Earlier this week, Canopy Growth Corp (CGC) announced it had won a license to produce cannabis-infused beverages in Canada. Health Canada — the country’s cannabis industry regulator – granted the license just in time for the rollout of Canada’s highly-anticipated Rec 2.0, when cannabis edibles and derivative will finally become available for retail sale.
“This license represents years of hard work to bring our vision to life. We are deeply proud of the team’s hard work and dedication that has brought us from the tear-down of the original building in early 2019, through to the completion and licensing of our brand new facility,” says Mark Zekulin, CEO of Canopy Growth.
“We also appreciate the support of our partner, Constellation Brands, who lent their expertise from building and equipment design to staffing requirements for this world-class facility. Cannabis beverages have the potential to introduce an entirely different demographic to the cannabis category by presenting them with a familiar product format and an onset time akin to beverage alcohol.”
The company said that its new beverage facility launched production the same day the permit was granted. The first wave of production includes 11 beverage lines, and there are plans to add more through the year. CGC anticipates that these products should be available throughout Canada “within weeks,” depending on the province.
The new 150,000 sq. ft. beverage facility is part of Canopy Growth’s existing facility headquartered in Smiths Falls, Ontario. The headquarters already includes a regional distribution center with automated excise stamp lines, an automated manufacturing facility, a state-of-the-art bean-to-bar chocolate factory, and a first-of-its-kind Visitors Center.
Constellation Brands was instrumental
Beverages will be produced using a proprietary company production process known as Distilled Cannabis. The production of cannabis-laced drinks is one of the primary reasons that alcoholic beverage giant Constellation Brands (STZ) jumped in on the cannabis scene with a large-scale equity investment in Canopy Growth Corp.
After taking a 10% stake CGC in late 2017, Constellation Brands has subsequently increased its investment to the point where it holds approximately 40% of Canopy Growth.
Constellation Brands was conducive to the development of the cannabis beverage line. In a press release, Canopy Growth said they, “appreciate the support of our partner, Constellation Brands, who lent their expertise from building and equipment design to staffing requirements for this world-class facility.”
Canopy Growth Corp is considered a cannabis market leader, partially because of the $4 billion investment that the company received from Constellation Brands Inc. Constellation assisted CGC with design, staffing and other issues in developing the new facility.
CGC’s platform throughout Canada now encompasses more than 10.5 million sq. ft. of existing, fully-licensed production capacity, in addition to a network of licensed retail stores, a line of world-renowned brands, and a strong track record as a global cannabis leader.
With this important operating license, CGC has positioned itself to supply the Canadian market with a variety of new cannabis products, including: beverages, chocolates and vapes.
Canopy Growth Corp. (CGC) was trading at $18.30 per share on Wednesday morning, up $0.19 (+1.05%). Year-to-date, CGC has declined N/A%, versus a 18.41% rise in the benchmark S&P 500 index during the same period.
About the Author: Eric Bowler
Eric Bowler is an accomplished journalist providing in-depth insights for more than two decades. Over the past several years his focus has been on the marijuana industry, with a special interest in cannabis growth stocks. His daily coverage of the industry keeps him on top of the key trends with the goal of helping investors make well-informed decisions.