Committing investments

In Canopy Growth Corporation’s (WEED) filings, the company stated that it would invest in functions such as marketing, branding, and sales when regulated marijuana becomes legal in countries including Canada, which is poised to legalize marijuana for recreational purposes in mid-2018.

How Canopy Growth Plans to Sell Recreational Marijuana

Entering the market

Canopy Growth intends to enter the market with cannabis-based beverages when recreational marijuana becomes legal in Canada. The above chart shows the market potential for recreational marijuana in Canada between 5 million and 10 million Canadian dollars. The beer market is about 8.7 million Canadian dollars.

Canopy Growth is already a step ahead of companies (MJX) such as Aurora Cannabis (ACB)(ACBFF), MedReleaf (LEAF), and Cronos Therapeutics (MJN) by aligning with Constellation Brands (STZ).

Constellation Brands is one of the world’s largest producers and marketers of beer, spirits, and wine. The company’s portfolio includes well-known brands such as Corona, Negra Modelo, and Svedka. Shaking hands with Constellation Brands, Canopy Growth is equipped with beverage making expertise.

Other forms

Interestingly, a study conducted by Deloitte titled “Recreational Marijuana Insights and Opportunities” showed that of the 5,000 adults surveyed in Canada, 42% preferred smoking as a method of consumption. Vaping and edibles were other preferred methods. Consuming a marijuana-infused beverage was nowhere to be seen as a favored method of consumption.

Next in this series, we’ll discuss what Canopy Growth thinks about its initial approach of selling to customers.

Latest articles

Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.

The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.

Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.

Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.

14 Jun

IEA Again Slashes Its Oil Demand Growth Estimate

WRITTEN BY Rabindra Samanta

As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.

14 Jun

Why Kimberly-Clark Stock May Stop Rising


Kimberly-Clark (KMB) stock has risen 20.5% this year, boosted by the company’s better-than-expected sales and earnings during its last reported quarter. However, its stock could stop climbing. Here's why.