Cannabis Briefs for November 15, 2022November 15, 2022
•Charlotte’s Web has announced a $57 million investment by a subsidiary of BAT. Intended to fund research and development and growth initiatives, the investment from the tobacco group is convertible into a nearly 20% stake in Charlotte’s Web at BAT’s discretion. Meanwhile, Charlotte’s Web posted third quarter net revenue of $17 million, down 28% year-on-year. According to the company, the decrease was “primarily due to lower comparable customer shipments, ongoing consumer shifts from tinctures to lower-priced gummies and formats, and lower relative traffic to the company’s e-commerce store.” Adjusted EBITDA, however, turned positive at $0.6 million.
•Curaleaf has rebranded its Grassroots premium cannabis flower brand, coinciding with the launch of its Grower’s Reserve program, an ongoing series of limited-edition collaborations with craft farmers and diverse operators in California. Grassroots Diamond Infused Pre-Rolls are now available in California as 1-gram Singles or 5-pack Shorties at 0.4 grams each. Strains include Grower’s Reserve – Napali Sunrise (Sativa) by Delighted Farms, Grower’s Reserve – Cherry Cheesecake (Indica) by Sonoma Hills Farm, and Mimosa by Grassroots (Hybrid). Curaleaf also posted revenues up 1% sequentially and 7% year-on-year to $339 million for the third quarter, with adjusted EBITDA up 18% year-on-year to $84 million.
•California distributor Herbl will handle the wares of Santa Cruz-based Revelry on an exclusive basis moving forward. Revelry’s portfolio includes a curated range of flower strains and pre-rolls, as well as a line of smell-proof luggage for cannabis enthusiasts. The company’s offerings will now roll out through Herbl’s network, which numbers more than a thousand California retailers. SNDC recently caught up with Herbl founder and CEO Mike Beaudry.
•Stiiizy is introducing a new range of CBN gummies aimed at promoting relaxation and sleep. Available now in three flavors—Crimson Berry, Midnight Berry, and White Berry—and retailing for $14, each package is segmented into 10 servings of 10mg THC and 5mg CBN (2:1 THC to CBN). Stiiizy CBN gummies are now available at California Stiiizy retail locations and other cannabis dispensaries. CBN is being eyed as a growth opportunity for brands as they continue to target the wellness sector, having shown promise in initial studies as a sleep aid. It’s mixed with THC in Stiiizy’s formulation to promote the “ensemble effect” in which cannabinoids seem to maximize each other’s benefits when administered in concert.
•Multistate cannabis delivery service Doobie has launched a direct-to-consumer (DTC) partnership with Fernway, a top-selling vaporizer brand in Massachusetts. Through Doobie Direct, the company’s DTC delivery solution for cannabis brands, consumers can order Fernway products directly on the Fernway website. Doobie kicked off Doobie Direct through a partnership with leading cannabis seltzer brand Cann. Doobie currently operates in Arizona, California, Massachusetts, and Missouri.Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning. You will also receive the Cannabis edition as part of your subscription.