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Right place, right time

Flowr is one of the biggest licensed producers in the Okanagan. This is part one of the oz.’s interview with the company’s CEO Vinay Tolia.


By David Wylie

“Call it right place, right time.”

That’s how Vinay Tolia, CEO of The Flowr Corporation, describes the rise of its BC Pink Kush to the No. 1 spot in the coveted Ontario market.

Tolia says just like everyone else, Flowr didn’t really know what rec consumers would gravitate toward two years ago.

As it turns out, it happened to be Pink Kush.

“We adjusted our strategy to really lean into that strain,” says Tolia.

It’s paid off.

“That Pink Kush has really connected. It’s the No. 1 selling strain in Ontario, which is obviously a coveted spot,” he said, adding the feat is even more impressive considering BC Pink Kush is a pricier premium product.

The best-selling bud was grown in Flowr’s state-of-the art facility on the border of Kelowna and Lake Country. The company has its HQ in Toronto, the capital of cannabis business.

Flowr’s BC Pink Kush is impressive. Photo: David Wylie/the oz.

Kelowna 1 is an 85,000-square-foot indoor facility that’s capable of producing 10,000 kilos of cannabis. It contains 20 highly controlled grow rooms that are about 1,730 square feet each.

Tolia says consistency is an overlooked aspect of growing.

“There’s no central body that checks each strain to make sure that it is what they… that it has the correct lineage and all that,” he tells the oz. in a call from Toronto.

You can have the exact same genetics, but the plants are unique at the chemical level depending on the conditions under which they are grown.

Flowr can grow within a tight band of THC levels.

“What the consumer wants is consistency,” he said.

BC Black Cherry and Lilac diesel are the next strains to hit the market.

Prior to joining Flowr, Vinay Tolia was the managing member of Bengal Capital Trading LLC, a derivatives trading firm. He’d previously held senior roles with investment banking firms Peter J. Solomon Company and hedge fund Midtown Capital. Photo: Flowr

Flowr is only weeks to months away from opening the Hawthorn R&D Facility, located adjacent to Kelowna 1, says Tolia.

The facility is focused on advanced cultivation techniques and systems; such as growth media, nutrient formulations, irrigation and lighting systems, plant genetics and integrated growing systems. It’s operated as part of a strategic alliance with Hawthorne Gardening Company.

There’s an enormous amount of engineering that went into the facility, says Tolia.

Currently, no further significant expansions are planned for the Okanagan.

“We don’t want to be like some of these other cannabis companies that really overbuilt their facilities,” he said. “For any business to survive long-term it’s got to be profitable, so if we want to keep growing in Kelowna and make everyone happy that’s got to be our main priority.”

The Okanagan Valley is a beautiful place. The end of this rainbow is near Flowr’s Kelowna campus.

As for why the company chose to operate in Kelowna…

“We get this question a lot,” he says.

“There’s lots of people who say it must be because of the deep cannabis culture. That’s nice, don’t get me wrong. We’ve definitely benefited from that. The answer is that some of our founding team—our founding team was part of the founding team of MedReleaf in Ontario—they basically fell in love with the Okanagan. They were visiting Kelowna and they said ‘why would we live anywhere else? When I was out there, I started looking online for homes just to see.”

“We’ve seen the quality of talent available in Kelowna steadily increase since we’ve been there.”

In Part 2, we’ll look at Flowr’s branding evolution, its expansion into other parts of the world, the value of its Toronto HQ, and whether drinks are in the LP’s future.

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City staff favour Dutch Love

Dutch Love's store is already built on Main Street in Lake Country—however, it does not sport the new branding. Photo: okanaganz

Lake Country district staff are recommending city council approve a Dutch Love cannabis store in the community’s downtown.

Approval from the district at its Oct. 20 meeting would then send the application by Lightbox Enterprises (aka Dutch Love) on to the provincial government for final approval.

“As of the date of this report, the district has not received any public comment in relation to the advertisements or notices,” says the staff report.

The locations meets the district’s requirements according to its bylaws.

The proposed hours are 9 a.m. to 11 p.m.

It would be the second legal cannabis retail store in the area. There is also an unlicensed store.

The district asked residents and businesses who feel they’re affected to submit feedback.

"Approval may offend individuals in the community who do not support cannabis sales and consumption," says city staff in a section titled 'unintended outcomes.'

Dutch Love, formerly known as Hobo, was the first company to open a store in Kelowna.

Dutch Love Cannabis is a Donnelly Group venture with more than a dozen privately-owned retail cannabis stores locations spread out across BC, Ontario, and Alberta.

The Donnelly Group is behind some of the most popular restaurants, bars, and pubs around Vancouver.

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David Wylie from the oz. appears on the on the latest episode of 
The Cannabis 101 Podcast to discuss the latest in cannabis news.
Check out the new video format!

Valens up yet down

The Valens Company is selling a record number of products; still, they’ve seen gross profits fall from a year ago.

The two developments go hand in hand, as Valens shifts focus away from extraction and into the production of white label products, which has led to a drop in its overall profitability.

In its third-quarter financial results, the Kelowna-based company says gross profit was $7.3 million (39.5% of revenue) for the three months ended Aug. 31. That’s a drop compared to $12.8 million (77.8% of revenue) in the same period of 2019. In other words, Valens is making less cash after subtracting the cost of making and selling products.

Tyler Robson, CEO of The Valens Company

“In the third quarter we saw our pipeline of manufacturing agreements begin to come to fruition, having manufactured a record-breaking 56 SKUS that span four product categories, with formats ranging from disposable vape pens, vape cartridges, oils and oral sprays, to beverages and concentrates,” says CEO Tyler Robson.

Products manufactured by Valens include vapes by Verse and BRNT’s ‘Made By’, which have made their way onto B.C. shelves, among other provinces.

Valens says its product sales this summer made up 83% of net revenue at $15.1 million—up about $5 million from the previous quarter. Net revenue was also up 10% to $18.1 million over a year ago.

“This was driven by both new brand partnerships, and white label and custom manufacturing agreements and existing contracts,” said Robson. “We expect to see further product revenue growth in Q4 as we continue to ramp up these manufacturing agreements to bring a wide variety of 2.0 products to domestic and international markets.”

The company has hinted at upcoming Cannabis 3.0 innovation.

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Quick hits

 Mexican Senate to vote on marijuana legalization bill within the next two weeks. 
 
 Nanaimo RCMP are on the lookout for a man who struck a pregnant woman in the head with a machete while trying to rob her of a cannabis plant.

 SpeakEasy Cannabis Club to add another 13,300 square feet to process its outdoor crop, currently being harvested.

Houseplant Grapefruit & Lemon

Houseplant Grapefruit and Houseplant Lemon sparkling water are both refreshing.

The grapefruit drink has a flavourful edge.

Houseplant Grapefruit comes in a pink can. It is one of the best tasting cannabis drinks on the market. The grapefruit smell is pleasant and the taste is fresh.

Houseplant Lemon comes in a baby blue can. It’s notably subtle, with barely a tastebud touched.

   • Related: Why you can’t buy a six-pack of cannabis beverages

The carbonation in both cans was on point, and you can feel the burn after the first few big gulps.

Both are sativa dominant and have 2.5 mg of THC.

It takes a little while to kick (if you even feel it at all)—from 30 minutes up to two hours.

They are only four calories each, and they are a perfect option for those watching their weight and sugar intake.

Houseplant was founded by Seth Rogan and Evan Goldberg.

David Wylie

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Dad jokes

Why can pirates never finish the alphabet?
Because they always get lost at C.

I can always tell when someone is lying just by looking at them.
I can tell when they're standing too.

In Ancient Rome, there were 4 types of poison.
Poisons I, II, and III would all kill you with varying degrees of pain.
However, Poison IV would just make you really itchy.
 

Coming up...

We're working on:
  • Reviewing a new concentrate dab pen, called Slash, made by Stonesmith,
  • Christina Lake Cannabis has a bumper crop after a perfect growing year, and
  • Two companies are trying to make medical cannabis a better experience
You made it to the end!

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