Although regular cannabis sales in the Canadian market have been strong in the post-legalization market, there is a growing opportunity for companies in the emerging edibles market to make a name for themselves.
Cannabis-infused foods and beverages have excellent growth potential among Canadian consumers. Although cannabis flower was legalized in October 2018, edibles, beverages and topical creams are still legally restricted for safety and regulatory reasons.
For many, there remains a stigma behind cannabis consumption, especially when smoked. Cannabis-infused edibles such as cookies, gummies and beverages can help attract more mainstream consumers who otherwise wouldn’t experiment with smoking cannabis. In anticipation of a new class of cannabis consumers, companies are preparing themselves for the pending legalization of edibles and cannabis-derivative products in Canada. As of October 17, 2019, Canadian licensed producers will be legally authorized to sell concentrates and edibles according to Health Canada regulations.
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Why cannabis edibles are different
In October 2018, the Canadian government legalized dried bud, oil, seeds and plants, choosing to postpone regulations pertaining to the sale of edibles until October 2019. Companies across Canada have been eagerly anticipating a soon-to-be legal edibles market with an expectation that the government will learn from US jurisdictions, avoiding some of the pitfalls encountered in the past.
The main reason for this delay stems from health concerns. In the US, Colorado legalized cannabis with few restrictions in 2014 and received 87 reports of children being exposed to cannabis through edibles were called into the Rocky Mountain Poison and Drug Center. Although none of the cases involved permanent damage, the scare was sufficient to bring about a new set of packaging and dosage laws for the state.
The current Canadian government has expressed many times that legalizing cannabis in a safe, orderly way was among their top concerns, with protecting children taking special priority. Seeking to avoid potential health scares, Health Canada has elected to wait until October 2019 to implement a system of standardizing cannabis packaging system on labels, reducing dosage concentrations and removing any flavoring agents or marketing that could appeal to children.
According to the official release from Health Canada, amended regulations to the Cannabis Act will come into force on October 17, 2019. Edibles will be limited to 10 milligrams of tetrahydrocannabinol (THC) per packaged unit, with ingestible extracts limited to under 1,000 milligrams of THC per package. Packaging restrictions have also been placed on edibles and concentrates, mandating that plain, child-resistant packaging must be used. Nicotine, caffeine and alcohol cannot be legally included in any cannabis edibles or beverages.
The growing market for cannabis consumables
While companies will be forced to wait until October to enter the edibles market, the anticipation is helping to create more enthusiasm over this new product category. According to a Deloitte survey involving over 1,500 Canadians, six out of 10 cannabis users will be choosing edibles on a frequent basis once they’re available. “We found that it was really a product category – baked goods, chocolate, candy, beverages, honey (ice pops) – that is much more accessible,” said Deloitte partner Jennifer Lee, adding that there is less stigma behind consuming these products in comparison to smoking the plant itself.
According to a report from ArcView Market Research, the edibles market in the US and Canada combined is estimated to reach US$4.1 billion by the end of 2022. In contrast, the two countries only spent around US$1 billion on edibles in 2017. This explosion of popularity has moved so fast that cannabis edibles were even named food trend of the year in 2018 by the Specialty Food Association.
Other statistics show that edibles are projected to grow from 12 percent to 14 percent of the total cannabis market by 2022, while traditional flower sales are expected to drop from 50 to 36 percent. Worldwide, cannabis-infused edibles are expected to reach US$32 billion in 2022.
“Legal cannabis-derived edible products, from candy and chocolate to infused beverages, is a sector worth watching over the next few years,” said the report. “It has become clear that the legal cannabis market is about much more than inhaling the smoke of smoldering cannabis flower.”
Understanding different consumer preferences
The prospect of the upcoming edibles and beverage market is anticipated by some companies as much as 2018’s legalization was, with many analysts expecting these new products to entice a different type of consumer. The market for regular cannabis is already well established, with certain demographics interested in purchasing from dispensaries. However, the stigma of consuming what was formerly an illegal substance remains in many people’s minds. While marketing, branding and retail experts are working hard to rebrand the plant and optimize the retail experience, cannabis-infused edibles and beverages have the potential to make cannabis far more palatable to these new customers.
There is a significant difference between a traditional cannabis smoker and an edibles consumer. While there is some overlap between the two — a new report published by High Yield Insight revealed that 41 percent of respondents increased edible consumption after cannabis legalization — the two subsets involve different consumer preferences. The edibles customer journey bears more resemblance to someone shopping for food, with customers focused on flavor and taste first, as opposed to price. While this might seem obvious, the opposite doesn’t hold true for regular cannabis consumers, who have shown to value price over taste in their buying decisions.
The cannabis edibles marketplace
Edibles companies have been quick to experiment with new product types. For example, in 2018, Newstrike Brands (TSXV:HIP) announced that it had partnered with specialty food producer Neal Brothers, a company known for producing gluten-free chips and dips.
While innovations in branding and experimental products are crucial, so too are advances in cultivation and processing. Edibles need to pass a variety of standards and cannot contain pesticides, metals and other contaminants. Edible products also need to remain stable for long periods of time, with the appropriate expiration dates included.
When it comes to cannabis-infused beverages, Valens GroWorks (TSXV:VGW) has exclusive Canadian rights to a water-soluble proprietary technology called SōRSE™ that allows cannabis-infused products to keep their potency when frozen, heated or chilled. Beyond this, it has a proven shelf life of over two years and has proven increased bioavailability, providing quicker onsets and offsets than traditionally ingested cannabis particles. At the same time, this technology removes the traditional taste and smell of marijuana, which can be especially valuable considering that edibles consumers value taste primarily when choosing a product.
A new age of cannabis consumption
The advent of cannabis-infused edibles, beverages and topicals is expected to open up even more segments of the Canadian population to cannabis. While companies wait until October 2019 for the legalization of these derivative products, they have plenty of time to come up with new branding strategies, innovative product categories and advances in production. When cannabis-infused edibles do hit the market, these companies could have an edge over their competitors in what could become one of the largest sectors in the cannabis industry.
This INNSpired article was written according to INN editorial standards to educate investors.
INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.
Ayurcann Holdings Corp. (CSE: AYUR) (the “Company” or “Ayurcann”) an integrated Canadian extraction company specializing in the processing of cannabis and hemp for the production of oils and various derivative products, announces the granting of stock options and restricted share units.
The Company has announced that it has granted incentive stock options to directors, officers, employees and consultants of the Company to purchase an aggregate of 1,000,100 common shares under the Company’s Stock Option Plan. Each option is exercisable at a price of $0.16 per common share, expires three years from the date of grant and vest six months from the date of the grant.
The Company has also granted restricted share unit grants, pursuant to the Company’s Restricted Share Unit plan, dated April 1, 2021, totaling 1,548,875 to certain eligible participants.
For further information, please contact:
Igal Sudman, Chairman, Chief Executive Officer and Corporate Secretary
Ayurcann Holdings Corp.
About Ayurcann Holdings Corp.:
Ayurcann is a leading post-harvest solution provider with a focus on providing and creating custom processes and pharma grade products for the adult use and medical cannabis industry in Canada. Ayurcann is focused on becoming the partner of choice for leading Canadian cannabis brands by providing best-in-class, proprietary services including ethanol extraction, formulation, product development and custom manufacturing.
Neither the Canadian Securities Exchange nor its Regulation Services Provider have reviewed or accept responsibility for the adequacy or accuracy of this release.
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A planned business merger between two leading cannabis producers hit a small delay this week as a critical vote got moved.
Keep reading to find out more cannabis highlights from the past five days.
Tilray delays critical shareholder meeting
On Thursday (April 15), Tilray (NASDAQ:TLRY) announced it will be postponing its shareholder vote on the fate of its merger with Aphria (NASDAQ:APHA,TSX:APHA). It will take place on April 30 instead of April 16.
Neither cannabis company offered an explanation for the change. Tilray has asked shareholders to participate in this vote regardless of how many shares they may hold. “Tilray stockholders who have not already voted, or wish to change their vote, are strongly encouraged to do so,” the company said.
This news came days after Aphria shareholders overwhelmingly voted in favor of the business transaction, with a total of 99.38 percent of shareholders voting for the deal to continue. Confirmation from Aphria Chairman and CEO Irwin Simon indicated the partnership was en route to being complete.
This past week Aphria also released financial results for the third quarter of its 2021 fiscal year, in which the firm highlights the overall direction of the company with the Tilray deal.
“We expect to have a tremendous runway for long-term sustainable growth as we build upon our existing foundation in Canada and internationally by increasing the scale of our global operations,” Simon said in a statement.
Cannabis retailer celebrates digital trend
Bidding for the piece, named “Non-Fungible Toke“ started at a price of C$4.20. The retailer plans to donate the proceeds to two charities, Second Harvest and Less.
The latter is designed to counter the carbon footprint of blockchain technology, a common criticism drawn against the rise of NFTs and other novel technologies.
As of 11:00 a.m. EST on Friday (April 16), the NFT bid was up to C$169.11.
Cannabis company news
- The Valens Company (TSX:VLNS,OTCQX:VLNCF) issued its financial report for the first quarter of its 2021 fiscal year. In its results, the company highlights a net revenue uptick of 24.7 percent from the previous quarter, resulting in C$20 million for the period.
- Trulieve Cannabis (CSE:TRUL,OTCQX:TCNNF) closed a public offering of 5 million subordinate voting shares at a price of C$50 each for total gross proceeds of C$287.5 million. The company celebrated its financial position after an offering in January, which will lead to the pursuit of merger and acquisition targets.
- Australis Capital (CSE:AUSA,OTCQB:AUSAF) appointed Jason Dyck as its new chief science officer and chairman of the firm’s scientific advisory board. Dyck previously served as an executive at Aurora Cannabis (NASDAQ:ACB,TSX:ACB), leading the scientific efforts for the cannabis producer. “I look forward to providing AUSA with advice and direction in its scientific efforts towards bringing innovations to market with immediate and significant commercial appeal,” Dyck said.
- Truss Beverage, a cannabis drinks venture co-owned by Molson Coors Beverage Company (NYSE:TAP,TSX:TPX) and HEXO (NYSE:HEXO,TSX:HEXO), released the details of its new lineup of infused beverages. Six new drinks will become available around the summer and are intended to pair with the season.
Don’t forget to follow us @INN_Cannabis for real-time updates!
Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Partnerships with Minardi Law , Minorities for Medical Marijuana, CultivatED, and the Georgia Justice Project will include clinics and virtual events across Florida , Georgia , and Massachusetts
Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) (“Trulieve” or “the Company”), a leading and top-performing cannabis company based in the United States announced today a series of expungment clinics located throughout south and central Florida as well as virtual events in Georgia and Massachusetts . The clinics are part of the Company’s celebration of the 50 th anniversary of 420.
During the month of April, Minardi Law has hosted expungment clinics and will be hosting two more as follows:
- Releaf Patient Appreciation Day, April 17 th ( Valrico )
- First Annual 4/20 Event ( St. Petersburg Beach )
At these clinics, an attorney will be present to review records and see if someone is eligible for a sealing or expungment of their records. As part of the events, Trulieve will be helping cover the costs for finger prints, legal fees, and court costs.
Trulieve is working with Minorities for Medical Marijuana (“M4MM”) to host a 4/20 Expungement Clinic, part of M4MM’s Project Clean Slate. This event will take place on Saturday, April 24, 2021 , from 9:30am – 4:30pm at Riviera Beach City Hall. Anyone seeking to take place in this event is required to register in advance at http://trulieve.cc/expungementpreregistration .
In addition, Trulieve is sponsoring the First Friday Series , a weekly virtual event from the Georgia Justice Project to help Georgia citizens with record restrictions, and is also sponsoring the Fellowship Presentation and Expungement Clinic being offered through CultivateEd and GBLS on Friday, April 23 from 3:00pm – 4:00pm . You can register for the Massachusetts expungement clinic in advance here: HTTPS://BIT.LY/2Q655KK
“Our mission as a company has always been to improve people’s lives,” said Trulieve CEO Kim Rivers . “We’ve always been dedicated to improving the communities we call home. Partnering with Minardi Law , Minorities for Medical Marijuana, Georgia Justice Project and CultivatED on these clinics was a simple decision for us; we encourage anyone seeking help with the expungement process to attend one of these clinics in your own state to start the process.”
For more information about Trulieve and the April expungment clinics, please visit www.Trulieve.com .
Trulieve is primarily a vertically integrated “seed-to-sale” company in the U.S. and is the first and largest fully licensed medical cannabis company in the State of Florida . Trulieve cultivates and produces all of its products in-house and distributes those products to Trulieve-branded stores (dispensaries) throughout the State of Florida , as well as directly to patients via home delivery. Trulieve also has operations in California , Massachusetts , Connecticut and Pennsylvania. Trulieve is listed on the Canadian Securities Exchange under the symbol TRUL and trades on the OTCQX market under the symbol TCNNF.
To learn more about Trulieve, visit www.Trulieve.com .
SOURCE Trulieve Cannabis Corp.
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Seth Rogen’s New Cannabis Brand are Now Available at Apothecarium Dispensaries in San Francisco , Berkeley and Capitola
The Apothecarium is offering cannabis from Houseplant, the cannabis lifestyle brand founded by Seth Rogen and Evan Goldberg at its five California dispensaries. The Apothecarium has three San Francisco locations (Castro, SOMA and Marina ) and one each in Berkeley and Capitola (outside of Santa Cruz ).
“With the vast number of dispensaries in California , we put a lot of effort into identifying the right ones that align with Houseplant’s values,” said Seth Rogen , Co-Founder of Houseplant. “The Apothecarium shares the same commitment to creating a strong consumer experience that we pride ourselves on and we are thrilled to bring our three initial strains to their stores in the Bay Area.”
Houseplant is launching with three flower strains, all of which will be available at The Apothecarium, including: Diablo Wind (sativa), Pancake Ice (sativa) and Pink Moon (indica). Like their founder’s groundbreaking film “Pineapple Express”, Houseplant strains are named after weather phenomena. Each strain will be sold in a custom tin.
“We are so proud to be one of the very first dispensaries in California to offer Houseplant to our customers,” said Ryan Hudson , CEO and co-founder of The Apothecarium. “Seth, Evan and everyone at Houseplant love and respect cannabis as much as we do. We simply cannot wait to share their beautiful and delicious flowers with our guests.”
“We’ve been working with the Houseplant team for more than a year and are grateful to have a partner that shares so many of our values, including an emphasis on cannabis education, quality, reform of cannabis laws and beautifully designed, recyclable packaging.”
“Seth has been hands-on during the process, spending time with our store managers to make sure they know the products and how much care has gone into vetting and selecting the best strains. We think our guests are going to love Houseplant.”
About The Apothecarium
The Apothecarium is recognized as one of the nation’s premier cannabis dispensaries, with an emphasis on education via in-depth one-on-one consultations from highly trained cannabis consultants. The company was founded by three first cousins and two family friends in 2011. Our dispensaries are known for providing educational events that are open to the public at no cost — and for welcoming seniors, first-time dispensary visitors, and people with serious medical conditions. The Apothecarium’s flagship San Francisco dispensary was named the best-designed dispensary in the country by Architectural Digest . Patients and customers may order at our dispensaries or online for pickup or delivery at apothecarium.com [apothecarium.com] .
The Apothecarium is committed to giving back to the communities we serve. We have donated more than $400,000 in cash to community groups and nonprofits — plus more than $300,000 worth of in-kind donations.
All Apothecarium dispensaries continue to implement safety measures to protect guests and team members. Protocols include strict social distancing inside and outside the dispensaries, a mask requirement for everyone inside the dispensaries, no contact check-in procedures and ongoing sanitizing throughout the day.
CA Licenses: C10-0000523-LIC; C10-0000522-LIC; C10-0000515-LIC, C10-0000738-LIC, C10-0000706-LIC
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MISSISSAUGA, Ontario TheNewswire – April 16, 2021 Sire Bioscience Inc. (CSE:SIRE) (OTC:BLLXF) (FSE:BR1B) (CNSX:SIRE.CN) (“SIRE” or the “Company”) announces that Brian Nugent has resigned as a member of the Company’s board of directors (the “ Board ”). It has been a pleasure and a blessing to have worked with Brian Nugent over the past few years, his business acumen and tremendous experience will certainly be missed, SIRE wishes him nothing but the best in all his future endeavors.
About Sire Bioscience
SIRE is headquartered in Mississauga, Ontario with its wholly owned subsidiary PLANTFUEL® based in Denver, Colorado. SIRE is managed by a group of successful entrepreneurs who have extensive experience in the areas of consumer-packaged goods, manufacturing, logistics, and distribution. SIRE is a CPG life science company focused on the plant-based foods and supplements industry.
For additional information contact:
Sire Bioscience Inc.
Copyright (c) 2021 TheNewswire – All rights reserved.
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