Cannabis Industry: What’s the Next Phase?


Jun. 27 2019, Published 9:07 a.m. ET

Next phase

Initially, when recreational cannabis was getting closer to legalization, companies rushed to develop large indoor and outdoor extraction and cultivation facilities. As a result, several companies have developed large supply capabilities for cannabis. As the cannabis industry begins to mature, cannabis producers are shifting to more complex cannabis-infused products.

Cannabis-infused beverages use extracts derived from the cannabis plant. However, the process of creating cannabis-infused beverages isn’t straightforward. To learn more, read The Art and Science of Cannabis Beverages.

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The extracts will be used in beverages and other formats of cannabis-derived products that can have wide-ranging applications. In the next phase of the cannabis industry, companies will build out value-added production capabilities. The companies will be looking to purchase other companies that have developed intellectual property around various uses and applications of cannabis-infused products.

At the same time, acquiring players with extraction capabilities might also be in full swing. On June 26, Canopy Growth (WEED) (CGC) announced the completion of the KeyLeaf Life Sciences acquisition, which will add plant-based extraction to the company’s value chain.

Canopy Growth will get access to KeyLeaf’s US-based facilities for CBD extraction, which will be key in expanding in the US. During the day, Canopy Growth closed 0.71% lower. Aurora Cannabis (ACB) and Aphria (APHA) ended 2.3% and 0.9% higher, respectively.


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