For much of the COVID-19 pandemic, the leaders of Canada91裸聊视频檚 biggest cannabis companies have spouted lofty ambitions linked to a U.S. pot market they strongly believe is on the brink of federal legalization and will be their ticket to profitability.

While many have made bold predictions and signed a dizzying number of deals to help them break through south of the border, Organigram Holdings Inc. has taken a more modest approach.

But don91裸聊视频檛 count the New Brunswick-based cannabis company out, says its new chief executive.

91裸聊视频�(The U.S.) has to figure into everyone91裸聊视频檚 game plan,91裸聊视频� said Beena Goldenberg, a food industry veteran who took the helm of Organigram on Sept. 9.

91裸聊视频淲hen I was in consumer packaged goods, we always looked to the U.S. There91裸聊视频檚 that old 10:1 rule, which is (the U.S. is) going to be 10 times the size of Canada, so you can91裸聊视频檛 ignore it.91裸聊视频�

Goldenberg 91裸聊视频� the only female CEO of a major publicly-traded Canadian cannabis company 91裸聊视频� is still settling into the role she took over from Greg Engel, who moved to to Vancouver psychedelic startup Clairvoyant Therapeutics.

Engel spent four years in Organigram91裸聊视频檚 top job. He left months after a British American Tobacco subsidiary bought a 19.9 per cent stake to spur production development at the company based in Moncton, N.B.

He ran Organigram conservatively and avoided much of the overbuilding that rivals Canopy Growth Corp., Tilray Inc. and Aurora Cannabis Inc. came to regret when cannabis demand fell short of expectations.

Organigram hasn91裸聊视频檛 been unscathed. It cut hundreds of workers in the last two years, as it tried to better align production capacity with market conditions.

Its most recent quarter brought a $4-million loss, an improvement over the $89.9 million loss recorded during the same quarter last year.

91裸聊视频淥rganigram, I think, has always been very careful on spending and on operating expenses,91裸聊视频� said Goldenberg.

91裸聊视频淏ut we probably left some sales on the table because we weren91裸聊视频檛 building up the capacity and our demand grew faster than our capacity, which is why we91裸聊视频檙e now spending money.91裸聊视频�

Goldenberg likely won91裸聊视频檛 stray from Organigram91裸聊视频檚 prudent template, but will reshape operations with her experience running Hain-Celestial Canada and Canopy91裸聊视频檚 Supreme Cannabis.

Topping her to-do list is overseeing a $38-million investment to expand capacity and grow Organigram91裸聊视频檚 Edison Cannabis Co., Trailblazer, Indi, Shred and Big Bag o91裸聊视频� Buds brands.

91裸聊视频淥ur demand is outstripping our supply, so it91裸聊视频檚 a problem, but it91裸聊视频檚 a good problem to have,91裸聊视频� said Goldenberg.

As the company catches up, ATB Capital analyst David Kideckel warns increased competition, oversupply, value brand proliferation and early production inefficiencies could strain margins, but not for long.

91裸聊视频淥rganigram has launched 84 new SKUs since July 2020, and plans on launching up to 20 more SKUs by the end of Q4/FY21e,91裸聊视频� he wrote in a July note.

91裸聊视频淲e believe that new product introduction will gradually improve the company91裸聊视频檚 sales and margin outlook.91裸聊视频�

Premium offerings such as Edison, Organigram91裸聊视频檚 chocolate truffles and mint lozenge line, will be key as in-store shopping returns and budtender advice becomes more vital.

91裸聊视频淧eople, having tried the value products, are looking for something that91裸聊视频檚 an experience, that91裸聊视频檚 a little bit better, maybe a better flavour or aroma,91裸聊视频� Goldenberg said.

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But the value category can91裸聊视频檛 be forgotten, said Lisa Campbell, chief executive at cannabis marketing company Mercari Agency.

She91裸聊视频檚 noticed premium products are less popular in Alberta and British Columbia than in Ontario, but says Organigram91裸聊视频檚 value brand Shred has widespread appeal.

91裸聊视频淪hred is a product that cannabis retail stores will actually hoard,91裸聊视频� she said. 91裸聊视频淭hey will buy 10, 20 cases at a time, so they definitely have a really loyal following.91裸聊视频�

She warns, however, that companies like Organigram should be careful about their long-term pricing.

91裸聊视频淲e91裸聊视频檙e seeing a lot of companies that are just selling product below cost, and it really negatively impacts the entire market,91裸聊视频� said Campbell.

91裸聊视频淚t has a ripple effect and it91裸聊视频檚 like a race to the bottom.91裸聊视频�

That race is taking place in an increasingly consolidated market.

In recent months, Tilray merged with Aphria Inc., while Canopy snatched up Wana Brands, AV Cannabis Inc. and Supreme.

Hexo Corp. also got in on the action when it bought Zenabis Global Inc. and Redecan.

Organigram acquired the Edibles & Infusions Corp. in April.

Goldenberg thinks that pace will continue for the highly-fragmented industry, though some companies will get more intentional about purchases.

Ultimately, she thinks most won91裸聊视频檛 last.

91裸聊视频淪maller players will either be gobbled up or will go away, and the bigger players will eventually get bigger,91裸聊视频� she said. 91裸聊视频淭hat91裸聊视频檚 what happens in any market as it matures.91裸聊视频�

Those that last will be closely watching the U.S., which allows medical cannabis in about 36 states and recreational use in 13, but has not deemed it permissible under federal law.

Studies show broad support for decriminalizing cannabis, a view also favoured by U.S. President Joe Biden, but Goldenberg doesn91裸聊视频檛 think federal legalization is on the near horizon.

91裸聊视频淚 don91裸聊视频檛 believe legalization91裸聊视频檚 coming imminently. I think it91裸聊视频檚 going to take time,91裸聊视频� she said.

91裸聊视频淭he market has changed so much in a year or two years, so who knows what it91裸聊视频檒l be like two years from now.91裸聊视频�

Tara Deschamps, The Canadian Press

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