It’s one of the biggest cannabis producers in Canada, even if it doesn’t really have a full-time CEO in place.
But then, based on the run that privately-held Redecan Pharm has had over the past few years, it appears to be doing just fine without one.
“We all wear different hats here,” said Will Montour, one of the owners of Redecan, who also manages its sales and marketing operations, in a rare interview with BNN Bloomberg. “Right now, you’re talking to the marketing director and one of the head sales guys. This afternoon, I’ll probably mop the floors. And then I’ll go in the back and help with packaging.”
The company’s success is a far cry from its early days in 2014 when Rick Redekop founded the company as one of the first cannabis producers to obtain a licence from Health Canada to grow medical marijuana. Since then, Redekop added Montour and his family (his brother Peter manages the production side of the business) as well as members of the Hill family, who are behind the Grand River Enterprises tobacco empire, joined Redecan’s ownership group.
It’s an untraditional and lean management structure, especially compared to the rigidness seen in other corporate-heavy cannabis companies. But it seems to be working.
While Montour declined to provide revenue or profit figures, the company is the third-biggest in Canada with nine per cent of the recreational market, behind Aphria Inc. and Canopy Growth Corp., and eclipsing other well-heeled players like Tilray Inc. and Aurora Cannabis Inc., according to recent Headset figures. It’s also the leading seller for pre-rolls and oils, according to Headset.
“If I want to do something, if we see a trend, if I wanted to make a change, I’ll call my brother,” Montour said. “If he says, ‘Yes,’ we just do it. We don’t sit there and we don’t have a meeting about the meeting and then set up a board meeting. Our board is me, my brother and our other partner, Rick.”
Redecan has no plans to tap public markets, despite getting frequent calls to do so, Montour said.
“If you asked me two years ago, having this unlimited bankroll that some of these other companies had, I would have said, ‘Yeah, we would [have gone public.’ It would have been nice to have a little bit more money to throw around,” he said. “But I think having that big wallet kind of backfired on a lot of people.”
The company also doesn’t have any immediate ambitions to be a significant player in the U.S., an area that is top of mind for much of the Canadian market, Montour said. He also said there’s also no significant M&A plans either, as the company “has its hands full in the categories we’re in.”
His next move, however, will see Redecan employing its low-price, no-nonsense strategy to the edibles market with the release of its “Rededibles” gummies.
“We wanted to let the dust settle a little bit,” Montour said. “Let everyone come out of the gates. Let’s see what works. Let’s see what doesn’t work.”