Rubicon Organics Reports Record Third Quarter 2021 Financial Results and Operational Update

Published: November 18, 2021

Rubicon Organics Reports Record Third Quarter 2021 Financial Results and Operational Update

Rubicon Organics Inc., a licensed producer focused on cultivating and selling organic certified and premium cannabis products, is pleased to provide an operational update for the period ending October 31, 2021.

“We are quickly climbing the ranks in total market share across Canada and have established Simply Bare™ Organic as the leading premium flower and pre-roll brand. This reflects our steadfast commitment to product quality and the broader availability of a more accessible product portfolio with the launch of 1964 Supply Co.™ and Homestead Cannabis Supply™ in major provinces,” said Jesse McConnell, Chief Executive Officer.

Market Share Momentum
For the three months ending October 31, 2021 the Company’s total market share in the flower and pre-roll category increased to 2.2%[1] across Canada. This is attributable to steadily rising sales of Simply Bare™ Organic, the launch of 1964 Supply Co.™ in Ontario, British Columbia and Alberta and the launch of Homestead Cannabis Supply™ in British Columbia, Alberta, Manitoba, Saskatchewan, Ontario and Yukon.

Furthermore, according to Hifyre, Simply Bare™ Organic currently ranks as the #1 premium brand by sales of flower and pre-roll products across Canada for the year-to-date period ending September 30, 20212.

Highlights[2] by major province in the premium and organic categories include:

  • BC: #1 premium brand in flower and pre-roll, #1 brand in organic flower and pre-roll
  • Quebec: #1 premium brand in flower and pre-roll, #2 premium brand in hash, and #1 brand in organic flower and pre-roll
  • Ontario: #4 premium brand in flower and pre-roll and #1 brand in organic flower and pre-roll
  • Alberta: #6 premium brand in flower and pre-roll, and #2 brand across all pre-roll price points

Rubicon Organics is also very pleased to highlight market share achievements in the premium pre-roll product category[3]:

  • Nationally: #1 premium brand in pre-roll in Canada with market share of 18.5%
  • BC: #1 premium brand in pre-roll in the province with market share of 25.9%
  • Ontario: #1 premium brand in pre-roll with market share of 13.6%
  • Quebec: #1 premium brand in pre-roll with market share of 31.2%

Core Brand Portfolio Established
Rubicon Organics has made significant advancements in the depth of its product portfolio. As of October 31, 2021, Rubicon Organics has over 60 unique SKUs across five brands, up from approximately 19 at the beginning of the year. With the establishment of a broad core product portfolio, Rubicon now has the ability to optimize margins across pricing segments through leveraging the product mix in its brand portfolio. Future innovation will now largely sit under its brand umbrella and is focused on category extension of premium genetic offerings and the introduction of additional high margin 2.0 products.

Wider Distribution Channel
The Company’s distribution channel width has increased by 125% and Rubicon products are now available in over 1,800 retail locations of the approximately 2,400 total retail locations across Canada. This is a significant increase from approximately 800 stores at the beginning of 2021 and is further evidence of the increasing consumer demand for Rubicon Organics branded products. The Company is currently adding personnel to its salesforce to accommodate the increased sales penetration.

Facility Optimization
The Company has also recently commissioned two of six new HVAC units at its Delta facility, with final commissioning expected by the end of January 2022. These units will further drive product quality and yields.

Rubicon Organics Inc. is the global brand leader in premium organic cannabis products. The Company is vertically integrated through its wholly owned subsidiary Rubicon Holdings Corp., a licensed producer. Rubicon Organics is focused on achieving industry leading profitability through a focus on differentiated product innovation and brand portfolio management, including its flagship super-premium brand Simply Bare™ Organic, its premium flower and hash brand 1964 Supply Co™, its premium concentrate brand LAB THEORY™, and its mainstream brand Homestead Cannabis Supply™. The Company ensures the quality of its supply chain by cultivating, processing, branding and selling organic certified, sustainably produced, premium cannabis products from its state-of-the-art glass roofed indoor facility located in Delta, BC, Canada.