“We will continue to employ a talented team in Alberta, operate an Edmonton office and remain committed to our business in Canada as a whole,” Aurora Cannabis’ vice president of communications Michelle Lefler told Global News in an email.
“This decision was not taken lightly. The company continues to make tough yet responsible changes to optimize our business to meet the challenges and opportunities of the cannabis industry and position Aurora for long-term global success.
“Our patients and consumers in Alberta can continue to rely on Aurora as a provider of premium cannabis they trust,” Lefler wrote.
Aurora Cannabis’ Aurora Sky facility in Edmonton, May 12, 2022.
Global News
“Aurora’s roots will always be in Alberta. We are grateful to all Albertans for their ongoing support of our business. Most importantly, we want to recognize the hard work of our employees and thank them for their contributions.
“During this transition, we are committed to supporting all employees who are impacted by this decision and will provide a full suite of resources to assist them.”
For their part, officials at the Edmonton International Airport are thinking of the affected employees and workers.
“Aurora Cannabis is a valued tenant at EIA and we are sorry to see this announcement related to its Aurora Sky facility,” said Myron Keehn, EIA’s vice president of air service and business development. “We need to have further discussions with the company before we can comment on what the future looks like for this building and EIA.”
Aurora Cannabis created its headquarters in Edmonton in 2018.
The Edmonton-based company announced job cuts in December 2020. The workforce at Aurora Sky near the Edmonton International Airport — one of the world’s largest cannabis facilities — was scaled back by 75 per cent. That meant 214 workers lost jobs at that time.
2:00 Aurora Cannabis to close facility south of Edmonton
Aurora Cannabis to close facility south of Edmonton – Sep 22, 2021
“The market, when it first began, we didn’t know how it would look five years down the road, or even three years down the road,” said Kyle Murray, dean of the Alberta School of Business.
“It turns out — maybe not surprisingly — that price is incredibly important to consumers. The Aurora Sky facility, while it was built with a lot of technology and to create a really premium product, it’s not as cost effective as some of the other producers. In a market where consumers want lower prices, that facility wasn’t really designed to deliver.”
1:49 Cannabis cutbacks in Alberta: Where the industry stands after two years of legalization
Cannabis cutbacks in Alberta: Where the industry stands after two years of legalization – Dec 17, 2020
When the facility opened, Murray said it was clear it was built to produce a premium product, but that comes at a higher price point and cost.
“I remember thinking at the time… it was really a high-end facility and it would really require at least part of the market to be willing to pay premium prices.”
He said the cannabis industry is now adjusting to what the market — and consumers — want. Demand, he said, just isn’t at the level of supply.
“Probably, in the initial excitement, people overestimated demand and how many people wanted the product and I think they underestimated how price sensitive people would be and how important price would be in the decision.
“Demand is not what we initially thought it might be and prices are lower and there’s more pressure for prices to be lower from the consumer.”
1:35 Aurora Cannabis downsizing part of ‘right-sizing’ industry: analyst
Aurora Cannabis downsizing part of ‘right-sizing’ industry: analyst – Jun 23, 2020
On Thursday, Aurora Cannabis outlined plans to save an additional $70-$90 million by the end of H1 fiscal 2023.
Its efforts to save costs of goods sold “now include the closure of the Aurora Sky facility in Edmonton (previously announced to be operating at approximately 25 per cent capacity), in keeping with our diversified business portfolio, prudent approach to capital allocation, and our strategy in the Canadian adult-use market to focus on higher margin premium categories,” the company’s news release said.
The fiscal update showed Aurora Cannabis’ medical cannabis net revenue was up eight per cent from the year before. That revenue growth was driven by the international medical cannabis business, the company stated.
Its consumer cannabis net revenue decreased to $10.3 million from $14.4 million the previous quarter, due mainly to “industry-wide pricing pressures across our portfolio and exacerbated by retail store closures in key provinces.”
“During Q3, we continued focusing on our global medical cannabis business because it is both defensive and stable, with cash gross margins that exceed 60 per cent,” CEO Miguel Martin said in Aurora’s news release Thursday.
“In terms of the Canadian adult-use market, we continue to adjust to current conditions, are excited for future contributions from the Thrive team, and are committed to a continuous stream of innovation, including advancing our premiumization strategy.”
In November 2020, Aurora Cannabis said it was indefinitely pausing operations at its Aurora Sun property in Medicine Hat, a decision that would result in about 30 layoffs.
In June of that year, the company laid off 700 workers and announced plans to cease operations at five facilities in Saskatchewan, Ontario, Alberta and Quebec.
1:45 Behind-the-scenes tour of Aurora Sky
Behind-the-scenes tour of Aurora Sky – Oct 9, 2018
TORONTO – Roots Corp. may have built its brand on all things comfy and cosy, but its CEO says activewear is now “really becoming a core part” of the brand.
The category, which at Roots spans leggings, tracksuits, sports bras and bike shorts, has seen such sustained double-digit growth that Meghan Roach plans to make it a key part of the business’ future.
“It’s an area … you will see us continue to expand upon,” she told analysts on a Friday call.
The Toronto-based retailer’s push into activewear has taken shape over many years and included several turns as the official designer and supplier of Team Canada’s Olympic uniform.
But consumers have had plenty of choice when it comes to workout gear and other apparel suited to their sporting needs. On top of the slew of athletic brands like Nike and Adidas, shoppers have also gravitated toward Lululemon Athletica Inc., Alo and Vuori, ramping up competition in the activewear category.
Roach feels Roots’ toehold in the category stems from the fit, feel and following its merchandise has cultivated.
“Our product really resonates with (shoppers) because you can wear it through multiple different use cases and occasions,” she said.
“We’ve been seeing customers come back again and again for some of these core products in our activewear collection.”
Her remarks came the same day as Roots revealed it lost $5.2 million in its latest quarter compared with a loss of $5.3 million in the same quarter last year.
The company said the second-quarter loss amounted to 13 cents per diluted share for the quarter ended Aug. 3, the same as a year earlier.
In presenting the results, Roach reminded analysts that the first half of the year is usually “seasonally small,” representing just 30 per cent of the company’s annual sales.
Sales for the second quarter totalled $47.7 million, down from $49.4 million in the same quarter last year.
The move lower came as direct-to-consumer sales amounted to $36.4 million, down from $37.1 million a year earlier, as comparable sales edged down 0.2 per cent.
The numbers reflect the fact that Roots continued to grapple with inventory challenges in the company’s Cooper fleece line that first cropped up in its previous quarter.
Roots recently began to use artificial intelligence to assist with daily inventory replenishments and said more tools helping with allocation will go live in the next quarter.
Beyond that time period, the company intends to keep exploring AI and renovate more of its stores.
It will also re-evaluate its design ranks.
Roots announced Friday that chief product officer Karuna Scheinfeld has stepped down.
Rather than fill the role, the company plans to hire senior level design talent with international experience in the outdoor and activewear sectors who will take on tasks previously done by the chief product officer.
This report by The Canadian Press was first published Sept. 13, 2024.
VANCOUVER – Mediated talks between the union representing HandyDART workers in Metro Vancouver and its employer, Transdev, are set to resume today as a strike that has stopped most services drags into a second week.
No timeline has been set for the length of the negotiations, but Joe McCann, president of the Amalgamated Transit Union Local 1724, says they are willing to stay there as long as it takes, even if talks drag on all night.
About 600 employees of the door-to-door transit service for people unable to navigate the conventional transit system have been on strike since last Tuesday, pausing service for all but essential medical trips.
Hundreds of drivers rallied outside TransLink’s head office earlier this week, calling for the transportation provider to intervene in the dispute with Transdev, which was contracted to oversee HandyDART service.
Transdev said earlier this week that it will provide a reply to the union’s latest proposal on Thursday.
A statement from the company said it “strongly believes” that their employees deserve fair wages, and that a fair contract “must balance the needs of their employees, clients and taxpayers.”
This report by The Canadian Press was first published Sept. 12, 2024.
MONTREAL – Travel company Transat AT Inc. reported a loss in its latest quarter compared with a profit a year earlier as its revenue edged lower.
The parent company of Air Transat says it lost $39.9 million or $1.03 per diluted share in its quarter ended July 31.
The result compared with a profit of $57.3 million or $1.49 per diluted share a year earlier.
Revenue in what was the company’s third quarter totalled $736.2 million, down from $746.3 million in the same quarter last year.
On an adjusted basis, Transat says it lost $1.10 per share in its latest quarter compared with an adjusted profit of $1.10 per share a year earlier.
Transat chief executive Annick Guérard says demand for leisure travel remains healthy, as evidenced by higher traffic, but consumers are increasingly price conscious given the current economic uncertainty.
This report by The Canadian Press was first published Sept. 12, 2024.
