Village Farms International Posts Eight Consecutive Months of National Share Growth
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Observing the trajectory of Village Farms International's market share, the company's consistent growth over eight months is indicative of a successful strategy execution. Their focus on high-quality flower products has resonated with consumers, leading to organic market share gains. In the competitive cannabis market, product differentiation and consumer loyalty are pivotal. Village Farms' ability to secure the top-three-selling ounces in Ontario with Big Pleasures, D. Burger and Pink Kush suggests a strong alignment with consumer preferences. Furthermore, the impressive growth in Quebec, where the company's market share has nearly quadrupled, highlights their effective expansion and product adoption in diverse markets.
The launch of Super Toast by Pure Sunfarms and its rapid ascension to a 20% share of the milled category underscores the importance of innovation and brand development in sustaining growth. As the company prepares to enter Nova Scotia, the potential for increased revenue streams and national presence is significant. However, the challenge will be to maintain quality and brand strength amidst expansion, as well as to navigate the regulatory landscape of different provinces. The long-term impact on the stock market will likely hinge on the company's ability to continue outperforming competitors and managing operational costs associated with expansion.
Village Farms International's announcement of regaining the #1 position in Ontario, coupled with consistent national market share growth, is likely to be viewed positively by investors. The company's strategic positioning in the large format category and successful brand launches are contributing factors to its robust performance. From a financial perspective, the increased market share in key provinces such as Ontario, Quebec and Alberta is likely to translate into higher revenues and potentially improved margins, assuming economies of scale are realized.
Investors should monitor the company's upcoming expansion into Nova Scotia, as it represents an opportunity to tap into a new customer base. The expansion strategy could further solidify Village Farms' market leadership if executed effectively. However, investors should also consider the costs associated with entering new markets and the potential for increased competition. The company's stock price may reflect the market's confidence in management's ability to leverage these growth opportunities while maintaining operational efficiency.
The Canadian cannabis market is highly competitive and Village Farms International's performance is noteworthy. By focusing on high-quality flower, which is a key segment for cannabis connoisseurs and regular users alike, they have managed to capture significant market share. The company's dominance in the large format category is particularly important, as it indicates a strong consumer preference for their product offerings and brand loyalty. The success of new brands like Super Toast demonstrates the company's understanding of market trends and consumer demand.
With the upcoming expansion into Nova Scotia, Village Farms is poised to increase its national footprint. This move is strategic, as it allows the company to establish a presence in all Canadian provinces, thereby potentially increasing its market share even further. However, it is essential to note that with expansion comes the risk of overextending and diluting brand value. The company must ensure that quality and supply chain management keep pace with growth to maintain its leading position. Stakeholders should look for continued innovation and market responsiveness as indicators of the company's potential for sustained success.
Regaining #1 Position as Ontario’s Leading Licensed Producer in Q1 2024
VANCOUVER, British Columbia and ORLANDO, Fla., April 11, 2024 (GLOBE NEWSWIRE) -- Village Farms International, Inc. (“Village Farms” and “Company”) (NASDAQ: VFF) has gained national market share for eight consecutive months, making it the fastest growing producer among the top five licensed producers in Canada.1 According to provincial data, the Company has also regained the #1 licensed producer position in Ontario, Canada’s largest provincial market, for the first time since 2022.2
“Our dedicated focus on developing a winning strategy rooted in high-quality flower has allowed us to continue to grow organic market share from a position of strength,” said Michael A. Degiglio, President & CEO of Village Farms International. “Our industry leadership has been earned through our team’s dedication, innovation, and a deep respect and understanding of our consumers, resulting in organic growth with our partner retailers and discerning consumers who come back to our products time and time again.”
Village Farms leads in Ontario with the top-three-selling ounces: Big Pleasures, D. Burger and Pure Sunfarms’ iconic Pink Kush, reinforcing its consistent dominance in the large format category for the past two years. Super Toast, the company’s most recent launch by Pure Sunfarms has also notably emerged as one of the fastest-growing brands in Ontario in just six months taking a significant
Dominance in markets across the country continue to solidify the company’s #2 position as a top producer nationally. In Quebec, Canada’s second most populous province, Village Farms has posted impressive share gains from circa
1 Based on estimated retail sales from HiFyre, other third parties and provincial boards.
2 Calculated from sales information provided by the Ontario Cannabis Store (OCS) as of March 31, 2024.
3 Q1 2024 as compared to Q1 2023 based on estimated retail sales from HiFyre, other third parties and provincial boards.
4 Calculated from sales information provided by Alberta Gaming, Liquor and Cannabis (AGLC).
5 Based on estimated retail sales from WeedCrawler from January 1st, 2024 to March 31st, 2024.
6 Calculated from sales information provided by BC Liquor Distribution Branch (BCLDB).
Village Farms has consistently retained the #1 position in the flower category nationally over the past three years.
As of May 2024, the company expects to expand its footprint in Atlantic Canada with products launching in Nova Scotia for the first time, which will mean that every Canadian will have access to Village Farms’ leading brands nationwide.
About Village Farms International
Village Farms leverages decades of experience as a large-scale, Controlled Environment Agriculture-based, vertically integrated supplier for high-value, high-growth plant-based Consumer Packaged Goods opportunities, with a strong foundation as a leading fresh produce supplier to grocery and large-format retailers throughout the US and Canada, and new high-growth opportunities in the cannabis and CBD categories in North America, the Netherlands and selected markets internationally.
The Company's wholly-owned Canadian subsidiary, Pure Sunfarms, is one of the single largest cannabis operations in the world, the lowest-cost greenhouse producer and one of Canada’s best-selling brands. The Company also owns
In the US, wholly-owned Balanced Health Botanicals is one of the leading CBD brands and e-commerce platforms in the country. Subject to compliance with all applicable US federal and state laws and stock exchange rules, Village Farms plans to enter the US high-THC cannabis market via multiple strategies, leveraging one of the largest greenhouse operations in the country (more than 5.5 million square feet in West Texas), as well as the operational and product expertise gained through Pure Sunfarms' cannabis success in Canada.
Internationally, Village Farms is targeting selected, nascent, legal cannabis and CBD opportunities with significant medium- and long-term potential, with an initial focus on the Asia-Pacific region and Europe. In the Netherlands, it is the only North American producer to hold one of ten cannabis licenses in this limited license country.
Cautionary Statement Regarding Forward-Looking Information
As used in this Press Release, the terms “Village Farms”, “Village Farms International”, the “Company”, “we”, “us”, “our” and similar references refer to Village Farms International, Inc. and our consolidated subsidiaries, and the term “Common Shares” refers to our common shares, no par value. Our financial information is presented in U.S. dollars and all references in this Press Release to “$” means U.S. dollars and all references to “C$” means Canadian dollars.
This Press Release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 27A of the U.S. Securities Act of 1933, as amended, (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and is subject to the safe harbor created by those sections. This Press Release also contains "forward-looking information" within the meaning of applicable Canadian securities laws. We refer to such forward-looking statements and forward-looking information collectively as "forward-looking statements". Forward-looking statements may relate to the Company's future outlook or financial position and anticipated events or results and may include statements regarding the financial position, business strategy, budgets, expansion plans, litigation, projected production, projected costs, capital expenditures, financial results, taxes, plans and objectives of or involving the Company. Particularly, statements regarding future results, performance, achievements, prospects or opportunities for the Company, the greenhouse vegetable or produce industry or the cannabis industry are forward-looking statements. In some cases, forward-looking information can be identified by such terms as "can", "outlook", "may", "might", "will", "could", "should", "would", "occur", "expect", "plan", "anticipate", "believe", "intend", "try", "estimate", "predict", "potential", "continue", "likely", "schedule", "objectives", or the negative or grammatical variation thereof or other similar expressions concerning matters that are not historical facts. The forward-looking statements in this Press Release are subject to risks that may include, but are not limited to: our limited operating history in the cannabis and cannabinoids industry, including that of Pure Sunfarms, Inc. (“Pure Sunfarms”), Rose LifeScience Inc. (“Rose” or “Rose LifeScience”) and Balanced Health Botanicals, LLC (“Balanced Health”); the legal status of the cannabis business of Pure Sunfarms and Rose and the hemp business of Balanced Health; risks relating to the integration of Balanced Health and Rose into our consolidated business; risks relating to obtaining additional financing, including our dependence upon credit facilities; potential difficulties in achieving and/or maintaining profitability; variability of product pricing; risks inherent in the cannabis, hemp, CBD, cannabinoids, and agricultural businesses; market position; ability to leverage current business relationships for future business involving hemp and cannabinoids; the ability of Pure Sunfarms and Rose to cultivate and distribute cannabis in Canada; existing and new governmental regulations, including risks related to regulatory compliance and regarding obtaining and maintaining licenses; legal and operational risks relating to expected conversion of our greenhouses to cannabis production in Canada and in the United States; risks related to rules and regulations at the US federal (Food and Drug Administration and United States Department of Agriculture), state and municipal rules and regulations with respect to produce and hemp, cannabidiol-based products commercialization; retail consolidation, technological advances and other forms of competition; transportation disruptions; product liability and other potential litigation; retention of key executives; labor issues; uninsured and underinsured losses; vulnerability to rising energy costs; inflationary effects on costs of cultivation and transportation; recessionary effects on demand of our products; environmental, health and safety risks, foreign exchange exposure, risks associated with cross-border trade; difficulties in managing our growth; restrictive covenants under our credit facilities; natural catastrophes; the ongoing COVID-19 pandemic; and tax risks.
The Company has based these forward-looking statements on factors and assumptions about future events and financial trends that it believes may affect its financial condition, results of operations, business strategy and financial needs. Although the forward-looking statements contained in this Press Release are based upon assumptions that management believes are reasonable based on information currently available to management, there can be no assurance that actual results will be consistent with these forward-looking statements. Forward-looking statements necessarily involve known and unknown risks and uncertainties, many of which are beyond the Company's control, which may cause the Company's or the industry's actual results, performance, achievements, prospects and opportunities in future periods to differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, the factors contained in the Company's filings with securities regulators, including this Press Release.
When relying on forward-looking statements to make decisions, the Company cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties and should not be read as guarantees of future results, performance, achievements, prospects and opportunities. The forward-looking statements made in this Press Release relate only to events or information as of the date on which the statements are made in this Press Release. Except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
Contact Information
Lawrence Chamberlain
Investor Relations
LodeRock Advisors
(416) 519-4196
lawrence.chamberlain@loderockadvisors.com
