Decibel Cannabis Company Inc., a premium cannabis producer, is pleased to provide an operational update with respect to its capital projects and announces its fourth consecutive month of record market share in February.
“With our capital projects having achieved key milestones, it is a testament to our commitment to quality products, which continue to drive strong growth in market share” said Paul Wilson, Chief Executive Officer of Decibel. “As these strategic investments come online, we anticipate operational efficiency gains that will enhance gross margins and drive growth in our bottom line.”
Market Share Summary
|
Nov. 2021 |
Dec. 2021 |
Jan. 2022 |
Feb. 2022 |
|
|
Canada1 |
3.3% |
3.4% |
3.6% |
3.8% |
|
Major Markets1 |
4.0% |
4.2% |
4.3% |
4.6% |
|
Ontario1 |
3.1% |
3.1% |
3.2% |
3.3% |
Market Share in Decibel’s Major Markets1
- Record 4.6% recreational market share in Decibel’s major markets in February
- #1 brand in premium flower & pre-roll sales with a 9.3% market share2
- #5 LP in pre-roll sales with a 6.2% market share
- #3 LP in Alberta with a 9.8% market share, where the Company is furthest developed with its infused pre-roll product launches
- 4 brand in concentrate sales with a 7.3% market share
- #2 brand in vape sales with a 12.5% market share
National Market Share1
- Record 3.8% recreational National market share in February
- #1 brand in premium flower & pre-roll sales with a 7.6% market share2
- #7 LP in pre-roll sales with a 4.9% market share
- #4 brand in concentrate sales with a 5.8% market share
- #2 brand in vape sales with a 12.4% market share
Ontario Market Share1
- Record 3.3% recreational Ontario market share in February
- #2 brand in premium flower & pre-roll sales with a 6.6% market share2
- #9 brand in concentrate sales with a 3.5% market share
- #2 brand in vape sales with a 11.7% market share
Operational Update
The Plant Processing Hub
Decibel has completed construction of Phase 1 of its processing hub expansion at the Plant. Additionally, the Company has submitted a Health Canada amendment for the Phase 1 area and has initiated permitting for Phase 2 construction to complete the remainder of the capital project. Upon licensing, the Phase I area will include newly automated processing and packaging lines for dried flower and pre-roll products accompanied by significantly reduced labour and logistics costs. The Health Canada license is expected to be received within Q2 2022.
Creston Infrastructure Optimization
In early March, the Company completed the final grow room upgrade at the Creston facility, as a part of its staged infrastructure optimization project. This upgrade is anticipated to have an immediate impact on all new harvests, further enhancing product quality and contributing to higher yields per room.
Thunderchild Infrastructure Optimization
The Company is accelerating the implementation of the staged infrastructure optimization at its Thunderchild Cultivation Facility which is expected to be complete by end of April. Once complete, this upgrade is expected to further enhance product quality and contribute to higher yields, to better meeting growing demand for Decibel products. Production volumes are expected to be partially impacted in mid Q2 and resuming full run-rate production by start of Q4.
Link to Decibel’s Investor Presentation
|
1 |
HiFyre Retail Analytics, Licensed Producer Sales over Time Nationally and in BC, AB, SK, ON, November 1, 2021 – February 28, |
|
2 |
HiFyre Retail Analytics, Premium flower and pre-roll market defined as flower products sold more than 20% above average selling |
About Decibel
Decibel is uncompromising in the process and craftsmanship needed to deliver the highest quality cannabis products and retail experiences. Decibel has three operating production houses along with its wholly owned retail business, Prairie Records. The Qwest Estate in Creston, BC is a licensed and operating 26,000 square foot cultivation space which produces the widely championed, rare cultivar-focused brands Qwest and Qwest Reserve, which are sold in six provinces across Canada. Thunderchild Cultivation, is a licensed and operating 80,000 square foot indoor cultivation facility in Battleford, SK. The Plant, Decibel’s extraction facility, in Calgary, AB has 15,000 square feet of Health Canada licensed extraction and product development space. This production house will fuel the growth of our brands Qwest, Qwest Reserve, Blendcraft, and General Admission, into new and innovative product formats like concentrates, vapes, edibles and beyond.
