St. Stephen, NB-based Stewart Farms sells its cannabis bath bombs in government retail outlets like any other THC-based product, but the value proposition it offers customers is quite different.

Chief Executive Tanner Stewart founded the company in April 2020, inspired by his experiences operating Edmonton construction company Field-Max Industrial and wishing for products similar to the ones he now sells. He said in an interview he has positioned the Stewart Farms’ line of cannabis-infused wellness products, which also includes offerings like joint balms and body lotions, to compete with soaps and cosmetics sellers like British retail giant Lush rather than with traditional cannabis products.

“Depending on what non-medicated bath bomb you might buy from a company like Lush, as an example, you might spend $13 to $16 on a single bath bomb, but if you buy one of our triple packs, that can bring the average down as low as $12 a bath bomb,” said Stewart.

“Our medicated bath bombs would be up against non-medicated bath bombs, in general, and you’re going to get all this additional benefit using a Stewart Farms bath bomb.”

Stewart Farms launched its first products in January of 2021, and now sells across Canada. Manufacturing happens in-house at Stewart’s cannabis farm in St. Stephen’s, where he employs 25 to 30 people at any given time.

As a supplement to the wellness products business, Stewart Farms also cultivates high-end cannabis plants for the Australian medicinal market. The deal is the result of Stewart having been approached by an importer for that country who was seeking new sources of product amidst growing international demand.

“The international export market in general is incredibly exciting for Canadian cannabis companies right now,” said Stewart. “You hear about oversupply in the market. Well, if you have a product that is, let's say of lesser quality, you don’t have a demand for that product.

“But for a company like Stewart Farms, we’re known for our high-end genetics and the quality of how we produce our cannabis. We don’t have nearly enough grow rooms in our farm to (meet demand) for what we can supply to the Canadian and Australian markets.”

Cannabis industry players in Canada have faced a glut of unsold product, with dried cannabis inventory nationally reaching an all-time high in December, according to Health Canada. But Stewart said his company has sold $2.5 million worth of the bath bombs alone, and sales of the wellness products across all lines doubled last year. He expects total sales company-wide to break $3 million in 2023.

Currently, Stewart Farms, which has raised “a few million dollars” from private investors, is looking for additional backing. The money will go towards adding another 8,000 square feet of grow rooms to its 100,000-square-foot production facility to meet robust demand both domestically and internationally. The increase in revenue offered by the extra space will be non-linear, and Stewart estimated the extra room could equate to as much as an additional $3 million to $5 million of annual income.

The company’s existing connection with the Australian cannabis industry, including established logistics channels, also paves the way for an international rollout of the wellness products in the near future.

“We’re at a point now where we have proven international traction and we are significantly under the capacity of what we’re able to sell between Canada and Australia,” said Stewart.