4Front Ventures Corp. (PNK:FFNTF) Q3 2023 Earnings Call Transcript

Leo Gontmakher: I can feel that one too. What we’ve seen at our location so far, at least over the last six months of data that we’ve been looking at very closely is that our average basket sizes have actually held up pretty strongly. It’s foot traffic that we’re more challenged with and I think that’s just a direct result of having more local competition. So we’re still seeing strong consumer demand. We happen to have, because of the nature of forefront history, we happen to have a low cost production model and so our strategy going into Illinois was to come out with our Legends brand of Flower, our Crystal Clear brand and vape, which were already fairly value-oriented. So I think we may be sort of a little bit insulated from some of that behavior because we’ve been in the right target consumer segment all along.

But we’ve also seen a strong sell through of our Premium Island brand, which is priced, I want to say almost up to a 50% premium in Illinois to our Legends brand in certain cases. So we’re feeling pretty good about it all around. It feels pretty healthy.

Jesse Redmond: Okay, that’s great. Thank you very much.

Andrew Thut: Thanks, Jesse.

Operator: There are no further questions at this time. I will now hand over to Leo Gontmakher for closing remarks.

Leo Gontmakher: As always, I’d like to extend my thanks to everyone who joined today’s call. Your engagement and continued support are invaluable to us. A special thanks also to our dedicated team whose tireless efforts and commitment have been the bedrock of our progress. As we move forward, we remain steadfast in our mission, committed to excellence and enthusiastic about the opportunities that lie ahead. Together, we will continue to navigate the challenges and celebrate the successes that our collective journey brings. Thank you all once again, and we look forward to updating you on our next call.

Operator: Ladies and gentlemen, this concludes today’s conference call. Thank you for your participation. You may now disconnect.