MBiz

Spring 2019

Manitoba Chamber of Commerce

Issue link: http://publications.winnipegfreepress.com/i/1120525

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18 SPRING 2019 N ow that the smoke has cleared on the legalization of cannabis in Canada, it's clear the burgeoning retail industry will prove to be anything but a buzz-kill for local economies. In fact, a mere six months after the first cannabis shops opened their doors in Manitoba, one of the province's longest- running suppliers has already seen its revenues soar, with plans to expand its already considerable operations. In 2017, Delta 9 Cannabis Inc. — one of the first cannabis companies licensed by Health Canada for cultivation for medical use — posted annual sales of $944,000. By December 2018, with fewer than three months of newly legal retail sales on the books, those figures had climbed to $7.6 million, with $5.27 million of that coming in the fourth quarter. And with average retail transactions among the highest in the country ($65 in store and $100 online), Delta 9 is already eyeing additional opportunities through the province and beyond, with plans in place to ensure production capacity can keep pace with the steady demand. "The last year — we called that our Phase One Expansion — brought us up to 154 modular Grow Pods and 4,200 kg of annual capacity," says Delta 9 CEO John Arbuthnot. "This year we're looking to add about 450 additional pods, bringing our capacity up to about 16,000 to 17,000 kg — so effectively DELTA 9 CANNABIS Delta 9 Cannabis fuels economy with high-end retail outlets and expansion plans THE FUTURE IS

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