Heritage Cannabis Holdings Corp said it has signed a definitive white label agreement with BRNT Ltd, an Alberta-based brand house and cannabis ancillary company that launched Violet Tourist, the top-performing dried flower and pre-roll brand in the Canadian province.
Under the agreement, Heritage said it will work with BRNT to immediately launch Violet Tourist branded cannabis 2.0 infused pre-roll in Alberta, to expand distribution of the brand across Canada and add to its associated stock-keeping unit (SKU) listings in both the cannabis 1.0 and 2.0 segments.
The terms of the agreement provide Heritage with control of procurement and supply chain and effectively grants Heritage rights to fully operate the proven Alberta brand, the company added.
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“We are thrilled to have executed this agreement with BRNT as it provides us with control of a brand in Alberta that has proven its ability to capture market in Canada’s second-largest market by revenue,” Heritage CEO David Schwede said in a statement.
“Without a cash outlay or issuance of Heritage shares, we secure exclusive cannabis 2.0 rights to Violet Tourist-branded products in Alberta and retain control to expand distribution of the brand across the Country and into cannabis 1.0 formats over the duration of the agreement.
According to data from cannabis data and market intelligence company Headset, from BRNT’s launch of Violet Tourist-branded products in Alberta in December 2020 up to the end of September 2021, it has generated over $2.5 million of wholesale revenue attributed to the brand.
Further Headset data indicated that at the end of August 2021, Violet Tourist was the number four brand in the Alberta pre-roll segment, a category that commands around 26% of the overall cannabis market in Alberta, and held 4% of overall retail sales in the province since its launch in December 2020.
Heritage said the two companies are also exploring a commercial agreement to launch a RAD and Pura Vida branded Hexagon bong, which will be available to consumers in both Canada and the US. BRNT’s patent-protected ceramic Hexagon bong was recently featured in Rolling Stone magazine as one of its Best Bongs of 2021.
“During 2020, BRNT commenced with a process to identify a new partner for our Violet Tourist branded products,” BRNT CEO Gage Gorda said.
“We had serious inquiries from numerous LPs (licensed producers) in the country, including some of the largest, but none came close to the product offering capabilities, speed to market, depth of relationships with provincial buyers and most of all internal culture and leadership than Heritage.”
Heritage Cannabis is positioning itself to be a leader in the North American cannabis sector, offering innovative products to both the medical and recreational legal cannabis markets in Canada and the US. The company currently has an extensive portfolio of high-quality cannabis products under the brands Purefarma, Pura Vida, RAD, Premium 5, feelgood., CB4 and ArthroCBD.
Contact the author at stephen.gunnion@proactiveinvestors.com