Canopy Growth’s new partnership
On November 8, Canopy Growth (CGC) (WEED) announced a multiyear partnership with an established logistics and cash management provider—The Brink’s Company (BCO). The Brink’s Company will be used in Canada and global markets where Canopy Growth has operations. Why did Canopy Growth partner with a cash logistics company?
Cash is still the king
The above chart shows the proportion of cash used in Brink’s five biggest markets. Three markets—Brazil, France, and Mexico—show that most of the transactions take place in cash. In the United States and Canada, 31% and 44% of the transactions take place in cash. Cash transactions might be even more preferred in the cannabis sector. Customers try to avoid having purchase records.
Due to the prevalence of cash transactions among cannabis users in Canada and other countries, Canopy Growth’s partnership with Brink’s is a natural fit.
Digging deeper, the largest users for Brink’s services were financial institutions followed by retail and then government/other. With retail customers forming the second-largest customer base, we can interpret that Canopy Growth and Brink’s partnership comes in anticipation of retail cannabis stores. Canopy Growth will set up the stores in 2019.