PEI Cannabis Management Corporation - 2019 Annual Report

KEY HIGHLIGHTS Sales Channel Design • Under considerable time constraints, PEI Cannabis deployed an accessible, scalable storefront network tied to geographic distribution and population density. • PEI Cannabis established award-winning storefront designs and deployed the country’s first merchandising program that is executed in partnership with its supplier partners. Customer Experience • During a period of national supply constraints, PEI Cannabis accomplished 94% of its year one SKU target and had no retail disruption related to a lack of product. • PEI Cannabis exceeded its customer count forecast which is thought to be a positive measurement of the corporation’s ability to compete and displace the illicit market. KEY OPPORTUNITIES & CHALLENGES: 1. There remains continued social stigma surrounding cannabis use which creates challenges for PEI Cannabis in terms of shifting cannabis consumers currently purchasing from illicit sources. 2. PEI Cannabis needs to systematically gauge customer service levels in-store, which will be accomplished via an aggregated Customer Experience Score that considers various data points. 3. Incoming product classes present an opportunity for PEI Cannabis to meet evolving customer preferences and continue displacing the illicit market.

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PEI Cannabis Î.-P.-É. • 2019 Annual Report