Previously in this series, we discuss some of the product research from ebbu—Canopy Growth’s (WEED) (CGC) US subsidiary. With the announcement of the AgriNextUSA acquisition early on March 21, Canopy Growth could launch a variety of products derived from hemp. The possible products include fiber, cosmetics, advanced materials, textiles, health and wellness, and edibles that are derived from hemp.
Canopy Growth’s strategy
In the press release, Canopy Growth stated that with AgriNextUSA, it will create industrial parks that will help accelerate the production cycle and deliver products that can be commercialized. When the company spoke about the strategy, it stressed having an effective model that would benefit US farmers that grow hemp by connecting them to innovators, entrepreneurs, and researchers.
Canopy Growth already received a license from New York state to produce hemp. The company is in the process of building an industrial park in the southern tier of the state.
The legal way to enter the US cannabis market is through hemp. However, companies including Tilray (TLRY), Canopy Growth (WEED), HEXO (HEXO), and Aurora Cannabis (ACB) are focusing on medical cannabis research. When new markets open to cannabis players, they will likely start with medical cannabis (MJ) and then move to recreational cannabis. Having strong intellectual property on medical cannabis products could give companies a big advantage in new markets.