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.
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.
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.
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.