TORONTO — Coffee Time is partnering with Huge Shops, a Toronto-based cannabis retailer, and FSD Pharma Inc. in a $1.3-million investment deal that could see at least 10 Coffee-Time locations turned into cannabis stores.
“The legalization of cannabis in Canada presents tremendous opportunity for companies across a number of industries that have a retail footprint. We’ve been observing closely what’s been happening in the Cannabis space and what other brands have been doing within the coffee space,” says Steve Michalopoulous, VP of Brand Development at Chairman Brands — parent company of Coffee Time.
“Aligning our coffee brand with Huge Shops presents the opportunity to carefully evaluate our real-estate network and potentially maximize the real estate to the benefit of all stakeholders. We were very careful to strategically align ourselves with a group that has the wherewithal and capability of building a sustainable long-term business.”
The first retail shop is expected to open by April 1, 2019. Huge Shops has identified 10 initial key locations across Ontario that meet the company’s strategic objective to become a premiere recreational-cannabis supplier.
The stores will be branded and operated independently from Coffee Time and the deal would be contingent on Huge Shops getting the necessary approval by the Alcohol and Gaming Commission of Ontario.
“Huge Shops’ strategic alliance with Chairman’s Brands enables the company to quickly create a network, with a well-established consumer base, in key demographic areas throughout the province. FSD Pharma through its investment in Huge Shops, will offer leading cannabis products to consumers in the province,” says Anthony Durkacz, executive co-Chairman and co-founder of FSD Pharma.