Cronos Bolsters its Spinach® Infused Pre-roll Portfolio with CBG, CBC and CBN

Rhea-AI Summary

Cronos Group Inc. (NASDAQ: CRON) announced an expansion of its Spinach^® brand with new infused pre-roll offerings, reflecting a significant growth in market share. The Spinach^® infused pre-rolls gained 2.5% market share in Q1 2023, rising to 8^th place from 16^th in Q4 2022. The Canadian cannabis pre-roll market grew by 38% year-over-year, with infused pre-rolls comprising approximately 24% of that share. Notable products include Spinach^® Fully Charged Atomic GMO with 35% Total THC and various flavor profiles aiming to enhance consumer experience. Cronos emphasizes innovation and consumer engagement, anticipating continued growth through their new product launches.

Positive

• Spinach^® infused pre-rolls captured 2.5% market share in Q1 2023.
• The pre-roll category increased by 38% year-over-year, indicating positive market conditions.
• Spinach^® brand moved up to 8^th place in pre-roll popularity, improving from 16^th place in Q4 2022.
• Launch of new infused pre-roll products expected to enhance consumer experience and continue driving growth.

Negative

• None.

Spinach^® rose to 8^th place in the pre-roll category, capturing 2.5% market share in Q1 2023, up from 1.4% in Q4 2022¹

In Q1 2023 Spinach^® ranked in the top-10 in all categories it participated in: Flower, Pre-rolls, Vapes and Edibles

TORONTO, April 12, 2023 (GLOBE NEWSWIRE) -- Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) (“Cronos”), an innovative global cannabinoid company, is pleased to announce its expanded infused pre-roll offerings under the Spinach^® brand.

Pre-rolls are one of the fastest-growing categories in the Canadian cannabis market. The category increased 38% year-over-year during the three months ended March 31, 2023, and infused pre-rolls accounted for approximately 24% of the dollar share in pre-rolls during the same period. Utilizing our success in the edibles category as a blueprint for other product formats, Cronos continues to elevate and differentiate the consumer experience by bringing a portfolio of infused pre-rolls to market utilizing our best-in-class, potent genetics, our flavor-forward and terpene-rich formulations and sought-after rare cannabinoids.

The Spinach^® infused pre-roll portfolio includes:

• Spinach^® Fully Charged Atomic GMO
  • 35% Total THC
• Spinach Feelz™ Tropical Diesel THC:CBG
  • 32% Total THC and 5% CBG
• Spinach Feelz™ Mango Kiwi Haze THC:CBC
  • 32% Total THC and 5% CBC
• Spinach Feelz™ Blackberry Kush THC:CBN
  • 32% Total THC and 5% CBN

Following its launch earlier this year, Spinach^® Fully Charged Atomic GMO infused pre-rolls climbed to be the #15 ranked product in infused pre-rolls in March¹. Spinach^® pre-rolls have gained market share since revamping the portfolio last year, moving up to the 8^th most popular brand in Q1 2023¹, up from 16^th place in Q4 2022.

“We have spent a lot of time and effort bolstering our pre-roll offerings and we are very excited to have launched our amazing, new infused pre-roll products under the Spinach^® brand,” said Jeff Jacobson, Chief Growth Officer, Cronos. “Spinach^® products are designed to crank the volume and thrill the senses with cultivars that have flavor-forward, fruity terpenes and aroma profiles, as well as high THC content. These initial launches in the infused pre-roll category are just the beginning of our innovation roadmap and we look forward to continuing to bring new products to market that enhance and elevate the consumer experience.”

Spinach^® Fully Charged Atomic GMO infused pre-rolls are the perfect gift to yourself and your friends on the highest of holidays, 4:20. Spinach^® infused pre-rolls are designed to enhance 4:20 and make it one to remember. The Spinach^® team is celebrating this year with a contest for Spinach^® fans of legal consumption age. Learn more at https://countdown420.spinachfarms.com/

Spinach^® infused pre-rolls are available at retailers in British Columbia, Alberta, Saskatchewan, Manitoba, and Ontario. For more information and availability, please visit https://spinachcannabis.com

¹ HiFyre Retail Analytics – October 2, 2022, to April 1, 2023.

About Cronos
Cronos is an innovative global cannabinoid company committed to building disruptive intellectual property by advancing cannabis research, technology and product development. With a passion to responsibly elevate the consumer experience, Cronos is building an iconic brand portfolio. Cronos’ diverse international brand portfolio includes Spinach^®, PEACE NATURALS^® and Lord Jones^®. For more information about Cronos and its brands, please visit: thecronosgroup.com.

Forward-looking Statements
This press release may contain information that may constitute “forward-looking information” or “forward-looking statements” within the meaning of applicable Canadian and U.S. securities laws and court decisions (collectively, “Forward-looking Statements”). All information contained herein that is not clearly historical in nature may constitute Forward-looking Statements. In some cases, Forward-looking Statements can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “plan”, “anticipate”, “intend”, “potential”, “estimate”, “believe” or the negative of these terms, or other similar expressions intended to identify Forward-looking Statements. Some of the Forward-looking Statements contained in this press release include statements about Cronos’ ability to launch new products and the launch of new products continuing to help increase Cronos’ market share. Forward-looking Statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive risks, financial results, results, performance or achievements expressed or implied by those Forward-looking Statements and the Forward-looking Statements are not guarantees of future performance. A discussion of some of the material risks applicable to the Company can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, which has been filed on SEDAR and EDGAR and can be accessed at www.sedar.com and www.sec.gov/edgar, respectively. Any Forward-looking Statement included in this press release is made as of the date of this press release and, except as required by law, Cronos disclaims any obligation to update or revise any Forward-looking Statement. Readers are cautioned not to put undue reliance on any Forward-looking Statement.

For further information, please contact:

Media Relations Contact:
Emily Whalen
Communications
Tel: (416) 504-0004
media.relations@thecronosgroup.com

Investor Relations Contact:
Shayne Laidlaw
Investor Relations
Tel: (416) 504-0004
investor.relations@thecronosgroup.com

FAQ

What is the recent market share of Cronos Group's Spinach® pre-rolls?

Spinach® pre-rolls captured 2.5% market share in Q1 2023.

How did Spinach® rank in the pre-roll category for Q1 2023?

Spinach® ranked 8th in the pre-roll category in Q1 2023.

What is the growth of the pre-roll category in the Canadian cannabis market?

The pre-roll category increased by 38% year-over-year.

What new products did Cronos Group launch under the Spinach® brand?

Cronos launched a range of infused pre-rolls including Fully Charged Atomic GMO and others.