Two leading Canadian cannabis firms have shared new expectations for market entry into the hemp space in the US.
The two companies announced plans for the separate market entries this week.
Bruce Linton, co-CEO of Canopy Growth, told Bloomberg on Tuesday (June 4) that he expects to see hemp operations for the company extend to seven states a year from now; he said his expectation is for these to be either completely built or in the process of being completed by then.
In March, the Canadian company announced the acquisition of AgriNextUSA as a pillar in accelerating its entry into the US hemp space.
“The United States is the next stop on Canopy Growth’s desired path to becoming a leading, revenue-generating company focused on all aspects of cannabinoids and their potential,” Linton said at the time.
Mike Gorenstein, CEO of Cronos, told Cheddar that he wants to see his firm’s entry into the CBD market by the end of the year.
“(I’m) comfortable saying we plan on launching CBD products at some point this year,” he said.
Gorenstein explained that he views the Canadian and US markets very differently and even indicated that the long-term future of the company isn’t tied to the dried flower space in Canada.
“Spending ahead to be able to have next generation vaporizers, great edible products that are fast-acting, we want to make sure we get all the flavors right, the brand positioning, the marketing spend — so it’s a typical CPG (consumer packaged goods) market,” the executive said.
With the rise of interest in the cannabis space, it is expected that industry standards akin to the CPG market will become the norm for marijuana companies as they evolve from solely farming operations to branding maintenance, retail operations and international expansions.
FDA scrambles as retail moves forward with CBD market
In May, the US Food and Drug Administration (FDA) held a public hearing to gain insight on how it should regulate CBD products. While many saw this event as an indication of the FDA’s willingness to participate, Gorenstein said this process is just starting.
“I think a lot of people were scrambling to draw big conclusions from that meeting, but I don’t know that there’s anything there to draw a conclusion from,” he said.
Despite the indecision from the FDA, established retail companies have jumped on board for the CBD product craze.
Despite the regulation challenges ahead for the industry, there’s no denying that consumers crave novelty CBD items and established retailers are willing to participate in the space.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
American cannabis sales hit US$17.5 billion in 2020, a research group’s new study shows.
Meanwhile, a Canadian cannabis producer began offering CBD beverages in the US, another move that shows how interested Canadians are in the overall US cannabis market at the moment.
Some pretty important news out of health and wellness; beverage and natural products company BevCanna Enterprises Inc. (CSE:BEV, Q:BVNNF, FSE:7BC) this week. For those of you following the Company with us, stay tuned.
As investors continue to prioritize cannabis opportunities in the US, market watchers expect mergers and acquisitions (M&A) to play a role in the future for Canadian companies.
A consolidation trend has been expected in the Canadian cannabis space for some time now based on the size of the market compared to the number of operations in the country.
BioHarvest Sciences Inc. Unveils the Unique Polyphenolic Content of Its Upcoming Olive-Based Nutraceutical
The product will include polyphenols known to have significant health benefits.
BioHarvest Sciences Inc. (CSE: BHSC) (“BioHarvest” or the “Company”) has reached an important milestone in its development program of additional Nutraceuticals. The olive-based Nutraceutical product scheduled for market availability in the second half of 2022 will contain the following unique matrix of polyphenols: hydroxytyrosol, trosol, and verbascoside. These compounds are the major polyphenols in naturally grown olives and are responsible for the high antioxidant activity of olives and olive oil. Importantly, the BioHarvest olive-based Nutraceutical product will provide all the benefits of olives and olive oil with a low calorie count per serving.
Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco” or the “Company”), one of the largest vertically integrated multistate cannabis operators in the United States, announced today that it will report financial results for the fourth quarter and full year ended December 31 st , 2020 on Thursday March 25 th , 2021 before the market opens.
The Company will host a conference call and webcast to discuss its financial results and provide investors with key business highlights on Thursday March 25 th , 2021 at 8:30am Eastern Time (7:30am Central Time).