{"id":315307,"date":"2025-11-24T09:53:11","date_gmt":"2025-11-24T09:53:11","guid":{"rendered":"https:\/\/peraltafinancing.com\/uncategorized\/the-battle-for-the-bottom-how-two-companies-are-destroying-the-alberta-cannabis-industry\/"},"modified":"2025-11-24T09:53:11","modified_gmt":"2025-11-24T09:53:11","slug":"the-battle-for-the-bottom-how-two-companies-are-destroying-the-alberta-cannabis-industry","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=315307","title":{"rendered":"The Battle For The Bottom: How Two Companies Are Destroying The Alberta Cannabis Industry"},"content":{"rendered":"


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Nova Cannabis (Value Buds) and High Tide (Canna Cabanna) have been waging a war for the biggest market share of Alberta Cannabis.
Are they waging this war with quality? With amazing customer service? With educating the consumer?<\/p>\n

Unfortunately no. These are not on the forefront of their business strategies.
With Value Buds posting little to know profit working under their bargain brand. (The gross margin as a percent of sales from retail sales remained relatively flat compared to the same period in the prior year as a result of converting most locations to the Value Buds discount banner in Q2 2021 compared to the former \u201cNova Cannabis\u201d, \u201cYSS\u201d and \u201cSweet Tree\u201d banners which operated under a different operating, pricing, and margin strategy.)<\/p>\n

As well as Canna Cabana boasting they are the \u201cCostco of Cannabis\u201d (Canna Cabana locations, modelled after Costco\u2019s membership-based program. Some have even deemed the company the \u201cCostco of Cannabis).
We can see very clearly that it\u2019s a battle for the bottom. Which company can sell the cheapest weed? Which company can sell themselves the longest to win it all?<\/p>\n

Now, in the short term, as the consumer, \u201cGreat News\u201d right?
And you are right, for now.<\/p>\n

Once either of these two gain the monopoly we are going to see a sharp increase in price, with no incentive to improve the quality. They are going to have to make back the money for the investors somehow. Leaving us to fit the bill.<\/p>\n

It\u2019s also happening a lot faster than you think.
\u201cWe see significant market share in the province of Alberta where Value Buds has captured 21.5% of market share with a 58-store footprint, \u201d Marci Kiziac \u2013 CEO \u2013 Nova Cannabis<\/p>\n

Though High Tide\u2019s financials are much harder to come by, \u201cDue to personnel challenges arising from the pandemic, the Company has not been able to finalize its income tax provision to date, we can still see that their business strategy is much more focused on quantity over quality.<\/p>\n

At a glance, With these two large corporations swallowing up as much of the market as they can take, by pursuing the cheapest weed money can buy; seems to me akin to two crack whores competing on the same corner.
So, when we are only left with $5 handies from some nameless, toothless hooker, who won\u2019t even look us in the eye, we have nobody to blame but ourselves.<\/p>\n

\u00a0<\/p>\n\n