SNDL Consolidates Cultivation, Eyes $10M in Annual Savings

The company is looking to streamline its supply chain.

Canadian firm SNDL Inc. (NASDAQ: SNDL) announced operational changes aimed at growing its marijuana segment’s bottom line.

Central to the strategy, the company will consolidate its cultivation at its Atholville, New Brunswick, facility and the closer of its Olds, Alberta, facility.

The move follows SNDL’s previous decision to relocate its manufacturing and processing hubs to Kelowna, British Columbia.

“In the past year, we’ve transformed our facility footprint with a clear goal of achieving profitability in our cannabis operations by 2024,” Tyler Robson, president of cannabis, said in a statement Thursday.

The reshuffling of operations is forecasted to result in annual savings exceeding $10 million for SNDL. That figure builds upon the $18.2 million in projected annual savings that were announced earlier this year, following SNDL’s acquisition of The Valens Co. in January.

While the Atholville facility is set to become a hub for cultivation, it will also play a pivotal role in research and development efforts. It will serve to streamline supply chain processes.

As operations in Atholville gear up, SNDL said it anticipates a potential boost in local employment opportunities.

“Through our facility reorganization, we expect to capture increased margins from more sustainable fixed operating costs and leverage strategic procurement opportunities to achieve material cost reductions,” Robson added. ”

This initiative reinforces SNDL’s commitment to long-term sustainable cash flow through streamlined manufacturing operations and reduced reliance on high-cost cultivation, ensuring we deliver on both our customer and shareholder promise.”

Adam Jackson

Adam Jackson writes about the cannabis industry for the Green Market Report. He previously covered the Missouri Statehouse for the Columbia Missourian and has written for the Missouri Independent. He most recently covered retail, restaurants and other consumer companies for Bloomberg Business News. You can find him on Twitter at @adam_sjackson and email him at

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