Delta cannabis grower strikes supply deal with Shoppers

A cannabis producer that has a facility in Delta announced it entered a major supply deal with Shoppers Drug Mart.

Zenabis will be selling dried cannabis and oils through Shoppers’ online platform.

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Shoppers will purchase dried marijuana and cannabis oil (once Zenabis receives its licence to sell oil) from the Zenabis medical branded product line, subject to regulations. Shoppers also has the right to purchase all future products available as laws and regulations allow. Zenabis branded medical cannabis products will then be sold online at cannabis.shoppersdrugmart.ca, as regulations do not allow the sale of medical cannabis in retail pharmacies.

"We are very excited to provide Shoppers Drug Mart with Zenabis products," said Andrew Grieve, CEO of Zenabis, in a press release. "This partnership is very important to us and our strategic goals as a company moving forward, as it strengthens our commitment to serving medical patients across Canada."

The company notes its relationship with Shoppers is a key part of Zenabis’ goal to increase its footprint and create strong relationships with quality retailers, both nationally and internationally. In order to support this growth, Zenabis is focused on increasing its current workforce from 400 employees to 2,500 in the next year to staff its rapidly growing production space.

Zenabis, formerly called International Herbs Medical Marijuana Ltd., has a 25,000-square-foot “state-of-the-art facility” on Annacis Island. The company’s other facility is in Atholville, New Brunswick, and as of last year had about 660,000 square feet of indoor cannabis production space.

The cannabis producer earlier this month announced a merger deal with the aim of becoming one of the major players in the industry in Canada.

The company, owned by Sun Pharm Investments Ltd., announced the takeover of Bevo Agro Inc. to create a new entity called Zenabis Global Inc.

It now gives Zenabis a total footprint of 3.5 million square feet in lands and premises that can be converted into available production capacity in B.C., New Brunswick and Nova Scotia.

Zenabis will be expanding its production capacity to include the conversion of the first 450,000 square feet, out of a total 2.1 million square feet available, of a greenhouse in Langley.

Zenabis last year announced it received a sales license from Health Canada which will allow the company to sell medicinal cannabis online to registered medical patients across the country.

Although Delta’s revised zoning does not allow marijuana dispensaries to set up stores in the city, that restriction does not apply to companies growing product here to conduct online sales.

Sun Pharm also has purchase agreements for recreational cannabis from the B.C. Liquor Distribution Branch as well as the New Brunswick Liquor Corporation, Nova Scotia Liquor Corporation and Yukon Liquor Corporation.

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