This week wasn’t an earth-shaking one for marijuana stocks. That’s in some contrast to the previous frame, which saw several noted companies in the sector deliver their quarterly earnings.
Yet as usual, there were some meaningful developments in this ever-active “green” corner of the economy. Let’s dive right into it.
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Tilray’s EU distribution deal
Tilray‘s (NASDAQ:TLRY) Portugal cultivation and distribution facility is about to become a notably busier place. The company announced that it signed its first deal to ship from there to Germany, to supply a rapidly developing medical cannabis market in that country.
Under the terms of the arrangement, signed with privately held German medical cannabis importer and distributor Cannamedical Pharma, Tilray will ferry $3.3 million worth of green medicine to customers in the big European nation. Tilray says the shipment should be completed in the fall.
This is a milestone for the company, as it’s the first deal it’s signed to supply from Portugal not only Germany, but any European Union (EU) country. It also represents a quick launch for shipments from Portugal, as the facility only began harvesting product in March before its official opening the following month.
One big strategy most major marijuana stocks share is their desire to ramp up international operations in “cannabis-friendly” countries such as Germany, which legalized medical marijuana in 2017. The Cannamedical deal gives Tilray a major step on that path, even if the price tag of the contract is relatively modest — for comparison, Tilray earned almost $46 million in revenue in its most recently reported quarter.
MedMen promises to bring pot to your door
Meanwhile, in the retail segment, MedMen Enterprises (OTC:MMNFF) announced it will roll out a cannabis delivery service. Ripping a page from Amazon.com‘s book, the company said its customers will be able to receive one-day delivery of their goods. For an unspecified amount of time, it won’t charge a delivery fee for the service.
In the press release trumpeting the service, MedMen said it will allow the company to “leverage its leading California retail footprint, robust supply chain, and knowledgeable sales associates to offer customers shorter delivery times, excellent customer service, and superior product knowledge.”
In addition, a new loyalty program has been launched — MedMen Buds. Much like the loyalty programs for retailers of traditional products, members of MedMen Buds will have access to exclusive deals and earn points, and potentially rewards, for qualifying purchases. According to the company, over 40,000 customers have already signed up for the program. So far, signup can only be done in-store.
These are the actions of a retailer that has a higher-end, discerning clientele it would like to keep happy. Just now we don’t know how these new initiatives will affect costs, but at the core they’re smart and logical moves aimed at keeping customer loyalty. They also lift MedMen above less well-funded competition, as many dispensaries are low-key, modest operations that lack perks.