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Aphria unveils a new slate of cannabis brands for Canada’s recreational market

By Jacqueline Havelka
Oct 01, 2018

On Friday Aphria Inc. (TSX:APH) (USOTC:APHQF) unveiled a comprehensive portfolio of recreational cannabis brands that will be for sale in Canada’s recreational cannabis market later this month. Over the last year and a half, the company conducted focus groups and market research geared toward developing these brands, which experts now see as being diverse, representing a number of consumption methods, product types, and price points.

Aphria is regarded by many in the industry as the standard-bearer for pharmaceutical-grade cannabis production in Canada. Their products are pure, and their low-cost production uses some of the latest technology. Still, they have had an up and down year on the markets, and investors hope that this new slate of brands will help set the company onto a path of stability.

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"When we embarked on our journey to develop our adult-use brands, we were committed to truly understanding what cannabis users would look like after legalization," said Megan McCrae, Vice President of Marketing at Aphria in a statement. "We undertook extensive research to understand each segment of the market and build a broad portfolio of brands that would speak to each of those varied and diverse groups. This consumer-centric approach is the cornerstone of every one of our thoughtfully-created brands and will continue to drive our ongoing product development and brand positioning."

Aphria’s new portfolio of brands

Aphria designed the Solei Sungrown Cannabis brand for novice users. The brand contains a selection of curated strains and product formats. The RIFF brand offers high potency offerings for experienced cannabis users. Each Canadian province is responsible for the implementation of recreational cannabis. Solei and RIFF will be sold via online and retail stores in all ten provinces and the Yukon Territory starting on October 17.

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Goodfields brand is also for novice users but geared toward consumers interested in high-quality cannabis from a trusted source. The company will also offer the Good Supply brand as a no-frills, value-priced brand for everyday cannabis use. Both brands are expected to be available in select markets soon after the October 17 date.

Aphria also owns Broken Coast Cannabis as a subsidiary. Broken Coast is a craft grower of premium cannabis B.C.-bud products. The brand is a complement to Aphria’s in-house brands. As a craft grower, Broken Coast grows small batches of the crop on the shores of the Salish Sea, slow-cures the cannabis and hand-trims the flowers. Most markets across Canada will carry Broken Coast product online and in retail stores beginning October 17.

Strong revenues bode well for the recreational cannabis market

In August, Aphria produced a strong Q4 earnings report. The company continues to go toe-to-toe with peers Aurora Cannabis (TSX:ACB) and Canopy Growth (TSX:WEED) (NASDAQ:CGC) in many ways—cannabis production, earnings, cash flow, expansion across the globe. With a $1.39 billion valuation, Aphria has a chance to dominate the Canadian recreational cannabis market. In addition to the extensive market research mentioned above, Aphria has greatly expanded its annual production capacity to 230,000 kilograms by entering into a strategic partnership with Double Diamond Farms. Aphria also acquired Nuuvera, a manufacturer of medical cannabis products.

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Aphria has long been considered the best operator in the cannabis space by some, and their incredible cash flow directly contributes to their ability to keep production costs very low in comparison to other producers in the industry.

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