SMITH FALLS, Ontario — Alimentation Couche-Tard Inc. has stated its intention to maintain its commitment to cannabis retail as one of its partnerships comes to an end.
Canopy Growth Corp. is exiting some of its retail operations in Canada, including a partnership with the Convenience store operator based in Laval, Quebec.
“We remain committed to being part of the cannabis retail landscape in Canada and to being a responsible retailer of age-restricted products,” said a Couche-Tard spokesperson. “We operate several co-located sites in Canada and through our strategic participation in Fire & Flower, we continue to monitor legislative changes in our North American markets and ever-evolving opportunities to improve the customer experience.”
Canopy Growth announced on Wednesday that it has reached agreements to divest its nationwide retail business, which includes more than 20 stores operating under the Tweed and Tokyo Smoke retail banners. Couche-Tard entered into a multi-year deal with Canopy Growth in 2019 to sell marijuana through a Tweed-branded retail store in London, Ontario. This agreement, which included two stores, is now terminated.
Couche-Tard still has a stake in the cannabis game as it is an investor in adult-use cannabis retailer Fire & Flower Holdings Corp. in Toronto.
- Alimentation Couche-Tard Inc. is #2 on the 2022 list of the Top 202 Largest Convenience Store Chains in the United States by Store Count.
OEG Retail Cannabis (OEGRC), an existing licensee partner of Canopy Growth that owns and operates the company’s Tokyo Smoke franchise stores in Ontario, will acquire all of Canopy Growth’s corporate stores outside of Alberta as well as all intellectual property related to Tokyo Smoke. The Tweed retail stores it acquires will be rebranded. 420 Investments Ltd. will also acquire five retail outlets in Alberta. The closing of these transactions is subject to regulatory approvals and other customary closing conditions.
“We are taking the next critical step to make Canopy a premium, brand-driven brand. [consumer packaged goods] cannabis while continuing the company’s strategy of investing in innovation and product distribution to drive revenue growth in the Canadian recreational market,” said David Klein, CEO of Canopy Growth. “By entering into these agreements with organizations that have proven expertise in cannabis retail, we ensure continuity for consumers and team members. With the top-notch leadership demonstrated by the OEGRC and FOUR20, they will continue to serve Canadian consumers with the high-quality in-store experiences that are essential for success in a new industry.
Canopy Growth, of Smith Falls, Ontario, will continue to own and operate the Tweed brand, including its portfolio of consumer, pre-rolled and ready-to-eat flower options.
In the company’s first-quarter fiscal 2023 earnings report, for the quarter ending June 30, 2022, it said recreational net sales were down 28% from the first quarter of 2022, largely partly due to the rapid rise of third-party retail outlets. across the provinces.
Couche-Tard’s global network of convenience stores in 24 countries includes approximately 9,300 locations in North America, including more than 7,100 in the United States, primarily under the Circle K and Holiday Stationstores banners, and approximately 2,100 in Canada under the Circle K, Mac’s and Couche-Tard banners.
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