Canopy Growth Enter US CBD Beverages Market
SMITH FALLS, Canada – Canopy Growth (CGC) has launched a hemp-derived CBD water in the U.S., adding to its product offerings in the nation.
The new drink is called Quatreau. It will be sold initially on Canopy’s U.S. website shopcanopy.com, which also sells CBD gummies and pet products from brands such as Martha Stewart. It also sells CBD products from Biosteel and other brands in the USA.
Cannabis beverages are just a small part of the legal market compared to more popular items, like pre-rolls. Canopy Growth, which has placed a bigger bet on cannabis drinks than some of its rival cannabis LPs, launched CBD beverages in Canada last year. Canopy also sells THC beverages, which contain the ingredient that gets the user high, in Canada.
“We have proven our beverage strategy in Canada, where we are currently the market share leader in CBD-infused ready-to-drink beverages,” said Canopy Growth President and Chief Product Officer Rade Kovacevic. “Beverages are fueling growth in the CBD category and we believe this product will resonate with U.S. consumers looking for a naturally flavored, zero-sugar option.”
Quatreau already exists in Canada in both CBD and THC versions.
While CBD has grown as a supplement, its use as a food additive has not been clarified by the FDA. Used in foods and beverages where state’s food safety authorities have allowed it, but it cannot cross state lines. However, the Biden Administration and members of Congress have signaled a readiness to approve both CBD and psychoactive THC, including cannabis use.
Quatreau will be available in four flavors in the U.S. Each can contains 20 milligrams of CBD, a relaxing agent that doesn’t yield a high. Twelve-packs on shopcanopy.com were selling for around $48. Companies selling hemp or CBD products in the U.S. include Cronos Group (CRON) owns the CBD brand Lord Jones. Tilray (TLRY) owns Manitoba Harvest, which sells hemp granola and other foods. Tilray said last month that its hemp sales took a hit after Costco (COST), one of its large customers, began moving to private-label products the coronavirus pandemic’s restrictions on retailers have, in turn, restricted sales, the main delay in more Canadian players being active in the market is largely because clearer regulations are needed from the FDA.
The Rally in Cannabis Stocks
Cannabis stocks are having a resurgence this year with Cronos, Canopy Growth Corp, Tilray and Aphria all showing strong gains going into March.
Cannabis stocks have rallied because of high hopes for U.S. federal legalization. Virginia’s legislature over the weekend voted to legalize recreational cannabis, making it the 16th U.S. state to legalize recreational cannabis. However, sales don’t begin until 2024. Canopy, however, has a deal in place to acquire U.S. multi-state cannabis company Acreage Holdings, which sells THC products, once U.S. federal law allows cannabis.
Canopy also said the Quatreau launch in the U.S. coincided with the astrological event known as the Age of Aquarius. The company said it partnered with celebrity astrologist Susan Miller, of Astrology Zone, to help promote the drinks. “Astrology has made a major pop culture comeback as people turn to the stars for guidance during what has been an unsettling, uncertain, and stressful time for many,” Tara Rozalowsky, Canopy’s vice president of beverages, said in a statement.
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