Aleafia Health Inc. announced that its upward trend in market share, purchase orders, and new SKU launches has continued in 2022’s first four months, following on from the growth in the quarter ended December 31, 2021. The Company has seen strong advances in its largest adult-use categories: flower, pre-rolls and vapes.
The Company has now achieved more than four consecutive quarters of increases in adult-use cannabis market share, rising to 2.5% in April 2022, a 134% year over year increase over April 2021. Among Canadian licensed Cannabis producers, Aleafia Health achieved a record 13th in overall market share rank in April 2022, based on retail level sales pull through, up from 16th in the quarter ended December 31, 2021.(3)
Delivering Innovative New Products with Rapid Customer Uptake
At the Ontario Cannabis Store (“OCS”), sales for the recently launched Pineapple Nuken pre-roll 12 pack exceeded $1 million in the first four months of 2022 and sales of cropped harvest products were nearly $1 million in their first month.
Focused Product Portfolio on the Largest Adult-Use Product Categories
“On our Q4 2021 earnings call earlier this year, we committed to delivering on ambitious growth plans and the Company is now meeting and, in some cases, exceeding those targets,” said Aleafia Health’s CEO Tricia Symmes. “The Company has a superb, hard-working team, and strong consumer acceptance for its Sunday Market house of brands. It’s no wonder that our everyday brand Divvy has been among the OCS’ most searched product list for the last 14 months. It’s a very exciting time for the Company as quarter by quarter we build on our foundation and get increasingly more recognition among savvy industry participants who recognize we are here to compete.”
“By strategically creating a portfolio of 37 active SKUs in the OCS, with 12 additional SKUs launching in the Spring and Summer, we are laser focused on the largest margin, top revenue-generating product categories: flower, pre-roll and vapes, with 67% of our SKU listings in those categories,” said Symmes. “In AGLC we have 43 active SKUs, with 8 SKUs pending launch, and in that market 60% of our SKU listings are in those same three large product categories.”
Continued Scaling of a Diversified Revenue Mix
“Our top three selling products in the OCS year to date ended April 30, 2022, were $1.1 million in sales of Pineapple Nuken 12-pack pre-rolls, $0.9 million in sales of 14-gram Sour Kush flower and $0.7 million in sales of California Orange vape cartridges. All three of these products are under our everyday value brand, Divvy. This demonstrates that we are building a diversified portfolio of products across our three core adult-use categories,” said Aleafia Health’s CFO Matthew Sale.
“I am also pleased to announce that we have over $9.6 million in firm purchase orders from the provincial distributors to date this quarter which we anticipate filling before June 30, 2022. This is an important milestone for Aleafia as we continue to show growth in our adult-use sales while many of our peers are delivering deteriorating sales performance. Among the top 20 largest Canadian LPs, our growth rate in adult-use sales places us in the top quartile. The Company’s run-rate in adult-use net revenue of $28 million is incredible given in Q1 2021 we generated only $1.7 million in net revenue,” said Sale.
“We are very proud of our sales success and will continue to build on our progress in flower, pre-rolls and vapes, the three largest adult-use categories,” said Symmes. “But the Company is also a developer of innovative new products that will continue to drive our sales performance. As an example, we added Bogart’s Kitchen’s Red Habanero to our groundbreaking hot sauce lineup and a winterized resin CBD vape cartridge to our popular Divvy vape lineup. We also have a revolutionary sleep-related product in the product pipeline for summer under our Noon & Night brand. A great team plus new products, new formats, new categories, and leadership in the three largest adult-use categories, that along with our solid Emblem medical cannabis brand and developing momentum in international distribution, is Aleafia Health today.”
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.