Canopy Growth Corp. will deepen its U.S. presence by launching four sparkling cannabidiol waters there before possible federal legalization. <\/p>\n<\/p>\n
The Smiths Falls, Ont.-based cannabis company said four drinks from its Quatreau brand will be available online to U.S. customers Tuesday. They will contain 20 milligrams of CBD, come in ginger and lime, cucumber and mint, blueberry and a\u00e7a\u00ed, and passion fruit and guava flavours and be Canopy\u2019s first CBD drinks to cross the border. <\/p>\n<\/p>\n
The beverages, which have been available in Canada since last fall, will join Martha Stewart, BioSteel and This Works CBD products Canopy already sells in the U.S. as part of an expansion strategy. <\/p>\n<\/p>\n
\u201cWhen we look at opportunities on a global basis, Canadians and Americans have a lot of the same consumer insights \u2026 but there’s no doubt that the United States is a larger population, and therefore a larger business opportunity,\u201d said Rade Kovacevic, Canopy’s president and chief product officer.<\/p>\n<\/p>\n
Industry observers believe those U.S. opportunities will multiply this year because U.S. President Joe Biden and his Democratic party have favoured legislation to relax cannabis laws.<\/p>\n<\/p>\n
Biden supports decriminalizing pot, expunging criminal records related to its possession and the Safe Banking Act, a Democratic bill that would allow financial institutions to work with cannabis companies without retribution.<\/p>\n<\/p>\n
Ahead of his inauguration, the U.S. House of Representatives paved the way for federal cannabis legalization by voting in favour of taking the substance off the dangerous drugs list, but Senate and White House approvals are needed for the policy to be implemented. Some believe those approvals could come this year. <\/p>\n<\/p>\n
Canopy is preparing for that day by pushing into the market first with CBD, a compound found in cannabis and hemp that doesn\u2019t produce a high but is believed to relax consumers. <\/p>\n<\/p>\n
CBD regulations vary across states, but several have approved its recreational use and many more have OK’d it on a medical basis. <\/p>\n<\/p>\n
Meanwhile, consumer demand for CBD is growing. New Frontier Data and Square predict US$121 billion will be spent on CBD across the country between 2020 and 2025, with consumers between the ages of 34 and 44 fuelling much of the boom. <\/p>\n<\/p>\n
Canopy\u2019s research also revealed that while most Americans have heard of CBD, two out of every three can\u2019t name more than one brand producing it. <\/p>\n<\/p>\n
\u201cMarket share is highly fragmented and so for us, this plays very much to our strengths of having a proven brand with a proven formulation that we know how to scale for a large number of consumers,\u201d Kovacevic said. <\/p>\n<\/p>\n
When choosing to introduce Quatreau to the U.S., Canopy first turned to consumer insights to discover what Canada\u2019s neighbours like, he said. <\/p>\n<\/p>\n
\u201cSomeone in Rochester, N.Y. is more likely to have similar taste profiles to someone in Toronto, than someone in Dallas, Texas, for example,\u201d he said.<\/p>\n<\/p>\n
Once Canopy identified tastes and overlaps between its Quatreau products, it took on production, logistics, supply chain, distribution and marketing. <\/p>\n<\/p>\n
The Quatreau sparkling waters will be sold through e-commerce \u2014 a model that can be built on if the U.S. cannabis market flourishes, Kovacevic said.<\/p>\n<\/p>\n
\u201cThat way as the opportunity in the United States continues to open up and scale, we’re going to be positioned to be able to consolidate consumers interest in our products and brands and continue to drive them forward.\u201d<\/p>\n<\/p>\n
This report by The Canadian Press was first published March 2, 2021. <\/p>\n<\/p>\n
Companies in this story: (TSX: WEED)<\/p>\n<\/p>\n
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