High Tide Inc.(CVE: HITI) (NASDAQ: HITI), a retail-focused cannabis company engaged in the manufacturing and distribution of consumption accessories, is experiencing substantial growth. Driven by strategic acquisitions and rapidly rising store counts, High Tide is registering near triple-digit yearly revenue increases year-over-year—and the growth trajectory heading into 2022 is still very much intact. We interviewed CEO Raj Grover to explain his company’s ongoing success.
Since its founding in 2009, High Tide has become a leader in Canadian bricks-and-mortar cannabis retail and carved out a primary position in the North American and European e-commerce space for hemp-derived CBD and consumption accessories. Their portfolio companies include Canada’s largest discount club retail cannabis chain, several popular and leading CBD brands serving the U.S. and U.K. Combined, online site visits throughout 2020 grew to over 100 million consumers—a number that’s poised to rise sharply in 2021.
High Tide’s vision is to become just another standard industry retailer. According to a recent story by Marketwatch, the impetus for the company’s largest acquisition in its 12-year history—NuLeaf Naturals—is part of a plan to expand its online cannabis marketplace in same way Jeff Bezos built Amazon.com. Instead of books, the chosen products are CBD and consumption accessories. CEO Raj Grover characterizes Bezos as one of his “idols”.
NuLeaf Naturals produces and distributes premium CBD wellness products. With the acquisition, High Tide is again building on a CBD portfolio it believes can become a key growth driver. Despite the foot-dragging by the FDA which has throttled sales in the U.S.. long term growth projections look robust. Fortune Business Insights projects that the market will reach US$56 billion by 2028—equating to a compound annual growth rate of 47%.
Again, led by both strong organic retail growth and fueled by strategic acquisitions, High Tide is experiencing a huge revenue and store count surge. According to Raj Grover:
So, you know, we’re looking pretty good in terms of growth. We’ve had a ton of growth Shadd—we’ve gone from just $8.7 million dollars of revenue in 2018, to approximately, I think, 2021 over $200 million dollars or close to that number. And, you know, if you look at bricks & mortar we’ve gone up from… 63 stores in November 2020 to now 104 stores and I anticipate ending this year at 110 stores. And I’ll tell you this Shadd, you know, we’re firing on all cylinders.
Click on the embedded link to see our inaugural interview with High Tide CEO Raj Grover, in his own words.