Earlier this week, Canopy Growth Corporation (TSX: WEED) (NASDAQ: CGC) enhanced its leverage to the US market after announcing that Southern Glazer’s Wine & Spirits would serve as its distribution partner for its portfolio of cannabidiol (CBD) infused beverages.

Southern Glazer’s is considered to be a leading global alcohol distributor and we expect Canopy Growth to benefit from this relationship. The announcement comes on the heels of Canopy Growth’s launch of Quatreau which is its first line of CBD-infused beverages for the US market.

Quatreau sparkling water contains 20 mg of premium US grown hemp-based CBD, in four flavors. The launch in the US follows a successful launch in Canada where it is now the top-selling ready-to-drink CBD beverage.

A Cannabis Beverage Growth Story 

Going forward, Canopy Growth will be able to leverage Southern Glazer’s established distribution network to bring its CBD beverage portfolio to retailers and consumers across the US. The companies are focused on creating an immediate strategic route to market for Canopy’s premium CBD beverages and we will monitor how the management team is able to execute on this opportunity. 

Initially, Southern Glazer will distribute Canopy Growth’s CBD-infused sparkling water brand across seven states. Later this year, the company expects to expand into additional states and we are favorable on the growth strategy. 

A Company of Firsts

Since inception, the Canadian cannabis producer has been the first to capitalize on several significant trends. Through this relationship, Canopy Growth continues to be a company of firsts as it will be the first US CBD brand to access the nationwide network of a large-scale alcohol distributor to reach consumers at mainstream retail stores

The distribution agreement also showcases the benefits of Canopy Growth’s strategic relationship with Constellation Brands and we are favorable on how it has been laser-focused on the cannabis-infused beverage market.

Over the next year, we expect Canopy Growth to become the largest cannabis beverage brand in the world. Through Constellation Brands and Southern Glazer’s, the Canadian cannabis company is well-positioned to capture market share in any region that it focuses on. We believe the US market is the next frontier of growth and our readers need to be aware of this trend.