Cannabis Giants Pivot Amid Falling Prices And Oversupply: Some Turn To Flowers And Veggies
Portfolio Pulse from Patricio Liddle
Canada's leading cannabis producers, including Tilray Brands Inc (NASDAQ:TLRY), Aurora Cannabis Inc. (NASDAQ:ACB) (TSX:ACB), and Village Farms Intl Stock (NASDAQ:VFF), are diversifying their cultivation to include vegetables, fruits, and flowers due to an oversupply of cannabis and falling prices. Aurora expanded into the vegetable and flower sector with a $35 million purchase of Bevo Agtech. Tilray is stepping into vegetable cultivation, and Village Farms International has leveraged its existing foothold in agriculture.
October 19, 2023 | 3:12 pm
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POSITIVE IMPACT
Village Farms International has leveraged its existing foothold in agriculture to maintain consistent EBITDA-positive performance.
Village Farms' existing expertise in agriculture and its strategy of tailoring operations for a lower-price market could potentially give it an edge over competitors and positively impact its short-term stock performance.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 70
NEUTRAL IMPACT
Aurora Cannabis has expanded into the vegetable and flower sector with a $35 million purchase of Bevo Agtech.
Aurora's acquisition of Bevo Agtech represents a significant diversification effort. However, it's uncertain how this will impact the company's short-term stock performance.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
Tilray is diversifying into vegetable cultivation to mitigate the impact of cannabis market saturation.
Tilray's move into vegetable cultivation is a strategic decision to diversify its product portfolio and mitigate the impact of cannabis oversupply. However, it's unclear how this will affect the company's short-term stock performance.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80