High Tide CEO Raj Grover On Germany, Canada And The U.S.

Core Insights - High Tide is the largest cannabis retailer in Canada, operating 191 locations across five provinces and recently entering the German medical cannabis market through the acquisition of Purecan [2][5][20] - The company employs a discount club model, offering the lowest prices on a wide selection of cannabis products, both in-store and online [4][20] - High Tide's entry into Germany is seen as a significant opportunity due to the rapid growth of the medical cannabis market there, with sales increasing by 250% since legalization in April 2024 [12][13] Company Overview - High Tide operates under the Canna Cabana brand and has a strong presence in Canada with a focus on retail sales, which account for 94% of its revenue [9][10] - The company also has a portfolio of consumption accessory platforms in the U.S. and international CBD brands [3][4] German Market Entry - The acquisition of Purecan, a profitable pharmaceutical wholesaler in Germany, positions High Tide to capture a significant share of the German medical cannabis market [5][20] - Purecan has an annualized revenue run rate of €15 million with gross margins around 40% and EBITDA margins of 29% [20][21] - High Tide aims to leverage its existing relationships with Canadian producers to secure cannabis supply for the German market [17][18] Market Dynamics - The German medical cannabis market has seen explosive growth, with Canadian cannabis accounting for over 50% of sales [14][15] - High Tide's discount club model is expected to be well-received in Germany, similar to its success in Canada [15][19] Strategic Goals - The company plans to expand its store count in Canada to meet a target of 300 locations, which would increase its national market share to over 15% [62][63] - High Tide is focused on maintaining positive free cash flow while growing its operations, having achieved this milestone by July 2023 [57][58] Competitive Landscape - High Tide views Tilray as a complementary partner rather than a competitor, focusing on retail and wholesale rather than cultivation [33][34] - The company is preparing for potential future entry into the U.S. market but is currently prioritizing its European expansion [42][47]