Calgary, Alberta-based High Tide Inc. announced that its subsidiary, Fab CBD, has launched a CBD Subscribe-and-Save discount program in the United States. The company is a long established retail-focused cannabis company with bricks-and-mortar as well as global e-commerce assets.
Under the program, customers will be able to customize their orders each month to suit their specific needs, with items from across all Fab CBD product lines, including oils, gummies, topicals, pet treats, and superfoods. Customers will also have the ability to customize their delivery frequency for each individual product in their order within a range of every two to 10 weeks, allowing delivery frequencies to optimally match each customer’s needs for every product.
Also, by opting-in to the Subscribe-and-Save discount program, customers will receive a 20% discount for life on all Fab CBD products that they purchase.
Beyond improving convenience and savings for customers, the new subscription service also presents a distinct financial upside for Fab CBD. By enrolling customers in a service that auto-renews orders, Fab CBD anticipates boosting its lifetime value per customer beyond its current level. Furthermore, this service will allow Fab CBD to cultivate a recurring revenue stream that will be much more predictable than when customers only had the option to manually place their orders.
“The launch of the Fab CBD Subscribe-and-Save discount program is an exciting example of the economies of scale that High Tide is able to leverage due to our forward-thinking acquisition strategy,” said High Tide President and CEO Raj Grover. “High Tide has acquired businesses that have the ability to drive recurring and predictable revenue.”
Grover cited the rapid growth of the company’s Cabana Club loyalty program as well as subscription services, such as those offered by Daily High Club and NuLeaf Naturals.
“Today’s announcement is just the beginning of our drive to bolster our cross-platform synergies and there will be more news to come,” said Grover, “including the planned launch of a Blessed CBD Subscribe-and-Save service for the U.K. market in the near-term.”
Even in the absence of federal marijuana legalization in the U.S., he explained, High Tide is committed to driving revenue growth through initiatives that are already federally-permissible, saying the subscription service is another example of that.
“As we continue to develop more cross-platform synergies, we expect to be able to further grow our revenues by leveraging our diversified cannabis ecosystem through organic innovations such as this, without added capital costs,” added Grover.
High Tide is the largest Canadian retailer of recreational cannabis as measured by revenue, with 112 current locations spanning Ontario, Alberta, Manitoba and Saskatchewan. High Tide has been serving consumers for over a decade through its established e-commerce platforms including Grasscity.com, Smokecartel.com, Dailyhighclub.com, and Dankstop.com and more recently in the hemp-derived CBD space through Nuleafnaturals.com, FabCBD.com and BlessedCBD.co.uk, as well as its wholesale distribution division under Valiant Distribution, including the licensed entertainment product manufacturer Famous Brandz.
