under the
Cannabis Chop Club brand in select locations only. By expanding
this strategy across all of our retail stores instead, we can focus
on continuing to build the Canna Cabana brand and its
rapidly-growing base of over 245,000 members, and grow our strong
brand equity, while saving time, capital and resources by avoiding
conversions of existing locations," said Raj Grover, President and
Chief Executive Officer of High Tide. "We have specifically
developed this retail concept to speak to the needs and preferences
of today's cannabis consumer, with a focus on value, quality, and
an exclusive product portfolio. This will be done by offering the
largest selection of cannabis products and consumption accessories
in Canada at unbeatable prices,
and at a level of quality, consistency, and safety which is absent
in the illicit market. Our successful pilot projects clearly
demonstrated that exclusive access to high-quality and affordable
products can drive growth in both sales and customer loyalty,"
added Mr. Grover.
The Company plans to initially roll out this retail concept
across Canadian provinces where it currently operates retail
cannabis stores, as well as in British
Columbia, where it anticipates launching its first store in
the near future. A driving focus of this rollout will be to convert
consumers who currently buy products from the illicit market, a
potential customer base worth at least $3
billion in annual sales.3 Over the
longer-term, depending on the timelines of legalization and
regulatory change in jurisdictions outside of Canada, High Tide's vision is to make the
Cabana Club into a global cannabis community.
High Tide President and Chief Executive Officer, Raj Grover, and
Chief Financial Officer, Rahim
Kanji, will be available to answer shareholder and analyst
questions related to this announcement via conference call at
12:00pm Eastern Time.
Conference Call Dial-In Information:
US/CANADA Participant Toll-Free
Dial-In Number: (833) 570-1148
International Participant Dial-In Number: (914) 987-7095
Conference ID: 7951116
In order to join the conference call, all speakers and
participants will be required to provide the Conference ID listed
above.
About High Tide Inc.
High Tide is a leading retail-focused cannabis company with
bricks and mortar as well as global e-commerce assets. The Company
is the largest Canadian retailer of recreational cannabis as
measured by revenue, with 101 current locations spanning
Ontario, Alberta, Manitoba and Saskatchewan, and was featured in the third
annual Report on Business Magazine's ranking of Canada's Top Growing Companies in 2021. The
Company is also North America's
first and only cannabis discount club retailer, featuring Canna
Cabana, Meta Cannabis Co., Meta Cannabis Supply Co. and NewLeaf
Cannabis banners, with additional locations under development
across Canada. High Tide has been
serving consumers for over a decade through its established
e-commerce platforms including Grasscity.com, Smokecartel.com,
Dailyhighclub.com, and Dankstop.com and more recently in the
hemp-derived CBD space through CBDcity.com, FABCBD.com, and
BlessedCBD.co.uk, as well as its wholesale distribution division
under Valiant Distribution, including the licensed entertainment
product manufacturer Famous Brandz. High Tide's strategy as a
parent company is to extend and strengthen its integrated value
chain, while providing a complete customer experience and
maximizing shareholder value. Key industry investors in High Tide
include Tilray Inc. (TSX: TLRY) (Nasdaq: TLRY) and Aurora Cannabis
Inc. (TSX: ACB) (Nasdaq: ACB).
Neither the TSXV nor its Regulation Services Provider (as that
term is defined in the policies of the TSXV) accepts responsibility
for the adequacy or accuracy of this release.
__________________________
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3 https://www150.statcan.gc.ca/t1/tbl1/en/cv.action?pid=3610012401
|
For more information about High Tide Inc., please visit
www.hightideinc.com, its profile page on SEDAR at www.sedar.com,
and its profile page on EDGAR at www.sec.gov.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain statements in this news release are forward-looking
information or forward-looking statements. Such information and
statements, referred to herein as "forward-looking statements" are
made as of the date of this news release or as of the date of the
effective date of information described in this news release, as
applicable. Forward-looking statements relate to future events or
future performance and reflect current estimates, predictions,
expectations or beliefs regarding future events. Any statements
that express or involve discussions with respect to predictions,
expectations, beliefs, plans, projections, objectives, assumptions
or future events or performance (generally, forward-looking
statements can be identified by use of words such as "outlook",
"expects", "intend", "forecasts", "anticipates", "plans",
"projects", "estimates", "envisages, "assumes", "needs",
"strategy", "goals", "objectives", or variations thereof, or
stating that certain actions, events or results "may", "can",
"could", "would", "might", or "will" be taken, occur or be
achieved, or the negative of any of these terms or similar
expressions, and other similar terminology) are not statements of
historical fact and may be forward-looking statements.
Such forward-looking statements are based on assumptions that
may prove to be incorrect, including but not limited to the ability
of High Tide to execute on its business plan and that High Tide
will receive one or multiple licenses from Alberta Gaming, Liquor
& Cannabis, British Columbia's
Liquor Distribution Branch, Liquor, Gaming and Cannabis Authority
of Manitoba, Alcohol and Gaming
Commission of Ontario or the
Saskatchewan Liquor and Gaming Authority permitting it to carry on
its Canna Cabana Inc. and KushBar Inc. businesses. High Tide
considers these assumptions to be reasonable in the circumstances.
However, there can be no assurance that any one or more of the
government, industry, market, operational or financial targets as
set out herein will be achieved. Inherent in the forward-looking
statements are known and unknown risks, uncertainties and other
factors that could cause actual results, performance or
achievements, or industry results, to differ materially from any
results, performance or achievements expressed or implied by such
forward-looking statements.
The forward–looking statements contained herein are current
as of the date of this news release. Except as required by law,
High Tide does not have any obligation to advise any person if it
becomes aware of any inaccuracy in or omission from any
forward-looking statement, nor does it intend, or assume any
obligation, to update or revise these forward-looking statements to
reflect new events or circumstances. Any and all forward-looking
statements included in this news release are expressly qualified by
this cautionary statement, and except as otherwise indicated, are
made as of the date of this news release.
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SOURCE High Tide Inc.