48North Cannabis became a publicly traded company on the TSX Venture earlier this month, and it already has plans for its target audience: female cannabis users.
As 48North Cannabis (TSXV:NRTH) ramps up for October’s legalization date in Canada, the company has set its sights on the feminine side of cannabis consumption in order to hit an “undersupplied market.”
Speaking at a panel this week called RNMKR Talks: Women Trailblazers, 48North CEO Alison Gordon described her journey through the women’s health and wellness space, which eventually led her to the cannabis industry in 2013. Upon her arrival, she noticed a lack of female representation in the cannabis industry, and wanted to make a change.
“I’ve always very much felt that women were an underserved demographic in this industry, but I would only do that if I could do that authentically, so I really wasn’t interested in focusing one brand out of many on women,” Gordon told the Investing News Network (INN) after the panel.
“Women make up almost half of the current cannabis market, they’re more interested in the extracted products and brands,” she added.
48North, which became publicly listed on the TSX Venture earlier in June, and whose licensed producer, DelShen Therapeutics, recently obtained its sales license from Health Canada, has focused its entire brand around the female health and wellness market.
As it looks to develop products like food, beverages and skincare, the company is collaborating with leaders in those industries to manufacture items that give consumers the best of both worlds.
“We don’t think we need to reinvent the wheel, we think it’s really about leveraging our knowledge of cannabis, our license and our ability to work with that, and partnering with the best in class around those different categories,” Gordon said.
She explained, “I believe that cannabis will be a huge part of all aspects of the health and wellness industry, and that’s really where we want to play.” Analysts in the industry have singled out health and wellness as a new growing sector amid the overall cannabis market.
Consistency the next key step for cannabis market
Another factor the company is focusing on is not just product quality but consistency, which according to Gordon is the direction the cannabis industry needs to go in.
“When you open a box of Oreos, you know exactly what that Oreo’s going to look and taste like,” she told INN. “It’s even more important when you’re dealing with cannabis to have that level of credibility and consistency for the consumer, whether they’re a patient or just a recreational user.”
While the company is still waiting to determine what kind of cannabis infusion it can play with in terms of its products, Gordon said that with 48North being a smaller company, it has the freedom to “pivot” as regulations change and isn’t locked into being a large-scale cultivator.
“We’ll have to wait and see where the regulations go, where we’re allowed to distribute CBD products vs. THC products, and that unfortunately will dictate for the next few years as prohibition ends and the market opens up. I think our goal would very much be to use as much of the plant as makes sense to benefit women,” she said.
Canada is set to legalize adult-use cannabis smokable products on October 17. The government has indicated edibles and other infused products will take longer to permit. Industry advocates have said this slow roll out will allow the illicit market to continue thriving while legal producers stick with the law.
Since going public, 48North’s share price has dropped 22.8 percent. During Thursday’s (June 28) trading session its share price had risen 4.7 percent by 3:05 p.m. EST to reach C$0.88.
Don’t forget to follow us @INN_Cannabis for real-time news updates!
Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.