Business
How Decibel disrupted Canadian cannabis: Q&A with exec Adam Coates
Decibel Cannabis is a rare breed among licensed producers in Canada.
The company’s ascent to the top of market-share charts in key product categories came not from costly and severely dilutive mergers and acquisitions – a strategy employed by some larger rivals.
As of April, the Alberta-based company said its national share was 7.1% – good enough for second place in Canada’s hotly contested market, though market analytics firm HiFyre had Decibel as No. 1 in the key provinces of Ontario, British Columbia, Alberta and Saskatchewan, according to a recent research note by the Bank of Montreal.
The key for Decibel thus far is being nimble, innovative, financially prudent and having exceptional operations.
“I think it’s not a crazy secret sauce, but it’s really understanding the customer, where they’re going, what they’re looking for and why they’re looking for those things,” Adam Coates, the company’s chief revenue officer, told MJBizDaily in a phone interview.
“And shaping our products and brand offerings to fit that and then having really great customer service.”
For instance, the company’s infused pre-rolls disrupted that cannabis segment, beating out more capitalized rivals.
Coates suggested that what a lot of the big licensed producers forgot to do was ask, “Who’s actually consuming it now?”
Instead, they asked, “Who do we want to consume this five or 10 years from now?”
“And how are we creating products for them that will then lead to more consumers entering the category?” he asked.
“I think they (large rivals) were fishing where the fish weren’t.”
Decibel has reported 10 consecutive quarterly positive adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), the latest being 7.1 million Canadian dollars ($5 million) in the fourth quarter of 2022 and a small net loss of CA$569,000 in the first quarter.
Decibel, which trades as DB on the TSX Venture Exchange, also generated CA$8.3 million in positive cash flow from operations in fiscal 2022 while recording a net loss of CA$4.5 million.
For the final quarter of 2022, however, net income was a positive CA$654,000.
MJBizDaily spoke with Coates about Decibel’s relative success and what the company does differently to stay ahead in Canada’s hypercompetitive cannabis industry.
Can you give an example of how has Decibel has tried something new and failed – and then found a solution?
We had been chasing down infused pre-rolls. We saw what was going on in California and were really excited about it.
When Health Canada issued a memo in August 2021 clarifying that a cannabis product including dried cannabis and a cannabis extract is classified as a cannabis extract product, that gave us clarity on how infused pre-rolls would be categorized by the regulator, and that we could begin production of these types of products.
This ultimately was the green light we needed to roll out our infused pre-roll strategy.
After two or so months, we launched our first infused pre-roll.
It was really exciting for a very short period of time, and then it was devastating really, really quickly. The joints didn’t work. They didn’t pull.
It was a flop for all intents and purposes.
But we really believed in the product and believed in the insights about understanding what consumers were looking for in Canada.
We still felt really good about it. We reformulated the product, came up with a new product and continued pressing forward.
Today, there’s no question we’re the leader in that category and only still growing.
The Ontario Cannabis Store is increasing its margin on some products and lowering it on others. The margin for pre-rolls is doubling to almost 30%. How will that affect the market?
It’s literally the million-dollar question.
I think what you’re going to see is prices (of infused pre-rolls) will rise for the retailer and then to the end consumer.
I think that will impact the velocity and the growth rate you see in this category, which competes really hard with (illicit) market offerings.
That’s not to say there isn’t control within the LP’s hands.
But the LP has to decide whether they’re going to eat the margin and keep the price the same, or if they’re going to pass some along to the retailer and then the end consumer.
That’s a big decision we have to make. We haven’t made our decision in terms of where we’re going with our pricing. That’s to come later on this summer.
I don’t think there’s a lot of LPs out there who are going to be able to handle that reduction in margin, considering that they (infused pre-rolls) are very costly to make, the excise burden on them is huge.
Some of your competitors wouldn’t still be in business were it not for the Bay Street capital spigot. How do Decibel’s executives approach the business differently?
Our executive group has more or less been with the company since Day One, or within the first year.
We don’t have a ton of ego. The belief in what we’re doing, the brands we’re building, the products we’re making, I think really help.
We run really, really lean from a people perspective.
And we’re very, very cautious about making investments and ensuring they have good rates of return.
We’re forced to do that. We’ve been cash-strapped, basically, since 2020, and have been able to grow the business massively without really raising a whole bunch of extra capital.
That’s forced us to be really prudent and fiscally responsible.
I think if you compare where we sit on the market-share table to some of those other companies, I think our leadership team and our senior leaders are much more involved in actually doing the work and helping make sure the business progresses.
That has other benefits, like we understand what’s going on more and making better decisions.
Tell us about a time where you decided to cut off a product that didn’t work out.
As aggressive as we are about launching new products, being innovative and launching new form factors, we’re equally as aggressive in cutting off products that don’t work anymore.
A good example is we launched a whole bunch of different form factors of infused pre-rolls – hash-infused, live resin-infused, kief-infused – and they just didn’t work as well as our champion, which is the distillate-infused products.
So making quick decisions and seeing (what) is clearly not working, understand why it didn’t work and asking if it is something you can overcome by adjusting the positioning or product, or that it is not a viable product/category and move efforts elsewhere.
Hash is a great example. Hash is the top-selling concentrate, and pre-rolls are growing like crazy, so it would reason that a hash-infused pre-roll would make a lot of sense.
But what we figured out is hash consumers like to roll their own joints. They tend to be a bit more of an older demographic that is set in their traditions in how they consume.
They’re not as interested in a pre-roll form factor, and so, instead of trying to keep pushing on something that doesn’t work for the consumer, we moved on and focused on the products consumers want.
How has innovation helped Decibel grow when others barely struggle to maintain what they have?
I think we have a really good handle on what the consumer is looking for, what it is about certain products they’re drawn to, aside from just price.
What we know about the cannabis consumer is that (legalization) is still very new, and they want to try a whole bunch of different things.
Having constant innovation, constantly having something new – even if that’s just a new cultivar or a new flavor – has been really important.
Let’s go back to 2019 and vapes.
We asked, “Why are people buying vapes? What are the things about vapes that they like? And what don’t they like? What are some issues that they’re having?”
We figured out how to position ourselves in the category amongst all those monsters (larger competitors).
It didn’t happen overnight, but in a year and a half, we were the No. 1 vape brand in the country.
I’d be remiss if I didn’t call out a really flexible and hardworking operations team.
You can’t have a strong commercial strategy without an exceptional operations and supply-chain team.
Source: https://mjbizdaily.com/decibel-cannabis-positive-cash-flow-chief-revenue-officer-adam-coates/
Business
EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices
A growing coalition of European industry groups is intensifying pressure on regulators to take decisive action against Google over allegations of unfair search practices that could reshape competition rules across the region’s digital economy.
Investigation Under Digital Markets Act Gains Momentum
The case is being examined by the European Commission under the European Union’s landmark Digital Markets Act (DMA), introduced to curb the dominance of major technology platforms and ensure fair competition.
Launched in March 2024, the investigation focuses on whether Google has been prioritising its own services in search results, potentially disadvantaging rival businesses that rely on online visibility to reach customers.
Industry Groups Demand Swift Action
Several prominent European organizations have jointly urged regulators to conclude the probe without further delay. They argue that prolonged investigations allow alleged anti-competitive practices to continue, putting European companies—especially startups—at a disadvantage.
Signatories include the European Publishers Council, the European Magazine Media Association, the European Tech Alliance, and EU Travel Tech.
In a joint statement, these groups warned that delays in enforcement are affecting innovation, profitability, and growth prospects for regional businesses competing in digital markets.
Google Denies Allegations
Google has rejected claims of bias, stating that its search algorithms are designed to deliver the most relevant and useful results to users. The company has also proposed adjustments to address regulatory concerns.
However, critics argue that these changes are insufficient and fail to address the core issue of market dominance.
Potential Billion-Euro Penalties
If found in violation of the DMA, Google could face significant financial penalties. Under EU rules, fines can reach a substantial percentage of a company’s global turnover, potentially amounting to billions of euros.
Regulators may also impose corrective measures requiring changes to business practices, which could have long-term implications for how digital platforms operate in Europe.
Wider Implications for Big Tech
The case highlights ongoing tensions between European regulators and major U.S. technology firms. In recent years, the EU has taken a more aggressive stance in enforcing competition laws, aiming to create a level playing field for local businesses.
A final ruling against Google could set a major precedent, influencing future enforcement actions and shaping the regulatory landscape for global tech companies operating within Europe.
As scrutiny intensifies, the outcome of the investigation is expected to play a critical role in defining the future of digital competition across the European Union.
AI & Technology
Amazon Faces Potential Criminal Trial in Italy Over €1.2 Billion Tax Evasion Allegations
Milan: U.S. tech giant Amazon is facing the prospect of a major legal showdown in Italy, after prosecutors in Milan formally requested a court to move forward with criminal proceedings over alleged tax evasion totaling approximately ₹12,500 crore (€1.2 billion).
The case targets Amazon’s European division along with four senior executives, marking one of the most significant tax-related investigations involving a global e-commerce platform in Europe.
Trial Push Despite Multi-Million Euro Settlement
The move comes even after Amazon reached a financial settlement with Italian tax authorities in December, agreeing to pay around ₹5,500 crore (€527 million), including interest, to resolve part of the dispute.
Typically, such settlements lead to the closure of criminal investigations. However, Milan prosecutors have opted to proceed, signaling a tougher stance on alleged corporate tax violations.
A preliminary hearing is expected in the coming months, where a judge will decide whether to formally indict the company and its executives or dismiss the case.
Allegations of VAT Evasion Through Marketplace Sellers
At the center of the investigation are claims that Amazon’s platform enabled non-European Union sellers to avoid paying value-added tax (VAT) on goods sold to Italian consumers between 2019 and 2021.
Prosecutors allege that the company’s marketplace structure allowed thousands of foreign vendors—many reportedly based in China—to operate without fully disclosing their identities or tax obligations. This, authorities argue, led to substantial VAT losses for the Italian government.
Under Italian law, online platforms facilitating sales can be held partially liable if third-party sellers fail to comply with tax requirements, a key point in the prosecution’s case.
Italian Government Named as Affected Party
In their filing, prosecutors identified Italy’s Economy Ministry as the injured party, citing significant financial damage resulting from the alleged tax evasion.
Legal experts say the outcome of the case could have wide-ranging implications across the European Union, where VAT systems are harmonized and similar compliance rules apply to digital marketplaces.
Multiple Investigations Add to Pressure
The VAT probe is just one of several legal challenges facing Amazon in Italy. The European Public Prosecutor’s Office is reportedly examining additional tax-related issues covering more recent years.
Meanwhile, Milan authorities are pursuing separate investigations into alleged customs fraud linked to imports from China and whether Amazon maintained an undeclared “permanent establishment” in Italy—potentially exposing it to higher tax liabilities.
In a separate regulatory action, Italy’s data protection authority recently ordered an Amazon unit to stop using personal data from over 1,800 employees at a warehouse near Rome.
Amazon Denies Allegations
Amazon has consistently denied wrongdoing and indicated it will strongly contest the allegations in court if the case proceeds. The company has also warned that prolonged legal uncertainty could impact investor confidence and Italy’s appeal as a destination for international business.
Broader Impact on Europe’s Digital Economy
If the case moves to trial, it could become a landmark moment for the regulation of global e-commerce platforms in Europe. Governments across the region are increasingly scrutinizing how digital marketplaces handle tax compliance, especially in cross-border transactions.
With online retail continuing to expand, regulators are under mounting pressure to ensure that multinational platforms and third-party sellers adhere to the same tax rules as traditional businesses.
Aviation
IndiGo Crisis Exposes Risks of Monopoly: What If Telecom or E-commerce Collapses Next?
Airports across India witnessed scenes of distress and confusion as thousands of passengers were stranded due to IndiGo’s massive flight disruptions. Families with medical emergencies, funerals, and personal crises were left helpless as the airline cancelled hundreds of flights without adequate communication or support.
Passengers described desperate situations — a mother pleading for sanitary pads for her daughter, a woman unable to transport her husband’s coffin, and others stranded while trying to reach family funerals or hospitals. “It was like a lockdown at the airport,” one passenger said, describing the panic that unfolded as IndiGo’s mismanagement crippled operations nationwide.
Root Cause: IndiGo’s Market Monopoly
The turmoil, industry experts argue, stems from IndiGo’s monopolistic control over India’s domestic aviation market. The airline operates nearly 2,100 flights daily and holds around 60% market share — meaning every second plane flying within India belongs to IndiGo.
This dominance has given the company unparalleled influence. When IndiGo falters, the entire aviation system suffers. Passengers are left with few alternatives, as other airlines lack capacity to absorb stranded travellers. The result: skyrocketing ticket prices, chaos at terminals, and total dependence on a single private operator.
Aviation pioneer Captain G.R. Gopinath, founder of Air Deccan, criticised the government’s inaction, noting that on some routes, IndiGo’s economy fares surged to ₹1 lakh. He compared the situation to a hostage crisis, writing that the airline “held the system ransom” and forced regulators to defer new safety rules meant to protect pilots and passengers.
Government Intervention and Regulatory Weakness
The crisis erupted after IndiGo failed to comply with the Flight Duty Time Limitations (FDTL) — rules introduced by the DGCA in January 2024 requiring adequate rest for pilots. Despite having nearly two years to adapt, IndiGo blamed the rule for operational disruptions, citing a shortage of pilots.
Under mounting public pressure, the government stepped in, temporarily relaxing FDTL norms and capping airfare hikes. Officials claimed the move was to protect passengers, but analysts say it exposed the state’s vulnerability to corporate monopolies. “The government had no option but to yield,” said one aviation policy expert, pointing out that ignoring safety regulations for short-term relief could have long-term consequences.
The crisis also rekindled memories of the June 2025 Air India crash near London, which claimed over 240 lives. Experts warn that compromising pilot rest and safety standards to maintain flight schedules could risk another tragedy.
If Telecom Giants Fail: A National Paralysis
The article raises a troubling question — what if a similar crisis struck the telecom sector, where Jio and Airtel together control nearly 80% of subscribers and serve over 780 million users?
If both networks failed simultaneously, the repercussions would be catastrophic. Internet shutdowns would halt UPI transactions, online banking, OTP verifications, video calls, OTT streaming, and emergency communications. Critical services such as airports, hospitals, stock exchanges, and small businesses — many of which rely on WhatsApp and digital payments — would come to a standstill.
In essence, a telecom breakdown could paralyse India’s digital economy, exposing the nation’s dependence on a duopoly.
E-commerce Monopoly: Another Fragile Ecosystem
The same risk looms over the e-commerce sector, where Amazon and Flipkart dominate nearly 80% of the market. A disruption similar to IndiGo’s could cripple daily life — halting delivery of groceries, medicines, and essential goods, freezing refunds and customer support, and leaving small sellers without platforms to trade.
Local retailers, freed from competition, might exploit shortages by inflating prices. Such a scenario underscores the perils of market centralisation in sectors critical to everyday living.
A Wake-Up Call for Regulators
The IndiGo crisis, analysts say, is a warning shot for policymakers and regulators. A single company’s operational failure exposed systemic weaknesses in India’s infrastructure and consumer protection mechanisms.
As the aviation regulator DGCA investigates and IndiGo works to restore normalcy, the broader lesson remains clear: unchecked monopoly power in any essential service — whether air travel, telecom, or e-commerce — poses a direct threat to economic stability and citizen welfare.
Without stronger competition laws, redundancy frameworks, and regulatory oversight, India risks repeating this crisis across multiple sectors — each time with millions of citizens paying the price.
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