In this market news, The Green Organic Dutchman Holdings Ltd. (TSX:TGOD), one of the Canadian marijuana stocks, said it is partnering with a newly-created cannabis division of Philippe Dandurand Wines
SmallCapPower | November 22, 2018: The Green Organic Dutchman Holdings Ltd. (TSX:TGOD), one of the Canadian cannabis stocks, announced recently that it has entered into a supply partnership with Velvet Management Inc. The partnership is for the sale and distribution of cannabis to provincial liquor and cannabis boards across Canada.
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Post Canada’s recreational cannabis legalization, Philippe Dandurand Wines created a new company, Velvet Management, to focus on the sales and marketing of cannabis brands. Established in 1968, Dandurand specializes in importing wines from various countries around the world. Dandurand is the largest wine importer/agent in Canada, managing more than $625 million of retail sales across 1,600 stores, and four million cases in annual volume. Dandurand’s brand portfolio is one of the most influential and diverse portfolios in Canada. One in 10 bottles of imported wine in Canada is sold by Dandurand.
Green Organic Dutchman Holdings is expected to make a strong entry into every provincial liquor and cannabis board across Canada for the distribution of its cannabis products via its partnership with Velvet. TGOD is its first cannabis partner and will be exclusive in the certified organic segment. Green Organic Dutchman as the brand owner will maintain responsibility for brand marketing. Sales and distribution with provincial cannabis and liquor boards is a critical aspect to TGOD’s success.
Green Organic Dutchman Holdings President Csaba Reider said, “TGOD’s cannabis is a premium offering, the best experience a consumer can receive. When we began the search for a distribution partner, we wanted the best – a partner with significant distribution capabilities and years of excellence in selling premium alcohol and wine. In Velvet Management we have found that partner.”
Velvet Management President Vianney Aubrecht said, “At Velvet, we are committed to selling only the highest-quality cannabis, TGOD does things the right way, from organic certification, to packaging and branding. It’s a model we are used to in the wine business, and we have very high expectations for the TGOD brand.”
The Green Organic Dutchman Holdings stock trades at a market capitalization of C$877 million with a price-to-book multiple of 2.6x.
Disclosure: Neither the author nor his family own shares in the company mentioned above.
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