With cannabis legalization around the corner in Canada, there’s been a rise of diversification in consumer needs as companies look to exclusively supply products for women cannabis consumers.
As investors look for new entries into the cannabis space, more companies are offering exposure into portfolios of products for women cannabis consumers.
Consumers will begin making decisions based on brand preference and product reliability. As such, companies will be fighting for the attention of these consumers by any method possible – including standing out by separating themselves from established players.
As Canada moves closer to legalization of recreational cannabis, diversification into various areas of the market will be key for these companies. As a result, there’s been a rise in investor potential for companies looking to target women cannabis consumers exclusively.
Specialization is coming to the cannabis market
During a panel in June at the MJBizCon INT’L crash course day for cannabis investing, PI Financial analyst Jason Zandberg explained the Canadian cannabis market is on a path of specialization as it moves closer to adult-use legalization.
“This market is changing, is going to continue to change, it’s going to specialize,” Zandberg said.
48North Cannabis (TSXV:NRTH) is one such company looking to target female consumers exclusively. Alison Gordon, CEO of the company, told the Investing News Network (INN) women are “more interested in the extracted products and brands.”
“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,” Gordon said. The company made its public debut on the TSX Venture Exchange (TSXV) in June 2018.
Gordon told INN she believes cannabis will play a significant part in the emerging health and wellness industry. “[T]hat’s really where we want to play.”
Consumer research shows C$2-billion market
Fleurish, a private company also seeking to exclusively target the female market, completed a research study in 2018 with samples from over 1,500 Canadian women aged 19 to 65. The breakdown in consumers and non consumers, according to the company, was around 1000 and 500 respectively.
Michael Smith, incoming CEO of Fleurish, told the Investing News Network (INN) the study from the company shows that currently 2.2 billion Canadian women consume cannabis regularly, signalling a potential C$2 billion size market.
The executive said Fleurish will be appealing to consumers willing to spend for premium products and — similar to 48North — will be within the health and wellness market.
Fleurish obtained its status as a licensed producer in Canada for its Ontario facility in August 2018. Mary Beth Williamson, incoming chief marketing officer for the company, said Fleurish will begin production of dried flower and pre-roll products. The company plans to offer edibles and oils for vaping once regulation allows it in Canada.
When asked about the timeline on the company going public, Smith said Fleurish has its shell company ready to go and is waiting for a positive market to launch into.
“It would be either this fall if the market stays strong or when we get the sales license because then we are a full viable business,” Smith. The executive estimated the company will get a sales license in January or February 2019.
Eve & Co, (TSXV:EVE) another company exclusively focused in developing products for women cannabis consumers, has secured supply agreements with BC and Ontario. These deals guarantee the company’s products will hit shelves in the respective provinces at the start of legalization.
Ontario has announced it will be allowing companies to set up retail shops in 2019 for adult-use cannabis. Consumers will be able to purchase recreational cannabis through an online portal in the province following legalization.
“We feel our brand’s vision and ideals around female empowerment, leadership, and wellness will resonate strongly with people from our home province,” Melinda Rombouts, president and CEO of EVE, said after obtaining a deal with the Ontario Cannabis Retail Corporation (OCS).
The growth of the health and wellness sector could offer investors in the space diverse interests among the wide cannabis market. While Canada gets ready for adult-use cannabis legalization more, of these growing companies can offer investors a direct option for women cannabis consumers.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.