Burgeoning international market
The burgeoning international cannabis market is the next area of focus for most Canadian cannabis companies. International markets are increasingly becoming open to the idea of cannabis, at least for medical purposes. Therefore, companies would be prudent to make investments in international markets to capture a first-mover advantage.
On June 18, Canopy Growth (WEED) (CGC) announced another international development: it has entered into an agreement with Procaps in Colombia. According to Canopy Growth, Procaps is active across the world, exporting its products to over 50 international markets. The company develops and produces nutritional supplements and over-the-counter medicinal products.
Casting a wider net
With an aim to appeal to a wide variety of cannabis users, Canopy Growth has been developing a range of cannabis product formats, including cannabis-based products for pets. With the partnership of Procaps and its encapsulation capacity, Canopy Growth aims to reach customers who prefer softgels, indicating an emerging product format preference in Latin America.
Canopy Growth’s peer Aurora Cannabis (ACB) has also been active in international markets Italy, Germany, and Australia. Tilray (TLRY) has also announced an international advisory board to drive its international developments. While these developments take place, we can’t help but be reminded of Aphria’s (APHA) acquisitions and eventual writing-off of its Latin American investments, which spooked investors. Read Aphria Declines, Other Cannabis Stocks Follow for more info.
Canopy Growth has also announced developments in Europe, Africa, and the Asia-Pacific.