PEI Cannabis Annual Report 2024

TACTICAL SUMMARY

To be viewed as the preferred source of adult use cannabis, PEI Cannabis has established an accessible sales network and an effective product offering. This remains influenced by rigorous analysis of existing customer insights, and is done with the goal of offering an educational and highly engaging retail experience. Special attention is given to stakeholder engagement in the store network design to ensure the unique sensitivities surrounding cannabis sales do not lead to adverse impacts on the community (e.g., increasing exposure to youth, etc.). To facilitate sustainable interest in PEI Cannabis as a source of adult-use cannabis, PEI Cannabis continued its execution of plans focusing on Sales Channel Design and Customer Service. PEI Cannabis has achieved reasonable short-term success in these areas but has also identified some key challenges and opportunities in terms of sustaining and building on customer engagement and satisfaction in the medium-to-long term.

KEY HIGHLIGHTS

Sales Channel Design

• PEI Cannabis built on its award-winning storefront designs through the development and launch of a completely revamped customer education strategy.

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Customer Experience

• PEI Cannabis exceeded its customer count forecast for a sixth consecutive year, which is thought to be a positive measurement of the Corporation’s ongoing ability to compete and displace the illicit market. • PEI Cannabis staff receive regular training to keep pace with the ever changing cannabis industry in order to provide high quality customer service in our retail stores.

KEY OPPORTUNITIES & CHALLENGES

1. PEI Cannabis has observed substantial growth in the volume of total dried cannabis equivalency of products sold, which it feels represents ongoing opportunities for growth in the domestic market share. 2. New product classes present an opportunity for PEI Cannabis to meet evolving customer preferences and continue displacing the illicit market.

3. There is a short product life cycle due in part to frequent rotation of new product innovations.

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PEICMC 2023-2024 Annual Report