Canopy Growth (TSX:WEED; NYSE:CGC) unveiled a list of 16 new marijuana-infused drink and edible products yesterday (Tuesday) as its initial foray into the marketplace.
Canada legalized the sale of so-called cannabis 2.0 products on Oct. 17, 2019, but because licensed producers (LPs) are required to give Health Canada 60 days’ notice for new products, the earliest sales will not begin until mid-December.
A study by Deloitte estimates the annual Canadian market for edibles and alternative cannabis products is worth C$2.7 billion, with edibles accounting for $1.6 billion of that figure and drinks accounting for C$529 million, so the stakes are high for Canopy Growth and its peers such as HEXO (NYSE:HEXO) and Tilray (Nasdaq:TLRY) when it comes to selling these new products which have higher margins than existing products and can appeal to a broader base of consumers who aren't interested in smoking weed.
Canopy Growth unveiled concepts for:
- 6 intoxicating drink products under its Tweed brand based on a proprietary blend of whole flower cannabis distilled into a clear liquid with
- 3 of the products intended to be combined with non-alcoholic mixers and
- 3 “ready to drink” Tweed-branded formats; tonic water, soda water and ginger ale,
- 2 intoxicating beverage products, each with 2.5 milligrams of THC, under its Houseplant brand with
- 1 lemon flavored and
- 1 grapefruit flavored,
- 1 stronger 10 milligram drink called “Deep Space”,
- 4 drinks under the name Quatreau
- 2 CBD only and
- 2 CBD +THC and
- 3 different chocolate bars consisting of 10 milligram of THC per bar.
Canopy Growth has plans to introduce a further 16 products by the end of December, and an additional 20 over the following 12 months. That's a total of 52 such products by the end of 2020.
Canopy's share price was up marginally yesterday as a result of the announcement and is continuing to increase today in early trading:
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