The Good Shroom (TSX-V:MUSH) Company Inc has provided a positive update on robust sales and distribution of its portfolio of brands which include traditional cannabis, functional mushrooms and beverage products.
The Montreal, Canada-based company through its licensed subsidiary Teonan Biomedical Inc, operates two cannabis brands - Nordique Royale and Velada - representing functional cannabis beverages and popular hash extracts.
On December 24, 2021, the company launched Nordique Royale's Afghan Gold hashish in Quebec. Three weeks later the product shot up to Number 4 in sales rankings in its category out of nearly 35 hash products, according to Weed Crawler.
During that same period, the company said hash sales amounted to just over $250,000 and is expected to “continue for the immediate term.”
Significantly, the first week of February this year marked the launch of the company’s eagerly anticipated first two Velada cannabis beverages in Ontario. According to the Ontario Cannabis Store, for its first week of sales Velada products ranked Number 1 and Number 2 in its category, representing $27,480 in sales.
For both Nordique Royale and Velada sales quickly surpassed expectations and inventory was depleted much quicker than anticipated which led to a temporary drop in sales, noted the company. At present, all cannabis products have been restocked, or are in the process of being completed in line with revised projections to ensure the company minimizes any disruptions in inventory going forward.
The Good Shroom (TSX-V:MUSH) said it is expecting to launch Velada cannabis beverages in Quebec cannabis stores, since the cannabis drinks are currently only sold online.
According to the government of Quebec, online sales account for approximately 10% of total sales in the province. Despite only being sold online, according to quebec.weedcrawler.ca, three Velada drinks are among the “top selling products” in their category even when ranked against products sold in stores.
Meanwhile, The Good Shroom (TSX-V:MUSH), through its subsidiary, also operates Teonan functional mushroom beverages. These drinks have been accepted by two of the largest consumer packaged goods distributors in the US, which include KEHE Food Distributors Inc and United Natural Foods Inc (NASDAQ:UNFI).
As a result, Teonan is now distributed out of several locations and available to retailers in the US, said the company. Though just initiated recently, the company said its subsidiary has already received “four purchase orders,” which include two large accounts and a variety of small accounts.
The company said its salesforce led by FDM Sales management has now begun fulfilling orders and submitting products for review to large retail accounts.
Separately, The Good Shroom said it will be releasing its fiscal second quarter results for the period ended January 31, 2022, in early April this year.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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