An Overview of Canopy Growth and Its Brands

Canopy Growth (CGC) announced the US launch of First & Free, its hemp-derived CBD product line. CGC offers softgels, oil drops, and creams.

Margaret Patrick - Author

Nov. 20 2020, Updated 4:42 p.m. ET


Canopy Growth (CGC) has been all over the news this month. On December 6, the company detailed its Cannabis 2.0 product rollout strategy. Plus, CGC announced the replacement of CEO Mark Zekulin with David Klein. Subsequently, the stock spiked by 14.15% and closed at $21.29 on the NYSE on December 9.

However, the stock lost its upward momentum after analysts assumed a cautious stance for the company’s management change. Canopy Growth’s share price closed at $20.09 on December 10 and $20.25 on December 11. However, the stock jumped by 4.35% and closed at $21.13 on December 12. Cannabis stocks rallied after Ontario announced plans to significantly open up the market to retailers.

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Differentiation is essential for survival in the cannabis sector

In an interview with BNN Bloomberg, Emily Paxhia, the co-founder and managing director of Poseidon Asset Management, discussed her expectations of short- and long-term growth trends for the cannabis sector. She expects consumer demand for wellness and enjoyment to be a short-term growth driver for this sector.

Paxhia specifically highlighted branded cannabis products in the consumer packaged goods space as an interesting short-term growth opportunity. Notably, a December 2 MarketWatch report noted that Mackie Research Capital Corp analyst Greg McLeish highlighted the importance of specialization or unique offerings for the survival of cannabis companies.

Canopy Growth’s brand strategy extends across product formats

Canopy Growth holds a broad portfolio of branded soft gel capsules, oil, and dried flower products. The brands target consumers across age groups with varying spending appetites. CGC has developed cannabis product brands to suit the different needs and uses of consumers. CGC differentiates its product brands into four categories—core brands, affiliated brands, technology brands, and retail platforms.

Notably, Canopy Growth’s core brands are Tweed, Tokyo Smoke, Van der Pop, DOJA, Spectrum Therapeutics, TWD, and This Works. CGC’s affiliated brands are Houseplant, DNA Genetics, LBS, Green House Brands, and Organa Brands.

In December 2018, the company acquired Storz & Bickel for 145 million euros. This deal added the technology brand, which is a global leader in the design and manufacturing of medically approved vaporizers.

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CGC’s branded retail network

According to Canopy Growth’s management discussion and analysis (or MD&A), the company is also developing a retail network under two brands to offer two distinct customer experiences. In July 2018, the company announced the acquisition of Hiku Brands. This added the latter’s Tokyo Smoke retail network to CGC’s Tweed retail network.

The company opened up nine cannabis retail stores under the Tweed or Tokyo Smoke banner in the first quarter of fiscal 2020. Plus, the company also launched the Tweed e-commerce platform to sell cannabis products in Saskatchewan.

According to Canopy Growth’s MD&A, the company had 26 cannabis stores under the Tweed or Tokyo Smoke banner as of August 26, 2019. Of these, 21 are corporate-owned while five are operated by partners. There are 16 corporate-owned Tweed retail stores across Newfoundland and Labrador, Manitoba, and Saskatchewan.

Additionally, there are five corporate-owned Tokyo Smoke retail stores. The Tweed brand has an online presence in Newfoundland and Labrador, Manitoba, Saskatchewan, and Nunavut. Plus, the Tokyo Smoke brand has an online presence in Manitoba.

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Canopy Growth plans to launch cannabis-infused chocolates and beverages

On November 28, Canopy Growth disclosed its range of Cannabis 2.0 products. The company plans to introduce cannabis-infused chocolates with different flavor profiles and varying percentages of THC. As a result, the chocolates would be available under the Tokyo Smoke, Tweed, and Bean & Bud brands.

The company plans to launch beverages under the Tweed, Houseplant, Quatreau, and Deep Space brands. Each brand would include beverages in a variety of flavors and with different concentrations of THC and CBD.

Notably, the company developed a proprietary process to extract clear liquid from the whole cannabis flower, called Distilled Cannabis. CGC uses Distilled Cannabis as an active ingredient in Tweed RTD (ready-to-drink) beverages. Finally, the company plans to launch a brand of beverage mixers called Tweed Distilled Cannabis.

Canopy Growth enters the US CBD branded market.

On December 12, CGC announced the launch of First & Free, its hemp-derived CBD product line in the US. The company offers softgels, oil drops, and creams on its e-commerce platform.

On December 3, BNN Bloomberg first reported the launch of CGC’s First & Free product line in the US consumer market. Notably, the company plans to introduce these products in the 31 states where CBD is legal. Plus, CGC intends to launch CBD products in the skincare, vape products, cosmetics, edibles, and beverages segments in the US.


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