Canopy Growth began online sales of Quatreau, the CBD-infused sparkling water from the Canadian cannabis producer, in the United States on Tuesday.
Canopy CEO David Klein said in an interview on CNBC that the company will use its relationship with Constellation Brands, the beer, wine and spirits maker with a nearly 40% stake, to manage sales to retailers.
“These are people who are out on the street … think everywhere you see Corona or Modelo. They have the ability to bring our BioSteel brand [to market]”said Klein, who appeared on Mad Money on Tuesday.” You will see how we try to get more and more of this with our Quatreau CBD drinks and ultimately our THC branded drinks when we can get the US “
Biosteel is a manufacturer of sports nutrition products in which Canopy held a majority stake in 2019.
The line of Quatreau drinks is available in four flavors: cucumber with mint, passion fruit with guava, ginger with lime and blueberry with acai. Each bottle of mineral water is sold in 12 packs and contains 20 milligrams of hemp-based CBD grown in the United States
Canopy Growth Quatreau CBD drink
Source: canopy growth
In Canada, which legalized marijuana for adult use in 2018, Quatreau has been the top-selling CBD drink since its launch in 2020, Canopy said in a press release. Canadian demand for cannabis-based products soared amid the coronavirus pandemic.
Canopy didn’t say when it plans to have the product in U.S. stores.
“It illustrates our playbook, in which we want to use the knowledge gathered across North America,” said Klein. “We then use our innovation … to create amazing products, test them in Canada for a testing and learning process, and then with the help of Constellation sales, bring them to the US as soon as possible.” “
The introduction of CBD-based beverages is part of Canopy’s strategy, anticipating statewide legalization that the company expects to take an advantage in the burgeoning U.S. cannabis market in the near future. Cannabinoid, or CBD, is a non-psychoactive compound made from hemp that was legalized under the 2018 Farm Bill.
According to the National Conference of State Legislatures, 14 states, Washington, DC, and three territories legalized cannabis on Tuesday. Virginia lawmakers sent a bill to its governor last week to legalize recreational use. If signed, Virginia would be the first southern state to end the pot ban.
Canopy hopes to repeat its strong Canadian sales in America through Constellation’s beer distribution network. Klein also credited the alcohol giant, whose wide range of brands include Svedka and Cooks Champagne, for helping bring Quatreau to market.
“That’s the power of the Constellation partnership that we have,” he said. “They know how to make drinks, of course, and they’ve helped us every step of the way, which really goes well beyond the accounting support that Constellation has given us over the years.”
When the bars closed and the restaurants reopened with strict rules to curb the spread of Covid-19, Constellation Brands found a way to further increase sales of spirits during the crisis. Depressing on-site sales were made up for in the retail channel, the company said, as consumers ventured into supermarkets and stores for alcoholic beverages.
Canopy’s shares rose 1.5% Tuesday to trade at $ 35.25.