Enterprise

New Brunswick cannabis company finds niche with new products

After over a year on the recreational cannabis market, Zenabis seems to have finally found its cannabis sales niche. In recent weeks, the company has been offering a brand new product on the shelves, Re-Up. This product features mid-range cannabis that joins its two other established brands already on the shelves, Namaste and Blazery. As of October, the company had produced 12,770 kg of cannabis.

New Brunswick cannabis company, Zenabis, rolled out its newest product called Re-Up. It is inexpensive, and at $5.53 per gram, it is the lowest regular price currently offered on the Cannabis New Brunswick website.

This product is the company’s response to the black market. They believe their low prices are holding back the legal market from really taking off.

It is estimated that the average price of a gram of cannabis on the black market is just over $5. The company’s objective is simple: to convince consumers who buy on the illicit market to do so legally instead.

In order to find more on this subject, one potentially useful cannabis investing tool is the Hemp.im app and its companion marijuana news website.

Good quality products on the New Brunswick cannabis market

“We knew that there was a place in the market for this less expensive, but still quality, kind of product. We are thinking in particular of more regular consumers, who want a more affordable product because of the quantity consumed,” said company spokesperson Jordan Owens. “We have the production capacity and inventory, so we decided to test the market. The response has been excellent, beyond our expectations.”

If she had to make a comparison, Mrs. Owens would make a comparison between champagne and beer.

“Not everyone opens a bottle of champagne every night after work, but it’s more likely to open a beer or two,” she said. All in all, Re-Up is less high-end cannabis, but it delivers the goods perfectly.

How Zenabis cut prices on cannabis products

How do you manage to cut the cost of sales? According to Owens, largely through mass production, but also through better use of packaging.

It argues that Re-Up is proof that it is possible for cannabis producers to compete with the black market.

Last October, since the arrival of the Re-Up brand, Zenabis has gained 34% of the sales of cannabis products sold at Cannabis NB, up from previous months.

Additionally, Re-Up is no stranger to this increase in market share, although other elements such as the addition of capsules and vaporizers to the company’s product portfolio also played a role.

Zenabis has the production capacity and inventory to offer a less expensive but quality product. (Source)

“It’s still early, but we feel that Re-Up is a product that we want to continue to develop and that we want to put a lot of emphasis on elsewhere in the country because at the moment it’s only available in New Brunswick and Saskatchewan,” added Owens.

An eventful year for New Brunswick cannabis companies

The past year has also been a year of many accomplishments for Zenabis.

Firstly, the company completed all phases of expansion at its Atholville plant. It is now fully functional, which has allowed the company to do well in terms of production, regularly exceeding its objectives.

As of October, the company had produced 12,770 kg of cannabis, 8% more than originally forecasted. This figure, largely attributable to the Atholville plant, is expected to increase significantly as all growth producers will be available online.

The year 2019 also marks the IPO of Zenabis, a slightly less successful move. Though the stock was almost at $5, it quickly dropped. After holding between $1 and $2, the stock has dropped drastically and is currently trading around $0.20.

In 2020, Zenabis could obtain accreditation for the sale of cannabis for medicinal purposes overseas. (Source)

However, according to Owens, Zenabis is not the only cannabis company to have to deal with such a situation. Virtually the entire Canadian cannabis industry has experienced a significant devaluation in market value.

Also in 2020, the Atholville plant could obtain accreditation for the sale of cannabis for medicinal purposes overseas, including from European Union member countries.

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(Featured image by 12019 via Pixabay)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Hemp.im, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in acadie35nouvelle, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Hemp.im assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Hemp.im is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.

Olivia McCall

Olivia McCall is passionate about education, women and children’s rights, and the environment. A long-time investor, she covers news about the latest stocks (lately marijuana and tech), IPOs and indices, and is always on the lookout for socially responsible startups. She also writes about the food sector, and has a keen interest on cryptocurrencies.

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