“The award-winning infused pre-rolls have been a huge hit among both lifestyle and medicinal consumers in markets like Washington and Massachusetts, and we’re confident our customers in Illinois are going to fall in love with our Terp Stix™ singles…,” said 4Front EVP of Retail Operations, Gabe Mendoza.
According to New Frontier Data (NFD), total legal cannabis sales are expected to grow at a CAGR of 16%, reaching $43 billion by 2025. Furthermore, NFD’s study concluded that in 2020, illicit national cannabis demand and consumption was estimated to be over $65 billion. So, where do pre-rolls fit into this equation? In 2020, sales of cannabis pre-rolls surged almost 50% in key adult-use markets, surpassing forecast estimates during the global pandemic. Moreover, pre-rolls are currently the second fasted growing product category among cannabis consumers, indicating a noticeable demand for prepackaged goods.
“With more than 20 recreational cannabis brands and 2,000 products, we believe our future success lies in our ability to bring first-rate, reasonably priced finished goods to market in a timely manner. As we look to add additional value to both our customers and shareholders, we remain focused on improving our operational efficiencies, streamlining our cultivation and production methodologies and capitalizing on our speed and agility in bringing products to market to gain a competitive marketplace advantage.” continued Gabe Mendoza.
As advertised by 4Front, the Company’s Terp Stix™ singles are designed specifically for cannabis consumers who have a high tolerance. In that case, count me out. However, if you’re looking for a high quality pre-roll, a trip to Illinois may be worth your while if you’re in the US. In addition to 4Front’s Terp Stix™ launch, the Company recently secured land and funding for a new cultivation and production facility in Illinois with groundbreaking expected to occur in Q3 2021.
According to the 4Front’s Q1 2021 results, the Company’s sales performance exceeded all internal projections, growing from USD$9,755 to USD$20,080 year-over-year. With this in mind, 4Front’s award-winning Terp Stix™ could provide the Company with additional sales momentum and brand presence in Illinois. Aside from Illinois, 4Front has also signed a distribution agreement with Nabis, a leading wholesale cannabis distributor to more than 750 stores in California. This development will go hand-in-hand with 4Front’s state-of-the-art 170,000 square foot production facility in Commerce, California, which is expected to open to Q2 2021.
4Front’s share price opened at $1.42, down from a previous close of $1.48. The Company’s shares are down -2.70% and are currently trading at $1.44 as of 10:26AM ET.