Continue to Site »
Site will load in 15 seconds
Advertisment: Fluence » Fluence Order 95 » CBT ROS Banner 970x250 - Start June 18 » FLU-DBA_SPYDR3_970 x 250

SNDL Streamlines Cannabis Operations to Enhance Competitiveness, Profitability

The Canadian licensed producer is consolidating its cultivation activities with a goal of becoming profitable by 2024.

Canada
Adobe Stock

Tony Headshot

CALGARY, Alberta, Oct. 19, 2023 – PRESS RELEASE – SNDL Inc. announced additional optimizations of its facility footprint to enhance the competitiveness and profitability of its Cannabis Operations segment. The company will consolidate all cultivation activities at its Atholville, New Brunswick, facility following the centralization of SNDL's manufacturing, processing and production operations to Kelowna, British Columbia.

Advertisment: Cannabis Business Times » Cannabis Business Times Best Cannabis Companies to Work For » CBT Best Companies 2026 ROS Parallax Reveal » bcc-ads-730x570
Advertisment: Cannabis Business Times » Cannabis Business Times Best Cannabis Companies to Work For » CBT Best Companies 2026 ROS Parallax Reveal » bcc-ads-730x570

"In the past year, we've transformed our facility footprint with a clear goal of achieving profitability in our Cannabis Operations by 2024," said Tyler Robson, SNDL's president, Cannabis. "As a result, we have taken the difficult but necessary steps to simplify operations throughout our business, which includes the closure of our Olds, Alberta, facility.

Advertisment: Hydrofarm » Hydrofarm Order 113 » CBT ROS 300x250 Medium Rectangle » PhotoBio MX2 Med Rectangle Ad

“Through our facility reorganization, we expect to capture increased margins from more sustainable fixed operating costs and leverage strategic procurement opportunities to achieve material cost reductions. This initiative reinforces SNDL's commitment to long-term sustainable cash flow through streamlined manufacturing operations and reduced reliance on high-cost cultivation, ensuring we deliver on both our customer and shareholder promise."

Advertisment: Hanwha Vision » Hanwha Vision Order 78 » CBT ROS 300x250 Medium Rectangle June 2025 » Hanwha January Ad

SNDL expects optimizing its facility footprint to result in more than $10 million in annual savings from its Cannabis Operations segment through a reduction in fixed overhead, power costs, and labor efficiencies. These cost savings are in addition to the previously announced $18.2 million of annualized cost savings since the acquisition of The Valens Company Inc. on Jan. 17, 2023. In connection with the closing of the Olds facility, the company expects to record any related noncash impairment charges during the fourth quarter of 2023.

The Atholville facility will continue to focus on cultivation, research and development, and supply chain efficiencies with an aim to realize additional cost savings while ensuring no disruptions to the availability of SNDL's current product portfolio. In line with this strategic transition, SNDL expects to expand its operations in Atholville, creating potential employment opportunities in the area.

Advertisment: Hydrofarm » Hydrofarm Order 113 » CBT ROS 300x250 Medium Rectangle » PhotoBio MX2 Med Rectangle Ad
Advertisment: Hydrofarm » Hydrofarm Order 113 » CBT ROS 300x250 Medium Rectangle » PhotoBio MX2 Med Rectangle Ad
Page 1 of 3
Next Page
Advertisment: Greentank » Greentank Order 92 » CBT ROS Mobile Adhesion 360x120 June 2025 » cbt-mobile-gt-shop