Recently, Canadian cannabis company High Tide Inc. announced that they were acquiring Grasscity, the world’s most popular online shop for smoking accessories. This no doubt means significant changes in the industry, big changes for Grasscity, and of course extensive changes for High Tide as well.
Bigger, Better, Faster: A New Grasscity for 2019
This will be an excellent venture for Grasscity for many reasons, the biggest of which being the improvement of the customer’s overall shopping experience. Over the next few months, the company will be expanding their shipping footprint in the US and Canada so that packages arrive as quickly as possible. This will ensure that Grasscity will be not only able to deliver their high-quality products to customers at a rate that was not possible before, but they will also be more competitive not only with direct competitors but also larger online retail giants such as Amazon.com. For those that have always loved Grasscity and would like to participate in its growth as a major part of High Tide, the company is listed on the Canadian Securities Exchange under the stock symbol “HITI”.
This acquisition by High Tide also means Grasscity will gain access to Famous Brandz’s entire catalog. This means that they will now be able to offer their customers a more extensive selection of products from better quality US brands that they recognize and trust.
Grasscity may span worldwide, but 90% of their customers come from the United States. This has made customer service a challenge for the company in the past. With new locations in North America, Grasscity will now be able to dramatically increase their customer service presence in North America, thus enabling them to address customer needs in a much timelier fashion. Customers will now have access to Grasscity’s customer support team in all North American time zones. This will then ensure more profound customer satisfaction and trust, thereby allowing Grasscity to maintain their position as the number one online retailer of smoking accessories and smokers’ lifestyle apparel.
Speaking on the decision, Grasscity Managing Director Filip Ernest had this to say, “High Tide was our preferred purchaser all along the way, because of its management team, business model and future plans.” There should be no doubt here that the combined business acumen and high quality manufacturing prowess of High Tide, along with the near two decades worth of experience and online brand awareness Grasscity has cultivated with their massive social media presence, will have exciting outcomes for both companies. “After leading Grasscity for over 15 years, I’m proud to become part of High Tide and am excited to offer our customers an even better selection of products and services from this point forward.”
Grasscity has plans to launch their brand new site sometime early next year. The new and improved Grasscity site will not only offer customers a wide variety of quality products to choose from, but it will also provide a new and enhanced experience for the customer by featuring customer loyalty programs and the latest available technologies in cannabis e-commerce.
A Perfect Match in Cannabis Commerce
This acquisition will mean great things for High Tide as well. In the past the company focused solely on a business to business model, acting as a wholesaler for both online and brick and mortar retailers. Grasscity in contrast focused on catering directly to and connecting with the customers with their stellar social media presence on Instagram, Facebook and Twitter. The Grasscity Forums allow users to engage with one another and share their own experiences with cannabis consumption and cultivation. The Grasscity digital magazine keeps users informed and entertained with the latest in cannabis news, lifestyle trends, and comprehensive how-to guides. By acquiring Grasscity with their extensive experience in selling directly to customers, as well as benefiting from their massive presence in both the EU and the world of social media, High Tide has now effectively cornered the market in cannabis retail.
This played a significant role in the company’s decision to purchase Grasscity. Raj Grover, president and CEO of High Tide had this to say:
Grasscity is an iconic company with nearly 20 years of valuable brand equity in the cannabis industry. It is a natural fit with High Tide since our revenues come from the same product categories—bubblers, grinders, hand pipes, rolling papers, vaporizers, and water pipes.
By taking on Grasscity’s immense worldwide reach, High Tide has ensured that it has a permanent dominating role in the international cannabis retail industry for many years to come.
A Rising Tide That Will Surely Have an Effect on the Competition
All of this comes at a time when cannabis is being legalized/ decriminalized at increasingly fast rates, stock in cannabis retail is climbing, and more high profile investors are beginning to show interest in the burgeoning industry. “With Grasscity, High Tide is now positioned to be a dominant player in both bricks-and-mortar and online retail, to go along with being a leader in the manufacturing and wholesale distribution of smoking accessories and lifestyle products,” Grover added. This transaction brings together two companies who are icons in the industry, combining them into what will no doubt be an unstoppable powerhouse regarding providing quality products and quality customer service, as well as their combined years of experience and brand recognition, to millions of people across the world. Online and brick-and-mortar retail in the cannabis industry will never be the same.
The acquisition of Grasscity by High Tide no doubt has their competitors’ attention. To stay competitive, they may have to pull measures such as increasing their online presence, beefing up their customer service departments, or lowering the prices of their products. Grasscity, having access to High Tide’s Famous Brandz catalog will be able to offer customers all the best celebrity brands such as Snoop Dogg and Trailer Park Boys. With High Tide’s superior selection and experience in catering directly to businesses and Grasscity’s experience in reaching customers, most will not be able to compete with the massive amount of presence High Tide will have in every sector of the market. Most online smoking accessory retail sites focus on one fundamental niche; High Tide will now be able to focus on all of them.
It will be exciting to watch as the results of this acquisition of Grasscity by High Tide unfold. This move will no doubt shape the industry in the years to come.