Eric Xu

Eric Xu asked about High Tide's new Canna Cabana store in Germany, its current strategy of selling accessories, early performance, and plans for additional stores. He also inquired about any changes to the marketing strategy or unit economics for the Cabana Club and ELITE membership programs, and requested metrics like penetration, average order value, or frequency.

Answer

CEO Raj Grover explained that the German Canna Cabana store is primarily symbolic, selling minimal accessories, and serves to establish brand presence for future retail opportunities, though pilot project chances are slim. He reiterated that Remaxion remains the main focus in Germany. Regarding membership programs, Mr. Grover expressed satisfaction with the explosive growth of Cabana Club (2.5M members, up 45% YOY) and ELITE (151K members, up 107% YOY), attributing it to brand potency, high daily user preference, and a sticky loyalty loop, noting ELITE members shop more often with larger baskets.

Eric Xu from Canaccord Genuity Corp. inquired about High Tide's strategy and early performance of the new Canna Cabana accessory store in Germany, and whether there are plans for additional stores. He also asked about any changes to the marketing strategy or unit economics for the Cabana Club and ELITE membership programs, given their rapid growth, and requested relevant metrics.

Answer

CEO Raj Grover stated that the German Canna Cabana store is largely symbolic, selling only accessories with minimal sales, aimed at establishing the brand for future retail opportunities. He emphasized Remaxion as the primary focus in Germany. Regarding loyalty programs, Mr. Grover highlighted the "exploding" growth of Cabana Club and ELITE memberships, attributing it to brand potency and the unique loyalty loop driving increased frequency and average order value, with no specific changes to marketing or unit economics mentioned beyond continued success.