The Globe and Mail reports in its Tuesday edition that some of the biggest cannabis players have spent much of 2021 acquiring smaller pot producers for hundreds of millions of dollars in an attempt to boost revenue and expand market share, but more often than not, these deals have failed to accomplish either of those goals. The Globe's Vanmala Subramaniam writes that 2021 is the year of consolidation in the Canadian industry -- Aphria and Tilray merged to form the largest pot company in Canada by revenue, Quebec's Hexo spent more than $700-million buying three cannabis producers (Zenabis, 48North and Redecan), and Canopy scooped up craft producers Ace Valley and The Supreme Cannabis for about $485-million. Months later and despite the acquisitions, some of these cannabis giants are still seeing declining revenue and fluctuating demand for their products, forcing them to cut jobs and close facilities that they had just acquired. "I don't think any of these companies have solved the puzzle yet of how to build and maintain market share," said Aaron Salz at Stoic Advisory in Toronto. Canopy, for instance, has suffered shrinking revenue for the third straight quarter despite the addition of Ace Valley and Supreme.
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