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High Tide Inc (HITI): Inside the Costco of Cannabis

Feb 23, 2026
Guest
Raj Grover
Raj Grover, founder and CEO who grew Canna Cabana into Canada’s largest cannabis retailer. He discusses the loyalty-driven discount club, high-performing store economics and rapid same-store growth. Expansion plans span Germany and Europe via Rimexion, white-label product strategy, and a cautious U.S. licensing approach. Locations, unit economics and disciplined M&A are central to the growth story.
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ADVICE

Scale White Label With Differentiated SKUs

  • Do build white-label SKUs that are highly differentiated and manufactured by partner licensed producers to expand margins without vertical growing.
  • High Tide bought Queen of Bud for CA$1M; 32 SKUs drove CA$5M sales and could grow to 20–25% of sales with +6–7% gross margin per SKU.
INSIGHT

1200 Sq Ft Is The Operational Sweet Spot

  • Optimal store format: ~1,200 sq ft, cozy but fully stocked, runs with 2 staff shifts and keeps labor and rent efficient.
  • Raj avoids oversized stores (1,800–2,000 sq ft) that require more staff and inflate labor costs.
INSIGHT

Canada Growth Runway And M&A Tradeoffs

  • Canada still has expansion runway: caps vary by province (Ontario cap 150; Canna Cabana ~95), and provinces like Alberta and Saskatchewan offer room to scale to 350+ stores.
  • Organic ramp-up is slowing due to market saturation, so strategic M&A blocks are being considered to accelerate growth.
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