Cronos Group (CRON) The 38th Annual Roth Conference summary

Canadian market dynamics

• Supply and demand in Canada have shifted from oversupply to a shortage as supply came offline and exports to Europe increased, but equilibrium is expected in the future.

• Focus on quality and efficiency has been key, with recent years marked by efforts to keep up with demand and the importance of GrowCo's capacity.

Brand strategy and innovation

• Spinach brand success is attributed to a consumer-first approach, building products to meet demand rather than pushing supply.

• Product differentiation, such as SOURZ edibles and the new Puffers vape, drives brand equity and market share.

• Puffers, an all-in-one vape device, was developed after extensive R&D to address consumer needs for convenience and experience.

Operational expansion and profitability

• Gross margin doubled year-over-year in 2025, with temporary Q4 challenges due to GrowCo's 70% capacity ramp-up and related costs.

• GrowCo expansion enables better allocation of supply across markets, reducing previous growth impediments.