Aleafia Health Continues to Gain Share in Adult Use Cannabis Market and Drive International Sales Growth
25 März 2022 - 12:30PM
Aleafia Health Inc. (TSX: AH, OTCQX: ALEAF) (“
Aleafia
Health” or the “
Company”) is pleased to
provide a corporate update demonstrating that the Company continues
to deliver market share advances by focusing on the highest revenue
generating dried flower, pre-roll, and vape product categories.
Consumers continue to express strong interest in its Sunday Market
House of Brands adult-use cannabis products in these categories.
“In February, the Company reported that it had changed the
business’ strategy towards being a branded cannabis products
provider, with branded cannabis representing 80% of total net
revenue in 2021 compared to 33% in 2020,” said Aleafia Health CEO
Tricia Symmes. “Now we continue to deliver on that strategy, with
record growth in market share in February and unique product
introductions that demonstrate the success of our Sunday Market
House of Brands, setting the stage for future success in the
highest volume cannabis categories.”
In February, Aleafia Health achieved record 2.06% adult use
market share in four major markets, advancing 33% from 1.54% in
November 2021. In the same time frame, market share in flower rose
to 1.86% from 1.47%, pre-rolls rose to 2.62% from 2.09%, vapes rose
to 2.18% from 0.92%, and oil rose to 4.01% from 2.68%.(1) These
advances in market share would have been stronger absent temporary
capacity limitations at the Company’s Grimsby greenhouse
facility.
Among Canadian LPs, in its four major markets, the Company
ranked in February 2022(1):
- 13th overall, up from 30th in February 2021
- 11th in pre-rolls, up from 37th in February 2021
- 11th in vapes, up from 18th in February 2021
This 17-position overall market share rank increase, from 30th
to 13th, demonstrates the success of the Sunday Market House of
Brands. This growth was driven by strong retail pull-through of the
Divvy product portfolio, Sunday Market’s everyday brand. The
Company recently shipped its first flower SKUs to British Columbia,
including 14g bags of Divvy Sour Kush and Flo, and 3.5g bags of
Divvy Black Widow CBD, the Company’s spicy balanced flower
offering. Divvy has consistently been one of the top 12 most
searched brands on OCS.ca since its first product launch in April
2021. In addition, the Company’s Kin Slips discrete sublingual
strip brand ranks #1 in Ontario.
As another indicator of consumer demand and sales momentum for
adult use products, the Company for the first time has received a
$1 million purchase order from Ontario, covering a wide range of
products. In addition, Aleafia Health has secured purchase orders
in 2022 year-to-date from Australia and Europe that exceed 2021
second half sales to international markets. Aleafia continues to
target international sales as a future growth area, benefitting
from its strong relationships with overseas distributors.
“Many of the Company’s new listings are line extensions, which
speak volumes about the confidence the OCS and AGLC have in the
Company, as those provincial authorities usually list line
extensions only if predecessor products have been successful, which
ours clearly were.”
“Divvy, the Company’s well-established everyday brand is focused
on an exceptional value proposition, with a full suite of dried
flower, pre-rolls, vapes and cannabis derivative products,
benefitting from supply agreements with Ontario, Alberta,
Saskatchewan, British Columbia,” Symmes said. “The Company has more
than 100 provincial listings and seven new SKUs in Ontario and six
in Alberta this Spring. That continued revenue velocity, in
combination with the continued cost containment and rationalization
initiatives underway, is helping drive us towards achieving
breakeven Adjusted EBITDA(2) profitability in the second half of
2022.”
- Based on HiFyre data for Ontario, Alberta, British Columbia and
Saskatchewan markets.
- Please see "Adjusted EBITDA" section of the Company’s MD&A
dated February 14, 2022 for reconciliation to IFRS equivalent.
For Investor & Media Relations:
Matthew Sale, CFO1-833-879-2533IR@AleafiaHealth.comLEARN MORE:
www.AleafiaHealth.com
About Aleafia Health:
Aleafia Health, a vertically integrated and federally licensed
Canadian cannabis company, owns three licensed cannabis production
facilities, including the first large-scale, legal outdoor
cultivation facility in Canadian history, and operates a
strategically located distribution centre, all in the province of
Ontario. The Company produces a diverse portfolio of cannabis
derivative products including oils, capsules, edibles, sublingual
strips, and vapes, for sale in Canada in the adult-use and medical
markets and is pursuing opportunities in select international
jurisdictions. The Company owns and operates a virtual network of
medical cannabis clinics staffed by physicians and nurse
practitioners.
Forward Looking Information
This news release contains forward-looking information within
the meaning of applicable Canadian and United States securities
laws. Often, but not always, forward-looking information can be
identified by the use of words such as “plans”, “expects”,
“estimates”, “intends”, “anticipates”, or “believes” or variations
of such words and phrases or state that certain actions, events or
results “may”, “could”, “would”, “might” or “will” be taken, occur
or be achieved. Forward-looking information involves known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of the Company or its
subsidiaries to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking information contained in this news release. Risks,
uncertainties and other factors involved with forward-looking
information could cause actual events, results, performance,
prospects and opportunities to differ materially from those
expressed or implied by such forward-looking information, including
risks contained in the Company’s annual information form filed with
Canadian securities regulators available on the Company’s SEDAR
profile at www.sedar.com. Although the Company believes that the
assumptions and factors used in preparing the forward-looking
information in this news release are reasonable, undue reliance
should not be placed on such information and no assurance can be
given that such events will occur in the disclosed time frames or
at all. The forward-looking information included in this news
release are made as of the date of this news release and the
Company does not undertake any obligation to publicly update such
forward-looking information to reflect new information, subsequent
events or otherwise unless required by applicable securities
legislation.
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