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Canopy Growth’s Recreational Marijuana Sales Channel


Jan. 29 2018, Updated 5:50 p.m. ET

Reaching to the market

We have yet to see how recreational marijuana products will reach the market. In its recent filings, Canopy Growth stated that the Canadian provinces of Ontario and New Brunswick announced that the retail and distribution of recreational marijuana would be overseen by their liquor control boards.

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Complex product

Marijuana is more complex than alcohol or tobacco. There are several compounds in a marijuana plant that can have a different effect on users. Of course, this complexity would be thoroughly examined before marijuana-related products hit the shelves from companies (MJX) like Canopies Growth Corporation (WEED), Aurora Cannabis (ACB)(ACBFF), and MedReleaf (LEAF).

THC and CBD, natural properties of marijuana plants, are responsible for different effects on users. To learn more, see Should You Jump on the Marijuana Bandwagon?

Online sales channel

While the discussion of how recreational marijuana will reach the market builds, Canopy Growth Corporation stated that it “believes that the majority of sales in the first two years of the regulated recreational market will go through the online mail order system.”

Given the company’s strong belief that initial sales will take place through the “online mail order system,” Canopy Growth currently has an online marketplace known as Tweedmainstreet.com that sells medical cannabis products with different levels and combinations of THC (Tetrahydrocannabinol) and CBD (Cannabidiol).

To help customers pick the right product based on the desired composition of THC and CBD, Canopy Growth currently enables a customer to shop by spectrum, as you can see in the above chart. This option may also be available to recreational users.

Next in this series, we explore other methods of sale.


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