In this article, we’ll continue our discussion on formats of cannabis for the retail recreational market by looking at products under development for producers such as Canopy Growth (WEED) (CGC), Aurora Cannabis (ACB) (ACBFF), and others. The three broad product types currently produced by most cannabis producers include dried cannabis, oil, and soft gels.
Innovating new formats
While the above three formats of cannabis products are prevalent in the medical market, companies are being innovative with products slated for the recreational market.
According to a discussion paper published by the Canadian government, in 2013, 75% of the Canadian population 15 years or older consumed alcohol as opposed to the 11% that consumed marijuana during that period.
Canopy Growth’s partnership with Constellation Brands (STZ) to develop cannabis-based beverages appears to be geared at the non-user market through a more casual and acceptable format of consumption. The company aims to create beverages that it hopes will disrupt the traditional markets for alcoholic beverages. Canopy Growth also has plans to introduce cannabis-infused tea and coffee.
In the latter half of June 2018, Molson Coors was also reported to be in talks with marijuana producers (HMMJ) including Aurora Cannabis (ACB) (ACBFF) and Aphria (APHQF) for the possible development of alcoholic cannabis beverages.
Since cannabis-infused edibles can have a similar effect on a user, it will not be surprising to see other forms of products such as cannabis-infused cookies and brownies.
In provinces where cannabis producers will sell directly to a government entity, companies such as Canopy Growth (CGC) (WEED), Aurora Cannabis (ACB), Organigram (OGRMF), and others will have limited access to customers.
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