Sundial Growers Inc. has entered into a sales and distribution agreement with Choklat Inc., a Health Canada-licensed chocolatier, allowing Sundial to continue to expand its product portfolio and enter the edibles market.
As part of the contractual arrangement, Sundial and Choklat will launch a cannabis-infused confectionary brand, offering a selection of chocolate bars, drinking chocolate and infused sugar, all containing 10 mg of THC, the highest amount legal to sell in a single edible serving in Canada. Both companies expect to scale the collaboration across the country, with the first product targeting to be in-stores in Alberta ahead of the holiday season.
"We quickly understood that to expand our portfolio and enter the edible market, we needed to seek a reputable partner with tremendous expertise on craft chocolate confections," said Sundial CEO Zach George. "This partnership allows us to further leverage our sales and distribution capabilities and infrastructure with low capital intensity. We are excited to partner with an established Alberta brand such as Choklat to provide products that will appeal to chocolate and cannabis lovers."
Under the terms of the agreement, Choklat will produce and package the products and Sundial will use its sales and distribution infrastructure to get the product on retailers' shelves. This agreement will enable both companies to capitalize on what they do best, which is produce conventional chocolate products for Choklat and produce premium cannabis products for Sundial.
"For the past 12 years, Choklat has focused solely on innovation and quality and we are excited to partner with Sundial and provide our premium products to the cannabis consumer," said Brad Churchill, CEO of Choklat Inc. "Sundial's national presence through their supply chain and customer relations at the provincial and retail level will allow the Choklat brand to get to market and expand over time. This is a great opportunity for two grassroots Alberta companies."
Choklat has a proven track record of producing craft chocolate confections, using the best quality ingredients. Choklat products are currently available in 110 groceries stores across Alberta and is producing its cannabis-infused confections in its 6,000 sq.-ft. facility in Calgary, Alberta. Sundial will ensure rigorous testing protocols are in place to guarantee the high-quality products its consumers are used to, as well as using only cannabis products with no fillers, additives or artificial flavoring.